TYSON FOODS INC, 10-Q filed on 1/30/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Dec. 27, 2014
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-Q 
Document Period End Date
Dec. 27, 2014 
Document Fiscal Year Focus
2015 
Document Fiscal Period Focus
Q1 
Amendment Flag
false 
Class A [Member]
 
Entity Common Stock, Shares Outstanding
304,572,910 
Class B [Member]
 
Entity Common Stock, Shares Outstanding
70,010,805 
Consolidated Condensed Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Sales
$ 10,817 
$ 8,761 
Cost of Sales
9,861 
8,076 
Gross Profit
956 
685 
Operating Expenses:
 
 
Selling, General and Administrative
447 
273 
Operating Income
509 
412 
Other (Income) Expense:
 
 
Interest income
(2)
(2)
Interest expense
77 
28 
Other, net
(1)
3 
Total Other (Income) Expense
74 
29 
Income before Income Taxes
435 
383 
Income Tax Expense
125 
131 
Net Income
310 
252 
Less: Net income (loss) attributable to noncontrolling interest
1 
(2)
Net Income Attributable to Tyson
$ 309 
$ 254 
Weighted Average Shares Outstanding:
 
 
Diluted, Shares
416 
354 
Net Income Per Share Attributable to Tyson:
 
 
Diluted (USD per share)
$ 0.74 
$ 0.72 
Class A [Member]
 
 
Weighted Average Shares Outstanding:
 
 
Basic, Shares
336 
271 
Net Income Per Share Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.77 
$ 0.76 
Dividends Declared Per Share:
 
 
Dividends Declared (USD per share)
$ 0.125 
$ 0.100 
Class B [Member]
 
 
Weighted Average Shares Outstanding:
 
 
Basic, Shares
70 
70 
Net Income Per Share Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.71 
$ 0.68 
Dividends Declared Per Share:
 
 
Dividends Declared (USD per share)
$ 0.113 
$ 0.090 
Consolidated Condensed Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Statement of Comprehensive Income [Abstract]
 
 
Net Income
$ 310 
$ 252 
Other Comprehensive Income (Loss), Net of Taxes:
 
 
Derivatives accounted for as cash flow hedges
1 
(2)
Investments
9 
3 
Currency translation
6 
(11)
Postretirement benefits
7 
2 
Total Other Comprehensive Income (Loss), Net of Taxes
23 
(8)
Comprehensive Income
333 
244 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
1 
(2)
Comprehensive Income Attributable to Tyson
$ 332 
$ 246 
Consolidated Condensed Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Assets
 
 
Cash and cash equivalents
$ 381 
$ 438 
Accounts receivable, net
1,777 
1,684 
Inventories
3,192 
3,274 
Other current assets
375 
379 
Assets held for sale
213 
446 
Total Current Assets
5,938 
6,221 
Net Property, Plant and Equipment
5,211 
5,130 
Goodwill
6,700 
6,706 
Intangible Assets, net
5,246 
5,276 
Other Assets
663 
623 
Total Assets
23,758 
23,956 
Liabilities and Shareholders' Equity
 
 
Current debt
596 
643 
Accounts payable
2,147 
1,806 
Other current liabilities
1,157 
1,207 
Liabilities held for sale
54 
141 
Total Current Liabilities
3,954 
3,797 
Long-Term Debt
6,931 
7,535 
Deferred Income Taxes
2,473 
2,450 
Other Liabilities
1,263 
1,270 
Commitments and Contingencies (Note 16)
   
   
Shareholders' Equity:
 
 
Capital in excess of par value
4,265 
4,257 
Retained earnings
6,011 
5,748 
Accumulated other comprehensive loss
(124)
(147)
Treasury stock, at cost - 41 million shares at December 27, 2014, and 40 million shares at September 27, 2014
(1,071)
(1,010)
Total Tyson Shareholders' Equity
9,123 
8,890 
Noncontrolling Interest
14 
14 
Total Shareholders' Equity
9,137 
8,904 
Total Liabilities and Shareholders' Equity
23,758 
23,956 
Class A [Member]
 
 
Shareholders' Equity:
 
 
Common stock
35 
35 
Convertible Class B [Member]
 
 
Shareholders' Equity:
 
 
Common stock
$ 7 
$ 7 
Condensed Consolidated Balance Sheets (Parentheticals) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Treasury Stock, shares
41 
40 
Class A [Member]
 
 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
900 
900 
Common stock, shares issued
346 
346 
Convertible Class B [Member]
 
 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
900 
900 
Common stock, shares issued
70 
70 
Consolidated Condensed Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Cash Flows From Operating Activities:
 
 
Net Income
$ 310 
$ 252 
Depreciation and amortization
175 
127 
Deferred income taxes
11 
(15)
Convertible debt discount
0 
(92)
Other, net
6 
22 
Net changes in working capital
310 
67 
Cash Provided by Operating Activities
812 
361 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(231)
(140)
Purchases of marketable securities
(10)
(10)
Proceeds from sale of marketable securities
7 
9 
Proceeds from sale of businesses
142 
0 
Other, net
3 
(3)
Cash Used for Investing Activities
(89)
(144)
Cash Flows From Financing Activities:
 
 
Payments on debt
(668)
(379)
Proceeds from issuance of long-term debt
0 
6 
Purchases of Tyson Class A common stock
(91)
(159)
Dividends
(37)
(25)
Stock options exercised
16 
12 
Other, net
5 
5 
Cash Used for Financing Activities
(775)
(540)
Effect of Exchange Rate Changes on Cash
(5)
3 
Decrease in Cash and Cash Equivalents
(57)
(320)
Cash and Cash Equivalents at Beginning of Year
438 
1,145 
Cash and Cash Equivalents at End of Period
$ 381 
$ 825 
Accounting Policies
Accounting Policies
ACCOUNTING POLICIES
Basis of Presentation
The consolidated condensed financial statements are unaudited and have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations of the United States Securities and Exchange Commission. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended September 27, 2014. Preparation of consolidated condensed financial statements requires us to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of December 27, 2014, and the results of operations for the three months ended December 27, 2014, and December 28, 2013. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.
Consolidation
The consolidated condensed financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Recently Issued Accounting Pronouncements
In May 2014, the FASB issued guidance changing the criteria for recognizing revenue. The guidance also modifies the related disclosure requirements, clarifies guidance for multiple-element arrangements and provides guidance for transactions that were not addressed fully in previous guidance. 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 not permitted. The Company is currently evaluating the impact this guidance will have on our consolidated condensed financial statements.
Acquisitions and Dispositions
Business Combinations and Disposal Group Operation
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 6: Debt and Note 7: Equity). Hillshire Brands' results from operations subsequent to the acquisition closing are included in the Prepared Foods segment.
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date. Certain estimated values for the acquisition, including goodwill, intangible assets, plant property and equipment, and deferred taxes, are not yet finalized and the preliminary purchase price allocations are subject to change as we complete our analysis of the fair value at the date of acquisition. The purchase price was allocated based on information available at acquisition date. During the quarter ended December 27, 2014, we recorded measurement period adjustments, which reduced goodwill by $5 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.
 
in millions
 
Cash and cash equivalents
 
$
72

Accounts receivable
 
236

Inventories
 
418

Other current assets
 
343

Property, Plant and Equipment
 
1,303

Goodwill
 
4,799

Intangible Assets
 
5,141

Other Assets
 
66

Accounts payable
 
(347
)
Other current liabilities
 
(328
)
Long-Term Debt
 
(869
)
Deferred Income Taxes
 
(2,072
)
Other Liabilities
 
(518
)
Net assets acquired
 
$
8,244


The fair value of identifiable intangible assets 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 $4,799 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. The allocation of goodwill to our reporting units is pending finalization of the expected synergies and the impact of the synergies to our reporting units. We do not expect the final fair value of goodwill to be deductible for U.S. 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 excess earnings valuation approaches, each of 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 condensed financial statements from the date of acquisition.
The following 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 following table 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 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 acquisition occurred on the assumed date, nor is it necessarily an indication of future operating results. The pro forma results for the three months ended December 28, 2013 include a nonrecurring tax benefit of $46 million recognized by Hillshire Brands primarily related to the release of valuation allowances on state deferred tax assets.
in millions
 
 
 
December 28, 2013
Pro forma sales
 
$
9,817

Pro forma net income from continuing operations attributable to Tyson
 
$
338

Pro forma net income per diluted share from continuing operations attributable to Tyson
 
$
0.81


Additionally, during the second quarter of 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.
Dispositions
In fiscal 2014, we announced our plan to sell our Brazil and Mexico operations, which are included in our International segment, to JBS SA ("JBS") for a combined $575 million in cash, subject to certain 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 for proceeds of $130 million with additional proceeds expected in the second quarter of fiscal 2015 related to the working capital and net debt adjustments. 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. The assets and liabilities associated with Brazil were classified as held for sale on the balance sheet at September 27, 2014. We expect to realize a gain on the sale of our Mexico operation, which is pending the necessary government approvals, and expect it to close in the second quarter of fiscal 2015. The assets and liabilities related to Mexico are classified as held for sale on the balance sheet at December 27, 2014 and September 27, 2014.
The following table summarizes the net assets and liabilities held for sale (in millions):
 
December 27, 2014
 
September 27, 2014
Assets held for sale:
 
 
 
Accounts receivable, net
$
23

 
$
74

Inventories
77

 
141

Other current assets
17

 
72

Net property, plant and equipment
76

 
132

Goodwill
14

 
16

Other assets
6

 
11

Total assets held for sale
$
213

 
$
446

Liabilities held for sale:
 
 
 
Current debt
$
—

 
$
32

Accounts payable
33

 
61

Other current liabilities
12

 
27

Long-term debt
—

 
9

Deferred income taxes
8

 
12

Other Liabilities
1

 
—

Total liabilities held for sale
$
54

 
$
141


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 in the third quarter of fiscal 2014. We will recognize the future contingent payments in income as the required volumes are produced.
In fiscal 2014, we recorded impairment charges of $52 million related to the planned closure of three Prepared Foods plants. The Company’s Cherokee, Iowa plant closed in September 2014, the Buffalo, New York plant closed in January 2015, and the Santa Teresa, New Mexico plant is expected to close during the first half of calendar 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.
Inventories
Inventories
INVENTORIES
Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
At December 27, 2014, 67% of the cost of inventories was determined by the first-in, first-out ("FIFO") method as compared to 66% at September 27, 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 (in millions):
 
December 27, 2014
 
September 27, 2014
Processed products
$
1,703

 
$
1,794

Livestock
1,073

 
1,066

Supplies and other
416

 
414

Total inventory
$
3,192

 
$
3,274

Property, Plant And Equipment
Property, Plant And Equipment
PROPERTY, PLANT AND EQUIPMENT
The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): 

December 27, 2014
 
September 27, 2014
Land
$
126

 
$
126

Buildings and leasehold improvements
3,558

 
3,501

Machinery and equipment
6,204

 
6,144

Land improvements and other
278

 
276

Buildings and equipment under construction
409

 
334

 
10,575

 
10,381

Less accumulated depreciation
5,364

 
5,251

Net property, plant and equipment
$
5,211

 
$
5,130

Other Current Liabilities
Other Current Liabilities
OTHER CURRENT LIABILITIES
Other current liabilities are as follows (in millions):
 
December 27, 2014
 
September 27, 2014
Accrued salaries, wages and benefits
$
349

 
$
490

Other
808

 
717

Total other current liabilities
$
1,157

 
$
1,207

Debt
Debt
DEBT
The major components of debt are as follows (in millions):
 
December 27, 2014
 
September 27, 2014
Revolving credit facility
$
—

 
$
—

Senior notes:
 
 
 
2.75% Senior notes due September 2015 (2015 Notes)
405

 
407

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

 
638

7.00% Notes due May 2018
120

 
120

2.65% Notes due August 2019 (2019 Notes)
1,000

 
1,000

4.10% Notes due September 2020 (2020 Notes)
286

 
287

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

 
1,000

3.95% Notes due August 2024 (2024 Notes)
1,250

 
1,250

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032 (2032 Notes)
164

 
164

4.88% Notes due August 2034 (2034 Notes)
500

 
500

5.15% Notes due August 2044 (2044 Notes)
500

 
500

Discount on senior notes
(11
)
 
(12
)
Term loan facility:
 
 
 
3-year tranche (1.56% at 12/27/2014)
872

 
1,172

5-year tranche A
—

 
353

5-year tranche B (1.69% at 12/27/2014)
552

 
552

Amortizing Notes - Tangible Equity Units (see Note 7: Equity)
192

 
205

Other
41

 
24

Total debt
7,527

 
8,178

Less current debt
596

 
643

Total long-term debt
$
6,931

 
$
7,535


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 the amount available by outstanding letters of credit issued under this facility, the amount available for borrowing at December 27, 2014, was $1,245 million. At December 27, 2014, we had outstanding letters of credit issued under this facility totaling $5 million, none of which were drawn upon. We had an additional $102 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of workers’ compensation insurance programs and derivative activities.
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.
2019 / 2024 / 2034 / 2044 Notes
In August 2014, we issued senior unsecured notes with an aggregate principal amount of $3,250 million, consisting of $1,000 million due August 2019, $1,250 million due August 2024, $500 million due August 2034, and $500 million due August 2044. The 2019 Notes, 2024 Notes, 2034 Notes, and 2044 Notes carry interest rates of 2.65%, 3.95%, 4.88% and 5.15%, respectively, with interest payments due semi-annually on August 15 and February 15. After the original issue discounts of $7 million, we received net proceeds of $3,243 million. In addition, we incurred offering expenses of $27 million.
Term Loan Facility
In August 2014, we borrowed under an unsecured term loan facility, which provided for total term loans in an aggregate principal amount of $2,300 million, consisting of a $1,202 million 3-year tranche facility, a $546 million 5-year tranche A facility, and a $552 million 5-year tranche B facility. The principal of the 3-year tranche facility amortizes at 2.5% per quarter. Interest is reset based on the selected LIBOR interest period plus 1.375% for the 3-year tranche facility and 1.50% for the 5-year tranche B facility. In addition, we incurred term loan issuance costs of approximately $11 million.
2015 / 2020 / 2032 Notes
In August 2014 and in connection with our acquisition of Hillshire Brands, we assumed $840 million of Hillshire Brands' debt, which had an estimated fair value of approximately $868 million as of the acquisition date. We recorded the assumed debt at fair value. The fair value adjustment is being amortized and recorded as a reduction of interest expense. The debt assumed is mainly comprised of senior unsecured notes which consist of $400 million due September 2015, $278 million due September 2020, and $152 million due November 2032. The 2015 Notes, 2020 Notes, and the 2032 Notes carry interest rates of 2.75%, 4.10%, and 6.13%, respectively.
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 December 27, 2014.
Equity (Notes)
Equity
EQUITY
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 December 27, 2014, 30.1 million shares remained available for repurchases under this program. The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, our working capital needs, markets, industry conditions, liquidity targets, limitations under our debt obligations and regulatory requirements. In addition to the share repurchase program, we purchase shares on the open market to fund certain obligations under our equity compensation plans.
A summary of cumulative share repurchases of our Class A stock is as follows (in millions):
 
 
Three Months Ended
 
 
December 27, 2014
 
December 28, 2013
 
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
Under share repurchase program
 
2.0

 
$
81

 
4.6

 
$
150

To fund certain obligations under equity compensation plans
 
0.2

 
10

 
0.3

 
9

Total share repurchases
 
2.2

 
$
91

 
4.9

 
$
159


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, is 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, of which $65 million was current. Issuance costs associated with the TEU debt were recorded as deferred financing costs in the Consolidated Condensed 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, commencing on October 15, 2014, we will pay equal quarterly cash installments of $0.59 per amortizing note (except for the October 15, 2014 installment payment, which was $0.46 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 will constitute 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 39.7 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 $47.22 per share, we will deliver 1.0588 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 $37.78 but less than the conversion price of $47.22 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 $37.78 per share, we will deliver 1.3236 shares of Class A stock per purchase contract, or a maximum of 39.7 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 December 15, 2014, we paid our quarterly dividend to shareholders of record at December 1, 2014 equal to $0.10 per share on our Class A common stock. The amount of the distribution exceeded the dividend threshold amount; which is $0.075 per share. Consequently, the settlements rates, reference price and conversion price were adjusted to reflect this change.
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 7.9 million share difference between the minimum shares and the 39.7 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 at period end.
Income Taxes
Income Taxes
INCOME TAXES
The effective tax rate was 28.8% and 34.3% for the first quarter of fiscal 2015 and 2014, respectively. The effective tax rates for the first quarter of fiscal 2015 and fiscal 2014 were impacted by such items as the domestic production deduction, state income taxes and losses in foreign jurisdictions for which no benefit is recognized. In addition, changes in tax reserves resulting from the expiration of statutes of limitations reduced the effective tax rate for the first quarter of fiscal 2015 by 6.5%.
Unrecognized tax benefits were $239 million and $272 million at December 27, 2014, and September 27, 2014, respectively. The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $209 million and $241 million at December 27, 2014, and September 27, 2014, respectively.
We classify interest and penalties on unrecognized tax benefits as income tax expense. At December 27, 2014, and September 27, 2014, before tax benefits, we had $52 million and $54 million, respectively, of accrued interest and penalties on unrecognized tax benefits.
We are subject to income tax assessments for U.S. federal income taxes for fiscal years 2011 through 2013. We are also subject to income tax assessments by major state and foreign jurisdictions for fiscal years 2005 through 2013 and 2002 through 2013, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease up to $5 million primarily due to expiration of statutes of limitations in various jurisdictions.
Other Income And Charges
Other Income And Charges
OTHER INCOME AND CHARGES
During the first quarter of fiscal 2015, we recorded $1 million of equity earnings in joint ventures, which were recorded in the Consolidated Condensed Statements of Income in Other, net.
During the first quarter of fiscal 2014, we recorded $2 million of equity earnings in joint ventures, $1 million in net foreign currency exchange gains and $6 million of other than temporary impairment related to an available-for-sale security, which were recorded in the Consolidated Condensed Statements of Income in Other, net.
Earnings Per Share
Earnings Per Share
EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): 
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
Numerator:
 
 
 
Net Income
$
310

 
$
252

Less: Net income (loss) attributable to noncontrolling interests
1

 
(2
)
Net income attributable to Tyson
309

 
254

Less dividends declared:
 
 
 
Class A
38

 
28

Class B
8

 
6

Undistributed earnings
$
263

 
$
220

 
 
 
 
Class A undistributed earnings
$
221

 
$
179

Class B undistributed earnings
42

 
41

Total undistributed earnings
$
263

 
$
220

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Class A weighted average shares
336

 
271

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

 
70

Effect of dilutive securities:
 
 
 
Stock options and restricted stock
5

 
5

Tangible Equity Units
5

 
—

Warrants
—

 
8

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
416

 
354

 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
Class A Basic
$
0.77

 
$
0.76

Class B Basic
$
0.71

 
$
0.68

Diluted
$
0.74

 
$
0.72


Approximately 6 million and 5 million of our stock-based compensation shares were antidilutive for the three months ended December 27, 2014 and December 28, 2013, respectively. These shares were not included in the diluted earnings per share calculation.
We have two classes of capital stock, Class A stock and Class B stock. Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of cash dividends paid to holders of Class B stock cannot exceed 90% of the cash dividends paid to holders of Class A stock.
We allocate undistributed earnings based upon a 1 to 0.9 ratio per share to Class A stock and Class B stock, respectively. We allocate undistributed earnings based on this ratio due to historical dividend patterns, voting control of Class B shareholders and contractual limitations of dividends to Class B stock.
Derivative Financial Instruments
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Our business operations give rise to certain market risk exposures mostly due to changes in commodity prices, foreign currency exchange rates and interest rates. We manage a portion of these risks through the use of derivative financial instruments, primarily futures and options, to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Forward contracts on various commodities, including grains, livestock and energy, are primarily entered into to manage the price risk associated with forecasted purchases of these inputs used in our production processes. Foreign exchange forward contracts are entered into to manage the fluctuations in foreign currency exchange rates, primarily as a result of certain receivable and payable balances. We also periodically utilize interest rate swaps to manage interest rate risk associated with our variable-rate borrowings.
Our risk management programs are periodically reviewed by our Board of Directors’ Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using Value-at-Risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit-worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at December 27, 2014.
We recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated Condensed Balance Sheets, with the exception of normal purchases and normal sales expected to result in physical delivery. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged (i.e., cash flow hedge or fair value hedge). We qualify, or designate, a derivative financial instrument as a hedge when contract terms closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. If a derivative instrument is accounted for as a hedge, depending on the nature of the hedge, changes in the fair value of the instrument either will be offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings, or be recognized in other comprehensive income (loss) (OCI) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is recognized in earnings immediately. We designate certain forward contracts as follows:
•
Cash Flow Hedges - include certain commodity forward and option contracts of forecasted purchases (i.e., grains) and certain foreign exchange forward contracts.
•
Fair Value Hedges - include certain commodity forward contracts of firm commitments (i.e., livestock).
Cash Flow Hedges
Derivative instruments, such as futures and options, are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes. We do not purchase forward and option commodity contracts in excess of our physical consumption requirements and generally do not hedge forecasted transactions beyond 18 months. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchase of those commodities. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of 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 for the three months ended December 27, 2014, and December 28, 2013.
We had the following aggregated notional values of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons): 
 
Metric
 
December 27, 2014
 
September 27, 2014
Commodity:
 
 
 
 
 
Corn
Bushels
 
—

 
—

Soy meal
Tons
 
800

 
2,300

Foreign Currency
United States dollar
 
$
—

 
$
1

As of December 27, 2014, the net amounts expected to be reclassified into earnings within the next 12 months are pretax losses of $1 million related to grains. During the three months ended December 27, 2014, and December 28, 2013, we did not reclassify significant pretax gains/losses into earnings as a result of the discontinuance of cash flow hedges due to the probability the original forecasted transaction would not occur by the end of the originally specified time period or within the additional period of time allowed by generally accepted accounting principles.
The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Gain/(Loss)
Recognized in OCI
On Derivatives
 
 
Consolidated Condensed
Statements of Income
Classification
 
Gain/(Loss)
Reclassified from
OCI to Earnings
 
 
Three Months Ended
 
 
 
Three Months Ended
 
December 27,
2014
 
December 28,
2013
 
 
 
December 27,
2014
 
December 28,
2013
Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
(2
)
 
Cost of Sales
 
$
(3
)
 
$
—

Foreign exchange contracts
—

 
(1
)
 
Other Income/Expense
 
—

 
—

Total
$
—

 
$
(3
)
 
 
 
$
(3
)
 
$
—


Fair Value Hedges
We designate certain futures contracts as fair value hedges of firm commitments to purchase livestock for slaughter. Our objective of these hedges is to minimize the risk of changes in fair value created by fluctuations in commodity prices associated with fixed price livestock firm commitments. We had the following aggregated notional values of outstanding forward contracts entered into to hedge firm commitments which are accounted for as a fair value hedge (in millions): 
 
Metric
 
December 27, 2014
 
September 27, 2014
Commodity:
 
 
 
 
 
Live Cattle
Pounds
 
442

 
427

Lean Hogs
Pounds
 
224

 
329

For these derivative instruments we designate and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in earnings in the same period. We include the gain or loss on the hedged items (i.e., livestock purchase firm commitments) in the same line item, Cost of Sales, as the offsetting gain or loss on the related livestock forward position. 
 
 
 
in millions
 
 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
 
December 27,
2014
 
December 28,
2013
Gain/(Loss) on forwards
Cost of Sales
 
$
(40
)
 
$
(6
)
Gain/(Loss) on purchase contract
Cost of Sales
 
40

 
6


Ineffectiveness related to our fair value hedges was not significant for the three months ended December 27, 2014, and December 28, 2013.
Undesignated Positions
In addition to our designated positions, we also hold forward and option contracts for which we do not apply hedge accounting. These include certain derivative instruments related to commodities price risk, including grains, livestock, energy and foreign currency risk. We mark these positions to fair value through earnings at each reporting date. We generally do not enter into undesignated positions beyond 18 months.
The objective of our undesignated grains, livestock and energy commodity positions is to reduce the variability of cash flows associated with the forecasted purchase of certain grains, energy and livestock inputs to our production processes. We also enter into certain forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs at fixed prices. The fixed price sales contracts lock in the proceeds from a future sale and the fixed cattle and hog purchases lock in the cost. However, the cost of the livestock and the related boxed beef and boxed pork market prices at the time of the sale or purchase could vary from this fixed price. As we enter into fixed forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs, we also enter into the appropriate number of livestock options and futures positions to mitigate a portion of this risk. Changes in market value of the open livestock options and futures positions are marked to market and reported in earnings at each reporting date, even though the economic impact of our fixed prices being above or below the market price is only realized at the time of sale or purchase. These positions generally do not qualify for hedge treatment due to location basis differences between the commodity exchanges and the actual locations when we purchase the commodities.
We have a foreign currency cash flow hedging program to hedge portions of forecasted transactions denominated in foreign currencies, primarily with forward and option contracts, to protect against the reduction in value of forecasted foreign currency cash flows. Our undesignated foreign currency positions generally would qualify for cash flow hedge accounting. However, to reduce earnings volatility, we normally will not elect hedge accounting treatment when the position provides an offset to the underlying related transaction that impacts current earnings.
We had the following aggregate outstanding notional values related to our undesignated positions (in millions, except soy meal tons): 
 
Metric
 
December 27, 2014
 
September 27, 2014
Commodity:
 
 
 
 
 
Corn
Bushels
 
16

 
—

Soy Meal
Tons
 
281,300

 
195,800

Soy Oil
Pounds
 
21

 
3

Live Cattle
Pounds
 
14

 
22

Lean Hogs
Pounds
 
1

 
22

Foreign Currency
United States dollars
 
$
29

 
$
108

The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Consolidated Condensed
Statements of Income
Classification
 
Gain/(Loss)
Recognized in Earnings
 
 
 
 
Three Months Ended
 
 
 
December 27, 2014
 
December 28, 2013
Derivatives not designated as hedging instruments:
 
 
 
 
 
Commodity contracts
Sales
 
$
(1
)
 
$
2

Commodity contracts
Cost of Sales
 
(26
)
 
(2
)
Foreign exchange contracts
Other Income/Expense
 
(2
)
 
(1
)
Total
 
 
$
(29
)
 
$
(1
)
The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions):
 
Fair Value
 
December 27, 2014
 
September 27, 2014
Derivative Assets:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
31

 
$
17

Foreign exchange contracts
—

 
—

Total derivative assets – designated
31

 
17

 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
31

 
42

Foreign exchange contracts
—

 
—

Total derivative assets – not designated
31

 
42

Total derivative assets
$
62

 
$
59

Derivative Liabilities:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
31

 
$
78

Foreign exchange contracts
—

 
—

Total derivative liabilities – designated
31

 
78

Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
37

 
80

Foreign exchange contracts
—

 
2

Total derivative liabilities – not designated
37

 
82

Total derivative liabilities
$
68

 
$
160

Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. See Note 12: Fair Value Measurements for a reconciliation to amounts reported in the Consolidated Condensed Balance Sheets in Other current assets and Other current liabilities.
Fair Value Measurements
Fair Value Measurements
FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:
Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date.
Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
•
Quoted prices for similar assets or liabilities in active markets;
•
Quoted prices for identical or similar assets in non-active markets;
•
Inputs other than quoted prices that are observable for the asset or liability; and
•
Inputs derived principally from or corroborated by other observable market data.
Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
December 27, 2014
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
62

 
$
—

 
$
(34
)
 
$
28

Foreign Exchange Forward Contracts
—

 
—

 
—

 
—

 
—

Available-for-Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
2

 
—

 
—

 
2

Non-current
17

 
28

 
65

 
—

 
110

Deferred Compensation Assets
5

 
230

 
—

 
—

 
235

Total Assets
$
22

 
$
322

 
$
65

 
$
(34
)
 
$
375

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
68

 
$
—

 
$
(68
)
 
$
—

Foreign Exchange Forward Contracts
—

 
—

 
—

 
—

 
—

Total Liabilities
$
—

 
$
68

 
$
—

 
$
(68
)
 
$
—

September 27, 2014
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
59

 
$
—

 
$
(50
)
 
$
9

Foreign Exchange Forward Contracts
—

 
—

 
—

 
—

 
—

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:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
158

 
$
—

 
$
(148
)
 
$
10

Foreign Exchange Forward Contracts
—

 
2

 
—

 
—

 
2

Total Liabilities
$
—

 
$
160

 
$
—

 
$
(148
)
 
$
12


(a)
Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At December 27, 2014 and September 27, 2014, we had posted with various counterparties $34 million and $98 million, respectively, of cash collateral related to our commodity derivatives and held no cash collateral.
The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): 
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
Balance at beginning of year
$
67

 
$
65

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
4

 
7

Issuances
—

 
—

Settlements
(6
)
 
(8
)
Balance at end of period
$
65

 
$
64

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

 
$
—


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Derivative Assets and Liabilities: Our commodities and foreign exchange forward contracts primarily include exchange-traded and over-the-counter contracts which are further described in Note 11: Derivative Financial Instruments. We record our commodity derivatives at fair value using quoted market prices adjusted for credit and non-performance risk and internal models that use as their basis readily observable market inputs including current and forward commodity market prices. Our foreign exchange forward contracts are recorded at fair value based on quoted prices and spot and forward currency prices adjusted for credit and non-performance risk. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges or observable market transactions of spot currency rates and forward currency prices.
Available-for-Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. Short-term investments with maturities of less than 12 months are included in Other current assets in the Consolidated Condensed Balance Sheets and primarily include certificates of deposit and commercial paper. All other marketable debt securities are included in Other Assets in the Consolidated Condensed Balance Sheets and have maturities ranging up to 35 years. We classify our investments in U.S. government, U.S. agency, certificates of deposit and commercial paper debt securities as Level 2 as fair value is generally estimated using discounted cash flow models that are primarily industry-standard models that consider various assumptions, including time value and yield curve as well as other readily available relevant economic measures. We classify certain corporate, asset-backed and other debt securities as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated condensed financial statements.
The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):
 
December 27, 2014
 
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:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and Agency
$
29

 
$
30

 
$
1

 
$
25

 
$
25

 
$
—

Corporate and Asset-Backed
65

 
65

 
—

 
65

 
67

 
2

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock (a)
1

 
17

 
16

 
1

 
1

 
—

 
(a)
At December 27, 2014 and September 27, 2014, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of approximately $2 million.
Unrealized holding gains (losses), net of tax, are excluded from earnings and reported in OCI until the security is settled or sold. On a quarterly basis, we evaluate whether losses related to our available-for-sale securities are temporary in nature. Losses on equity securities are recognized in earnings if the decline in value is judged to be other than temporary. If losses related to our debt securities are determined to be other than temporary, the loss would be recognized in earnings if we intend, or more likely than not will be required, to sell the security prior to recovery. For debt securities in which we have the intent and ability to hold until maturity, losses determined to be other than temporary would remain in OCI, other than expected credit losses which are recognized in earnings. We consider many factors in determining whether a loss is temporary, including the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. We recognized no other than temporary impairment in earnings for the three months ended December 27, 2014 and $6 million for the three months ended December 28, 2013, which was recorded in the Consolidated Condensed Statements of Income in Other, net. No other than temporary losses were deferred in OCI as of December 27, 2014, and September 27, 2014.
Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated Condensed Balance Sheets. We classify the investments which have observable market prices in active markets in Level 1 as these are generally publicly-traded mutual funds. The remaining deferred compensation assets are classified in Level 2, as fair value can be corroborated based on observable market data. Realized and unrealized gains (losses) on deferred compensation are included in earnings.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the three months ended December 27, 2014 and December 28, 2013.
Other Financial Instruments
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):
 
December 27, 2014
 
September 27, 2014
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total Debt
$
7,815

 
$
7,527

 
$
8,347

 
$
8,178

Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans
Pension and Other Postretirement Benefits Disclosure [Text Block]
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
The components of the net periodic cost for the pension and postretirement benefit plans for the three months ended December 27, 2014 and December 28, 2013 are as follows (in millions):
 
Pension Plans
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
 
 
 
 
Service cost
$
4

 
$
2

Interest cost
21

 
2

Expected return on plan assets
(25
)
 
(1
)
Amortization of:

 

   Net actuarial loss
1

 
1

Settlement loss
8

 
—

Net periodic cost
$
9

 
$
4


 
Postretirement Benefit Plans
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
 
 
 
 
Service cost
$
1

 
$
—

Interest cost
2

 
1

Net periodic cost
$
3

 
$
1


We contributed $3 million and $2 million to our pension plans for the three months ended December 27, 2014 and December 28, 2013, respectively. We expect to contribute an additional $11 million during the remainder of fiscal 2015. The amount of contributions made to pension plans in any year is dependent upon a number of factors including minimum funding requirements in the jurisdictions in which we operate. As a result, the actual funding in fiscal 2015 may differ from the current estimate.
Other Comprehensive Income
Other Comprehensive Income (Loss)
OTHER COMPREHENSIVE INCOME (LOSS)
The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions):
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
(Gain) loss reclassified to Cost of Sales
$
3

$
(2
)
$
1

 
$
—

$
—

$
—

Unrealized gain (loss)
—

—

—

 
(3
)
1

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

—

—

 
6

(2
)
4

Unrealized gain (loss)
15

(6
)
9

 
(1
)
—

(1
)
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
Translation loss reclassified to Cost of Sales (a)
37

(1
)
36

 
—

—

—

Translation adjustment
(37
)
7

(30
)
 
(11
)
—

(11
)
 
 
 
 
 
 
 
 
Postretirement benefits
9

(2
)
7

 
1

1

2

Total Other Comprehensive Income (Loss)
$
27

$
(4
)
$
23

 
$
(8
)
$
—

$
(8
)

(a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 2: Acquisitions and Dispositions.
Segment Reporting
Segment Reporting
SEGMENT REPORTING
We operate in five segments: Chicken, Beef, Pork, Prepared Foods and International. We measure segment profit as operating income (loss).
During the second quarter of fiscal 2014, we began reporting our International operation as a separate segment, which was previously included in our Chicken segment. Our International segment became a separate reportable segment as a result of changes to our internal financial reporting to align with previously announced executive leadership changes. All periods presented have been reclassified to reflect this change. Beef, Pork, Prepared Foods and Other results were not impacted by this change.
Chicken: Chicken includes our domestic operations related to raising and processing live chickens into fresh, frozen and value-added chicken products, as well as sales from allied products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary.
Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain.
Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. Products primarily include pepperoni, bacon, sausage, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets.
In fiscal 2014, we acquired 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® frozen bakery and Chef Pierre® pies as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island® premium jerky. Hillshire Brands' results from operations for the first quarter of fiscal 2015 are included in the Prepared Foods segment.
International: International includes our foreign operations primarily related to raising and processing live chickens into fresh, frozen and value-added chicken products in Brazil, China, India and Mexico. Products are marketed in each respective country to food retailers, foodservice distributors, restaurant operators, hotel chains, noncommercial foodservice establishments and live markets, as well as to other international export markets.
In fiscal 2014, we announced our plan to sell our Brazil and Mexico operations, part of our International segment, to JBS for $575 million in cash, subject to certain adjustments. As further described in Note 2: Acquisitions and Dispositions, we sold our Brazil operations in the first quarter of fiscal 2015. The sale of our Mexico operation is pending the necessary government approvals and is expected to close in the second quarter of fiscal 2015.
The results from Dynamic Fuels are included in Other in fiscal 2014. We allocate expenses related to corporate activities to the segments, except for third-party acquisition and integration costs which are included in Other of $15 million.
Information on segments and a reconciliation to income before income taxes are as follows (in millions): 
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
Sales:
 
 
 
Chicken
$
2,780

 
$
2,656

Beef
4,391

 
3,734

Pork
1,540

 
1,424

Prepared Foods
2,133

 
907

International
305

 
327

Other
—

 
—

Intersegment Sales
(332
)
 
(287
)
Total Sales
$
10,817

 
$
8,761

 
 
 
 
Operating Income (Loss):
 
 
 
Chicken
$
351

 
$
253

Beef
(6
)
 
58

Pork
122

 
121

Prepared Foods
71

 
16

International
(14
)
 
(28
)
Other
(15
)
 
(8
)
Total Operating Income
509

 
412

 
 
 
 
Total Other (Income) Expense
74


29

 
 
 
 
Income before Income Taxes
$
435

 
$
383


The Chicken segment had sales of $1 million and $2 million in the first quarter of fiscal 2015 and 2014, respectively, from transactions with other operating segments of the Company. The Beef segment had sales of $78 million and $63 million in the first quarter of fiscal 2015 and 2014, respectively, from transactions with other operating segments of the Company. The Pork segment had sales of $253 million and $222 million in the first quarter of fiscal 2015 and 2014, respectively, from transactions with other operating segments of the Company. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table.
Commitments And Contingencies
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES
Commitments
We guarantee obligations of certain outside third parties, consisting primarily of leases 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 December 27, 2014, was $62 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 13 years. The maximum potential amount of the residual value guarantees is $53 million, of which $47 million could be recoverable through various recourse provisions and an additional undeterminable recoverable amount based on the fair value of the underlying leased assets. The likelihood of material payments under these guarantees is not considered probable. At December 27, 2014, 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 December 27, 2014, was approximately $330 million. We had no receivables under these programs at December 27, 2014 and $4 million at September 27, 2014. These receivables are included, net of allowance for uncollectible amounts, in Accounts Receivable in our Consolidated Condensed Balance Sheets. Even though these programs are limited to the net tangible assets of the participating livestock suppliers, we also manage a portion of our credit risk associated with these programs by obtaining security interests in livestock suppliers’ assets. After analyzing residual credit risks and general market conditions, we have no allowance for these programs’ estimated uncollectible receivables at December 27, 2014, and September 27, 2014.
Contingencies
We are involved in various claims and legal proceedings. We routinely assess the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. We record accruals for such matters to the extent that we conclude a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Such accruals are reflected in the Company’s consolidated condensed financial statements. In our opinion, we have made appropriate and adequate accruals for these matters and believe the probability of a material loss beyond the amounts accrued to be remote; however, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the consolidated financial condition or results of operations. Listed below are certain claims made against the Company and/or our subsidiaries for which the potential exposure is considered material to the Company’s consolidated condensed financial statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters.
There are seven pending 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.
•
Garcia, et al. v. Tyson Foods, Inc., Tyson Fresh Meats, Inc., D. Kansas, May 15, 2006 - After a trial involving our Garden City, Kansas beef plant, a jury verdict in favor of the plaintiffs was entered on March 17, 2011. Exclusive of pre- and post-judgment interest, attorneys’ fees and costs, the jury found violations of federal and state laws for pre- and post-shift work activities and awarded damages in the amount of $503,011. Plaintiffs’ counsel filed an application for attorneys’ fees and expenses which we contested. On December 7, 2012, the court granted plaintiffs' counsel's application and awarded a total of $3,609,723. We appealed the jury’s verdict and trial court’s award to the Tenth Circuit Court of Appeals. The appellate court affirmed the jury verdict and judgment and subsequently denied our petition for rehearing. We subsequently paid the judgment.
•
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.
•
Acosta, et al. v Tyson Foods, Inc. dba 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. Oral argument was held before the appellate court on January 15, 2015.
•
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. Oral argument was held before the appellate court on January 15, 2015.
•
Edwards, et al. v. Tyson Foods, Inc. dba 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.
•
Abdiaziz, et al. v. Tyson Foods, Inc., Tyson Fresh Meats, Inc., D. Kansas, September 30, 2011 - This case involves our Emporia, Kansas beef plant, and was bifurcated from the case involving our Garden City, Kansas beef plant. It is presently stayed.
•
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. Hillshire Brands, Co., Inc. E.D. North Carolina, September 2, 2014 - This case involves our Tarboro, N.C. prepared foods 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 primarily alleges unfair labor practices due to the termination of manufacturing operations in the Philippines by Aris Philippines, Inc., a former subsidiary of The Hillshire Brands Company. In 2006, the arbitrator ruled against the respondents and awarded the complainants PHP3,453,664,710 (approximately US$76 million) in damages and fees. The respondents appealed this ruling and it was subsequently set aside by the NLRC in December 2006. However, in a decision dated June 4, 2014, the Supreme Court of the Philippines set aside the NLRC’s December 2006 ruling as premature. The parties have filed numerous appeals, motions for reconsideration and petitions for review in these cases as to the merits of complainants’ claims and the appropriate amount of an appeal bond to be posted by the respondents. Certain of these appeals and motions remain pending before the NLRC and Supreme Court of the Philippines. On June 23, 2014, without admitting liability, The Hillshire Brands Company filed a 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).
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-Guarantors Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor.
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 27, 2014
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
228

 
$
5,809

 
$
5,325

 
$
(545
)
 
$
10,817

Cost of Sales
19

 
5,662

 
4,722

 
(542
)
 
9,861

Gross Profit
209

 
147

 
603

 
(3
)
 
956

Selling, General and Administrative
34

 
61

 
355

 
(3
)
 
447

Operating Income
175

 
86

 
248

 
—

 
509

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
69

 
—

 
6

 
—

 
75

Other, net
(1
)
 
—

 
—

 
—

 
(1
)
Equity in net earnings of subsidiaries
(237
)
 
(38
)
 
—

 
275

 
—

Total Other (Income) Expense
(169
)
 
(38
)
 
6

 
275

 
74

Income (Loss) before Income Taxes
344

 
124

 
242

 
(275
)
 
435

Income Tax (Benefit) Expense
35

 
30

 
60

 
—

 
125

Net Income
309

 
94

 
182

 
(275
)
 
310

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

 
—

 
1

 
—

 
1

Net Income Attributable to Tyson
$
309

 
$
94

 
$
181

 
$
(275
)
 
$
309

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
332

 
104

 
186

 
(289
)
 
333

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

 
—

 
1

 
—

 
1

Comprehensive Income (Loss) Attributable to Tyson
$
332

 
$
104

 
$
185

 
$
(289
)
 
$
332

 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 28, 2013
 
in millions

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

 
$
5,048

 
$
3,987

 
$
(441
)
 
$
8,761

Cost of Sales
17

 
4,826

 
3,674

 
(441
)
 
8,076

Gross Profit
150

 
222

 
313

 
—

 
685

Selling, General and Administrative
23

 
55

 
195

 
—

 
273

Operating Income
127

 
167

 
118

 
—

 
412

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
5

 
15

 
6

 
—

 
26

Other, net
6

 
(1
)
 
(2
)
 
—

 
3

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

 
181

 
—

Total Other (Income) Expense
(164
)
 
8

 
4

 
181

 
29

Income (Loss) before Income Taxes
291

 
159

 
114

 
(181
)
 
383

Income Tax (Benefit) Expense
37

 
52

 
42

 
—

 
131

Net Income
254

 
107

 
72

 
(181
)
 
252

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

 
—

 
(2
)
 
—

 
(2
)
Net Income Attributable to Tyson
$
254

 
$
107

 
$
74

 
$
(181
)
 
$
254

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
244

 
102

 
63

 
(165
)
 
244

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

 
—

 
(2
)
 
—

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

 
$
102

 
$
65

 
$
(165
)
 
$
246

 
Condensed Consolidating Balance Sheet as of December 27, 2014
 
in millions

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

 
$
12

 
$
369

 
$
—

 
$
381

Accounts receivable, net
1

 
724

 
1,052

 
—

 
1,777

Inventories
—

 
1,312

 
1,880

 
—

 
3,192

Other current assets
43

 
67

 
301

 
(36
)
 
375

Assets held for sale
3

 
—

 
210

 
—

 
213

Total Current Assets
47

 
2,115

 
3,812

 
(36
)
 
5,938

Net Property, Plant and Equipment
28

 
948

 
4,235

 
—

 
5,211

Goodwill
—

 
881

 
5,819

 
—

 
6,700

Intangible Assets, net
—

 
14

 
5,232

 
—

 
5,246

Other Assets
160

 
149

 
354

 
—

 
663

Investment in Subsidiaries
21,153

 
2,092

 
—

 
(23,245
)
 
—

Total Assets
$
21,388

 
$
6,199

 
$
19,452

 
$
(23,281
)
 
$
23,758

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
189

 
$
—

 
$
407

 
$
—

 
$
596

Accounts payable
28

 
1,148

 
971

 
—

 
2,147

Other current liabilities
5,414

 
163

 
859

 
(5,279
)
 
1,157

Liabilities held for sale
—

 
—

 
54

 
—

 
54

Total Current Liabilities
5,631

 
1,311

 
2,291

 
(5,279
)
 
3,954

Long-Term Debt
6,441

 
2

 
488

 
—

 
6,931

Deferred Income Taxes
17

 
101

 
2,355

 
—

 
2,473

Other Liabilities
176

 
127

 
960

 
—

 
1,263

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,123

 
4,658

 
13,344

 
(18,002
)
 
9,123

Noncontrolling Interest
—

 
—

 
14

 
—

 
14

Total Shareholders’ Equity
9,123

 
4,658

 
13,358

 
(18,002
)
 
9,137

Total Liabilities and Shareholders’ Equity
$
21,388

 
$
6,199

 
$
19,452

 
$
(23,281
)
 
$
23,758


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, net
—

 
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 Interest
—

 
—

 
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 three months ended December 27, 2014
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
55

 
$
325

 
$
432

 
$
—

 
$
812

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

 
(40
)
 
(191
)
 
—

 
(231
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
(3
)
 
—

 
(3
)
Proceeds from sale of businesses
—

 
—

 
142

 
—

 
142

Other, net
—

 
—

 
3

 
—

 
3

Cash Provided by (Used for) Investing Activities
—

 
(40
)
 
(49
)
 
—

 
(89
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(667
)
 
—

 
(1
)
 
—

 
(668
)
Purchases of Tyson Class A common stock
(91
)
 
—

 
—

 
—

 
(91
)
Dividends
(37
)
 
—

 
—

 
—

 
(37
)
Stock options exercised
16

 
—

 
—

 
—

 
16

Other, net
5

 
—

 
—

 
—

 
5

Net change in intercompany balances
719

 
(314
)
 
(405
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(55
)
 
(314
)
 
(406
)
 
—

 
(775
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(5
)
 
—

 
(5
)
Increase (Decrease) in Cash and Cash Equivalents
—

 
(29
)
 
(28
)
 
—

 
(57
)
Cash and Cash Equivalents at Beginning of Year
—

 
41

 
397

 
—

 
438

Cash and Cash Equivalents at End of Period
$
—

 
$
12

 
$
369

 
$
—

 
$
381

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

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

 
$
81

 
$
—

 
$
361

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

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

 
—

 
(1
)
 
—

 
(1
)
Other, net
—

 
1

 
(4
)
 
—

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

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

 
(6
)
 
—

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

 
—

 
—

 
(159
)
Dividends
(25
)
 
—

 
—

 
—

 
(25
)
Stock options exercised
12

 
—

 
—

 
—

 
12

Other, net
5

 
—

 
—

 
—

 
5

Net change in intercompany balances
539

 
(261
)
 
(278
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
5

 
(261
)
 
(284
)
 
—

 
(540
)
Effect of Exchange Rate Change on Cash
—

 
—

 
3

 
—

 
3

Increase (Decrease) in Cash and Cash Equivalents
—

 
(11
)
 
(309
)
 
—

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

 
21

 
1,124

 
—

 
1,145

Cash and Cash Equivalents at End of Period
$
—

 
$
10

 
$
815

 
$
—

 
$
825

Accounting Policies (Policy)
Basis Of Presentation 
Basis of Presentation
The consolidated condensed financial statements are unaudited and have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations of the United States Securities and Exchange Commission. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended September 27, 2014. Preparation of consolidated condensed financial statements requires us to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of December 27, 2014, and the results of operations for the three months ended December 27, 2014, and December 28, 2013. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.
Consolidation 
Consolidation
The consolidated condensed financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Recently Issued Accounting Pronouncements 
Recently Issued Accounting Pronouncements
In May 2014, the FASB issued guidance changing the criteria for recognizing revenue. The guidance also modifies the related disclosure requirements, clarifies guidance for multiple-element arrangements and provides guidance for transactions that were not addressed fully in previous guidance. 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 not permitted. The Company is currently evaluating the impact this guidance will have on our consolidated condensed financial statements.
Inventories (Policy)
Inventory, Policy [Policy Text Block]
INVENTORIES
Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
At December 27, 2014, 67% of the cost of inventories was determined by the first-in, first-out ("FIFO") method as compared to 66% at September 27, 2014. The remaining cost of inventories for both years is determined by the weighted-average method.
Acquisitions and Dispositions (Tables)
Schedule of Business Acquisitions, by Acquisition [Table Text Block] 
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date. Certain estimated values for the acquisition, including goodwill, intangible assets, plant property and equipment, and deferred taxes, are not yet finalized and the preliminary purchase price allocations are subject to change as we complete our analysis of the fair value at the date of acquisition. The purchase price was allocated based on information available at acquisition date. During the quarter ended December 27, 2014, we recorded measurement period adjustments, which reduced goodwill by $5 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.
 
in millions
 
Cash and cash equivalents
 
$
72

Accounts receivable
 
236

Inventories
 
418

Other current assets
 
343

Property, Plant and Equipment
 
1,303

Goodwill
 
4,799

Intangible Assets
 
5,141

Other Assets
 
66

Accounts payable
 
(347
)
Other current liabilities
 
(328
)
Long-Term Debt
 
(869
)
Deferred Income Taxes
 
(2,072
)
Other Liabilities
 
(518
)
Net assets 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 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 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] 
The 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 acquisition occurred on the assumed date, nor is it necessarily an indication of future operating results. The pro forma results for the three months ended December 28, 2013 include a nonrecurring tax benefit of $46 million recognized by Hillshire Brands primarily related to the release of valuation allowances on state deferred tax assets.
in millions
 
 
 
December 28, 2013
Pro forma sales
 
$
9,817

Pro forma net income from continuing operations attributable to Tyson
 
$
338

Pro forma net income per diluted share from continuing operations attributable to Tyson
 
$
0.81

Summary of Net Assets and Liabilities Held for Sale 
The following table summarizes the net assets and liabilities held for sale (in millions):
 
December 27, 2014
 
September 27, 2014
Assets held for sale:
 
 
 
Accounts receivable, net
$
23

 
$
74

Inventories
77

 
141

Other current assets
17

 
72

Net property, plant and equipment
76

 
132

Goodwill
14

 
16

Other assets
6

 
11

Total assets held for sale
$
213

 
$
446

Liabilities held for sale:
 
 
 
Current debt
$
—

 
$
32

Accounts payable
33

 
61

Other current liabilities
12

 
27

Long-term debt
—

 
9

Deferred income taxes
8

 
12

Other Liabilities
1

 
—

Total liabilities held for sale
$
54

 
$
141

Inventories (Tables)
Schedule of Inventory
The following table reflects the major components of inventory (in millions):
 
December 27, 2014
 
September 27, 2014
Processed products
$
1,703

 
$
1,794

Livestock
1,073

 
1,066

Supplies and other
416

 
414

Total inventory
$
3,192

 
$
3,274

Property, Plant And Equipment (Tables)
Property, Plant And Equipment And Accumulated Depreciation
The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): 

December 27, 2014
 
September 27, 2014
Land
$
126

 
$
126

Buildings and leasehold improvements
3,558

 
3,501

Machinery and equipment
6,204

 
6,144

Land improvements and other
278

 
276

Buildings and equipment under construction
409

 
334

 
10,575

 
10,381

Less accumulated depreciation
5,364

 
5,251

Net property, plant and equipment
$
5,211

 
$
5,130

Other Current Liabilities (Tables)
Schedule Of Other Current Liabilities
Other current liabilities are as follows (in millions):
 
December 27, 2014
 
September 27, 2014
Accrued salaries, wages and benefits
$
349

 
$
490

Other
808

 
717

Total other current liabilities
$
1,157

 
$
1,207

Debt (Tables)
Schedule of Major Components Of Debt
The major components of debt are as follows (in millions):
 
December 27, 2014
 
September 27, 2014
Revolving credit facility
$
—

 
$
—

Senior notes:
 
 
 
2.75% Senior notes due September 2015 (2015 Notes)
405

 
407

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

 
638

7.00% Notes due May 2018
120

 
120

2.65% Notes due August 2019 (2019 Notes)
1,000

 
1,000

4.10% Notes due September 2020 (2020 Notes)
286

 
287

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

 
1,000

3.95% Notes due August 2024 (2024 Notes)
1,250

 
1,250

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032 (2032 Notes)
164

 
164

4.88% Notes due August 2034 (2034 Notes)
500

 
500

5.15% Notes due August 2044 (2044 Notes)
500

 
500

Discount on senior notes
(11
)
 
(12
)
Term loan facility:
 
 
 
3-year tranche (1.56% at 12/27/2014)
872

 
1,172

5-year tranche A
—

 
353

5-year tranche B (1.69% at 12/27/2014)
552

 
552

Amortizing Notes - Tangible Equity Units (see Note 7: Equity)
192

 
205

Other
41

 
24

Total debt
7,527

 
8,178

Less current debt
596

 
643

Total long-term debt
$
6,931

 
$
7,535

Equity (Tables)
Schedule of Share Repurchase 
A summary of cumulative share repurchases of our Class A stock is as follows (in millions):
 
 
Three Months Ended
 
 
December 27, 2014
 
December 28, 2013
 
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
Under share repurchase program
 
2.0

 
$
81

 
4.6

 
$
150

To fund certain obligations under equity compensation plans
 
0.2

 
10

 
0.3

 
9

Total share repurchases
 
2.2

 
$
91

 
4.9

 
$
159

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

Earnings Per Share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): 
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
Numerator:
 
 
 
Net Income
$
310

 
$
252

Less: Net income (loss) attributable to noncontrolling interests
1

 
(2
)
Net income attributable to Tyson
309

 
254

Less dividends declared:
 
 
 
Class A
38

 
28

Class B
8

 
6

Undistributed earnings
$
263

 
$
220

 
 
 
 
Class A undistributed earnings
$
221

 
$
179

Class B undistributed earnings
42

 
41

Total undistributed earnings
$
263

 
$
220

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Class A weighted average shares
336

 
271

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

 
70

Effect of dilutive securities:
 
 
 
Stock options and restricted stock
5

 
5

Tangible Equity Units
5

 
—

Warrants
—

 
8

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
416

 
354

 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
Class A Basic
$
0.77

 
$
0.76

Class B Basic
$
0.71

 
$
0.68

Diluted
$
0.74

 
$
0.72

Derivative Financial Instruments (Tables)
Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value 
The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions):
 
Fair Value
 
December 27, 2014
 
September 27, 2014
Derivative Assets:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
31

 
$
17

Foreign exchange contracts
—

 
—

Total derivative assets – designated
31

 
17

 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
31

 
42

Foreign exchange contracts
—

 
—

Total derivative assets – not designated
31

 
42

Total derivative assets
$
62

 
$
59

Derivative Liabilities:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
31

 
$
78

Foreign exchange contracts
—

 
—

Total derivative liabilities – designated
31

 
78

Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
37

 
80

Foreign exchange contracts
—

 
2

Total derivative liabilities – not designated
37

 
82

Total derivative liabilities
$
68

 
$
160

Schedule Of Notional Amount Of Derivatives 
We had the following aggregated notional values of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons): 
 
Metric
 
December 27, 2014
 
September 27, 2014
Commodity:
 
 
 
 
 
Corn
Bushels
 
—

 
—

Soy meal
Tons
 
800

 
2,300

Foreign Currency
United States dollar
 
$
—

 
$
1

Derivative Instruments, Gain (Loss) [Table Text Block] 
The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Gain/(Loss)
Recognized in OCI
On Derivatives
 
 
Consolidated Condensed
Statements of Income
Classification
 
Gain/(Loss)
Reclassified from
OCI to Earnings
 
 
Three Months Ended
 
 
 
Three Months Ended
 
December 27,
2014
 
December 28,
2013
 
 
 
December 27,
2014
 
December 28,
2013
Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
(2
)
 
Cost of Sales
 
$
(3
)
 
$
—

Foreign exchange contracts
—

 
(1
)
 
Other Income/Expense
 
—

 
—

Total
$
—

 
$
(3
)
 
 
 
$
(3
)
 
$
—

Schedule Of Notional Amount Of Derivatives 
We had the following aggregated notional values of outstanding forward contracts entered into to hedge firm commitments which are accounted for as a fair value hedge (in millions): 
 
Metric
 
December 27, 2014
 
September 27, 2014
Commodity:
 
 
 
 
 
Live Cattle
Pounds
 
442

 
427

Lean Hogs
Pounds
 
224

 
329

Derivative Instruments, Gain (Loss) [Table Text Block] 
 
 
 
in millions
 
 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
 
December 27,
2014
 
December 28,
2013
Gain/(Loss) on forwards
Cost of Sales
 
$
(40
)
 
$
(6
)
Gain/(Loss) on purchase contract
Cost of Sales
 
40

 
6

Schedule Of Notional Amount Of Derivatives 
We had the following aggregate outstanding notional values related to our undesignated positions (in millions, except soy meal tons): 
 
Metric
 
December 27, 2014
 
September 27, 2014
Commodity:
 
 
 
 
 
Corn
Bushels
 
16

 
—

Soy Meal
Tons
 
281,300

 
195,800

Soy Oil
Pounds
 
21

 
3

Live Cattle
Pounds
 
14

 
22

Lean Hogs
Pounds
 
1

 
22

Foreign Currency
United States dollars
 
$
29

 
$
108

Derivative Instruments, Gain (Loss) [Table Text Block] 
The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Consolidated Condensed
Statements of Income
Classification
 
Gain/(Loss)
Recognized in Earnings
 
 
 
 
Three Months Ended
 
 
 
December 27, 2014
 
December 28, 2013
Derivatives not designated as hedging instruments:
 
 
 
 
 
Commodity contracts
Sales
 
$
(1
)
 
$
2

Commodity contracts
Cost of Sales
 
(26
)
 
(2
)
Foreign exchange contracts
Other Income/Expense
 
(2
)
 
(1
)
Total
 
 
$
(29
)
 
$
(1
)
Fair Value Measurements (Tables)
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis 
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
December 27, 2014
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
62

 
$
—

 
$
(34
)
 
$
28

Foreign Exchange Forward Contracts
—

 
—

 
—

 
—

 
—

Available-for-Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
2

 
—

 
—

 
2

Non-current
17

 
28

 
65

 
—

 
110

Deferred Compensation Assets
5

 
230

 
—

 
—

 
235

Total Assets
$
22

 
$
322

 
$
65

 
$
(34
)
 
$
375

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
68

 
$
—

 
$
(68
)
 
$
—

Foreign Exchange Forward Contracts
—

 
—

 
—

 
—

 
—

Total Liabilities
$
—

 
$
68

 
$
—

 
$
(68
)
 
$
—

September 27, 2014
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
59

 
$
—

 
$
(50
)
 
$
9

Foreign Exchange Forward Contracts
—

 
—

 
—

 
—

 
—

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:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
158

 
$
—

 
$
(148
)
 
$
10

Foreign Exchange Forward Contracts
—

 
2

 
—

 
—

 
2

Total Liabilities
$
—

 
$
160

 
$
—

 
$
(148
)
 
$
12


(a)
Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At December 27, 2014 and September 27, 2014, we had posted with various counterparties $34 million and $98 million, respectively, of cash collateral related to our commodity derivatives and held no cash collateral.
Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation 
The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): 
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
Balance at beginning of year
$
67

 
$
65

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
4

 
7

Issuances
—

 
—

Settlements
(6
)
 
(8
)
Balance at end of period
$
65

 
$
64

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

 
$
—

Schedule Of Available For Sale Securities 
The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):
 
December 27, 2014
 
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:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and Agency
$
29

 
$
30

 
$
1

 
$
25

 
$
25

 
$
—

Corporate and Asset-Backed
65

 
65

 
—

 
65

 
67

 
2

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock (a)
1

 
17

 
16

 
1

 
1

 
—

 
(a)
At December 27, 2014 and September 27, 2014, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of approximately $2 million.
Schedule Of Fair Value And Carrying Value Of Debt 
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):
 
December 27, 2014
 
September 27, 2014
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total Debt
$
7,815

 
$
7,527

 
$
8,347

 
$
8,178



Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans (Tables)
Schedule of Net Benefit Costs [Table Text Block]
The components of the net periodic cost for the pension and postretirement benefit plans for the three months ended December 27, 2014 and December 28, 2013 are as follows (in millions):
 
Pension Plans
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
 
 
 
 
Service cost
$
4

 
$
2

Interest cost
21

 
2

Expected return on plan assets
(25
)
 
(1
)
Amortization of:

 

   Net actuarial loss
1

 
1

Settlement loss
8

 
—

Net periodic cost
$
9

 
$
4


 
Postretirement Benefit Plans
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
 
 
 
 
Service cost
$
1

 
$
—

Interest cost
2

 
1

Net periodic cost
$
3

 
$
1

Other Comprehensive Income (Tables)
Components Of Other Comprehensive Income (Loss)
The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions):
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
(Gain) loss reclassified to Cost of Sales
$
3

$
(2
)
$
1

 
$
—

$
—

$
—

Unrealized gain (loss)
—

—

—

 
(3
)
1

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

—

—

 
6

(2
)
4

Unrealized gain (loss)
15

(6
)
9

 
(1
)
—

(1
)
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
Translation loss reclassified to Cost of Sales (a)
37

(1
)
36

 
—

—

—

Translation adjustment
(37
)
7

(30
)
 
(11
)
—

(11
)
 
 
 
 
 
 
 
 
Postretirement benefits
9

(2
)
7

 
1

1

2

Total Other Comprehensive Income (Loss)
$
27

$
(4
)
$
23

 
$
(8
)
$
—

$
(8
)

(a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 2: Acquisitions and Dispositions.
Segment Reporting (Tables)
Segment Reporting Information, By Segment
Information on segments and a reconciliation to income before income taxes are as follows (in millions): 
 
Three Months Ended
 
December 27, 2014
 
December 28, 2013
Sales:
 
 
 
Chicken
$
2,780

 
$
2,656

Beef
4,391

 
3,734

Pork
1,540

 
1,424

Prepared Foods
2,133

 
907

International
305

 
327

Other
—

 
—

Intersegment Sales
(332
)
 
(287
)
Total Sales
$
10,817

 
$
8,761

 
 
 
 
Operating Income (Loss):
 
 
 
Chicken
$
351

 
$
253

Beef
(6
)
 
58

Pork
122

 
121

Prepared Foods
71

 
16

International
(14
)
 
(28
)
Other
(15
)
 
(8
)
Total Operating Income
509

 
412

 
 
 
 
Total Other (Income) Expense
74


29

 
 
 
 
Income before Income Taxes
$
435

 
$
383

Condensed Consolidating Financial Statements (Tables)
Condensed Consolidating Statement Of Income and Comprehensive Income 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 27, 2014
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
228

 
$
5,809

 
$
5,325

 
$
(545
)
 
$
10,817

Cost of Sales
19

 
5,662

 
4,722

 
(542
)
 
9,861

Gross Profit
209

 
147

 
603

 
(3
)
 
956

Selling, General and Administrative
34

 
61

 
355

 
(3
)
 
447

Operating Income
175

 
86

 
248

 
—

 
509

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
69

 
—

 
6

 
—

 
75

Other, net
(1
)
 
—

 
—

 
—

 
(1
)
Equity in net earnings of subsidiaries
(237
)
 
(38
)
 
—

 
275

 
—

Total Other (Income) Expense
(169
)
 
(38
)
 
6

 
275

 
74

Income (Loss) before Income Taxes
344

 
124

 
242

 
(275
)
 
435

Income Tax (Benefit) Expense
35

 
30

 
60

 
—

 
125

Net Income
309

 
94

 
182

 
(275
)
 
310

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

 
—

 
1

 
—

 
1

Net Income Attributable to Tyson
$
309

 
$
94

 
$
181

 
$
(275
)
 
$
309

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
332

 
104

 
186

 
(289
)
 
333

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

 
—

 
1

 
—

 
1

Comprehensive Income (Loss) Attributable to Tyson
$
332

 
$
104

 
$
185

 
$
(289
)
 
$
332

 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 28, 2013
 
in millions

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

 
$
5,048

 
$
3,987

 
$
(441
)
 
$
8,761

Cost of Sales
17

 
4,826

 
3,674

 
(441
)
 
8,076

Gross Profit
150

 
222

 
313

 
—

 
685

Selling, General and Administrative
23

 
55

 
195

 
—

 
273

Operating Income
127

 
167

 
118

 
—

 
412

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
5

 
15

 
6

 
—

 
26

Other, net
6

 
(1
)
 
(2
)
 
—

 
3

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

 
181

 
—

Total Other (Income) Expense
(164
)
 
8

 
4

 
181

 
29

Income (Loss) before Income Taxes
291

 
159

 
114

 
(181
)
 
383

Income Tax (Benefit) Expense
37

 
52

 
42

 
—

 
131

Net Income
254

 
107

 
72

 
(181
)
 
252

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

 
—

 
(2
)
 
—

 
(2
)
Net Income Attributable to Tyson
$
254

 
$
107

 
$
74

 
$
(181
)
 
$
254

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
244

 
102

 
63

 
(165
)
 
244

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

 
—

 
(2
)
 
—

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

 
$
102

 
$
65

 
$
(165
)
 
$
246

 
Condensed Consolidating Balance Sheet as of December 27, 2014
 
in millions

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

 
$
12

 
$
369

 
$
—

 
$
381

Accounts receivable, net
1

 
724

 
1,052

 
—

 
1,777

Inventories
—

 
1,312

 
1,880

 
—

 
3,192

Other current assets
43

 
67

 
301

 
(36
)
 
375

Assets held for sale
3

 
—

 
210

 
—

 
213

Total Current Assets
47

 
2,115

 
3,812

 
(36
)
 
5,938

Net Property, Plant and Equipment
28

 
948

 
4,235

 
—

 
5,211

Goodwill
—

 
881

 
5,819

 
—

 
6,700

Intangible Assets, net
—

 
14

 
5,232

 
—

 
5,246

Other Assets
160

 
149

 
354

 
—

 
663

Investment in Subsidiaries
21,153

 
2,092

 
—

 
(23,245
)
 
—

Total Assets
$
21,388

 
$
6,199

 
$
19,452

 
$
(23,281
)
 
$
23,758

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
189

 
$
—

 
$
407

 
$
—

 
$
596

Accounts payable
28

 
1,148

 
971

 
—

 
2,147

Other current liabilities
5,414

 
163

 
859

 
(5,279
)
 
1,157

Liabilities held for sale
—

 
—

 
54

 
—

 
54

Total Current Liabilities
5,631

 
1,311

 
2,291

 
(5,279
)
 
3,954

Long-Term Debt
6,441

 
2

 
488

 
—

 
6,931

Deferred Income Taxes
17

 
101

 
2,355

 
—

 
2,473

Other Liabilities
176

 
127

 
960

 
—

 
1,263

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,123

 
4,658

 
13,344

 
(18,002
)
 
9,123

Noncontrolling Interest
—

 
—

 
14

 
—

 
14

Total Shareholders’ Equity
9,123

 
4,658

 
13,358

 
(18,002
)
 
9,137

Total Liabilities and Shareholders’ Equity
$
21,388

 
$
6,199

 
$
19,452

 
$
(23,281
)
 
$
23,758


Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet as of December 27, 2014
 
in millions

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

 
$
12

 
$
369

 
$
—

 
$
381

Accounts receivable, net
1

 
724

 
1,052

 
—

 
1,777

Inventories
—

 
1,312

 
1,880

 
—

 
3,192

Other current assets
43

 
67

 
301

 
(36
)
 
375

Assets held for sale
3

 
—

 
210

 
—

 
213

Total Current Assets
47

 
2,115

 
3,812

 
(36
)
 
5,938

Net Property, Plant and Equipment
28

 
948

 
4,235

 
—

 
5,211

Goodwill
—

 
881

 
5,819

 
—

 
6,700

Intangible Assets, net
—

 
14

 
5,232

 
—

 
5,246

Other Assets
160

 
149

 
354

 
—

 
663

Investment in Subsidiaries
21,153

 
2,092

 
—

 
(23,245
)
 
—

Total Assets
$
21,388

 
$
6,199

 
$
19,452

 
$
(23,281
)
 
$
23,758

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
189

 
$
—

 
$
407

 
$
—

 
$
596

Accounts payable
28

 
1,148

 
971

 
—

 
2,147

Other current liabilities
5,414

 
163

 
859

 
(5,279
)
 
1,157

Liabilities held for sale
—

 
—

 
54

 
—

 
54

Total Current Liabilities
5,631

 
1,311

 
2,291

 
(5,279
)
 
3,954

Long-Term Debt
6,441

 
2

 
488

 
—

 
6,931

Deferred Income Taxes
17

 
101

 
2,355

 
—

 
2,473

Other Liabilities
176

 
127

 
960

 
—

 
1,263

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,123

 
4,658

 
13,344

 
(18,002
)
 
9,123

Noncontrolling Interest
—

 
—

 
14

 
—

 
14

Total Shareholders’ Equity
9,123

 
4,658

 
13,358

 
(18,002
)
 
9,137

Total Liabilities and Shareholders’ Equity
$
21,388

 
$
6,199

 
$
19,452

 
$
(23,281
)
 
$
23,758


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, net
—

 
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 Interest
—

 
—

 
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 
Condensed Consolidating Statement of Cash Flows for the three months ended December 27, 2014
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
55

 
$
325

 
$
432

 
$
—

 
$
812

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

 
(40
)
 
(191
)
 
—

 
(231
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
(3
)
 
—

 
(3
)
Proceeds from sale of businesses
—

 
—

 
142

 
—

 
142

Other, net
—

 
—

 
3

 
—

 
3

Cash Provided by (Used for) Investing Activities
—

 
(40
)
 
(49
)
 
—

 
(89
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(667
)
 
—

 
(1
)
 
—

 
(668
)
Purchases of Tyson Class A common stock
(91
)
 
—

 
—

 
—

 
(91
)
Dividends
(37
)
 
—

 
—

 
—

 
(37
)
Stock options exercised
16

 
—

 
—

 
—

 
16

Other, net
5

 
—

 
—

 
—

 
5

Net change in intercompany balances
719

 
(314
)
 
(405
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(55
)
 
(314
)
 
(406
)
 
—

 
(775
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(5
)
 
—

 
(5
)
Increase (Decrease) in Cash and Cash Equivalents
—

 
(29
)
 
(28
)
 
—

 
(57
)
Cash and Cash Equivalents at Beginning of Year
—

 
41

 
397

 
—

 
438

Cash and Cash Equivalents at End of Period
$
—

 
$
12

 
$
369

 
$
—

 
$
381

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

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

 
$
81

 
$
—

 
$
361

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

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

 
—

 
(1
)
 
—

 
(1
)
Other, net
—

 
1

 
(4
)
 
—

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

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

 
(6
)
 
—

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

 
—

 
—

 
(159
)
Dividends
(25
)
 
—

 
—

 
—

 
(25
)
Stock options exercised
12

 
—

 
—

 
—

 
12

Other, net
5

 
—

 
—

 
—

 
5

Net change in intercompany balances
539

 
(261
)
 
(278
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
5

 
(261
)
 
(284
)
 
—

 
(540
)
Effect of Exchange Rate Change on Cash
—

 
—

 
3

 
—

 
3

Increase (Decrease) in Cash and Cash Equivalents
—

 
(11
)
 
(309
)
 
—

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

 
21

 
1,124

 
—

 
1,145

Cash and Cash Equivalents at End of Period
$
—

 
$
10

 
$
815

 
$
—

 
$
825

Acquisitions and Dispositions Preliminary Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Aug. 28, 2014
Hillshire Brands Company [Member]
Business Acquisition [Line Items]
 
 
 
Cash and cash equivalents
 
 
$ 72 
Accounts receivable
 
 
236 
Inventories
 
 
418 
Other current assets
 
 
343 
Property, Plant, and Equipment
 
 
1,303 
Goodwill
6,700 
6,706 
4,799 
Intangible Assets
 
 
5,141 
Other Assets
 
 
66 
Accounts payable
 
 
(347)
Other current liabilities
 
 
(328)
Long-term Debt
 
 
(869)
Deferred Income taxes
 
 
(2,072)
Other Liabilities
 
 
(518)
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 Acquisition Pro Forma information (Details) (Hillshire Brands Company [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 28, 2013
Hillshire Brands Company [Member]
 
Business Acquisition [Line Items]
 
Pro forma sales
$ 9,817 
Pro forma net income from continuing operations attributable to Tyson
$ 338 
Pro Forma net income per diluted share from continuing operations attributable to Tyson
$ 0.81 
Acquisitions and Dispositions Summary of Assets Held for Sale (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Total assets held for sale
$ 213 
$ 446 
Liabilities held for sale
54 
141 
International [Member] |
Chicken Production Operations in Mexico [Member]
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Accounts receivable, net
23 
 
Inventories
77 
 
Other current assets
17 
 
Net property, plant and equipment
76 
 
Goodwill
14 
 
Other assets
6 
 
Total assets held for sale
213 
 
Current debt
0 
 
Accounts payable
33 
 
Other current liabilities
12 
 
Long-term debt
0 
 
Deferred income taxes
8 
 
Other Liabilities
1 
 
Liabilities held for sale
54 
 
International [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 
Other Liabilities
 
0 
Liabilities held for sale
 
$ 141 
Acquisitions (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 3 Months Ended 3 Months Ended
Dec. 27, 2014
Sep. 27, 2014
Aug. 28, 2014
Hillshire Brands Company [Member]
Dec. 27, 2014
Hillshire Brands Company [Member]
Dec. 28, 2013
Hillshire Brands Company [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Mar. 29, 2014
Series of Individually Immaterial Business Acquisitions [Member]
business
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Purchase price per share of acquired entity's common stock
 
 
$ 63.00 
 
 
 
 
Purchase Price
 
 
$ 8,081 
 
 
 
 
Breakage costs incurred related to previously proposed acquisition
 
 
163 
 
 
 
 
Goodwill, Purchase Accounting Adjustments
 
 
 
5 
 
 
 
Goodwill
6,700 
6,706 
 
 
 
4,799 
18 
Valuation Allowances and Reserves, Adjustments
 
 
 
 
46 
 
 
Number of Businesses Acquired
 
 
 
 
 
 
1 
Acquisitions, net of cash acquired
 
 
 
 
 
 
56 
Property, Plant, and Equipment
 
 
 
 
 
1,303 
12 
Intangible Assets
 
 
 
 
 
$ 5,141 
$ 27 
Dispositions (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Sep. 27, 2014
Prepared Foods [Member]
Facility Closing [Member]
Facilities
Sep. 27, 2014
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Sep. 27, 2014
Chicken Production Operations in Brazil and Mexico [Member]
International [Member]
Sep. 27, 2014
Chicken Production Operations in Brazil [Member]
International [Member]
Dec. 27, 2014
Chicken Production Operations in Brazil [Member]
International [Member]
Sep. 27, 2014
Dynamic Fuels Deconsolidation [Member]
Sep. 27, 2014
Dynamic Fuels Deconsolidation [Member]
Variable Interest Entity, Primary Beneficiary [Member]
Jun. 28, 2014
Dynamic Fuels Deconsolidation [Member]
Variable Interest Entity, Primary Beneficiary [Member]
Cost of Sales [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
Disposal Group, Consideration
 
 
$ 575 
 
$ 130 
 
 
 
Asset Impairment Charges
 
52 
 
39 
 
 
 
 
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage
 
 
 
 
 
 
50.00% 
 
Proceeds from Divestiture of Businesses
 
 
 
 
 
 
30 
 
Future Contingent Cash Payment
 
 
 
 
 
 
35 
 
Disposal Group, Future Contingent Consideration, Period of production volumes
 
 
 
 
 
11 years 6 months 
 
 
Guarantor Obligations Release of Guarantees
 
 
 
 
 
100 
 
 
Gain (Loss) on Disposition of Business
 
 
 
 
 
 
 
$ 3 
Plants Closed
3 
 
 
 
 
 
 
 
Inventories (Schedule Of Inventory) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Inventory Disclosure [Abstract]
 
 
Processed products
$ 1,703 
$ 1,794 
Livestock
1,073 
1,066 
Supplies and other
416 
414 
Total inventories
$ 3,192 
$ 3,274 
Inventories Inventories (Narrative) (Details)
Dec. 27, 2014
Sep. 27, 2014
Inventory Disclosure [Abstract]
 
 
Percentage of FIFO Inventory
67.00% 
66.00% 
Property, Plant And Equipment (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 10,575 
$ 10,381 
Less accumulated depreciation
5,364 
5,251 
Net property, plant and equipment
5,211 
5,130 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
126 
126 
Buildings And Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
3,558 
3,501 
Machinery And Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
6,204 
6,144 
Land Improvements And Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
278 
276 
Buildings And Equipment Under Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 409 
$ 334 
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Other Liabilities, Current [Abstract]
 
 
Accrued salaries, wages and benefits
$ 349 
$ 490 
Other
808 
717 
Total other current liabilities
$ 1,157 
$ 1,207 
Debt (Major Components Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended
Aug. 31, 2014
Dec. 27, 2014
Sep. 27, 2014
Debt Instrument [Line Items]
 
 
 
Revolving credit facility
 
$ 0 
$ 0 
Discount on senior notes
 
(11)
(12)
Amortizing Notes- Tangible Equity Units
 
192 
205 
Other
 
41 
24 
Total debt
 
7,527 
8,178 
Less current debt
 
596 
643 
Total long-term debt
 
6,931 
7,535 
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
405 
407 
Stated interest rate
2.75% 
2.75% 
 
6.60% Senior Notes Due April 2016 (2016 Notes) [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 Unsecured Notes Due August, Two Thousand and Nineteen [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
1,000 
1,000 
Stated interest rate
 
2.65% 
 
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
286 
287 
Stated interest rate
4.10% 
4.10% 
 
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
1,000 
1,000 
Stated interest rate
 
4.50% 
 
3.95% Senior Unsecured Notes Due August, Two Thousand and Twenty Four [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% Unsecured Notes Due November Two Thousand And Thirty Two [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
164 
164 
Stated interest rate
6.13% 
6.13% 
 
4.88% Percentage Senior Unsecured Notes Due August, Two Thousand and Thirty Four [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
500 
500 
Stated interest rate
 
4.88% 
 
5.15% Senior Unsecured Notes Due August, Two Thousand and Forty Four [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
500 
500 
Stated interest rate
 
5.15% 
 
3-Year Tranche [Member] |
Term Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
 
872 
1,172 
Stated interest rate
 
1.56% 
 
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 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 
5 years 
 
Debt (Narrative) (Details) (USD $)
1 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended
Dec. 27, 2014
Sep. 27, 2014
Dec. 27, 2014
2.65% Senior Unsecured Notes Due August, Two Thousand and Nineteen [Member]
Dec. 27, 2014
3.95% Senior Unsecured Notes Due August, Two Thousand and Twenty Four [Member]
Dec. 27, 2014
4.88% Percentage Senior Unsecured Notes Due August, Two Thousand and Thirty Four [Member]
Dec. 27, 2014
5.15% Senior Unsecured Notes Due August, Two Thousand and Forty Four [Member]
Dec. 27, 2014
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member]
Aug. 31, 2014
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member]
Dec. 27, 2014
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member]
Aug. 31, 2014
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member]
Dec. 27, 2014
6.13% Unsecured Notes Due November Two Thousand And Thirty Two [Member]
Aug. 31, 2014
6.13% Unsecured Notes Due November Two Thousand And Thirty Two [Member]
Aug. 31, 2014
Hillshire Brands Company [Member]
Aug. 31, 2014
Hillshire Brands Company [Member]
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member]
Aug. 31, 2014
Hillshire Brands Company [Member]
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member]
Aug. 31, 2014
Hillshire Brands Company [Member]
6.13% Unsecured Notes Due November Two Thousand And Thirty Two [Member]
Aug. 31, 2014
Unsecured Debt [Member]
Aug. 31, 2014
Unsecured Debt [Member]
2.65% Senior Unsecured Notes Due August, Two Thousand and Nineteen [Member]
Aug. 31, 2014
Unsecured Debt [Member]
3.95% Senior Unsecured Notes Due August, Two Thousand and Twenty Four [Member]
Aug. 31, 2014
Unsecured Debt [Member]
4.88% Percentage Senior Unsecured Notes Due August, Two Thousand and Thirty Four [Member]
Aug. 31, 2014
Unsecured Debt [Member]
5.15% Senior Unsecured Notes Due August, Two Thousand and Forty Four [Member]
Dec. 27, 2014
Standby Letters of Credit [Member]
Dec. 27, 2014
Bilateral Letters Of Credit [Member]
Aug. 31, 2014
Term Loan [Member]
Aug. 31, 2014
Term Loan [Member]
3-Year Tranche [Member]
Dec. 27, 2014
Term Loan [Member]
3-Year Tranche [Member]
Aug. 31, 2014
Term Loan [Member]
5-Year Tranche A [Member]
Dec. 27, 2014
Term Loan [Member]
5-Year Tranche A [Member]
Aug. 31, 2014
Term Loan [Member]
5-Year Tranche B [Member]
Dec. 27, 2014
Term Loan [Member]
5-Year Tranche B [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity
$ 1,250,000,000.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available for borrowing under credit facility
1,245,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of Credit Outstanding, Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
102,000,000 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
 
 
840,000,000 
400,000,000 
278,000,000 
152,000,000 
3,250,000,000 
1,000,000,000 
1,250,000,000 
500,000,000 
500,000,000 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
2.65% 
3.95% 
4.88% 
5.15% 
2.75% 
2.75% 
4.10% 
4.10% 
6.13% 
6.13% 
 
 
 
 
 
2.65% 
3.95% 
4.88% 
5.15% 
 
 
 
 
1.56% 
 
 
 
1.69% 
Debt Instrument, Unamortized Discount
11,000,000 
12,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from Issuance of Unsecured Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,243,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Issuance Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27,000,000 
 
 
 
 
 
 
11,000,000 
 
 
 
 
 
 
Loans Payable to Bank
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,300,000,000 
1,202,000,000 
 
546,000,000 
 
552,000,000 
 
Debt Instrument, Term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
3 years 
5 years 
5 years 
5 years 
5 years 
Required Quarterly Principal Payment as a Percentage of Remaining Balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.50% 
 
 
 
 
 
Loans Receivable, Basis Spread on Variable Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.375% 
 
 
 
1.50% 
 
Debt Instrument, Fair Value Disclosure
$ 7,815,000,000 
$ 8,347,000,000 
 
 
 
 
 
 
 
 
 
 
$ 868,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity (Schedule of Share Repurchases) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Class of Stock [Line Items]
 
 
Payments for Repurchase of Common Stock
$ 91 
$ 159 
Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Treasury Stock, Shares, Acquired
2.2 
4.9 
Payments for Repurchase of Common Stock
91 
159 
Share Repurchase Program [Member] |
Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Treasury Stock, Shares, Acquired
2.0 
4.6 
Payments for Repurchase of Common Stock
81 
150 
Open Market Repurchases [Member] |
Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Treasury Stock, Shares, Acquired
0.2 
0.3 
Payments for Repurchase of Common Stock
$ 10 
$ 9 
Equity (Schedule of Tangible Equity Units) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 27, 2014
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
205 
Gross Proceeds, Total
1,500 
Issuance cost, Equity Component
(40)
Issuance cost, Debt Component
(6)
Issuance cost, Total
46 
Net Proceeds, Equity Component
1,255 
Net Proceeds, Debt Component
199 
Net proceeds, Total
$ 1,454 
Equity (Narrative) (Details) (USD $)
12 Months Ended 12 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended
Sep. 27, 2014
Dec. 27, 2014
Sep. 27, 2014
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Aug. 31, 2014
Hillshire Brands Company [Member]
Dec. 15, 2014
Class A [Member]
Dec. 27, 2014
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Dec. 27, 2014
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Minimum [Member]
Dec. 27, 2014
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]
Sep. 27, 2014
Class A [Member]
Share Repurchase Program [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Increase (Decrease) in Authorized Shares
 
 
 
 
 
 
 
 
 
 
25,000,000 
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased
 
30,100,000 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, New Issues
 
 
 
 
 
 
 
 
 
23,800,000 
 
Proceeds from Issuance of Common Stock
 
 
 
$ 873,000,000 
 
 
 
 
 
 
 
TEU's issued (in units)
30,000,000 
 
 
 
 
 
 
 
 
 
 
TEU's Dividend Rate
4.75% 
 
 
 
 
 
 
 
 
 
 
Proceeds from Issuance of Tangible Equity Units, Net
1,454,000,000 
 
 
 
 
 
 
 
 
 
 
TEUs, stated amount per unit (in dollars per unit)
$ 50 
 
 
 
 
 
 
 
 
 
 
TEUs, Equity Component
1,295,000,000 
 
 
 
 
 
 
 
 
 
 
TEUs, Debt Component
205,000,000 
192,000,000 
 
 
 
 
 
 
 
 
 
TEUs, Debt Component, Current
65,000,000 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, initial principal amount
 
 
6.83 
 
840,000,000 
 
 
 
 
 
 
Senior amortizing note, interest rate
 
 
1.50% 
 
 
 
 
 
 
 
 
Senior amortizing note, quarterly principal and interest payment, first three annual quarters
 
 
0.59 
 
 
 
 
 
 
 
 
Senior amortizing note, quarterly principal and interest payment, fourth annual quarter
 
 
$ 0.46 
 
 
 
 
 
 
 
 
Senior amortizing note, number of shares to be issued
 
 
 
 
 
 
 
31,800,000 
39,700,000 
 
 
Senior amortizing note, conversion price
 
 
 
 
 
 
$ 47.22 
 
 
 
 
Senior amortizing note, number of shares per contract if applicable market value equal to or greater than conversion price
 
 
 
 
 
 
1.0588 
 
 
 
 
Senior amortizing note, reference price
 
 
 
 
 
 
$ 37.78 
 
 
 
 
Senior amortizing note, if applicable market value greater than reference price, number of shares equal to aount 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
 
 
 
 
 
 
1.3236 
 
 
 
 
Senior amortizing note, consecutive trading days for calculation of applicable market value
 
 
 
 
 
 
20 days 
 
 
 
 
Common Stock, Dividends, Per Share, Cash Paid
 
 
 
 
 
$ 0.10 
 
 
 
 
 
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
 
 
 
 
 
 
7,900,000 
 
 
 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Sep. 27, 2014
Income Tax Disclosure [Abstract]
 
 
 
Effective tax rate for continuing operations
28.80% 
34.30% 
 
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations
6.50% 
 
 
Unrecognized tax benefits
$ 239 
 
$ 272 
Unrecognized tax benefits that would impact effective tax rate
209 
 
241 
Unrecognized tax benefits, income tax penalties and interest accrued
52 
 
54 
Unrecognized tax benefits, reductions that could result from tax audit resolutions
$ 5 
 
 
Other Income And Charges (Details) (Other Nonoperating Income (Expense) [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Other Nonoperating Income (Expense) [Member]
 
 
Components of Other Income and Expenses [Line Items]
 
 
Equity Earnings in Joint Ventures
$ 1 
$ 2 
Foreign Currency Transaction Gain (Loss), Realized
 
1 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
 
$ 6 
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Net income
$ 310 
$ 252 
Less: Net income (loss) attributable to noncontrolling interest
1 
(2)
Net income attributable to Tyson
309 
254 
Undistributed earnings
263 
220 
Stock options and restricted stock
5 
5 
Tangible Equity Units
5 
0 
Warrants
0 
8 
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions
416 
354 
Net Income Per Share Attributable to Tyson - Diluted
$ 0.74 
$ 0.72 
Class A [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Less Dividends Declared:
38 
28 
Undistributed earnings
221 
179 
Weighted average number of shares outstanding - Basic
336 
271 
Net Income Per Share Attributable to Tyson - Basic
$ 0.77 
$ 0.76 
Class B [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Less Dividends Declared:
8 
6 
Undistributed earnings
$ 42 
$ 41 
Weighted average number of shares outstanding - Basic
70 
70 
Net Income Per Share Attributable to Tyson - Basic
$ 0.71 
$ 0.68 
Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Number Of Classes Of Common Stock
2 
 
Percentage amount of per share cash dividends paid to holders of Class B stock that cannot exceed paid to holders of Class A stock
90.00% 
 
Class A [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Undistributed earnings (losses), ratio used to calculate allocation to class of stock
1 
 
Class B [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Undistributed earnings (losses), ratio used to calculate allocation to class of stock
0.9 
 
Stock Compensation Plan [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share, shares
6 
5 
Derivative Financial Instruments (Pretax Impact Of Cash Flow Hedge Derivative Instruments On The Consolidated Statements Of Income) (Details) (Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ 0 
$ (3)
Gain/(Loss) Reclassified from OCI to Earnings
(3)
0 
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
0 
(2)
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Reclassified from OCI to Earnings
(3)
0 
Foreign Currency [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
0 
(1)
Foreign Currency [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Reclassified from OCI to Earnings
$ 0 
$ 0 
Derivative Financial Instruments (Pretax Impact Of Fair Value Hedge Derivative Instruments On The Consolidated Statements of Income) (Details) (Fair Value Hedging [Member], Cost of Sales [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Forward Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) on forwards
$ (40)
$ (6)
Purchase Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) on forwards
$ 40 
$ 6 
Derivative Financial Instruments (Pretax Impact Of Undesignated Derivative Instruments On The Consolidated Statements Of Income) (Details) (Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
$ (29)
$ (1)
Commodity Contracts [Member] |
Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
(1)
2 
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
(26)
(2)
Foreign Currency [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
$ (2)
$ (1)
Derivative Financial Instruments (Fair Value Of All Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Derivative [Line Items]
 
 
Derivative Assets
$ 62 
$ 59 
Derivative Liabilities
68 
160 
Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
31 
17 
Derivative Liabilities
31 
78 
Designated as Hedging Instrument [Member] |
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
31 
17 
Derivative Liabilities
31 
78 
Designated as Hedging Instrument [Member] |
Foreign Currency [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0 
0 
Derivative Liabilities
0 
0 
Not Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
31 
42 
Derivative Liabilities
37 
82 
Not Designated as Hedging Instrument [Member] |
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
31 
42 
Derivative Liabilities
37 
80 
Not Designated as Hedging Instrument [Member] |
Foreign Currency [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0 
0 
Derivative Liabilities
$ 0 
$ 2 
Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Derivative [Line Items]
 
Maximum length of time hedged forecasted transactions, months
18 months 
Maximum Length Of Time Hedged Undesignated Positions
18 months 
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
Dec. 27, 2014
Sep. 27, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative assets and liabilities posted cash collateral
$ 34 
$ 98 
Derivative, Collateral, Obligation to Return Cash
0 
0 
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-Sale Securities, Current
2 
1 
Available for Sale Securities, Noncurrent
110 
92 
Deferred Compensation Assets
235 
233 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
34 1
50 1
Total Assets
375 
335 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
68 1
148 1
Total Liabilities
0 
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
17 
1 
Deferred Compensation Assets
5 
15 
Total Assets
22 
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
2 
1 
Available for Sale Securities, Noncurrent
28 
24 
Deferred Compensation Assets
230 
218 
Total Assets
322 
302 
Total Liabilities
68 
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
0 
0 
Available for Sale Securities, Noncurrent
65 
67 
Deferred Compensation Assets
0 
0 
Total Assets
65 
67 
Total Liabilities
0 
0 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
28 
9 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
34 
50 
Derivative Financial Instruments, Liabilities
0 
10 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
68 
148 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
0 
0 
Derivative Financial Instruments, Liabilities
0 
0 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
62 
59 
Derivative Financial Instruments, Liabilities
68 
158 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
0 
0 
Derivative Financial Instruments, Liabilities
0 
0 
Foreign Exchange Contract [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign Currency Contract, Asset, Fair Value Disclosure
0 
0 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
0 
0 
Foreign Exchange Forward Contracts, Liabilities
0 
2 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
0 
0 
Foreign Exchange Contract [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign Currency Contract, Asset, Fair Value Disclosure
0 
0 
Foreign Exchange Forward Contracts, Liabilities
0 
0 
Foreign Exchange Contract [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign Currency Contract, Asset, Fair Value Disclosure
0 
0 
Foreign Exchange Forward Contracts, Liabilities
0 
2 
Foreign Exchange Contract [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign Currency Contract, Asset, Fair Value Disclosure
0 
0 
Foreign Exchange Forward Contracts, Liabilities
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Balance at beginning of year
$ 67 
$ 65 
Total realized gains (losses) included in earnings
0 
0 
Total unrealized gains (losses) included in other comprehensive income (loss)
0 
0 
Purchases
4 
7 
Issuances
0 
0 
Settlements
(6)
(8)
Balance at end of period
65 
64 
Total gains (losses) for the nine-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
U.S. Treasury and Agency [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Unrealized Gain/(Loss)
$ 1 
$ 0 
Amortized Cost Basis
29 
25 
Fair Value
30 
25 
Corporate And Asset-Backed [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Unrealized Gain/(Loss)
0 
2 
Amortized Cost Basis
65 
65 
Fair Value
65 
67 
Common Stock and Warrants [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Unrealized Gain/(Loss)
16 
0 
Amortized Cost Basis
1 1
1 1
Fair Value
17 
1 
Cumulative Other-than-Temporary Impairment Loss
$ 2 
$ 2 
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Fair Value Disclosures [Abstract]
 
 
Total Debt, Fair Value
$ 7,815 
$ 8,347 
Total Debt, Carrying Value
$ 7,527 
$ 8,178 
Fair Value Measurements Fair Value Measurement (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Sep. 28, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Liabilities, Fair Value Disclosure, Nonrecurring
$ 0 
$ 0 
 
Assets, Fair Value Disclosure, Nonrecurring
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 in Other Comprehensive Loss, before Tax, Portion Attributable to Parent
0 
 
0 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
$ 0 
$ 6 
 
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 
 
 
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Pension Plan [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
$ 4 
$ 2 
Interest Cost
21 
2 
Expected Return on Plan Assets
(25)
(1)
Amortization of net actuarial loss
1 
1 
Settlement loss
8 
0 
Net Periodic Cost
9 
4 
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
1 
0 
Interest Cost
2 
1 
Net Periodic Cost
$ 3 
$ 1 
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Compensation and Retirement Disclosure [Abstract]
 
 
Defined Benefit Plan, Contributions by Employer
$ 3 
$ 2 
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year
$ 11 
 
Other Comprehensive Income (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Other Comprehensive Income Loss [Line Items]
 
 
Total Other Comprehensive Income (Loss), Before Tax
$ 27 
$ (8)
Total Other Comprehensive Income (Loss), Tax
(4)
0 
Total Other Comprehensive Income (Loss), Net of Taxes
23 
(8)
Derivatives accounted for as cash flow hedges [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
0 
(3)
Other Comprehensive Income (Loss), Before Reclassifications, Tax
0 
1 
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
0 
(2)
Derivatives accounted for as cash flow hedges [Member] |
Cost of Sales [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Reclassification from Accumulated Other Comprehensive Income, Before Tax
3 
0 
Reclassification from Accumulated Other Comprehensive Income, Tax
(2)
0 
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
1 
0 
Investments [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
15 
(1)
Other Comprehensive Income (Loss), Before Reclassifications, Tax
(6)
0 
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
9 
(1)
Investments [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Reclassification from Accumulated Other Comprehensive Income, Before Tax
0 
6 
Reclassification from Accumulated Other Comprehensive Income, Tax
0 
(2)
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
4 
Currency translation [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
(37)
(11)
Other Comprehensive Income (Loss), Before Reclassifications, Tax
7 
0 
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
(30)
(11)
Currency translation [Member] |
Cost of Sales [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Reclassification from Accumulated Other Comprehensive Income, Before Tax
37 1
0 
Reclassification from Accumulated Other Comprehensive Income, Tax
(1)1
0 
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
36 1
0 
Postretirement benefits [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Total Other Comprehensive Income (Loss), Before Tax
9 
1 
Total Other Comprehensive Income (Loss), Tax
(2)
1 
Total Other Comprehensive Income (Loss), Net of Taxes
$ 7 
$ 2 
Segment Reporting (Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Segment Reporting Information [Line Items]
 
 
Sales
$ 10,817 
$ 8,761 
Operating Income (Loss)
509 
412 
Total Other (Income) Expense
74 
29 
Income before Income Taxes
435 
383 
Operating Segments [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
2,780 
2,656 
Operating Income (Loss)
351 
253 
Operating Segments [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
4,391 
3,734 
Operating Income (Loss)
(6)
58 
Operating Segments [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
1,540 
1,424 
Operating Income (Loss)
122 
121 
Operating Segments [Member] |
Prepared Foods [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
2,133 
907 
Operating Income (Loss)
71 
16 
Operating Segments [Member] |
International [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
305 
327 
Operating Income (Loss)
(14)
(28)
Segment Reconciling Items [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
0 
0 
Operating Income (Loss)
(15)
(8)
Intersegment Elimination [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(332)
(287)
Intersegment Elimination [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
1 
2 
Intersegment Elimination [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
78 
63 
Intersegment Elimination [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
$ 253 
$ 222 
Segment Reporting Segment Reporting (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Segments
Dec. 28, 2013
Dec. 27, 2014
Segment Reconciling Items [Member]
Dec. 28, 2013
Segment Reconciling Items [Member]
Dec. 27, 2014
Intersegment Elimination [Member]
Dec. 28, 2013
Intersegment Elimination [Member]
Dec. 27, 2014
Intersegment Elimination [Member]
Chicken [Member]
Dec. 28, 2013
Intersegment Elimination [Member]
Chicken [Member]
Dec. 27, 2014
Intersegment Elimination [Member]
Beef [Member]
Dec. 28, 2013
Intersegment Elimination [Member]
Beef [Member]
Dec. 27, 2014
Intersegment Elimination [Member]
Pork [Member]
Dec. 28, 2013
Intersegment Elimination [Member]
Pork [Member]
Sep. 27, 2014
Chicken Production Operations in Brazil and Mexico [Member]
International [Member]
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Operating Segments
5 
 
 
 
 
 
 
 
 
 
 
 
 
Disposal Group, Consideration
 
 
 
 
 
 
 
 
 
 
 
 
$ 575 
Business Combination, Acquisition Related Costs
 
 
15 
 
 
 
 
 
 
 
 
 
 
Sales
$ 10,817 
$ 8,761 
$ 0 
$ 0 
$ (332)
$ (287)
$ 1 
$ 2 
$ 78 
$ 63 
$ 253 
$ 222 
 
Commitments And Contingencies Commitments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Sep. 27, 2014
Dec. 27, 2014
Guarantee of Indebtedness of Others [Member]
Dec. 27, 2014
Residual Value Guarantees [Member]
Guarantor Obligations [Line Items]
 
 
 
 
Guarantor Obligations, Maximum Exposure, Period (in years)
 
 
10 years 
 
Maximum potential amount
 
 
$ 62 
$ 53 
Guarantor Obligations, Maximum Exposure, Remaining Lease Period (in years)
 
 
 
13 years 
Amount recoverable through various recourse provisions
 
 
 
47 
Potential maximum obligation under cash flow assistance programs
330 
 
 
 
Total receivables under cash flow assistance programs
0 
4 
 
 
Uncollectible receivables estimated under cash flow assistance programs
$ 0 
$ 0 
 
 
Commitments And Contingencies Contingencies (Details)
0 Months Ended 1 Months Ended 0 Months Ended 12 Months Ended
Dec. 27, 2014
Claims
Dec. 7, 2012
Garcia Case [Member]
USD ($)
Mar. 17, 2011
Garcia Case [Member]
USD ($)
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, Value
 
$ 3,609,723 
$ 503,011 
 
$ 5,784,758 
$ 18,774,989 
$ 5,733,943 
$ 4,960,787 
$ 76,000,000 
? 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 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income and Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
$ 10,817 
$ 8,761 
Cost of Sales
9,861 
8,076 
Gross Profit
956 
685 
Selling, General and Administrative
447 
273 
Operating Income
509 
412 
Other (Income) Expense:
 
 
Interest Income (Expense), Nonoperating, Net
75 
26 
Other, net
(1)
3 
Equity in net earnings of subsidiaries
0 
0 
Total Other (Income) Expense
74 
29 
Income (Loss) before Income Taxes
435 
383 
Income Tax Expense
125 
131 
Net Income
310 
252 
Less: Net income (loss) attributable to noncontrolling interest
1 
(2)
Net Income Attributable to Tyson
309 
254 
Comprehensive Income
333 
244 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
1 
(2)
Comprehensive Income Attributable to Tyson
332 
246 
TFI Parent [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
228 
167 
Cost of Sales
19 
17 
Gross Profit
209 
150 
Selling, General and Administrative
34 
23 
Operating Income
175 
127 
Other (Income) Expense:
 
 
Interest Income (Expense), Nonoperating, Net
69 
5 
Other, net
(1)
6 
Equity in net earnings of subsidiaries
(237)
(175)
Total Other (Income) Expense
(169)
(164)
Income (Loss) before Income Taxes
344 
291 
Income Tax Expense
35 
37 
Net Income
309 
254 
Less: Net income (loss) attributable to noncontrolling interest
0 
0 
Net Income Attributable to Tyson
309 
254 
Comprehensive Income
332 
244 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
332 
244 
TFM Parent, Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
5,809 
5,048 
Cost of Sales
5,662 
4,826 
Gross Profit
147 
222 
Selling, General and Administrative
61 
55 
Operating Income
86 
167 
Other (Income) Expense:
 
 
Interest Income (Expense), Nonoperating, Net
0 
15 
Other, net
0 
(1)
Equity in net earnings of subsidiaries
(38)
(6)
Total Other (Income) Expense
(38)
8 
Income (Loss) before Income Taxes
124 
159 
Income Tax Expense
30 
52 
Net Income
94 
107 
Less: Net income (loss) attributable to noncontrolling interest
0 
0 
Net Income Attributable to Tyson
94 
107 
Comprehensive Income
104 
102 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
104 
102 
Non-Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
5,325 
3,987 
Cost of Sales
4,722 
3,674 
Gross Profit
603 
313 
Selling, General and Administrative
355 
195 
Operating Income
248 
118 
Other (Income) Expense:
 
 
Interest Income (Expense), Nonoperating, Net
6 
6 
Other, net
0 
(2)
Equity in net earnings of subsidiaries
0 
0 
Total Other (Income) Expense
6 
4 
Income (Loss) before Income Taxes
242 
114 
Income Tax Expense
60 
42 
Net Income
182 
72 
Less: Net income (loss) attributable to noncontrolling interest
1 
(2)
Net Income Attributable to Tyson
181 
74 
Comprehensive Income
186 
63 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
1 
(2)
Comprehensive Income Attributable to Tyson
185 
65 
Eliminations [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
(545)
(441)
Cost of Sales
(542)
(441)
Gross Profit
(3)
0 
Selling, General and Administrative
(3)
0 
Operating Income
0 
0 
Other (Income) Expense:
 
 
Interest Income (Expense), Nonoperating, Net
0 
0 
Other, net
0 
0 
Equity in net earnings of subsidiaries
275 
181 
Total Other (Income) Expense
275 
181 
Income (Loss) before Income Taxes
(275)
(181)
Income Tax Expense
0 
0 
Net Income
(275)
(181)
Less: Net income (loss) attributable to noncontrolling interest
0 
0 
Net Income Attributable to Tyson
(275)
(181)
Comprehensive Income
(289)
(165)
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
$ (289)
$ (165)
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 27, 2014
Sep. 27, 2014
Dec. 28, 2013
Sep. 28, 2013
Assets
 
 
 
 
Cash and cash equivalents
$ 381 
$ 438 
$ 825 
$ 1,145 
Accounts receivable, net
1,777 
1,684 
 
 
Inventories
3,192 
3,274 
 
 
Other current assets
375 
379 
 
 
Assets held for sale
213 
446 
 
 
Total Current Assets
5,938 
6,221 
 
 
Net Property, Plant and Equipment
5,211 
5,130 
 
 
Goodwill
6,700 
6,706 
 
 
Intangible Assets, net
5,246 
5,276 
 
 
Other Assets
663 
623 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
23,758 
23,956 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
596 
643 
 
 
Accounts payable
2,147 
1,806 
 
 
Other current liabilities
1,157 
1,207 
 
 
Liabilities held for sale
54 
141 
 
 
Total Current Liabilities
3,954 
3,797 
 
 
Long-Term Debt
6,931 
7,535 
 
 
Deferred Income Taxes
2,473 
2,450 
 
 
Other Liabilities
1,263 
1,270 
 
 
Total Tyson Shareholders' Equity
9,123 
8,890 
 
 
Noncontrolling Interest
14 
14 
 
 
Total Shareholders' Equity
9,137 
8,904 
 
 
Total Liabilities and Shareholders' Equity
23,758 
23,956 
 
 
TFI Parent [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
1 
3 
 
 
Inventories
0 
0 
 
 
Other current assets
43 
42 
 
 
Assets held for sale
3 
3 
 
 
Total Current Assets
47 
48 
 
 
Net Property, Plant and Equipment
28 
30 
 
 
Goodwill
0 
0 
 
 
Intangible Assets, net
0 
0 
 
 
Other Assets
160 
204 
 
 
Investment in Subsidiaries
21,153 
20,845 
 
 
Total Assets
21,388 
21,127 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
189 
240 
 
 
Accounts payable
28 
35 
 
 
Other current liabilities
5,414 
4,718 
 
 
Liabilities held for sale
0 
0 
 
 
Total Current Liabilities
5,631 
4,993 
 
 
Long-Term Debt
6,441 
7,056 
 
 
Deferred Income Taxes
17 
21 
 
 
Other Liabilities
176 
167 
 
 
Total Tyson Shareholders' Equity
9,123 
8,890 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
9,123 
8,890 
 
 
Total Liabilities and Shareholders' Equity
21,388 
21,127 
 
 
TFM Parent, Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
12 
41 
10 
21 
Accounts receivable, net
724 
665 
 
 
Inventories
1,312 
1,272 
 
 
Other current assets
67 
78 
 
 
Assets held for sale
0 
0 
 
 
Total Current Assets
2,115 
2,056 
 
 
Net Property, Plant and Equipment
948 
932 
 
 
Goodwill
881 
881 
 
 
Intangible Assets, net
14 
15 
 
 
Other Assets
149 
148 
 
 
Investment in Subsidiaries
2,092 
2,049 
 
 
Total Assets
6,199 
6,081 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
0 
0 
 
 
Accounts payable
1,148 
755 
 
 
Other current liabilities
163 
235 
 
 
Liabilities held for sale
0 
0 
 
 
Total Current Liabilities
1,311 
990 
 
 
Long-Term Debt
2 
2 
 
 
Deferred Income Taxes
101 
96 
 
 
Other Liabilities
127 
125 
 
 
Total Tyson Shareholders' Equity
4,658 
4,868 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
4,658 
4,868 
 
 
Total Liabilities and Shareholders' Equity
6,199 
6,081 
 
 
Non-Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
369 
397 
815 
1,124 
Accounts receivable, net
1,052 
1,016 
 
 
Inventories
1,880 
2,002 
 
 
Other current assets
301 
379 
 
 
Assets held for sale
210 
443 
 
 
Total Current Assets
3,812 
4,237 
 
 
Net Property, Plant and Equipment
4,235 
4,168 
 
 
Goodwill
5,819 
5,825 
 
 
Intangible Assets, net
5,232 
5,261 
 
 
Other Assets
354 
326 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
19,452 
19,817 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
407 
403 
 
 
Accounts payable
971 
1,016 
 
 
Other current liabilities
859 
921 
 
 
Liabilities held for sale
54 
141 
 
 
Total Current Liabilities
2,291 
2,481 
 
 
Long-Term Debt
488 
532 
 
 
Deferred Income Taxes
2,355 
2,333 
 
 
Other Liabilities
960 
978 
 
 
Total Tyson Shareholders' Equity
13,344 
13,479 
 
 
Noncontrolling Interest
14 
14 
 
 
Total Shareholders' Equity
13,358 
13,493 
 
 
Total Liabilities and Shareholders' Equity
19,452 
19,817 
 
 
Eliminations [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
0 
 
 
Inventories
0 
0 
 
 
Other current assets
(36)
(120)
 
 
Assets held for sale
0 
0 
 
 
Total Current Assets
(36)
(120)
 
 
Net Property, Plant and Equipment
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangible Assets, net
0 
0 
 
 
Other Assets
0 
(55)
 
 
Investment in Subsidiaries
(23,245)
(22,894)
 
 
Total Assets
(23,281)
(23,069)
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
0 
0 
 
 
Accounts payable
0 
0 
 
 
Other current liabilities
(5,279)
(4,667)
 
 
Liabilities held for sale
0 
0 
 
 
Total Current Liabilities
(5,279)
(4,667)
 
 
Long-Term Debt
0 
(55)
 
 
Deferred Income Taxes
0 
0 
 
 
Other Liabilities
0 
0 
 
 
Total Tyson Shareholders' Equity
(18,002)
(18,347)
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
(18,002)
(18,347)
 
 
Total Liabilities and Shareholders' Equity
$ (23,281)
$ (23,069)
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 27, 2014
Dec. 28, 2013
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
Cash Provided by (Used for) Operating Activities
$ 812 
$ 361 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(231)
(140)
(Purchases of)/ Proceeds from marketable securities, net
(3)
(1)
Proceeds from sale of businesses
142 
0 
Other, net
3 
(3)
Cash Used for Investing Activities
(89)
(144)
Cash Flows From Financing Activities:
 
 
Net change in debt
(668)
(373)
Purchases of Tyson Class A common stock
(91)
(159)
Dividends
(37)
(25)
Stock options exercised
16 
12 
Other, net
5 
5 
Net change in intercompany balances
0 
0 
Cash Used for Financing Activities
(775)
(540)
Effect of Exchange Rate Changes on Cash
(5)
3 
Increase (Decrease) in Cash and Cash Equivalents
(57)
(320)
Cash and Cash Equivalents at Beginning of Year
438 
1,145 
Cash and Cash Equivalents at End of Period
381 
825 
TFI Parent [Member]
 
 
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
Cash Provided by (Used for) Operating Activities
55 
(4)
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
0 
(1)
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Proceeds from sale of businesses
0 
 
Other, net
0 
0 
Cash Used for Investing Activities
0 
(1)
Cash Flows From Financing Activities:
 
 
Net change in debt
(667)
(367)
Purchases of Tyson Class A common stock
(91)
(159)
Dividends
(37)
(25)
Stock options exercised
16 
12 
Other, net
5 
5 
Net change in intercompany balances
719 
539 
Cash Used for Financing Activities
(55)
5 
Effect of Exchange Rate Changes on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
0 
Cash and Cash Equivalents at Beginning of Year
0 
0 
Cash and Cash Equivalents at End of Period
0 
0 
TFM Parent, Guarantors [Member]
 
 
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
Cash Provided by (Used for) Operating Activities
325 
284 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(40)
(35)
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Proceeds from sale of businesses
0 
 
Other, net
0 
1 
Cash Used for Investing Activities
(40)
(34)
Cash Flows From Financing Activities:
 
 
Net change in debt
0 
0 
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Stock options exercised
0 
0 
Other, net
0 
0 
Net change in intercompany balances
(314)
(261)
Cash Used for Financing Activities
(314)
(261)
Effect of Exchange Rate Changes on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
(29)
(11)
Cash and Cash Equivalents at Beginning of Year
41 
21 
Cash and Cash Equivalents at End of Period
12 
10 
Non-Guarantors [Member]
 
 
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
Cash Provided by (Used for) Operating Activities
432 
81 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(191)
(104)
(Purchases of)/ Proceeds from marketable securities, net
(3)
(1)
Proceeds from sale of businesses
142 
 
Other, net
3 
(4)
Cash Used for Investing Activities
(49)
(109)
Cash Flows From Financing Activities:
 
 
Net change in debt
(1)
(6)
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Stock options exercised
0 
0 
Other, net
0 
0 
Net change in intercompany balances
(405)
(278)
Cash Used for Financing Activities
(406)
(284)
Effect of Exchange Rate Changes on Cash
(5)
3 
Increase (Decrease) in Cash and Cash Equivalents
(28)
(309)
Cash and Cash Equivalents at Beginning of Year
397 
1,124 
Cash and Cash Equivalents at End of Period
369 
815 
Eliminations [Member]
 
 
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
Cash Provided by (Used for) Operating Activities
0 
0 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
0 
0 
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Proceeds from sale of businesses
0 
 
Other, net
0 
0 
Cash Used for Investing Activities
0 
0 
Cash Flows From Financing Activities:
 
 
Net change in debt
0 
0 
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Stock options exercised
0 
0 
Other, net
0 
0 
Net change in intercompany balances
0 
0 
Cash Used for Financing Activities
0 
0 
Effect of Exchange Rate Changes on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
0 
Cash and Cash Equivalents at Beginning of Year
0 
0 
Cash and Cash Equivalents at End of Period
$ 0 
$ 0 
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements (Narrative) (Details) (USD $)
Dec. 27, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
 
Amount available under credit facility
$ 1,250,000,000.00