TYSON FOODS INC, 8-K filed on 7/28/2014
Current report filing
Document and Entity Information
3 Months Ended
Dec. 28, 2013
Entity Registrant Name
TYSON FOODS INC 
Entity Central Index Key
0000100493 
Document Type
8-K 
Document Period End Date
Dec. 28, 2013 
Amendment Flag
false 
Consolidated Condensed Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Sales
$ 8,761 
$ 8,366 
Cost of Sales
8,076 
7,827 
Gross Profit
685 
539 
Operating Expenses:
 
 
Selling, general and administrative
273 
235 
Operating Income (Loss)
412 
304 
Other (Income) Expense:
 
 
Interest income
(2)
(1)
Interest expense
28 
37 
Other, net
3 
0 
Total Other (Income) Expense
29 
36 
Income from Continuing Operations before Income Taxes
383 
268 
Income Tax Expense
131 
96 
Income from Continuing Operations
252 
172 
Loss from Discontinued Operation, Net of Tax
0 
(4)
Net Income
252 
168 
Less: Net Income (Loss) Attributable to Noncontrolling Interest
(2)
(5)
Net Income Attributable to Tyson
254 
173 
Amounts attributable to Tyson:
 
 
Net income from continuing operations attributable to Tyson
254 
177 
Net Loss from Discontinued Operation
$ 0 
$ (4)
Weighted Average Shares Outstanding:
 
 
Diluted, Shares
354 
362 
Net Income Per Share from Continuing Operations Attributable to Tyson:
 
 
Diluted (USD per share)
$ 0.72 
$ 0.49 
Net Loss Per Share from Discontinued Operation Attributable to Tyson:
 
 
Diluted (USD per share)
$ 0.00 
$ (0.01)
Net Income Per Share Attributable to Tyson:
 
 
Diluted (USD per share)
$ 0.72 
$ 0.48 
Class A [Member]
 
 
Weighted Average Shares Outstanding:
 
 
Basic, Shares
271 
285 
Net Income Per Share from Continuing Operations Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.76 
$ 0.51 
Net Loss Per Share from Discontinued Operation Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.00 
$ (0.01)
Net Income Per Share Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.76 
$ 0.50 
Dividends Declared Per Share:
 
 
Dividends Declared (USD per share)
$ 0.100 
$ 0.160 
Class B [Member]
 
 
Weighted Average Shares Outstanding:
 
 
Basic, Shares
70 
70 
Net Income Per Share from Continuing Operations Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.68 
$ 0.46 
Net Loss Per Share from Discontinued Operation Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.00 
$ (0.01)
Net Income Per Share Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.68 
$ 0.45 
Dividends Declared Per Share:
 
 
Dividends Declared (USD per share)
$ 0.090 
$ 0.144 
Consolidated Condensed Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Statement of Comprehensive Income [Abstract]
 
 
Net Income
$ 252 
$ 168 
Other Comprehensive Income (Loss), Net of Taxes:
 
 
Derivatives accounted for as cash flow hedges
(2)
(9)
Investments
3 
(2)
Currency translation
(11)
(1)
Postretirement benefits
2 
1 
Total Other Comprehensive Income (Loss), Net of Taxes
(8)
(11)
Comprehensive Income (Loss)
244 
157 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
(2)
(5)
Comprehensive Income Attributable to Tyson
$ 246 
$ 162 
Consolidated Condensed Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Assets
 
 
Cash and cash equivalents
$ 825 
$ 1,145 
Accounts receivable, net
1,497 
1,497 
Inventories
2,778 
2,817 
Other current assets
130 
145 
Total Current Assets
5,230 
5,604 
Net Property, Plant and Equipment
4,072 
4,053 
Goodwill
1,907 
1,902 
Intangible Assets
133 
138 
Other Assets
502 
480 
Total Assets
11,844 
12,177 
Liabilities and Shareholders' Equity
 
 
Current debt
52 
513 
Accounts payable
1,477 
1,359 
Other current liabilities
1,077 
1,138 
Total Current Liabilities
2,606 
3,010 
Long-Term Debt
1,890 
1,895 
Deferred Income Taxes
450 
479 
Other Liabilities
582 
560 
Commitments and Contingencies (Note 15)
   
   
Shareholders' Equity:
 
 
Capital in excess of par value
2,388 
2,292 
Retained earnings
5,219 
4,999 
Accumulated other comprehensive loss
(116)
(108)
Treasury stock, at cost - 52 million shares at December 28, 2013, and 48 million shares at September 28, 2013
(1,245)
(1,021)
Total Tyson Shareholders' Equity
6,285 
6,201 
Noncontrolling Interest
31 
32 
Total Shareholders' Equity
6,316 
6,233 
Total Liabilities and Shareholders' Equity
11,844 
12,177 
Class A [Member]
 
 
Shareholders' Equity:
 
 
Common stock
32 
32 
Convertible Class B [Member]
 
 
Shareholders' Equity:
 
 
Common stock
$ 7 
$ 7 
Condensed Consolidated Balance Sheets (Parentheticals) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Treasury Stock, shares
52 
48 
Class A [Member]
 
 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
900 
900 
Common stock, shares issued
322 
322 
Convertible Class B [Member]
 
 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
900 
900 
Common stock, shares issued
70 
70 
Consolidated Condensed Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Cash Flows From Operating Activities:
 
 
Net Income
$ 252 
$ 168 
Depreciation and amortization
127 
130 
Deferred income taxes
(15)
(9)
Convertible debt discount
(92)
0 
Other, net
22 
23 
Net changes in working capital
67 
(122)
Cash Provided by Operating Activities
361 
190 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(140)
(157)
Purchases of marketable securities
(10)
(7)
Proceeds from sale of marketable securities
9 
8 
Other, net
(3)
4 
Cash Used for Investing Activities
(144)
(152)
Cash Flows From Financing Activities:
 
 
Payments on debt
(379)
(35)
Net proceeds from borrowings
6 
24 
Purchases of Tyson Class A common stock
(159)
(115)
Dividends
(25)
(53)
Stock options exercised
12 
19 
Other, net
5 
2 
Cash Used for Financing Activities
(540)
(158)
Effect of Exchange Rate Changes on Cash
3 
0 
Increase (Decrease) in Cash and Cash Equivalents
(320)
(120)
Cash and Cash Equivalents at Beginning of Year
1,145 
1,071 
Cash and Cash Equivalents at End of Period
$ 825 
$ 951 
Accounting Policies
Accounting Policies
ACCOUNTING POLICIES
BASIS OF PRESENTATION
The consolidated condensed financial statements have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended September 28, 2013. Preparation of consolidated condensed financial statements requires us to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of December 28, 2013, and the results of operations for the three months ended December 28, 2013, and December 29, 2012. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.
CONSOLIDATION
The consolidated condensed financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
VARIABLE INTEREST ENTITIES
We have an investment in a joint venture, Dynamic Fuels LLC (Dynamic Fuels), in which we have a 50 percent ownership interest. Dynamic Fuels qualifies as a variable interest entity for which we consolidate as we are the primary beneficiary. At December 28, 2013, Dynamic Fuels had $160 million of total assets, of which $138 million was net property, plant and equipment, and $113 million of total liabilities, of which $100 million was long-term debt. At September 28, 2013, Dynamic Fuels had $166 million of total assets, of which $142 million was net property, plant and equipment, and $113 million of total liabilities, of which $100 million was long-term debt.
SHARE REPURCHASES
A summary of cumulative share repurchases of our Class A stock is as follows (in millions):
 
 
Three Months Ended
 
 
December 28, 2013
 
December 29, 2012
 
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
Under share repurchase program
 
4.6

 
$
150

 
5.1

 
$
100

To fund certain obligations under equity compensation plans
 
0.3

 
9

 
0.8

 
15

Total share repurchases
 
4.9

 
$
159

 
5.9

 
$
115


As of December 28, 2013, 9.6 million shares remained available for repurchase. On January 30, 2014, our Board of Directors approved an increase of 25 million shares authorized for repurchase under our share repurchase program. The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, markets, industry conditions, liquidity targets, limitations under our debt obligations and regulatory requirements. In addition to the share repurchase program, we purchase shares on the open market to fund certain obligations under our equity compensation plans.
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
In December 2011 and February 2013, the Financial Accounting Standards Board (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 adopted this guidance in the first quarter of fiscal 2014. The adoption did not have a significant impact on our consolidated condensed financial statements.
Acquisitions
Acquisitions
ACQUISITIONS
During fiscal 2013, we acquired two value-added food businesses as part of our strategic expansion initiative, which are included in our Prepared Foods segment. The aggregate purchase price of the acquisitions was $106 million, which included $50 million for property, plant and equipment, $41 million allocated to Intangible Assets and $12 million allocated to Goodwill.
Discontinued Operation
Discontinued Operation
DISCONTINUED OPERATION
After conducting an assessment during fiscal 2013 of our long-term business strategy in China, we determined our Weifang operation (Weifang), which was previously part of our Chicken segment, was no longer core to the execution of our strategy given the capital investment it required to execute our future business plan. Consequently, we conducted an impairment test and recorded a $56 million impairment charge in the second quarter of fiscal 2013. We subsequently sold Weifang which resulted in reporting it as a discontinued operation. The sale was completed in July 2013 and did not result in a significant gain or loss as its carrying value approximated the sales proceeds at the time of sale. Weifang's prior periods results, including the impairment charge, have been reclassified and presented as a discontinued operation in our Consolidated Condensed Statements of Income. The following is a summary of the discontinued operation's results (in millions):
 
 
Three Months Ended
 
 
December 28, 2013
 
December 29, 2012
Sales
 
$
—

 
$
36

 
 


 
 
Pretax loss
 
—

 
(4
)
Income tax expense
 
—

 
—

Loss from discontinued operation, net of tax
 
$
—

 
$
(4
)
Inventories
Inventories
INVENTORIES
Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, contract grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories. Total inventory consists of the following (in millions):
 
December 28, 2013
 
September 28, 2013
Processed products:
 
 
 
Weighted-average method – chicken, prepared foods and international
$
780

 
$
799

First-in, first-out method – beef and pork
622

 
624

Livestock – first-in, first-out method
982

 
1,002

Supplies and other – weighted-average method
394

 
392

Total inventory
$
2,778

 
$
2,817

Property, Plant And Equipment
Property, Plant And Equipment
PROPERTY, PLANT AND EQUIPMENT
The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): 
 
December 28, 2013
 
September 28, 2013
Land
$
99

 
$
100

Buildings and leasehold improvements
2,958

 
2,945

Machinery and equipment
5,535

 
5,504

Land improvements and other
421

 
417

Buildings and equipment under construction
292

 
236

 
9,305

 
9,202

Less accumulated depreciation
5,233

 
5,149

Net property, plant and equipment
$
4,072

 
$
4,053

Other Current Liabilities
Other Current Liabilities
OTHER CURRENT LIABILITIES
Other current liabilities are as follows (in millions):
 
December 28, 2013
 
September 28, 2013
Accrued salaries, wages and benefits
$
293

 
$
419

Self-insurance reserves
268

 
267

Income taxes payable
143

 
111

Other
373

 
341

Total other current liabilities
$
1,077

 
$
1,138

Debt
Debt
DEBT
The major components of debt are as follows (in millions):
 
December 28, 2013
 
September 28, 2013
Revolving credit facility
$
—

 
$
—

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

 
458

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

 
638

7.00% Notes due May 2018
120

 
120

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

 
1,000

7.00% Notes due January 2028
18

 
18

Discount on senior notes
(5
)
 
(6
)
GO Zone tax-exempt bonds due October 2033 (0.05% at 12/28/2013)
100

 
100

Other
71

 
80

Total debt
1,942

 
2,408

Less current debt
52

 
513

Total long-term debt
$
1,890

 
$
1,895


Revolving Credit Facility
We have a $1.0 billion revolving credit facility that supports short-term funding needs and letters of credit. The facility will mature and the commitments thereunder will terminate in August 2017. After reducing the amount available by outstanding letters of credit issued under this facility, the amount available for borrowing at December 28, 2013, was $964 million. At December 28, 2013, we had outstanding letters of credit issued under this facility totaling $36 million, none of which were drawn upon. We had an additional $146 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 which were due October 15, 2013. In connection with the issuance of the 2013 Notes, we entered into separate call option and warrant transactions with respect to our Class A stock to minimize the potential economic dilution upon conversion of the 2013 Notes. The call options contractually expired upon the maturity of the 2013 Notes. The 2013 Notes matured on October 15, 2013 at which time we paid the $458 million principal value with cash on hand, and settled the conversion premium by issuing 11.7 million shares of our Class A stock from available treasury shares. Simultaneous to the settlement of the conversion premium, we received 11.7 million shares of our Class A stock from the call options.
The warrants permit the purchasers to acquire up to approximately 27 million shares of our Class A stock at the current exercise price of $22.13 per share, subject to adjustment. The warrants are exercisable on various dates from January 2014 through April 2014. A 10% increase in our share price above the $22.13 warrant exercise price would result in the issuance of 2.5 million incremental shares. At $33.47, our closing share price on December 28, 2013, the incremental shares we would be required to issue upon exercise of the warrants would have resulted in 9.2 million shares.
2016 Notes
The 2016 Notes carry an interest rate at issuance of 6.60%, with an interest step up feature dependent on their credit rating. On June 7, 2012, Moody's upgraded the credit rating of the 2016 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.
On February 11, 2013, S&P upgraded the credit rating of the 2016 Notes from "BBB-" to "BBB." This upgrade did not impact the interest rate on the 2016 Notes.
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.
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. We issued a letter of credit to effectively guarantee the bond issuance. If any amounts are disbursed related to this guarantee, we would seek recovery of 50% (up to $50 million) from Syntroleum Corporation, our joint venture partner, in accordance with our 2008 warrant agreement with Syntroleum Corporation.
Debt Covenants
Our revolving credit facility contains affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; dispose of or transfer assets; change the nature of our business; engage in certain transactions with affiliates; and enter into sale/leaseback or hedging transactions, in each case, subject to certain qualifications and exceptions. In addition, we are required to maintain minimum interest expense coverage and maximum debt-to-capitalization ratios.
Our 2022 Notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens; engage in certain sale/leaseback transactions; and engage in certain consolidations, mergers and sales of assets.
We were in compliance with all debt covenants at December 28, 2013.
Income Taxes
Income Taxes
INCOME TAXES
The effective tax rate for continuing operations was 34.3% and 35.8% for the first quarter of fiscal 2014 and 2013, respectively. The effective tax rate for the first quarter of fiscal 2014 was impacted by such items as the domestic production deduction, state income taxes and losses in foreign jurisdictions for which no benefit is recognized.
Unrecognized tax benefits were $169 million and $175 million at December 28, 2013, and September 28, 2013, respectively. The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $144 million and $149 million at December 28, 2013, and September 28, 2013, respectively.
We classify interest and penalties on unrecognized tax benefits as income tax expense. At December 28, 2013, and September 28, 2013, before tax benefits, we had $69 million and $63 million, respectively, of accrued interest and penalties on unrecognized tax benefits.
We are subject to income tax examinations for U.S. federal income taxes for fiscal years 2007 through 2012. We are also subject to income tax examinations by major state and foreign jurisdictions for fiscal years 2003 through 2012 and 2002 through 2012, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease by as much as $41 million primarily due to expiration of statutes of limitations in various jurisdictions and settlements with taxing authorities.
Other Income And Charges
Other Income And Charges
OTHER INCOME AND CHARGES
During the first quarter of fiscal 2014, we recorded $2 million of equity earnings in joint ventures, $1 million in net foreign currency exchange gains and $6 million of other than temporary impairment related to an available-for-sale security, which were recorded in the Consolidated Condensed Statements of Income in Other, net.
During the first quarter of fiscal 2013, we recorded $3 million of equity earnings in joint ventures and $3 million in net foreign currency exchange losses, which were recorded in the Consolidated Condensed Statements of Income in Other, net.
Earnings Per Share
Earnings Per Share
EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): 
 
Three Months Ended
 
December 28, 2013
 
December 29, 2012
Numerator:
 
 
 
Income from continuing operations
$
252

 
$
172

Less: Net loss attributable to noncontrolling interests
(2
)
 
(5
)
Net income from continuing operations attributable to Tyson
254

 
177

Less dividends declared:
 
 
 
Class A
28

 
46

Class B
6

 
10

Undistributed earnings
$
220

 
$
121

 
 
 
 
Class A undistributed earnings
$
179

 
$
99

Class B undistributed earnings
41

 
22

Total undistributed earnings
$
220

 
$
121

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Class A weighted average shares
271

 
285

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

 
70

Effect of dilutive securities:
 
 
 
Stock options and restricted stock
5

 
5

Convertible 2013 Notes
—

 
2

Warrants
8

 
—

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
354

 
362

 
 
 
 
Net Income Per Share from Continuing Operations Attributable to Tyson:
 
 
Class A Basic
$
0.76

 
$
0.51

Class B Basic
$
0.68

 
$
0.46

Diluted
$
0.72

 
$
0.49

Net Income Per Share Attributable to Tyson:
 
 
 
Class A Basic
$
0.76

 
$
0.50

Class B Basic
$
0.68

 
$
0.45

Diluted
$
0.72

 
$
0.48


Approximately 5 million and 8 million of our stock-based compensation shares were antidilutive for the three months ended December 28, 2013 and December 29, 2012, respectively. These shares were not included in the dilutive earnings per share calculation.
We have two classes of capital stock, Class A stock and Class B stock. Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of cash dividends paid to holders of Class B stock cannot exceed 90% of the cash dividends paid to holders of Class A stock.
We allocate undistributed earnings based upon a 1 to 0.9 ratio per share to Class A stock and Class B stock, respectively. We allocate undistributed earnings based on this ratio due to historical dividend patterns, voting control of Class B shareholders and contractual limitations of dividends to Class B stock.
Derivative Financial Instruments
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Our business operations give rise to certain market risk exposures mostly due to changes in commodity prices, foreign currency exchange rates and interest rates. We manage a portion of these risks through the use of derivative financial instruments, primarily futures and options, to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Forward contracts on various commodities, including grains, livestock and energy, are primarily entered into to manage the price risk associated with forecasted purchases of these inputs used in our production processes. Foreign exchange forward contracts are entered into to manage the fluctuations in foreign currency exchange rates, primarily as a result of certain receivable and payable balances. We also periodically utilize interest rate swaps to manage interest rate risk associated with our variable-rate borrowings.
Our risk management programs are periodically reviewed by our Board of Directors’ Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using Value-at-Risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit-worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at December 28, 2013.
We recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated Condensed Balance Sheets, with the exception of normal purchases and normal sales expected to result in physical delivery. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged (i.e., cash flow hedge or fair value hedge). 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 firm commitments (i.e., livestock).
Cash flow hedges
Derivative instruments, such as futures and options, are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes. We do not purchase forward and option commodity contracts in excess of our physical consumption requirements and generally do not hedge forecasted transactions beyond 18 months. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchase of those commodities. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant for the three months ended December 28, 2013, and December 29, 2012.
We had the following aggregated notional values of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons): 
 
Metric
 
December 28, 2013
 
September 28, 2013
Commodity:
 
 
 
 
 
Corn
Bushels
 
8

 
5

Soy meal
Tons
 
126,700

 
96,800

Foreign Currency
United States dollar
 
$
29

 
$
60

As of December 28, 2013, the net amounts expected to be reclassified into earnings within the next 12 months are pretax losses of $9 million related to grains. During the three months ended December 28, 2013, and December 29, 2012, we did not reclassify significant pretax gains/losses into earnings as a result of the discontinuance of cash flow hedges due to the probability the original forecasted transaction would not occur by the end of the originally specified time period or within the additional period of time allowed by generally accepted accounting principles.
The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Gain/(Loss)
Recognized in OCI
On Derivatives
 
 
Consolidated Condensed
Statements of Income
Classification
 
Gain/(Loss)
Reclassified from
OCI to Earnings
 
 
Three Months Ended
 
 
 
Three Months Ended
 
December 28,
2013
 
December 29,
2012
 
 
 
December 28,
2013
 
December 29,
2012
Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(2
)
 
$
(13
)
 
Cost of Sales
 
$
—

 
$
4

Foreign exchange contracts
(1
)
 
—

 
Other Income/Expense
 
—

 
(2
)
Total
$
(3
)
 
$
(13
)
 
 
 
$
—

 
$
2

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 firm commitments which are accounted for as a fair value hedge (in millions): 
 
Metric
 
December 28, 2013
 
September 28, 2013
Commodity:
 
 
 
 
 
Live Cattle
Pounds
 
233

 
209

Lean Hogs
Pounds
 
368

 
384

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

 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
 
December 28,
2013
 
December 29,
2012
Gain/(Loss) on forwards
Cost of Sales
 
$
(6
)
 
$
4

Gain/(Loss) on purchase contract
Cost of Sales
 
6

 
(4
)

Ineffectiveness related to our fair value hedges was not significant for the three months ended December 28, 2013, and December 29, 2012.
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 and foreign currency risk. We mark these positions to fair value through earnings at each reporting date. We generally do not enter into undesignated positions beyond 18 months.
The objective of our undesignated grains, livestock and energy commodity positions is to reduce the variability of cash flows associated with the forecasted purchase of certain grains, energy and livestock inputs to our production processes. We also enter into certain forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs at fixed prices. The fixed price sales contracts lock in the proceeds from a future sale and the fixed cattle and hog purchases lock in the cost. However, the cost of the livestock and the related boxed beef and boxed pork market prices at the time of the sale or purchase could vary from this fixed price. As we enter into fixed forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs, we also enter into the appropriate number of livestock options and futures positions to mitigate a portion of this risk.
Changes in market value of the open livestock options and futures positions are marked to market and reported in earnings at each reporting date, even though the economic impact of our fixed prices being above or below the market price is only realized at the time of sale or purchase. These positions generally do not qualify for hedge treatment due to location basis differences between the commodity exchanges and the actual locations when we purchase the commodities.
We have a foreign currency cash flow hedging program to hedge portions of forecasted transactions denominated in foreign currencies, primarily with forward and option contracts, to protect against the reduction in value of forecasted foreign currency cash flows. Our undesignated foreign currency positions generally would qualify for cash flow hedge accounting. However, to reduce earnings volatility, we normally will not elect hedge accounting treatment when the position provides an offset to the underlying related transaction that impacts current earnings.
We had the following aggregate outstanding notional values related to our undesignated positions (in millions, except soy meal tons): 
 
Metric
 
December 28, 2013
 
September 28, 2013
Commodity:
 
 
 
 
 
Corn
Bushels
 
28

 
69

Soy Meal
Tons
 
219,800

 
204,600

Soy Oil
Pounds
 
—

 
11

Live Cattle
Pounds
 
28

 
60

Lean Hogs
Pounds
 
75

 
159

Foreign Currency
United States dollars
 
$
203

 
$
95

The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Consolidated Condensed
Statements of Income
Classification
 
Gain/(Loss)
Recognized in Earnings
 
 
 
 
Three Months Ended
 
 
 
December 28, 2013
 
December 29, 2012
Derivatives not designated as hedging instruments:
 
 
 
 
 
Commodity contracts
Sales
 
$
2

 
$
11

Commodity contracts
Cost of Sales
 
(2
)
 
(7
)
Foreign exchange contracts
Other Income/Expense
 
(1
)
 
1

Total
 
 
$
(1
)
 
$
5

The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions):
 
Fair Value
 
December 28, 2013
 
September 28, 2013
Derivative Assets:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
8

 
$
4

Foreign exchange contracts
—

 
1

Total derivative assets – designated
8

 
5

 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
18

 
25

Foreign exchange contracts
1

 
2

Total derivative assets – not designated
19

 
27

 
 
 
 
Total derivative assets
$
27

 
$
32

Derivative Liabilities:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
29

 
$
29

Foreign exchange contracts
—

 
—

Total derivative liabilities – designated
29

 
29

Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
26

 
72

Foreign exchange contracts
2

 
1

Total derivative liabilities – not designated
28

 
73

 
 
 
 
Total derivative liabilities
$
57

 
$
102

Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. See Note 12: Fair Value Measurements for a reconciliation to amounts reported in the Consolidated Condensed Balance Sheets in Other current assets and Other current liabilities.
Fair Value Measurements
Fair Value Measurements
FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:
Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date.
Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
•
Quoted prices for similar assets or liabilities in active markets;
•
Quoted prices for identical or similar assets in non-active markets;
•
Inputs other than quoted prices that are observable for the asset or liability; and
•
Inputs derived principally from or corroborated by other observable market data.
Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
December 28, 2013
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
26

 
$
—

 
$
(19
)
 
$
7

Foreign Exchange Forward Contracts
—

 
1

 
—

 
—

 
1

Available-for-Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
—

 
—

 
1

Non-current
3

 
26

 
64

 
—

 
93

Deferred Compensation Assets
13

 
208

 
—

 
—

 
221

Total Assets
$
16

 
$
262

 
$
64

 
$
(19
)
 
$
323

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
55

 
$
—

 
$
(53
)
 
$
2

Foreign Exchange Forward Contracts
—

 
2

 
—

 
(1
)
 
1

Total Liabilities
$
—

 
$
57

 
$
—

 
$
(54
)
 
$
3

September 28, 2013
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
29

 
$
—

 
$
(21
)
 
$
8

Foreign Exchange Forward Contracts
—

 
3

 
—

 
(1
)
 
2

Available-for-Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
—

 
—

 
1

Non-current
4

 
24

 
65

 
—

 
93

Deferred Compensation Assets
23

 
191

 
—

 
—

 
214

Total Assets
$
27

 
$
248

 
$
65

 
$
(22
)
 
$
318

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
101

 
$
—

 
$
(101
)
 
$
—

Foreign Exchange Forward Contracts
—

 
1

 
—

 
—

 
1

Total Liabilities
$
—

 
$
102

 
$
—

 
$
(101
)
 
$
1


(a)
Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At December 28, 2013, and September 28, 2013, we had posted with various counterparties $35 million and $79 million, respectively, of cash collateral related to our commodity derivatives and held no cash collateral.The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): 
 
Three Months Ended
 
December 28, 2013
 
December 29, 2012
Balance at beginning of year
$
65

 
$
86

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
7

 
3

Issuances
—

 
—

Settlements
(8
)
 
(4
)
Balance at end of period
$
64

 
$
85

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

 
$
—


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Derivative Assets and Liabilities: Our commodities and foreign exchange forward contracts 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. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges or observable market transactions of spot currency rates and forward currency prices.
Available-for-Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. Short-term investments with maturities of less than 12 months are included in Other current assets in the Consolidated Condensed Balance Sheets and primarily include certificates of deposit and commercial paper. All other marketable debt securities are included in Other Assets in the Consolidated Condensed Balance Sheets and have maturities ranging up to 35 years. We classify our investments in U.S. government, U.S. agency, certificates of deposit and commercial paper debt securities as Level 2 as fair value is generally estimated using discounted cash flow models that are primarily industry-standard models that consider various assumptions, including time value and yield curve as well as other readily available relevant economic measures. We classify certain corporate, asset-backed and other debt securities as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated condensed financial statements.
Additionally, we have 0.8 million shares of Syntroleum Corporation common stock and 0.4 million warrants, which expire in June 2015, to purchase an equivalent amount of Syntroleum Corporation common stock at an average price of $28.70. We record the shares and warrants in Other Assets in the Consolidated Condensed Balance Sheets at fair value based on quoted market prices. We classify the shares as Level 1 as the fair value is based on unadjusted quoted prices available in active markets. We classify the warrants as Level 2 as fair value can be corroborated based on observable market data.
The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):
 
December 28, 2013
 
September 28, 2013
 
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
$
27

 
$
27

 
$
—

 
$
25

 
$
25

 
$
—

Corporate and Asset-Backed
63

 
64

 
1

 
64

 
65

 
1

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock and Warrants (a)
3

 
3

 
—

 
9

 
4

 
(5
)
 
(a)
At December 28, 2013, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of approximately $6 million.
Unrealized holding gains (losses), net of tax, are excluded from earnings and reported in OCI until the security is settled or sold. On a quarterly basis, we evaluate whether losses related to our available-for-sale securities are temporary in nature. Losses on equity securities are recognized in earnings if the decline in value is judged to be other than temporary. If losses related to our debt securities are determined to be other than temporary, the loss would be recognized in earnings if we intend, or more likely than not will be required, to sell the security prior to recovery. For debt securities in which we have the intent and ability to hold until maturity, losses determined to be other than temporary would remain in OCI, other than expected credit losses which are recognized in earnings. We consider many factors in determining whether a loss is temporary, including the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. We recognized $6 million of other than temporary impairment for the three months ended December 28, 2013, which is recorded in the Consolidated Condensed Statements of Income in Other, net. No other than temporary losses were deferred in OCI as of December 28, 2013, and September 28, 2013.
Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated Condensed Balance Sheets. We classify the investments which have observable market prices in active markets in Level 1 as these are generally publicly-traded mutual funds. The remaining deferred compensation assets are classified in Level 2, as fair value can be corroborated based on observable market data. Realized and unrealized gains (losses) on deferred compensation are included in earnings.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the three months ended December 28, 2013 and December 29, 2012.
Other Financial Instruments
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):
 
December 28, 2013
 
September 28, 2013
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total Debt
$
2,058

 
$
1,942

 
$
2,541

 
$
2,408

Other Comprehensive Income
Other Comprehensive Income (Loss)
OTHER COMPREHENSIVE INCOME (LOSS)
The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions):
 
Three Months Ended
 
December 28, 2013
 
December 29, 2012
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
(Gain) loss reclassified to Cost of Sales
$
—

$
—

$
—

 
$
(4
)
$
2

$
(2
)
(Gain) loss reclassified to Other Income/Expense
—

—

—

 
2

(1
)
1

Unrealized gain (loss)
(3
)
1

(2
)
 
(13
)
5

(8
)
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
(Gain) loss reclassified to Other Income/Expense
6

(2
)
4

 
—

—

—

Unrealized gain (loss)
(1
)
—

(1
)
 
(4
)
2

(2
)
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
Translation adjustment
(11
)
—

(11
)
 
(1
)
—

(1
)
 
 
 
 
 
 
 
 
Postretirement benefits
1

1

2

 
1

—

1

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

$
(8
)
 
$
(19
)
$
8

$
(11
)
Segment Reporting
Segment Reporting
SEGMENT REPORTING
We operate in five segments: Chicken, Beef, Pork, Prepared Foods and International. We measure segment profit as operating income (loss).
During the second quarter of fiscal 2014, we began reporting our International operation as a separate segment, which was previously included in our Chicken segment. Our International segment became a separate reportable segment as a result of changes to our internal financial reporting to align with previously announced executive leadership changes. All periods presented have been reclassified to reflect this change. Beef, Pork, Prepared Foods and Other results were not impacted by this change.
Chicken: Chicken includes our domestic operations related to raising and processing live chickens into fresh, frozen and value-added chicken products, as well as sales from allied products. 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 export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary.
Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. 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 export markets. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain.
Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. Products primarily include pepperoni, bacon, sausage, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, breadsticks 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 export markets.
International: International includes our foreign operations primarily related to raising and processing live chickens into fresh, frozen and value-added chicken products in Brazil, China, India and Mexico. Products are marketed in each respective country to food retailers, foodservice distributors, restaurant operators, hotel chains, noncommercial foodservice establishments and live markets, as well as to other international export markets.
The results from Dynamic Fuels are included in Other.
Information on segments and a reconciliation to income from continuing operations before income taxes are as follows (in millions): 
 
Three Months Ended
 
December 28, 2013
 
December 29, 2012
Sales:
 
 
 
Chicken
$
2,656

 
$
2,595

Beef
3,734

 
3,485

Pork
1,424

 
1,363

Prepared Foods
907

 
841

International
327

 
327

Other
—

 
20

Intersegment Sales
(287
)
 
(265
)
Total Sales
$
8,761

 
$
8,366

 
 
 
 
Operating Income (Loss):
 
 
 
Chicken
$
253

 
$
113

Beef
58

 
46

Pork
121

 
125

Prepared Foods
16

 
33

International
(28
)
 
(2
)
Other
(8
)
 
(11
)
Total Operating Income
412

 
304

 
 
 
 
Total Other (Income) Expense
29


36

 
 
 
 
Income from Continuing Operations before Income Taxes
$
383

 
$
268


The Chicken segment had sales of $2 million in the first quarter of fiscal 2014 and 2013, respectively, from transactions with other operating segments of the Company. The Beef segment had sales of $63 million and $43 million in the first quarter of fiscal 2014 and 2013, respectively, from transactions with other operating segments of the Company. The Pork segment had sales of $222 million and $220 million in the first quarter of fiscal 2014 and 2013, respectively, from transactions with other operating segments of the Company. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table.
Commitments And Contingencies
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES
Commitments
We guarantee obligations of certain outside third parties primarily consisting of grower loans, which are substantially collateralized by the underlying assets. Terms of the underlying debt cover periods up to ten years, and the maximum potential amount of future payments as of December 28, 2013, was $54 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 14 years. The maximum potential amount of the residual value guarantees is $49 million, of which $43 million could be recoverable through various recourse provisions and an additional undeterminable recoverable amount based on the fair value of the underlying leased assets. The likelihood of material payments under these guarantees is not considered probable. At December 28, 2013, and September 28, 2013, no material liabilities for guarantees were recorded.
We have cash flow assistance programs in which certain livestock suppliers participate. Under these programs, we pay an amount for livestock equivalent to a standard cost to grow such livestock during periods of low market sales prices. The amounts of such payments that are in excess of the market sales price are recorded as receivables and accrue interest. Participating suppliers are obligated to repay these receivables balances when market sales prices exceed this standard cost, or upon termination of the agreement. Our maximum obligation associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets. The potential maximum obligation as of December 28, 2013, was approximately $310 million. The total receivables under these programs were $42 million and $44 million at December 28, 2013, and September 28, 2013, respectively, and are included, net of allowance for uncollectible amounts, in Accounts Receivable in our Consolidated Condensed Balance Sheets. Even though these programs are limited to the net tangible assets of the participating livestock suppliers, we also manage a portion of our credit risk associated with these programs by obtaining security interests in livestock suppliers’ assets. After analyzing residual credit risks and general market conditions, we have recorded an allowance for these programs’ estimated uncollectible receivables of $14 million and $15 million at December 28, 2013, and September 28, 2013, respectively.
Contingencies
We are involved in various claims and legal proceedings. We routinely assess the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. We record accruals for such matters to the extent that we conclude a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Such accruals are reflected in the Company’s consolidated condensed financial statements. In our opinion, we have made appropriate and adequate accruals for these matters and believe the probability of a material loss beyond the amounts accrued to be remote; however, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the consolidated financial condition or results of operations. Listed below are certain claims made against the Company and/or our subsidiaries for which the potential exposure is considered material to the Company’s consolidated condensed financial statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters.
There are eleven lawsuits against our beef and pork subsidiary, Tyson Fresh Meats Inc., in which certain present and past employees allege that we failed to compensate them 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 Fair Labor Standards Act (FLSA) and various state laws. These lawsuits involve employees from our plants in Garden City, 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); Madison, Nebraska (Acosta, et al. v Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., D. Nebraska, February 29, 2008); Dakota City, Nebraska (Gomez, et al. v. Tyson Foods, Inc., D. Nebraska, January 16, 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); Logansport, Indiana (Carter, et al. v. Tyson Foods, Inc. and Tyson Fresh Meats, Inc., N.D. Indiana, April 29, 2008); Goodlettsville, Tennessee (Abadeer v. Tyson Foods, Inc., and Tyson Fresh Meats, Inc., M.D. Tennessee, February 6, 2009); Emporia, Kansas (Abdiaziz, et al. v. Tyson Foods, Inc., Tyson Fresh Meats, Inc., D. Kansas, September 30, 2011); and 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). 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 involves our Garden City, Kansas beef plant, a jury verdict in favor of the plaintiffs was entered on March 17, 2011. Exclusive of pre- and post-judgment interest, attorneys’ fees and costs, the jury found violations of federal and state laws for pre- and post-shift work activities and awarded damages in the amount of $503,011. Plaintiffs’ counsel filed an application for attorneys’ fees and expenses which we contested. On December 7, 2012, the court granted plaintiffs' counsel's application and awarded a total of $3,609,723. We appealed the jury’s verdict and trial court’s award to the Tenth Circuit Court of Appeals, and oral arguments were held on November 18, 2013.
•
A jury trial was held in the Bouaphakeo case, which involves our Storm Lake, Iowa pork plant, which 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. The plaintiffs' counsel has also filed an application for attorneys' fees and expenses in the amount of $2,692,145. We have appealed the jury's verdict and trial court's award to the Eighth Circuit Court of Appeals.
•
A jury trial was held in the Guyton case, which involves our Columbus Junction, Iowa pork plant, which resulted in a jury verdict in favor of Tyson on April 25, 2012. The plaintiffs have appealed to the Eighth Circuit Court of Appeals.
•
A bench trial was held in the Acosta case, which involves our Madison, Nebraska pork plant, in January 2013. In May 2013 the trial court awarded the plaintiffs $5,733,943 for unpaid overtime wages. Subsequently, the court ordered the class of plaintiffs expanded, and the plaintiffs submitted an updated calculation of $6,258,330 for unpaid overtime wages as reflected by payroll data through May 2013. On January 30, 2014, the trial court entered judgment in favor of the plaintiffs in the amount of $18,774,989. We intend to file a post-trial motion to modify the district court's findings and conclusions prior to any appeal.
•
A jury trial in the Gomez case, which involves our Dakota City, Nebraska beef plant, was held, and the jury found in favor of the plaintiffs on April 3, 2013. On October 2, 2013, the trial court denied the parties’ post-trial motions and entered judgment awarding unpaid overtime wages, liquidated damages, and penalties totaling $4,960,787. We have appealed the jury’s verdict and trial court’s award to the Eighth Circuit Court of Appeals.
•
The trial court in the Edwards case, which involves our Perry and Waterloo, Iowa pork plants, decertified the state law class and granted other pre-trial motions that resulted in judgment in our favor with respect to the plaintiffs’ claims. The plaintiffs have filed a motion to modify this judgment.
•
The parties in the Carter case, which involves our Logansport, Indiana pork plant, agreed to settle all claims for $950,000. The parties filed a joint motion for approval of the settlement, but the plaintiffs subsequently filed a motion to certify a class of plaintiffs while the joint motion for approval of the settlement was pending. On October 30, 2013 we filed a motion with the court to enforce the settlement.
•
The trial court in the Abadeer case, which involves the Goodlettsville, Tennessee plant, granted the plaintiffs’ motion for summary judgment in part, finding that certain pre- and post-shift activities were compensable and our non-payment for those activities was willful and not in good faith. The trial for the remaining issues, including damages, is scheduled to begin April 15, 2014.
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 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 August 1, 2013, the appeals court reversed and remanded the case to the trial court, concluding that the applicable activities at this plant are compensable, subject to certain defenses. We have petitioned the Wisconsin Supreme Court for further review, and the petition was accepted on December 16, 2013.
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.
Condensed Consolidating Financial Statements
Condensed Consolidating Financial Statements
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
TFM Parent, our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. Additionally, TFM Parent has fully and unconditionally guaranteed the 2022 Notes until such date TFM Parent has been released of its guarantee of both (i) Tyson's $1.0 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2022 Notes is permanently released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc. (TFI Parent); TFM Parent; the Non-Guarantors Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor.
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 28, 2013
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
167

 
$
5,048

 
$
3,987

 
$
(441
)
 
$
8,761

Cost of Sales
17

 
4,826

 
3,674

 
(441
)
 
8,076

Gross Profit
150

 
222

 
313

 
—

 
685

Selling, General and Administrative
23

 
55

 
195

 
—

 
273

Operating Income
127

 
167

 
118

 
—

 
412

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
5

 
15

 
6

 
—

 
26

Other, net
6

 
(1
)
 
(2
)
 
—

 
3

Equity in net earnings of subsidiaries
(175
)
 
(6
)
 
—

 
181

 
—

Total Other (Income) Expense
(164
)
 
8

 
4

 
181

 
29

Income from Continuing Operations before Income Taxes
291

 
159

 
114

 
(181
)
 
383

Income Tax Expense
37

 
52

 
42

 
—

 
131

Income from Continuing Operations
254

 
107

 
72

 
(181
)
 
252

Loss from Discontinued Operation, Net of Tax
—

 
—

 
—

 
—

 
—

Net Income
254

 
107

 
72

 
(181
)
 
252

Less: Net Income (Loss) Attributable to Noncontrolling Interest
—

 
—

 
(2
)
 
—

 
(2
)
Net Income Attributable to Tyson
$
254

 
$
107

 
$
74

 
$
(181
)
 
$
254

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
244

 
102

 
63

 
(165
)
 
244

Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest
—

 
—

 
(2
)
 
—

 
(2
)
Comprehensive Income (Loss) Attributable to Tyson
$
244

 
$
102

 
$
65

 
$
(165
)
 
$
246

 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 29, 2012
 
in millions

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

 
$
4,750

 
$
3,868

 
$
(327
)
 
$
8,366

Cost of Sales
16

 
4,538

 
3,600

 
(327
)
 
7,827

Gross Profit
59

 
212

 
268

 
—

 
539

Selling, General and Administrative
20

 
52

 
163

 
—

 
235

Operating Income
39

 
160

 
105

 
—

 
304

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
8

 
16

 
12

 
—

 
36

Other, net
—

 
—

 
—

 
—

 
—

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

 
173

 
—

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

 
173

 
36

Income from Continuing Operations before Income Taxes
180

 
168

 
93

 
(173
)
 
268

Income Tax Expense
7

 
51

 
38

 
—

 
96

Income from Continuing Operations
173

 
117

 
55

 
(173
)
 
172

Loss from Discontinued Operation, Net of Tax
—

 
—

 
(4
)
 
—

 
(4
)
Net Income
173

 
117

 
51

 
(173
)
 
168

Less: Net Income (Loss) Attributable to Noncontrolling Interest
—

 
—

 
(5
)
 
—

 
(5
)
Net Income Attributable to Tyson
173

 
117

 
56

 
(173
)
 
173

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
157

 
121

 
50

 
(171
)
 
157

Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest
—

 
—

 
(5
)
 
—

 
(5
)
Comprehensive Income (Loss) Attributable to Tyson
$
157

 
$
121

 
$
55

 
$
(171
)
 
$
162

 
Condensed Consolidating Balance Sheet as of December 28, 2013
 
in millions

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

 
$
10

 
$
815

 
$
—

 
$
825

Accounts receivable, net
1

 
594

 
902

 
—

 
1,497

Inventories
—

 
1,034

 
1,744

 
—

 
2,778

Other current assets
36

 
49

 
116

 
(71
)
 
130

Total Current Assets
37

 
1,687

 
3,577

 
(71
)
 
5,230

Net Property, Plant and Equipment
31

 
899

 
3,142

 
—

 
4,072

Goodwill
—

 
880

 
1,027

 
—

 
1,907

Intangible Assets
—

 
19

 
114

 
—

 
133

Other Assets
897

 
167

 
254

 
(816
)
 
502

Investment in Subsidiaries
12,141

 
2,035

 
—

 
(14,176
)
 
—

Total Assets
$
13,106

 
$
5,687

 
$
8,114

 
$
(15,063
)
 
$
11,844

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

 
$
—

 
$
78

 
$
(26
)
 
$
52

Accounts payable
30

 
746

 
701

 
—

 
1,477

Other current liabilities
4,858

 
191

 
826

 
(4,798
)
 
1,077

Total Current Liabilities
4,888

 
937

 
1,605

 
(4,824
)
 
2,606

Long-Term Debt
1,771

 
678

 
234

 
(793
)
 
1,890

Deferred Income Taxes
20

 
75

 
355

 
—

 
450

Other Liabilities
142

 
163

 
300

 
(23
)
 
582

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,285

 
3,834

 
5,589

 
(9,423
)
 
6,285

Noncontrolling Interest
—

 
—

 
31

 
—

 
31

Total Shareholders’ Equity
6,285

 
3,834

 
5,620

 
(9,423
)
 
6,316

Total Liabilities and Shareholders’ Equity
$
13,106

 
$
5,687

 
$
8,114

 
$
(15,063
)
 
$
11,844


Condensed Consolidating Balance Sheet as of September 28, 2013
 
in millions

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

 
$
21

 
$
1,124

 
$
—

 
$
1,145

Accounts receivable, net
—

 
571

 
926

 
—

 
1,497

Inventories
—

 
1,039

 
1,778

 
—

 
2,817

Other current assets
351

 
88

 
117

 
(411
)
 
145

Total Current Assets
351

 
1,719

 
3,945

 
(411
)
 
5,604

Net Property, Plant and Equipment
32

 
891

 
3,130

 
—

 
4,053

Goodwill
—

 
881

 
1,021

 
—

 
1,902

Intangible Assets
—

 
21

 
117

 
—

 
138

Other Assets
895

 
162

 
244

 
(821
)
 
480

Investment in Subsidiaries
11,975

 
2,035

 
—

 
(14,010
)
 
—

Total Assets
$
13,253

 
$
5,709

 
$
8,457

 
$
(15,242
)
 
$
12,177

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
457

 
$
132

 
$
251

 
$
(327
)
 
$
513

Accounts payable
27

 
575

 
757

 
—

 
1,359

Other current liabilities
4,625

 
200

 
901

 
(4,588
)
 
1,138

Total Current Liabilities
5,109

 
907

 
1,909

 
(4,915
)
 
3,010

Long-Term Debt
1,770

 
679

 
241

 
(795
)
 
1,895

Deferred Income Taxes
24

 
93

 
362

 
—

 
479

Other Liabilities
149

 
155

 
282

 
(26
)
 
560

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,201

 
3,875

 
5,631

 
(9,506
)
 
6,201

Noncontrolling Interest
—

 
—

 
32

 
—

 
32

Total Shareholders’ Equity
6,201

 
3,875

 
5,663

 
(9,506
)
 
6,233

Total Liabilities and Shareholders’ Equity
$
13,253

 
$
5,709

 
$
8,457

 
$
(15,242
)
 
$
12,177


Condensed Consolidating Statement of Cash Flows for the three months ended December 28, 2013
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
(4
)
 
$
284

 
$
81

 
$
—

 
$
361

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(1
)
 
(35
)
 
(104
)
 
—

 
(140
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
(1
)
 
—

 
(1
)
Other, net
—

 
1

 
(4
)
 
—

 
(3
)
Cash Provided by (Used for) Investing Activities
(1
)
 
(34
)
 
(109
)
 
—

 
(144
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(367
)
 
—

 
(6
)
 
—

 
(373
)
Purchases of Tyson Class A common stock
(159
)
 
—

 
—

 
—

 
(159
)
Dividends
(25
)
 
—

 
—

 
—

 
(25
)
Stock options exercised
12

 
—

 
—

 
—

 
12

Other, net
5

 
—

 
—

 
—

 
5

Net change in intercompany balances
539

 
(261
)
 
(278
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
5

 
(261
)
 
(284
)
 
—

 
(540
)
Effect of Exchange Rate Change on Cash
—

 
—

 
3

 
—

 
3

Increase (Decrease) in Cash and Cash Equivalents
—

 
(11
)
 
(309
)
 
—

 
(320
)
Cash and Cash Equivalents at Beginning of Year
—

 
21

 
1,124

 
—

 
1,145

Cash and Cash Equivalents at End of Period
$
—

 
$
10

 
$
815

 
$
—

 
$
825

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

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

 
$
234

 
$
(65
)
 
$
—

 
$
190

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

 
(157
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
1

 
—

 
1

Other, net
—

 
—

 
4

 
—

 
4

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

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

 
—

 
(11
)
 
—

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

 
—

 
—

 
(115
)
Dividends
(53
)
 
—

 
—

 
—

 
(53
)
Stock options exercised
19

 
—

 
—

 
—

 
19

Other, net
3

 
—

 
(1
)
 
—

 
2

Net change in intercompany balances
126

 
(199
)
 
73

 
—

 
—

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

 
—

 
(158
)
Effect of Exchange Rate Change on Cash
—

 
—

 
—

 
—

 
—

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

 
(130
)
 
—

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

 
9

 
1,061

 
—

 
1,071

Cash and Cash Equivalents at End of Period
$
—

 
$
20

 
$
931

 
$
—

 
$
951

Accounting Policies (Policy)
Basis Of Presentation 
BASIS OF PRESENTATION
The consolidated condensed financial statements have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended September 28, 2013. Preparation of consolidated condensed financial statements requires us to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of December 28, 2013, and the results of operations for the three months ended December 28, 2013, and December 29, 2012. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.
Consolidation 
CONSOLIDATION
The consolidated condensed financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Inventories (Policy)
Inventory, Policy [Policy Text Block]
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.
Accounting Policies Common Stock Repurchases (Tables)
Schedule of Common Stock Repurchases
A summary of cumulative share repurchases of our Class A stock is as follows (in millions):
 
 
Three Months Ended
 
 
December 28, 2013
 
December 29, 2012
 
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
Under share repurchase program
 
4.6

 
$
150

 
5.1

 
$
100

To fund certain obligations under equity compensation plans
 
0.3

 
9

 
0.8

 
15

Total share repurchases
 
4.9

 
$
159

 
5.9

 
$
115

Discontinued Operation (Tables)
Summary of Discontinued Operation's Results
The following is a summary of the discontinued operation's results (in millions):
 
 
Three Months Ended
 
 
December 28, 2013
 
December 29, 2012
Sales
 
$
—

 
$
36

 
 


 
 
Pretax loss
 
—

 
(4
)
Income tax expense
 
—

 
—

Loss from discontinued operation, net of tax
 
$
—

 
$
(4
)
Inventories (Tables)
Schedule of Inventory
Total inventory consists of the following (in millions):
 
December 28, 2013
 
September 28, 2013
Processed products:
 
 
 
Weighted-average method – chicken, prepared foods and international
$
780

 
$
799

First-in, first-out method – beef and pork
622

 
624

Livestock – first-in, first-out method
982

 
1,002

Supplies and other – weighted-average method
394

 
392

Total inventory
$
2,778

 
$
2,817

Property, Plant And Equipment (Tables)
Property, Plant And Equipment And Accumulated Depreciation
The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): 
 
December 28, 2013
 
September 28, 2013
Land
$
99

 
$
100

Buildings and leasehold improvements
2,958

 
2,945

Machinery and equipment
5,535

 
5,504

Land improvements and other
421

 
417

Buildings and equipment under construction
292

 
236

 
9,305

 
9,202

Less accumulated depreciation
5,233

 
5,149

Net property, plant and equipment
$
4,072

 
$
4,053

Other Current Liabilities (Tables)
Schedule Of Other Current Liabilities
Other current liabilities are as follows (in millions):
 
December 28, 2013
 
September 28, 2013
Accrued salaries, wages and benefits
$
293

 
$
419

Self-insurance reserves
268

 
267

Income taxes payable
143

 
111

Other
373

 
341

Total other current liabilities
$
1,077

 
$
1,138

Debt (Tables)
Schedule of Major Components Of Debt
The major components of debt are as follows (in millions):
 
December 28, 2013
 
September 28, 2013
Revolving credit facility
$
—

 
$
—

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

 
458

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

 
638

7.00% Notes due May 2018
120

 
120

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

 
1,000

7.00% Notes due January 2028
18

 
18

Discount on senior notes
(5
)
 
(6
)
GO Zone tax-exempt bonds due October 2033 (0.05% at 12/28/2013)
100

 
100

Other
71

 
80

Total debt
1,942

 
2,408

Less current debt
52

 
513

Total long-term debt
$
1,890

 
$
1,895

Earnings Per Share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): 
 
Three Months Ended
 
December 28, 2013
 
December 29, 2012
Numerator:
 
 
 
Income from continuing operations
$
252

 
$
172

Less: Net loss attributable to noncontrolling interests
(2
)
 
(5
)
Net income from continuing operations attributable to Tyson
254

 
177

Less dividends declared:
 
 
 
Class A
28

 
46

Class B
6

 
10

Undistributed earnings
$
220

 
$
121

 
 
 
 
Class A undistributed earnings
$
179

 
$
99

Class B undistributed earnings
41

 
22

Total undistributed earnings
$
220

 
$
121

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Class A weighted average shares
271

 
285

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

 
70

Effect of dilutive securities:
 
 
 
Stock options and restricted stock
5

 
5

Convertible 2013 Notes
—

 
2

Warrants
8

 
—

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
354

 
362

 
 
 
 
Net Income Per Share from Continuing Operations Attributable to Tyson:
 
 
Class A Basic
$
0.76

 
$
0.51

Class B Basic
$
0.68

 
$
0.46

Diluted
$
0.72

 
$
0.49

Net Income Per Share Attributable to Tyson:
 
 
 
Class A Basic
$
0.76

 
$
0.50

Class B Basic
$
0.68

 
$
0.45

Diluted
$
0.72

 
$
0.48

Derivative Financial Instruments (Tables)
Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value 
The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions):
 
Fair Value
 
December 28, 2013
 
September 28, 2013
Derivative Assets:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
8

 
$
4

Foreign exchange contracts
—

 
1

Total derivative assets – designated
8

 
5

 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
18

 
25

Foreign exchange contracts
1

 
2

Total derivative assets – not designated
19

 
27

 
 
 
 
Total derivative assets
$
27

 
$
32

Derivative Liabilities:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
29

 
$
29

Foreign exchange contracts
—

 
—

Total derivative liabilities – designated
29

 
29

Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
26

 
72

Foreign exchange contracts
2

 
1

Total derivative liabilities – not designated
28

 
73

 
 
 
 
Total derivative liabilities
$
57

 
$
102

Schedule Of Notional Amount Of Derivatives 
We had the following aggregated notional values of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons): 
 
Metric
 
December 28, 2013
 
September 28, 2013
Commodity:
 
 
 
 
 
Corn
Bushels
 
8

 
5

Soy meal
Tons
 
126,700

 
96,800

Foreign Currency
United States dollar
 
$
29

 
$
60

Derivative Instruments, Gain (Loss) [Table Text Block] 
The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Gain/(Loss)
Recognized in OCI
On Derivatives
 
 
Consolidated Condensed
Statements of Income
Classification
 
Gain/(Loss)
Reclassified from
OCI to Earnings
 
 
Three Months Ended
 
 
 
Three Months Ended
 
December 28,
2013
 
December 29,
2012
 
 
 
December 28,
2013
 
December 29,
2012
Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(2
)
 
$
(13
)
 
Cost of Sales
 
$
—

 
$
4

Foreign exchange contracts
(1
)
 
—

 
Other Income/Expense
 
—

 
(2
)
Total
$
(3
)
 
$
(13
)
 
 
 
$
—

 
$
2

Schedule Of Notional Amount Of Derivatives 
We had the following aggregated notional values of outstanding forward contracts entered into to hedge firm commitments which are accounted for as a fair value hedge (in millions): 
 
Metric
 
December 28, 2013
 
September 28, 2013
Commodity:
 
 
 
 
 
Live Cattle
Pounds
 
233

 
209

Lean Hogs
Pounds
 
368

 
384

Derivative Instruments, Gain (Loss) [Table Text Block] 
 
 
 
 
 
in millions

 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
 
December 28,
2013
 
December 29,
2012
Gain/(Loss) on forwards
Cost of Sales
 
$
(6
)
 
$
4

Gain/(Loss) on purchase contract
Cost of Sales
 
6

 
(4
)
Schedule Of Notional Amount Of Derivatives 
We had the following aggregate outstanding notional values related to our undesignated positions (in millions, except soy meal tons): 
 
Metric
 
December 28, 2013
 
September 28, 2013
Commodity:
 
 
 
 
 
Corn
Bushels
 
28

 
69

Soy Meal
Tons
 
219,800

 
204,600

Soy Oil
Pounds
 
—

 
11

Live Cattle
Pounds
 
28

 
60

Lean Hogs
Pounds
 
75

 
159

Foreign Currency
United States dollars
 
$
203

 
$
95

Derivative Instruments, Gain (Loss) [Table Text Block] 
The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Consolidated Condensed
Statements of Income
Classification
 
Gain/(Loss)
Recognized in Earnings
 
 
 
 
Three Months Ended
 
 
 
December 28, 2013
 
December 29, 2012
Derivatives not designated as hedging instruments:
 
 
 
 
 
Commodity contracts
Sales
 
$
2

 
$
11

Commodity contracts
Cost of Sales
 
(2
)
 
(7
)
Foreign exchange contracts
Other Income/Expense
 
(1
)
 
1

Total
 
 
$
(1
)
 
$
5

Fair Value Measurements (Tables)
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis 
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
December 28, 2013
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
26

 
$
—

 
$
(19
)
 
$
7

Foreign Exchange Forward Contracts
—

 
1

 
—

 
—

 
1

Available-for-Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
—

 
—

 
1

Non-current
3

 
26

 
64

 
—

 
93

Deferred Compensation Assets
13

 
208

 
—

 
—

 
221

Total Assets
$
16

 
$
262

 
$
64

 
$
(19
)
 
$
323

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
55

 
$
—

 
$
(53
)
 
$
2

Foreign Exchange Forward Contracts
—

 
2

 
—

 
(1
)
 
1

Total Liabilities
$
—

 
$
57

 
$
—

 
$
(54
)
 
$
3

September 28, 2013
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
29

 
$
—

 
$
(21
)
 
$
8

Foreign Exchange Forward Contracts
—

 
3

 
—

 
(1
)
 
2

Available-for-Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
—

 
—

 
1

Non-current
4

 
24

 
65

 
—

 
93

Deferred Compensation Assets
23

 
191

 
—

 
—

 
214

Total Assets
$
27

 
$
248

 
$
65

 
$
(22
)
 
$
318

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
101

 
$
—

 
$
(101
)
 
$
—

Foreign Exchange Forward Contracts
—

 
1

 
—

 
—

 
1

Total Liabilities
$
—

 
$
102

 
$
—

 
$
(101
)
 
$
1


(a)
Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At December 28, 2013, and September 28, 2013, we had posted with various counterparties $35 million and $79 million, respectively, of cash collateral related to our commodity derivatives and held no cash collateral.
Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation 
The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): 
 
Three Months Ended
 
December 28, 2013
 
December 29, 2012
Balance at beginning of year
$
65

 
$
86

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
7

 
3

Issuances
—

 
—

Settlements
(8
)
 
(4
)
Balance at end of period
$
64

 
$
85

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

 
$
—

Schedule Of Available For Sale Securities 
The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):
 
December 28, 2013
 
September 28, 2013
 
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
$
27

 
$
27

 
$
—

 
$
25

 
$
25

 
$
—

Corporate and Asset-Backed
63

 
64

 
1

 
64

 
65

 
1

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock and Warrants (a)
3

 
3

 
—

 
9

 
4

 
(5
)
 
(a)
At December 28, 2013, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of approximately $6 million.
Schedule Of Fair Value And Carrying Value Of Debt 
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):
 
December 28, 2013
 
September 28, 2013
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total Debt
$
2,058

 
$
1,942

 
$
2,541

 
$
2,408



Other Comprehensive Income (Tables)
Components Of Other Comprehensive Income (Loss)
The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions):
 
Three Months Ended
 
December 28, 2013
 
December 29, 2012
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
(Gain) loss reclassified to Cost of Sales
$
—

$
—

$
—

 
$
(4
)
$
2

$
(2
)
(Gain) loss reclassified to Other Income/Expense
—

—

—

 
2

(1
)
1

Unrealized gain (loss)
(3
)
1

(2
)
 
(13
)
5

(8
)
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
(Gain) loss reclassified to Other Income/Expense
6

(2
)
4

 
—

—

—

Unrealized gain (loss)
(1
)
—

(1
)
 
(4
)
2

(2
)
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
Translation adjustment
(11
)
—

(11
)
 
(1
)
—

(1
)
 
 
 
 
 
 
 
 
Postretirement benefits
1

1

2

 
1

—

1

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

$
(8
)
 
$
(19
)
$
8

$
(11
)
Segment Reporting (Tables)
Segment Reporting Information, By Segment
Information on segments and a reconciliation to income from continuing operations before income taxes are as follows (in millions): 
 
Three Months Ended
 
December 28, 2013
 
December 29, 2012
Sales:
 
 
 
Chicken
$
2,656

 
$
2,595

Beef
3,734

 
3,485

Pork
1,424

 
1,363

Prepared Foods
907

 
841

International
327

 
327

Other
—

 
20

Intersegment Sales
(287
)
 
(265
)
Total Sales
$
8,761

 
$
8,366

 
 
 
 
Operating Income (Loss):
 
 
 
Chicken
$
253

 
$
113

Beef
58

 
46

Pork
121

 
125

Prepared Foods
16

 
33

International
(28
)
 
(2
)
Other
(8
)
 
(11
)
Total Operating Income
412

 
304

 
 
 
 
Total Other (Income) Expense
29


36

 
 
 
 
Income from Continuing Operations before Income Taxes
$
383

 
$
268

Condensed Consolidating Financial Statements (Tables)
Condensed Consolidating Statement Of Income and Comprehensive Income 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 28, 2013
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
167

 
$
5,048

 
$
3,987

 
$
(441
)
 
$
8,761

Cost of Sales
17

 
4,826

 
3,674

 
(441
)
 
8,076

Gross Profit
150

 
222

 
313

 
—

 
685

Selling, General and Administrative
23

 
55

 
195

 
—

 
273

Operating Income
127

 
167

 
118

 
—

 
412

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
5

 
15

 
6

 
—

 
26

Other, net
6

 
(1
)
 
(2
)
 
—

 
3

Equity in net earnings of subsidiaries
(175
)
 
(6
)
 
—

 
181

 
—

Total Other (Income) Expense
(164
)
 
8

 
4

 
181

 
29

Income from Continuing Operations before Income Taxes
291

 
159

 
114

 
(181
)
 
383

Income Tax Expense
37

 
52

 
42

 
—

 
131

Income from Continuing Operations
254

 
107

 
72

 
(181
)
 
252

Loss from Discontinued Operation, Net of Tax
—

 
—

 
—

 
—

 
—

Net Income
254

 
107

 
72

 
(181
)
 
252

Less: Net Income (Loss) Attributable to Noncontrolling Interest
—

 
—

 
(2
)
 
—

 
(2
)
Net Income Attributable to Tyson
$
254

 
$
107

 
$
74

 
$
(181
)
 
$
254

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
244

 
102

 
63

 
(165
)
 
244

Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest
—

 
—

 
(2
)
 
—

 
(2
)
Comprehensive Income (Loss) Attributable to Tyson
$
244

 
$
102

 
$
65

 
$
(165
)
 
$
246

 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 29, 2012
 
in millions

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

 
$
4,750

 
$
3,868

 
$
(327
)
 
$
8,366

Cost of Sales
16

 
4,538

 
3,600

 
(327
)
 
7,827

Gross Profit
59

 
212

 
268

 
—

 
539

Selling, General and Administrative
20

 
52

 
163

 
—

 
235

Operating Income
39

 
160

 
105

 
—

 
304

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
8

 
16

 
12

 
—

 
36

Other, net
—

 
—

 
—

 
—

 
—

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

 
173

 
—

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

 
173

 
36

Income from Continuing Operations before Income Taxes
180

 
168

 
93

 
(173
)
 
268

Income Tax Expense
7

 
51

 
38

 
—

 
96

Income from Continuing Operations
173

 
117

 
55

 
(173
)
 
172

Loss from Discontinued Operation, Net of Tax
—

 
—

 
(4
)
 
—

 
(4
)
Net Income
173

 
117

 
51

 
(173
)
 
168

Less: Net Income (Loss) Attributable to Noncontrolling Interest
—

 
—

 
(5
)
 
—

 
(5
)
Net Income Attributable to Tyson
173

 
117

 
56

 
(173
)
 
173

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
157

 
121

 
50

 
(171
)
 
157

Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest
—

 
—

 
(5
)
 
—

 
(5
)
Comprehensive Income (Loss) Attributable to Tyson
$
157

 
$
121

 
$
55

 
$
(171
)
 
$
162

 
Condensed Consolidating Balance Sheet as of December 28, 2013
 
in millions

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

 
$
10

 
$
815

 
$
—

 
$
825

Accounts receivable, net
1

 
594

 
902

 
—

 
1,497

Inventories
—

 
1,034

 
1,744

 
—

 
2,778

Other current assets
36

 
49

 
116

 
(71
)
 
130

Total Current Assets
37

 
1,687

 
3,577

 
(71
)
 
5,230

Net Property, Plant and Equipment
31

 
899

 
3,142

 
—

 
4,072

Goodwill
—

 
880

 
1,027

 
—

 
1,907

Intangible Assets
—

 
19

 
114

 
—

 
133

Other Assets
897

 
167

 
254

 
(816
)
 
502

Investment in Subsidiaries
12,141

 
2,035

 
—

 
(14,176
)
 
—

Total Assets
$
13,106

 
$
5,687

 
$
8,114

 
$
(15,063
)
 
$
11,844

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

 
$
—

 
$
78

 
$
(26
)
 
$
52

Accounts payable
30

 
746

 
701

 
—

 
1,477

Other current liabilities
4,858

 
191

 
826

 
(4,798
)
 
1,077

Total Current Liabilities
4,888

 
937

 
1,605

 
(4,824
)
 
2,606

Long-Term Debt
1,771

 
678

 
234

 
(793
)
 
1,890

Deferred Income Taxes
20

 
75

 
355

 
—

 
450

Other Liabilities
142

 
163

 
300

 
(23
)
 
582

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,285

 
3,834

 
5,589

 
(9,423
)
 
6,285

Noncontrolling Interest
—

 
—

 
31

 
—

 
31

Total Shareholders’ Equity
6,285

 
3,834

 
5,620

 
(9,423
)
 
6,316

Total Liabilities and Shareholders’ Equity
$
13,106

 
$
5,687

 
$
8,114

 
$
(15,063
)
 
$
11,844


Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet as of December 28, 2013
 
in millions

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

 
$
10

 
$
815

 
$
—

 
$
825

Accounts receivable, net
1

 
594

 
902

 
—

 
1,497

Inventories
—

 
1,034

 
1,744

 
—

 
2,778

Other current assets
36

 
49

 
116

 
(71
)
 
130

Total Current Assets
37

 
1,687

 
3,577

 
(71
)
 
5,230

Net Property, Plant and Equipment
31

 
899

 
3,142

 
—

 
4,072

Goodwill
—

 
880

 
1,027

 
—

 
1,907

Intangible Assets
—

 
19

 
114

 
—

 
133

Other Assets
897

 
167

 
254

 
(816
)
 
502

Investment in Subsidiaries
12,141

 
2,035

 
—

 
(14,176
)
 
—

Total Assets
$
13,106

 
$
5,687

 
$
8,114

 
$
(15,063
)
 
$
11,844

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

 
$
—

 
$
78

 
$
(26
)
 
$
52

Accounts payable
30

 
746

 
701

 
—

 
1,477

Other current liabilities
4,858

 
191

 
826

 
(4,798
)
 
1,077

Total Current Liabilities
4,888

 
937

 
1,605

 
(4,824
)
 
2,606

Long-Term Debt
1,771

 
678

 
234

 
(793
)
 
1,890

Deferred Income Taxes
20

 
75

 
355

 
—

 
450

Other Liabilities
142

 
163

 
300

 
(23
)
 
582

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,285

 
3,834

 
5,589

 
(9,423
)
 
6,285

Noncontrolling Interest
—

 
—

 
31

 
—

 
31

Total Shareholders’ Equity
6,285

 
3,834

 
5,620

 
(9,423
)
 
6,316

Total Liabilities and Shareholders’ Equity
$
13,106

 
$
5,687

 
$
8,114

 
$
(15,063
)
 
$
11,844


Condensed Consolidating Balance Sheet as of September 28, 2013
 
in millions

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

 
$
21

 
$
1,124

 
$
—

 
$
1,145

Accounts receivable, net
—

 
571

 
926

 
—

 
1,497

Inventories
—

 
1,039

 
1,778

 
—

 
2,817

Other current assets
351

 
88

 
117

 
(411
)
 
145

Total Current Assets
351

 
1,719

 
3,945

 
(411
)
 
5,604

Net Property, Plant and Equipment
32

 
891

 
3,130

 
—

 
4,053

Goodwill
—

 
881

 
1,021

 
—

 
1,902

Intangible Assets
—

 
21

 
117

 
—

 
138

Other Assets
895

 
162

 
244

 
(821
)
 
480

Investment in Subsidiaries
11,975

 
2,035

 
—

 
(14,010
)
 
—

Total Assets
$
13,253

 
$
5,709

 
$
8,457

 
$
(15,242
)
 
$
12,177

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
457

 
$
132

 
$
251

 
$
(327
)
 
$
513

Accounts payable
27

 
575

 
757

 
—

 
1,359

Other current liabilities
4,625

 
200

 
901

 
(4,588
)
 
1,138

Total Current Liabilities
5,109

 
907

 
1,909

 
(4,915
)
 
3,010

Long-Term Debt
1,770

 
679

 
241

 
(795
)
 
1,895

Deferred Income Taxes
24

 
93

 
362

 
—

 
479

Other Liabilities
149

 
155

 
282

 
(26
)
 
560

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,201

 
3,875

 
5,631

 
(9,506
)
 
6,201

Noncontrolling Interest
—

 
—

 
32

 
—

 
32

Total Shareholders’ Equity
6,201

 
3,875

 
5,663

 
(9,506
)
 
6,233

Total Liabilities and Shareholders’ Equity
$
13,253

 
$
5,709

 
$
8,457

 
$
(15,242
)
 
$
12,177

Condensed Consolidating Statement Of Cash Flows 
Condensed Consolidating Statement of Cash Flows for the three months ended December 28, 2013
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
(4
)
 
$
284

 
$
81

 
$
—

 
$
361

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(1
)
 
(35
)
 
(104
)
 
—

 
(140
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
(1
)
 
—

 
(1
)
Other, net
—

 
1

 
(4
)
 
—

 
(3
)
Cash Provided by (Used for) Investing Activities
(1
)
 
(34
)
 
(109
)
 
—

 
(144
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(367
)
 
—

 
(6
)
 
—

 
(373
)
Purchases of Tyson Class A common stock
(159
)
 
—

 
—

 
—

 
(159
)
Dividends
(25
)
 
—

 
—

 
—

 
(25
)
Stock options exercised
12

 
—

 
—

 
—

 
12

Other, net
5

 
—

 
—

 
—

 
5

Net change in intercompany balances
539

 
(261
)
 
(278
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
5

 
(261
)
 
(284
)
 
—

 
(540
)
Effect of Exchange Rate Change on Cash
—

 
—

 
3

 
—

 
3

Increase (Decrease) in Cash and Cash Equivalents
—

 
(11
)
 
(309
)
 
—

 
(320
)
Cash and Cash Equivalents at Beginning of Year
—

 
21

 
1,124

 
—

 
1,145

Cash and Cash Equivalents at End of Period
$
—

 
$
10

 
$
815

 
$
—

 
$
825

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

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

 
$
234

 
$
(65
)
 
$
—

 
$
190

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

 
(157
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
1

 
—

 
1

Other, net
—

 
—

 
4

 
—

 
4

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

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

 
—

 
(11
)
 
—

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

 
—

 
—

 
(115
)
Dividends
(53
)
 
—

 
—

 
—

 
(53
)
Stock options exercised
19

 
—

 
—

 
—

 
19

Other, net
3

 
—

 
(1
)
 
—

 
2

Net change in intercompany balances
126

 
(199
)
 
73

 
—

 
—

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

 
—

 
(158
)
Effect of Exchange Rate Change on Cash
—

 
—

 
—

 
—

 
—

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

 
(130
)
 
—

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

 
9

 
1,061

 
—

 
1,071

Cash and Cash Equivalents at End of Period
$
—

 
$
20

 
$
931

 
$
—

 
$
951

Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended
Dec. 28, 2013
Variable Interest Entity, Primary Beneficiary [Member]
Sep. 28, 2013
Variable Interest Entity, Primary Beneficiary [Member]
Jan. 31, 2014
Share Repurchase Program [Member]
Class A [Member]
Accounting Policies [Line Items]
 
 
 
Stock Repurchase Program, Increase (Decrease) in Authorized Shares
 
 
25 
Ownership interest percentage, investment in Dynamic Fuels, LLC joint venture
50.00% 
 
 
Variable interest entity total assets
$ 160 
$ 166 
 
Variable interest entity net property, plant and equipment
138 
142 
 
Variable interest entity total liabilities
113 
113 
 
Variable interest entity long-term debt
$ 100 
$ 100 
 
Accounting Policies Share Repurchases (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Dec. 28, 2013
Class A [Member]
Dec. 29, 2012
Class A [Member]
Dec. 28, 2013
Share Repurchase Program [Member]
Class A [Member]
Dec. 29, 2012
Share Repurchase Program [Member]
Class A [Member]
Dec. 28, 2013
Open market repurchases to fund certain obligations under equity compensation plans [Member]
Class A [Member]
Dec. 29, 2012
Open market repurchases to fund certain obligations under equity compensation plans [Member]
Class A [Member]
Jan. 31, 2014
Share Repurchase Program [Member]
Class A [Member]
Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
Payments for Repurchase of Common Stock
$ 159 
$ 115 
$ 159 
$ 115 
$ 150 
$ 100 
$ 9 
$ 15 
 
Treasury Stock, Shares, Acquired
 
 
4.9 
5.9 
4.6 
5.1 
0.3 
0.8 
 
Remaining shares available to repurchase
 
 
 
 
9.6 
 
 
 
 
Stock Repurchase Program, Increase (Decrease) in Authorized Shares
 
 
 
 
 
 
 
 
25 
Acquisitions (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 28, 2013
Sep. 28, 2013
Sep. 28, 2013
Series of Individually Immaterial Business Acquisitions [Member]
business
Business Acquisition [Line Items]
 
 
 
Number of Businesses Acquired
 
 
2 
Acquisitions, net of cash acquired
 
 
$ 106 
Purchase price of property, plant and equipment
 
 
50 
Purchase price of intangible assets
 
 
41 
Goodwill
$ 1,907 
$ 1,902 
$ 12 
Discontinued Operation (Summary of Discontinued Operation's Results) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Loss from discontinued operation, net of tax
$ 0 
$ (4)
Weifang Operation [Member]
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Sales
0 
36 
Pretax loss
0 
(4)
Income tax expense
0 
0 
Loss from discontinued operation, net of tax
$ 0 
$ (4)
Discontinued Operation (Narrative) (Details) (Weifang Operation [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 30, 2013
Weifang Operation [Member]
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Asset Impairment Charges
$ 56 
Inventories (Schedule Of Inventory) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Inventory Disclosure [Abstract]
 
 
Processed Products - Weighted-average method – chicken, prepared foods and international
$ 780 
$ 799 
Processed Products - First-in, first-out method – beef and pork
622 
624 
Livestock – first-in, first-out method
982 
1,002 
Supplies and other – weighted-average method
394 
392 
Total inventories
$ 2,778 
$ 2,817 
Property, Plant And Equipment (Details) (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 9,305 
$ 9,202 
Less accumulated depreciation
5,233 
5,149 
Net property, plant and equipment
4,072 
4,053 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
99 
100 
Buildings And Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
2,958 
2,945 
Machinery And Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
5,535 
5,504 
Land Improvements And Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
421 
417 
Buildings And Equipment Under Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 292 
$ 236 
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Other Liabilities, Current [Abstract]
 
 
Accrued salaries, wages and benefits
$ 293 
$ 419 
Self-insurance reserves
268 
267 
Income taxes payable
143 
111 
Other
373 
341 
Total other current liabilities
$ 1,077 
$ 1,138 
Debt (Major Components Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Dec. 28, 2013
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 (2013 Notes) [Member]
Sep. 28, 2013
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]
Dec. 28, 2013
6.60% Senior Notes Due April 2016 (2016 Notes) [Member]
Sep. 28, 2013
6.60% Senior Notes Due April 2016 (2016 Notes) [Member]
Dec. 28, 2013
7.00% Notes Due May 2018 [Member]
Sep. 28, 2013
7.00% Notes Due May 2018 [Member]
Dec. 28, 2013
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Sep. 28, 2013
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Jun. 30, 2012
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Dec. 28, 2013
7.00% Notes Due January 2028 [Member]
Sep. 28, 2013
7.00% Notes Due January 2028 [Member]
Dec. 28, 2013
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Sep. 28, 2013
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes
 
 
0 
458 
 
638 
638 
120 
120 
1,000 
1,000 
 
18 
18 
 
 
Discount on senior notes
(5)
(6)
 
 
 
 
 
 
 
 
 
(5)
 
 
 
 
GO Zone tax-exempt bonds due October 2033
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 
100 
Other
71 
80 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
1,942 
2,408 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less current debt
52 
513 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
$ 1,890 
$ 1,895 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stated interest rate
 
 
 
 
3.25% 
 
 
7.00% 
 
4.50% 
 
4.50% 
7.00% 
 
 
 
Interest rate at period end
 
 
 
 
 
6.60% 
 
 
 
 
 
 
 
 
0.05% 
 
Debt (Narrative) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
0 Months Ended 0 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended
Dec. 28, 2013
Sep. 28, 2013
Oct. 15, 2013
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. 15, 2013
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]
Class A [Member]
Dec. 28, 2013
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]
Class A [Member]
Sep. 30, 2008
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]
Class A [Member]
Sep. 27, 2008
2016 Notes [Member]
Jun. 30, 2012
2016 Notes [Member]
Prior To Credit Rating Adjustment [Member]
Jun. 30, 2012
2016 Notes [Member]
After Credit Rating Adjustment [Member]
Jun. 30, 2012
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Dec. 28, 2013
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Oct. 31, 2008
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Dec. 28, 2013
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Dec. 28, 2013
Standby Letters of Credit [Member]
Dec. 28, 2013
Bilateral Letters Of Credit [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available under credit facility
$ 1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available for borrowing under credit facility
964,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit issued amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36,000,000 
146,000,000 
Debt instrument, face amount
 
 
 
458,000,000 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
 
Interest rate
 
 
 
3.25% 
 
 
 
6.60% 
 
 
4.50% 
4.50% 
 
 
 
 
Repayments of Long-term Debt
 
 
458,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Conversion of Convertible Securities
 
 
 
 
11.7 
 
 
 
 
 
 
 
 
 
 
 
Stock Redeemed or Called During Period, Shares
 
 
 
 
11.7 
 
 
 
 
 
 
 
 
 
 
 
Shares able to be purchased through warrants
 
 
 
 
 
 
27 
 
 
 
 
 
 
 
 
 
Exercise price of warrants, per share
 
 
 
 
 
 
22.13 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
$ 22.13 
 
 
 
 
 
 
 
 
 
 
Additional stock issuance if increase in share price of ten percent
 
 
 
 
 
2.5 
 
 
 
 
 
 
 
 
 
 
Share Price
 
 
 
 
 
$ 33.47 
 
 
 
 
 
 
 
 
 
 
Additional Stock Issuance Required if Warrants are Exercised at Price Equal to Period End Closing Share Price
 
 
 
 
 
9.2 
 
 
 
 
 
 
 
 
 
 
Interest rate at period end
 
 
 
 
 
 
 
 
6.85% 
6.60% 
 
 
 
0.05% 
 
 
Debt Instrument, Unamortized Discount
5,000,000 
6,000,000 
 
 
 
 
 
 
 
 
5,000,000 
 
 
 
 
 
Issue price percent of face value
 
 
 
 
 
 
 
 
 
 
99.458% 
 
 
 
 
 
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 
 
 
 
Syntroleum Corporation Responsibility of Guarantee
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
Syntroleum Corporation Maximum Guarantee Responsibility
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 50,000,000 
 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Sep. 28, 2013
Income Tax Disclosure [Abstract]
 
 
 
Effective tax rate for continuing operations
34.30% 
35.80% 
 
Unrecognized tax benefits
$ 169 
 
$ 175 
Unrecognized tax benefits that would impact effective tax rate
144 
 
149 
Unrecognized tax benefits, income tax penalties and interest accrued
69 
 
63 
Unrecognized tax benefits, reductions that could result from tax audit resolutions
$ 41 
 
 
Other Income And Charges (Details) (Other Income/Expense [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Other Income/Expense [Member]
 
 
Components of Other Income and Expenses [Line Items]
 
 
Recognized currency translation adjustment gain
$ 2 
$ 3 
Foreign currency exchange gains, net
1 
3 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
$ 6 
 
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Income from continuing operations
$ 252 
$ 172 
Less: Net loss attributable to noncontrolling interest
(2)
(5)
Net income from continuing operations attributable to Tyson
254 
177 
Undistributed earnings
220 
121 
Stock options and restricted stock
5 
5 
Convertible 2013 Notes
0 
2 
Warrants
8 
0 
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions
354 
362 
Net Income Per Share from Continuing Operations Attributable to Tyson - Diluted
$ 0.72 
$ 0.49 
Net Income Per Share Attributable to Tyson - Diluted
$ 0.72 
$ 0.48 
Class A [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Less Dividends Declared:
28 
46 
Undistributed earnings
179 
99 
Weighted average number of shares outstanding - Basic
271 
285 
Net Income Per Share from Continuing Operations Attributable to Tyson - Basic
$ 0.76 
$ 0.51 
Net Income Per Share Attributable to Tyson - Basic
$ 0.76 
$ 0.50 
Class B [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Less Dividends Declared:
6 
10 
Undistributed earnings
$ 41 
$ 22 
Weighted average number of shares outstanding - Basic
70 
70 
Net Income Per Share from Continuing Operations Attributable to Tyson - Basic
$ 0.68 
$ 0.46 
Net Income Per Share Attributable to Tyson - Basic
$ 0.68 
$ 0.45 
Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Number Of Classes Of Common Stock
2 
 
Percentage amount of per share cash dividends paid to holders of Class B stock that cannot exceed paid to holders of Class A stock
90.00% 
 
Class A [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Undistributed earnings (losses), ratio used to calculate allocation to class of stock
1 
 
Class B [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Undistributed earnings (losses), ratio used to calculate allocation to class of stock
0.9 
 
Stock Compensation Plan [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share, shares
5 
8 
Derivative Financial Instruments (Pretax Impact Of Cash Flow Hedge Derivative Instruments On The Consolidated Statements Of Income) (Details) (Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ (3)
$ (13)
Gain/(Loss) Reclassified from OCI to Earnings
0 
2 
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
(2)
(13)
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Reclassified from OCI to Earnings
0 
4 
Foreign Currency [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
(1)
0 
Foreign Currency [Member] |
Other Income/Expense [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Reclassified from OCI to Earnings
$ 0 
$ (2)
Derivative Financial Instruments (Pretax Impact Of Fair Value Hedge Derivative Instruments On The Consolidated Statements of Income) (Details) (Fair Value Hedging [Member], Cost of Sales [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Forward Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) on forwards
$ (6)
$ 4 
Purchase Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) on forwards
$ 6 
$ (4)
Derivative Financial Instruments (Pretax Impact Of Undesignated Derivative Instruments On The Consolidated Statements Of Income) (Details) (Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
$ (1)
$ 5 
Commodity Contracts [Member] |
Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
2 
11 
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
(2)
(7)
Foreign Currency [Member] |
Other Income/Expense [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
$ (1)
$ 1 
Derivative Financial Instruments (Fair Value Of All Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Derivative [Line Items]
 
 
Derivative Assets
$ 27 
$ 32 
Derivative Liabilities
57 
102 
Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
8 
5 
Derivative Liabilities
29 
29 
Designated as Hedging Instrument [Member] |
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
8 
4 
Derivative Liabilities
29 
29 
Designated as Hedging Instrument [Member] |
Foreign Currency [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0 
1 
Derivative Liabilities
0 
0 
Not Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
19 
27 
Derivative Liabilities
28 
73 
Not Designated as Hedging Instrument [Member] |
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
18 
25 
Derivative Liabilities
26 
72 
Not Designated as Hedging Instrument [Member] |
Foreign Currency [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
1 
2 
Derivative Liabilities
$ 2 
$ 1 
Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
M
Derivative [Line Items]
 
Maximum length of time hedged forecasted transactions, months
18 months 
Maximum length Of time hedged undesignated positions, months
18 
Grain [Member]
 
Derivative [Line Items]
 
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months
$ (9)
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative assets and liabilities posted cash collateral
$ 35 
$ 79 
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign Exchange Forward Contracts, Assets
1 
2 
Available-for-Sale Securities, Current
1 
1 
Available for Sale Securities, Noncurrent
93 
93 
Deferred Compensation Assets
221 
214 
Total Assets
323 
318 
Foreign Exchange Forward Contracts, Liabilities
1 
1 
Total Liabilities
3 
1 
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 
Available-for-Sale Securities, Current
0 
0 
Available for Sale Securities, Noncurrent
3 
4 
Deferred Compensation Assets
13 
23 
Total Assets
16 
27 
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 
3 
Available-for-Sale Securities, Current
1 
1 
Available for Sale Securities, Noncurrent
26 
24 
Deferred Compensation Assets
208 
191 
Total Assets
262 
248 
Foreign Exchange Forward Contracts, Liabilities
2 
1 
Total Liabilities
57 
102 
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 
Available-for-Sale Securities, Current
0 
0 
Available for Sale Securities, Noncurrent
64 
65 
Deferred Compensation Assets
0 
0 
Total Assets
64 
65 
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
0 
(1)
Available-for-Sale Securities, Current
0 
0 
Available for Sale Securities, Noncurrent
0 
0 
Deferred Compensation Assets
0 
0 
Total Assets
(19)
(22)
Foreign Exchange Forward Contracts, Liabilities
(1)
0 
Total Liabilities
(54)
(101)
Commodity [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
7 
8 
Derivative Financial Instruments, Liabilities
2 
0 
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
26 
29 
Derivative Financial Instruments, Liabilities
55 
101 
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
(19)
(21)
Derivative Financial Instruments, Liabilities
$ (53)
$ (101)
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Balance at beginning of year
$ 65 
$ 86 
Total realized gains (losses) included in earnings
0 
0 
Total unrealized gains (losses) included in other comprehensive income (loss)
0 
0 
Purchases
7 
3 
Issuances
0 
0 
Settlements
(8)
(4)
Balance at end of period
64 
85 
Total gains (losses) for the nine-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Sep. 28, 2013
U.S. Treasury and Agency [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Unrealized Gain/(Loss)
$ 0 
$ 0 
Amortized Cost Basis
27 
25 
Fair Value
27 
25 
Corporate And Asset-Backed [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Unrealized Gain/(Loss)
1 
1 
Amortized Cost Basis
63 
64 
Fair Value
64 
65 
Common Stock and Warrants [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Unrealized Gain/(Loss)
0 
(5)
Amortized Cost Basis
3 
9 
Fair Value
3 
4 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
$ 6 
 
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Number of shares of Syntroleum Corporation acquired
0.8 
 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Number of warrants to purchase equivalent amount of shares in Syntroleum Corporation
0.4 
 
Exercise price of warrants, per share
28.70 
 
Maximum [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short Term Investment Maturity Period
12 months 
 
Available For Sale Securities Debt Maturity Period
35 years 
 
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Fair Value Disclosures [Abstract]
 
 
Total Debt, Fair Value
$ 2,058 
$ 2,541 
Total Debt, Carrying Value
$ 1,942 
$ 2,408 
Fair Value Measurements Fair Value Measurement (Narrative) (Details) (Common Stock and Warrants [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Common Stock and Warrants [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
$ 6 
Other Comprehensive Income (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Other Comprehensive Income Loss [Line Items]
 
 
Total Other Comprehensive Income (Loss), Before Tax
$ (8)
$ (19)
Total Other Comprehensive Income (Loss), Tax
0 
8 
Total Other Comprehensive Income (Loss), Net of Taxes
(8)
(11)
Derivatives accounted for as cash flow hedges [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
(3)
(13)
Other Comprehensive Income (Loss), Before Reclassifications, Tax
1 
5 
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
(2)
(8)
Derivatives accounted for as cash flow hedges [Member] |
Cost of Sales [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Reclassification from Accumulated Other Comprehensive Income, Before Tax
0 
(4)
Reclassification from Accumulated Other Comprehensive Income, Tax
0 
2 
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
(2)
Derivatives accounted for as cash flow hedges [Member] |
Other Income/Expense [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Reclassification from Accumulated Other Comprehensive Income, Before Tax
0 
2 
Reclassification from Accumulated Other Comprehensive Income, Tax
0 
(1)
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
1 
Investments [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
(1)
(4)
Other Comprehensive Income (Loss), Before Reclassifications, Tax
0 
2 
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
(1)
(2)
Investments [Member] |
Other Income/Expense [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Reclassification from Accumulated Other Comprehensive Income, Before Tax
6 
0 
Reclassification from Accumulated Other Comprehensive Income, Tax
(2)
0 
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
4 
0 
Currency translation [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
(11)
(1)
Other Comprehensive Income (Loss), Before Reclassifications, Tax
0 
0 
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
(11)
(1)
Postretirement benefits [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Total Other Comprehensive Income (Loss), Before Tax
1 
1 
Total Other Comprehensive Income (Loss), Tax
1 
0 
Total Other Comprehensive Income (Loss), Net of Taxes
$ 2 
$ 1 
Segment Reporting (Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Segment Reporting Information [Line Items]
 
 
Sales
$ 8,761 
$ 8,366 
Operating Income (Loss)
412 
304 
Total Other (Income) Expense
29 
36 
Income from Continuing Operations before Income Taxes
383 
268 
Operating Segments [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
2,656 
2,595 
Operating Income (Loss)
253 
113 
Operating Segments [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
3,734 
3,485 
Operating Income (Loss)
58 
46 
Operating Segments [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
1,424 
1,363 
Operating Income (Loss)
121 
125 
Operating Segments [Member] |
Prepared Foods [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
907 
841 
Operating Income (Loss)
16 
33 
Operating Segments [Member] |
International [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
327 
327 
Operating Income (Loss)
(28)
(2)
Intersegment Elimination [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(287)
(265)
Intersegment Elimination [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
2 
2 
Intersegment Elimination [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
63 
43 
Intersegment Elimination [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
222 
220 
Other [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
0 
20 
Operating Income (Loss)
$ (8)
$ (11)
Segment Reporting Segment Reporting (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Segments
Dec. 29, 2012
Segment Reporting Information [Line Items]
 
 
Sales
$ 8,761 
$ 8,366 
Number of Operating Segments
5 
 
Operating Income (Loss)
412 
304 
Operating Segments [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
2,656 
2,595 
Operating Income (Loss)
253 
113 
Operating Segments [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
3,734 
3,485 
Operating Income (Loss)
58 
46 
Operating Segments [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
1,424 
1,363 
Operating Income (Loss)
121 
125 
Intersegment Elimination [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(287)
(265)
Intersegment Elimination [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
2 
2 
Intersegment Elimination [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
63 
43 
Intersegment Elimination [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
$ 222 
$ 220 
Commitments And Contingencies Commitments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Sep. 28, 2013
Dec. 28, 2013
Guarantee of Indebtedness of Others [Member]
Dec. 28, 2013
Residual Value Guarantees [Member]
Guarantor Obligations [Line Items]
 
 
 
 
Guarantor Obligations, Maximum Exposure, Period (in years)
 
 
10 years 
 
Maximum potential amount
 
 
$ 54 
$ 49 
Guarantor Obligations, Maximum Exposure, Remaining Lease Period (in years)
 
 
 
14 years 
Amount recoverable through various recourse provisions
 
 
 
43 
Potential maximum obligation under cash flow assistance programs
310 
 
 
 
Total receivables under cash flow assistance programs
42 
44 
 
 
Uncollectible receivables estimated under cash flow assistance programs
$ 14 
$ 15 
 
 
Commitments And Contingencies Contingencies (Details) (USD $)
0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended 0 Months Ended
Dec. 28, 2013
Tyson Fresh Meats Inc [Member]
Claims
Dec. 7, 2012
Garcia Case [Member]
Mar. 17, 2011
Garcia Case [Member]
Sep. 26, 2011
Bouaphakeo Case [Member]
Oct. 31, 2012
Bouaphakeo Case [Member]
May 31, 2013
Acosta Case [Member]
Oct. 26, 2013
Gomez Case [Member]
Dec. 28, 2013
Carter Case [Member]
Oct. 31, 2010
Tyson Prepared Foods Plant [Member]
Plantiffs
Oct. 20, 2010
Tyson Prepared Foods Plant [Member]
Claims
Jun. 30, 2005
Attorney General and the Secretary of the Environment of the State Of Oklahoma [Member]
acre
Jun. 30, 2005
Attorney General and the Secretary of the Environment of the State Of Oklahoma [Member]
Poultry Integrators [Member]
Integrators
Jun. 30, 2005
Attorney General and the Secretary of the Environment of the State Of Oklahoma [Member]
Subsidiaries [Member]
Subsidiary
Jan. 30, 2014
Acosta Case [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of cases filed
11 
 
 
 
 
 
 
 
 
1 
 
 
 
 
Loss Contingency, Damages Awarded, Value
 
 
$ 503,011 
$ 5,784,758 
 
$ 5,733,943 
$ 4,960,787 
 
 
 
 
 
 
$ 18,774,989 
Granted application for attorneys fees and expenses
 
3,609,723 
 
 
 
 
 
 
 
 
 
 
 
 
Filed application for attorneys' fees and expenses
 
 
 
 
2,692,145 
 
 
 
 
 
 
 
 
 
Loss Contingency, Settlement Amount
 
 
 
 
 
 
 
950,000 
 
 
 
 
 
 
Loss Contingency, Number of Plaintiffs
 
 
 
 
 
 
 
 
6 
 
 
 
 
 
Loss Contingency, Number of Defendants
 
 
 
 
 
 
 
 
 
 
 
6 
3 
 
Area of land encompassed, acres
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
Loss contingency, damages sought
 
 
 
 
 
$ 6,258,330 
 
 
 
 
$ 800,000,000 
 
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income and Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
$ 8,761 
$ 8,366 
Cost of Sales
8,076 
7,827 
Gross Profit
685 
539 
Selling, general and administrative
273 
235 
Operating Income (Loss)
412 
304 
Other (Income) Expense:
 
 
Interest expense, net
26 
36 
Other, net
3 
0 
Equity in net earnings of subsidiaries
0 
0 
Total Other (Income) Expense
29 
36 
Income from Continuing Operations before Income Taxes
383 
268 
Income Tax Expense
131 
96 
Income from Continuing Operations
252 
172 
Loss from Discontinued Operation, Net of Tax
0 
(4)
Net Income
252 
168 
Less: Net Income (Loss) Attributable to Noncontrolling Interest
(2)
(5)
Net Income Attributable to Tyson
254 
173 
Comprehensive Income (Loss)
244 
157 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
(2)
(5)
Comprehensive Income Attributable to Tyson
246 
162 
TFI Parent [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
167 
75 
Cost of Sales
17 
16 
Gross Profit
150 
59 
Selling, general and administrative
23 
20 
Operating Income (Loss)
127 
39 
Other (Income) Expense:
 
 
Interest expense, net
5 
8 
Other, net
6 
0 
Equity in net earnings of subsidiaries
(175)
(149)
Total Other (Income) Expense
(164)
(141)
Income from Continuing Operations before Income Taxes
291 
180 
Income Tax Expense
37 
7 
Income from Continuing Operations
254 
173 
Loss from Discontinued Operation, Net of Tax
0 
0 
Net Income
254 
173 
Less: Net Income (Loss) Attributable to Noncontrolling Interest
0 
0 
Net Income Attributable to Tyson
254 
173 
Comprehensive Income (Loss)
244 
157 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
244 
157 
TFM Parent, Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
5,048 
4,750 
Cost of Sales
4,826 
4,538 
Gross Profit
222 
212 
Selling, general and administrative
55 
52 
Operating Income (Loss)
167 
160 
Other (Income) Expense:
 
 
Interest expense, net
15 
16 
Other, net
(1)
0 
Equity in net earnings of subsidiaries
(6)
(24)
Total Other (Income) Expense
8 
(8)
Income from Continuing Operations before Income Taxes
159 
168 
Income Tax Expense
52 
51 
Income from Continuing Operations
107 
117 
Loss from Discontinued Operation, Net of Tax
0 
0 
Net Income
107 
117 
Less: Net Income (Loss) Attributable to Noncontrolling Interest
0 
0 
Net Income Attributable to Tyson
107 
117 
Comprehensive Income (Loss)
102 
121 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
102 
121 
Non-Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
3,987 
3,868 
Cost of Sales
3,674 
3,600 
Gross Profit
313 
268 
Selling, general and administrative
195 
163 
Operating Income (Loss)
118 
105 
Other (Income) Expense:
 
 
Interest expense, net
6 
12 
Other, net
(2)
0 
Equity in net earnings of subsidiaries
0 
0 
Total Other (Income) Expense
4 
12 
Income from Continuing Operations before Income Taxes
114 
93 
Income Tax Expense
42 
38 
Income from Continuing Operations
72 
55 
Loss from Discontinued Operation, Net of Tax
0 
(4)
Net Income
72 
51 
Less: Net Income (Loss) Attributable to Noncontrolling Interest
(2)
(5)
Net Income Attributable to Tyson
74 
56 
Comprehensive Income (Loss)
63 
50 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
(2)
(5)
Comprehensive Income Attributable to Tyson
65 
55 
Eliminations [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
(441)
(327)
Cost of Sales
(441)
(327)
Gross Profit
0 
0 
Selling, general and administrative
0 
0 
Operating Income (Loss)
0 
0 
Other (Income) Expense:
 
 
Interest expense, net
0 
0 
Other, net
0 
0 
Equity in net earnings of subsidiaries
181 
173 
Total Other (Income) Expense
181 
173 
Income from Continuing Operations before Income Taxes
(181)
(173)
Income Tax Expense
0 
0 
Income from Continuing Operations
(181)
(173)
Loss from Discontinued Operation, Net of Tax
0 
0 
Net Income
(181)
(173)
Less: Net Income (Loss) Attributable to Noncontrolling Interest
0 
0 
Net Income Attributable to Tyson
(181)
(173)
Comprehensive Income (Loss)
(165)
(171)
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
$ (165)
$ (171)
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 28, 2013
Sep. 28, 2013
Dec. 29, 2012
Sep. 29, 2012
Assets
 
 
 
 
Cash and cash equivalents
$ 825 
$ 1,145 
$ 951 
$ 1,071 
Accounts receivable, net
1,497 
1,497 
 
 
Inventories
2,778 
2,817 
 
 
Other current assets
130 
145 
 
 
Total Current Assets
5,230 
5,604 
 
 
Net Property, Plant and Equipment
4,072 
4,053 
 
 
Goodwill
1,907 
1,902 
 
 
Intangible Assets
133 
138 
 
 
Other Assets
502 
480 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
11,844 
12,177 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
52 
513 
 
 
Accounts payable
1,477 
1,359 
 
 
Other current liabilities
1,077 
1,138 
 
 
Total Current Liabilities
2,606 
3,010 
 
 
Long-Term Debt
1,890 
1,895 
 
 
Deferred Income Taxes
450 
479 
 
 
Other Liabilities
582 
560 
 
 
Total Tyson Shareholders' Equity
6,285 
6,201 
 
 
Noncontrolling Interest
31 
32 
 
 
Total Shareholders' Equity
6,316 
6,233 
 
 
Total Liabilities and Shareholders' Equity
11,844 
12,177 
 
 
TFI Parent [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
1 
Accounts receivable, net
1 
0 
 
 
Inventories
0 
0 
 
 
Other current assets
36 
351 
 
 
Total Current Assets
37 
351 
 
 
Net Property, Plant and Equipment
31 
32 
 
 
Goodwill
0 
0 
 
 
Intangible Assets
0 
0 
 
 
Other Assets
897 
895 
 
 
Investment in Subsidiaries
12,141 
11,975 
 
 
Total Assets
13,106 
13,253 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
0 
457 
 
 
Accounts payable
30 
27 
 
 
Other current liabilities
4,858 
4,625 
 
 
Total Current Liabilities
4,888 
5,109 
 
 
Long-Term Debt
1,771 
1,770 
 
 
Deferred Income Taxes
20 
24 
 
 
Other Liabilities
142 
149 
 
 
Total Tyson Shareholders' Equity
6,285 
6,201 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
6,285 
6,201 
 
 
Total Liabilities and Shareholders' Equity
13,106 
13,253 
 
 
TFM Parent, Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
10 
21 
20 
9 
Accounts receivable, net
594 
571 
 
 
Inventories
1,034 
1,039 
 
 
Other current assets
49 
88 
 
 
Total Current Assets
1,687 
1,719 
 
 
Net Property, Plant and Equipment
899 
891 
 
 
Goodwill
880 
881 
 
 
Intangible Assets
19 
21 
 
 
Other Assets
167 
162 
 
 
Investment in Subsidiaries
2,035 
2,035 
 
 
Total Assets
5,687 
5,709 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
0 
132 
 
 
Accounts payable
746 
575 
 
 
Other current liabilities
191 
200 
 
 
Total Current Liabilities
937 
907 
 
 
Long-Term Debt
678 
679 
 
 
Deferred Income Taxes
75 
93 
 
 
Other Liabilities
163 
155 
 
 
Total Tyson Shareholders' Equity
3,834 
3,875 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
3,834 
3,875 
 
 
Total Liabilities and Shareholders' Equity
5,687 
5,709 
 
 
Non-Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
815 
1,124 
931 
1,061 
Accounts receivable, net
902 
926 
 
 
Inventories
1,744 
1,778 
 
 
Other current assets
116 
117 
 
 
Total Current Assets
3,577 
3,945 
 
 
Net Property, Plant and Equipment
3,142 
3,130 
 
 
Goodwill
1,027 
1,021 
 
 
Intangible Assets
114 
117 
 
 
Other Assets
254 
244 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
8,114 
8,457 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
78 
251 
 
 
Accounts payable
701 
757 
 
 
Other current liabilities
826 
901 
 
 
Total Current Liabilities
1,605 
1,909 
 
 
Long-Term Debt
234 
241 
 
 
Deferred Income Taxes
355 
362 
 
 
Other Liabilities
300 
282 
 
 
Total Tyson Shareholders' Equity
5,589 
5,631 
 
 
Noncontrolling Interest
31 
32 
 
 
Total Shareholders' Equity
5,620 
5,663 
 
 
Total Liabilities and Shareholders' Equity
8,114 
8,457 
 
 
Eliminations [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
0 
 
 
Inventories
0 
0 
 
 
Other current assets
(71)
(411)
 
 
Total Current Assets
(71)
(411)
 
 
Net Property, Plant and Equipment
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangible Assets
0 
0 
 
 
Other Assets
(816)
(821)
 
 
Investment in Subsidiaries
(14,176)
(14,010)
 
 
Total Assets
(15,063)
(15,242)
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
(26)
(327)
 
 
Accounts payable
0 
0 
 
 
Other current liabilities
(4,798)
(4,588)
 
 
Total Current Liabilities
(4,824)
(4,915)
 
 
Long-Term Debt
(793)
(795)
 
 
Deferred Income Taxes
0 
0 
 
 
Other Liabilities
(23)
(26)
 
 
Total Tyson Shareholders' Equity
(9,423)
(9,506)
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
(9,423)
(9,506)
 
 
Total Liabilities and Shareholders' Equity
$ (15,063)
$ (15,242)
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Dec. 29, 2012
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
$ 361 
$ 190 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(140)
(157)
(Purchases of)/ Proceeds from marketable securities, net
(1)
1 
Other, net
(3)
4 
Cash Used for Investing Activities
(144)
(152)
Cash Flows From Financing Activities:
 
 
Net change in debt
(373)
(11)
Purchases of Tyson Class A common stock
(159)
(115)
Dividends
(25)
(53)
Stock options exercised
12 
19 
Other, net
5 
2 
Net change in intercompany balances
0 
0 
Cash Used for Financing Activities
(540)
(158)
Effect of Exchange Rate Changes on Cash
3 
0 
Increase (Decrease) in Cash and Cash Equivalents
(320)
(120)
Cash and Cash Equivalents at Beginning of Year
1,145 
1,071 
Cash and Cash Equivalents at End of Period
825 
951 
TFI Parent [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
(4)
21 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(1)
(2)
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Other, net
0 
0 
Cash Used for Investing Activities
(1)
(2)
Cash Flows From Financing Activities:
 
 
Net change in debt
(367)
0 
Purchases of Tyson Class A common stock
(159)
(115)
Dividends
(25)
(53)
Stock options exercised
12 
19 
Other, net
5 
3 
Net change in intercompany balances
539 
126 
Cash Used for Financing Activities
5 
(20)
Effect of Exchange Rate Changes on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
(1)
Cash and Cash Equivalents at Beginning of Year
0 
1 
Cash and Cash Equivalents at End of Period
0 
0 
TFM Parent, Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
284 
234 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(35)
(24)
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Other, net
1 
0 
Cash Used for Investing Activities
(34)
(24)
Cash Flows From Financing Activities:
 
 
Net change in debt
0 
0 
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Stock options exercised
0 
0 
Other, net
0 
0 
Net change in intercompany balances
(261)
(199)
Cash Used for Financing Activities
(261)
(199)
Effect of Exchange Rate Changes on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
(11)
11 
Cash and Cash Equivalents at Beginning of Year
21 
9 
Cash and Cash Equivalents at End of Period
10 
20 
Non-Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
81 
(65)
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(104)
(131)
(Purchases of)/ Proceeds from marketable securities, net
(1)
1 
Other, net
(4)
4 
Cash Used for Investing Activities
(109)
(126)
Cash Flows From Financing Activities:
 
 
Net change in debt
(6)
(11)
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Stock options exercised
0 
0 
Other, net
0 
(1)
Net change in intercompany balances
(278)
73 
Cash Used for Financing Activities
(284)
61 
Effect of Exchange Rate Changes on Cash
3 
0 
Increase (Decrease) in Cash and Cash Equivalents
(309)
(130)
Cash and Cash Equivalents at Beginning of Year
1,124 
1,061 
Cash and Cash Equivalents at End of Period
815 
931 
Eliminations [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
0 
0 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
0 
0 
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Other, net
0 
0 
Cash Used for Investing Activities
0 
0 
Cash Flows From Financing Activities:
 
 
Net change in debt
0 
0 
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Stock options exercised
0 
0 
Other, net
0 
0 
Net change in intercompany balances
0 
0 
Cash Used for Financing Activities
0 
0 
Effect of Exchange Rate Changes on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
0 
Cash and Cash Equivalents at Beginning of Year
0 
0 
Cash and Cash Equivalents at End of Period
$ 0 
$ 0 
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements (Narrative) (Details) (USD $)
In Billions, unless otherwise specified
Dec. 28, 2013
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
 
Amount available under credit facility
$ 1.0