TYSON FOODS INC, 10-K filed on 11/23/2015
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Oct. 3, 2015
Oct. 31, 2015
Class A [Member]
Mar. 28, 2015
Class A [Member]
Oct. 31, 2015
Class B [Member]
Mar. 28, 2015
Class B [Member]
Entity Registrant Name
TYSON FOODS INC 
 
 
 
 
Entity Central Index Key
0000100493 
 
 
 
 
Current Fiscal Year End Date
--10-03 
 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
 
Document Type
10-K 
 
 
 
 
Document Period End Date
Oct. 03, 2015 
 
 
 
 
Document Fiscal Year Focus
2015 
 
 
 
 
Document Fiscal Period Focus
FY 
 
 
 
 
Amendment Flag
false 
 
 
 
 
Entity Common Stock, Shares Outstanding
 
295,644,459 
 
70,010,805 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
 
 
Entity Voluntary Filers
No 
 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
 
Entity Public Float
 
 
$ 11,395,283,906 
 
$ 412,319 
Consolidated Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Sales
$ 41,373 
$ 37,580 
$ 34,374 
Cost of Sales
37,456 
34,895 
32,016 
Gross Profit
3,917 
2,685 
2,358 
Operating Expenses:
 
 
 
Selling, General and Administrative
1,748 
1,255 
983 
Operating Income
2,169 
1,430 
1,375 
Other (Income) Expense:
 
 
 
Interest income
(9)
(7)
(7)
Interest expense
293 
132 
145 
Other, net
(36)
53 
(20)
Total Other (Income) Expense
248 
178 
118 
Income from Continuing Operations before Income Taxes
1,921 
1,252 
1,257 
Income Tax Expense
697 
396 
409 
Income from Continuing Operations
1,224 
856 
848 
Loss from Discontinued Operation, Net of Tax
0 
0 
(70)
Net Income
1,224 
856 
778 
Net Income (Loss) Attributable to Noncontrolling Interest
4 
(8)
0 
Net Income Attributable to Tyson
1,220 
864 
778 
Amounts attributable to Tyson:
 
 
 
Net Income from Continuing Operations Attributable to Tyson
1,220 
864 
848 
Net Loss from Discontinued Operation Attributable to Tyson
$ 0 
$ 0 
$ (70)
Weighted Average Shares Outstanding:
 
 
 
Diluted
413 
364 
367 
Net Income per Share from Continuing Operations Attributable to Tyson:
 
 
 
Diluted (USD per share)
$ 2.95 
$ 2.37 
$ 2.31 
Net Loss Per Share from Discontinued Operation Attributable to Tyson:
 
 
 
Diluted (USD per share)
$ 0.00 
$ 0.00 
$ (0.19)
Net Income Per Share Attributable to Tyson:
 
 
 
Diluted (USD per share)
$ 2.95 
$ 2.37 
$ 2.12 
Class A [Member]
 
 
 
Weighted Average Shares Outstanding:
 
 
 
Basic
335 
284 
282 
Net Income per Share from Continuing Operations Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 3.06 
$ 2.48 
$ 2.46 
Net Loss Per Share from Discontinued Operation Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 0.00 
$ 0.00 
$ (0.20)
Net Income Per Share Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 3.06 
$ 2.48 
$ 2.26 
Dividends Declared Per Share:
 
 
 
Dividends Declared (USD per share)
$ 0.425 
$ 0.325 
$ 0.310 
Class B [Member]
 
 
 
Weighted Average Shares Outstanding:
 
 
 
Basic
70 
70 
70 
Net Income per Share from Continuing Operations Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 2.79 
$ 2.26 
$ 2.22 
Net Loss Per Share from Discontinued Operation Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 0.00 
$ 0.00 
$ (0.18)
Net Income Per Share Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 2.79 
$ 2.26 
$ 2.04 
Dividends Declared Per Share:
 
 
 
Dividends Declared (USD per share)
$ 0.383 
$ 0.294 
$ 0.279 
Consolidated Statements of Comprehensive Income Statement (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
Net Income
$ 1,224 
$ 856 
$ 778 
Other Comprehensive Income (Loss), Net of Taxes:
 
 
 
Derivatives accounted for as cash flow hedges
2 
1 
(14)
Investments
(1)
4 
(3)
Currency translation
36 
(30)
(37)
Postretirement benefits
20 
(14)
9 
Total Other Comprehensive Income (Loss), Net of Taxes
57 
(39)
(45)
Comprehensive Income
1,281 
817 
733 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
4 
(8)
0 
Comprehensive Income Attributable to Tyson
$ 1,277 
$ 825 
$ 733 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Assets
 
 
Cash and cash equivalents
$ 688 
$ 438 
Accounts receivable, net
1,620 
1,684 
Inventories
2,878 
3,274 
Other current assets
195 
379 
Assets held for sale
0 
446 
Total Current Assets
5,381 
6,221 
Net Property, Plant and Equipment
5,176 
5,130 
Goodwill
6,667 
6,706 
Intangible Assets
5,168 
5,276 
Other Assets
612 
623 
Total Assets
23,004 
23,956 
Liabilities and Shareholders’ Equity
 
 
Current debt
715 
643 
Accounts payable
1,662 
1,806 
Other current liabilities
1,158 
1,207 
Liabilities held for sale
0 
141 
Total Current Liabilities
3,535 
3,797 
Long-Term Debt
6,010 
7,535 
Deferred Income Taxes
2,449 
2,450 
Other Liabilities
1,304 
1,270 
Commitments and Contingencies (Note 20)
   
   
Shareholders' Equity:
 
 
Capital in excess of par value
4,307 
4,257 
Retained earnings
6,813 
5,748 
Accumulated other comprehensive loss
(90)
(147)
Treasury stock, at cost - 47 million shares in 2015 and 40 million shares in 2014
(1,381)
(1,010)
Total Tyson Shareholders’ Equity
9,691 
8,890 
Noncontrolling Interests
15 
14 
Total Shareholders’ Equity
9,706 
8,904 
Total Liabilities and Shareholders’ Equity
23,004 
23,956 
Class A [Member]
 
 
Shareholders' Equity:
 
 
Common stock ($0.10 par value):
35 
35 
Total Tyson Shareholders’ Equity
35 
35 
Class B [Member]
 
 
Shareholders' Equity:
 
 
Common stock ($0.10 par value):
7 
7 
Total Tyson Shareholders’ Equity
$ 7 
$ 7 
Consolidated Balance Sheets (Parentheticals) (USD $)
Oct. 3, 2015
Sep. 27, 2014
Treasury Stock, shares
47,000,000 
40,000,000 
Class A [Member]
 
 
Common stock, par value
$ 0.1 
$ 0.1 
Common stock, shares authorized
900,000,000 
900,000,000 
Common stock, shares issued
346,000,000 
346,000,000 
Class B [Member]
 
 
Common stock, par value
$ 0.1 
$ 0.1 
Common stock, shares authorized
900,000,000 
900,000,000 
Common stock, shares issued
70,000,000 
70,000,000 
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
USD ($)
Capital In Excess Of Par Value [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Member]
USD ($)
Treasury Stock [Member]
USD ($)
Shareholders' Equity Attributable To Tyson [Member]
USD ($)
Equity Attributable To Noncontrolling Interests [Member]
USD ($)
2008 Warrants [Member]
Capital In Excess Of Par Value [Member]
USD ($)
2008 Warrants [Member]
Treasury Stock [Member]
USD ($)
3.25% Convertible senior notes due October 2013 [Member]
Capital In Excess Of Par Value [Member]
USD ($)
3.25% Convertible senior notes due October 2013 [Member]
Treasury Stock [Member]
USD ($)
Class A [Member]
USD ($)
Class A [Member]
2008 Warrants [Member]
Class A [Member]
3.25% Convertible senior notes due October 2013 [Member]
Class B [Member]
USD ($)
Balance at beginning of year, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 29, 2012
 
 
 
 
 
 
$ 30 
 
 
 
 
 
 
 
 
Balance at beginning of year, Shareholders' Equity Attributable to Tyson at Sep. 29, 2012
 
2,278 
4,327 
(63)
(569)
 
 
 
 
 
 
32 
 
 
7 
Balance at beginning of year, Common Stock shares at Sep. 29, 2012
 
 
 
 
 
 
 
 
 
 
 
322,000,000 
 
 
70,000,000 
Balance at beginning of year, Treasury Stock shares at Sep. 29, 2012
 
 
 
 
33,000,000 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Class A common stock, shares
 
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
Issuance of Class A common stock
 
0 
 
 
 
 
 
 
 
 
 
0 
 
 
 
Issuance of tangible equity units
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
Convertible note hedge settlement
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
Warrant settlement
 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
Stock-based compensation
 
14 
 
 
162 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Tyson
778 
 
778 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
 
 
(106)
 
 
 
 
 
 
 
 
(87)
 
 
(19)
Other Comprehensive Income (Loss)
(45)
 
 
(45)
 
 
 
 
 
 
 
 
 
 
 
Purchase of Class A common stock, shares
 
 
 
 
24,000,000 
 
 
 
 
 
 
23,900,000 
 
 
 
Purchase of Class A common stock
 
 
 
 
(614)
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement, shares
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
 
Convertible note hedge settlement, shares
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
 
Warrant settlement, shares
 
 
 
 
 
 
 
 
0 
 
 
 
 
 
 
Stock-based compensation, shares
 
 
 
 
(9,000,000)
 
 
 
 
 
 
 
 
 
 
Net loss attributable to noncontrolling interests
0 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
Contributions by noncontrolling interest
 
 
 
 
 
 
3 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interest
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
(1)
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 28, 2013
 
 
 
 
 
 
32 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Tyson at Sep. 28, 2013
 
2,292 
4,999 
(108)
(1,021)
6,201 
 
 
 
 
 
32 
 
 
7 
Balance at end of year, Total Shareholders' Equity at Sep. 28, 2013
6,233 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of year, Common Stock shares at Sep. 28, 2013
 
 
 
 
 
 
 
 
 
 
 
322,000,000 
 
 
70,000,000 
Balance at end of year, Treasury Stock shares at Sep. 28, 2013
 
 
 
 
48,000,000 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Class A common stock, shares
 
 
 
 
 
 
 
 
 
 
 
24,000,000 
 
 
 
Issuance of Class A common stock
 
870 
 
 
 
 
 
 
 
 
 
3 
 
 
 
Issuance of tangible equity units
 
1,255 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement
 
 
 
 
 
 
 
 
 
(248)
248 
 
 
 
 
Convertible note hedge settlement
 
 
 
 
 
 
 
 
 
341 
(341)
 
 
 
 
Warrant settlement
 
 
 
 
 
 
 
(289)
289 
 
 
 
 
 
 
Stock-based compensation
 
36 
 
 
110 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Tyson
864 
 
864 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
 
 
(115)
 
 
 
 
 
 
 
 
(94)
 
 
(21)
Other Comprehensive Income (Loss)
(39)
 
 
(39)
 
 
 
 
 
 
 
 
 
 
 
Purchase of Class A common stock, shares
 
 
 
 
8,000,000 
 
 
 
 
 
 
8,300,000 
 
 
 
Purchase of Class A common stock
 
 
 
 
(295)
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement, shares
 
 
 
 
 
 
 
 
 
 
(12,000,000)
 
 
 
 
Convertible note hedge settlement, shares
 
 
 
 
 
 
 
 
 
 
12,000,000 
 
 
 
 
Warrant settlement, shares
 
 
 
 
 
 
 
 
(12,000,000)
 
 
 
(11,700,000)
 
 
Stock-based compensation, shares
 
 
 
 
(4,000,000)
 
 
 
 
 
 
 
 
 
 
Net loss attributable to noncontrolling interests
8 
 
 
 
 
 
(8)
 
 
 
 
 
 
 
 
Contributions by noncontrolling interest
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interest
 
 
 
 
 
 
(11)
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
1 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 27, 2014
14 
 
 
 
 
 
14 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Tyson at Sep. 27, 2014
8,890 
4,257 
5,748 
(147)
(1,010)
8,890 
 
 
 
 
 
35 
 
 
7 
Balance at end of year, Total Shareholders' Equity at Sep. 27, 2014
8,904 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of year, Common Stock shares at Sep. 27, 2014
 
 
 
 
 
 
 
 
 
 
 
346,000,000 
 
 
70,000,000 
Balance at end of year, Treasury Stock shares at Sep. 27, 2014
40,000,000 
 
 
 
40,000,000 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Class A common stock, shares
 
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
Issuance of Class A common stock
 
0 
 
 
 
 
 
 
 
 
 
0 
 
 
 
Issuance of tangible equity units
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
Convertible note hedge settlement
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
Warrant settlement
 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
Stock-based compensation
 
50 
 
 
124 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Tyson
1,220 
 
1,220 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
 
 
(155)
 
 
 
 
 
 
 
 
(129)
 
 
(26)
Other Comprehensive Income (Loss)
57 
 
 
57 
 
 
 
 
 
 
 
 
 
 
 
Purchase of Class A common stock, shares
 
 
 
 
12,000,000 
 
 
 
 
 
 
11,900,000 
 
 
 
Purchase of Class A common stock
 
 
 
 
(495)
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement, shares
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
 
Convertible note hedge settlement, shares
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
 
Warrant settlement, shares
 
 
 
 
 
 
 
 
0 
 
 
 
 
 
 
Stock-based compensation, shares
 
 
 
 
(5,000,000)
 
 
 
 
 
 
 
 
 
 
Net loss attributable to noncontrolling interests
(4)
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
Contributions by noncontrolling interest
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interest
 
 
 
 
 
 
(1)
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
(2)
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Oct. 03, 2015
15 
 
 
 
 
 
15 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Tyson at Oct. 03, 2015
9,691 
4,307 
6,813 
(90)
(1,381)
9,691 
 
 
 
 
 
35 
 
 
7 
Balance at end of year, Total Shareholders' Equity at Oct. 03, 2015
$ 9,706 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of year, Common Stock shares at Oct. 03, 2015
 
 
 
 
 
 
 
 
 
 
 
346,000,000 
 
 
70,000,000 
Balance at end of year, Treasury Stock shares at Oct. 03, 2015
47,000,000 
 
 
 
47,000,000 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Cash Flows From Operating Activities:
 
 
 
Net Income
$ 1,224 
$ 856 
$ 778 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
Depreciation
609 
494 
474 
Amortization
102 
36 
45 
Deferred income taxes
38 
(105)
(12)
Convertible debt discount
0 
(92)
0 
Gain on disposition of Business
(177)
0 
0 
Impairment of assets
285 
107 
74 
Share-based Compensation
69 
51 
36 
Other, net
71 
(20)
(10)
Increase in accounts receivable
66 
(93)
(126)
(Increase) decrease in inventories
220 
(148)
15 
Increase (decrease) in accounts payable
(162)
202 
(12)
Increase (decrease) in income taxes payable/receivable
177 
(133)
80 
Increase (decrease) in interest payable
(23)
5 
(1)
Net changes in other operating assets and liabilities
71 
18 
(27)
Cash Provided by Operating Activities
2,570 
1,178 
1,314 
Cash Flows from Investing Activities:
 
 
 
Additions to property, plant and equipment
(854)
(632)
(558)
Purchases of marketable securities
(38)
(18)
(135)
Proceeds from sale of marketable securities
52 
33 
117 
Acquisitions, net of cash acquired
0 
(8,193)
(106)
Proceeds from sale of businesses
539 
0 
0 
Other, net
31 
10 
39 
Cash Provided by (Used for) Investing Activities
(270)
(8,800)
(643)
Cash Flows from Financing Activities:
 
 
 
Payments on debt
(1,995)
(639)
(91)
Proceeds from issuance of long-term debt
501 
5,576 
68 
Borrowings on revolving credit facility
1,345 
0 
0 
Payments on revolving credit facility
(1,345)
0 
0 
Proceeds from Issuance of Debt Component of Tangible Equity Units
0 
205 
0 
Proceeds from issuance of common stock, net of issuance costs
0 
873 
0 
Proceeds from issuance of equity component of tangible equity units
0 
1,255 
0 
Purchases of Tyson Class A common stock
(495)
(295)
(614)
Dividends
(147)
(104)
(104)
Stock options exercised
84 
67 
123 
Other, net
17 
(23)
18 
Cash Provided by (Used for) Financing Activities
(2,035)
6,915 
(600)
Effect of Exchange Rate Change on Cash
(15)
0 
3 
Increase (Decrease) in Cash and Cash Equivalents
250 
(707)
74 
Cash and Cash Equivalents at Beginning of Year
438 
1,145 
1,071 
Cash and Cash Equivalents at End of Period
$ 688 
$ 438 
$ 1,145 
Business And Summary Of Significant Accounting Policies
Business And Summary Of Significant Accounting Policies
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business: Tyson Foods, Inc. (collectively, “Company,” “we,” “us” or “our”), founded in 1935 with world headquarters in Springdale, Arkansas, is one of the world's largest food companies with leading brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee®, Ball Park®, Wright®, Aidells® and State Fair®. We are a recognized market leader in chicken, beef and pork as well as prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, tortillas and desserts.
Consolidation: The consolidated financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Fiscal Year: We utilize a 52- or 53-week accounting period ending on the Saturday closest to September 30. The Company’s accounting cycle resulted in a 53-week year for fiscal 2015 and a 52-week year for fiscal 2014 and 2013.
Cash and Cash Equivalents: Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as part of our cash management activity. The carrying values of these assets approximate their fair values. We primarily utilize a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts where funds are moved to, and several zero-balance disbursement accounts for funding payroll, accounts payable, livestock procurement, grower payments, etc. As a result of our cash management system, checks issued, but not presented to the banks for payment, may result in negative book cash balances. These negative book cash balances are included in accounts payable and other current liabilities. At October 3, 2015, and September 27, 2014, checks outstanding in excess of related book cash balances totaled approximately $257 million and $298 million, respectively.
Accounts Receivable: We record accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, level of past due accounts and relationships with and economic status of our customers. At October 3, 2015, and September 27, 2014, our allowance for uncollectible accounts was $27 million and $34 million, respectively. We generally do not have collateral for our receivables, but we do periodically evaluate the credit worthiness of our customers.
Inventories: Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
In fiscal 2015, 63% of the cost of inventories was determined by the first-in, first-out ("FIFO") method as compared to 66% in fiscal 2014. The remaining cost of inventories for both years is determined by the weighted-average method.
The following table reflects the major components of inventory at October 3, 2015, and September 27, 2014:
 
 
 
in millions

 
2015

 
2014

Processed products
$
1,631

 
$
1,794

Livestock
831

 
1,066

Supplies and other
416

 
414

Total inventory
$
2,878

 
$
3,274


Property, Plant and Equipment: Property, plant and equipment are stated at cost and generally depreciated on a straight-line method over the estimated lives for buildings and leasehold improvements of 10 to 33 years, machinery and equipment of three to 12 years and land improvements and other of three to 20 years. Major repairs and maintenance costs that significantly extend the useful life of the related assets are capitalized. Normal repairs and maintenance costs are charged to operations.
We review the carrying value of long-lived assets at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest, taxes, depreciation and amortization. We measure impairment as the excess of carrying value over the fair value of an asset. The fair value of an asset is measured using discounted cash flows including market participant assumptions of future operating results and discount rates.
Goodwill and Intangible Assets: Definite life intangibles are initially recorded at fair value and amortized over the estimated period of benefit, which is generally based on the straight-line method over 20 years or less. Amortization expense is generally recognized in selling, general, and administrative expense. We review the carrying value of definite life intangibles at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest, taxes, depreciation and amortization. We measure impairment as the excess of carrying value over the fair value of the definite life intangible asset. We use various valuation techniques to estimate fair value, with the primary techniques being discounted cash flows, relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
Goodwill and indefinite life intangible assets are initially recorded at fair value and not amortized, but are reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, the fair value of the reporting unit may be more likely than not less than carrying amount, or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test.
The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the quantitative impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied fair value of goodwill exceeds the carrying amount, then goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was determined as the exit price a market participant would pay for the same business). We have elected to make the first day of the fourth quarter the annual impairment assessment date for goodwill and indefinite life intangible assets.
We estimate the fair value of our reporting units using a discounted cash flow analysis, which uses significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. This analysis requires us to make various judgmental estimates and assumptions about sales, operating margins, growth rates and discount factors and is believed to reflect market participant views which would exist in an exit transaction. Generally, we utilize normalized operating margin assumptions based on future expectations and operating margins historically realized in the reporting units' industries. Some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management, including interest rates, cost of capital, tax rates and credit ratings. While we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If our actual results are not consistent with our estimates and assumptions used to calculate fair value, we may be required to perform the second step of the quantitative test in future years, which could result in material impairments of our goodwill.
The discount rate used in our annual goodwill impairment test decreased to 6.8% in fiscal 2015 from 7.9% in fiscal 2014. The discount rate used in our indefinite life intangible test was 8.0% in fiscal 2015. We did not have material indefinite life intangible assets prior to the acquisition of Hillshire Brands in August 2014.
During fiscal 2015, 2014 and 2013, all of our material reporting units that underwent a quantitative test passed the first step of the goodwill impairment analysis and therefore, the second step was not necessary. In fiscal 2015, we recorded a $23 million full impairment of an immaterial reporting unit’s goodwill.
For our indefinite life intangible assets, a qualitative assessment can also be performed to determine whether the existence of events and circumstances indicates it is more likely than not an intangible asset is impaired. Similar to goodwill, we can also elect to forgo the qualitative test for indefinite life intangible assets and perform the quantitative test. Upon performing the quantitative test, if the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
The fair value of our indefinite life intangible assets is calculated principally using relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy, and is believed to reflect market participant views which would exist in an exit transaction. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
Investments: We have investments in joint ventures and other entities. We generally use the cost method of accounting when our voting interests are less than 20 percent. We use the equity method of accounting when our voting interests are in excess of 20 percent and we do not have a controlling interest or a variable interest in which we are the primary beneficiary. Investments in joint ventures and other entities are reported in the Consolidated Balance Sheets in Other Assets.
We also have investments in marketable debt securities. We have determined all of our marketable debt securities are available-for-sale investments. These investments are reported at fair value based on quoted market prices as of the balance sheet date, with unrealized gains and losses, net of tax, recorded in other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is recorded in interest income. The cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of debt securities and declines in value judged to be other than temporary are recorded on a net basis in other income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.
Accrued Self-Insurance: We use a combination of insurance and self-insurance mechanisms in an effort to mitigate the potential liabilities for health and welfare, workers’ compensation, auto liability and general liability risks. Liabilities associated with our risks retained are estimated, in part, by considering claims experience, demographic factors, severity factors and other actuarial assumptions.
Other Current Liabilities: Other current liabilities at October 3, 2015, and September 27, 2014, include:
 
in millions
 
 
2015

 
2014

Accrued salaries, wages and benefits
$
478

 
$
490

Accrued marketing, advertising and promotion expense
192

 
185

Other
488

 
532

Total other current liabilities
$
1,158

 
$
1,207


Defined Benefit Plans: We recognize the funded status of defined pension and postretirement plans in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of the plan assets and the benefit obligation. We measure our plan assets and liabilities at the end of our fiscal year. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any other defined benefit postretirement plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement benefit obligation. Any overfunded status is recognized as an asset and any underfunded status is recognized as a liability. Any transitional asset/liability, prior service cost or actuarial gain/loss that has not yet been recognized as a component of net periodic cost is recognized in accumulated other comprehensive income. Accumulated other comprehensive income will be adjusted as these amounts are subsequently recognized as a component of net periodic benefit costs in future periods.
Derivative Financial Instruments: We purchase certain commodities, such as grains and livestock in the course of normal operations. As part of our commodity risk management activities, we use derivative financial instruments, primarily futures and options, to reduce our exposure to various market risks related to these purchases, as well as to changes in foreign currency exchange rates. Contract terms of a financial instrument qualifying as a hedge instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. Contracts designated and highly effective at meeting risk reduction and correlation criteria are recorded using hedge accounting. If a derivative instrument is accounted for as a hedge, changes in the fair value of the instrument will be offset either against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is immediately recognized in earnings as a component of cost of sales. Instruments we hold as part of our risk management activities that do not meet the criteria for hedge accounting are marked to fair value with unrealized gains or losses reported currently in earnings. Changes in market value of derivatives used in our risk management activities relating to forward sales contracts are recorded in sales, while changes surrounding inventories on hand or anticipated purchases of inventories or supplies are recorded in cost of sales. We generally do not hedge anticipated transactions beyond 18 months.
Revenue Recognition: We recognize revenue when title and risk of loss are transferred to customers, which is generally on delivery based on terms of sale. Revenue is recognized as the net amount estimated to be received after deducting estimated amounts for discounts, trade allowances and product returns.
Litigation Reserves: There are a variety of legal proceedings pending or threatened against us. Accruals are recorded when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated based on current law, progress of each case, opinions and views of legal counsel and other advisers, our experience in similar matters and intended response to the litigation. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment efforts progress or additional information becomes available. We expense amounts for administering or litigating claims as incurred. Accruals for legal proceedings are included in Other current liabilities in the Consolidated Balance Sheets.
Freight Expense: Freight expense associated with products shipped to customers is recognized in cost of sales.
Advertising and Promotion Expenses: Advertising and promotion expenses are charged to operations in the period incurred. Customer incentive and trade promotion activities are recorded as a reduction to sales based on amounts estimated as being due to customers, based primarily on historical utilization and redemption rates, while other advertising and promotional activities are recorded as selling, general and administrative expenses. Advertising and promotion expenses for fiscal 2015, 2014 and 2013 were $966 million, $641 million and $555 million, respectively.
Research and Development: Research and development costs are expensed as incurred. Research and development costs totaled $75 million, $52 million and $50 million in fiscal 2015, 2014 and 2013, respectively.
Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Reclassification: We reclassified Share-based compensation expense, which was previously included in Other, net within the cash flows from operating activities in the Consolidated Statements of Cash Flows to conform to the current period presentation.
Recently Issued Accounting Pronoucements
Recently Issued Accounting Pronouncements
RECENTLY ISSUED ACCOUNTING PRONOUCEMENTS
In May 2014, the Financial Accounting Standards Board (FASB) issued guidance changing the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In February 2015, the FASB issued guidance changing the analysis procedures that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods, beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In April 2015, the FASB issued guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. This new guidance is not expected to have a material impact on our consolidated financial statements.
In April 2015, the FASB issued guidance on the recognition of fees paid by a customer for cloud computing arrangements. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the software license consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In July 2015, the FASB issued guidance which requires management to evaluate inventory at the lower of cost and net realizable value. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018. Early adoption is permitted and the prospective transition method should be applied. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In April 2014, the FASB issued guidance changing the criteria for reporting discontinued operations. The guidance also modifies the related disclosure requirements. The guidance is effective on a prospective basis for annual reporting periods beginning after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015. Early adoption is permitted and we adopted it in fiscal 2014. The adoption did not have a significant impact on our consolidated financial statements.
Acquisitions and Dispositions
Acquisitions and Dispositions
ACQUISITIONS AND DISPOSITIONS
Acquisitions
On August 28, 2014, we acquired all of the outstanding stock of The Hillshire Brands Company ("Hillshire Brands") as part of our strategic expansion initiative. The purchase price was equal to $63.00 per share for Hillshire Brands' outstanding common stock, or $8,081 million. In addition, we paid $163 million in cash for breakage costs incurred by Hillshire Brands related to a previously announced acquisition. We funded the acquisition with existing cash on hand, net proceeds from the issuance of new senior notes, Class A common stock (Class A stock), and tangible equity units as well as borrowings under a new term loan facility (refer to Note 7: Debt and Note 8: Equity). Hillshire Brands' results from operations subsequent to the acquisition closing are included in the Prepared Foods segment.
The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. The purchase price was allocated based on information available at the acquisition date. During fiscal 2015, we recorded measurement period adjustments, which reduced goodwill by $14 million, after obtaining additional information regarding, among other things, asset valuations and liabilities assumed. The amount was not considered material and therefore prior periods have not been revised. The purchase price allocation was finalized during the fourth quarter of fiscal 2015.
 
in millions
 
Cash and cash equivalents
 
$
72

Accounts receivable
 
236

Inventories
 
414

Other current assets
 
343

Property, Plant and Equipment
 
1,301

Goodwill
 
4,790

Intangible Assets
 
5,141

Other Assets
 
64

Accounts payable
 
(347
)
Other current liabilities
 
(327
)
Long-Term Debt
 
(869
)
Deferred Income Taxes
 
(2,074
)
Other Liabilities
 
(500
)
Net asset acquired
 
$
8,244


The fair value of identifiable intangible assets at the acquisition date is as follows:
 
 
 
 
 
 
in millions

Intangible Asset Category
 
Type
 
Life in Years
 
Fair Value
Brands & trademarks
 
Non-amortizable
 
Indefinite
 
$
4,062

Brands & trademarks
 
Amortizable
 
20 years
 
532

Customer relationships
 
Amortizable
 
Weighted average life of 16 years
 
541

Non-compete agreements
 
Amortizable
 
1 year
 
6

Total identifiable intangible assets
 
 
 
 
 
$
5,141


As a result of the acquisition, we recognized a total of $4,790 million of goodwill. The purchase price was assigned to assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition, and any excess was allocated to goodwill, as shown in the table above. Goodwill represents the value we expect to achieve through the implementation of operational synergies and growth opportunities primarily in our Prepared Foods segment. We completed the allocation of goodwill to our segments in the fourth quarter of fiscal 2015 using the with-and-without approach of the synergy impact to fair value of our reporting units. The allocation of goodwill to our Chicken, Beef, Pork, and Prepared Foods segments was $658 million, $113 million, $106 million and $3,913 million, respectively. The fair value of this goodwill is not deductible for United States income tax purposes.
We used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow analysis, relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
The acquisition of Hillshire Brands was accounted for using the acquisition method of accounting, and consequently, the results of operations for Hillshire Brands are reported in our consolidated financial statements from the date of acquisition.
The following unaudited pro forma information presents the combined results of operations as if the acquisition of Hillshire Brands had occurred at the beginning of fiscal 2013. Hillshire Brands' pre-acquisition results have been added to our historical results. The pro forma results contained in the table below include adjustments for amortization of acquired intangibles, depreciation expense, interest expense related to the financing and related income taxes. Any potential cost savings or other operational efficiencies that could result from the acquisition are not included in these pro forma results.
The 2013 pro forma results include transaction related expenses incurred by Hillshire Brands prior to the acquisition of $168 million, including items such as consultant fees, accelerated stock compensation and other deal costs; transaction related expenses incurred by the Company of $115 million, including fees paid to third parties, financing costs and other deal costs; and $32 million of expense related to the fair value inventory adjustment at the date of acquisition.
These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor is it necessarily an indication of future operating results.
 
in millions (unaudited)
 
 
2014

 
2013

Pro forma sales
$
41,311

 
$
38,195

Pro forma net income from continuing operations attributable to Tyson
1,047

 
655

Pro forma net income per diluted share from continuing operations attributable to Tyson
$
2.50

 
$
1.52


During fiscal 2014 we acquired a value-added food business as part of our strategic expansion initiative, which is included in our Prepared Foods segment. The aggregate purchase price of the acquisition was $56 million, which included $12 million for Property, Plant and Equipment, $27 million allocated to Intangible Assets and $18 million allocated to Goodwill.
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.
Dispositions
In fiscal 2014, we announced our plan to sell our Brazil and Mexico operations, which are included in Other, to JBS SA ("JBS") for $575 million in cash less debt and other adjustments. As a result, we conducted an impairment test and recorded a $39 million impairment charge in the fourth quarter of fiscal 2014 related to our Brazil operation. We completed the sale of the Brazil operation in the first quarter of fiscal 2015 and received net proceeds of $148 million including working capital, net debt adjustments and cash transferred. The sale did not result in a significant gain or loss as the carrying value of the Brazil operation approximated the sales proceeds at the time of sale.
We completed the sale of the Mexico operation in the fourth quarter of fiscal 2015 and received net proceeds of approximately $374 million including working capital, net debt adjustments and cash transferred. As a result of the sale, we recorded a pre-tax gain of $161 million, which is reflected in Cost of Sales in our Consolidated Statements of Income. We utilized the net proceeds to retire the 2.75% senior notes due September 2015.
The assets and liabilities related to the Brazil and Mexico operations were classified as held for sale on the balance sheet at September 27, 2014. The following table summarizes the net assets and liabilities held for sale:
 
in millions

 
2014

Assets held for sale:
 
Accounts receivable, net
$
74

Inventories
141

Other current assets
72

Net property, plant and equipment
132

Goodwill
16

Other assets
11

Total assets held for sale
$
446

Liabilities held for sale:
 
Current debt
$
32

Accounts payable
61

Other current liabilities
27

Long-term debt
9

Deferred income taxes
12

Total liabilities held for sale
$
141


In the fourth quarter of fiscal 2015, to better align our overall production capacity with current cattle supplies, we ceased beef operations at our Denison, Iowa plant. As a result, we recorded $12 million in closure and impairment charges during the fourth quarter of fiscal 2015. These charges impact the Beef segment’s operating income and are reflected in Cost of Sales in our Consolidated Statements of Income.
In the fourth quarter of fiscal 2015, we recorded $59 million impairment and other related charges associated with a Prepared Foods project designed to optimize the combined Tyson and Hillshire Brands network capacity and to enhance manufacturing efficiencies for the future. As a result of this project, we expect to close our Chicago, Illinois hospitality plant and our Jefferson, Wisconsin plant in the back half of fiscal 2016. These charges are reflected in the Prepared Foods segment’s operating income, of which $49 million is included in the Consolidated Statements of Income in Cost of Sales and $10 million is included in the Consolidated Statements of Income in Selling, General and Administrative.
In fiscal 2015, as part of our ongoing efforts to increase efficiencies in our Chicken business, we announced the planned closure of our Buena Vista, Georgia plant. The plant closed in May 2015 and the closure costs did not have a significant impact on the Company's operating results.
In fiscal 2014, we recorded impairment charges of $52 million related to the closure of three Prepared Foods plants. The Company’s Cherokee, Iowa plant closed in September 2014 and the Buffalo, New York and Santa Teresa, New Mexico plants each closed in January 2015. Additionally, in April 2014, Hillshire Brands announced that it would discontinue all production at its Florence, Alabama plant. The plant closed in December 2014 and the closure costs did not have a significant impact on the Company's financial results.
In fiscal 2014, we sold our 50 percent ownership interest of Dynamic Fuels LLC (Dynamic Fuels) for $30 million cash consideration at closing and up to $35 million in future cash payments contingent on Dynamic Fuels' production volumes over a period of up to 11.5 years. Additionally as part of the terms of the sale, we were released from our guarantee of the $100 million Gulf Opportunity Zone tax-exempt bonds, which were issued in October 2008 to fund a portion of the plant construction costs. Dynamic Fuels previously qualified as a variable interest entity which we consolidated, as we were the primary beneficiary. As a result of the sale, we deconsolidated Dynamic Fuels and recorded a gain of approximately $3 million, which is reflected in Cost of Sales in our Consolidated Statements of Income. We will recognize the future contingent payments in income as the required volumes are produced.
Discontinued Operation
Discontinued Operation [Text Block]
DISCONTINUED OPERATION
After conducting an assessment during fiscal 2013 of our long-term business strategy in China, we determined our Weifang operation (Weifang), which is included in Other in Note 17: Segment Reporting, 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 based on the accounting guidance in effect at that time. 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 period's results, including the impairment charge, have been reclassified and presented as a discontinued operation in our Consolidated Statements of Income. The following is a summary of the discontinued operation's results:
 
 
 
 
 
 
in millions

 
 
2015

 
2014

 
2013

Sales
 
$
—

 
$
—

 
$
108

 
 
 
 
 
 
 
Pretax loss
 
—

 
—

 
(68
)
Income tax expense
 
—

 
—

 
2

Loss from discontinued operation, net of tax
 
$
—

 
$
—

 
$
(70
)
Property, Plant And Equipment
Property, Plant And Equipment
PROPERTY, PLANT AND EQUIPMENT
The following table reflects major categories of property, plant and equipment and accumulated depreciation at October 3, 2015, and September 27, 2014:
 
in millions
 
 
2015

 
2014

Land
$
122

 
$
126

Building and leasehold improvements
3,581

 
3,501

Machinery and equipment
6,452

 
6,144

Land improvements and other
286

 
276

Buildings and equipment under construction
375

 
334

 
10,816

 
10,381

Less accumulated depreciation
5,640

 
5,251

Net property, plant and equipment
$
5,176

 
$
5,130


Approximately $565 million will be required to complete buildings and equipment under construction at October 3, 2015.
Goodwill And Other Intangible Assets
Goodwill And Other Intangible Assets
GOODWILL AND INTANGIBLE ASSETS
The following table reflects goodwill activity for fiscal 2015 and 2014:
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other(a)

 
Unallocated

 
Consolidated

Balance at September 28, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
908

 
$
1,123

 
$
317

 
$
75

 
$
68

 
$
—

 
$
2,491

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(29
)
 
—

 
(589
)
 
908

 
563

 
317

 
75

 
39

 
—

 
1,902

Fiscal 2014 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition
—

 
—

 
—

 
18

 
5

 
4,804

 
4,827

Reclass to assets held for sale
—

 
—

 
—

 
—

 
(16
)
 
—

 
(16
)
Impairment losses
—

 
—

 
—

 
—

 
(5
)
 
—

 
(5
)
Currency translation and other
(1
)
 
—

 
—

 
(1
)
 
—

 
—

 
(2
)
Balance at September 27, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
907

 
1,123

 
317

 
92

 
57

 
4,804

 
7,300

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(34
)
 
—

 
(594
)
 
$
907

 
$
563

 
$
317

 
$
92

 
$
23

 
$
4,804

 
$
6,706

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2015 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Measurement period adjustments
—

 
—

 
—

 
—

 
—

 
(14
)
 
(14
)
Allocation of acquired goodwill
658

 
113

 
106

 
3,913

 
—

 
(4,790
)
 
—

Impairment losses
—

 
—

 
—

 
—

 
(23
)
 
—

 
(23
)
Currency translation and other
(2
)
 
—

 
—

 
—

 
—

 
—

 
(2
)
Balance at October 3, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,563

 
1,236

 
423

 
4,005

 
57

 
—

 
7,284

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(57
)
 
—

 
(617
)
 
$
1,563

 
$
676

 
$
423

 
$
4,005

 
$
—

 
$
—

 
$
6,667


(a) Other included the goodwill from our international chicken operation.
On August 28, 2014, we acquired and consolidated Hillshire Brands. The unallocated portion of goodwill at September 27, 2014, is attributable to our acquisition of Hillshire Brands. During fiscal 2015, we recorded measurement period adjustments, which reduced goodwill by $14 million and completed the allocation of goodwill to our segments (see Note 3: Acquisitions and Dispositions).
The following table reflects intangible assets by type at October 3, 2015, and September 27, 2014:
in millions
 
 
2015

 
2014

Amortizable intangible assets:
 
 
 
Brands and trademarks
$
594

 
$
611

Customer relationships
564

 
570

Patents, intellectual property and other
115

 
136

Non-compete agreements
—

 
6

Land use rights
9

 
8

  Total gross amortizable intangible assets
$
1,282

 
$
1,331

     Less accumulated amortization
192

 
133

  Total net amortizable intangible assets
$
1,090

 
$
1,198

Brands and trademarks not subject to amortization
4,078

 
4,078

  Total intangible assets
$
5,168

 
$
5,276


Amortization expense of $92 million, $26 million and $17 million was recognized during fiscal 2015, 2014 and 2013, respectively. We estimate amortization expense on intangible assets for the next five fiscal years subsequent to October 3, 2015, will be: 2016 - $80 million; 2017 - $78 million; 2018 - $76 million; 2019 - $72 million; 2020 - $69 million.
Debt
Debt
DEBT
The following table reflects major components of debt as of October 3, 2015, and September 27, 2014:
 
 
 
in millions

 
2015

 
2014

Revolving credit facility
$
—

 
$
—

Senior notes:
 
 
 
2.75% Senior notes due September 2015 (2015 Notes)
—

 
407

6.60% Senior notes due April 2016
638

 
638

7.00% Notes due May 2018
120

 
120

2.65% Notes due August 2019
1,000

 
1,000

4.10% Notes due September 2020
285

 
287

4.50% Senior notes due June 2022
1,000

 
1,000

3.95% Notes due August 2024
1,250

 
1,250

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032
163

 
164

4.88% Notes due August 2034
500

 
500

5.15% Notes due August 2044
500

 
500

Discount on senior notes
(10
)
 
(12
)
Term loans:
 
 
 
3-year tranche A
—

 
1,172

3-year tranche B (1.31% at 10/3/2015)
500

 
—

5-year tranche A
—

 
353

5-year tranche B (1.69% at 10/3/2015)
552

 
552

Amortizing Notes - Tangible Equity Units (see Note 8: Equity)
140

 
205

Other
69

 
24

Total debt
6,725

 
8,178

Less current debt
715

 
643

Total long-term debt
$
6,010

 
$
7,535

Annual maturities of debt for the five fiscal years subsequent to October 3, 2015, are: 2016 - $715 million; 2017 - $79 million; 2018 - $627 million; 2019 - $1,559 million; 2020 - $285 million.
Revolving Credit Facility
We have a $1.25 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 September 2019. After reducing for the amount borrowed and outstanding letters of credit issued under this facility, the amount available for borrowing at October 3, 2015, was $1,244 million. At October 3, 2015, we had outstanding letters of credit issued under this facility totaling $6 million, none of which were drawn upon. We had an additional $93 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of leasing obligations and workers’ compensation insurance programs.
The revolving credit facility is unsecured and is fully guaranteed by Tyson Fresh Meats, Inc. (TFM Parent), our wholly owned subsidiary, until such date TFM Parent is released from all of its guarantees of other material indebtedness. If in the future any of our other subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall also be required to guarantee the indebtedness, obligations and liabilities under this facility.
2013 Notes
In September 2008, we issued $458 million principal amount 3.25% convertible senior unsecured notes due October 15, 2013. 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. Simultaneously with the settlement of the conversion premium, we received 11.7 million shares of our Class A stock from the call options. The warrants were settled on various dates in fiscal 2014 resulting in the issuance of 11.7 million shares of Class A stock.
2015 Notes
In July 2015, we exercised an early redemption option to retire the outstanding $401 million balance of the 2015 Notes using cash proceeds from the sale of the Mexico operation as further described in Note 3: Acquisitions and Dispositions.
Term Loans
In April 2015, we entered into a term loan agreement, which provided total borrowings in an aggregate principal amount of $500 million, the full balance of which was used to prepay outstanding borrowings under the existing 3-year tranche A term loan facility. The $500 million 3-year tranche B term loan facility is due April 7, 2018. Interest is reset based on the selected LIBOR interest period plus 1.125%.
Debt Covenants
Our revolving credit and term loan facilities contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; make acquisitions and investments; dispose of or transfer assets; change the nature of our business; engage in certain transactions with affiliates; and enter into hedging transactions, in each case, subject to certain qualifications and exceptions. In addition, we are required to maintain minimum interest expense coverage and maximum debt-to-capitalization ratios.
Our senior notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens; engage in certain sale/leaseback transactions; and engage in certain consolidations, mergers and sales of assets.
We were in compliance with all debt covenants at October 3, 2015.
Equity
Equity
EQUITY
Capital Stock
We have two classes of capital stock, Class A stock, $0.10 par value and Class B Common Stock, $0.10 par value (Class B stock). Holders of Class B stock may convert such stock into Class A stock on a share-for-share basis. Holders of Class B stock are entitled to 10 votes per share, while holders of Class A stock are entitled to one vote per share on matters submitted to shareholders for approval. As of October 3, 2015, Tyson Limited Partnership (the TLP) owned 99.985% of the outstanding shares of Class B stock and the TLP and members of the Tyson family owned, in the aggregate, 1.79% of the outstanding shares of Class A stock, giving them, collectively, control of approximately 70.64% of the total voting power of the outstanding voting stock.
The Class B stock is considered a participating security requiring the use of the two-class method for the computation of basic earnings per share. The two-class computation method for each period reflects the cash dividends paid for each class of stock, plus the amount of allocated undistributed earnings (losses) computed using the participation percentage, which reflects the dividend rights of each class of stock. Basic earnings per share were computed using the two-class method for all periods presented. The shares of Class B stock are considered to be participating convertible securities since the shares of Class B stock are convertible on a share-for-share basis into shares of Class A stock. Diluted earnings per share were computed assuming the conversion of the Class B shares into Class A shares as of the beginning of each period.
Dividends
Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of the cash dividend paid to holders of Class B stock cannot exceed 90% of the cash dividend simultaneously paid to holders of Class A stock. We pay quarterly cash dividends to Class A and Class B shareholders. We paid Class A dividends per share of $0.40, $0.30, and $0.30 in fiscal 2015, 2014, and 2013, respectively. We paid Class B dividends per share of $0.36, $0.27, and $0.27 in fiscal 2015, 2014, and 2013, respectively. Fiscal 2013 included a special dividend of $0.10 per share for Class A stock and $0.09 per share for Class B. On November 19, 2015, the Board of Directors increased the quarterly dividend previously declared on July 30, 2015, to $0.15 per share on our Class A stock and $0.135 per share on our Class B stock. The increased quarterly dividend is payable on December 15, 2015, to shareholders of record at the close of business on December 1, 2015.
Share Repurchases
In fiscal 2014, our Board of Directors approved an increase of 25 million shares authorized for repurchase under our share repurchase program. As of October 3, 2015, 21.1 million shares remained available for repurchase. The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, our working capital needs, market conditions, liquidity targets, our debt obligations and regulatory requirements. In addition to the share repurchase program, we purchase shares on the open market to fund certain obligations under our equity compensation plans.
A summary of cumulative share repurchases of our Class A Stock is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
October 3, 2015
 
September 27, 2014
 
September 28, 2013
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
11.0

 
$
455

 
7.1

 
$
250

 
21.1

 
$
550

To fund certain obligations under equity compensation plans
 
0.9

 
40

 
1.2

 
45

 
2.8

 
64

Total share repurchases
 
11.9

 
$
495

 
8.3

 
$
295

 
23.9

 
$
614


Subsequent to October 3, 2015, we have repurchased approximately 5.7 million shares of our common stock under our share repurchase program. These shares were repurchased for $257 million.
Share Issuance
In fiscal 2014, we issued 23.8 million shares of our Class A stock, to provide funding for the Hillshire Brands acquisition. Total proceeds, net of underwriting discounts and other offering related fees and expenses were $873 million.
Tangible Equity Units
In fiscal 2014, we completed the public issuance of 30 million, 4.75% tangible equity units (TEUs). Total proceeds, net of underwriting discounts and other expenses, were $1,454 million. Each TEU, which has a stated amount of $50, is comprised of a prepaid stock purchase contract and a senior amortizing note due July 15, 2017. We allocated the proceeds from the issuance of the TEUs to equity and debt based on the relative fair values of the respective components of each TEU. The fair value of the prepaid stock purchase contracts, which was $1,295 million, was recorded in Capital in Excess of Par Value, net of issuance costs. The fair value of the senior amortizing notes, which was $205 million, was recorded in debt. Issuance costs associated with the TEU debt were recorded as deferred financing costs in the Consolidated Balance Sheets in Other Assets and are amortized over the term of the instrument to July 15, 2017.
The aggregate values assigned upon issuance of each component of the TEU's, based on the relative fair value of the respective components of each TEU, were as follows:
 
 
 
in millions, except price per TEU
 
Equity Component
 
Debt Component
 
Total
Price per TEU
$
43.17

 
$
6.83

 
$
50.00

Gross Proceeds
1,295

 
205

 
1,500

Issuance cost
(40
)
 
(6
)
 
(46
)
Net proceeds
$
1,255

 
$
199

 
$
1,454


Each senior amortizing note has an initial principal amount of $6.83 and bears interest at 1.5% per annum. On each January 15, April 15, July 15 and October 15, we will pay equal quarterly cash installments of $0.59 per amortizing note which cash payment in the aggregate (principal and interest) is equivalent to 4.75% per year with respect to the $50 stated amount per TEU. Each installment constitutes a payment of interest and partial repayment of principal. Unless settled earlier at the holder's or the Company's option, each purchase contract will automatically settle on July 15, 2017, subject to postponement in certain limited circumstances. We will deliver between a minimum of 31.8 million shares and a maximum of 39.8 million shares of our Class A stock, subject to adjustment, based upon the Applicable Market Value (as defined below) of our Class A stock as described below:
•
If the Applicable Market Value is equal to or greater than the conversion price of $47.14 per share, we will deliver 1.0606 shares of Class A stock per purchase contract, or a minimum of 31.8 million Class A shares.
•
If the Applicable Market Value is greater than the reference price of $37.71 but less than the conversion price of $47.14 per share, we will deliver a number of shares per purchase contract equal to $50, divided by the Applicable Market Value.
•
If the Applicable Market Value is less than or equal to the reference price of $37.71 per share, we will deliver 1.3260 shares of Class A stock per purchase contract, or a maximum of 39.8 million Class A shares.
The "Applicable Market Value" means the average of the closing prices of our Class A stock on each of the 20 consecutive trading days beginning on, and including, the 23rd scheduled trading day immediately preceding July 15, 2017.
On September 15, 2015, we paid our quarterly dividend to shareholders of record at September 1, 2015, equal to $0.10 per share on our Class A stock. The amount of the distribution exceeded the $0.075 per share dividend threshold amount. Consequently, the settlement rates, reference price and conversion price were adjusted and are reflected above.
The TEUs have a dilutive effect on our earnings per share. The 31.8 million minimum shares to be issued are included in the calculation of Class A Basic weighted average shares. The 8 million share difference between the minimum shares and the 39.8 million maximum shares are potentially dilutive securities, and accordingly, are included in our diluted earnings per share on a pro rata basis to the extent the Applicable Market Value is higher than the reference price but is less than the conversion price.
Income Taxes
Income Taxes
INCOME TAXES
Detail of the provision for income taxes from continuing operations consists of the following:
 
 
 
 
 
in millions  

 
2015

 
2014

 
2013

Federal
$
564

 
$
325

 
$
341

State
89

 
67

 
38

Foreign
44

 
4

 
30

 
$
697

 
$
396

 
$
409

 
 
 
 
 
 
Current
$
659

 
$
501

 
$
421

Deferred
38

 
(105
)
 
(12
)
 
$
697

 
$
396

 
$
409


The reasons for the difference between the statutory federal income tax rate and our effective income tax rate from continuing operations are as follows:
 
2015

 
2014

 
2013

Federal income tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes
3.1

 
2.8

 
2.4

Unrecognized tax benefits, net
(1.8
)
 
(4.7
)
 
(0.2
)
Domestic production deduction
(3.7
)
 
(4.0
)
 
(3.2
)
Foreign rate differences and valuation allowances
3.8

 
2.8

 
0.3

Other
(0.1
)
 
(0.3
)
 
(1.7
)
 
36.3
 %
 
31.6
 %
 
32.6
 %

During fiscal 2015, the domestic production deduction and changes in unrecognized tax benefits decreased tax expense by $72 million and $34 million, respectively, and state tax expense, net of federal tax benefit, was $59 million. Additionally, foreign rate differences, mostly driven by the China impairment, unfavorably impacted tax expense by $73 million. The sale of the Mexico and Brazil operations and related repatriation of proceeds did not have a significant impact on the effective income tax rate.
During fiscal 2014, the domestic production deduction and the decrease in unrecognized tax benefits decreased tax expense by $50 million and $58 million, respectively.
During fiscal 2013, the domestic production deduction and estimated general business credits decreased tax expense by $40 million and $17 million, respectively.
Approximately $1,908 million, $1,270 million, and $1,204 million of income from continuing operations before income taxes for fiscal 2015, 2014 and 2013, respectively, were from our domestic operations based in the United States.
We recognize deferred income taxes for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
The tax effects of major items recorded as deferred tax assets and liabilities as of October 3, 2015, and September 27, 2014, are as follows:
 
 
 
 
 
 
 
in millions

 
2015
 
2014
 
Deferred Tax
 
Deferred Tax
 
Assets

 
Liabilities

 
Assets

 
Liabilities

Property, plant and equipment
$
—

 
$
783

 
$
—

 
$
732

Intangible assets
—

 
2,000

 
—

 
2,031

Accrued expenses
439

 
—

 
474

 
—

Net operating loss and other carryforwards
97

 
—

 
96

 
—

Other
122

 
238

 
125

 
269

 
$
658

 
$
3,021

 
$
695

 
$
3,032

Valuation allowance
$
(68
)
 
 
 
$
(51
)
 
 
Net deferred tax liability
 
 
$
2,431

 
 
 
$
2,388


We record deferred tax amounts in Other current assets, Other Assets, Other current liabilities and Deferred Income Taxes in the Consolidated Balance Sheets.
At October 3, 2015, our gross state tax net operating loss carryforwards approximated $938 million and expire in fiscal years 2016 through 2035. Gross foreign net operating loss carryforwards approximated $29 million and expire in fiscal years 2016 through 2021. We also have tax credit carryforwards of approximately $46 million that expire in fiscal years 2016 through 2035.
We have accumulated undistributed earnings of foreign subsidiaries aggregating approximately $139 million and $403 million at October 3, 2015, and September 27, 2014, respectively. In fiscal 2015, the Company completed the sales of the Mexico and Brazil operations and repatriated the related net proceeds resulting in a significant decrease in the balance of accumulated undistributed earnings. The accumulated undistributed earnings at October 3, 2015 are expected to be indefinitely reinvested outside of the United States. If those earnings were distributed in the form of dividends or otherwise, we could be subject to federal income taxes (subject to an adjustment for foreign tax credits), state income taxes and withholding taxes payable to the various foreign countries. Due to the uncertainty of the manner in which the undistributed earnings would be brought back to the United States, the tax laws in effect at that time, as well as the availability of the Company to claim foreign tax credits, it is not currently practicable to estimate the tax liability that might be payable on the repatriation of these foreign earnings.
The following table summarizes the activity related to our gross unrecognized tax benefits at October 3, 2015, September 27, 2014, and September 28, 2013:
 
 
 
 
 
in millions

 
2015

 
2014

 
2013

Balance as of the beginning of the year
$
272

 
$
175

 
$
168

Increases related to current year tax positions
78

 
11

 
3

Increases related to prior year tax positions
11

 
17

 
15

Change related to Hillshire Brands balances
—

 
136

 
—

Reductions related to prior year tax positions
(18
)
 
(20
)
 
(6
)
Reductions related to settlements
—

 
(1
)
 
(2
)
Reductions related to expirations of statute of limitations
(37
)
 
(46
)
 
(3
)
Balance as of the end of the year
$
306

 
$
272

 
$
175

The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $244 million and $241 million at October 3, 2015, and September 27, 2014, respectively. We classify interest and penalties on unrecognized tax benefits as income tax expense. At October 3, 2015, and September 27, 2014, before tax benefits, we had $46 million and $54 million, respectively, of accrued interest and penalties on unrecognized tax benefits.
As of October 3, 2015, we are subject to income tax examinations for United States federal income taxes for fiscal years 2011 through 2014. We are also subject to income tax examinations by major state and foreign jurisdictions for fiscal years 2005 through 2014 and 2002 through 2014, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease by as much as $14 million primarily due to expiration of statutes in various jurisdictions.
Other Income And Charges
Other Income And Charges
OTHER INCOME AND CHARGES
Following the sale of our Mexico and Brazil chicken production operations, we have continued to review our strategies and outlook for the remaining international businesses, which operations include our chicken production operations in China. Despite our belief in the potential for this business, our Chinese operations have not achieved profitability. Given the ongoing losses being generated in this business, recent changes in the strategy and management of the business, and the depressed economic outlook for China, we assessed our Chinese operations for potential impairment in the fourth quarter of fiscal 2015. As a result of this evaluation, during the fourth quarter of fiscal 2015, we recorded a $169 million impairment charge. The impairment was comprised of $126 million of property, plant and equipment, $23 million of goodwill and $20 million of other assets. The China operation is included in Other for segment reporting and the impairment is included in Cost of Sales in the Consolidated Statements of Income.
During fiscal 2015, we recorded $12 million of equity earnings in joint ventures and $21 million of gains on the sale of equity securities, which were recorded in the Consolidated Statements of Income in Other, net.
During fiscal 2014, we recorded $11 million of equity earnings in joint ventures, $3 million in net foreign currency exchange gains, $6 million of other than temporary impairment related to an available-for-sale security and $60 million of costs associated with bridge financing facilities for the Hillshire Brands acquisition, which were recorded in the Consolidated Statements of Income in Other, net.
During fiscal 2013, we recorded a $19 million currency translation adjustment gain recognized in conjunction with the receipt of proceeds constituting the final resolution of our investment in Canada, which was recorded in the Consolidated Statements of Income in Other, net.
Earnings Per Share
Earnings Per Share
EARNINGS PER SHARE
The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:
 
in millions, except per share data
 
 
2015

 
2014

 
2013

Numerator:
 
 
 
 
 
Income from continuing operations
$
1,224

 
$
856

 
$
848

Less: Net income (loss) attributable to noncontrolling interests
4

 
(8
)
 
—

Net income from continuing operations attributable to Tyson
1,220

 
864

 
848

Less dividends declared:
 
 
 
 
 
Class A
129

 
94

 
87

Class B
26

 
21

 
19

Undistributed earnings
$
1,065

 
$
749

 
$
742

 
 
 
 
 
 
Class A undistributed earnings
$
896

 
$
612

 
$
606

Class B undistributed earnings
169

 
137

 
136

Total undistributed earnings
$
1,065

 
$
749

 
$
742

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Class A weighted average shares
335

 
284

 
282

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

 
70

 
70

Effect of dilutive securities:
 
 
 
 
 
Stock options and restricted stock
5

 
5

 
5

Tangible Equity Units
3

 
1

 
—

Convertible 2013 Notes
—

 
—

 
7

Warrants
—

 
4

 
3

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
413

 
364

 
367

 
 
 
 
 
 
Net Income Per Share from Continuing Operations Attributable to Tyson:
 
 
 
 
Class A Basic
$
3.06

 
$
2.48

 
$
2.46

Class B Basic
$
2.79

 
$
2.26

 
$
2.22

Diluted
$
2.95

 
$
2.37

 
$
2.31

 
 
 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
 
 
Class A Basic
$
3.06

 
$
2.48

 
$
2.26

Class B Basic
$
2.79

 
$
2.26

 
$
2.04

Diluted
$
2.95

 
$
2.37

 
$
2.12


We had approximately 5 million and 4 million of our stock-based compensation shares that were antidilutive for fiscal 2015 and 2014, respectively. We had no stock-based compensation shares that were antidilutive for fiscal 2013. 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 to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Our risk management programs are periodically reviewed by our Board of Directors' Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using value-at-risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit-worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at October 3, 2015.
We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
 
 
 
 
in millions, except soy meal tons
 
 
 
Metric
 
October 3, 2015

 
September 27, 2014

Corn
 
Bushels
 
18

 
—

Soy Meal
 
Tons
 
284,900

 
198,100

Live Cattle
 
Pounds
 
102

 
405

Lean Hogs
 
Pounds
 
166

 
350

Foreign Currency
 
United States dollar
 
$
42

 
$
109


We recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets, with the exception of normal purchases and normal sales expected to result in physical delivery. 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 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 are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant during fiscal 2015, 2014 and 2013. As of October 3, 2015, the net amounts expected to be reclassified into earnings within the next 12 months are pretax losses of $1 million. During fiscal 2015, 2014 and 2013, we did not reclassify significant pretax gains/losses into earnings as a result of the discontinuance of cash flow hedges.
The following table sets forth the pretax impact of cash flow hedge derivative instruments in the Consolidated Statements of Income:
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Gain (Loss)
Recognized in OCI
on Derivatives
 
 
Consolidated
Statements of Income
Classification
 
Gain (Loss)
Reclassified from
OCI to Earnings
 
 
2015

 
2014

 
2013

 
 
 
2015

 
2014

 
2013

Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(4
)
 
$
(7
)
 
$
(29
)
 
Cost of Sales
 
$
(7
)
 
$
(10
)
 
$
(5
)
Foreign exchange contracts
—

 
(1
)
 
(2
)
 
Other Income/Expense
 
—

 
—

 
(4
)
Total
$
(4
)
 
$
(8
)
 
$
(31
)
 
 
 
$
(7
)
 
$
(10
)
 
$
(9
)

Fair value hedges
We designate certain derivative 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. For these derivative instruments we designate and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in earnings in the same period. We include the gain or loss on the hedged items (i.e., livestock purchase firm commitments) in the same line item, Cost of Sales, as the offsetting gain or loss on the related livestock forward position.
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
2015

 
2014

 
2013

Gain (Loss) on forwards
 
Cost of Sales
 
$
17

 
$
(154
)
 
$
21

Gain (Loss) on purchase contract
 
Cost of Sales
 
(17
)
 
154

 
(21
)

Ineffectiveness related to our fair value hedges was not significant during fiscal 2015, 2014 and 2013.
Undesignated positions
In addition to our designated positions, we also hold derivative contracts for which we do not apply hedge accounting. These include certain derivative instruments related to commodities price risk, including grains, livestock, energy and foreign currency risk. We mark these positions to fair value through earnings at each reporting date.
The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Statements of Income:
 
 
 
 
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
Gain (Loss)
Recognized
in Earnings
 
 
 
 
 
2015

 
2014

 
2013

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
Sales
 
$
(62
)
 
$
75

 
$
(10
)
Commodity contracts
 
Cost of Sales
 
(33
)
 
(136
)
 
(24
)
Foreign exchange contracts
 
Other Income/Expense
 
(4
)
 
—

 
2

Total
 
 
 
$
(99
)
 
$
(61
)
 
$
(32
)

The fair value of all outstanding derivative instruments in the Consolidated Balance Sheets are included in Note 13: Fair Value Measurements.
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

October 3, 2015
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
52

 
$
—

 
$
(35
)
 
$
17

Undesignated
—

 
9

 
—

 
(9
)
 
—

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Non-current
—

 
33

 
60

 
—

 
93

Deferred Compensation Assets
9

 
222

 
—

 
—

 
231

Total Assets
$
9

 
$
317

 
$
61

 
$
(44
)
 
$
343

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
2

 
$
—

 
$
(2
)
 
$
—

Undesignated
—

 
49

 
—

 
(47
)
 
2

Total Liabilities
$
—

 
$
51

 
$
—

 
$
(49
)
 
$
2

 
 
 
 
 
 
 
 
 
 
September 27, 2014
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
17

 
$
—

 
$
(17
)
 
$
—

Undesignated
—

 
42

 
—

 
(33
)
 
9

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
—

 
—

 
1

Non-current
1

 
24

 
67

 
—

 
92

Deferred Compensation Assets
15

 
218

 
—

 
—

 
233

Total Assets
$
16

 
$
302

 
$
67

 
$
(50
)
 
$
335

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
78

 
$
—

 
$
(78
)
 
$
—

Undesignated
—

 
82

 
—

 
(70
)
 
12

Total Liabilities
$
—

 
$
160

 
$
—

 
$
(148
)
 
$
12

(a)
Our derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At October 3, 2015, and September 27, 2014, we had posted with various counterparties $5 million and $98 million, respectively, of cash collateral related to our derivative financial instruments 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

 
October 3, 2015

 
September 27, 2014

Balance at beginning of year
$
67

 
$
65

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
20

 
25

Issuances
—

 
—

Settlements
(26
)
 
(23
)
Balance at end of year
$
61

 
$
67

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

 
$
—


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Derivative Assets and Liabilities: Our derivative financial instruments primarily include exchange-traded and over-the-counter contracts which are further described in Note 12: Derivative Financial Instruments. We record our derivative financial instruments 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 market prices. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges or observable market transactions.
Available for Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. Short-term investments with maturities of less than 12 months are included in Other current assets in the Consolidated Balance Sheets and primarily include certificates of deposit and commercial paper. All other marketable debt securities are included in Other Assets in the Consolidated Balance Sheets and have maturities ranging up to 35 years. We classify our investments in United States government, United States 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 financial statements.
 
 
 
 
 
 
 
 
 
in millions
 
 
October 3, 2015
 
September 27, 2014
 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
 
 
Debt Securities:
 
 
 
 
 
 
 
 
 
 
 
United States Treasury and Agency
$
33

 
$
34

 
$
1

 
$
25

 
$
25

 
$
—

Corporate and Asset-Backed
60

 
61

 
1

 
65

 
67

 
2

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock and Warrants (a)
—

 
—

 
—

 
1

 
1

 
—

 
(a)
At October 3, 2015, and September 27, 2014, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of approximately nil and $2 million, respectively.
Unrealized holding gains (losses), net of tax, are excluded from earnings and reported in OCI until the security is settled or sold. On a quarterly basis, we evaluate whether losses related to our available-for-sale securities are temporary in nature. Losses on equity securities are recognized in earnings if the decline in value is judged to be other than temporary. If losses related to our debt securities are determined to be other than temporary, the loss would be recognized in earnings if we intend, or more likely than not will be required, to sell the security prior to recovery. For debt securities in which we have the intent and ability to hold until maturity, losses determined to be other than temporary would remain in OCI, other than expected credit losses which are recognized in earnings. We consider many factors in determining whether a loss is temporary, including the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. We recognized no other than temporary impairment in earnings for fiscal 2015, and $6 million of other than temporary impairment for fiscal 2014, which was recorded in the Consolidated Statements of Income in Other, net. No other than temporary losses were deferred in OCI as of October 3, 2015, and September 27, 2014.
Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are generally maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated Balance Sheets. We classify the investments which have observable market prices in active markets in Level 1 as these are generally publicly-traded mutual funds. The remaining deferred compensation assets are classified in Level 2, as fair value can be corroborated based on observable market data. Realized and unrealized gains (losses) on deferred compensation are included in earnings.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges.
In fiscal 2015, to better align our overall production capacity with current cattle supplies, we ceased beef operations at our Denison, Iowa plant. As a result, we recorded a $12 million impairment charge during the fourth quarter of fiscal 2015. This charge impacts the Beef segment’s operating income and is reflected in Cost of Sales in our Consolidated Statements of Income. Our valuation of these assets was primarily based on discounted cash flow models which included unobservable Level 3 inputs.
In the fourth quarter of fiscal 2015, we recorded $59 million impairment and other related charges associated with a Prepared Foods project designed to optimize the combined Tyson and Hillshire Brands network capacity and to enhance manufacturing efficiencies for the future. This charge is reflected in the Prepared Foods segment’s operating income, of which $49 million is included in the Consolidated Statements of Income in Cost of Sales and $10 million is included in the Consolidated Statements of Income in Selling, General and Administrative. Our valuation of these assets was primarily based on discounted cash flow models which included unobservable Level 3 inputs.
Following the sale of our Mexico and Brazil chicken operations in fiscal 2015, we reviewed our long-term business strategy and outlook for the remaining international businesses, which includes our chicken production operations in China and India. We assessed our Chinese operation for a potential impairment in the fourth quarter of fiscal 2015 and as a result of this evaluation, we recorded a $169 million charge to impair its long-lived assets to their fair value and to fully impair its goodwill. The China operation is included in Other for segment reporting and the impairment is included in Cost of Sales in the Consolidated Statements of Income. This impairment was comprised of $126 million of property, plant and equipment, $23 million of goodwill and $20 million of other assets. We utilized a discounted cash flow analysis which included unobservable Level 3 inputs.
In fiscal 2014, we recorded a $52 million impairment charge related to the closure of three Prepared Foods plants, which is recorded in the Consolidated Statements of Income in Cost of Sales and in the Prepared Foods segment. Our valuation of these assets was primarily based on discounted cash flow models which included unobservable Level 3 inputs.
In fiscal 2014, we announced our plan to sell our Brazil operation. As a result, we recorded a $39 million charge to impair its assets to its fair value of $144 million. The impairment charge was recorded in the Consolidated Statements of Income in Cost of Sales and in Other for segment reporting. The fair value used to determine the impairment was based upon the contracted sales price.
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
 
 
October 3, 2015
 
September 27, 2014
 
Fair
Value

 
Carrying
Value

 
Fair
Value

 
Carrying
Value

Total Debt
$
6,900

 
$
6,725

 
$
8,347

 
$
8,178


Concentrations of Credit Risk
Our financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Our cash equivalents are in high quality securities placed with major banks and financial institutions. Concentrations of credit risk with respect to receivables are limited due to the large number of customers and their dispersion across geographic areas. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral. At October 3, 2015, and September 27, 2014, 20.0% and 18.6%, respectively, of our net accounts receivable balance was due from Wal-Mart Stores, Inc. No other single customer or customer group represented greater than 10% of net accounts receivable.
Stock-Based Compensation
Stock-Based Compensation
STOCK-BASED COMPENSATION
We issue shares under our stock-based compensation plans by issuing Class A stock from treasury. The total number of shares available for future grant under the Tyson Foods, Inc. 2000 Stock Incentive Plan (Incentive Plan) was 24,293,913 at October 3, 2015.
Stock Options
Shareholders approved the Incentive Plan in January 2001. The Incentive Plan is administered by the Compensation and Leadership Development Committee of the Board of Directors (Compensation Committee). The Incentive Plan includes provisions for granting incentive stock options for shares of Class A stock at a price not less than the fair value at the date of grant. Nonqualified stock options may be granted at a price equal to or more than the fair value of Class A stock on the date the option is granted. Stock options under the Incentive Plan generally become exercisable ratably over three years from the date of grant and must be exercised within 10 years from the date of grant. Our policy is to recognize compensation expense on a straight-line basis over the requisite service period for the entire award.
 
Shares Under
Option

 
Weighted
Average Exercise
Price Per Share

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

Outstanding, September 27, 2014
13,724,409

 
$
21.30

 
 
 
 
Exercised
(3,900,576
)
 
21.47

 
 
 
 
Forfeited or expired
(177,491
)
 
37.23

 
 
 
 
Granted
5,088,723

 
42.26

 
 
 
 
Outstanding, October 3, 2015
14,735,065

 
28.30

 
7.1
 
$
237

 
 
 
 
 
 
 
 
Exercisable, October 3, 2015
6,789,969

 
$
18.73

 
5.4
 
$
174


We generally grant stock options once a year. The weighted average grant-date fair value of options granted in fiscal 2015, 2014 and 2013 was $11.51, $10.83 and $6.44, respectively. The fair value of each option grant is established on the date of grant using a binomial lattice method. We use historical volatility for a period of time comparable to the expected life of the option to determine volatility assumptions. Expected life is calculated based on the contractual term of each grant and takes into account the historical exercise and termination behavior of participants. Risk-free interest rates are based on the five-year Treasury bond rate. Assumptions as of the grant date used in the fair value calculation of each year’s grants are outlined in the following table.
 
2015

 
2014

 
2013

Expected life (in years)
6.1

 
6.0

 
6.2

Risk-free interest rate
1.6
%
 
1.3
%
 
0.7
%
Expected volatility
26.7
%
 
36.0
%
 
36.8
%
Expected dividend yield
1.0
%
 
1.0
%
 
1.0
%

We recognized stock-based compensation expense related to stock options, net of income taxes, of $27 million, $20 million and $14 million for fiscal 2015, 2014 and 2013, respectively. The related tax benefit for fiscal 2015, 2014 and 2013 was $17 million, $13 million and $9 million, respectively. We had 3.8 million, 4.8 million and 3.9 million options vest in fiscal 2015, 2014 and 2013, respectively, with a grant date fair value of $32 million, $30 million and $22 million, respectively.
In fiscal 2015, 2014 and 2013, we received cash of $84 million, $67 million and $123 million, respectively, for the exercise of stock options. Shares are issued from treasury for stock option exercises. The related tax benefit realized from stock options exercised during fiscal 2015, 2014 and 2013, was $30 million, $33 million and $35 million, respectively. The total intrinsic value of options exercised in fiscal 2015, 2014 and 2013, was $79 million, $87 million and $90 million, respectively. Cash flows resulting from tax deductions in excess of the compensation cost of those options (excess tax deductions) are classified as financing cash flows. We realized $19 million, $24 million and $18 million related to excess tax deductions during fiscal 2015, 2014 and 2013, respectively.
As of October 3, 2015, we had $45 million of total unrecognized compensation cost related to stock option plans that will be recognized over a weighted average period of 1.4 years.
Restricted Stock
We issue restricted stock at the market value as of the date of grant, with restrictions expiring over periods through fiscal 2018. Unearned compensation is recognized over the vesting period for the particular grant using a straight-line method.
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, September 27, 2014
938,944

 
$
23.18

 
 
 
 
Granted
742,036

 
42.39

 
 
 
 
Dividends
11,431

 
34.99

 
 
 
 
Vested
(520,964
)
 
20.28

 
 
 
 
Forfeited
(63,519
)
 
36.61

 
 
 
 
Nonvested, October 3, 2015
1,107,928

 
$
36.76

 
1.6
 
$
49


As of October 3, 2015, we had $24 million of total unrecognized compensation cost related to restricted stock awards that will be recognized over a weighted average period of 2.1 years.
We recognized stock-based compensation expense related to restricted stock, net of income taxes, of $9 million, $6 million and $5 million for fiscal 2015, 2014 and 2013, respectively. The related tax benefit for fiscal 2015, 2014 and 2013 was $6 million, $4 million and $3 million, respectively. We had 0.5 million, 0.6 million and 1.4 million restricted stock awards vest in fiscal 2015, 2014 and 2013, respectively, with a grant date fair value of $10 million, $11 million and $20 million, respectively.
Performance-Based Shares
We award performance-based shares of our Class A stock to certain senior executives. These awards are typically granted once a year. Performance-based shares vest based upon the passage of time and the achievement of performance or market performance criteria, ranging from 0% to 200%, as determined by the Compensation Committee prior to the date of the award. Vesting periods for these awards are generally three years. We review progress toward the attainment of the performance criteria each quarter during the vesting period. When it is probable the minimum performance criteria for an award will be achieved, we begin recognizing the expense equal to the proportionate share of the total fair value of the Class A stock price on the grant date. The total expense recognized over the duration of performance awards will equal the Class A stock price on the date of grant multiplied by the number of shares ultimately awarded based on the level of attainment of the performance criteria. For grants with market performance criteria, the fair value is determined on the grant date and is calculated using the same inputs for expected volatility, expected dividend yield, and risk-free rate as stock options, noted above, with a duration of three years. The total expense recognized over the duration of the award will equal the fair value, regardless if the market performance criteria is met.
The following table summarizes the performance-based shares at the maximum award amounts based upon the respective performance share agreements. Actual shares that will vest depend on the level of attainment of the performance-based criteria.
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, September 27, 2014
1,403,603

 
$
26.77

 
 
 
 
Granted
522,746

 
46.16

 
 
 
 
Vested
(25,922
)
 
17.36

 
 
 
 
Forfeited
(65,327
)
 
37.98

 
 
 
 
Nonvested, October 3, 2015
1,835,100

 
$
32.03

 
0.9
 
$
81


We recognized stock-based compensation expense related to performance shares, net of income taxes, of $5 million, $4 million and $2 million for fiscal 2015, 2014 and 2013, respectively. The related tax benefit for fiscal 2015, 2014 and 2013 was $3 million, $2 million and $2 million, respectively. As of October 3, 2015, we had $11 million of total unrecognized compensation based upon our progress toward the attainment of criteria related to performance-based share awards that will be recognized over a weighted average period of 1.7 years.
Pensions And Other Postretirement Benefits
Pensions And Other Postretirement Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
At October 3, 2015, we had nine defined benefit pension plans consisting of six funded qualified plans and three unfunded non-qualified plans. In regards to our qualified plans, five are frozen and noncontributory. The benefits provided under these plans are based on a formula using years of service and either a specified benefit rate or compensation level. The non-qualified defined benefit plans are for certain contracted officers and use a formula based on years of service and final average salary. We also have other postretirement benefit plans for which substantially all of our employees may receive benefits if they satisfy applicable eligibility criteria. The postretirement healthcare plans are contributory with participants’ contributions adjusted when deemed necessary.
We have defined contribution retirement programs for various groups of employees. We recognized expenses of $62 million, $53 million and $50 million in fiscal 2015, 2014 and 2013, respectively.
We use a fiscal year end measurement date for our defined benefit plans and other postretirement plans. We recognize the effect of actuarial gains and losses into earnings immediately for other postretirement plans rather than amortizing the effect over future periods.
Other postretirement benefits include postretirement medical costs and life insurance.
Benefit Obligations and Funded Status
The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at October 3, 2015, and September 27, 2014:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2015

 
2014

 
2015

 
2014

Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
1,849

 
$
86

 
$
182

 
$
85

 
$
163

 
$
71

Service cost
10

 
1

 
8

 
7

 
5

 
2

Interest cost
78

 
10

 
8

 
5

 
7

 
3

Plan amendments
—

 
—

 
—

 
—

 
(60
)
 
—

Plan participants’ contributions
—

 
—

 
—

 
—

 
2

 
1

Actuarial (gain)/loss
(50
)
 
(37
)
 
11

 
15

 
9

 
(8
)
Benefits paid
(102
)
 
(11
)
 
(8
)
 
(3
)
 
(12
)
 
(6
)
Business acquisition
—

 
1,800

 
—

 
73

 
—

 
100

Benefit obligation at end of year
1,785

 
1,849

 
201

 
182

 
114

 
163

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
1,647

 
85

 
3

 
—

 
—

 
—

Actual return on plan assets
25

 
(36
)
 
—

 
—

 
—

 
—

Employer contributions
6

 
6

 
8

 
3

 
10

 
5

Plan participants’ contributions
—

 
—

 
—

 
—

 
2

 
1

Benefits paid
(102
)
 
(11
)
 
(8
)
 
(3
)
 
(12
)
 
(6
)
Business acquisition
—

 
1,603

 
—

 
3

 
—

 
—

Other
—

 
—

 
(3
)
 
—

 
—

 
—

Fair value of plan assets at end of year
1,576

 
1,647

 
—

 
3

 
—

 
—

Funded status
$
(209
)
 
$
(202
)
 
$
(201
)
 
$
(179
)
 
$
(114
)
 
$
(163
)

Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2015

 
2014

 
2015

 
2014

Other current liabilities
$
—

 
$
—

 
$
(9
)
 
$
(5
)
 
$
(20
)
 
$
(7
)
Other liabilities
(209
)
 
(202
)
 
(192
)
 
(174
)
 
(94
)
 
(156
)
Total liabilities
$
(209
)
 
$
(202
)
 
$
(201
)
 
$
(179
)
 
$
(114
)
 
$
(163
)

Amounts recognized in Accumulated Other Comprehensive Income consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2015

 
2014

 
2015

 
2014

Accumulated other comprehensive (income)/loss:
 
 
 
 
 
 
 
 
 
 
 
   Actuarial loss
$
57

 
$
39

 
$
43

 
$
36

 
$
—

 
$
—

   Prior service cost/(credit) (a)
—

 
—

 
—

 
—

 
(59
)
 
(2
)
Total accumulated other comprehensive (income)/loss:
$
57

 
$
39

 
$
43

 
$
36

 
$
(59
)
 
$
(2
)
(a)
The change in prior service cost is primarily attributed to the plan amendments to the other postretirement benefits as noted within the change in benefit obligation with remainder of the change being immaterial.

At October 3, 2015, eight pension plans had an accumulated benefit obligation in excess of plan assets. At September 27, 2014, seven pension plans had an accumulated benefit obligation in excess of plan assets. Plans with accumulated benefit obligations in excess of plan assets are as follows:
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Qualified
 
Non-Qualified
 
2015

 
2014

 
2015

 
2014

Projected benefit obligation
$
1,781

 
$
1,829

 
$
201

 
$
182

Accumulated benefit obligation
1,781

 
1,829

 
193

 
172

Fair value of plan assets
1,572

 
1,627

 
—

 
3

The accumulated benefit obligation for all qualified pension plans was $1,785 million and $1,849 million at October 3, 2015, and September 27, 2014, respectively.
Net Periodic Benefit Cost
Components of net periodic benefit cost for pension and postretirement benefit plans recognized in the Consolidated Statements of Income are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

Service cost
$
10

 
$
1

 
$
—

 
$
8

 
$
7

 
$
5

 
$
5

 
$
2

 
$
2

Interest cost
78

 
10

 
4

 
8

 
5

 
3

 
7

 
3

 
2

Expected return on plan assets
(102
)
 
(13
)
 
(5
)
 
—

 
—

 
—

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
—

 
—

 
1

 
(1
)
 
—

 
(1
)
Recognized actuarial (gain) loss, net
2

 
2

 
4

 
4

 
2

 
3

 
9

 
(8
)
 
7

Recognized settlement (gain) loss
8

 
—

 
—

 
—

 
—

 
—

 
(2
)
 
—

 
—

Net periodic benefit (credit) cost
$
(4
)
 
$
—

 
$
3

 
$
20

 
$
14

 
$
12

 
$
18

 
$
(3
)
 
$
10


As of October 3, 2015, the amounts expected to be reclassified into earnings within the next 12 months related to net periodic benefit cost for the qualified and non-qualified pensions are $2 million and $5 million, respectively. As of October 3, 2015, the amount expected to be reclassified into earnings within the next 12 months related to net periodic benefit credit for the other postretirement benefits is $18 million.
Assumptions
Weighted average assumptions are as follows:
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

Discount rate to determine net periodic benefit cost
4.32
%
 
4.37
%
 
4.02
%
 
4.36
%
 
5.01
%
 
4.23
%
 
3.97
%
 
4.41
%
 
3.66
%
Discount rate to determine benefit obligations
4.47
%
 
4.32
%
 
4.77
%
 
4.41
%
 
4.36
%
 
5.09
%
 
3.54
%
 
3.97
%
 
4.48
%
Rate of compensation increase
0.01
%
 
0.01
%
 
n/a

 
2.31
%
 
2.11
%
 
3.50
%
 
n/a

 
n/a

 
n/a

Expected return on plan assets
4.61
%
 
6.37
%
 
5.44
%
 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

 
n/a


To determine the expected return on plan assets assumption, we first examined historical rates of return for the various asset classes within the plans. We then determined a long-term projected rate-of-return based on expected returns.
Our discount rate assumptions used to account for pension and other postretirement benefit plans reflect the rates at which the benefit obligations could be effectively settled. These were determined using a cash flow matching technique whereby the rates of a yield curve, developed from high-quality debt securities, were applied to the benefit obligations to determine the appropriate discount rate. As of October 3, 2015 and September 27, 2014, all pension and other postretirement benefit plans used the RP-2014 mortality tables.
We have five other postretirement benefit plans which are healthcare and life insurance related. Two of these plans, which benefit obligations totaled $24 million at October 3, 2015, were not impacted by healthcare cost trend rates as one consists of fixed annual payments and one is life insurance related. Two of the healthcare plans, which benefit obligations totaled $23 million at October 3, 2015, were not impacted by healthcare cost trend rates due to plan amendments. The remaining plan, which the benefit obligation totaled $67 million at October 3, 2015, utilized assumed healthcare cost trend rates of 9.0% and 7.6% for retirees who qualify and do not qualify for Medicare, respectively. The healthcare cost trend rate will be grading down to an ultimate rate of 4.5% in 2024/2025. A one-percentage-point change in assumed health-care cost trend rates would have the following effects:
 
 
 
in millions

 
One Percentage Point Increase
 
One Percentage Point Decrease
Effect on postretirement benefit obligation
$
8

 
$
7

Effect on total service and interest components
—

 
—


Plan Assets
The following table sets forth the actual and target asset allocation for pension plan assets:
 
2015

 
2014

 
Target Asset
Allocation

Cash
0.3
%
 
4.9
%
 
—
%
Fixed Income Securities
85.4

 
80.5

 
86.0

United States Stock Funds
3.9

 
6.0

 
4.0

International Stock Funds
6.8

 
6.2

 
6.5

Real Estate
3.6

 
2.0

 
3.5

Other
—

 
0.4

 
—

Total
100.0
%
 
100.0
%
 
100.0
%

Additionally, one of our foreign subsidiary pension plans had $14 million and $15 million in plan assets held in an insurance trust at October 3, 2015, and September 27, 2014, respectively.
The plan trustees have established a set of investment objectives related to the assets of the domestic pension plans and regularly monitor the performance of the funds and portfolio managers. Objectives for the pension assets are (i) to provide growth of capital and income, (ii) to achieve a target weighted average annual rate of return competitive with funds with similar investment objectives and (iii) to diversify to reduce risk. The target asset allocations are based upon the funded status of the plans. As pension obligations become better funded, we will lower risk by increasing the allocation to fixed income.
As noted in the previous table, on an aggregate fair value basis, the plan assets are currently at approximately 85% fixed income securities and 11% equity securities. Fixed income securities can include, but are not limited to, direct bond investments, and pooled or indirect bond investments. Other investments may include, but are not limited to, international and domestic equities, real estate, commodities and private equity. Derivative instruments may also be used in concert with either fixed income or equity investments to achieve desired exposure or to hedge certain risks. Derivative instruments can include, but are not limited to, futures, options, swaps or swaptions. We believe there are no significant concentrations of risk within our plan assets as of October 3, 2015.
The following tables show the categories of pension plan assets and the level under which fair values were determined in the fair value hierarchy, which is described in Note 13: Fair Value Measurements.
 
in millions
 
October 3, 2015
Level 1

 
Level 2 (a)

 
Level 3 (b)

 
Total

Cash and cash equivalents
$
5

 
$
—

 
$
—

 
$
5

Fixed Income Securities:
 
 
 
 
 
 
 
Bond and fixed income funds
—

 
1,334

 
—

 
1,334

Total fixed income securities
—

 
1,334

 
—

 
1,334

Equity Securities:
 
 
 
 
 
 


United States securities funds
—

 
61

 
—

 
61

Non-United States securities funds
—

 
106

 
—

 
106

Global real estate funds
—

 
56

 
—

 
56

Total equity securities
—

 
223

 
—

 
223

Insurance contract at contract value
—

 
—

 
14

 
14

Total plan assets
$
5

 
$
1,557

 
$
14

 
$
1,576

 
in millions
 
September 27, 2014
Level 1

 
Level 2 (a)

 
Level 3 (b)

 
Total

Cash and cash equivalents
$
79

 
$
—

 
$
—

 
$
79

Fixed Income Securities:
 
 
 
 
 
 
 
Bond and fixed income funds
—

 
377

 
—

 
377

Corporate bonds
—

 
680

 
—

 
680

Government and municipal bonds
—

 
253

 
—

 
253

Mortgage backed securities
—

 
—

 
7

 
7

Total fixed income securities
—

 
1,310

 
7

 
1,317

Equity Securities:
 
 
 
 
 
 
 
United States securities funds
—

 
84

 
—

 
84

Non- United States securities funds
—

 
101

 
—

 
101

Commodity funds
—

 
14

 
—

 
14

Global real estate funds
—

 
33

 
—

 
33

Total equity securities
—

 
232

 
—

 
232

Other
—

 
7

 
—

 
7

Insurance contract at contract value
—

 
—

 
15

 
15

Total plan assets
$
79

 
$
1,549

 
$
22

 
$
1,650

(a)
We classify our investments in United States government, United States agency, fixed income funds, bond funds, corporate bonds, and other 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. Funds are valued using the net asset value (NAV) provided by the trustee, which is a practical expedient to estimating fair value. The NAV is based on the fair value of the underlying investments within the funds and is determined daily.
(b)
We classify certain mortgage-backed, asset-backed and insurance contracts 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. The insurance contracts are valued using the plan’s own assumptions about the assumptions market participants would use in pricing the assets based on the best information available, such as investment manager pricing. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated financial statements.
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) is as follows:
 
 
 
 
 
in millions

 
Mortgage backed securities

 
Insurance contract

 
Total

Balance at September 27, 2014
$
7

 
$
15

 
22

Actual return on plan assets:
 
 
 
 


Assets still held at reporting date
—

 
—

 
—

Assets sold during the period
—

 
—

 
—

Purchases, sales and settlements, net
(7
)
 
(1
)
 
(8
)
Transfers in and/or out of Level 3
—

 
—

 
—

Balance at October 3, 2015
$
—

 
$
14

 
$
14


Contributions
Our policy is to fund at least the minimum contribution required to meet applicable federal employee benefit and local tax laws. In our sole discretion, we may from time to time fund additional amounts. Expected contributions to pension plans for fiscal 2016 are approximately $63 million. For fiscal 2015, 2014 and 2013, we funded $14 million, $9 million and $8 million plans, respectively, to pension plans.
Estimated Future Benefit Payments
The following benefit payments are expected to be paid:
 
 
 
 
 
in millions

 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
2016
$
81

 
$
9

 
$
20

2017
83

 
9

 
14

2018
87

 
10

 
10

2019
89

 
10

 
7

2020
92

 
10

 
7

2021-2025
508

 
59

 
33


The above benefit payments for other postretirement benefit plans are not expected to be offset by Medicare Part D subsidies in fiscal 2016 or thereafter.
The above benefit payments do not include anticipated payments for a partial settlement for deferred vested participants within two of our qualified pension plans. Assuming an election rate of 50% and changes to the benefit obligation and accumulated other comprehensive income due to remeasurement, the partial settlement will include approximate payments of $252 million resulting in $2 million of income to be reclassified into earnings. Actual results may differ from estimated amounts.
Multi-Employer Plans
Additionally, we participate in a multi-employer plan that provides defined benefits to certain employees covered by collective bargaining agreements. Such plans are usually administered by a board of trustees composed of the management of the participating companies and labor representatives.
The risks of participating in multiemployer plans are different from single-employer plans. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligation of the plan may be borne by the remaining participating employers. If we stop participating in a plan, we may be required to pay that plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Contributions to the pension funds were not in excess of 5% of the total plan contributions for plan year 2015.
The net pension cost of the plan is equal to the annual contribution determined in accordance with the provisions of negotiated labor contracts. Contributions to the plan were $1 million in fiscal 2015 and 2014. Assets contributed to such plans are not segregated or otherwise restricted to provide benefits only to our employees. The future cost of the plan is dependent on a number of factors including the funded status of the plan and the ability of the other participating companies to meet ongoing funding obligations.
Our participation in this multiemployer plan for fiscal 2015 is outlined below. The EIN/Pension Plan Number column provides the Employer Identification Number (EIN) and the three digit plan number. Unless otherwise noted, the most recent Pension Protection Act ("PPA") zone status available in fiscal 2015 and fiscal 2014 is for the plan's year beginning January 1, 2015, and 2014, respectively. The zone status is based on information that we have received from the plan and is certified by the plan's actuaries. For fiscal 2015, the zone status was updated to a secondary classification, critical and declining, within the red zone. Among other factors, plans in the red zone are generally less than 65 percent funded. Plans that are critical and declining status are projected to have an accumulated funding deficiency. The FIP/RP Status column indicates plans for which a financial improvement plan (FIP) or rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreements to which the plan is subject. There have been no significant changes that affect the comparability of contributions from year to year.
In addition to regular contributions, we could be obligated to pay additional contributions (known as complete or partial withdrawal liabilities) if it has unfunded vested benefits.
 
 
 
PPA Zone Status
 
FIP/RP Status
Contributions (in millions)
 
Surcharge Imposed
 
 
Pension Fund Plan Name
EIN/Pension Plan Number
 
2015
 
2014
 
Implemented
2015
2014
 
2015
 
Expiration Date of Collective Bargaining Agreement(a)
Bakery and Confectionery Union and Industry International Pension Fund
52-6118572/001
 
Red
 
Red
 
Nov 2012
 
$1
$1
 
10%
 
October 2015

(a) Renewal negotiations are in progress.
Comprehensive Income (Loss)
Comprehensive Income (Loss)
COMPREHENSIVE INCOME (LOSS)
The components of accumulated other comprehensive loss are as follows:
 
 
 
in millions

 
2015

 
2014

Accumulated other comprehensive income (loss), net of taxes:
 
 
 
Unrealized net hedging loss
$
(1
)
 
$
(3
)
Unrealized net gain on investments
1

 
2

Currency translation adjustment
(63
)
 
(99
)
Postretirement benefits reserve adjustments
(27
)
 
(47
)
Total accumulated other comprehensive loss
$
(90
)
 
$
(147
)

The before and after tax changes in the components of other comprehensive income (loss) are as follows:
 
 
 
 
 
 
 
 
 
 
in millions
 
 
 
2015
 
2014
 
2013
 
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to Cost of Sales
 
$
7

$
(3
)
$
4

 
$
10

$
(4
)
$
6

 
$
5

$
(2
)
$
3

(Gain) loss reclassified to Other Income/Expense
 
—

—

—

 
—

—

—

 
4

(2
)
2

Unrealized gain (loss)
 
(4
)
2

(2
)
 
(8
)
3

(5
)
 
(31
)
12

(19
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to Other Income/Expense
 
(21
)
8

(13
)
 
8

(2
)
6

 
(1
)
—

(1
)
Unrealized gain (loss)
 
21

(9
)
12

 
(2
)
—

(2
)
 
(4
)
2

(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
 
 
 
 
Translation loss reclassified to Cost of Sales (a)
 
115

(8
)
107

 
—

—

—

 
(19
)
(1
)
(20
)
Translation adjustment
 
(86
)
15

(71
)
 
(32
)
2

(30
)
 
(20
)
3

(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits
 
32

(12
)
20

 
(23
)
9

(14
)
 
15

(6
)
9

Total Other Comprehensive Income (Loss)
 
$
64

$
(7
)
$
57

 
$
(47
)
$
8

$
(39
)
 
$
(51
)
$
6

$
(45
)
(a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 3: Acquisitions and Dispositions.
Segment Reporting
Segment Reporting
SEGMENT REPORTING
We operate in four reportable segments: Chicken, Beef, Pork and Prepared Foods. We measure segment profit as operating income (loss).
Following the sale of our Mexico and Brazil operations in fiscal 2015 (see Note 3: Acquisitions and Dispositions), we began reporting our international operation, which was previously reported as the International segment, in Other. Other now includes our foreign chicken production operations in China and India and third-party merger and integration costs. All periods presented have been reclassified to reflect this change. Chicken, Beef, Pork and Prepared Foods 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. In fiscal 2014, we completed the acquisition of Hillshire Brands, a manufacturer and marketer of branded, convenient foods which includes brands such as Jimmy Dean®, Ball Park®, Hillshire Farm®, State Fair®, Van's®, Sara Lee® and Chef Pierre® pies as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island® premium jerky. Hillshire Brands' results from operations are reported in the Prepared Foods segment from the date of acquisition. Products primarily include pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, flour and corn tortilla products, desserts, 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.
We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs of $47 million and $59 million in fiscal 2015 and 2014, respectively, which are included in Other. Assets and additions to property, plant and equipment relating to corporate activities remain in Other. In addition, at September 27, 2014, we included $4.8 billion of goodwill associated with our acquisition of Hillshire Brands in Other and we completed the allocation of goodwill to our segments in fiscal 2015. See Note 6: Goodwill and Intangible Assets for further description regarding the allocation of goodwill. The results from Dynamic Fuels are also included in Other in fiscal 2014 and fiscal 2013.
Information on segments and a reconciliation to income from continuing operations before income taxes are follows:
 
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other

 
Intersegment
Sales

 
Consolidated

Fiscal 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,390

 
$
17,236

 
$
5,262

 
$
7,822

 
$
879

 
$
(1,216
)
 
$
41,373

Operating Income (Loss)
1,366

 
(66
)
 
380

 
588

 
(99
)
 
 
 
2,169

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
248

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,921

Depreciation and amortization
272

 
97

 
31

 
280

 
21

 
 
 
701

Total Assets
5,731

 
3,009

 
927

 
12,006

 
1,331

 
 
 
23,004

Additions to property, plant and equipment
405

 
113

 
50

 
167

 
119

 
 
 
854

Fiscal 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,116

 
$
16,177

 
$
6,304

 
$
3,927

 
$
1,381

 
$
(1,325
)
 
$
37,580

Operating Income (Loss)
883

 
347

 
455

 
(60
)
 
(195
)
 
 
 
1,430

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
178

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,252

Depreciation and amortization
253

 
91

 
33

 
95

 
48

 
 
 
520

Total Assets
4,807

 
3,103

 
965

 
8,608

 
6,473

 
 
 
23,956

Additions to property, plant and equipment
307

 
115

 
36

 
77

 
97

 
 
 
632

Fiscal 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
10,988

 
$
14,400

 
$
5,408

 
$
3,322

 
$
1,370

 
$
(1,114
)
 
$
34,374

Operating Income (Loss)
683

 
296

 
332

 
101

 
(37
)
 
 
 
1,375

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
118

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,257

Depreciation and amortization
253

 
91

 
31

 
67

 
49

 
 
 
491

Total Assets
4,944

 
2,798

 
931

 
1,176

 
2,328

 
 
 
12,177

Additions to property, plant and equipment
253

 
105

 
22

 
87

 
91

 
 
 
558


The Chicken segment had sales of $18 million, $7 million and $16 million for fiscal 2015, 2014 and 2013, respectively, from transactions with other operating segments. The Pork segment had sales of $847 million, $1.0 billion and $872 million for fiscal 2015, 2014 and 2013, respectively, from transactions with other operating segments. The Beef segment had sales of $351 million, $307 million and $226 million for fiscal 2015, 2014 and 2013, respectively, from transactions with other operating segments. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table.
Our largest customer, Wal-Mart Stores, Inc., accounted for 16.8%, 14.6% and 13.0% of consolidated sales in fiscal 2015, 2014 and 2013, respectively. Sales to Wal-Mart Stores, Inc. were included in all the segments. Any extended discontinuance of sales to this customer could, if not replaced, have a material impact on our operations.
The majority of our operations are domiciled in the United States. Approximately 97%, 96% and 96% of sales to external customers for fiscal 2015, 2014 and 2013, respectively, were sourced from the United States. Approximately $17.4 billion of long-lived assets were located in the United States at October 3, 2015, and September 27, 2014. Excluding goodwill and intangible assets, long-lived assets totaled approximately $5.6 billion and $5.4 billion at October 3, 2015, and September 27, 2014, respectively. Approximately $191 million and $324 million of long-lived assets were located in foreign countries, primarily Brazil, China and India, at October 3, 2015, and September 27, 2014, respectively. Excluding goodwill and intangible assets, long-lived assets in foreign countries totaled approximately $165 million and $272 million at October 3, 2015, and September 27, 2014, respectively.
We sell certain products in foreign markets, primarily Brazil, Canada, Central America, China, the European Union, Japan, Mexico, the Middle East, South Korea, and Taiwan. Our export sales from the United States totaled $4.1 billion, $4.7 billion and $4.2 billion for fiscal 2015, 2014 and 2013, respectively. Substantially all of our export sales are facilitated through unaffiliated brokers, marketing associations and foreign sales staffs. Sales of products produced in a country other than the United States were less than 10% of consolidated sales for each of fiscal 2015, 2014 and 2013.
Supplemental Cash Flow Information
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOWS INFORMATION
The following table summarizes cash payments for interest and income taxes:
 
 
 
 
 
in millions

 
2015

 
2014

 
2013

Interest, net of amounts capitalized
$
308

 
$
118

 
$
114

Income taxes, net of refunds
437

 
590

 
310

Commitments And Contingencies
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES
Commitments
We lease equipment, properties and certain farms for which total rentals approximated $165 million, $161 million and $200 million, in fiscal 2015, 2014 and 2013, respectively. Most leases have initial terms of up to seven years, some with varying renewal periods. The most significant obligations assumed under the terms of the leases are the upkeep of the facilities and payments of insurance and property taxes.
Minimum lease commitments under non-cancelable leases at October 3, 2015, were:
 
in millions

2016
$
125

2017
98

2018
72

2019
48

2020
39

2021 and beyond
111

Total
$
493


We guarantee obligations of certain outside third parties, consisting primarily of leases, debt and grower loans, which are substantially collateralized by the underlying assets. Terms of the underlying debt cover periods up to 10 years, and the maximum potential amount of future payments as of October 3, 2015, was $38 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 12 years. The maximum potential amount of the residual value guarantees is $81 million, of which $74 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 October 3, 2015, and September 27, 2014, 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 October 3, 2015, was approximately $310 million. There were no receivables under this program at October 3, 2015 and $4 million at September 27, 2014. These receivables are included, net of allowance for uncollectible amounts, in Accounts Receivable in our Consolidated Balance Sheets. Even though these programs are limited to the net tangible assets of the participating livestock suppliers, we also manage a portion of our credit risk associated with these programs by obtaining security interests in livestock suppliers’ assets. After analyzing residual credit risks and general market conditions, we had no allowance for these programs' estimated uncollectible receivables at October 3, 2015, and September 27, 2014.
Additionally, we enter into future purchase commitments for various items, such as grains, livestock contracts and fixed grower fees. At October 3, 2015, these commitments totaled:
 
in millions

2016
$
1,655

2017
434

2018
278

2019
117

2020
92

2021 and beyond
185

Total
$
2,761


Contingencies
We are involved in various claims and legal proceedings. We routinely assess the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. We record accruals for such matters to the extent that we conclude a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Such accruals are reflected in the Company’s consolidated financial statements. In our opinion, we have made appropriate and adequate accruals for these matters and believe the probability of a material loss beyond the amounts accrued to be remote; however, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the consolidated financial condition or results of operations. Listed below are certain claims made against the Company and/or our subsidiaries for which the potential exposure is considered material to the Company’s consolidated financial statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters.
Below are the details of seven lawsuits involving our beef, pork and prepared foods plants 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 and various 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.
•
Bouaphakeo (f/k/a Sharp), et al. v. Tyson Foods, Inc., N.D. Iowa, February 6, 2007 - A jury trial was held involving 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 appealed the jury's verdict and trial court's award to the Eighth Circuit Court of Appeals. The appellate court affirmed the jury verdict and judgment on August 25, 2014, and we filed a petition for rehearing on September 22, 2014, which was denied. We filed a petition for a writ of certiorari with the United States Supreme Court, which was granted on June 8, 2015. Oral arguments before the Supreme Court occurred on November 10, 2015.
•
Acosta, et al. v Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., D. Nebraska, February 29, 2008 - A bench trial was held involving 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, which represents a tripling of the plaintiffs’ alleged damages. The court denied our post-trial motions, and we appealed to the Eighth Circuit Court of Appeals. On August 26, 2015, the Eighth Circuit reversed the district court’s order and judgment, and the trial court subsequently entered judgment in our favor and dismissed the case.
•
Gomez, et al. v. Tyson Foods, Inc., D. Nebraska, January 16, 2008 - A jury trial involving 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 appealed the jury’s verdict and trial court’s award to the Eighth Circuit Court of Appeals. On August 26, 2015, the Eighth Circuit reversed the jury verdict and judgment, and the trial court subsequently entered judgment in our favor and dismissed the case.
•
Edwards, et al. v. Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., S.D. Iowa, March 20, 2008 - The trial court in this 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.
•
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 - these cases involve our Joslin, Illinois beef plant and are in their preliminary stages.
•
Dozier, Southerland, et al. v. The Hillshire Brands Company, E.D. North Carolina, September 2, 2014 - This case involves our Tarboro, North Carolina prepared foods plant and is in its preliminary stages.
•
Awad, et al. v. Tyson Foods, Inc. and Tyson Fresh Meats, Inc., M.D. Tennessee, February 12, 2015 - This case involves our Goodlettsville, Tennessee case ready beef plant and is in its preliminary stages.
Our subsidiary, The Hillshire Brands Company (formerly named Sara Lee Corporation), is a party to a consolidation of cases filed by individual complainants with the Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission (NLRC) from 1998 through July 1999. The complaint is filed against Aris Philippines, Inc., Sara Lee Corporation, Sara Lee Philippines, Inc., Fashion Accessories Philippines, Inc., and Attorney Cesar C. Cruz (collectively, the “respondents”). The complaint alleges, among other things, that the respondents engaged in unfair labor practices in connection with the termination of manufacturing operations in the Philippines by Aris Philippines, Inc., a former subsidiary of The Hillshire Brands Company. In 2006, an arbitrator ruled against the respondents and awarded the complainants PHP3,453,664,710 (approximately US$74 million) in damages and fees. The respondents appealed the arbitrator’s ruling, and it was subsequently set aside by the NLRC in December 2006. Subsequent to the NLRC’s decision, the parties filed numerous appeals, motions for reconsideration and petitions for review, certain of which remained outstanding for several years. While various of those appeals, motions and/or petitions were pending, The Hillshire Brands Company, on June 23, 2014, without admitting liability, filed a settlement motion requesting that the Supreme Court of the Philippines order dismissal with prejudice of all claims against it and its predecessors-in-interest in exchange for payments allocated by the court among the complainants in an amount not to exceed PHP342,287,800 (approximately US$7 million).
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
QUARTERLY FINANCIAL DATA (UNAUDITED)
 
 
 
 
in millions, except per share data
 
 
 
First
Quarter

 
Second
Quarter

 
Third
Quarter

 
Fourth
Quarter

2015
 
 
 
 
 
 
 
 
Sales
 
$
10,817

 
$
9,979

 
$
10,071

 
$
10,506

Gross profit
 
956

 
989

 
986

 
986

Operating income
 
509

 
547

 
563

 
550

Net income
 
310

 
311

 
344

 
259

Net income attributable to Tyson
 
309

 
310

 
343

 
258

 
 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
 
Class A Basic
 
$
0.77

 
$
0.78

 
$
0.86

 
$
0.65

Class B Basic
 
$
0.71

 
$
0.71

 
$
0.78

 
$
0.59

Diluted
 
$
0.74

 
$
0.75

 
$
0.83

 
$
0.63

2014
 
 
 
 
 
 
 
 
Sales
 
$
8,761

 
$
9,032

 
$
9,682

 
$
10,105

Gross profit
 
685

 
651

 
637

 
712

Operating income
 
412

 
361

 
351

 
306

Net income
 
252

 
210

 
258

 
136

Net income attributable to Tyson
 
254

 
213

 
260

 
137

 
 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
 
Class A Basic (a)
 
$
0.76

 
$
0.64

 
$
0.75

 
$
0.37

Class B Basic
 
$
0.68

 
$
0.58

 
$
0.68

 
$
0.32

Diluted (a)
 
$
0.72

 
$
0.60

 
$
0.73

 
$
0.35


(a) The sum of the quarterly earnings per share amounts will not equal the total for the year due to the effects of rounding and dilution impact as a result of issuing Class A shares and tangible equity units in the fourth quarter of fiscal 2014.
First quarter fiscal 2015 net income included $19 million pretax expense related to merger and integration, $36 million pretax loss due to costs related to a legacy Hillshire Brands plant fire and a $26 million unrecognized tax benefit gain.
Second quarter fiscal 2015 net income included $14 million pretax expense related to merger and integration and $8 million pretax gain due to insurance proceeds (net of costs) related to a legacy Hillshire Brands plant fire.
Third quarter fiscal 2015 net income included $16 million pretax expense related to merger and integration, $11 million pretax gains due to insurance proceeds (net of costs) related to a legacy Hillshire Brands plant fire and $21 million pretax gains on sale of equity securities.
Fourth quarter fiscal 2015 net income included $8 million pretax expense related to merger and integration, $25 million pretax gains due to insurance proceeds related to a legacy Hillshire Brands plant fire, $169 million pretax China impairment charge, $59 million pretax impairment charges related to our Prepared Foods network optimization, $12 million pretax closure and impairment charges related to the Denison plant closure, $161 million pretax gain on the sale of the Mexico operation and $39 million pretax gain related to our accounting cycle resulting in a 53-week year in fiscal 2015.
Third quarter fiscal 2014 net income included $29 million of pretax expense related to the Hillshire Brands acquisition fees paid to third parties, $49 million of pretax expense related to the closure of three Prepared Foods facilities and a $40 million unrecognized tax benefit gain.
Fourth quarter fiscal 2014 net income included a $42 million pretax impairment and other costs related to the sale of our Brazil operation and Mexico's undistributed earnings tax, $119 million pretax expense related to the Hillshire Brands acquisition, integration and costs associated with our Prepared Foods improvement plan, $40 million pretax expense related to the Hillshire Brands post-closing results, purchase price accounting adjustments and ongoing costs related to a legacy Hillshire Brands plant fire, $27 million pretax expense related to the Hillshire Brands acquisition financing incremental interest cost and a $12 million unrecognized tax benefit gain.
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 $1.25 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2019, 2022, 2024, 2034 and 2044 Notes is permanently released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc. (TFI Parent); TFM Parent; the Non-Guarantor Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor.
Condensed Consolidating Statement of Income and Comprehensive Income for the year ended October 3, 2015
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
897

 
$
22,155

 
$
20,345

 
$
(2,024
)
 
$
41,373

Cost of Sales
26

 
21,675

 
17,774

 
(2,019
)
 
37,456

Gross Profit
871

 
480

 
2,571

 
(5
)
 
3,917

Selling, General and Administrative
128

 
260

 
1,365

 
(5
)
 
1,748

Operating Income
743

 
220

 
1,206

 
—

 
2,169

Other (Income) Expense:

 

 

 

 

Interest expense, net
263

 
2

 
19

 
—

 
284

Other, net
(22
)
 
(2
)
 
(12
)
 
—

 
(36
)
Equity in net earnings of subsidiaries
(925
)
 
(109
)
 
—

 
1,034

 
—

Total Other (Income) Expense
(684
)
 
(109
)
 
7

 
1,034

 
248

Income from Continuing Operations before Income Taxes
1,427

 
329

 
1,199

 
(1,034
)
 
1,921

Income Tax Expense
207

 
72

 
418

 
—

 
697

Income from Continuing Operations
1,220

 
257

 
781

 
(1,034
)
 
1,224

Loss from Discontinued Operation, Net of Tax
—

 
—

 
—

 
—

 
—

Net Income
1,220

 
257

 
781

 
(1,034
)
 
1,224

Less: Net Gain (Loss) Attributable to Noncontrolling Interests
—

 
—

 
4

 
—

 
4

Net Income Attributable to Tyson
$
1,220

 
$
257

 
$
777

 
$
(1,034
)
 
$
1,220

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
1,281

 
$
291

 
$
840

 
$
(1,131
)
 
$
1,281

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

 
—

 
4

 
—

 
4

Comprehensive Income (Loss) Attributable to Tyson
$
1,281

 
$
291

 
$
836

 
$
(1,131
)
 
$
1,277

Condensed Consolidating Statement of Income and Comprehensive Income for the year ended September 27, 2014
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
579

 
$
21,924

 
$
16,926

 
$
(1,849
)
 
$
37,580

Cost of Sales
74

 
20,971

 
15,689

 
(1,839
)
 
34,895

Gross Profit
505

 
953

 
1,237

 
(10
)
 
2,685

Selling, General and Administrative
141

 
240

 
884

 
(10
)
 
1,255

Operating Income
364

 
713

 
353

 
—

 
1,430

Other (Income) Expense:

 

 

 

 

Interest expense, net
63

 
49

 
13

 
—

 
125

Other, net
67

 
(1
)
 
(13
)
 
—

 
53

Equity in net earnings of subsidiaries
(731
)
 
(43
)
 
—

 
774

 
—

Total Other (Income) Expense
(601
)
 
5

 
—

 
774

 
178

Income from Continuing Operations before Income Taxes
965

 
708

 
353

 
(774
)
 
1,252

Income Tax Expense
101

 
227

 
68

 
—

 
396

Income from Continuing Operations
864

 
481

 
285

 
(774
)
 
856

Loss from Discontinued Operation, Net of Tax
—

 
—

 
—

 
—

 
—

Net Income
864

 
481

 
285

 
(774
)
 
856

Less: Net Gain (Loss) Attributable to Noncontrolling Interests
—

 
—

 
(8
)
 
—

 
(8
)
Net Income Attributable to Tyson
$
864

 
$
481

 
$
293

 
$
(774
)
 
$
864

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
817

 
$
449

 
$
243

 
$
(692
)
 
$
817

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

 
—

 
(8
)
 
—

 
(8
)
Comprehensive Income (Loss) Attributable to Tyson
$
817

 
$
449

 
$
251

 
$
(692
)
 
$
825

Condensed Consolidating Statement of Income and Comprehensive Income for the year ended September 28, 2013
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
431

 
$
19,243

 
$
16,120

 
$
(1,420
)
 
$
34,374

Cost of Sales
40

 
18,464

 
14,932

 
(1,420
)
 
32,016

Gross Profit
391

 
779

 
1,188

 
—

 
2,358

Selling, General and Administrative
68

 
201

 
714

 
—

 
983

Operating Income
323

 
578

 
474

 
—

 
1,375

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
36

 
62

 
40

 
—

 
138

Other, net
4

 
(1
)
 
(23
)
 
—

 
(20
)
Equity in net earnings of subsidiaries
(582
)
 
(40
)
 
—

 
622

 
—

Total Other (Income) Expense
(542
)
 
21

 
17

 
622

 
118

Income from Continuing Operations before Income Taxes
865

 
557

 
457

 
(622
)
 
1,257

Income Tax Expense
87

 
172

 
150

 
—

 
409

Income from Continuing Operations
778

 
385

 
307

 
(622
)
 
848

Loss from Discontinued Operation, Net of Tax
—

 
—

 
(70
)
 
—

 
(70
)
Net Income
778

 
385

 
237

 
(622
)
 
778

Less: Net Gain (Loss) Attributable to Noncontrolling Interests
—

 
—

 
—

 
—

 
—

Net Income Attributable to Tyson
$
778

 
$
385

 
$
237

 
$
(622
)
 
$
778

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
733

 
$
380

 
$
212

 
$
(592
)
 
$
733

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

 
—

 
—

 
—

 
—

Comprehensive Income (Loss) Attributable to Tyson
$
733

 
$
380

 
$
212

 
$
(592
)
 
$
733


Condensed Consolidating Balance Sheet as of October 3, 2015
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
12

 
$
676

 
$
—

 
$
688

Accounts receivable, net
—

 
578

 
1,042

 
—

 
1,620

Inventories
1

 
1,009

 
1,868

 
—

 
2,878

Other current assets
43

 
91

 
147

 
(86
)
 
195

Assets held for sale
—

 
—

 
—

 
—

 
—

Total Current Assets
44

 
1,690

 
3,733

 
(86
)
 
5,381

Net Property, Plant and Equipment
26

 
975

 
4,175

 
—

 
5,176

Goodwill
—

 
881

 
5,786

 
—

 
6,667

Intangible Assets
—

 
10

 
5,158

 
—

 
5,168

Other Assets
129

 
146

 
337

 
—

 
612

Investment in Subsidiaries
21,850

 
2,177

 
—

 
(24,027
)
 
—

Total Assets
$
22,049

 
$
5,879

 
$
19,189

 
$
(24,113
)
 
$
23,004

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
710

 
$
1

 
$
22

 
$
(18
)
 
$
715

Accounts payable
28

 
698

 
936

 
—

 
1,662

Other current liabilities
5,930

 
152

 
939

 
(5,863
)
 
1,158

Liabilities held for sale
—

 
—

 
—

 
—

 
—

Total Current Liabilities
6,668

 
851

 
1,897

 
(5,881
)
 
3,535

Long-Term Debt
5,498

 
1

 
511

 
—

 
6,010

Deferred Income Taxes
—

 
98

 
2,351

 
—

 
2,449

Other Liabilities
192

 
118

 
994

 
—

 
1,304

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,691

 
4,811

 
13,421

 
(18,232
)
 
9,691

Noncontrolling Interests
—

 
—

 
15

 
—

 
15

Total Shareholders’ Equity
9,691

 
4,811

 
13,436

 
(18,232
)
 
9,706

Total Liabilities and Shareholders’ Equity
$
22,049

 
$
5,879

 
$
19,189

 
$
(24,113
)
 
$
23,004

Condensed Consolidating Balance Sheet as of September 27, 2014
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
41

 
$
397

 
$
—

 
$
438

Accounts receivable, net
3

 
665

 
1,016

 
—

 
1,684

Inventories
—

 
1,272

 
2,002

 
—

 
3,274

Other current assets
42

 
78

 
379

 
(120
)
 
379

Assets held for sale
3

 
—

 
443

 
—

 
446

Total Current Assets
48

 
2,056

 
4,237

 
(120
)
 
6,221

Net Property, Plant and Equipment
30

 
932

 
4,168

 
—

 
5,130

Goodwill
—

 
881

 
5,825

 
—

 
6,706

Intangible Assets
—

 
15

 
5,261

 
—

 
5,276

Other Assets
204

 
148

 
326

 
(55
)
 
623

Investment in Subsidiaries
20,845

 
2,049

 
—

 
(22,894
)
 
—

Total Assets
$
21,127

 
$
6,081

 
$
19,817

 
$
(23,069
)
 
$
23,956

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
240

 
$
—

 
$
403

 
$
—

 
$
643

Accounts payable
35

 
755

 
1,016

 
—

 
1,806

Other current liabilities
4,718

 
235

 
921

 
(4,667
)
 
1,207

Liabilities held for sale
—

 
—

 
141

 
—

 
141

Total Current Liabilities
4,993

 
990

 
2,481

 
(4,667
)
 
3,797

Long-Term Debt
7,056

 
2

 
532

 
(55
)
 
7,535

Deferred Income Taxes
21

 
96

 
2,333

 
—

 
2,450

Other Liabilities
167

 
125

 
978

 
—

 
1,270

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
8,890

 
4,868

 
13,479

 
(18,347
)
 
8,890

Noncontrolling Interests
—

 
—

 
14

 
—

 
14

Total Shareholders’ Equity
8,890

 
4,868

 
13,493

 
(18,347
)
 
8,904

Total Liabilities and Shareholders’ Equity
$
21,127

 
$
6,081

 
$
19,817

 
$
(23,069
)
 
$
23,956


Condensed Consolidating Statement of Cash Flows for the year ended October 3, 2015
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
274

 
$
476

 
$
1,841

 
$
(21
)
 
$
2,570

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

 
(159
)
 
(695
)
 
—

 
(854
)
(Purchases of)/Proceeds from marketable securities, net
21

 
—

 
(7
)
 
—

 
14

Acquisitions, net of cash acquired
—

 
—

 
—

 
—

 
—

Proceeds from sale of businesses
—

 
—

 
539

 
—

 
539

Other, net
23

 
1

 
7

 
—

 
31

Cash Provided by (Used for) Investing Activities
44

 
(158
)
 
(156
)
 
—

 
(270
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(1,092
)
 
—

 
(402
)
 
—

 
(1,494
)
Proceeds from issuance of common stock, net of issuance costs
—

 
—

 
—

 
—

 
—

Proceeds from issuance of equity component of tangible equity units
—

 
—

 
—

 
—

 
—

Purchases of Tyson Class A common stock
(495
)
 
—

 
—

 
—

 
(495
)
Dividends
(147
)
 
—

 
(21
)
 
21

 
(147
)
Stock options exercised
84

 
—

 
—

 
—

 
84

Other, net
22

 
—

 
(5
)
 
—

 
17

Net change in intercompany balances
1,310

 
(347
)
 
(963
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(318
)
 
(347
)
 
(1,391
)
 
21

 
(2,035
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(15
)
 
—

 
(15
)
Increase (Decrease) in Cash and Cash Equivalents
—

 
(29
)
 
279

 
—

 
250

Cash and Cash Equivalents at Beginning of Year
—

 
41

 
397

 
—

 
438

Cash and Cash Equivalents at End of Period
$
—

 
$
12

 
$
676

 
$
—

 
$
688

Condensed Consolidating Statement of Cash Flows for the year ended September 27, 2014
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
132

 
$
431

 
$
660

 
$
(45
)
 
$
1,178

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(1
)
 
(147
)
 
(484
)
 
—

 
(632
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
15

 
—

 
15

Acquisitions, net of cash acquired
(8,193
)
 
—

 
—

 
—

 
(8,193
)
Proceeds from sale of businesses
—

 
—

 
—

 
—

 
—

Other, net
5

 
2

 
3

 
—

 
10

Cash Provided by (Used for) Investing Activities
(8,189
)
 
(145
)
 
(466
)
 
—

 
(8,800
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
5,154

 
—

 
(12
)
 
—

 
5,142

Proceeds from issuance of common stock, net of issuance costs
873

 
—

 
—

 
—

 
873

Proceeds from issuance of equity component of tangible equity units
1,255

 
—

 
—

 
—

 
1,255

Purchases of Tyson Class A common stock
(295
)
 
—

 
—

 
—

 
(295
)
Dividends
(104
)
 
—

 
(45
)
 
45

 
(104
)
Stock options exercised
67

 
—

 
—

 
—

 
67

Other, net
(22
)
 
—

 
(1
)
 
—

 
(23
)
Net change in intercompany balances
1,129

 
(266
)
 
(863
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
8,057

 
(266
)
 
(921
)
 
45

 
6,915

Effect of Exchange Rate Change on Cash
—

 
—

 
—

 
—

 
—

Increase (Decrease) in Cash and Cash Equivalents
—

 
20

 
(727
)
 
—

 
(707
)
Cash and Cash Equivalents at Beginning of Year
—

 
21

 
1,124

 
—

 
1,145

Cash and Cash Equivalents at End of Period
$
—

 
$
41

 
$
397

 
$
—

 
$
438

Condensed Consolidating Statement of Cash Flows for the year ended September 28, 2013
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
294

 
$
337

 
$
696

 
$
(13
)
 
$
1,314

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(4
)
 
(113
)
 
(441
)
 
—

 
(558
)
(Purchases of)/Proceeds from marketable securities, net
—

 
(13
)
 
(5
)
 
—

 
(18
)
Acquisitions, net of cash acquired
—

 
—

 
(106
)
 
—

 
(106
)
Proceeds from sale of businesses
—

 
—

 
—

 
—

 
—

Other, net
—

 
3

 
36

 
—

 
39

Cash Provided by (Used for) Investing Activities
(4
)
 
(123
)
 
(516
)
 
—

 
(643
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
5

 
—

 
(28
)
 
—

 
(23
)
Proceeds from issuance of common stock, net of issuance costs
—

 
—

 
—

 
—

 
—

Proceeds from issuance of equity component of tangible equity units
—

 
—

 
—

 
—

 
—

Purchases of Tyson Class A common stock
(614
)
 
—

 
—

 
—

 
(614
)
Dividends
(104
)
 
—

 
(13
)
 
13

 
(104
)
Stock options exercised
123

 
—

 
—

 
—

 
123

Other, net
18

 
—

 
—

 
—

 
18

Net change in intercompany balances
281

 
(202
)
 
(79
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(291
)
 
(202
)
 
(120
)
 
13

 
(600
)
Effect of Exchange Rate Change on Cash
—

 
—

 
3

 
—

 
3

Increase (Decrease) in Cash and Cash Equivalents
(1
)
 
12

 
63

 
—

 
74

Cash and Cash Equivalents at Beginning of Year
1

 
9

 
1,061

 
—

 
1,071

Cash and Cash Equivalents at End of Period
$
—

 
$
21

 
$
1,124

 
$
—

 
$
1,145

Valuation And Qualifying Accounts
Valuation And Qualifying Accounts
FINANCIAL STATEMENT SCHEDULE
TYSON FOODS, INC.
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
Three Years Ended October 3, 2015
 
 
 
 
 
 
 
 
 
 
in millions

 
 
 
 
Additions
 
 
 
 
 
 
Balance at
Beginning
of Period

 
Charged to
Costs and
Expenses

 
Charged to
Other Accounts

 
(Deductions)

 
Balance at End
of Period

Allowance for Doubtful Accounts:
 
 
 
 
 
 
 
 
 
 
2015
 
$
34

 
$
1

 
$
—

 
$
(8
)
 
$
27

2014
 
46

 
5

 
—

 
(17
)
 
34

2013
 
33

 
17

 
—

 
(4
)
 
46

Inventory Lower of Cost or Market Allowance:
 
 
 
 
 
 
 
 
 
 
2015
 
$
7

 
$
99

 
$
—

 
$
(48
)
 
$
58

2014
 
16

 
14

 
—

 
(23
)
 
7

2013
 
24

 
49

 
—

 
(57
)
 
16

Valuation Allowance on Deferred Tax Assets:
 
 
 
 
 
 
 
 
 
 
2015
 
$
51

 
$
21

 
$
—

 
$
(4
)
 
$
68

2014
 
77

 
26

 
13

 
(65
)
 
51

2013
 
78

 
8

 
—

 
(9
)
 
77

Business And Summary Of Significant Accounting Policies (Policy)
Description Of Business 
Description of Business: Tyson Foods, Inc. (collectively, “Company,” “we,” “us” or “our”), founded in 1935 with world headquarters in Springdale, Arkansas, is one of the world's largest food companies with leading brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee®, Ball Park®, Wright®, Aidells® and State Fair®. We are a recognized market leader in chicken, beef and pork as well as prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, tortillas and desserts.
Consolidation 
Consolidation: The consolidated financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Fiscal Year 
Fiscal Year: We utilize a 52- or 53-week accounting period ending on the Saturday closest to September 30. The Company’s accounting cycle resulted in a 53-week year for fiscal 2015 and a 52-week year for fiscal 2014 and 2013.
Cash And Cash Equivalents 
Cash and Cash Equivalents: Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as part of our cash management activity. The carrying values of these assets approximate their fair values. We primarily utilize a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts where funds are moved to, and several zero-balance disbursement accounts for funding payroll, accounts payable, livestock procurement, grower payments, etc. As a result of our cash management system, checks issued, but not presented to the banks for payment, may result in negative book cash balances. These negative book cash balances are included in accounts payable and other current liabilities. At October 3, 2015, and September 27, 2014, checks outstanding in excess of related book cash balances totaled approximately $257 million and $298 million, respectively.
Accounts Receivable 
Accounts Receivable: We record accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, level of past due accounts and relationships with and economic status of our customers. At October 3, 2015, and September 27, 2014, our allowance for uncollectible accounts was $27 million and $34 million, respectively. We generally do not have collateral for our receivables, but we do periodically evaluate the credit worthiness of our customers.
Inventories 
Inventories: Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
In fiscal 2015, 63% of the cost of inventories was determined by the first-in, first-out ("FIFO") method as compared to 66% in fiscal 2014. The remaining cost of inventories for both years is determined by the weighted-average method.
Property, Plant And Equipment 
Property, Plant and Equipment: Property, plant and equipment are stated at cost and generally depreciated on a straight-line method over the estimated lives for buildings and leasehold improvements of 10 to 33 years, machinery and equipment of three to 12 years and land improvements and other of three to 20 years. Major repairs and maintenance costs that significantly extend the useful life of the related assets are capitalized. Normal repairs and maintenance costs are charged to operations.
We review the carrying value of long-lived assets at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest, taxes, depreciation and amortization. We measure impairment as the excess of carrying value over the fair value of an asset. The fair value of an asset is measured using discounted cash flows including market participant assumptions of future operating results and discount rates.
Goodwill And Other Intangible Assets 
Goodwill and Intangible Assets: Definite life intangibles are initially recorded at fair value and amortized over the estimated period of benefit, which is generally based on the straight-line method over 20 years or less. Amortization expense is generally recognized in selling, general, and administrative expense. We review the carrying value of definite life intangibles at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest, taxes, depreciation and amortization. We measure impairment as the excess of carrying value over the fair value of the definite life intangible asset. We use various valuation techniques to estimate fair value, with the primary techniques being discounted cash flows, relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
Goodwill and indefinite life intangible assets are initially recorded at fair value and not amortized, but are reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, the fair value of the reporting unit may be more likely than not less than carrying amount, or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test.
The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the quantitative impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied fair value of goodwill exceeds the carrying amount, then goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was determined as the exit price a market participant would pay for the same business). We have elected to make the first day of the fourth quarter the annual impairment assessment date for goodwill and indefinite life intangible assets.
We estimate the fair value of our reporting units using a discounted cash flow analysis, which uses significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. This analysis requires us to make various judgmental estimates and assumptions about sales, operating margins, growth rates and discount factors and is believed to reflect market participant views which would exist in an exit transaction. Generally, we utilize normalized operating margin assumptions based on future expectations and operating margins historically realized in the reporting units' industries. Some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management, including interest rates, cost of capital, tax rates and credit ratings. While we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If our actual results are not consistent with our estimates and assumptions used to calculate fair value, we may be required to perform the second step of the quantitative test in future years, which could result in material impairments of our goodwill.
The discount rate used in our annual goodwill impairment test decreased to 6.8% in fiscal 2015 from 7.9% in fiscal 2014. The discount rate used in our indefinite life intangible test was 8.0% in fiscal 2015. We did not have material indefinite life intangible assets prior to the acquisition of Hillshire Brands in August 2014.
During fiscal 2015, 2014 and 2013, all of our material reporting units that underwent a quantitative test passed the first step of the goodwill impairment analysis and therefore, the second step was not necessary. In fiscal 2015, we recorded a $23 million full impairment of an immaterial reporting unit’s goodwill.
For our indefinite life intangible assets, a qualitative assessment can also be performed to determine whether the existence of events and circumstances indicates it is more likely than not an intangible asset is impaired. Similar to goodwill, we can also elect to forgo the qualitative test for indefinite life intangible assets and perform the quantitative test. Upon performing the quantitative test, if the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
The fair value of our indefinite life intangible assets is calculated principally using relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy, and is believed to reflect market participant views which would exist in an exit transaction. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
Investments 
Investments: We have investments in joint ventures and other entities. We generally use the cost method of accounting when our voting interests are less than 20 percent. We use the equity method of accounting when our voting interests are in excess of 20 percent and we do not have a controlling interest or a variable interest in which we are the primary beneficiary. Investments in joint ventures and other entities are reported in the Consolidated Balance Sheets in Other Assets.
We also have investments in marketable debt securities. We have determined all of our marketable debt securities are available-for-sale investments. These investments are reported at fair value based on quoted market prices as of the balance sheet date, with unrealized gains and losses, net of tax, recorded in other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is recorded in interest income. The cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of debt securities and declines in value judged to be other than temporary are recorded on a net basis in other income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.
Accrued Self-Insurance 
Accrued Self-Insurance: We use a combination of insurance and self-insurance mechanisms in an effort to mitigate the potential liabilities for health and welfare, workers’ compensation, auto liability and general liability risks. Liabilities associated with our risks retained are estimated, in part, by considering claims experience, demographic factors, severity factors and other actuarial assumptions.
Defined Benefit Plans 
Defined Benefit Plans: We recognize the funded status of defined pension and postretirement plans in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of the plan assets and the benefit obligation. We measure our plan assets and liabilities at the end of our fiscal year. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any other defined benefit postretirement plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement benefit obligation. Any overfunded status is recognized as an asset and any underfunded status is recognized as a liability. Any transitional asset/liability, prior service cost or actuarial gain/loss that has not yet been recognized as a component of net periodic cost is recognized in accumulated other comprehensive income. Accumulated other comprehensive income will be adjusted as these amounts are subsequently recognized as a component of net periodic benefit costs in future periods.
Financial Instruments 
Financial Instruments: We purchase certain commodities, such as grains and livestock in the course of normal operations. As part of our commodity risk management activities, we use derivative financial instruments, primarily futures and options, to reduce our exposure to various market risks related to these purchases, as well as to changes in foreign currency exchange rates. Contract terms of a financial instrument qualifying as a hedge instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. Contracts designated and highly effective at meeting risk reduction and correlation criteria are recorded using hedge accounting. If a derivative instrument is accounted for as a hedge, changes in the fair value of the instrument will be offset either against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is immediately recognized in earnings as a component of cost of sales. Instruments we hold as part of our risk management activities that do not meet the criteria for hedge accounting are marked to fair value with unrealized gains or losses reported currently in earnings. Changes in market value of derivatives used in our risk management activities relating to forward sales contracts are recorded in sales, while changes surrounding inventories on hand or anticipated purchases of inventories or supplies are recorded in cost of sales. We generally do not hedge anticipated transactions beyond 18 months.
Revenue Recognition 
Revenue Recognition: We recognize revenue when title and risk of loss are transferred to customers, which is generally on delivery based on terms of sale. Revenue is recognized as the net amount estimated to be received after deducting estimated amounts for discounts, trade allowances and product returns.
Litigation Reserves 
Litigation Reserves: There are a variety of legal proceedings pending or threatened against us. Accruals are recorded when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated based on current law, progress of each case, opinions and views of legal counsel and other advisers, our experience in similar matters and intended response to the litigation. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment efforts progress or additional information becomes available. We expense amounts for administering or litigating claims as incurred. Accruals for legal proceedings are included in Other current liabilities in the Consolidated Balance Sheets
Freight Expense 
Freight Expense: Freight expense associated with products shipped to customers is recognized in cost of sales.
Advertising And Promotion Expenses 
Advertising and Promotion Expenses: Advertising and promotion expenses are charged to operations in the period incurred. Customer incentive and trade promotion activities are recorded as a reduction to sales based on amounts estimated as being due to customers, based primarily on historical utilization and redemption rates, while other advertising and promotional activities are recorded as selling, general and administrative expenses. Advertising and promotion expenses for fiscal 2015, 2014 and 2013 were $966 million, $641 million and $555 million, respectively.
Research And Development 
Research and Development: Research and development costs are expensed as incurred. Research and development costs totaled $75 million, $52 million and $50 million in fiscal 2015, 2014 and 2013, respectively.
Use Of Estimates 
Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Reclassification 
Reclassification: We reclassified Share-based compensation expense, which was previously included in Other, net within the cash flows from operating activities in the Consolidated Statements of Cash Flows to conform to the current period presentation.
Business And Summary Of Significant Accounting Policies (Tables)
Schedule of Inventory, Current 
The following table reflects the major components of inventory at October 3, 2015, and September 27, 2014:
 
 
 
in millions

 
2015

 
2014

Processed products
$
1,631

 
$
1,794

Livestock
831

 
1,066

Supplies and other
416

 
414

Total inventory
$
2,878

 
$
3,274

Other Current Liabilities 
Other Current Liabilities: Other current liabilities at October 3, 2015, and September 27, 2014, include:
 
in millions
 
 
2015

 
2014

Accrued salaries, wages and benefits
$
478

 
$
490

Accrued marketing, advertising and promotion expense
192

 
185

Other
488

 
532

Total other current liabilities
$
1,158

 
$
1,207

Acquisitions and Dispositions (Tables)
Schedule of Business Acquisitions, by Acquisition [Table Text Block] 
The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. The purchase price was allocated based on information available at the acquisition date. During fiscal 2015, we recorded measurement period adjustments, which reduced goodwill by $14 million, after obtaining additional information regarding, among other things, asset valuations and liabilities assumed. The amount was not considered material and therefore prior periods have not been revised. The purchase price allocation was finalized during the fourth quarter of fiscal 2015.
 
in millions
 
Cash and cash equivalents
 
$
72

Accounts receivable
 
236

Inventories
 
414

Other current assets
 
343

Property, Plant and Equipment
 
1,301

Goodwill
 
4,790

Intangible Assets
 
5,141

Other Assets
 
64

Accounts payable
 
(347
)
Other current liabilities
 
(327
)
Long-Term Debt
 
(869
)
Deferred Income Taxes
 
(2,074
)
Other Liabilities
 
(500
)
Net asset acquired
 
$
8,244

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] 
The fair value of identifiable intangible assets at the acquisition date is as follows:
 
 
 
 
 
 
in millions

Intangible Asset Category
 
Type
 
Life in Years
 
Fair Value
Brands & trademarks
 
Non-amortizable
 
Indefinite
 
$
4,062

Brands & trademarks
 
Amortizable
 
20 years
 
532

Customer relationships
 
Amortizable
 
Weighted average life of 16 years
 
541

Non-compete agreements
 
Amortizable
 
1 year
 
6

Total identifiable intangible assets
 
 
 
 
 
$
5,141

Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] 
The fair value of identifiable intangible assets at the acquisition date is as follows:
 
 
 
 
 
 
in millions

Intangible Asset Category
 
Type
 
Life in Years
 
Fair Value
Brands & trademarks
 
Non-amortizable
 
Indefinite
 
$
4,062

Brands & trademarks
 
Amortizable
 
20 years
 
532

Customer relationships
 
Amortizable
 
Weighted average life of 16 years
 
541

Non-compete agreements
 
Amortizable
 
1 year
 
6

Total identifiable intangible assets
 
 
 
 
 
$
5,141

Business Acquisition, Pro Forma Information [Table Text Block] 
These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor is it necessarily an indication of future operating results.
 
in millions (unaudited)
 
 
2014

 
2013

Pro forma sales
$
41,311

 
$
38,195

Pro forma net income from continuing operations attributable to Tyson
1,047

 
655

Pro forma net income per diluted share from continuing operations attributable to Tyson
$
2.50

 
$
1.52

Summary of Net Assets and Liabilities Held for Sale 
The following table summarizes the net assets and liabilities held for sale:
 
in millions

 
2014

Assets held for sale:
 
Accounts receivable, net
$
74

Inventories
141

Other current assets
72

Net property, plant and equipment
132

Goodwill
16

Other assets
11

Total assets held for sale
$
446

Liabilities held for sale:
 
Current debt
$
32

Accounts payable
61

Other current liabilities
27

Long-term debt
9

Deferred income taxes
12

Total liabilities held for sale
$
141

The following is a summary of the discontinued operation's results:
 
 
 
 
 
 
in millions

 
 
2015

 
2014

 
2013

Sales
 
$
—

 
$
—

 
$
108

 
 
 
 
 
 
 
Pretax loss
 
—

 
—

 
(68
)
Income tax expense
 
—

 
—

 
2

Loss from discontinued operation, net of tax
 
$
—

 
$
—

 
$
(70
)
Discontinued Operation (Tables)
Summary of Discontinued Operation's Results
The following table summarizes the net assets and liabilities held for sale:
 
in millions

 
2014

Assets held for sale:
 
Accounts receivable, net
$
74

Inventories
141

Other current assets
72

Net property, plant and equipment
132

Goodwill
16

Other assets
11

Total assets held for sale
$
446

Liabilities held for sale:
 
Current debt
$
32

Accounts payable
61

Other current liabilities
27

Long-term debt
9

Deferred income taxes
12

Total liabilities held for sale
$
141

The following is a summary of the discontinued operation's results:
 
 
 
 
 
 
in millions

 
 
2015

 
2014

 
2013

Sales
 
$
—

 
$
—

 
$
108

 
 
 
 
 
 
 
Pretax loss
 
—

 
—

 
(68
)
Income tax expense
 
—

 
—

 
2

Loss from discontinued operation, net of tax
 
$
—

 
$
—

 
$
(70
)
Property, Plant And Equipment (Tables)
Schedule Of Property, Plant And Equipment And Accumulated Depreciation
The following table reflects major categories of property, plant and equipment and accumulated depreciation at October 3, 2015, and September 27, 2014:
 
in millions
 
 
2015

 
2014

Land
$
122

 
$
126

Building and leasehold improvements
3,581

 
3,501

Machinery and equipment
6,452

 
6,144

Land improvements and other
286

 
276

Buildings and equipment under construction
375

 
334

 
10,816

 
10,381

Less accumulated depreciation
5,640

 
5,251

Net property, plant and equipment
$
5,176

 
$
5,130

Goodwill And Other Intangible Assets (Tables)
Schedule Of Goodwill Activity 
The following table reflects goodwill activity for fiscal 2015 and 2014:
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other(a)

 
Unallocated

 
Consolidated

Balance at September 28, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
908

 
$
1,123

 
$
317

 
$
75

 
$
68

 
$
—

 
$
2,491

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(29
)
 
—

 
(589
)
 
908

 
563

 
317

 
75

 
39

 
—

 
1,902

Fiscal 2014 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition
—

 
—

 
—

 
18

 
5

 
4,804

 
4,827

Reclass to assets held for sale
—

 
—

 
—

 
—

 
(16
)
 
—

 
(16
)
Impairment losses
—

 
—

 
—

 
—

 
(5
)
 
—

 
(5
)
Currency translation and other
(1
)
 
—

 
—

 
(1
)
 
—

 
—

 
(2
)
Balance at September 27, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
907

 
1,123

 
317

 
92

 
57

 
4,804

 
7,300

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(34
)
 
—

 
(594
)
 
$
907

 
$
563

 
$
317

 
$
92

 
$
23

 
$
4,804

 
$
6,706

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2015 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Measurement period adjustments
—

 
—

 
—

 
—

 
—

 
(14
)
 
(14
)
Allocation of acquired goodwill
658

 
113

 
106

 
3,913

 
—

 
(4,790
)
 
—

Impairment losses
—

 
—

 
—

 
—

 
(23
)
 
—

 
(23
)
Currency translation and other
(2
)
 
—

 
—

 
—

 
—

 
—

 
(2
)
Balance at October 3, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,563

 
1,236

 
423

 
4,005

 
57

 
—

 
7,284

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(57
)
 
—

 
(617
)
 
$
1,563

 
$
676

 
$
423

 
$
4,005

 
$
—

 
$
—

 
$
6,667


(a) Other included the goodwill from our international chicken operation.
Schedule Of Other Intangible Assets By Type 
The following table reflects intangible assets by type at October 3, 2015, and September 27, 2014:
in millions
 
 
2015

 
2014

Amortizable intangible assets:
 
 
 
Brands and trademarks
$
594

 
$
611

Customer relationships
564

 
570

Patents, intellectual property and other
115

 
136

Non-compete agreements
—

 
6

Land use rights
9

 
8

  Total gross amortizable intangible assets
$
1,282

 
$
1,331

     Less accumulated amortization
192

 
133

  Total net amortizable intangible assets
$
1,090

 
$
1,198

Brands and trademarks not subject to amortization
4,078

 
4,078

  Total intangible assets
$
5,168

 
$
5,276

Debt (Tables)
Schedule Of Major Components Of Debt
The following table reflects major components of debt as of October 3, 2015, and September 27, 2014:
 
 
 
in millions

 
2015

 
2014

Revolving credit facility
$
—

 
$
—

Senior notes:
 
 
 
2.75% Senior notes due September 2015 (2015 Notes)
—

 
407

6.60% Senior notes due April 2016
638

 
638

7.00% Notes due May 2018
120

 
120

2.65% Notes due August 2019
1,000

 
1,000

4.10% Notes due September 2020
285

 
287

4.50% Senior notes due June 2022
1,000

 
1,000

3.95% Notes due August 2024
1,250

 
1,250

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032
163

 
164

4.88% Notes due August 2034
500

 
500

5.15% Notes due August 2044
500

 
500

Discount on senior notes
(10
)
 
(12
)
Term loans:
 
 
 
3-year tranche A
—

 
1,172

3-year tranche B (1.31% at 10/3/2015)
500

 
—

5-year tranche A
—

 
353

5-year tranche B (1.69% at 10/3/2015)
552

 
552

Amortizing Notes - Tangible Equity Units (see Note 8: Equity)
140

 
205

Other
69

 
24

Total debt
6,725

 
8,178

Less current debt
715

 
643

Total long-term debt
$
6,010

 
$
7,535

Equity (Tables)
Schedule of Share Repurchases 
A summary of cumulative share repurchases of our Class A Stock is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
October 3, 2015
 
September 27, 2014
 
September 28, 2013
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
11.0

 
$
455

 
7.1

 
$
250

 
21.1

 
$
550

To fund certain obligations under equity compensation plans
 
0.9

 
40

 
1.2

 
45

 
2.8

 
64

Total share repurchases
 
11.9

 
$
495

 
8.3

 
$
295

 
23.9

 
$
614

Schedule of Tangible Equity Units 
The aggregate values assigned upon issuance of each component of the TEU's, based on the relative fair value of the respective components of each TEU, were as follows:
 
 
 
in millions, except price per TEU
 
Equity Component
 
Debt Component
 
Total
Price per TEU
$
43.17

 
$
6.83

 
$
50.00

Gross Proceeds
1,295

 
205

 
1,500

Issuance cost
(40
)
 
(6
)
 
(46
)
Net proceeds
$
1,255

 
$
199

 
$
1,454

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

 
2015

 
2014

 
2013

Federal
$
564

 
$
325

 
$
341

State
89

 
67

 
38

Foreign
44

 
4

 
30

 
$
697

 
$
396

 
$
409

 
 
 
 
 
 
Current
$
659

 
$
501

 
$
421

Deferred
38

 
(105
)
 
(12
)
 
$
697

 
$
396

 
$
409

Schedule Of Reasons For Differences Between Statutory Federal Tax Rate And Effective Income Tax Rate 
The reasons for the difference between the statutory federal income tax rate and our effective income tax rate from continuing operations are as follows:
 
2015

 
2014

 
2013

Federal income tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes
3.1

 
2.8

 
2.4

Unrecognized tax benefits, net
(1.8
)
 
(4.7
)
 
(0.2
)
Domestic production deduction
(3.7
)
 
(4.0
)
 
(3.2
)
Foreign rate differences and valuation allowances
3.8

 
2.8

 
0.3

Other
(0.1
)
 
(0.3
)
 
(1.7
)
 
36.3
 %
 
31.6
 %
 
32.6
 %
Schedule Of Tax Effects Of Major Items Recorded As Deferred Tax Assets And Liabilities 
The tax effects of major items recorded as deferred tax assets and liabilities as of October 3, 2015, and September 27, 2014, are as follows:
 
 
 
 
 
 
 
in millions

 
2015
 
2014
 
Deferred Tax
 
Deferred Tax
 
Assets

 
Liabilities

 
Assets

 
Liabilities

Property, plant and equipment
$
—

 
$
783

 
$
—

 
$
732

Intangible assets
—

 
2,000

 
—

 
2,031

Accrued expenses
439

 
—

 
474

 
—

Net operating loss and other carryforwards
97

 
—

 
96

 
—

Other
122

 
238

 
125

 
269

 
$
658

 
$
3,021

 
$
695

 
$
3,032

Valuation allowance
$
(68
)
 
 
 
$
(51
)
 
 
Net deferred tax liability
 
 
$
2,431

 
 
 
$
2,388

Schedule Of Activity Related To Gross Unrecognized Tax Benefits 
The following table summarizes the activity related to our gross unrecognized tax benefits at October 3, 2015, September 27, 2014, and September 28, 2013:
 
 
 
 
 
in millions

 
2015

 
2014

 
2013

Balance as of the beginning of the year
$
272

 
$
175

 
$
168

Increases related to current year tax positions
78

 
11

 
3

Increases related to prior year tax positions
11

 
17

 
15

Change related to Hillshire Brands balances
—

 
136

 
—

Reductions related to prior year tax positions
(18
)
 
(20
)
 
(6
)
Reductions related to settlements
—

 
(1
)
 
(2
)
Reductions related to expirations of statute of limitations
(37
)
 
(46
)
 
(3
)
Balance as of the end of the year
$
306

 
$
272

 
$
175

Earnings Per Share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:
 
in millions, except per share data
 
 
2015

 
2014

 
2013

Numerator:
 
 
 
 
 
Income from continuing operations
$
1,224

 
$
856

 
$
848

Less: Net income (loss) attributable to noncontrolling interests
4

 
(8
)
 
—

Net income from continuing operations attributable to Tyson
1,220

 
864

 
848

Less dividends declared:
 
 
 
 
 
Class A
129

 
94

 
87

Class B
26

 
21

 
19

Undistributed earnings
$
1,065

 
$
749

 
$
742

 
 
 
 
 
 
Class A undistributed earnings
$
896

 
$
612

 
$
606

Class B undistributed earnings
169

 
137

 
136

Total undistributed earnings
$
1,065

 
$
749

 
$
742

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Class A weighted average shares
335

 
284

 
282

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

 
70

 
70

Effect of dilutive securities:
 
 
 
 
 
Stock options and restricted stock
5

 
5

 
5

Tangible Equity Units
3

 
1

 
—

Convertible 2013 Notes
—

 
—

 
7

Warrants
—

 
4

 
3

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
413

 
364

 
367

 
 
 
 
 
 
Net Income Per Share from Continuing Operations Attributable to Tyson:
 
 
 
 
Class A Basic
$
3.06

 
$
2.48

 
$
2.46

Class B Basic
$
2.79

 
$
2.26

 
$
2.22

Diluted
$
2.95

 
$
2.37

 
$
2.31

 
 
 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
 
 
Class A Basic
$
3.06

 
$
2.48

 
$
2.26

Class B Basic
$
2.79

 
$
2.26

 
$
2.04

Diluted
$
2.95

 
$
2.37

 
$
2.12

Derivative Financial Instruments (Tables)
Schedule Of Notional Amount Of Derivatives 
We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
 
 
 
 
in millions, except soy meal tons
 
 
 
Metric
 
October 3, 2015

 
September 27, 2014

Corn
 
Bushels
 
18

 
—

Soy Meal
 
Tons
 
284,900

 
198,100

Live Cattle
 
Pounds
 
102

 
405

Lean Hogs
 
Pounds
 
166

 
350

Foreign Currency
 
United States dollar
 
$
42

 
$
109

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
The following table sets forth the pretax impact of cash flow hedge derivative instruments in the Consolidated Statements of Income:
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Gain (Loss)
Recognized in OCI
on Derivatives
 
 
Consolidated
Statements of Income
Classification
 
Gain (Loss)
Reclassified from
OCI to Earnings
 
 
2015

 
2014

 
2013

 
 
 
2015

 
2014

 
2013

Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(4
)
 
$
(7
)
 
$
(29
)
 
Cost of Sales
 
$
(7
)
 
$
(10
)
 
$
(5
)
Foreign exchange contracts
—

 
(1
)
 
(2
)
 
Other Income/Expense
 
—

 
—

 
(4
)
Total
$
(4
)
 
$
(8
)
 
$
(31
)
 
 
 
$
(7
)
 
$
(10
)
 
$
(9
)
Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
2015

 
2014

 
2013

Gain (Loss) on forwards
 
Cost of Sales
 
$
17

 
$
(154
)
 
$
21

Gain (Loss) on purchase contract
 
Cost of Sales
 
(17
)
 
154

 
(21
)
Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Statements of Income:
 
 
 
 
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
Gain (Loss)
Recognized
in Earnings
 
 
 
 
 
2015

 
2014

 
2013

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
Sales
 
$
(62
)
 
$
75

 
$
(10
)
Commodity contracts
 
Cost of Sales
 
(33
)
 
(136
)
 
(24
)
Foreign exchange contracts
 
Other Income/Expense
 
(4
)
 
—

 
2

Total
 
 
 
$
(99
)
 
$
(61
)
 
$
(32
)
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

October 3, 2015
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
52

 
$
—

 
$
(35
)
 
$
17

Undesignated
—

 
9

 
—

 
(9
)
 
—

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Non-current
—

 
33

 
60

 
—

 
93

Deferred Compensation Assets
9

 
222

 
—

 
—

 
231

Total Assets
$
9

 
$
317

 
$
61

 
$
(44
)
 
$
343

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
2

 
$
—

 
$
(2
)
 
$
—

Undesignated
—

 
49

 
—

 
(47
)
 
2

Total Liabilities
$
—

 
$
51

 
$
—

 
$
(49
)
 
$
2

 
 
 
 
 
 
 
 
 
 
September 27, 2014
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
17

 
$
—

 
$
(17
)
 
$
—

Undesignated
—

 
42

 
—

 
(33
)
 
9

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
—

 
—

 
1

Non-current
1

 
24

 
67

 
—

 
92

Deferred Compensation Assets
15

 
218

 
—

 
—

 
233

Total Assets
$
16

 
$
302

 
$
67

 
$
(50
)
 
$
335

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
78

 
$
—

 
$
(78
)
 
$
—

Undesignated
—

 
82

 
—

 
(70
)
 
12

Total Liabilities
$
—

 
$
160

 
$
—

 
$
(148
)
 
$
12

(a)
Our derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At October 3, 2015, and September 27, 2014, we had posted with various counterparties $5 million and $98 million, respectively, of cash collateral related to our derivative financial instruments 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

 
October 3, 2015

 
September 27, 2014

Balance at beginning of year
$
67

 
$
65

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
20

 
25

Issuances
—

 
—

Settlements
(26
)
 
(23
)
Balance at end of year
$
61

 
$
67

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

 
$
—

Schedule Of Available For Sale Securities 
 
 
 
 
 
 
 
 
 
in millions
 
 
October 3, 2015
 
September 27, 2014
 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
 
 
Debt Securities:
 
 
 
 
 
 
 
 
 
 
 
United States Treasury and Agency
$
33

 
$
34

 
$
1

 
$
25

 
$
25

 
$
—

Corporate and Asset-Backed
60

 
61

 
1

 
65

 
67

 
2

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock and Warrants (a)
—

 
—

 
—

 
1

 
1

 
—

 
(a)
At October 3, 2015, and September 27, 2014, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of approximately nil and $2 million, respectively.
Schedule Of Fair Value And Carrying Value Of Debt 
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows:
 
 
 
 
 
in millions
 
 
October 3, 2015
 
September 27, 2014
 
Fair
Value

 
Carrying
Value

 
Fair
Value

 
Carrying
Value

Total Debt
$
6,900

 
$
6,725

 
$
8,347

 
$
8,178

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

 
Weighted
Average Exercise
Price Per Share

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

Outstanding, September 27, 2014
13,724,409

 
$
21.30

 
 
 
 
Exercised
(3,900,576
)
 
21.47

 
 
 
 
Forfeited or expired
(177,491
)
 
37.23

 
 
 
 
Granted
5,088,723

 
42.26

 
 
 
 
Outstanding, October 3, 2015
14,735,065

 
28.30

 
7.1
 
$
237

 
 
 
 
 
 
 
 
Exercisable, October 3, 2015
6,789,969

 
$
18.73

 
5.4
 
$
174

Schedule Of Assumptions Of Fair Value Calculation Of Each Year's Grants 
Assumptions as of the grant date used in the fair value calculation of each year’s grants are outlined in the following table.
 
2015

 
2014

 
2013

Expected life (in years)
6.1

 
6.0

 
6.2

Risk-free interest rate
1.6
%
 
1.3
%
 
0.7
%
Expected volatility
26.7
%
 
36.0
%
 
36.8
%
Expected dividend yield
1.0
%
 
1.0
%
 
1.0
%
Schedule Of Summary Of Restricted Stock 
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, September 27, 2014
938,944

 
$
23.18

 
 
 
 
Granted
742,036

 
42.39

 
 
 
 
Dividends
11,431

 
34.99

 
 
 
 
Vested
(520,964
)
 
20.28

 
 
 
 
Forfeited
(63,519
)
 
36.61

 
 
 
 
Nonvested, October 3, 2015
1,107,928

 
$
36.76

 
1.6
 
$
49

Schedule Of Summary Of Performance-Based Shares 
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, September 27, 2014
1,403,603

 
$
26.77

 
 
 
 
Granted
522,746

 
46.16

 
 
 
 
Vested
(25,922
)
 
17.36

 
 
 
 
Forfeited
(65,327
)
 
37.98

 
 
 
 
Nonvested, October 3, 2015
1,835,100

 
$
32.03

 
0.9
 
$
81

Pensions And Other Postretirement Benefits (Tables)
Schedule Of Reconciliation Of Changes In Plans' Benefit Obligations, Assets And Funded Status 
The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at October 3, 2015, and September 27, 2014:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2015

 
2014

 
2015

 
2014

Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
1,849

 
$
86

 
$
182

 
$
85

 
$
163

 
$
71

Service cost
10

 
1

 
8

 
7

 
5

 
2

Interest cost
78

 
10

 
8

 
5

 
7

 
3

Plan amendments
—

 
—

 
—

 
—

 
(60
)
 
—

Plan participants’ contributions
—

 
—

 
—

 
—

 
2

 
1

Actuarial (gain)/loss
(50
)
 
(37
)
 
11

 
15

 
9

 
(8
)
Benefits paid
(102
)
 
(11
)
 
(8
)
 
(3
)
 
(12
)
 
(6
)
Business acquisition
—

 
1,800

 
—

 
73

 
—

 
100

Benefit obligation at end of year
1,785

 
1,849

 
201

 
182

 
114

 
163

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
1,647

 
85

 
3

 
—

 
—

 
—

Actual return on plan assets
25

 
(36
)
 
—

 
—

 
—

 
—

Employer contributions
6

 
6

 
8

 
3

 
10

 
5

Plan participants’ contributions
—

 
—

 
—

 
—

 
2

 
1

Benefits paid
(102
)
 
(11
)
 
(8
)
 
(3
)
 
(12
)
 
(6
)
Business acquisition
—

 
1,603

 
—

 
3

 
—

 
—

Other
—

 
—

 
(3
)
 
—

 
—

 
—

Fair value of plan assets at end of year
1,576

 
1,647

 
—

 
3

 
—

 
—

Funded status
$
(209
)
 
$
(202
)
 
$
(201
)
 
$
(179
)
 
$
(114
)
 
$
(163
)
Schedule Of Amounts Recognized In The Consolidated Balance Sheets 
Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2015

 
2014

 
2015

 
2014

Other current liabilities
$
—

 
$
—

 
$
(9
)
 
$
(5
)
 
$
(20
)
 
$
(7
)
Other liabilities
(209
)
 
(202
)
 
(192
)
 
(174
)
 
(94
)
 
(156
)
Total liabilities
$
(209
)
 
$
(202
)
 
$
(201
)
 
$
(179
)
 
$
(114
)
 
$
(163
)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] 
Amounts recognized in Accumulated Other Comprehensive Income consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2015

 
2014

 
2015

 
2014

Accumulated other comprehensive (income)/loss:
 
 
 
 
 
 
 
 
 
 
 
   Actuarial loss
$
57

 
$
39

 
$
43

 
$
36

 
$
—

 
$
—

   Prior service cost/(credit) (a)
—

 
—

 
—

 
—

 
(59
)
 
(2
)
Total accumulated other comprehensive (income)/loss:
$
57

 
$
39

 
$
43

 
$
36

 
$
(59
)
 
$
(2
)
(a)
The change in prior service cost is primarily attributed to the plan amendments to the other postretirement benefits as noted within the change in benefit obligation with remainder of the change being immaterial.

Schedule Of Plans With Accumulated Benefit Obligations In Excess Of Plan Assets 
Plans with accumulated benefit obligations in excess of plan assets are as follows:
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Qualified
 
Non-Qualified
 
2015

 
2014

 
2015

 
2014

Projected benefit obligation
$
1,781

 
$
1,829

 
$
201

 
$
182

Accumulated benefit obligation
1,781

 
1,829

 
193

 
172

Fair value of plan assets
1,572

 
1,627

 
—

 
3

Schedule Of Components Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans Recognized In The Consolidated Statements Of Income 
Components of net periodic benefit cost for pension and postretirement benefit plans recognized in the Consolidated Statements of Income are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

Service cost
$
10

 
$
1

 
$
—

 
$
8

 
$
7

 
$
5

 
$
5

 
$
2

 
$
2

Interest cost
78

 
10

 
4

 
8

 
5

 
3

 
7

 
3

 
2

Expected return on plan assets
(102
)
 
(13
)
 
(5
)
 
—

 
—

 
—

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
—

 
—

 
1

 
(1
)
 
—

 
(1
)
Recognized actuarial (gain) loss, net
2

 
2

 
4

 
4

 
2

 
3

 
9

 
(8
)
 
7

Recognized settlement (gain) loss
8

 
—

 
—

 
—

 
—

 
—

 
(2
)
 
—

 
—

Net periodic benefit (credit) cost
$
(4
)
 
$
—

 
$
3

 
$
20

 
$
14

 
$
12

 
$
18

 
$
(3
)
 
$
10

Schedule Of Weighted Average Assumptions 
Weighted average assumptions are as follows:
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

 
2015

 
2014

 
2013

Discount rate to determine net periodic benefit cost
4.32
%
 
4.37
%
 
4.02
%
 
4.36
%
 
5.01
%
 
4.23
%
 
3.97
%
 
4.41
%
 
3.66
%
Discount rate to determine benefit obligations
4.47
%
 
4.32
%
 
4.77
%
 
4.41
%
 
4.36
%
 
5.09
%
 
3.54
%
 
3.97
%
 
4.48
%
Rate of compensation increase
0.01
%
 
0.01
%
 
n/a

 
2.31
%
 
2.11
%
 
3.50
%
 
n/a

 
n/a

 
n/a

Expected return on plan assets
4.61
%
 
6.37
%
 
5.44
%
 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

Schedule of Health Care Cost Trend Rates 
A one-percentage-point change in assumed health-care cost trend rates would have the following effects:
 
 
 
in millions

 
One Percentage Point Increase
 
One Percentage Point Decrease
Effect on postretirement benefit obligation
$
8

 
$
7

Effect on total service and interest components
—

 
—

Schedule Of Actual And Target Asset Allocation For Pension Plan Assets 
The following table sets forth the actual and target asset allocation for pension plan assets:
 
2015

 
2014

 
Target Asset
Allocation

Cash
0.3
%
 
4.9
%
 
—
%
Fixed Income Securities
85.4

 
80.5

 
86.0

United States Stock Funds
3.9

 
6.0

 
4.0

International Stock Funds
6.8

 
6.2

 
6.5

Real Estate
3.6

 
2.0

 
3.5

Other
—

 
0.4

 
—

Total
100.0
%
 
100.0
%
 
100.0
%
Schedule Of Categories Of Pension Plan Assets And Level Under Which Fair Values Were Determined In Fair Value Hierarchy 
The following tables show the categories of pension plan assets and the level under which fair values were determined in the fair value hierarchy, which is described in Note 13: Fair Value Measurements.
 
in millions
 
October 3, 2015
Level 1

 
Level 2 (a)

 
Level 3 (b)

 
Total

Cash and cash equivalents
$
5

 
$
—

 
$
—

 
$
5

Fixed Income Securities:
 
 
 
 
 
 
 
Bond and fixed income funds
—

 
1,334

 
—

 
1,334

Total fixed income securities
—

 
1,334

 
—

 
1,334

Equity Securities:
 
 
 
 
 
 


United States securities funds
—

 
61

 
—

 
61

Non-United States securities funds
—

 
106

 
—

 
106

Global real estate funds
—

 
56

 
—

 
56

Total equity securities
—

 
223

 
—

 
223

Insurance contract at contract value
—

 
—

 
14

 
14

Total plan assets
$
5

 
$
1,557

 
$
14

 
$
1,576

 
in millions
 
September 27, 2014
Level 1

 
Level 2 (a)

 
Level 3 (b)

 
Total

Cash and cash equivalents
$
79

 
$
—

 
$
—

 
$
79

Fixed Income Securities:
 
 
 
 
 
 
 
Bond and fixed income funds
—

 
377

 
—

 
377

Corporate bonds
—

 
680

 
—

 
680

Government and municipal bonds
—

 
253

 
—

 
253

Mortgage backed securities
—

 
—

 
7

 
7

Total fixed income securities
—

 
1,310

 
7

 
1,317

Equity Securities:
 
 
 
 
 
 
 
United States securities funds
—

 
84

 
—

 
84

Non- United States securities funds
—

 
101

 
—

 
101

Commodity funds
—

 
14

 
—

 
14

Global real estate funds
—

 
33

 
—

 
33

Total equity securities
—

 
232

 
—

 
232

Other
—

 
7

 
—

 
7

Insurance contract at contract value
—

 
—

 
15

 
15

Total plan assets
$
79

 
$
1,549

 
$
22

 
$
1,650

(a)
We classify our investments in United States government, United States agency, fixed income funds, bond funds, corporate bonds, and other 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. Funds are valued using the net asset value (NAV) provided by the trustee, which is a practical expedient to estimating fair value. The NAV is based on the fair value of the underlying investments within the funds and is determined daily.
(b)
We classify certain mortgage-backed, asset-backed and insurance contracts 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. The insurance contracts are valued using the plan’s own assumptions about the assumptions market participants would use in pricing the assets based on the best information available, such as investment manager pricing. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated financial statements.
Schedule Of Reconciliation Of Change In Fair Value Measurement Of Defined Benefit Plans' Consolidated Assets Using Significant Unobservable Inputs 
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) is as follows:
 
 
 
 
 
in millions

 
Mortgage backed securities

 
Insurance contract

 
Total

Balance at September 27, 2014
$
7

 
$
15

 
22

Actual return on plan assets:
 
 
 
 


Assets still held at reporting date
—

 
—

 
—

Assets sold during the period
—

 
—

 
—

Purchases, sales and settlements, net
(7
)
 
(1
)
 
(8
)
Transfers in and/or out of Level 3
—

 
—

 
—

Balance at October 3, 2015
$
—

 
$
14

 
$
14

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

 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
2016
$
81

 
$
9

 
$
20

2017
83

 
9

 
14

2018
87

 
10

 
10

2019
89

 
10

 
7

2020
92

 
10

 
7

2021-2025
508

 
59

 
33

Schedule of Multiemployer Plans 
In addition to regular contributions, we could be obligated to pay additional contributions (known as complete or partial withdrawal liabilities) if it has unfunded vested benefits.
 
 
 
PPA Zone Status
 
FIP/RP Status
Contributions (in millions)
 
Surcharge Imposed
 
 
Pension Fund Plan Name
EIN/Pension Plan Number
 
2015
 
2014
 
Implemented
2015
2014
 
2015
 
Expiration Date of Collective Bargaining Agreement(a)
Bakery and Confectionery Union and Industry International Pension Fund
52-6118572/001
 
Red
 
Red
 
Nov 2012
 
$1
$1
 
10%
 
October 2015

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

 
2015

 
2014

Accumulated other comprehensive income (loss), net of taxes:
 
 
 
Unrealized net hedging loss
$
(1
)
 
$
(3
)
Unrealized net gain on investments
1

 
2

Currency translation adjustment
(63
)
 
(99
)
Postretirement benefits reserve adjustments
(27
)
 
(47
)
Total accumulated other comprehensive loss
$
(90
)
 
$
(147
)
Schedule Of 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
 
 
 
2015
 
2014
 
2013
 
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to Cost of Sales
 
$
7

$
(3
)
$
4

 
$
10

$
(4
)
$
6

 
$
5

$
(2
)
$
3

(Gain) loss reclassified to Other Income/Expense
 
—

—

—

 
—

—

—

 
4

(2
)
2

Unrealized gain (loss)
 
(4
)
2

(2
)
 
(8
)
3

(5
)
 
(31
)
12

(19
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to Other Income/Expense
 
(21
)
8

(13
)
 
8

(2
)
6

 
(1
)
—

(1
)
Unrealized gain (loss)
 
21

(9
)
12

 
(2
)
—

(2
)
 
(4
)
2

(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
 
 
 
 
Translation loss reclassified to Cost of Sales (a)
 
115

(8
)
107

 
—

—

—

 
(19
)
(1
)
(20
)
Translation adjustment
 
(86
)
15

(71
)
 
(32
)
2

(30
)
 
(20
)
3

(17
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits
 
32

(12
)
20

 
(23
)
9

(14
)
 
15

(6
)
9

Total Other Comprehensive Income (Loss)
 
$
64

$
(7
)
$
57

 
$
(47
)
$
8

$
(39
)
 
$
(51
)
$
6

$
(45
)
(a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 3: Acquisitions and Dispositions.
Segment Reporting (Tables)
Schedule Of Segment Reporting Information, By Segment
Information on segments and a reconciliation to income from continuing operations before income taxes are follows:
 
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other

 
Intersegment
Sales

 
Consolidated

Fiscal 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,390

 
$
17,236

 
$
5,262

 
$
7,822

 
$
879

 
$
(1,216
)
 
$
41,373

Operating Income (Loss)
1,366

 
(66
)
 
380

 
588

 
(99
)
 
 
 
2,169

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
248

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,921

Depreciation and amortization
272

 
97

 
31

 
280

 
21

 
 
 
701

Total Assets
5,731

 
3,009

 
927

 
12,006

 
1,331

 
 
 
23,004

Additions to property, plant and equipment
405

 
113

 
50

 
167

 
119

 
 
 
854

Fiscal 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,116

 
$
16,177

 
$
6,304

 
$
3,927

 
$
1,381

 
$
(1,325
)
 
$
37,580

Operating Income (Loss)
883

 
347

 
455

 
(60
)
 
(195
)
 
 
 
1,430

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
178

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,252

Depreciation and amortization
253

 
91

 
33

 
95

 
48

 
 
 
520

Total Assets
4,807

 
3,103

 
965

 
8,608

 
6,473

 
 
 
23,956

Additions to property, plant and equipment
307

 
115

 
36

 
77

 
97

 
 
 
632

Fiscal 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
10,988

 
$
14,400

 
$
5,408

 
$
3,322

 
$
1,370

 
$
(1,114
)
 
$
34,374

Operating Income (Loss)
683

 
296

 
332

 
101

 
(37
)
 
 
 
1,375

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
118

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,257

Depreciation and amortization
253

 
91

 
31

 
67

 
49

 
 
 
491

Total Assets
4,944

 
2,798

 
931

 
1,176

 
2,328

 
 
 
12,177

Additions to property, plant and equipment
253

 
105

 
22

 
87

 
91

 
 
 
558

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

 
2015

 
2014

 
2013

Interest, net of amounts capitalized
$
308

 
$
118

 
$
114

Income taxes, net of refunds
437

 
590

 
310

Commitments And Contingencies (Tables)
Schedule Of Minimum Lease Commitments Under Non-Cancelable Leases 
Minimum lease commitments under non-cancelable leases at October 3, 2015, were:
 
in millions

2016
$
125

2017
98

2018
72

2019
48

2020
39

2021 and beyond
111

Total
$
493

Schedule Of Future Purchase Commitments 
At October 3, 2015, these commitments totaled:
 
in millions

2016
$
1,655

2017
434

2018
278

2019
117

2020
92

2021 and beyond
185

Total
$
2,761

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

 
Second
Quarter

 
Third
Quarter

 
Fourth
Quarter

2015
 
 
 
 
 
 
 
 
Sales
 
$
10,817

 
$
9,979

 
$
10,071

 
$
10,506

Gross profit
 
956

 
989

 
986

 
986

Operating income
 
509

 
547

 
563

 
550

Net income
 
310

 
311

 
344

 
259

Net income attributable to Tyson
 
309

 
310

 
343

 
258

 
 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
 
Class A Basic
 
$
0.77

 
$
0.78

 
$
0.86

 
$
0.65

Class B Basic
 
$
0.71

 
$
0.71

 
$
0.78

 
$
0.59

Diluted
 
$
0.74

 
$
0.75

 
$
0.83

 
$
0.63

2014
 
 
 
 
 
 
 
 
Sales
 
$
8,761

 
$
9,032

 
$
9,682

 
$
10,105

Gross profit
 
685

 
651

 
637

 
712

Operating income
 
412

 
361

 
351

 
306

Net income
 
252

 
210

 
258

 
136

Net income attributable to Tyson
 
254

 
213

 
260

 
137

 
 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
 
Class A Basic (a)
 
$
0.76

 
$
0.64

 
$
0.75

 
$
0.37

Class B Basic
 
$
0.68

 
$
0.58

 
$
0.68

 
$
0.32

Diluted (a)
 
$
0.72

 
$
0.60

 
$
0.73

 
$
0.35


(a) The sum of the quarterly earnings per share amounts will not equal the total for the year due to the effects of rounding and dilution impact as a result of issuing Class A shares and tangible equity units in the fourth quarter of fiscal 2014.
Condensed Consolidating Financial Statements (Tables)
Schedule Of Condensed Consolidating Statement Of Income 
Condensed Consolidating Statement of Income and Comprehensive Income for the year ended October 3, 2015
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
897

 
$
22,155

 
$
20,345

 
$
(2,024
)
 
$
41,373

Cost of Sales
26

 
21,675

 
17,774

 
(2,019
)
 
37,456

Gross Profit
871

 
480

 
2,571

 
(5
)
 
3,917

Selling, General and Administrative
128

 
260

 
1,365

 
(5
)
 
1,748

Operating Income
743

 
220

 
1,206

 
—

 
2,169

Other (Income) Expense:

 

 

 

 

Interest expense, net
263

 
2

 
19

 
—

 
284

Other, net
(22
)
 
(2
)
 
(12
)
 
—

 
(36
)
Equity in net earnings of subsidiaries
(925
)
 
(109
)
 
—

 
1,034

 
—

Total Other (Income) Expense
(684
)
 
(109
)
 
7

 
1,034

 
248

Income from Continuing Operations before Income Taxes
1,427

 
329

 
1,199

 
(1,034
)
 
1,921

Income Tax Expense
207

 
72

 
418

 
—

 
697

Income from Continuing Operations
1,220

 
257

 
781

 
(1,034
)
 
1,224

Loss from Discontinued Operation, Net of Tax
—

 
—

 
—

 
—

 
—

Net Income
1,220

 
257

 
781

 
(1,034
)
 
1,224

Less: Net Gain (Loss) Attributable to Noncontrolling Interests
—

 
—

 
4

 
—

 
4

Net Income Attributable to Tyson
$
1,220

 
$
257

 
$
777

 
$
(1,034
)
 
$
1,220

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
1,281

 
$
291

 
$
840

 
$
(1,131
)
 
$
1,281

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

 
—

 
4

 
—

 
4

Comprehensive Income (Loss) Attributable to Tyson
$
1,281

 
$
291

 
$
836

 
$
(1,131
)
 
$
1,277

Condensed Consolidating Statement of Income and Comprehensive Income for the year ended September 27, 2014
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
579

 
$
21,924

 
$
16,926

 
$
(1,849
)
 
$
37,580

Cost of Sales
74

 
20,971

 
15,689

 
(1,839
)
 
34,895

Gross Profit
505

 
953

 
1,237

 
(10
)
 
2,685

Selling, General and Administrative
141

 
240

 
884

 
(10
)
 
1,255

Operating Income
364

 
713

 
353

 
—

 
1,430

Other (Income) Expense:

 

 

 

 

Interest expense, net
63

 
49

 
13

 
—

 
125

Other, net
67

 
(1
)
 
(13
)
 
—

 
53

Equity in net earnings of subsidiaries
(731
)
 
(43
)
 
—

 
774

 
—

Total Other (Income) Expense
(601
)
 
5

 
—

 
774

 
178

Income from Continuing Operations before Income Taxes
965

 
708

 
353

 
(774
)
 
1,252

Income Tax Expense
101

 
227

 
68

 
—

 
396

Income from Continuing Operations
864

 
481

 
285

 
(774
)
 
856

Loss from Discontinued Operation, Net of Tax
—

 
—

 
—

 
—

 
—

Net Income
864

 
481

 
285

 
(774
)
 
856

Less: Net Gain (Loss) Attributable to Noncontrolling Interests
—

 
—

 
(8
)
 
—

 
(8
)
Net Income Attributable to Tyson
$
864

 
$
481

 
$
293

 
$
(774
)
 
$
864

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
817

 
$
449

 
$
243

 
$
(692
)
 
$
817

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

 
—

 
(8
)
 
—

 
(8
)
Comprehensive Income (Loss) Attributable to Tyson
$
817

 
$
449

 
$
251

 
$
(692
)
 
$
825

Condensed Consolidating Statement of Income and Comprehensive Income for the year ended September 28, 2013
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
431

 
$
19,243

 
$
16,120

 
$
(1,420
)
 
$
34,374

Cost of Sales
40

 
18,464

 
14,932

 
(1,420
)
 
32,016

Gross Profit
391

 
779

 
1,188

 
—

 
2,358

Selling, General and Administrative
68

 
201

 
714

 
—

 
983

Operating Income
323

 
578

 
474

 
—

 
1,375

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
36

 
62

 
40

 
—

 
138

Other, net
4

 
(1
)
 
(23
)
 
—

 
(20
)
Equity in net earnings of subsidiaries
(582
)
 
(40
)
 
—

 
622

 
—

Total Other (Income) Expense
(542
)
 
21

 
17

 
622

 
118

Income from Continuing Operations before Income Taxes
865

 
557

 
457

 
(622
)
 
1,257

Income Tax Expense
87

 
172

 
150

 
—

 
409

Income from Continuing Operations
778

 
385

 
307

 
(622
)
 
848

Loss from Discontinued Operation, Net of Tax
—

 
—

 
(70
)
 
—

 
(70
)
Net Income
778

 
385

 
237

 
(622
)
 
778

Less: Net Gain (Loss) Attributable to Noncontrolling Interests
—

 
—

 
—

 
—

 
—

Net Income Attributable to Tyson
$
778

 
$
385

 
$
237

 
$
(622
)
 
$
778

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
$
733

 
$
380

 
$
212

 
$
(592
)
 
$
733

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

 
—

 
—

 
—

 
—

Comprehensive Income (Loss) Attributable to Tyson
$
733

 
$
380

 
$
212

 
$
(592
)
 
$
733

Schedule Of Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet as of October 3, 2015
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
12

 
$
676

 
$
—

 
$
688

Accounts receivable, net
—

 
578

 
1,042

 
—

 
1,620

Inventories
1

 
1,009

 
1,868

 
—

 
2,878

Other current assets
43

 
91

 
147

 
(86
)
 
195

Assets held for sale
—

 
—

 
—

 
—

 
—

Total Current Assets
44

 
1,690

 
3,733

 
(86
)
 
5,381

Net Property, Plant and Equipment
26

 
975

 
4,175

 
—

 
5,176

Goodwill
—

 
881

 
5,786

 
—

 
6,667

Intangible Assets
—

 
10

 
5,158

 
—

 
5,168

Other Assets
129

 
146

 
337

 
—

 
612

Investment in Subsidiaries
21,850

 
2,177

 
—

 
(24,027
)
 
—

Total Assets
$
22,049

 
$
5,879

 
$
19,189

 
$
(24,113
)
 
$
23,004

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
710

 
$
1

 
$
22

 
$
(18
)
 
$
715

Accounts payable
28

 
698

 
936

 
—

 
1,662

Other current liabilities
5,930

 
152

 
939

 
(5,863
)
 
1,158

Liabilities held for sale
—

 
—

 
—

 
—

 
—

Total Current Liabilities
6,668

 
851

 
1,897

 
(5,881
)
 
3,535

Long-Term Debt
5,498

 
1

 
511

 
—

 
6,010

Deferred Income Taxes
—

 
98

 
2,351

 
—

 
2,449

Other Liabilities
192

 
118

 
994

 
—

 
1,304

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,691

 
4,811

 
13,421

 
(18,232
)
 
9,691

Noncontrolling Interests
—

 
—

 
15

 
—

 
15

Total Shareholders’ Equity
9,691

 
4,811

 
13,436

 
(18,232
)
 
9,706

Total Liabilities and Shareholders’ Equity
$
22,049

 
$
5,879

 
$
19,189

 
$
(24,113
)
 
$
23,004

Condensed Consolidating Balance Sheet as of September 27, 2014
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
41

 
$
397

 
$
—

 
$
438

Accounts receivable, net
3

 
665

 
1,016

 
—

 
1,684

Inventories
—

 
1,272

 
2,002

 
—

 
3,274

Other current assets
42

 
78

 
379

 
(120
)
 
379

Assets held for sale
3

 
—

 
443

 
—

 
446

Total Current Assets
48

 
2,056

 
4,237

 
(120
)
 
6,221

Net Property, Plant and Equipment
30

 
932

 
4,168

 
—

 
5,130

Goodwill
—

 
881

 
5,825

 
—

 
6,706

Intangible Assets
—

 
15

 
5,261

 
—

 
5,276

Other Assets
204

 
148

 
326

 
(55
)
 
623

Investment in Subsidiaries
20,845

 
2,049

 
—

 
(22,894
)
 
—

Total Assets
$
21,127

 
$
6,081

 
$
19,817

 
$
(23,069
)
 
$
23,956

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
240

 
$
—

 
$
403

 
$
—

 
$
643

Accounts payable
35

 
755

 
1,016

 
—

 
1,806

Other current liabilities
4,718

 
235

 
921

 
(4,667
)
 
1,207

Liabilities held for sale
—

 
—

 
141

 
—

 
141

Total Current Liabilities
4,993

 
990

 
2,481

 
(4,667
)
 
3,797

Long-Term Debt
7,056

 
2

 
532

 
(55
)
 
7,535

Deferred Income Taxes
21

 
96

 
2,333

 
—

 
2,450

Other Liabilities
167

 
125

 
978

 
—

 
1,270

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
8,890

 
4,868

 
13,479

 
(18,347
)
 
8,890

Noncontrolling Interests
—

 
—

 
14

 
—

 
14

Total Shareholders’ Equity
8,890

 
4,868

 
13,493

 
(18,347
)
 
8,904

Total Liabilities and Shareholders’ Equity
$
21,127

 
$
6,081

 
$
19,817

 
$
(23,069
)
 
$
23,956

Schedule Of Condensed Consolidating Statement Of Cash Flows 
Condensed Consolidating Statement of Cash Flows for the year ended October 3, 2015
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
274

 
$
476

 
$
1,841

 
$
(21
)
 
$
2,570

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

 
(159
)
 
(695
)
 
—

 
(854
)
(Purchases of)/Proceeds from marketable securities, net
21

 
—

 
(7
)
 
—

 
14

Acquisitions, net of cash acquired
—

 
—

 
—

 
—

 
—

Proceeds from sale of businesses
—

 
—

 
539

 
—

 
539

Other, net
23

 
1

 
7

 
—

 
31

Cash Provided by (Used for) Investing Activities
44

 
(158
)
 
(156
)
 
—

 
(270
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(1,092
)
 
—

 
(402
)
 
—

 
(1,494
)
Proceeds from issuance of common stock, net of issuance costs
—

 
—

 
—

 
—

 
—

Proceeds from issuance of equity component of tangible equity units
—

 
—

 
—

 
—

 
—

Purchases of Tyson Class A common stock
(495
)
 
—

 
—

 
—

 
(495
)
Dividends
(147
)
 
—

 
(21
)
 
21

 
(147
)
Stock options exercised
84

 
—

 
—

 
—

 
84

Other, net
22

 
—

 
(5
)
 
—

 
17

Net change in intercompany balances
1,310

 
(347
)
 
(963
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(318
)
 
(347
)
 
(1,391
)
 
21

 
(2,035
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(15
)
 
—

 
(15
)
Increase (Decrease) in Cash and Cash Equivalents
—

 
(29
)
 
279

 
—

 
250

Cash and Cash Equivalents at Beginning of Year
—

 
41

 
397

 
—

 
438

Cash and Cash Equivalents at End of Period
$
—

 
$
12

 
$
676

 
$
—

 
$
688

Condensed Consolidating Statement of Cash Flows for the year ended September 27, 2014
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
132

 
$
431

 
$
660

 
$
(45
)
 
$
1,178

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(1
)
 
(147
)
 
(484
)
 
—

 
(632
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
15

 
—

 
15

Acquisitions, net of cash acquired
(8,193
)
 
—

 
—

 
—

 
(8,193
)
Proceeds from sale of businesses
—

 
—

 
—

 
—

 
—

Other, net
5

 
2

 
3

 
—

 
10

Cash Provided by (Used for) Investing Activities
(8,189
)
 
(145
)
 
(466
)
 
—

 
(8,800
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
5,154

 
—

 
(12
)
 
—

 
5,142

Proceeds from issuance of common stock, net of issuance costs
873

 
—

 
—

 
—

 
873

Proceeds from issuance of equity component of tangible equity units
1,255

 
—

 
—

 
—

 
1,255

Purchases of Tyson Class A common stock
(295
)
 
—

 
—

 
—

 
(295
)
Dividends
(104
)
 
—

 
(45
)
 
45

 
(104
)
Stock options exercised
67

 
—

 
—

 
—

 
67

Other, net
(22
)
 
—

 
(1
)
 
—

 
(23
)
Net change in intercompany balances
1,129

 
(266
)
 
(863
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
8,057

 
(266
)
 
(921
)
 
45

 
6,915

Effect of Exchange Rate Change on Cash
—

 
—

 
—

 
—

 
—

Increase (Decrease) in Cash and Cash Equivalents
—

 
20

 
(727
)
 
—

 
(707
)
Cash and Cash Equivalents at Beginning of Year
—

 
21

 
1,124

 
—

 
1,145

Cash and Cash Equivalents at End of Period
$
—

 
$
41

 
$
397

 
$
—

 
$
438

Condensed Consolidating Statement of Cash Flows for the year ended September 28, 2013
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
294

 
$
337

 
$
696

 
$
(13
)
 
$
1,314

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(4
)
 
(113
)
 
(441
)
 
—

 
(558
)
(Purchases of)/Proceeds from marketable securities, net
—

 
(13
)
 
(5
)
 
—

 
(18
)
Acquisitions, net of cash acquired
—

 
—

 
(106
)
 
—

 
(106
)
Proceeds from sale of businesses
—

 
—

 
—

 
—

 
—

Other, net
—

 
3

 
36

 
—

 
39

Cash Provided by (Used for) Investing Activities
(4
)
 
(123
)
 
(516
)
 
—

 
(643
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
5

 
—

 
(28
)
 
—

 
(23
)
Proceeds from issuance of common stock, net of issuance costs
—

 
—

 
—

 
—

 
—

Proceeds from issuance of equity component of tangible equity units
—

 
—

 
—

 
—

 
—

Purchases of Tyson Class A common stock
(614
)
 
—

 
—

 
—

 
(614
)
Dividends
(104
)
 
—

 
(13
)
 
13

 
(104
)
Stock options exercised
123

 
—

 
—

 
—

 
123

Other, net
18

 
—

 
—

 
—

 
18

Net change in intercompany balances
281

 
(202
)
 
(79
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(291
)
 
(202
)
 
(120
)
 
13

 
(600
)
Effect of Exchange Rate Change on Cash
—

 
—

 
3

 
—

 
3

Increase (Decrease) in Cash and Cash Equivalents
(1
)
 
12

 
63

 
—

 
74

Cash and Cash Equivalents at Beginning of Year
1

 
9

 
1,061

 
—

 
1,071

Cash and Cash Equivalents at End of Period
$
—

 
$
21

 
$
1,124

 
$
—

 
$
1,145

Business And Summary Of Significant Accounting Policies (Schedule Of Inventories Of Processed Products, Livestock, And Supplies Valued At Lower Of Cost Or Market) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Inventory Disclosure [Abstract]
 
 
Processed products
$ 1,631 
$ 1,794 
Livestock
831 
1,066 
Supplies and other
416 
414 
Total inventory
$ 2,878 
$ 3,274 
Business And Summary Of Significant Accounting Policies Business and Summary of Significant Accounting Policies (Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Other Liabilities, Current [Abstract]
 
 
Accrued salaries, wages and benefits
$ 478 
$ 490 
Accrued marketing, advertising and promotion expense
192 
185 
Other
488 
532 
Total other current liabilities
$ 1,158 
$ 1,207 
Business And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Accounting Policies [Line Items]
 
 
 
Checks outstanding in excess of related book cash
$ 257 
$ 298 
 
Allowance for uncollectible accounts
27 
34 
 
Percentage of FIFO Inventory
63.00% 
66.00% 
 
Goodwill, Impairment Loss
23 
5 
 
Maximum length of time hedged anticipated transactions
18 months 
 
 
Advertising and promotion expenses
966 
641 
555 
Research and development costs
75 
52 
50 
Immaterial Reporting Unit [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Goodwill, Impairment Loss
$ 23 
 
 
Goodwill [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Fair Value Inputs, Discount Rate
6.80% 
7.90% 
 
Indefinite-lived Intangible Assets [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Fair Value Inputs, Discount Rate
8.00% 
 
 
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Finite-Lived Intangible Asset, Useful Life
20 years 
 
 
Buildings And Leasehold Improvements [Member] |
Minimum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
10 years 
 
 
Buildings And Leasehold Improvements [Member] |
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
33 years 
 
 
Machinery And Equipment [Member] |
Minimum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
3 years 
 
 
Machinery And Equipment [Member] |
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
12 years 
 
 
Land Improvements and Other [Member] |
Minimum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
3 years 
 
 
Land Improvements and Other [Member] |
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
20 years 
 
 
Acquisitions and Dispositions Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Sep. 27, 2014
Hillshire Brands Company [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Business Acquisition [Line Items]
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
$ 72 
Accounts receivable
 
 
 
 
236 
Inventories
 
 
 
 
414 
Other current assets
 
 
 
 
343 
Property, Plant and Equipment
 
 
 
 
1,301 
Goodwill
6,667 
6,706 
1,902 
4,800 
4,790 
Intangible Assets
 
 
 
 
5,141 
Other Assets
 
 
 
 
64 
Accounts payable
 
 
 
 
(347)
Other current liabilities
 
 
 
 
(327)
Long-Term Debt
 
 
 
 
(869)
Deferred Income Taxes
 
 
 
 
(2,074)
Other Liabilities
 
 
 
 
(500)
Net asset acquired
 
 
 
 
$ 8,244 
Acquisitions and Dispositions Schedule of Intangible Assets Acquired as Part of Business Combination (Details) (Hillshire Brands Company [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended
Aug. 28, 2014
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items]
 
Total identifiable intangible assets
$ 5,141 
Trademarks [Member]
 
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items]
 
Fair Value, Finite-lived Intangible Assets
532 
Life in Years
20 years 
Customer Relationships [Member]
 
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items]
 
Fair Value, Finite-lived Intangible Assets
541 
Life in Years
16 years 
Noncompete Agreements [Member]
 
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items]
 
Fair Value, Finite-lived Intangible Assets
6 
Life in Years
1 year 
Trademarks [Member]
 
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items]
 
Fair Value, Indefinite-lived Intangible Assets
$ 4,062 
Acquisitions and Dispositions Acquisitions Pro Forma Information (Details) (Hillshire Brands Company [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 27, 2014
Sep. 28, 2013
Hillshire Brands Company [Member]
 
 
Business Acquisition [Line Items]
 
 
Pro forma sales
$ 41,311 
$ 38,195 
Pro forma net income from continuing operations attributable to Tyson
$ 1,047 
$ 655 
Pro forma net income per diluted share from continuing operations attributable to Tyson (in dollars per share)
$ 2.50 
$ 1.52 
Acquisitions and Dispositions Summary of Net Assets Held for Sale (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Total assets held for sale
$ 0 
$ 446 
Total liabilities held for sale
0 
141 
Other [Member] |
Chicken Production Operations in Brazil and Mexico [Member]
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Accounts receivable, net
 
74 
Inventories
 
141 
Other current assets
 
72 
Net property, plant and equipment
 
132 
Goodwill
 
16 
Other assets
 
11 
Total assets held for sale
 
446 
Current debt
 
32 
Accounts payable
 
61 
Other current liabilities
 
27 
Long-term debt
 
9 
Deferred income taxes
 
12 
Total liabilities held for sale
 
$ 141 
Acquisitions (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Oct. 3, 2015
Chicken [Member]
Sep. 27, 2014
Chicken [Member]
Sep. 28, 2013
Chicken [Member]
Oct. 3, 2015
Beef [Member]
Sep. 27, 2014
Beef [Member]
Sep. 28, 2013
Beef [Member]
Oct. 3, 2015
Pork [Member]
Sep. 27, 2014
Pork [Member]
Sep. 28, 2013
Pork [Member]
Oct. 3, 2015
Prepared Foods [Member]
Sep. 27, 2014
Prepared Foods [Member]
Sep. 28, 2013
Prepared Foods [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Sep. 28, 2013
Hillshire Brands Company [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Chicken [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Beef [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Pork [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Prepared Foods [Member]
Sep. 27, 2014
Series of Individually Immaterial Business Acquisitions [Member]
business
Sep. 28, 2013
Series of Individually Immaterial Business Acquisitions [Member]
business
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price per share of acquired entity's common stock (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 63.00 
 
 
 
 
 
 
 
 
 
 
Purchase price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 8,081 
 
 
 
 
 
 
 
 
 
 
Breakage costs incurred related to a previously proposed acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
163 
 
 
 
 
 
 
 
 
 
 
Goodwill, Purchase Accounting Adjustments
14 
 
 
0 
 
 
0 
 
 
0 
 
 
0 
 
 
 
14 
 
 
 
 
 
 
 
 
 
Goodwill
6,667 
6,706 
1,902 
1,563 
907 
908 
676 
563 
563 
423 
317 
317 
4,005 
92 
75 
 
 
 
4,800 
4,790 
658 
113 
106 
3,913 
18 
12 
Business Combination, Pro Forma Information, Transaction Related Expenses Incurred by Acquiree Included in Pro Forma Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
168 
 
 
 
 
 
 
 
 
Business Combination, Pro Forma Information, Transaction Related Expenses Incurred Included in Pro Forma Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
115 
 
 
 
 
 
 
 
 
Business Combination, Pro Forma Information, Fair Value Inventory Adjustment Included in Pro Forma Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32 
 
 
 
 
 
 
 
 
Number of Businesses Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
2 
Acquisitions, net of cash acquired
0 
8,193 
106 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
56 
106 
Property, Plant and Equipment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,301 
 
 
 
 
12 
50 
Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 5,141 
 
 
 
 
$ 27 
$ 41 
Dispositions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Oct. 3, 2015
Beef [Member]
Operating Segments [Member]
Facility Closing [Member]
Oct. 3, 2015
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Jun. 28, 2014
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Facilities
Sep. 27, 2014
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Facilities
Oct. 3, 2015
Cost of Sales [Member]
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Oct. 3, 2015
Selling, General and Administrative Expenses [Member]
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Oct. 3, 2015
2.75% Senior notes due September 2015 [Member]
Sep. 27, 2014
Chicken Production Operations in Brazil and Mexico [Member]
Other [Member]
Dec. 27, 2014
Chicken Production Operations in Brazil [Member]
Other [Member]
Sep. 27, 2014
Chicken Production Operations in Brazil [Member]
Other [Member]
Oct. 3, 2015
Chicken Production Operations in Mexico [Member]
Other [Member]
Oct. 3, 2015
Chicken Production Operations in Mexico [Member]
Cost of Sales [Member]
Oct. 3, 2015
Chicken Production Operations in Mexico [Member]
Cost of Sales [Member]
Other [Member]
Sep. 27, 2014
Dynamic Fuels Deconsolidation [Member]
Sep. 27, 2014
Dynamic Fuels Deconsolidation [Member]
Variable Interest Entity, Primary Beneficiary [Member]
Sep. 27, 2014
Dynamic Fuels Deconsolidation [Member]
Cost of Sales [Member]
Variable Interest Entity, Primary Beneficiary [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disposal Group, Consideration
 
 
 
 
 
 
 
 
 
 
$ 575 
 
 
 
 
 
 
 
 
Asset Impairment Charges
285 
107 
74 
12 
59 
49 
52 
49 
10 
 
 
 
39 
 
 
 
 
 
 
Proceeds from sale of businesses
539 
0 
0 
 
 
 
 
 
 
 
 
148 
 
374 
 
 
 
30 
 
Gain on disposition of Business
177 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
161 
161 
 
 
3 
Stated interest rate
 
 
 
 
 
 
 
 
 
2.75% 
 
 
 
 
 
 
 
 
 
Plants Closed
 
 
 
 
 
3 
3 
 
 
 
 
 
 
 
 
 
 
 
 
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
Future Contingent Cash Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35 
 
Disposal Group, Future Contingent Consideration, Period of production volumes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 years 6 months 
 
 
Guarantor Obligations Release of Guarantees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100 
 
 
Discontinued Operation (Summary of Discontinued Operation's Results) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Loss from Discontinued Operation, Net of Tax
$ 0 
$ 0 
$ (70)
Weifang Operation [Member]
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Sales
0 
0 
108 
Pretax loss
0 
0 
(68)
Income tax expense
0 
0 
2 
Loss from Discontinued Operation, Net of Tax
$ 0 
$ 0 
$ (70)
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]
 
Impairment of assets
$ 56 
Property, Plant And Equipment (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 10,816 
$ 10,381 
Less accumulated depreciation
5,640 
5,251 
Net property, plant and equipment
5,176 
5,130 
Amount required to complete construction of buildings and equipment under construction
565 
 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
122 
126 
Buildings And Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
3,581 
3,501 
Machinery And Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
6,452 
6,144 
Land Improvements And Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
286 
276 
Buildings And Equipment Under Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 375 
$ 334 
Goodwill And Other Intangible Assets (Goodwill Activity) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
$ 7,300 
$ 2,491 
 
Accumulated impairment losses
(617)
(594)
(589)
Goodwill, net
6,667 
6,706 
1,902 
Goodwill acquired
0 
4,827 
 
Reclass to assets held for sale
 
(16)
 
Goodwill, Purchase Accounting Adjustments
(14)
 
 
Allocation of Acquired Goodwill
0 
 
 
Impairment losses
(23)
(5)
 
Currency translation and other
(2)
(2)
 
Goodwill, end of period
7,284 
7,300 
 
Chicken [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
907 
908 
 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
1,563 
907 
908 
Goodwill acquired
0 
0 
 
Reclass to assets held for sale
 
0 
 
Goodwill, Purchase Accounting Adjustments
0 
 
 
Allocation of Acquired Goodwill
658 
 
 
Impairment losses
0 
0 
 
Currency translation and other
(2)
(1)
 
Goodwill, end of period
1,563 
907 
 
Beef [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
1,123 
1,123 
 
Accumulated impairment losses
(560)
(560)
(560)
Goodwill, net
676 
563 
563 
Goodwill acquired
0 
0 
 
Reclass to assets held for sale
 
0 
 
Goodwill, Purchase Accounting Adjustments
0 
 
 
Allocation of Acquired Goodwill
113 
 
 
Impairment losses
0 
0 
 
Currency translation and other
0 
0 
 
Goodwill, end of period
1,236 
1,123 
 
Pork [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
317 
317 
 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
423 
317 
317 
Goodwill acquired
0 
0 
 
Reclass to assets held for sale
 
0 
 
Goodwill, Purchase Accounting Adjustments
0 
 
 
Allocation of Acquired Goodwill
106 
 
 
Impairment losses
0 
0 
 
Currency translation and other
0 
0 
 
Goodwill, end of period
423 
317 
 
Prepared Foods [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
92 
75 
 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
4,005 
92 
75 
Goodwill acquired
0 
18 
 
Reclass to assets held for sale
 
0 
 
Goodwill, Purchase Accounting Adjustments
0 
 
 
Allocation of Acquired Goodwill
3,913 
 
 
Impairment losses
0 
0 
 
Currency translation and other
0 
(1)
 
Goodwill, end of period
4,005 
92 
 
Other [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
57 1
68 1
 
Accumulated impairment losses
(57)1
(34)1
(29)1
Goodwill, net
0 1
23 1
39 1
Goodwill acquired
0 1
5 1
 
Reclass to assets held for sale
 
(16)1
 
Goodwill, Purchase Accounting Adjustments
0 1
 
 
Allocation of Acquired Goodwill
0 1
 
 
Impairment losses
(23)1
(5)1
 
Currency translation and other
0 1
0 1
 
Goodwill, end of period
57 1
57 1
 
Unallocated Goodwill [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
4,804 
0 
 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
0 
4,804 
0 
Goodwill acquired
0 
4,804 
 
Reclass to assets held for sale
 
0 
 
Goodwill, Purchase Accounting Adjustments
(14)
 
 
Allocation of Acquired Goodwill
(4,790)
 
 
Impairment losses
0 
0 
 
Currency translation and other
0 
0 
 
Goodwill, end of period
$ 0 
$ 4,804 
 
Goodwill And Other Intangible Assets (Other Intangible Assets By Type) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
$ 1,282 
$ 1,331 
Less accumulated amortization
192 
133 
Total net amortizable intangible assets
1,090 
1,198 
Brands and trademarks not subject to amortization
4,078 
4,078 
Total intangible assets
5,168 
5,276 
Brands and Trademarks [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
594 
611 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
564 
570 
Patents, Intellectual Property and Other [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
115 
136 
Non-compete Agreements [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
0 
6 
Land Use Rights [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
$ 9 
$ 8 
Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
 
Goodwill, Purchase Accounting Adjustments
$ 14 
 
 
Amortization expense on intangible assets
92 
26 
17 
Estimated amortization expense on intangible assets, 2015
80 
 
 
Estimated amortization expense on intangible assets, 2016
78 
 
 
Estimated amortization expense on intangible assets, 2017
76 
 
 
Estimated amortization expense on intangible assets, 2018
72 
 
 
Estimated amortization expense on intangible assets, 2019
69 
 
 
Hillshire Brands Company [Member]
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Goodwill, Purchase Accounting Adjustments
$ 14 
 
 
Debt (Major Components Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Apr. 30, 2015
Oct. 3, 2015
Sep. 27, 2014
Debt Instrument [Line Items]
 
 
 
Revolving credit facility
 
$ 0 
$ 0 
Discount on senior notes
 
(10)
(12)
Tangible Equity Units, Carrying Amount of Debt Component
 
140 
205 
Other
 
69 
24 
Total debt
 
6,725 
8,178 
Less current debt
 
715 
643 
Total long-term debt
 
6,010 
7,535 
2.75% Senior notes due September 2015 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
0 
407 
Stated interest rate
 
2.75% 
 
6.60% Senior Notes Due April 2016 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
638 
638 
Stated interest rate
 
6.60% 
 
7.00% Notes Due May 2018 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
120 
120 
Stated interest rate
 
7.00% 
 
2.65% Senior notes due August 2019 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
1,000 
1,000 
Stated interest rate
 
2.65% 
 
4.10% Notes due September 2020 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
285 
287 
Stated interest rate
 
4.10% 
 
4.50% Senior Notes Due June 2022 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
1,000 
1,000 
Stated interest rate
 
4.50% 
 
3.95% Notes due August 2024 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
1,250 
1,250 
Stated interest rate
 
3.95% 
 
7.00% Notes due January 2028 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
18 
18 
Stated interest rate
 
7.00% 
 
6.13% Notes due November 2032 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
163 
164 
Stated interest rate
 
6.13% 
 
4.88% Notes due August 2034 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
500 
500 
Stated interest rate
 
4.88% 
 
5.15% Notes due August 2044 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
500 
500 
Stated interest rate
 
5.15% 
 
3-Year Tranche A [Member] |
Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
0 
1,172 
Debt Instrument, Term
 
3 years 
 
3-Year Tranche B [Member] |
Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
500 
0 
Stated interest rate
 
1.31% 
 
Debt Instrument, Term
3 years 
3 years 
 
5-Year Tranche A [Member] |
Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
0 
353 
Debt Instrument, Term
 
5 years 
 
5-Year Tranche B [Member] |
Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
$ 552 
$ 552 
Stated interest rate
 
1.69% 
 
Debt Instrument, Term
 
5 years 
 
Debt (Narrative) (Details) (USD $)
Share data in Millions, unless otherwise specified
0 Months Ended 1 Months Ended 0 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Oct. 3, 2015
Oct. 15, 2013
3.25% Convertible senior notes due October 2013 [Member]
Sep. 30, 2008
3.25% Convertible senior notes due October 2013 [Member]
Jul. 31, 2015
2.75% Senior notes due September 2015 [Member]
Oct. 3, 2015
2.75% Senior notes due September 2015 [Member]
Oct. 15, 2013
Class A [Member]
3.25% Convertible senior notes due October 2013 [Member]
Sep. 27, 2014
Class A [Member]
2008 Warrants [Member]
Oct. 3, 2015
Standby Letters of Credit [Member]
Oct. 3, 2015
Bilateral Letters Of Credit [Member]
Apr. 30, 2015
Term Loan [Member]
3-Year Tranche B [Member]
Oct. 3, 2015
Term Loan [Member]
3-Year Tranche B [Member]
Apr. 7, 2015
Term Loan [Member]
3-Year Tranche B [Member]
Oct. 3, 2015
Term Loan [Member]
3-Year Tranche A [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2016
$ 715,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2017
79,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2018
627,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2019
1,559,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2020
285,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity under credit facility
1,250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available for borrowing under credit facility
1,244,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit issued amount
 
 
 
 
 
 
 
6,000,000 
93,000,000 
 
 
 
 
Debt instrument, face amount
 
 
458,000,000.00 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
3.25% 
 
2.75% 
 
 
 
 
 
1.31% 
 
 
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 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Treasury Stock Reissued
 
 
 
 
 
 
11.7 
 
 
 
 
 
 
Repayments of Debt
 
 
 
401,000,000 
 
 
 
 
 
 
 
 
 
Loans Payable to Bank
 
 
 
 
 
 
 
 
 
 
 
$ 500,000,000 
 
Debt Instrument, Term
 
 
 
 
 
 
 
 
 
3 years 
3 years 
 
3 years 
Loans Receivable, Basis Spread on Variable Rate
 
 
 
 
 
 
 
 
 
 
 
1.125% 
 
Equity (Schedule of Share Repurchases) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Class of Stock [Line Items]
 
 
 
Dollars
$ 495.00 
$ 295.00 
$ 614.00 
Class A [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Shares
11,900,000 
8,300,000 
23,900,000 
Dollars
495.00 
295.00 
614.00 
Class A [Member] |
Share Repurchase Program [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Shares
11,000,000 
7,100,000 
21,100,000 
Dollars
455.00 
250.00 
550.00 
Class A [Member] |
Open Market Repurchases [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Shares
900,000 
1,200,000 
2,800,000 
Dollars
$ 40.00 
$ 45.00 
$ 64.00 
Equity (Schedule of Tangible Equity Units) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Equity [Abstract]
 
 
 
Price per TEU, Equity Component (in dollars per share)
 
$ 43.17 
 
Price per TEU, Debt Component (in dollars per share)
 
$ 6.83 
 
Price per TEU, Total (in dollars per share)
 
$ 50 
 
Gross Proceeds, Equity Component
 
$ 1,295 
 
Gross Proceeds, Debt Component
0 
205 
0 
Gross Proceeds, Total
 
1,500 
 
Issuance cost, Equity Component
 
(40)
 
Issuance cost, Debt Component
 
(6)
 
Issuance cost, Total
 
(46)
 
Net proceeds, Equity Component
0 
1,255 
0 
Net proceeds, Debt Component
 
199 
 
Net proceeds, Total
 
$ 1,454 
 
Equity (Narrative) (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 2 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended
Oct. 3, 2015
Classes
Sep. 27, 2014
Sep. 28, 2013
Sep. 27, 2014
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Oct. 3, 2015
Tyson Limited Partnership And Tyson Family [Member]
Sep. 15, 2015
Class A [Member]
Oct. 3, 2015
Class A [Member]
Sep. 27, 2014
Class A [Member]
Sep. 28, 2013
Class A [Member]
Oct. 3, 2015
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Oct. 3, 2015
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Minimum [Member]
Oct. 3, 2015
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Maximum [Member]
Sep. 27, 2014
Class A [Member]
Hillshire Brands Company [Member]
Oct. 3, 2015
Class A [Member]
Share Repurchase Program [Member]
Sep. 27, 2014
Class A [Member]
Share Repurchase Program [Member]
Sep. 28, 2013
Class A [Member]
Share Repurchase Program [Member]
Nov. 19, 2015
Class A [Member]
Subsequent Event [Member]
Nov. 23, 2015
Class A [Member]
Subsequent Event [Member]
Share Repurchase Program [Member]
Sep. 28, 2013
Class A [Member]
Tyson Limited Partnership [Member]
Oct. 3, 2015
Class A [Member]
Tyson Limited Partnership And Tyson Family [Member]
Oct. 3, 2015
Class B [Member]
Sep. 27, 2014
Class B [Member]
Sep. 28, 2013
Class B [Member]
Nov. 19, 2015
Class B [Member]
Subsequent Event [Member]
Oct. 3, 2015
Class B [Member]
Tyson Limited Partnership [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of classes of common stock
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, par value
 
 
 
 
 
 
 
$ 0.1 
$ 0.1 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.1 
$ 0.1 
 
 
 
Common Stock, Vote Entitlement Per Share
 
 
 
 
 
 
 
$ 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 10 
 
 
 
 
Tyson Family Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.79% 
 
 
 
 
99.985% 
Related Party Voting Rights Percentage
 
 
 
 
 
70.64% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Dividends, Paid Ratio To Other Class Of Stock, Maximum
90.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Dividends, Per Share, Cash Paid
 
 
 
 
 
 
$ 0.10 
$ 0.40 
$ 0.30 
$ 0.30 
 
 
 
 
 
 
 
 
 
 
 
$ 0.36 
$ 0.27 
$ 0.27 
 
 
Common Stock, Special Dividends Included in Dividends, Per Share, Cash Paid
 
 
 
 
 
 
 
 
 
$ 0.10 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.09 
 
 
Common Stock, Dividends, Per Share, Declared
 
 
 
 
 
 
 
$ 0.425 
$ 0.325 
$ 0.310 
 
 
 
 
 
 
 
$ 0.15 
 
 
 
$ 0.383 
$ 0.294 
$ 0.279 
$ 0.135 
 
Stock Repurchase Program, Increase (Decrease) in Authorized Shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25,000,000 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased
21,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of Class A common stock, shares
 
 
 
 
 
 
 
11,900,000 
8,300,000 
23,900,000 
 
 
 
 
11,000,000 
7,100,000 
21,100,000 
 
5,700,000 
1,000,000 
 
 
 
 
 
 
Purchases of Tyson Class A common stock
$ 495,000,000 
$ 295,000,000 
$ 614,000,000 
 
 
 
 
$ 495,000,000 
$ 295,000,000 
$ 614,000,000 
 
 
 
 
$ 455,000,000 
$ 250,000,000 
$ 550,000,000 
 
$ 257,000,000 
$ 29,850,000 
 
 
 
 
 
 
Stock Issued During Period, Shares, New Issues
 
 
 
 
 
 
 
0 
24,000,000 
0 
 
 
 
23,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of common stock, net of issuance costs
0 
873,000,000 
0 
 
873,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs issued (in units)
 
30,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs, Dividend Rate
 
4.75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds from issuance of TEUs
 
1,454,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs, stated amount per unit (in dollars per unit)
 
$ 50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs, Equity Component
 
1,295,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs, Debt Component
140,000,000 
205,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, initial principal amount
 
 
 
6.83 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, interest rate
 
 
 
1.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, quarterly principal and interest payment, first three annual quarters
 
 
 
$ 0.59 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, number of shares to be issued
 
 
 
 
 
 
 
 
 
 
 
31,800,000 
39,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, conversion price
 
 
 
 
 
 
 
 
 
 
$ 47.14 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, number of shares per contract if Applicable Market Value equal to or greater than conversion price
 
 
 
 
 
 
 
 
 
 
1.0606 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, reference price
 
 
 
 
 
 
 
 
 
 
$ 37.71 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, if applicable market value greater than reference price, number of shares equal to amount divided by Applicable Market Value
 
 
 
 
 
 
 
 
 
 
$ 50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, number of shares per contract, if Applicable Market Value is less than or equal to reference price
 
 
 
 
 
 
 
 
 
 
1.3260 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, consecutive trading days for calculation of applicable market value
 
 
 
 
 
 
 
 
 
 
20 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Dividend Threshold Amount
 
 
 
 
 
 
 
 
 
 
$ 0.075 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, incremental common shares attributable to dilutive effect of conversion, if applicable market value higher than reference price
 
 
 
 
 
 
 
 
 
 
8,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes (Provision For Income Taxes From Continuing Operations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Income Tax Disclosure [Abstract]
 
 
 
Federal
$ 564 
$ 325 
$ 341 
State
89 
67 
38 
Foreign
44 
4 
30 
Current
659 
501 
421 
Deferred
38 
(105)
(12)
Income Tax Expense
$ 697 
$ 396 
$ 409 
Income Taxes (Reasons For Differences Between Statutory Federal Tax Rate And Effective Income Tax Rate) (Details)
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Income Tax Disclosure [Abstract]
 
 
 
Federal income tax rate
35.00% 
35.00% 
35.00% 
State income taxes
3.10% 
2.80% 
2.40% 
Unrecognized tax benefits, net
(1.80%)
(4.70%)
(0.20%)
Domestic production deduction
(3.70%)
(4.00%)
(3.20%)
Foreign rate differences and valuation allowances
3.80% 
2.80% 
0.30% 
Other
(0.10%)
(0.30%)
(1.70%)
Effective income tax rate
36.30% 
31.60% 
32.60% 
Income Taxes (Tax Effects Of Major Items Recorded As Deferred Tax Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Income Tax Disclosure [Abstract]
 
 
Deferred Tax Assets, Property, plant and equipment
$ 0 
$ 0 
Deferred Tax Liabilities, Property, plant and equipment
783 
732 
Deferred Tax Assets, Intangible assets
0 
0 
Deferred Tax Liabilities, Intangible assets
2,000 
2,031 
Deferred Tax Assets, Accrued expenses
439 
474 
Deferred Tax Liabilities, Accrued expenses
0 
0 
Deferred Tax Assets, Net operating loss and other carryforwards
97 
96 
Deferred Tax Liabilities, Net operating loss and other carryforwards
0 
0 
Deferred Tax Assets, Other
122 
125 
Deferred Tax Liabilities, Other
238 
269 
Deferred Tax Assets, Gross
658 
695 
Deferred Tax Liabilities, Gross
3,021 
3,032 
Deferred Tax Assets, Valuation allowance
(68)
(51)
Deferred Tax Liabilities, Net
$ 2,431 
$ 2,388 
Income Taxes (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Income Tax Disclosures [Line Items]
 
 
 
Domestic production deduction
$ 72 
$ 50 
$ 40 
Decrease in unrecognized tax benefits
34 
58 
 
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount
59 
 
 
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount
73 
 
 
General business credits
 
 
17 
Income (Loss) from Continuing Operations before Income Taxes, Domestic
1,908 
1,270 
1,204 
Tax credit carryforwards
46 
 
 
Accumulated undistributed earnings of foreign subsidiaries
139 
403 
 
Unrecognized tax benefits that would impact effective tax rate
244 
241 
 
Unrecognized tax benefits, income tax penalties and interest accrued
46 
54 
 
Decrease in Unrecognized Tax Benefits is Reasonably Possible
14 
 
 
State and Local Jurisdiction [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating loss carryforwards
938 
 
 
Foreign Country [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating loss carryforwards
$ 29 
 
 
Other Income And Charges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Jun. 27, 2015
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Oct. 3, 2015
Other Nonoperating Income (Expense) [Member]
Sep. 27, 2014
Other Nonoperating Income (Expense) [Member]
Sep. 28, 2013
Other Nonoperating Income (Expense) [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Bridge Facility Commitment [Member]
Other Nonoperating Income (Expense) [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Oct. 3, 2015
Other [Member]
Sep. 27, 2014
Other [Member]
Oct. 3, 2015
Other [Member]
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Components of Other Income and Charges [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Impairment Charges
 
$ 285 
$ 107 
$ 74 
 
 
 
 
 
$ 169 
 
 
$ 169 
Property, Plant and Equipment, Transfers and Changes
 
 
 
 
 
 
 
 
126 
 
 
 
 
Goodwill, Impairment Loss
 
23 
5 
 
 
 
 
 
23 
 
23 1
5 1
 
Impairment of other assets
 
 
 
 
 
 
 
 
20 
 
 
 
 
Equity Earnings In Joint Ventures
 
 
 
 
12 
11 
 
 
 
 
 
 
 
Gain (Loss) on Sale of Equity Investments
21 
 
 
 
21 
 
 
 
 
 
 
 
 
Foreign currency exchange gains, net
 
 
 
 
 
3 
 
 
 
 
 
 
 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
 
 
 
 
 
6 
 
 
 
 
 
 
 
Expense Associated with Bridge Facility
 
 
 
 
 
 
 
60 
 
 
 
 
 
Recognized currency translation adjustment gain
 
 
 
 
 
 
$ 19 
 
 
 
 
 
 
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 28, 2013
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
 
 
 
 
 
$ 1,224 
$ 856 
$ 848 
Less: Net income (loss) attributable to noncontrolling interest
 
 
 
 
 
 
 
 
4 
(8)
0 
Net income from continuing operations attributable to Tyson
 
 
 
 
 
 
 
 
1,220 
864 
848 
Undistributed earnings
 
 
 
 
 
 
 
 
1,065 
749 
742 
Stock options and restricted stock
 
 
 
 
 
 
 
 
5 
5 
5 
Tangible Equity Units
 
 
 
 
 
 
 
 
3 
1 
0 
Convertible 2013 Notes
 
 
 
 
 
 
 
 
0 
0 
7 
Warrants
 
 
 
 
 
 
 
 
0 
4 
3 
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions
 
 
 
 
 
 
 
 
413 
364 
367 
Net Income Per Share from Continuing Operations Attributable to Tyson - Diluted
 
 
 
 
 
 
 
 
$ 2.95 
$ 2.37 
$ 2.31 
Net Income Per Share Attributable to Tyson - Diluted
$ 0.63 
$ 0.83 
$ 0.75 
$ 0.74 
$ 0.35 1
$ 0.73 1
$ 0.60 1
$ 0.72 1
$ 2.95 
$ 2.37 
$ 2.12 
Class A [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Less dividends:
 
 
 
 
 
 
 
 
129 
94 
87 
Undistributed earnings
 
 
 
 
 
 
 
 
896 
612 
606 
Weighted average number of shares outstanding - Basic
 
 
 
 
 
 
 
 
335 
284 
282 
Net Income Per Share from Continuing Operations Attributable to Tyson - Basic
 
 
 
 
 
 
 
 
$ 3.06 
$ 2.48 
$ 2.46 
Net Income Per Share Attributable to Tyson - Basic
$ 0.65 
$ 0.86 
$ 0.78 
$ 0.77 
$ 0.37 1
$ 0.75 1
$ 0.64 1
$ 0.76 1
$ 3.06 
$ 2.48 
$ 2.26 
Class B [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Less dividends:
 
 
 
 
 
 
 
 
26 
21 
19 
Undistributed earnings
 
 
 
 
 
 
 
 
$ 169 
$ 137 
$ 136 
Weighted average number of shares outstanding - Basic
 
 
 
 
 
 
 
 
70 
70 
70 
Net Income Per Share from Continuing Operations Attributable to Tyson - Basic
 
 
 
 
 
 
 
 
$ 2.79 
$ 2.26 
$ 2.22 
Net Income Per Share Attributable to Tyson - Basic
$ 0.59 
$ 0.78 
$ 0.71 
$ 0.71 
$ 0.32 
$ 0.68 
$ 0.58 
$ 0.68 
$ 2.79 
$ 2.26 
$ 2.04 
Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
Number of classes of common stock
2 
 
 
Cash Dividends, Paid Ratio To Other Class Of Stock, Maximum
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-based compensation [Member]
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
5 
4 
0 
Derivative Financial Instruments (Aggregate Outstanding Notionals) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
bu
Sep. 27, 2014
bu
Corn (in bushels)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
18,000,000 
0 
Soy Meal (in tons)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
284,900 
198,100 
Live Cattle (in pounds)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
102,000,000 
405,000,000 
Lean Hogs (in pounds)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
166,000,000 
350,000,000 
Foreign Exchange Contract [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
$ 42 
$ 109 
Derivative Financial Instruments (Pretax Impact Of Cash Flow Hedge Derivative Instruments On The Consolidated Statements Of Income) (Details) (Cash Flow Hedge [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ (4)
$ (8)
$ (31)
Gain/(Loss) Reclassified from OCI to Earnings
(7)
(10)
(9)
Commodity Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
(4)
(7)
(29)
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Reclassified from OCI to Earnings
(7)
(10)
(5)
Foreign Currency [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
0 
(1)
(2)
Foreign Currency [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Reclassified from OCI to Earnings
$ 0 
$ 0 
$ (4)
Derivative Financial Instruments (Pretax Impact Of Fair Value Hedge Derivative Instruments On The Consolidated Statements of Income) (Details) (Fair Value Hedging [Member], Cost of Sales [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Forward Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) on forwards
$ 17 
$ (154)
$ 21 
Purchase Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) on forwards
$ (17)
$ 154 
$ (21)
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
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
$ (99)
$ (61)
$ (32)
Commodity Contracts [Member] |
Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
(62)
75 
(10)
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
(33)
(136)
(24)
Foreign Currency [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
$ (4)
$ 0 
$ 2 
Derivative Financial Instruments (Narrative) (Details) (Grain [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Grain [Member]
 
Derivative [Line Items]
 
Cash flow hedge gain (loss) to be reclassified within twelve months
$ (1)
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative assets and liabilities posted cash collateral
$ 5 
$ 98 
Derivative, Collateral, Obligation to Return Cash
0 
 
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Portion Attributable to Parent
0 
 
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(44)1
(50)1
Available-for-sale Securities, Current
2 
1 
Available-for-sale Securities, Noncurrent
93 
92 
Deferred Compensation Assets
231 
233 
Total Assets
343 
335 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(49)1
(148)1
Total Liabilities
2 
12 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Current
0 
0 
Available-for-sale Securities, Noncurrent
0 
1 
Deferred Compensation Assets
9 
15 
Total Assets
9 
16 
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]
 
 
Available-for-sale Securities, Current
1 
1 
Available-for-sale Securities, Noncurrent
33 
24 
Deferred Compensation Assets
222 
218 
Total Assets
317 
302 
Total Liabilities
51 
160 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Current
1 
0 
Available-for-sale Securities, Noncurrent
60 
67 
Deferred Compensation Assets
0 
0 
Total Assets
61 
67 
Total Liabilities
0 
0 
Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
17 
0 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(35)1
(17)1
Derivatives Liabilities
0 
0 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(2)1
(78)1
Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
0 
Derivatives Liabilities
0 
0 
Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
52 
17 
Derivatives Liabilities
2 
78 
Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
0 
Derivatives Liabilities
0 
0 
Not Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
9 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(9)1
(33)1
Derivatives Liabilities
2 
12 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(47)1
(70)1
Not Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
0 
Derivatives Liabilities
0 
0 
Not Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
9 
42 
Derivatives Liabilities
49 
82 
Not Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
0 
Derivatives Liabilities
0 
0 
Common Stock and Warrants [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net
$ 0 
$ 6 
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Balance at beginning of year
$ 67 
$ 65 
Total realized and unrealized gains (losses), Included in earnings
0 
0 
Total realized and unrealized gains (losses), Included in other comprehensive income (loss)
0 
0 
Purchases
20 
25 
Issuances
0 
0 
Settlements
(26)
(23)
Balance at end of year
61 
67 
Total gains (losses) for the periods included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of year
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
U.S. Treasury and Agency [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
$ 33 
$ 25 
Fair Value
34 
25 
Unrealized Gain/(Loss)
1 
0 
Corporate And Asset-Backed [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
60 
65 
Fair Value
61 
67 
Unrealized Gain/(Loss)
1 
2 
Common Stock [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
0 1
1 1
Fair Value
0 1
1 1
Unrealized Gain/(Loss)
0 1
0 1
Cumulative Other-than-Temporary Impairment Loss
 
2 
Common Stock and Warrants [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cumulative Other-than-Temporary Impairment Loss
$ 0 
 
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Fair Value Disclosures [Abstract]
 
 
Debt Instrument, Fair Value Disclosure
$ 6,900 
$ 8,347 
Total Debt, Carrying Value
$ 6,725 
$ 8,178 
Fair Value Measurements Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Oct. 3, 2015
Accounts Receivable [Member]
Customer Concentration Risk [Member]
Wal-Mart Stores, Inc. [Member]
Sep. 27, 2014
Accounts Receivable [Member]
Customer Concentration Risk [Member]
Wal-Mart Stores, Inc. [Member]
Oct. 3, 2015
Beef [Member]
Sep. 27, 2014
Beef [Member]
Oct. 3, 2015
Prepared Foods [Member]
Sep. 27, 2014
Prepared Foods [Member]
Oct. 3, 2015
Other [Member]
Sep. 27, 2014
Other [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Other [Member]
Sep. 27, 2014
Other [Member]
Chicken Production Operations in Brazil [Member]
Level 3 [Member]
Sep. 27, 2014
Other [Member]
Chicken Production Operations in Brazil [Member]
Oct. 3, 2015
Facility Closing [Member]
Operating Segments [Member]
Beef [Member]
Oct. 3, 2015
Facility Closing [Member]
Operating Segments [Member]
Prepared Foods [Member]
Jun. 28, 2014
Facility Closing [Member]
Operating Segments [Member]
Prepared Foods [Member]
Facilities
Sep. 27, 2014
Facility Closing [Member]
Operating Segments [Member]
Prepared Foods [Member]
Facilities
Oct. 3, 2015
Facility Closing [Member]
Operating Segments [Member]
Cost of Sales [Member]
Prepared Foods [Member]
Oct. 3, 2015
Facility Closing [Member]
Operating Segments [Member]
Selling, General and Administrative Expenses [Member]
Prepared Foods [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Other [Member]
Sep. 27, 2014
Fair Value, Measurements, Nonrecurring [Member]
Other [Member]
Chicken Production Operations in Brazil [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Beef [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Prepared Foods [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Prepared Foods [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Cost of Sales [Member]
Prepared Foods [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Selling, General and Administrative Expenses [Member]
Prepared Foods [Member]
Oct. 3, 2015
Common Stock and Warrants [Member]
Sep. 27, 2014
Common Stock and Warrants [Member]
Oct. 3, 2015
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 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 6 
 
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Portion Attributable to Parent
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Impairment Charges
285 
107 
74 
 
 
 
 
 
 
 
 
 
169 
169 
 
39 
12 
59 
49 
52 
49 
10 
169 
39 
12 
59 
52 
49 
10 
 
 
 
Property, Plant and Equipment, Transfers and Changes
 
 
 
 
 
 
 
 
 
 
 
126 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, Impairment Loss
23 
5 
 
 
 
0 
0 
0 
0 
23 1
5 1
23 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of other assets
 
 
 
 
 
 
 
 
 
 
 
20 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plants Closed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
3 
 
 
 
 
 
 
 
 
 
 
 
 
Assets Held-for-sale, Long Lived, Fair Value Disclosure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 144 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Concentration, Percentage
 
 
 
20.00% 
18.60% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-Based Compensation (Summary Of Stock Options) (Details) (Stock Options [Member], USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Stock Options [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Shares Under Option - Outstanding, September 27, 2014
13,724,409 
Shares Under Option - Exercised
(3,900,576)
Shares Under Option - Canceled
(177,491)
Shares Under Option - Granted
5,088,723 
Shares Under Option - Outstanding, October 3, 2015
14,735,065 
Weighted Average Exercise Price Per Share - Outstanding, September 27, 2014
$ 21.30 
Weighted Average Exercise Price Per Share - Exercised
$ 21.47 
Weighted Average Exercise Price Per Share - Canceled
$ 37.23 
Weighted Average Exercise Price Per Share - Granted
$ 42.26 
Weighted Average Exercise Price Per Share - Outstanding, October 3, 2015
$ 28.30 
Weighted Average Remaining Contractual Life (in Years) - Outstanding, October 3, 2015
7 years 1 month 
Aggregate Intrinsic Value - Outstanding, October 3, 2015
$ 237 
Shares Under Option - Exercisable, October 3, 2015
6,789,969 
Weighted Average Exercise Price Per Share - Exercisable at October 3, 2015
$ 18.73 
Weighted Average Remaining Contractual Life (in Years) - Exercisable, October 3, 2015
5 years 5 months 
Aggregate Intrinsic Value - Exercisable, October 3, 2015
$ 174 
Stock-Based Compensation (Assumption Of Fair Value Calculation Of Each Year's Grants) (Details)
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
 
 
 
Expected life (in years)
6 years 1 month 
6 years 
6 years 2 months 
Risk-free interest rate
1.60% 
1.30% 
0.70% 
Expected volatility
26.70% 
36.00% 
36.80% 
Expected dividend yield
1.00% 
1.00% 
1.00% 
Stock-Based Compensation (Summary Of Restricted Stock) (Details) (Restricted Stock [Member], USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
 
 
Number of Shares - Nonvested, September 27, 2014
938,944 
 
 
Number of Shares - Granted
742,036 
 
 
Number of Shares - Dividends
11,431 
 
 
Number of Shares - Vested
(520,964)
(600,000)
(1,400,000)
Number of Shares - Forfeited
(63,519)
 
 
Number of Shares - Nonvested, October 3, 2015
1,107,928 
938,944 
 
Weighted Average Grant Date Fair Value Per Share - Nonvested, September 27, 2014
$ 23.18 
 
 
Weighted Average Grant-Date Fair Value Per Share - Granted
$ 42.39 
 
 
Weighted Average Grant-Date Fair Value Per Share - Dividends
$ 34.99 
 
 
Weighted Average Grant-Date Fair Value Per Share - Vested
$ 20.28 
 
 
Weighted Average Grant-Date Fair Value Per Share - Forfeited
$ 36.61 
 
 
Weighted Average Grant Date Fair Value Per Share - Nonvested, October 3, 2015
$ 36.76 
$ 23.18 
 
Weighted Average Remaining Contractual Life (in Years), Nonvested, October 3, 2015
1 year 7 months 
 
 
Aggregate Intrinsic Value - Nonvested, October 3, 2015
$ 49 
 
 
Stock-Based Compensation (Summary of Performance-Based Shares) (Details) (Performance Shares [Member], USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Performance Shares [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
 
Number of Shares - Nonvested, September 27, 2014
1,403,603 
Number of Shares - Granted
522,746 
Number of Shares - Vested
(25,922)
Number of Shares - Forfeited
(65,327)
Number of Shares - Nonvested, October 3, 2015
1,835,100 
Weighted Average Grant Date Fair Value Per Share - Nonvested, September 27, 2014
$ 26.77 
Weighted Average Grant-Date Fair Value Per Share - Granted
$ 46.16 
Weighted Average Grant-Date Fair Value Per Share - Vested
$ 17.36 
Weighted Average Grant-Date Fair Value Per Share - Forfeited
$ 37.98 
Weighted Average Grant Date Fair Value Per Share - Nonvested, October 3, 2015
$ 32.03 
Weighted Average Remaining Contractual Life (in Years), Nonvested, October 3, 2015
0 years 11 months 
Aggregate Intrinsic Value - Nonvested, October 3, 2015
$ 81 
Stock-Based Compensation (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Shares available for future grant
24,293,913 
 
 
Stock Options [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
3 years 
 
 
Expiration period
10 years 
 
 
Grant-date fair value of options granted
$ 11.51 
$ 10.83 
$ 6.44 
Stock-based compensation expense, net of income taxes
$ 27 
$ 20 
$ 14 
Related tax benefit
17 
13 
9 
Options vested (in shares)
3,800,000 
4,800,000 
3,900,000 
Grant date fair value of options vested
32 
30 
22 
Cash received from exercise of stock options
84 
67 
123 
Tax benefit related to stock options exercised
30 
33 
35 
Total intrinsic value of options exercised
79 
87 
90 
Amount realized, related to excess tax deductions
19 
24 
18 
Total unrecognized compensation cost related to stock option plans
45 
 
 
Total unrecognized compensation cost, time frame for recognition, weighted average number of years
1 year 5 months 
 
 
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock-based compensation expense, net of income taxes
9 
6 
5 
Related tax benefit
6 
4 
3 
Number of Shares - Vested
(520,964)
(600,000)
(1,400,000)
Total unrecognized compensation cost, time frame for recognition, weighted average number of years
2 years 1 month 
 
 
Total unrecognized compensation cost related to share-based awards other than options
24 
 
 
Restricted stock awards, grant date fair value of shares vested
10 
11 
20 
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
3 years 
 
 
Stock-based compensation expense, net of income taxes
5 
4 
2 
Related tax benefit
3 
2 
2 
Number of Shares - Vested
(25,922)
 
 
Total unrecognized compensation cost, time frame for recognition, weighted average number of years
1 year 8 months 
 
 
Total unrecognized compensation cost related to share-based awards other than options
$ 11 
 
 
Performance Shares [Member] |
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting rights, performance criteria
0.00% 
 
 
Performance Shares [Member] |
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting rights, performance criteria
200.00% 
 
 
Pensions And Other Postretirement Benefits (Reconciliation Of Changes In Plans' Benefit Obligations, Assets And Funded Status) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
$ 1,650 
 
 
Employer contributions
14 
9 
8 
Ending balance
1,576 
1,650 
 
Funded Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
1,849 
86 
 
Service cost
10 
1 
0 
Interest cost
78 
10 
4 
Plan Amendments
0 
0 
 
Plan participants' contributions
0 
0 
 
Actuarial (gain) loss
(50)
(37)
 
Benefits paid
(102)
(11)
 
Business acquisition
0 
1,800 
 
Benefit obligation at end of year
1,785 
1,849 
86 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
1,647 
85 
 
Actual return on plan assets
25 
(36)
 
Employer contributions
6 
6 
 
Plan participants' contributions
0 
0 
 
Benefits paid
(102)
(11)
 
Business acquisition
0 
1,603 
 
Other
0 
0 
 
Ending balance
1,576 
1,647 
85 
Funded status
(209)
(202)
 
Unfunded Non-Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
182 
85 
 
Service cost
8 
7 
5 
Interest cost
8 
5 
3 
Plan Amendments
0 
0 
 
Plan participants' contributions
0 
0 
 
Actuarial (gain) loss
11 
15 
 
Benefits paid
(8)
(3)
 
Business acquisition
0 
73 
 
Benefit obligation at end of year
201 
182 
85 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
3 
0 
 
Actual return on plan assets
0 
0 
 
Employer contributions
8 
3 
 
Plan participants' contributions
0 
0 
 
Benefits paid
(8)
(3)
 
Business acquisition
0 
3 
 
Other
(3)
0 
 
Ending balance
0 
3 
0 
Funded status
(201)
(179)
 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
163 
71 
 
Service cost
5 
2 
2 
Interest cost
7 
3 
2 
Plan Amendments
(60)
0 
 
Plan participants' contributions
2 
1 
 
Actuarial (gain) loss
9 
(8)
 
Benefits paid
(12)
(6)
 
Business acquisition
0 
100 
 
Benefit obligation at end of year
114 
163 
71 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
0 
0 
 
Actual return on plan assets
0 
0 
 
Employer contributions
10 
5 
 
Plan participants' contributions
2 
1 
 
Benefits paid
(12)
(6)
 
Business acquisition
0 
0 
 
Other
0 
0 
 
Ending balance
0 
0 
0 
Funded status
$ (114)
$ (163)
 
Pensions And Other Postretirement Benefits (Amounts Recognized In The Consolidated Balance Sheets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Funded Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other current liabilities
$ 0 
$ 0 
Other liabilities
(209)
(202)
Pension and Other Postretirement Defined Benefit Plans, Liabilities
(209)
(202)
Unfunded Non-Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other current liabilities
(9)
(5)
Other liabilities
(192)
(174)
Pension and Other Postretirement Defined Benefit Plans, Liabilities
(201)
(179)
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other current liabilities
(20)
(7)
Other liabilities
(94)
(156)
Pension and Other Postretirement Defined Benefit Plans, Liabilities
$ (114)
$ (163)
Pensions And Other Postretirement Benefits Pensions and Other Postretirement Benefits (Amounts Recognized in Other Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Funded Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive (income)/loss, Actuarial loss
$ 57 
$ 39 
Accumulated other comprehensive (income)/loss, Prior service cost/(credit)
0 1
0 1
Total accumulated other comprehensive (income)/loss
57 
39 
Unfunded Non-Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive (income)/loss, Actuarial loss
43 
36 
Accumulated other comprehensive (income)/loss, Prior service cost/(credit)
0 1
0 1
Total accumulated other comprehensive (income)/loss
43 
36 
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive (income)/loss, Actuarial loss
0 
0 
Accumulated other comprehensive (income)/loss, Prior service cost/(credit)
(59)1
(2)1
Total accumulated other comprehensive (income)/loss
$ (59)
$ (2)
Pensions And Other Postretirement Benefits (Plans With Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Funded Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Projected benefit obligation
$ 1,781 
$ 1,829 
Accumulated benefit obligation
1,781 
1,829 
Fair value of plan assets
1,572 
1,627 
Unfunded Non-Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Projected benefit obligation
201 
182 
Accumulated benefit obligation
193 
172 
Fair value of plan assets
$ 0 
$ 3 
Pensions And Other Postretirement Benefits (Components Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans Recognized In The Consolidated Statements Of Income) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Funded Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
$ 10 
$ 1 
$ 0 
Interest cost
78 
10 
4 
Expected return on plan assets
(102)
(13)
(5)
Amortization of prior service cost
0 
0 
0 
Recognized actuarial (gain) loss, net
2 
2 
4 
Recognized settlement (gain) loss
8 
0 
0 
Net periodic benefit (credit) cost
(4)
0 
3 
Unfunded Non-Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
8 
7 
5 
Interest cost
8 
5 
3 
Expected return on plan assets
0 
0 
0 
Amortization of prior service cost
0 
0 
1 
Recognized actuarial (gain) loss, net
4 
2 
3 
Recognized settlement (gain) loss
0 
0 
0 
Net periodic benefit (credit) cost
20 
14 
12 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
5 
2 
2 
Interest cost
7 
3 
2 
Expected return on plan assets
0 
0 
0 
Amortization of prior service cost
(1)
0 
(1)
Recognized actuarial (gain) loss, net
9 
(8)
7 
Recognized settlement (gain) loss
(2)
0 
0 
Net periodic benefit (credit) cost
$ 18 
$ (3)
$ 10 
Pensions And Other Postretirement Benefits (Weighted Average Assumptions) (Details)
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Funded Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
4.32% 
4.37% 
4.02% 
Discount rate to determine benefit obligations
4.47% 
4.32% 
4.77% 
Rate of compensation increase
0.01% 
0.01% 
 
Expected return on plan assets
4.61% 
6.37% 
5.44% 
Unfunded Non-Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
4.36% 
5.01% 
4.23% 
Discount rate to determine benefit obligations
4.41% 
4.36% 
5.09% 
Rate of compensation increase
2.31% 
2.11% 
3.50% 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
3.97% 
4.41% 
3.66% 
Discount rate to determine benefit obligations
3.54% 
3.97% 
4.48% 
Pensions And Other Postretirement Benefits (Health Care Cost Trend Rates) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Compensation and Retirement Disclosure [Abstract]
 
One Percentage Point Increase, Effect on postretirement benefit obligation
$ 8 
One Percentage Point Decrease, Effect on postretirement benefit obligation
7 
One Percentage Point Increase, Effect on total service and interest components
0 
One Percentage Point Decrease, Effect on total service and interest components
$ 0 
Pensions And Other Postretirement Benefits (Actual And Target Asset Allocation For Pension Plan Assets) (Details)
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
100.00% 
100.00% 
Target Plan Asset Allocations
100.00% 
 
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
0.30% 
4.90% 
Target Plan Asset Allocations
0.00% 
 
Fixed Income Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
85.40% 
80.50% 
Target Plan Asset Allocations
86.00% 
 
Equity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
11.00% 
 
Real Estate [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
3.60% 
2.00% 
Target Plan Asset Allocations
3.50% 
 
Other [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
0.00% 
0.40% 
Target Plan Asset Allocations
0.00% 
 
U.S. Stock Funds [Member] |
Equity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
3.90% 
6.00% 
Target Plan Asset Allocations
4.00% 
 
International Stock Funds [Member] |
Equity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
6.80% 
6.20% 
Target Plan Asset Allocations
6.50% 
 
Pensions And Other Postretirement Benefits (Categories Of Pension Plan Assets And Level Under Which Fair Values Were Determined In Fair Value Hierarchy) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
$ 1,576 
$ 1,650 
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
5 
79 
Total Fixed Income Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
1,334 
1,317 
Bond and Fixed Income Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
1,334 
377 
Corporate Bonds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
680 
Government and Municipal Bonds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
253 
Mortgage Backed Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
7 
Total Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
223 
232 
US Securities Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
61 
84 
Non-US Securities Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
106 
101 
Commodity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
14 
Global Real Estate Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
56 
33 
Other [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
7 
Insurance Contract At Contract Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
14 
15 
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
5 
79 
Level 1 [Member] |
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
5 
79 
Level 1 [Member] |
Total Fixed Income Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
0 
Level 1 [Member] |
Bond and Fixed Income Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
0 
Level 1 [Member] |
Corporate Bonds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 
Level 1 [Member] |
Government and Municipal Bonds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 
Level 1 [Member] |
Mortgage Backed Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 
Level 1 [Member] |
Total Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
0 
Level 1 [Member] |
US Securities Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
0 
Level 1 [Member] |
Non-US Securities Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
0 
Level 1 [Member] |
Commodity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 
Level 1 [Member] |
Global Real Estate Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
0 
Level 1 [Member] |
Other [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 
Level 1 [Member] |
Insurance Contract At Contract Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
0 
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
1,557 1
1,549 1
Level 2 [Member] |
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 1
0 1
Level 2 [Member] |
Total Fixed Income Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
1,334 1
1,310 1
Level 2 [Member] |
Bond and Fixed Income Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
1,334 1
377 1
Level 2 [Member] |
Corporate Bonds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
680 1
Level 2 [Member] |
Government and Municipal Bonds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
253 1
Level 2 [Member] |
Mortgage Backed Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 1
Level 2 [Member] |
Total Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
223 1
232 1
Level 2 [Member] |
US Securities Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
61 1
84 1
Level 2 [Member] |
Non-US Securities Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
106 1
101 1
Level 2 [Member] |
Commodity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
14 1
Level 2 [Member] |
Global Real Estate Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
56 1
33 1
Level 2 [Member] |
Other [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
7 1
Level 2 [Member] |
Insurance Contract At Contract Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 1
0 1
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
14 2
22 2
Level 3 [Member] |
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 2
0 2
Level 3 [Member] |
Total Fixed Income Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 2
7 2
Level 3 [Member] |
Bond and Fixed Income Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 2
0 2
Level 3 [Member] |
Corporate Bonds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 2
Level 3 [Member] |
Government and Municipal Bonds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 2
Level 3 [Member] |
Mortgage Backed Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
7 2
Level 3 [Member] |
Total Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 2
0 2
Level 3 [Member] |
US Securities Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 2
0 2
Level 3 [Member] |
Non-US Securities Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 2
0 2
Level 3 [Member] |
Commodity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 2
Level 3 [Member] |
Global Real Estate Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 2
0 2
Level 3 [Member] |
Other [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
 
0 2
Level 3 [Member] |
Insurance Contract At Contract Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
$ 14 2
$ 15 2
Pensions And Other Postretirement Benefits (Reconciliation Of Change In Fair Value Measurement Of Defined Benefit Plans' Consolidated Assets Using Significant Unobservable Inputs) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 27, 2014
Mortgage Backed Securities [Member]
Oct. 3, 2015
Insurance Contract [Member]
Sep. 27, 2014
Insurance Contract [Member]
Oct. 3, 2015
Level 3 [Member]
Oct. 3, 2015
Level 3 [Member]
Mortgage Backed Securities [Member]
Oct. 3, 2015
Level 3 [Member]
Insurance Contract [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
 
 
 
 
 
Beginning balance
$ 1,576 
$ 1,650 
$ 7 
$ 14 
$ 15 
$ 22 1
$ 7 1
$ 15 1
Assets still held at reporting date
 
 
 
 
 
0 
0 
0 
Assets sold during the period
 
 
 
 
 
0 
0 
0 
Purchases, sales and settlements, net
 
 
 
 
 
(8)
(7)
(1)
Transfers in and/or out of Level 3
 
 
 
 
 
0 
0 
0 
Ending balance
$ 1,576 
$ 1,650 
$ 7 
$ 14 
$ 15 
$ 14 1
$ 0 
$ 14 1
Pensions And Other Postretirement Benefits (Estimated Future Benefit Payments Expected To Be Paid) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Funded Qualified Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2016
$ 81 
2017
83 
2018
87 
2019
89 
2020
92 
2021-2025
508 
Unfunded Non-Qualified Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2016
9 
2017
9 
2018
10 
2019
10 
2020
10 
2021-2025
59 
Other Postretirement Benefit Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2016
20 
2017
14 
2018
10 
2019
7 
2020
7 
2021-2025
$ 33 
Pensions And Other Postretirement Benefits (Multiemployer Plans) (Details) (Multiemployer Plans, Pension [Member], Bakery and Confectionary Union & Industry International Pension Fund [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Multiemployer Plans, Pension [Member] |
Bakery and Confectionary Union & Industry International Pension Fund [Member]
 
 
Multiemployer Plans [Line Items]
 
 
Multiemployer plan, contributions
$ 1 
$ 1 
Surcharge Imposed
10.00% 
 
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date
Oct. 10, 2015 1
 
Pensions And Other Postretirement Benefits (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
plan
Sep. 27, 2014
plan
Sep. 28, 2013
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Number of Plans
9 
 
 
Defined contribution retirement programs, expenses recognized
$ 62 
$ 53 
$ 50 
Number of defined benefit plans with accumulated benefit obligations in excess of plan assets
8 
7 
 
Healthcare cost trend rate, assumed, retirees who do qualify for Medicare
9.00% 
 
 
Healthcare cost trend rate, assumed, retirees who do not yet qualify for Medicare
7.60% 
 
 
Healthcare cost trend rate, ultimate rate
4.50% 
 
 
Defined benefit pension plan assets
1,576 
1,650 
 
Plan asset allocations
100.00% 
100.00% 
 
Expected contributions to pension plans for fiscal 2016
63 
 
 
Defined benefit plans funding
14 
9 
8 
Multiemployer Plans, Pension [Member] |
Bakery and Confectionary Union & Industry International Pension Fund [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Multiemployer plan, contributions
1 
1 
 
Multiemployer Plans, Pension [Member] |
Bakery and Confectionary Union & Industry International Pension Fund [Member] |
Pension and Other Postretirement Plans, Contributions, Total [Member] |
Multiemployer Plans Concentration Risk [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Concentration, Percentage (less than)
5.00% 
 
 
Unfunded Non-Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Number of Unfunded Non-Qualified Plans
3 
 
 
Amounts expected to be reclassified to earnings within next 12 months
5 
 
 
Defined Benefit Plan, Benefit Obligation
201 
182 
85 
Defined benefit pension plan assets
0 
3 
0 
Defined benefit plans funding
8 
3 
 
Funded Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Number of Funded Qualified Plans
6 
 
 
Defined Benefit Plan, Number of Frozen and Noncontributory Qualified Plans
5 
 
 
Number of defined benefit plans
2 
 
 
Accumulated benefit obligation
1,785 
1,849 
 
Amounts expected to be reclassified to earnings within next 12 months
2 
 
 
Defined Benefit Plan, Benefit Obligation
1,785 
1,849 
86 
Defined benefit pension plan assets
1,576 
1,647 
85 
Defined benefit plans funding
6 
6 
 
Assumed Pension Plan Settlement Election Rate
50.00% 
 
 
Defined Benefit Plan, Settlements, Plan Assets
252 
 
 
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements
2 
 
 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amounts expected to be reclassified to earnings within next 12 months
(18)
 
 
Defined Benefit Plan, Benefit Obligation
114 
163 
71 
Defined benefit pension plan assets
0 
0 
0 
Defined benefit plans funding
10 
5 
 
Postretirement Health Coverage [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Number of Plans Subject to Partial Settlement, Health and Life Insurance Related
5 
 
 
Defined Benefit Plans, Not Impacted by Heathcare Cost Trend Rates
2 
 
 
Defined Benefit Plan, Benefit Obligation Not Impacted by Healthcare Cost Trend Due to Plan Amendments
23 
 
 
Defined Benefit Plan, Benefit Obligation Not Impacted by Healthcare Cost Trend
24 
 
 
Defined Benefit Plan, Benefit Obligation
67 
 
 
Defined Benefit Plans, Not Impacted by Heathcare Cost Trend Rates, Consisting of Fixed Annual Payments
1 
 
 
Defined Benefit Plans, Not Impacted by Heathcare Cost Trend Rates, Life Insurance Related
1 
 
 
Foreign Subsidiary Pension Benefit Plans [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Number of defined benefit plans
1 
 
 
Defined benefit pension plan assets
$ 14 
$ 15 
 
Fixed Income Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan asset allocations
85.40% 
80.50% 
 
Equity Funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan asset allocations
11.00% 
 
 
Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Unrealized net hedging gain (loss)
$ (1)
$ (3)
Unrealized net gain (loss) on investments
1 
2 
Currency translation adjustment
(63)
(99)
Postretirement benefits reserve adjustments
(27)
(47)
Total accumulated other comprehensive loss
$ (90)
$ (147)
Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Other Comprehensive Income Loss [Line Items]
 
 
 
Other comprehensive income (loss), Before Tax
$ 64 
$ (47)
$ (51)
Other comprehensive income (loss), Income Tax
(7)
8 
6 
Total Other Comprehensive Income (Loss), Net of Taxes
57 
(39)
(45)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Other Comprehensive Income (Loss), before Reclassifications, before Tax
(4)
(8)
(31)
Other Comprehensive Income (Loss), before Reclassifications, Tax
2 
3 
12 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
(2)
(5)
(19)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] |
Cost of Sales [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax
7 
10 
5 
Reclassification from AOCI, Current Period, Tax
(3)
(4)
(2)
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
4 
6 
3 
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax
0 
0 
4 
Reclassification from AOCI, Current Period, Tax
0 
0 
(2)
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
0 
2 
Investments [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Other Comprehensive Income (Loss), before Reclassifications, before Tax
21 
(2)
(4)
Other Comprehensive Income (Loss), before Reclassifications, Tax
(9)
0 
2 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
12 
(2)
(2)
Investments [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax
(21)
8 
(1)
Reclassification from AOCI, Current Period, Tax
8 
(2)
0 
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
(13)
6 
(1)
Currency Translation [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Other Comprehensive Income (Loss), before Reclassifications, before Tax
(86)
(32)
(20)
Other Comprehensive Income (Loss), before Reclassifications, Tax
15 
2 
3 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
(71)
(30)
(17)
Currency Translation [Member] |
Cost of Sales [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax
115 1
0 1
(19)1
Reclassification from AOCI, Current Period, Tax
(8)1
0 1
(1)1
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
107 1
0 1
(20)1
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Other comprehensive income (loss), Before Tax
32 
(23)
15 
Other comprehensive income (loss), Income Tax
(12)
9 
(6)
Total Other Comprehensive Income (Loss), Net of Taxes
$ 20 
$ (14)
$ 9 
Segment Reporting (Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 28, 2013
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 10,506 
$ 10,071 
$ 9,979 
$ 10,817 
$ 10,105 
$ 9,682 
$ 9,032 
$ 8,761 
$ 41,373 
$ 37,580 
$ 34,374 
Operating Income (Loss)
550 
563 
547 
509 
306 
351 
361 
412 
2,169 
1,430 
1,375 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
248 
178 
118 
Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
1,921 
1,252 
1,257 
Depreciation and Amortization
 
 
 
 
 
 
 
 
701 
520 
491 
Total Assets
23,004 
 
 
 
23,956 
 
 
 
23,004 
23,956 
12,177 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
854 
632 
558 
Operating Segments [Member] |
Chicken [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
11,390 
11,116 
10,988 
Operating Income (Loss)
 
 
 
 
 
 
 
 
1,366 
883 
683 
Depreciation and Amortization
 
 
 
 
 
 
 
 
272 
253 
253 
Total Assets
5,731 
 
 
 
4,807 
 
 
 
5,731 
4,807 
4,944 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
405 
307 
253 
Operating Segments [Member] |
Beef [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
17,236 
16,177 
14,400 
Operating Income (Loss)
 
 
 
 
 
 
 
 
(66)
347 
296 
Depreciation and Amortization
 
 
 
 
 
 
 
 
97 
91 
91 
Total Assets
3,009 
 
 
 
3,103 
 
 
 
3,009 
3,103 
2,798 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
113 
115 
105 
Operating Segments [Member] |
Pork [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
5,262 
6,304 
5,408 
Operating Income (Loss)
 
 
 
 
 
 
 
 
380 
455 
332 
Depreciation and Amortization
 
 
 
 
 
 
 
 
31 
33 
31 
Total Assets
927 
 
 
 
965 
 
 
 
927 
965 
931 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
50 
36 
22 
Operating Segments [Member] |
Prepared Foods [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
7,822 
3,927 
3,322 
Operating Income (Loss)
 
 
 
 
 
 
 
 
588 
(60)
101 
Depreciation and Amortization
 
 
 
 
 
 
 
 
280 
95 
67 
Total Assets
12,006 
 
 
 
8,608 
 
 
 
12,006 
8,608 
1,176 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
167 
77 
87 
Other [Member] |
Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
879 
1,381 
1,370 
Operating Income (Loss)
 
 
 
 
 
 
 
 
(99)
(195)
(37)
Depreciation and Amortization
 
 
 
 
 
 
 
 
21 
48 
49 
Total Assets
1,331 
 
 
 
6,473 
 
 
 
1,331 
6,473 
2,328 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
119 
97 
91 
Intersegment Elimination [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
(1,216)
(1,325)
(1,114)
Intersegment Elimination [Member] |
Chicken [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
18 
7 
16 
Intersegment Elimination [Member] |
Beef [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
351 
307 
226 
Intersegment Elimination [Member] |
Pork [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
$ 847 
$ 1,000 
$ 872 
Segment Reporting (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 28, 2013
Oct. 3, 2015
Segments
Sep. 27, 2014
Sep. 28, 2013
Oct. 3, 2015
UNITED STATES
Sep. 27, 2014
UNITED STATES
Oct. 3, 2015
UNITED STATES
Long-Lived Assets Excluding Goodwill and Intangibles [Member]
Sep. 27, 2014
UNITED STATES
Long-Lived Assets Excluding Goodwill and Intangibles [Member]
Oct. 3, 2015
Other than the United States [Member]
Sep. 27, 2014
Other than the United States [Member]
Oct. 3, 2015
Other than the United States [Member]
Long-Lived Assets Excluding Goodwill and Intangibles [Member]
Sep. 27, 2014
Other than the United States [Member]
Long-Lived Assets Excluding Goodwill and Intangibles [Member]
Oct. 3, 2015
Customer Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Wal-Mart Stores, Inc. [Member]
Sep. 27, 2014
Customer Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Wal-Mart Stores, Inc. [Member]
Sep. 28, 2013
Customer Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Wal-Mart Stores, Inc. [Member]
Oct. 3, 2015
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
UNITED STATES
Sep. 27, 2014
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
UNITED STATES
Sep. 28, 2013
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
UNITED STATES
Oct. 3, 2015
Export sales [Member]
UNITED STATES
Sep. 27, 2014
Export sales [Member]
UNITED STATES
Sep. 28, 2013
Export sales [Member]
UNITED STATES
Oct. 3, 2015
Chicken [Member]
Sep. 27, 2014
Chicken [Member]
Sep. 28, 2013
Chicken [Member]
Oct. 3, 2015
Beef [Member]
Sep. 27, 2014
Beef [Member]
Sep. 28, 2013
Beef [Member]
Oct. 3, 2015
Pork [Member]
Sep. 27, 2014
Pork [Member]
Sep. 28, 2013
Pork [Member]
Oct. 3, 2015
Prepared Foods [Member]
Sep. 27, 2014
Prepared Foods [Member]
Sep. 28, 2013
Prepared Foods [Member]
Oct. 3, 2015
Intersegment Sales [Member]
Sep. 27, 2014
Intersegment Sales [Member]
Sep. 28, 2013
Intersegment Sales [Member]
Oct. 3, 2015
Intersegment Sales [Member]
Chicken [Member]
Sep. 27, 2014
Intersegment Sales [Member]
Chicken [Member]
Sep. 28, 2013
Intersegment Sales [Member]
Chicken [Member]
Oct. 3, 2015
Intersegment Sales [Member]
Beef [Member]
Sep. 27, 2014
Intersegment Sales [Member]
Beef [Member]
Sep. 28, 2013
Intersegment Sales [Member]
Beef [Member]
Oct. 3, 2015
Intersegment Sales [Member]
Pork [Member]
Sep. 27, 2014
Intersegment Sales [Member]
Pork [Member]
Sep. 28, 2013
Intersegment Sales [Member]
Pork [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Jun. 27, 2015
Hillshire Brands Company [Member]
Mar. 28, 2015
Hillshire Brands Company [Member]
Dec. 27, 2014
Hillshire Brands Company [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Chicken [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Beef [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Pork [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Prepared Foods [Member]
Oct. 3, 2015
Maximum [Member]
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Other than the United States [Member]
Sep. 27, 2014
Maximum [Member]
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Other than the United States [Member]
Sep. 28, 2013
Maximum [Member]
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Other than the United States [Member]
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of segments
 
 
 
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Acquisition Related Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 8 
$ 16 
$ 14 
$ 19 
$ 47 
$ 59 
 
 
 
 
 
 
 
 
Goodwill
6,667 
 
 
 
6,706 
 
 
 
6,667 
6,706 
1,902 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,563 
907 
908 
676 
563 
563 
423 
317 
317 
4,005 
92 
75 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,800 
4,790 
658 
113 
106 
3,913 
 
 
 
Sales
10,506 
10,071 
9,979 
10,817 
10,105 
9,682 
9,032 
8,761 
41,373 
37,580 
34,374 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,100 
4,700 
4,200 
 
 
 
 
 
 
 
 
 
 
 
 
(1,216)
(1,325)
(1,114)
18 
7 
16 
351 
307 
226 
847 
1,000 
872 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Concentration, Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16.80% 
14.60% 
13.00% 
97.00% 
96.00% 
96.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.00% 
10.00% 
10.00% 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
$ 17,400 
$ 17,400 
$ 5,600 
$ 5,400 
$ 191 
$ 324 
$ 165 
$ 272 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental Cash Flow Information (Cash Payments For Interest And Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Supplemental Cash Flow Information [Abstract]
 
 
 
Interest, net of amounts capitalized
$ 308 
$ 118 
$ 114 
Income taxes, net of refunds
$ 437 
$ 590 
$ 310 
Commitments (Minimum Lease Commitments Under Non-Cancelable Leases) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Commitments and Contingencies Disclosure [Abstract]
 
2016
$ 125 
2017
98 
2018
72 
2019
48 
2020
39 
2021 and beyond
111 
Total
$ 493 
Commitments (Future Purchase Commitments) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Commitments and Contingencies Disclosure [Abstract]
 
2016
$ 1,655 
2017
434 
2018
278 
2019
117 
2020
92 
2021 and beyond
185 
Total
$ 2,761 
Commitments (Narrative) (Details) (USD $)
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Operating Leases, Rent Expense
$ 165,000,000 
$ 161,000,000 
$ 200,000,000 
Lease, Maximum Initial Term
7 years 
 
 
Guarantor Obligations [Line Items]
 
 
 
Potential maximum obligation under cash flow assistance program
310,000,000 
 
 
Total receivables under cash flow assistance program
0 
4,000,000 
 
Estimated uncollectible receivables under cash flow assistance program
0 
0 
 
Guarantee of Indebtedness of Others [Member]
 
 
 
Guarantor Obligations [Line Items]
 
 
 
Guarantor Obligations, Maximum Exposure, Period
10 years 
 
 
Maximum potential amount
38,000,000 
 
 
Residual Value Guarantees [Member]
 
 
 
Guarantor Obligations [Line Items]
 
 
 
Maximum potential amount
81,000,000 
 
 
Guarantor Obligations, Maximum Exposure, Remaining Lease Period
12 years 
 
 
Amount recoverable through various recourse provisions
$ 74,000,000 
 
 
Contingencies (Narrative) (Details)
0 Months Ended 1 Months Ended 0 Months Ended 12 Months Ended
Oct. 3, 2015
Claims
Sep. 22, 2014
Bouaphakeo Case [Member]
USD ($)
Aug. 25, 2014
Bouaphakeo Case [Member]
USD ($)
Jan. 30, 2014
Acosta Case [Member]
USD ($)
May 31, 2013
Acosta Case [Member]
USD ($)
Oct. 2, 2013
Gomez Case [Member]
USD ($)
Sep. 30, 2006
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
USD ($)
Sep. 30, 2006
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
PHP (?)
Jun. 23, 2014
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
USD ($)
Jun. 23, 2014
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
PHP (?)
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
Number of cases filed
7 
 
 
 
 
 
 
 
 
 
Loss contingency, damages awarded
 
 
$ 5,784,758 
$ 18,774,989 
$ 5,733,943 
$ 4,960,787 
$ 74,000,000 
? 3,453,664,710 
 
 
Loss contingency, damages sought
 
2,692,145 
 
 
6,258,330 
 
 
 
 
 
Loss contingency, range of possible loss, maximum
 
 
 
 
 
 
 
 
$ 7,000,000 
? 342,287,800 
Quarterly Financial Data (Unaudited) (Schedule Of Quarterly Financial Information) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 28, 2013
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Sales
$ 10,506 
$ 10,071 
$ 9,979 
$ 10,817 
$ 10,105 
$ 9,682 
$ 9,032 
$ 8,761 
$ 41,373 
$ 37,580 
$ 34,374 
Gross profit
986 
986 
989 
956 
712 
637 
651 
685 
3,917 
2,685 
2,358 
Operating Income
550 
563 
547 
509 
306 
351 
361 
412 
2,169 
1,430 
1,375 
Net Income
259 
344 
311 
310 
136 
258 
210 
252 
1,224 
856 
778 
Net Income Attributable to Tyson
$ 258 
$ 343 
$ 310 
$ 309 
$ 137 
$ 260 
$ 213 
$ 254 
$ 1,220 
$ 864 
$ 778 
Diluted (USD per share)
$ 0.63 
$ 0.83 
$ 0.75 
$ 0.74 
$ 0.35 1
$ 0.73 1
$ 0.60 1
$ 0.72 1
$ 2.95 
$ 2.37 
$ 2.12 
Class A [Member]
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 0.65 
$ 0.86 
$ 0.78 
$ 0.77 
$ 0.37 1
$ 0.75 1
$ 0.64 1
$ 0.76 1
$ 3.06 
$ 2.48 
$ 2.26 
Class B [Member]
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 0.59 
$ 0.78 
$ 0.71 
$ 0.71 
$ 0.32 
$ 0.68 
$ 0.58 
$ 0.68 
$ 2.79 
$ 2.26 
$ 2.04 
Quarterly Financial Data (Unaudited) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Oct. 3, 2015
Jun. 27, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Oct. 3, 2015
Operating Segments [Member]
Prepared Foods [Member]
Facility Closing [Member]
Jun. 28, 2014
Operating Segments [Member]
Prepared Foods [Member]
Facility Closing [Member]
Facilities
Sep. 27, 2014
Operating Segments [Member]
Prepared Foods [Member]
Facility Closing [Member]
Facilities
Oct. 3, 2015
Operating Segments [Member]
Beef [Member]
Facility Closing [Member]
Sep. 27, 2014
Other [Member]
Chicken Production Operations in Brazil and Mexico [Member]
Oct. 3, 2015
Cost of Sales [Member]
Chicken Production Operations in Mexico [Member]
Oct. 3, 2015
Cost of Sales [Member]
Chicken Production Operations in China [Member]
Oct. 3, 2015
Cost of Sales [Member]
Operating Segments [Member]
Prepared Foods [Member]
Facility Closing [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Jun. 27, 2015
Hillshire Brands Company [Member]
Mar. 28, 2015
Hillshire Brands Company [Member]
Dec. 27, 2014
Hillshire Brands Company [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Jun. 28, 2014
Hillshire Brands Company [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Quarterly Financial Data [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Acquisition Related Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 8 
$ 16 
$ 14 
$ 19 
 
 
$ 47 
$ 59 
Pre-Tax Loss Related to Legacy Hillshire Brands Plant Fire
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36 
 
 
 
 
Tax Expense Adjustment- related to tax contingencies
 
 
26 
12 
40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-Tax Gain due to Insurance Proceeds (Net of Costs) Related to a Legacy Hillshire Brands Plant Fire
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25 
11 
8 
 
 
 
 
 
Gain (Loss) on Sale of Equity Investments
 
21 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Impairment Charges
 
 
 
 
 
285 
107 
74 
59 
49 
52 
12 
 
 
169 
49 
 
 
 
 
 
 
 
 
Gain on disposition of Business
 
 
 
 
 
177 
0 
0 
 
 
 
 
 
161 
 
 
 
 
 
 
 
 
 
 
Estimated Pretax Impact of Additional Week
39 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition fees paid to third parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29 
 
 
Plants Closed
 
 
 
 
 
 
 
 
 
3 
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset impairment Charges and Undistributed Earnings Tax
 
 
 
 
 
 
 
 
 
 
 
 
42 
 
 
 
 
 
 
 
 
 
 
 
Net Income, Adjustment Hillshire Brands acquisition, integration and cost associated with the Prepared Foods improvement plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
119 
 
 
 
Net Income, Adjustment Hillshire Brands post- closing results, purchases price accounting adjustments and ongoing cost related to legacy Hillshire plant fire
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
40 
 
 
 
Net income, adjustment Hillshire Brands acquisition financing incremental interest cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 27 
 
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Sep. 27, 2014
Jun. 28, 2014
Mar. 29, 2014
Dec. 28, 2013
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 10,506 
$ 10,071 
$ 9,979 
$ 10,817 
$ 10,105 
$ 9,682 
$ 9,032 
$ 8,761 
$ 41,373 
$ 37,580 
$ 34,374 
Cost of Sales
 
 
 
 
 
 
 
 
37,456 
34,895 
32,016 
Gross Profit
986 
986 
989 
956 
712 
637 
651 
685 
3,917 
2,685 
2,358 
Selling, General and Administrative
 
 
 
 
 
 
 
 
1,748 
1,255 
983 
Operating Income
550 
563 
547 
509 
306 
351 
361 
412 
2,169 
1,430 
1,375 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
284 
125 
138 
Other, net
 
 
 
 
 
 
 
 
(36)
53 
(20)
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
248 
178 
118 
Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
1,921 
1,252 
1,257 
Income Tax Expense
 
 
 
 
 
 
 
 
697 
396 
409 
Income from Continuing Operations
 
 
 
 
 
 
 
 
1,224 
856 
848 
Loss from Discontinued Operation, Net of Tax
 
 
 
 
 
 
 
 
0 
0 
(70)
Net Income
259 
344 
311 
310 
136 
258 
210 
252 
1,224 
856 
778 
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
4 
(8)
0 
Net Income Attributable to Tyson
258 
343 
310 
309 
137 
260 
213 
254 
1,220 
864 
778 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
1,281 
817 
733 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
 
 
 
 
 
 
 
 
4 
(8)
0 
Comprehensive Income Attributable to Tyson
 
 
 
 
 
 
 
 
1,277 
825 
733 
TFI Parent [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
897 
579 
431 
Cost of Sales
 
 
 
 
 
 
 
 
26 
74 
40 
Gross Profit
 
 
 
 
 
 
 
 
871 
505 
391 
Selling, General and Administrative
 
 
 
 
 
 
 
 
128 
141 
68 
Operating Income
 
 
 
 
 
 
 
 
743 
364 
323 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
263 
63 
36 
Other, net
 
 
 
 
 
 
 
 
(22)
67 
4 
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
(925)
(731)
(582)
Total Other (Income) Expense
 
 
 
 
 
 
 
 
(684)
(601)
(542)
Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
1,427 
965 
865 
Income Tax Expense
 
 
 
 
 
 
 
 
207 
101 
87 
Income from Continuing Operations
 
 
 
 
 
 
 
 
1,220 
864 
778 
Loss from Discontinued Operation, Net of Tax
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income
 
 
 
 
 
 
 
 
1,220 
864 
778 
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income Attributable to Tyson
 
 
 
 
 
 
 
 
1,220 
864 
778 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
1,281 
817 
733 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
 
 
 
 
 
 
 
 
0 
0 
0 
Comprehensive Income Attributable to Tyson
 
 
 
 
 
 
 
 
1,281 
817 
733 
TFM Parent, Guarantors [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
22,155 
21,924 
19,243 
Cost of Sales
 
 
 
 
 
 
 
 
21,675 
20,971 
18,464 
Gross Profit
 
 
 
 
 
 
 
 
480 
953 
779 
Selling, General and Administrative
 
 
 
 
 
 
 
 
260 
240 
201 
Operating Income
 
 
 
 
 
 
 
 
220 
713 
578 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
2 
49 
62 
Other, net
 
 
 
 
 
 
 
 
(2)
(1)
(1)
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
(109)
(43)
(40)
Total Other (Income) Expense
 
 
 
 
 
 
 
 
(109)
5 
21 
Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
329 
708 
557 
Income Tax Expense
 
 
 
 
 
 
 
 
72 
227 
172 
Income from Continuing Operations
 
 
 
 
 
 
 
 
257 
481 
385 
Loss from Discontinued Operation, Net of Tax
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income
 
 
 
 
 
 
 
 
257 
481 
385 
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income Attributable to Tyson
 
 
 
 
 
 
 
 
257 
481 
385 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
291 
449 
380 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
 
 
 
 
 
 
 
 
0 
0 
0 
Comprehensive Income Attributable to Tyson
 
 
 
 
 
 
 
 
291 
449 
380 
Non-Guarantors [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
20,345 
16,926 
16,120 
Cost of Sales
 
 
 
 
 
 
 
 
17,774 
15,689 
14,932 
Gross Profit
 
 
 
 
 
 
 
 
2,571 
1,237 
1,188 
Selling, General and Administrative
 
 
 
 
 
 
 
 
1,365 
884 
714 
Operating Income
 
 
 
 
 
 
 
 
1,206 
353 
474 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
19 
13 
40 
Other, net
 
 
 
 
 
 
 
 
(12)
(13)
(23)
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
7 
0 
17 
Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
1,199 
353 
457 
Income Tax Expense
 
 
 
 
 
 
 
 
418 
68 
150 
Income from Continuing Operations
 
 
 
 
 
 
 
 
781 
285 
307 
Loss from Discontinued Operation, Net of Tax
 
 
 
 
 
 
 
 
0 
0 
(70)
Net Income
 
 
 
 
 
 
 
 
781 
285 
237 
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
4 
(8)
0 
Net Income Attributable to Tyson
 
 
 
 
 
 
 
 
777 
293 
237 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
840 
243 
212 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
 
 
 
 
 
 
 
 
4 
(8)
0 
Comprehensive Income Attributable to Tyson
 
 
 
 
 
 
 
 
836 
251 
212 
Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
(2,024)
(1,849)
(1,420)
Cost of Sales
 
 
 
 
 
 
 
 
(2,019)
(1,839)
(1,420)
Gross Profit
 
 
 
 
 
 
 
 
(5)
(10)
0 
Selling, General and Administrative
 
 
 
 
 
 
 
 
(5)
(10)
0 
Operating Income
 
 
 
 
 
 
 
 
0 
0 
0 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
0 
0 
0 
Other, net
 
 
 
 
 
 
 
 
0 
0 
0 
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
1,034 
774 
622 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
1,034 
774 
622 
Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
(1,034)
(774)
(622)
Income Tax Expense
 
 
 
 
 
 
 
 
0 
0 
0 
Income from Continuing Operations
 
 
 
 
 
 
 
 
(1,034)
(774)
(622)
Loss from Discontinued Operation, Net of Tax
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income
 
 
 
 
 
 
 
 
(1,034)
(774)
(622)
Net Income (Loss) Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income Attributable to Tyson
 
 
 
 
 
 
 
 
(1,034)
(774)
(622)
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
(1,131)
(692)
(592)
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
 
 
 
 
 
 
 
 
0 
0 
0 
Comprehensive Income Attributable to Tyson
 
 
 
 
 
 
 
 
$ (1,131)
$ (692)
$ (592)
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Sep. 29, 2012
Assets
 
 
 
 
Cash and cash equivalents
$ 688 
$ 438 
$ 1,145 
$ 1,071 
Accounts receivable, net
1,620 
1,684 
 
 
Inventories
2,878 
3,274 
 
 
Other current assets
195 
379 
 
 
Assets held for sale
0 
446 
 
 
Total Current Assets
5,381 
6,221 
 
 
Net Property, Plant and Equipment
5,176 
5,130 
 
 
Goodwill
6,667 
6,706 
1,902 
 
Intangible Assets
5,168 
5,276 
 
 
Other Assets
612 
623 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
23,004 
23,956 
12,177 
 
Liabilities and Shareholders’ Equity
 
 
 
 
Current debt
715 
643 
 
 
Accounts payable
1,662 
1,806 
 
 
Other current liabilities
1,158 
1,207 
 
 
Liabilities held for sale
0 
141 
 
 
Total Current Liabilities
3,535 
3,797 
 
 
Long-Term Debt
6,010 
7,535 
 
 
Deferred Income Taxes
2,449 
2,450 
 
 
Other Liabilities
1,304 
1,270 
 
 
Total Tyson Shareholders’ Equity
9,691 
8,890 
 
 
Noncontrolling Interests
15 
14 
 
 
Total Shareholders’ Equity
9,706 
8,904 
6,233 
 
Total Liabilities and Shareholders’ Equity
23,004 
23,956 
 
 
TFI Parent [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
1 
Accounts receivable, net
0 
3 
 
 
Inventories
1 
0 
 
 
Other current assets
43 
42 
 
 
Assets held for sale
0 
3 
 
 
Total Current Assets
44 
48 
 
 
Net Property, Plant and Equipment
26 
30 
 
 
Goodwill
0 
0 
 
 
Intangible Assets
0 
0 
 
 
Other Assets
129 
204 
 
 
Investment in Subsidiaries
21,850 
20,845 
 
 
Total Assets
22,049 
21,127 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
Current debt
710 
240 
 
 
Accounts payable
28 
35 
 
 
Other current liabilities
5,930 
4,718 
 
 
Liabilities held for sale
0 
0 
 
 
Total Current Liabilities
6,668 
4,993 
 
 
Long-Term Debt
5,498 
7,056 
 
 
Deferred Income Taxes
0 
21 
 
 
Other Liabilities
192 
167 
 
 
Total Tyson Shareholders’ Equity
9,691 
8,890 
 
 
Noncontrolling Interests
0 
0 
 
 
Total Shareholders’ Equity
9,691 
8,890 
 
 
Total Liabilities and Shareholders’ Equity
22,049 
21,127 
 
 
TFM Parent, Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
12 
41 
21 
9 
Accounts receivable, net
578 
665 
 
 
Inventories
1,009 
1,272 
 
 
Other current assets
91 
78 
 
 
Assets held for sale
0 
0 
 
 
Total Current Assets
1,690 
2,056 
 
 
Net Property, Plant and Equipment
975 
932 
 
 
Goodwill
881 
881 
 
 
Intangible Assets
10 
15 
 
 
Other Assets
146 
148 
 
 
Investment in Subsidiaries
2,177 
2,049 
 
 
Total Assets
5,879 
6,081 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
Current debt
1 
0 
 
 
Accounts payable
698 
755 
 
 
Other current liabilities
152 
235 
 
 
Liabilities held for sale
0 
0 
 
 
Total Current Liabilities
851 
990 
 
 
Long-Term Debt
1 
2 
 
 
Deferred Income Taxes
98 
96 
 
 
Other Liabilities
118 
125 
 
 
Total Tyson Shareholders’ Equity
4,811 
4,868 
 
 
Noncontrolling Interests
0 
0 
 
 
Total Shareholders’ Equity
4,811 
4,868 
 
 
Total Liabilities and Shareholders’ Equity
5,879 
6,081 
 
 
Non-Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
676 
397 
1,124 
1,061 
Accounts receivable, net
1,042 
1,016 
 
 
Inventories
1,868 
2,002 
 
 
Other current assets
147 
379 
 
 
Assets held for sale
0 
443 
 
 
Total Current Assets
3,733 
4,237 
 
 
Net Property, Plant and Equipment
4,175 
4,168 
 
 
Goodwill
5,786 
5,825 
 
 
Intangible Assets
5,158 
5,261 
 
 
Other Assets
337 
326 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
19,189 
19,817 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
Current debt
22 
403 
 
 
Accounts payable
936 
1,016 
 
 
Other current liabilities
939 
921 
 
 
Liabilities held for sale
0 
141 
 
 
Total Current Liabilities
1,897 
2,481 
 
 
Long-Term Debt
511 
532 
 
 
Deferred Income Taxes
2,351 
2,333 
 
 
Other Liabilities
994 
978 
 
 
Total Tyson Shareholders’ Equity
13,421 
13,479 
 
 
Noncontrolling Interests
15 
14 
 
 
Total Shareholders’ Equity
13,436 
13,493 
 
 
Total Liabilities and Shareholders’ Equity
19,189 
19,817 
 
 
Eliminations [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
0 
 
 
Inventories
0 
0 
 
 
Other current assets
(86)
(120)
 
 
Assets held for sale
0 
0 
 
 
Total Current Assets
(86)
(120)
 
 
Net Property, Plant and Equipment
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangible Assets
0 
0 
 
 
Other Assets
0 
(55)
 
 
Investment in Subsidiaries
(24,027)
(22,894)
 
 
Total Assets
(24,113)
(23,069)
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
Current debt
(18)
0 
 
 
Accounts payable
0 
0 
 
 
Other current liabilities
(5,863)
(4,667)
 
 
Liabilities held for sale
0 
0 
 
 
Total Current Liabilities
(5,881)
(4,667)
 
 
Long-Term Debt
0 
(55)
 
 
Deferred Income Taxes
0 
0 
 
 
Other Liabilities
0 
0 
 
 
Total Tyson Shareholders’ Equity
(18,232)
(18,347)
 
 
Noncontrolling Interests
0 
0 
 
 
Total Shareholders’ Equity
(18,232)
(18,347)
 
 
Total Liabilities and Shareholders’ Equity
$ (24,113)
$ (23,069)
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
$ 2,570 
$ 1,178 
$ 1,314 
Cash Flows from Investing Activities:
 
 
 
Additions to property, plant and equipment
(854)
(632)
(558)
(Purchases of)/Proceeds from marketable securities, net
14 
15 
(18)
Acquisitions, net of cash acquired
0 
(8,193)
(106)
Proceeds from sale of businesses
539 
0 
0 
Other, net
31 
10 
39 
Cash Provided by (Used for) Investing Activities
(270)
(8,800)
(643)
Cash Flows from Financing Activities:
 
 
 
Net change in debt
(1,494)
5,142 
(23)
Proceeds from issuance of common stock, net of issuance costs
0 
873 
0 
Proceeds from issuance of equity component of tangible equity units
0 
1,255 
0 
Purchases of Tyson Class A common stock
(495.00)
(295.00)
(614.00)
Dividends
(147)
(104)
(104)
Stock options exercised
84 
67 
123 
Other, net
17 
(23)
18 
Net change in intercompany balances
0 
0 
0 
Cash Provided by (Used for) Financing Activities
(2,035)
6,915 
(600)
Effect of Exchange Rate Change on Cash
(15)
0 
3 
Increase (Decrease) in Cash and Cash Equivalents
250 
(707)
74 
Cash and Cash Equivalents at Beginning of Year
438 
1,145 
1,071 
Cash and Cash Equivalents at End of Period
688 
438 
1,145 
TFI Parent [Member]
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
274 
132 
294 
Cash Flows from Investing Activities:
 
 
 
Additions to property, plant and equipment
0 
(1)
(4)
(Purchases of)/Proceeds from marketable securities, net
21 
0 
0 
Acquisitions, net of cash acquired
0 
(8,193)
0 
Proceeds from sale of businesses
0 
0 
0 
Other, net
23 
5 
0 
Cash Provided by (Used for) Investing Activities
44 
(8,189)
(4)
Cash Flows from Financing Activities:
 
 
 
Net change in debt
(1,092)
5,154 
5 
Proceeds from issuance of common stock, net of issuance costs
0 
873 
0 
Proceeds from issuance of equity component of tangible equity units
0 
1,255 
0 
Purchases of Tyson Class A common stock
(495.00)
(295.00)
(614.00)
Dividends
(147)
(104)
(104)
Stock options exercised
84 
67 
123 
Other, net
22 
(22)
18 
Net change in intercompany balances
1,310 
1,129 
281 
Cash Provided by (Used for) Financing Activities
(318)
8,057 
(291)
Effect of Exchange Rate Change on Cash
0 
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
0 
(1)
Cash and Cash Equivalents at Beginning of Year
0 
0 
1 
Cash and Cash Equivalents at End of Period
0 
0 
0 
TFM Parent, Guarantors [Member]
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
476 
431 
337 
Cash Flows from Investing Activities:
 
 
 
Additions to property, plant and equipment
(159)
(147)
(113)
(Purchases of)/Proceeds from marketable securities, net
0 
0 
(13)
Acquisitions, net of cash acquired
0 
0 
0 
Proceeds from sale of businesses
0 
0 
0 
Other, net
1 
2 
3 
Cash Provided by (Used for) Investing Activities
(158)
(145)
(123)
Cash Flows from Financing Activities:
 
 
 
Net change in debt
0 
0 
0 
Proceeds from issuance of common stock, net of issuance costs
0 
0 
0 
Proceeds from issuance of equity component of tangible equity units
0 
0 
0 
Purchases of Tyson Class A common stock
0 
0 
0 
Dividends
0 
0 
0 
Stock options exercised
0 
0 
0 
Other, net
0 
0 
0 
Net change in intercompany balances
(347)
(266)
(202)
Cash Provided by (Used for) Financing Activities
(347)
(266)
(202)
Effect of Exchange Rate Change on Cash
0 
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
(29)
20 
12 
Cash and Cash Equivalents at Beginning of Year
41 
21 
9 
Cash and Cash Equivalents at End of Period
12 
41 
21 
Non-Guarantors [Member]
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
1,841 
660 
696 
Cash Flows from Investing Activities:
 
 
 
Additions to property, plant and equipment
(695)
(484)
(441)
(Purchases of)/Proceeds from marketable securities, net
(7)
15 
(5)
Acquisitions, net of cash acquired
0 
0 
(106)
Proceeds from sale of businesses
539 
0 
0 
Other, net
7 
3 
36 
Cash Provided by (Used for) Investing Activities
(156)
(466)
(516)
Cash Flows from Financing Activities:
 
 
 
Net change in debt
(402)
(12)
(28)
Proceeds from issuance of common stock, net of issuance costs
0 
0 
0 
Proceeds from issuance of equity component of tangible equity units
0 
0 
0 
Purchases of Tyson Class A common stock
0 
0 
0 
Dividends
(21)
(45)
(13)
Stock options exercised
0 
0 
0 
Other, net
(5)
(1)
0 
Net change in intercompany balances
(963)
(863)
(79)
Cash Provided by (Used for) Financing Activities
(1,391)
(921)
(120)
Effect of Exchange Rate Change on Cash
(15)
0 
3 
Increase (Decrease) in Cash and Cash Equivalents
279 
(727)
63 
Cash and Cash Equivalents at Beginning of Year
397 
1,124 
1,061 
Cash and Cash Equivalents at End of Period
676 
397 
1,124 
Eliminations [Member]
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
(21)
(45)
(13)
Cash Flows from Investing Activities:
 
 
 
Additions to property, plant and equipment
0 
0 
0 
(Purchases of)/Proceeds from marketable securities, net
0 
0 
0 
Acquisitions, net of cash acquired
0 
0 
0 
Proceeds from sale of businesses
0 
0 
0 
Other, net
0 
0 
0 
Cash Provided by (Used for) Investing Activities
0 
0 
0 
Cash Flows from Financing Activities:
 
 
 
Net change in debt
0 
0 
0 
Proceeds from issuance of common stock, net of issuance costs
0 
0 
0 
Proceeds from issuance of equity component of tangible equity units
0 
0 
0 
Purchases of Tyson Class A common stock
0 
0 
0 
Dividends
21 
45 
13 
Stock options exercised
0 
0 
0 
Other, net
0 
0 
0 
Net change in intercompany balances
0 
0 
0 
Cash Provided by (Used for) Financing Activities
21 
45 
13 
Effect of Exchange Rate Change on Cash
0 
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
0 
0 
Cash and Cash Equivalents at Beginning of Year
0 
0 
0 
Cash and Cash Equivalents at End of Period
$ 0 
$ 0 
$ 0 
Condensed Consolidating Financial Statements (Narrative) (Details) (USD $)
Oct. 3, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
 
Amount available under credit facility
$ 1,250,000,000.00 
Valuation And Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 3, 2015
Sep. 27, 2014
Sep. 28, 2013
Allowance for Doubtful Accounts [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
$ 34 
$ 46 
$ 33 
Charged to Costs and Expenses
1 
5 
17 
Charged to Other Accounts
0 
0 
0 
(Deductions)
(8)
(17)
(4)
Balance at End of Period
27 
34 
46 
Inventory Lower of Cost or Market Allowance [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
7 
16 
24 
Charged to Costs and Expenses
99 
14 
49 
Charged to Other Accounts
0 
0 
0 
(Deductions)
(48)
(23)
(57)
Balance at End of Period
58 
7 
16 
Valuation Allowance on Deferred Tax Assets [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
51 
77 
78 
Charged to Costs and Expenses
21 
26 
8 
Charged to Other Accounts
0 
13 
0 
(Deductions)
(4)
(65)
(9)
Balance at End of Period
$ 68 
$ 51 
$ 77