TYSON FOODS INC, 10-Q filed on 2/5/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Jan. 2, 2016
Entity Registrant Name
TYSON FOODS INC 
Entity Central Index Key
0000100493 
Current Fiscal Year End Date
--10-01 
Entity Filer Category
Large Accelerated Filer 
Document Type
10-Q 
Document Period End Date
Jan. 02, 2016 
Document Fiscal Year Focus
2016 
Document Fiscal Period Focus
Q1 
Amendment Flag
false 
Class A [Member]
 
Entity Common Stock, Shares Outstanding
293,093,548 
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
Jan. 2, 2016
Dec. 27, 2014
Sales
$ 9,152 
$ 10,817 
Cost of Sales
7,951 
9,861 
Gross Profit
1,201 
956 
Operating Expenses:
 
 
Selling, General and Administrative
425 
447 
Operating Income
776 
509 
Other (Income) Expense:
 
 
Interest income
(2)
(2)
Interest expense
67 
77 
Other, net
(1)
(1)
Total Other (Income) Expense
64 
74 
Income before Income Taxes
712 
435 
Income Tax Expense
251 
125 
Net Income
461 
310 
Less: Net income (loss) attributable to noncontrolling interest
0 
1 
Net Income Attributable to Tyson
$ 461 
$ 309 
Weighted Average Shares Outstanding:
 
 
Diluted, Shares
400 
416 
Net Income Per Share Attributable to Tyson:
 
 
Diluted (USD per share)
$ 1.15 
$ 0.74 
Class A [Member]
 
 
Weighted Average Shares Outstanding:
 
 
Basic, Shares
325 
336 
Net Income Per Share Attributable to Tyson:
 
 
Basic (USD per share)
$ 1.18 
$ 0.77 
Dividends Declared Per Share:
 
 
Dividends Declared (USD per share)
$ 0.200 
$ 0.125 
Class B [Member]
 
 
Weighted Average Shares Outstanding:
 
 
Basic, Shares
70 
70 
Net Income Per Share Attributable to Tyson:
 
 
Basic (USD per share)
$ 1.09 
$ 0.71 
Dividends Declared Per Share:
 
 
Dividends Declared (USD per share)
$ 0.180 
$ 0.113 
Consolidated Condensed Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Statement of Comprehensive Income [Abstract]
 
 
Net Income
$ 461 
$ 310 
Other Comprehensive Income (Loss), Net of Taxes:
 
 
Derivatives accounted for as cash flow hedges
0 
1 
Investments
(1)
9 
Currency translation
(5)
6 
Postretirement benefits
(2)
7 
Total Other Comprehensive Income (Loss), Net of Taxes
(8)
23 
Comprehensive Income
453 
333 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
1 
Comprehensive Income Attributable to Tyson
$ 453 
$ 332 
Consolidated Condensed Balance Sheets (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
Oct. 3, 2015
Assets
 
 
Cash and cash equivalents
$ 1,187 
$ 688 
Accounts receivable, net
1,514 
1,620 
Inventories
2,818 
2,878 
Other current assets
158 
195 
Total Current Assets
5,677 
5,381 
Net Property, Plant and Equipment
5,184 
5,176 
Goodwill
6,669 
6,667 
Intangible Assets, net
5,145 
5,168 
Other Assets
615 
612 
Total Assets
23,290 
23,004 
Liabilities and Shareholders' Equity
 
 
Current debt
717 
715 
Accounts payable
1,781 
1,662 
Other current liabilities
1,170 
1,158 
Total Current Liabilities
3,668 
3,535 
Long-Term Debt
5,988 
6,010 
Deferred Income Taxes
2,514 
2,449 
Other Liabilities
1,343 
1,304 
Commitments and Contingencies (Note 16)
   
   
Shareholders' Equity:
 
 
Capital in excess of par value
4,293 
4,307 
Retained earnings
7,203 
6,813 
Accumulated other comprehensive loss
(98)
(90)
Treasury stock, at cost - 53 million shares at January 2, 2016 and 47 million shares at October 3, 2015
(1,678)
(1,381)
Total Tyson Shareholders' Equity
9,762 
9,691 
Noncontrolling Interest
15 
15 
Total Shareholders' Equity
9,777 
9,706 
Total Liabilities and Shareholders' Equity
23,290 
23,004 
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
Jan. 2, 2016
Oct. 3, 2015
Treasury Stock, shares
53 
47 
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
Jan. 2, 2016
Dec. 27, 2014
Cash Flows From Operating Activities:
 
 
Net Income
$ 461 
$ 310 
Depreciation and amortization
172 
175 
Deferred income taxes
69 
11 
Other, net
(1)
6 
Net changes in operating assets and liabilities
394 
310 
Cash Provided by Operating Activities
1,095 
812 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(188)
(231)
Purchases of marketable securities
(12)
(10)
Proceeds from sale of marketable securities
10 
7 
Proceeds from sale of businesses
0 
142 
Other, net
(1)
3 
Cash Provided by (Used for) Investing Activities
(191)
(89)
Cash Flows From Financing Activities:
 
 
Payments on debt
(20)
(668)
Purchases of Tyson Class A common stock
(387)
(91)
Dividends
(54)
(37)
Stock options exercised
34 
16 
Other, net
23 
5 
Cash Provided by (Used for) Financing Activities
(404)
(775)
Effect of Exchange Rate Changes on Cash
(1)
(5)
Increase (Decrease) in Cash and Cash Equivalents
499 
(57)
Cash and Cash Equivalents at Beginning of Year
688 
438 
Cash and Cash Equivalents at End of Period
$ 1,187 
$ 381 
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 October 3, 2015. 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 January 2, 2016, and the results of operations for the three months ended January 2, 2016, and December 27, 2014. 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 January 2016, the Financial Accounting Standards Board ("FASB") issued guidance that requires most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements on the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In November 2015, the FASB issued guidance to simplify the presentation of deferred income taxes. The new guidance requires that deferred tax liabilities and assets be classified as non-current in the balance sheet. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018, and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In July 2015, the FASB issued guidance which requires management to evaluate inventory at the lower of cost and net realizable value. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018. Early adoption is permitted and the prospective transition method should be applied. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In April 2015, the FASB issued guidance on the recognition of fees paid by a customer for cloud computing arrangements. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the software license consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In April 2015, the FASB issued guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. This new guidance is not expected to have a material impact on our consolidated financial statements.
In February 2015, the FASB issued guidance changing the analysis procedures that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods, beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In May 2014, the FASB issued guidance changing the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
Dispositions
Dispositions
DISPOSITIONS
In fiscal 2015, we sold the Brazil and Mexico chicken production operations, which were included in Other within our segment reporting, to JBS SA ("JBS") for a combined $575 million in cash, which was subject to certain adjustments. We completed the sale of the Brazil operation in the first quarter of fiscal 2015 and received net proceeds of $148 million including working capital, net debt adjustments and cash transferred. The sale did not result in a significant gain or loss as the carrying value of the Brazil operation approximated the sales proceeds at the time of sale.
We completed the sale of the Mexico operation in the fourth quarter of fiscal 2015 and received net proceeds of approximately $374 million including working capital, net debt adjustments and cash transferred. As a result of the sale, we recorded a pre-tax gain of
$161 million, in the fourth quarter of fiscal 2015, which was reflected in Cost of Sales in our Consolidated Condensed Statements of Income.
To better align our overall production capacity with current cattle supplies, we ceased beef operations at our Denison, Iowa plant in fiscal 2015. As a result, we recorded $12 million in closure and impairment charges during the fourth quarter of fiscal 2015. These charges impacted the Beef segment’s operating income and were reflected in Cost of Sales in our Consolidated Condensed Statements of Income.
In the fourth quarter of fiscal 2015, we recorded a $59 million impairment and other related charges associated with a Prepared Foods project designed to optimize the combined Tyson and Hillshire Brands network capacity and to enhance manufacturing efficiencies for the future. As a result of this project, we expect to close our Chicago, Illinois hospitality plant and our Jefferson, Wisconsin plant in the back half of fiscal 2016. These charges were reflected in the Prepared Foods segment’s operating income in the fourth quarter of fiscal 2015, of which $49 million was included in the Consolidated Condensed Statements of Income in Cost of Sales and $10 million was included in the Consolidated Condensed Statements of Income in Selling, General and Administrative.
Additionally, in the third quarter of fiscal 2015, as part of our ongoing efforts to increase efficiencies in our Chicken business, we closed our Buena Vista, Georgia plant. The closure costs did not have a significant impact on the Company's operating 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 January 2, 2016, 61% of the cost of inventories was determined by the first-in, first-out ("FIFO") method as compared to 63% at October 3, 2015. 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):
 
January 2, 2016
 
October 3, 2015
Processed products
$
1,501

 
$
1,631

Livestock
905

 
831

Supplies and other
412

 
416

Total inventory
$
2,818

 
$
2,878

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): 

January 2, 2016
 
October 3, 2015
Land
$
125

 
$
122

Buildings and leasehold improvements
3,599

 
3,581

Machinery and equipment
6,575

 
6,452

Land improvements and other
287

 
286

Buildings and equipment under construction
355

 
375

 
10,941

 
10,816

Less accumulated depreciation
5,757

 
5,640

Net property, plant and equipment
$
5,184

 
$
5,176

Other Current Liabilities
Other Current Liabilities
OTHER CURRENT LIABILITIES
Other current liabilities are as follows (in millions):
 
January 2, 2016
 
October 3, 2015
Accrued salaries, wages and benefits
$
354

 
$
478

Accrued marketing, advertising and promotion expense
204

 
192

Other
612

 
488

Total other current liabilities
$
1,170

 
$
1,158

Debt
Debt
DEBT
The major components of debt are as follows (in millions):
 
January 2, 2016
 
October 3, 2015
Revolving credit facility
$
—

 
$
—

Senior notes:
 
 
 
6.60% Senior notes due April 2016
638

 
638

7.00% Notes due May 2018
120

 
120

2.65% Notes due August 2019
1,000

 
1,000

4.10% Notes due September 2020
285

 
285

4.50% Senior notes due June 2022
1,000

 
1,000

3.95% Notes due August 2024
1,250

 
1,250

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032
163

 
163

4.88% Notes due August 2034
500

 
500

5.15% Notes due August 2044
500

 
500

Discount on senior notes
(9
)
 
(10
)
Term loans:
 
 
 
3-year tranche B (1.44% at 1/2/2016)
500

 
500

5-year tranche B (1.88% at 1/2/2016)
552

 
552

Amortizing notes - tangible equity units (see Note 7: Equity)
123

 
140

Other
65

 
69

Total debt
6,705

 
6,725

Less current debt
717

 
715

Total long-term debt
$
5,988

 
$
6,010


Revolving Credit Facility
We have a $1.25 billion revolving credit facility that supports short-term funding needs and letters of credit. The facility will mature and the commitments thereunder will terminate in September 2019. After reducing for the amount borrowed and outstanding letters of credit issued under this facility, the amount available for borrowing at January 2, 2016, was $1,244 million. At January 2, 2016, we had outstanding letters of credit issued under this facility totaling $6 million, none of which were drawn upon. We had an additional $93 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of leasing obligations and workers’ compensation insurance programs.
The revolving credit facility is unsecured and is fully guaranteed by Tyson Fresh Meats, Inc. (TFM Parent), our wholly owned subsidiary, until such date TFM Parent is released from all of its guarantees of other material indebtedness. If in the future any of our other subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall also be required to guarantee the indebtedness, obligations and liabilities under this facility.
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 January 2, 2016.
Equity (Notes)
Equity
EQUITY
Share Repurchases
As of January 2, 2016, 13.5 million shares remained available for repurchases under our share repurchase program. On February 4, 2016, our Board of Directors approved an increase of 50 million shares authorized for repurchase under our share repurchase program. The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, 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 share repurchases of our Class A stock is as follows (in millions):
 
 
Three Months Ended
 
 
January 2, 2016
 
December 27, 2014
 
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
Under share repurchase program
 
7.6

 
$
357

 
2.0

 
$
81

To fund certain obligations under equity compensation plans
 
0.7

 
30

 
0.2

 
10

Total share repurchases
 
8.3

 
$
387

 
2.2

 
$
91


Subsequent to January 2, 2016, through February 4, 2016, we repurchased $221 million, or approximately 4.3 million shares, of our common stock under our share repurchase program.
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. 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, we will pay equal quarterly cash installments of $0.59 per amortizing note, which cash payment in the aggregate (principal and interest) is equivalent to 4.75% per year with respect to the $50 stated amount per TEU. Each installment constitutes a payment of interest and partial repayment of principal. Unless settled earlier at the holder's or the Company's option, each purchase contract will automatically settle on July 15, 2017, subject to postponement in certain limited circumstances. We will deliver between a minimum of 31.9 million shares and a maximum of 39.8 million shares of our Class A stock, subject to adjustment, based upon the Applicable Market Value (as defined below) of our Class A stock as described below:
•
If the Applicable Market Value is equal to or greater than the conversion price of $47.06 per share, we will deliver 1.0624 shares of Class A stock per purchase contract, or a minimum of 31.9 million Class A shares.
•
If the Applicable Market Value is greater than the reference price of $37.65 but less than the conversion price of $47.06 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 $37.65 per share, we will deliver 1.3282 shares of Class A stock per purchase contract, or a maximum of 39.8 million Class A shares.
The "Applicable Market Value" means the average of the closing prices of our Class A stock on each of the 20 consecutive trading days beginning on, and including, the 23rd scheduled trading day immediately preceding July 15, 2017.
On December 15, 2015, we paid our quarterly dividend to shareholders of record at December 1, 2015, equal to $0.15 per share on our Class A stock. The amount of the distribution exceeded the $0.075 per share dividend threshold amount. Consequently, the settlement rates, reference price and conversion price were adjusted and are reflected above.
The TEUs have a dilutive effect on our earnings per share. The 31.9 million minimum shares to be issued are included in the calculation of Class A Basic weighted average shares. The approximate 8 million share difference between the minimum shares and the 39.8 million maximum shares are potentially dilutive securities, and accordingly, are included in our diluted earnings per share on a pro rata basis to the extent the Applicable Market Value is higher than the reference price but is less than the conversion price at period end.
Income Taxes
Income Taxes
INCOME TAXES
The effective tax rate was 35.2% and 28.8% for the first quarter of fiscal 2016 and 2015, respectively. The effective tax rates for the first quarter of fiscal 2016 and fiscal 2015 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, the first quarter of fiscal 2015 was impacted by changes in tax reserves resulting from the expiration of statutes of limitations, which reduced the effective tax rate by 6.5%.
Unrecognized tax benefits were $304 million and $306 million at January 2, 2016, and October 3, 2015, respectively.
We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease by as much as $15 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 2016, we recorded $2 million of equity earnings in joint ventures and $1 million in net foreign currency exchange losses, which were recorded in the Consolidated Condensed Statements of Income in Other, net.
During the first quarter of fiscal 2015, we recorded $1 million of equity earnings in joint ventures, 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
 
January 2, 2016
 
December 27, 2014
Numerator:
 
 
 
Net income
$
461

 
$
310

Less: Net income attributable to noncontrolling interests
—

 
1

Net income attributable to Tyson
461

 
309

Less dividends declared:
 
 
 
Class A
58

 
38

Class B
13

 
8

Undistributed earnings
$
390

 
$
263

 
 
 
 
Class A undistributed earnings
$
327

 
$
221

Class B undistributed earnings
63

 
42

Total undistributed earnings
$
390

 
$
263

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Class A weighted average shares
325

 
336

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, restricted stock and performance units
5

 
5

Tangible equity units
—

 
5

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
400

 
416

 
 
 
 
Net income per share attributable to Tyson:
 
 
 
Class A basic
$
1.18

 
$
0.77

Class B basic
$
1.09

 
$
0.71

Diluted
$
1.15

 
$
0.74


Approximately 2 million and 6 million of our stock-based compensation shares were antidilutive for the three months ended January 2, 2016, and December 27, 2014, 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 to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Our risk management programs are periodically reviewed by our Board of Directors' Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using value-at-risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit-worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at January 2, 2016.
We had the following aggregated outstanding notional amounts related to our derivative financial instruments (in millions, except soy meal tons):
 
Metric
 
January 2, 2016
 
October 3, 2015
Commodity:
 
 
 
 
 
Corn
Bushels
 
37

 
18

Soy meal
Tons
 
392,300

 
284,900

Live cattle
Pounds
 
106

 
102

Lean hogs
Pounds
 
87

 
166

Foreign currency
United States dollar
 
$
27

 
$
42

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. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged (i.e., cash flow hedge or fair value hedge). We designate certain forward contracts as follows:
•
Cash Flow Hedges – include certain commodity forward and option contracts of forecasted purchases (i.e., grains) and certain foreign exchange forward contracts.
•
Fair Value Hedges – include certain commodity forward contracts of firm commitments (i.e., livestock).
Cash Flow Hedges
Derivative instruments are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant for the three months ended January 2, 2016, and December 27, 2014. As of January 2, 2016, the net amounts expected to be reclassified into earnings within the next 12 months are pretax losses of $2 million. During the three months ended January 2, 2016, and December 27, 2014, we did not reclassify significant pretax gains/losses into earnings as a result of the discontinuance of cash flow hedges.
The following table sets forth the pretax impact of cash flow hedge derivative instruments 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
 
January 2, 2016
 
December 27, 2014
 
 
 
January 2, 2016
 
December 27, 2014
Cash flow hedge – derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(2
)
 
$
—

 
Cost of sales
 
$
(1
)
 
$
(3
)
Foreign exchange contracts
—

 
—

 
Other income/expense
 
—

 
—

Total
$
(2
)
 
$
—

 
 
 
$
(1
)
 
$
(3
)

Fair Value Hedges
We designate certain derivative contracts as fair value hedges of firm commitments to purchase livestock for slaughter. Our objective of these hedges is to minimize the risk of changes in fair value created by fluctuations in commodity prices associated with fixed price livestock firm commitments. For these derivative instruments we designate and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in earnings in the same period. We include the gain or loss on the hedged items (i.e., livestock purchase firm commitments) in the same line item, Cost of Sales, as the offsetting gain or loss on the related livestock forward position.
 
 
 
in millions
 
 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
 
January 2, 2016
 
December 27, 2014
Gain (Loss) on forwards
Cost of sales
 
$
33

 
$
(40
)
Gain (Loss) on purchase contract
Cost of sales
 
(33
)
 
40


Ineffectiveness related to our fair value hedges was not significant for the three months ended January 2, 2016, and December 27, 2014.
Undesignated Positions
In addition to our designated positions, we also hold derivative contracts for which we do not apply hedge accounting. These include certain derivative instruments related to commodities price risk, including grains, livestock, energy and foreign currency risk. We mark these positions to fair value through earnings at each reporting date.
The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Condensed Statements of Income (in millions):
 
Consolidated Condensed
Statements of Income
Classification
 
Gain (Loss)
Recognized in Earnings
 
 
 
 
Three Months Ended
 
 
 
January 2, 2016
 
December 27, 2014
Derivatives not designated as hedging instruments:
 
 
 
 
 
Commodity contracts
Sales
 
$
9

 
$
(1
)
Commodity contracts
Cost of sales
 
(15
)
 
(26
)
Foreign exchange contracts
Other income/expense
 
—

 
(2
)
Total
 
 
$
(6
)
 
$
(29
)

The fair value of all outstanding derivative instruments in the Consolidated Condensed Balance Sheets are included in Note 12: Fair Value Measurements.
Fair Value Measurements
Fair Value Measurements
FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:
Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date.
Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
•
Quoted prices for similar assets or liabilities in active markets;
•
Quoted prices for identical or similar assets in non-active markets;
•
Inputs other than quoted prices that are observable for the asset or liability; and
•
Inputs derived principally from or corroborated by other observable market data.
Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
January 2, 2016
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
21

 
$
—

 
$
(5
)
 
$
16

Undesignated
—

 
19

 
—

 
(13
)
 
6

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Non-current
—

 
36

 
58

 
—

 
94

Deferred compensation assets
8

 
226

 
—

 
—

 
234

Total assets
$
8

 
$
303

 
$
59

 
$
(18
)
 
$
352

Liabilities:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
9

 
$
—

 
$
(9
)
 
$
—

Undesignated
—

 
43

 
—

 
(38
)
 
5

Total liabilities
$
—

 
$
52

 
$
—

 
$
(47
)
 
$
5

October 3, 2015
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
52

 
$
—

 
$
(35
)
 
$
17

Undesignated
—

 
9

 
—

 
(9
)
 
—

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Non-current
—

 
33

 
60

 
—

 
93

Deferred compensation assets
9

 
222

 
—

 
—

 
231

Total assets
$
9

 
$
317

 
$
61

 
$
(44
)
 
$
343

Liabilities:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
2

 
$
—

 
$
(2
)
 
$
—

Undesignated
—

 
49

 
—

 
(47
)
 
2

Total liabilities
$
—

 
$
51

 
$
—

 
$
(49
)
 
$
2


(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 January 2, 2016, and October 3, 2015, we had posted with various counterparties $29 million and $5 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
 
January 2, 2016
 
December 27, 2014
Balance at beginning of year
$
61

 
$
67

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
4

 
4

Issuances
—

 
—

Settlements
(6
)
 
(6
)
Balance at end of period
$
59

 
$
65

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 derivative financial instruments primarily include exchange-traded and over-the-counter contracts which are further described in Note 11: Derivative Financial Instruments. We record our derivative financial instruments at fair value using quoted market prices adjusted for credit and non-performance risk and internal models that use as their basis readily observable market inputs including current and forward market prices. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges or observable market transactions.
Available-for-Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. Short-term investments with maturities of less than 12 months are included in Other current assets in the Consolidated 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):
 
January 2, 2016
 
October 3, 2015
 
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
$
37

 
$
37

 
$
—

 
$
33

 
$
34

 
$
1

Corporate and asset-backed
58

 
59

 
1

 
60

 
61

 
1

 
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 January 2, 2016, and December 27, 2014. No other than temporary losses were deferred in OCI as of January 2, 2016, and October 3, 2015.
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 January 2, 2016, and December 27, 2014.
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):
 
January 2, 2016
 
October 3, 2015
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total debt
$
6,851

 
$
6,705

 
$
6,900

 
$
6,725

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 January 2, 2016, and December 27, 2014, are as follows (in millions):
 
Pension Plans
 
Three Months Ended
 
January 2, 2016
 
December 27, 2014
 
 
 
 
Service cost
$
4

 
$
4

Interest cost
20

 
21

Expected return on plan assets
(17
)
 
(25
)
Amortization of:
 
 
 
   Net actuarial loss
1

 
1

Settlement (gain) loss (a)
(12
)
 
8

Net periodic cost (credit)
$
(4
)
 
$
9

 
Postretirement Benefit Plans
 
Three Months Ended
 
January 2, 2016
 
December 27, 2014
 
 
 
 
Service cost
$
—

 
$
1

Interest cost
1

 
2

Amortization of:
 
 
 
   Prior service credit
(4
)
 
—

Net periodic cost (credit)
$
(3
)
 
$
3


(a) We made lump-sum settlement payments using plan assets, of $265 million and $18 million during the first quarter of fiscal 2016 and 2015, respectively, to certain deferred vested participants within our qualified pension plans.
We contributed $32 million and $3 million to our pension plans for the three months ended January 2, 2016, and December 27, 2014, respectively. We expect to contribute an additional $31 million during the remainder of fiscal 2016. 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 2016 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
 
January 2, 2016
 
December 27, 2014
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
(Gain) loss reclassified to cost of sales
$
1

$
—

$
1

 
$
3

$
(2
)
$
1

Unrealized gain (loss)
(2
)
1

(1
)
 
—

—

—

 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
(Gain) loss reclassified to other income/expense
—

—

—

 
—

—

—

Unrealized gain (loss)
(1
)
—

(1
)
 
15

(6
)
9

 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
Translation loss reclassified to cost of sales (a)
—

—

—

 
37

(1
)
36

Translation adjustment
(5
)
—

(5
)
 
(37
)
7

(30
)
 
 
 
 
 
 
 
 
Postretirement benefits
(3
)
1

(2
)
 
9

(2
)
7

Total other comprehensive income (loss)
$
(10
)
$
2

$
(8
)
 
$
27

$
(4
)
$
23

(a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 2: Dispositions.
Segment Reporting
Segment Reporting
SEGMENT REPORTING
We operate in four segments: Chicken, Beef, Pork, and Prepared Foods. We measure segment profit as operating income (loss).
Following the sale of our Mexico and Brazil chicken production operations in fiscal 2015 (see Note 2: Dispositions), we began reporting our international operation, which was previously reported as the International segment, in Other. Other now includes our foreign chicken production operations in China and India and third-party merger and integration costs. All periods presented have been reclassified to reflect this change. Chicken, Beef, Pork and Prepared Foods results were not impacted by this change.
Chicken: Chicken includes our domestic operations related to raising and processing live chickens into fresh, frozen and value-added chicken products, as well as sales from allied products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary.
Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain.
Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. This segment includes brands such as Jimmy Dean®, Ball Park®, Hillshire Farm®, State Fair®, Van's®, Sara Lee® and Chef Pierre® pies, as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island® premium jerky. Products primarily include pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, flour and corn tortilla products, desserts, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets.
We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs which are included in Other.
Information on segments and a reconciliation to income before income taxes are as follows (in millions): 
 
Three Months Ended
 
 
January 2, 2016
 
December 27, 2014
 
Sales:
 
 
 
 
Chicken
$
2,636

 
$
2,780

 
Beef
3,614

 
4,391

 
Pork
1,213

 
1,540

 
Prepared Foods
1,896

 
2,133

 
Other
99

 
305

 
Intersegment sales
(306
)
 
(332
)
 
Total sales
$
9,152

 
$
10,817

 
 
 
 
 
 
Operating income (loss):
 
 
 
 
Chicken
$
358

 
$
351

 
Beef
71

 
(6
)
 
Pork
158

 
122

 
Prepared Foods
207

 
71

(a) 
Other
(18
)
(b) 
(29
)
(b) 
Total operating income
776

 
509

 
 
 
 
 
 
Total other (income) expense
64


74

 
 
 
 
 
 
Income before income taxes
$
712

 
$
435

 

(a) Includes merger and integration costs of $4 million and costs related to a legacy Hillshire Brands plant fire of $36 million for the three months ended December 27, 2014.
(b) Operating income in Other includes third-party merger and integration costs of $5 million and $15 million for the three months ended January 2, 2016, and December 27, 2014, respectively.
The Chicken segment had sales of $3 million and $1 million in the first quarter of fiscal 2016 and 2015, respectively, from transactions with other operating segments of the Company. The Beef segment had sales of $72 million and $78 million in the first quarter of fiscal 2016 and 2015, respectively, from transactions with other operating segments of the Company. The Pork segment had sales of $231 million and $253 million in the first quarter of fiscal 2016 and 2015, 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, debt and grower loans, which are substantially collateralized by the underlying assets. Terms of the underlying debt cover periods up to 10 years, and the maximum potential amount of future payments as of January 2, 2016, was $40 million. We also maintain operating leases for various types of equipment, some of which contain residual value guarantees for the market value of the underlying leased assets at the end of the term of the lease. The remaining terms of the lease maturities cover periods over the next 12 years. The maximum potential amount of the residual value guarantees is $95 million, of which $88 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 January 2, 2016, and October 3, 2015, 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 January 2, 2016, was approximately $310 million. The total receivables under these programs were $3 million at January 2, 2016. There were no receivables under these programs at October 3, 2015. 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 January 2, 2016, and October 3, 2015.
When constructing new facilities or making major enhancements to existing facilities, we will occasionally enter into incentive agreements with local government agencies in order to reduce certain state and local tax expenditures. Under these agreements, we transfer the related assets to various local government entities and receive Industrial Revenue Bonds. We immediately lease the facilities from the local government entities and have an option to re-purchase the facilities for a nominal amount upon tendering the Industrial Revenue Bonds to the local government entities at various predetermined dates. The Industrial Revenue Bonds and the associated obligations for the leases of the facilities offset, and the underlying assets remain in property, plant and equipment. At January 2, 2016, total amounts under these type of arrangements totaled $574 million.
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.
Below are the details of five lawsuits involving our beef, pork and prepared foods plants in which certain present and past employees allege that we failed to compensate them for the time it takes to engage in pre- and post-shift activities, such as changing into and out of protective and sanitary clothing and walking to and from the changing area, work areas and break areas in violation of the Fair Labor Standards Act and various state laws. The plaintiffs seek back wages, liquidated damages, pre- and post-judgment interest, attorneys’ fees and costs. Each case is proceeding in its jurisdiction.
•
Bouaphakeo (f/k/a Sharp), et al. v. Tyson Foods, Inc., N.D. Iowa, February 6, 2007 - A jury trial was held involving our Storm Lake, Iowa pork plant which resulted in a jury verdict in favor of the plaintiffs for violations of federal and state laws for pre- and post-shift work activities. The trial court also awarded the plaintiffs liquidated damages, resulting in total damages awarded in the amount of $5,784,758. The plaintiffs' counsel has also filed an application for attorneys' fees and expenses in the amount of $2,692,145. We appealed the jury's verdict and trial court's award to the Eighth Circuit Court of Appeals. The appellate court affirmed the jury verdict and judgment on August 25, 2014, and we filed a petition for rehearing on September 22, 2014, which was denied. We filed a petition for a writ of certiorari with the United States Supreme Court, which was granted on June 8, 2015. Oral arguments before the Supreme Court occurred on November 10, 2015.
•
Edwards, et al. v. Tyson Foods, Inc. d.b.a. Tyson Fresh Meats, Inc., S.D. Iowa, March 20, 2008 - The trial court in this case, which involves our Perry and Waterloo, Iowa pork plants, decertified the state law class and granted other pre-trial motions that resulted in judgment in our favor with respect to the plaintiffs’ claims. The plaintiffs have filed a motion to modify this judgment.
•
Murray, et al. v. Tyson Foods, Inc., C.D. Illinois, January 2, 2008; and DeVoss v. Tyson Foods, Inc. d.b.a. Tyson Fresh Meats, C.D. Illinois, March 2, 2011 - these cases involve our Joslin, Illinois beef plant and are in their preliminary stages.
•
Dozier, Southerland, et al. v. The Hillshire Brands Company, E.D. North Carolina, September 2, 2014 - This case involves our Tarboro, North Carolina prepared foods plant and is in its preliminary stages.
•
Awad, et al. v. Tyson Foods, Inc. and Tyson Fresh Meats, Inc., M.D. Tennessee, February 12, 2015 - This case involves our Goodlettsville, Tennessee case ready beef plant and is in its preliminary stages.
Our subsidiary, The Hillshire Brands Company (formerly named Sara Lee Corporation), is a party to a consolidation of cases filed by individual complainants with the Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission (NLRC) from 1998 through July 1999. The complaint is filed against Aris Philippines, Inc., Sara Lee Corporation, Sara Lee Philippines, Inc., Fashion Accessories Philippines, Inc., and Attorney Cesar C. Cruz (collectively, the “respondents”). The complaint alleges, among other things, that the respondents engaged in unfair labor practices in connection with the termination of manufacturing operations in the Philippines by Aris Philippines, Inc., a former subsidiary of The Hillshire Brands Company. In 2006, an arbitrator ruled against the respondents and awarded the complainants PHP3,453,664,710 (approximately US$74 million) in damages and fees. The respondents appealed the arbitrator’s ruling, and it was subsequently set aside by the NLRC in December 2006. Subsequent to the NLRC’s decision, the parties filed numerous appeals, motions for reconsideration and petitions for review, certain of which remained outstanding for several years. While various of those appeals, motions and/or petitions were pending, The Hillshire Brands Company, on June 23, 2014, without admitting liability, filed a settlement motion requesting that the Supreme Court of the Philippines order dismissal with prejudice of all claims against it and its predecessors-in-interest in exchange for payments allocated by the court among the complainants in an amount not to exceed PHP342,287,800 (approximately US$7 million). Based in part on its finding that the consideration to be paid to the complainants as part of such settlement was insufficient, the Supreme Court of the Philippines denied the respondents’ motion for reconsideration and the settlement motion. The Supreme Court of the Philippines also set aside as premature the NLRC’s December 2006 ruling, and the cases are now back before the NLRC, which will once again rule on the respondents’ appeals regarding the arbitrator’s 2006 ruling in favor of the complainants. In the meantime, the respondents believe they have reached a settlement in principle with a group comprising approximately 23% of the class of 5,984 complainants, pursuant to which The Hillshire Brands Company would pay each settling complainant PHP68,000 (approximately US$1,448). The respondents are in the process of seeking NLRC approval of such settlement.
Condensed Consolidating Financial Statements
Condensed Consolidating Financial Statements
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
TFM Parent, our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. Additionally, TFM Parent has fully and unconditionally guaranteed the 2022 Notes until such date TFM Parent has been released of its guarantee of both (i) Tyson's $1.25 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2019, 2022, 2024, 2034 and 2044 Notes is permanently released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc. (TFI Parent); TFM Parent; the Non-Guarantor Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor.
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended January 2, 2016
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
221

 
$
4,833

 
$
4,653

 
$
(555
)
 
$
9,152

Cost of Sales
8

 
4,536

 
3,960

 
(553
)
 
7,951

Gross Profit
213

 
297

 
693

 
(2
)
 
1,201

Selling, General and Administrative
25

 
66

 
336

 
(2
)
 
425

Operating Income
188

 
231

 
357

 
—

 
776

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
61

 
—

 
4

 
—

 
65

Other, net
—

 
(1
)
 
—

 
—

 
(1
)
Equity in net earnings of subsidiaries
(383
)
 
(33
)
 
—

 
416

 
—

Total Other (Income) Expense
(322
)
 
(34
)
 
4

 
416

 
64

Income (Loss) before Income Taxes
510

 
265

 
353

 
(416
)
 
712

Income Tax (Benefit) Expense
49

 
83

 
119

 
—

 
251

Net Income
461

 
182

 
234

 
(416
)
 
461

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

 
—

 
—

 
—

 
—

Net Income Attributable to Tyson
$
461

 
$
182

 
$
234

 
$
(416
)
 
$
461

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
453

 
177

 
223

 
(400
)
 
453

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

 
—

 
—

 
—

 
—

Comprehensive Income (Loss) Attributable to Tyson
$
453

 
$
177

 
$
223

 
$
(400
)
 
$
453

 
 
 
 
 
 
 
 
 
 
 
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 Balance Sheet as of January 2, 2016
 
in millions

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

 
$
15

 
$
1,172

 
$
—

 
$
1,187

Accounts receivable, net
—

 
514

 
1,000

 
—

 
1,514

Inventories
—

 
953

 
1,865

 
—

 
2,818

Other current assets
16

 
66

 
131

 
(55
)
 
158

Total Current Assets
16

 
1,548

 
4,168

 
(55
)
 
5,677

Net Property, Plant and Equipment
25

 
978

 
4,181

 
—

 
5,184

Goodwill
—

 
881

 
5,788

 
—

 
6,669

Intangible Assets, net
—

 
9

 
5,136

 
—

 
5,145

Other Assets
118

 
132

 
365

 
—

 
615

Investment in Subsidiaries
22,213

 
2,205

 
—

 
(24,418
)
 
—

Total Assets
$
22,372

 
$
5,753

 
$
19,638

 
$
(24,473
)
 
$
23,290

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
707

 
$
1

 
$
17

 
$
(8
)
 
$
717

Accounts payable
20

 
919

 
842

 
—

 
1,781

Other current liabilities
6,187

 
200

 
832

 
(6,049
)
 
1,170

Total Current Liabilities
6,914

 
1,120

 
1,691

 
(6,057
)
 
3,668

Long-Term Debt
5,484

 
1

 
503

 
—

 
5,988

Deferred Income Taxes
14

 
106

 
2,394

 
—

 
2,514

Other Liabilities
198

 
123

 
1,022

 
—

 
1,343

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,762

 
4,403

 
14,013

 
(18,416
)
 
9,762

Noncontrolling Interest
—

 
—

 
15

 
—

 
15

Total Shareholders’ Equity
9,762

 
4,403

 
14,028

 
(18,416
)
 
9,777

Total Liabilities and Shareholders’ Equity
$
22,372

 
$
5,753

 
$
19,638

 
$
(24,473
)
 
$
23,290


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

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

 
$
12

 
$
676

 
$
—

 
$
688

Accounts receivable, net
—

 
578

 
1,042

 
—

 
1,620

Inventories
1

 
1,009

 
1,868

 
—

 
2,878

Other current assets
43

 
91

 
147

 
(86
)
 
195

Total Current Assets
44

 
1,690

 
3,733

 
(86
)
 
5,381

Net Property, Plant and Equipment
26

 
975

 
4,175

 
—

 
5,176

Goodwill
—

 
881

 
5,786

 
—

 
6,667

Intangible Assets, net
—

 
10

 
5,158

 
—

 
5,168

Other Assets
129

 
146

 
337

 
—

 
612

Investment in Subsidiaries
21,850

 
2,177

 
—

 
(24,027
)
 
—

Total Assets
$
22,049

 
$
5,879

 
$
19,189

 
$
(24,113
)
 
$
23,004

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

 
$
1

 
$
22

 
$
(18
)
 
$
715

Accounts payable
28

 
698

 
936

 
—

 
1,662

Other current liabilities
5,930

 
152

 
939

 
(5,863
)
 
1,158

Total Current Liabilities
6,668

 
851

 
1,897

 
(5,881
)
 
3,535

Long-Term Debt
5,498

 
1

 
511

 
—

 
6,010

Deferred Income Taxes
—

 
98

 
2,351

 
—

 
2,449

Other Liabilities
192

 
118

 
994

 
—

 
1,304

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,691

 
4,811

 
13,421

 
(18,232
)
 
9,691

Noncontrolling Interest
—

 
—

 
15

 
—

 
15

Total Shareholders’ Equity
9,691

 
4,811

 
13,436

 
(18,232
)
 
9,706

Total Liabilities and Shareholders’ Equity
$
22,049

 
$
5,879

 
$
19,189

 
$
(24,113
)
 
$
23,004


Condensed Consolidating Statement of Cash Flows for the three months ended January 2, 2016
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
174

 
$
622

 
$
299

 
$
—

 
$
1,095

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

 
(33
)
 
(155
)
 
—

 
(188
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
(2
)
 
—

 
(2
)
Proceeds from sale of businesses
—

 
—

 
—

 
—

 
—

Other, net
—

 
—

 
(1
)
 
—

 
(1
)
Cash Provided by (Used for) Investing Activities
—

 
(33
)
 
(158
)
 
—

 
(191
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(19
)
 
—

 
(1
)
 
—

 
(20
)
Purchases of Tyson Class A common stock
(387
)
 
—

 
—

 
—

 
(387
)
Dividends
(54
)
 
—

 
—

 
—

 
(54
)
Stock options exercised
34

 
—

 
—

 
—

 
34

Other, net
23

 
—

 
—

 
—

 
23

Net change in intercompany balances
229

 
(586
)
 
357

 
—

 
—

Cash Provided by (Used for) Financing Activities
(174
)
 
(586
)
 
356

 
—

 
(404
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(1
)
 
—

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

 
3

 
496

 
—

 
499

Cash and Cash Equivalents at Beginning of Year
—

 
12

 
676

 
—

 
688

Cash and Cash Equivalents at End of Period
$
—

 
$
15

 
$
1,172

 
$
—

 
$
1,187

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

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 October 3, 2015. 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 January 2, 2016, and the results of operations for the three months ended January 2, 2016, and December 27, 2014. 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 January 2016, the Financial Accounting Standards Board ("FASB") issued guidance that requires most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements on the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In November 2015, the FASB issued guidance to simplify the presentation of deferred income taxes. The new guidance requires that deferred tax liabilities and assets be classified as non-current in the balance sheet. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018, and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In July 2015, the FASB issued guidance which requires management to evaluate inventory at the lower of cost and net realizable value. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018. Early adoption is permitted and the prospective transition method should be applied. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In April 2015, the FASB issued guidance on the recognition of fees paid by a customer for cloud computing arrangements. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the software license consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In April 2015, the FASB issued guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. This new guidance is not expected to have a material impact on our consolidated financial statements.
In February 2015, the FASB issued guidance changing the analysis procedures that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods, beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
In May 2014, the FASB issued guidance changing the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
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.
Inventories (Tables)
Schedule of Inventory
The following table reflects the major components of inventory (in millions):
 
January 2, 2016
 
October 3, 2015
Processed products
$
1,501

 
$
1,631

Livestock
905

 
831

Supplies and other
412

 
416

Total inventory
$
2,818

 
$
2,878

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): 

January 2, 2016
 
October 3, 2015
Land
$
125

 
$
122

Buildings and leasehold improvements
3,599

 
3,581

Machinery and equipment
6,575

 
6,452

Land improvements and other
287

 
286

Buildings and equipment under construction
355

 
375

 
10,941

 
10,816

Less accumulated depreciation
5,757

 
5,640

Net property, plant and equipment
$
5,184

 
$
5,176

Other Current Liabilities (Tables)
Schedule Of Other Current Liabilities
Other current liabilities are as follows (in millions):
 
January 2, 2016
 
October 3, 2015
Accrued salaries, wages and benefits
$
354

 
$
478

Accrued marketing, advertising and promotion expense
204

 
192

Other
612

 
488

Total other current liabilities
$
1,170

 
$
1,158

Debt (Tables)
Schedule of Major Components Of Debt
The major components of debt are as follows (in millions):
 
January 2, 2016
 
October 3, 2015
Revolving credit facility
$
—

 
$
—

Senior notes:
 
 
 
6.60% Senior notes due April 2016
638

 
638

7.00% Notes due May 2018
120

 
120

2.65% Notes due August 2019
1,000

 
1,000

4.10% Notes due September 2020
285

 
285

4.50% Senior notes due June 2022
1,000

 
1,000

3.95% Notes due August 2024
1,250

 
1,250

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032
163

 
163

4.88% Notes due August 2034
500

 
500

5.15% Notes due August 2044
500

 
500

Discount on senior notes
(9
)
 
(10
)
Term loans:
 
 
 
3-year tranche B (1.44% at 1/2/2016)
500

 
500

5-year tranche B (1.88% at 1/2/2016)
552

 
552

Amortizing notes - tangible equity units (see Note 7: Equity)
123

 
140

Other
65

 
69

Total debt
6,705

 
6,725

Less current debt
717

 
715

Total long-term debt
$
5,988

 
$
6,010

Equity (Tables)
Schedule of Share Repurchase 
A summary of share repurchases of our Class A stock is as follows (in millions):
 
 
Three Months Ended
 
 
January 2, 2016
 
December 27, 2014
 
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
Under share repurchase program
 
7.6

 
$
357

 
2.0

 
$
81

To fund certain obligations under equity compensation plans
 
0.7

 
30

 
0.2

 
10

Total share repurchases
 
8.3

 
$
387

 
2.2

 
$
91

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
 
January 2, 2016
 
December 27, 2014
Numerator:
 
 
 
Net income
$
461

 
$
310

Less: Net income attributable to noncontrolling interests
—

 
1

Net income attributable to Tyson
461

 
309

Less dividends declared:
 
 
 
Class A
58

 
38

Class B
13

 
8

Undistributed earnings
$
390

 
$
263

 
 
 
 
Class A undistributed earnings
$
327

 
$
221

Class B undistributed earnings
63

 
42

Total undistributed earnings
$
390

 
$
263

Denominator:
 
 
 
Denominator for basic earnings per share:
 
 
 
Class A weighted average shares
325

 
336

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, restricted stock and performance units
5

 
5

Tangible equity units
—

 
5

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
400

 
416

 
 
 
 
Net income per share attributable to Tyson:
 
 
 
Class A basic
$
1.18

 
$
0.77

Class B basic
$
1.09

 
$
0.71

Diluted
$
1.15

 
$
0.74

Derivative Financial Instruments (Tables)
Schedule Of Notional Amount Of Derivatives 
 
Metric
 
January 2, 2016
 
October 3, 2015
Commodity:
 
 
 
 
 
Corn
Bushels
 
37

 
18

Soy meal
Tons
 
392,300

 
284,900

Live cattle
Pounds
 
106

 
102

Lean hogs
Pounds
 
87

 
166

Foreign currency
United States dollar
 
$
27

 
$
42

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
 
January 2, 2016
 
December 27, 2014
 
 
 
January 2, 2016
 
December 27, 2014
Cash flow hedge – derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(2
)
 
$
—

 
Cost of sales
 
$
(1
)
 
$
(3
)
Foreign exchange contracts
—

 
—

 
Other income/expense
 
—

 
—

Total
$
(2
)
 
$
—

 
 
 
$
(1
)
 
$
(3
)
Derivative Instruments, Gain (Loss) [Table Text Block] 
 
 
 
in millions
 
 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
 
January 2, 2016
 
December 27, 2014
Gain (Loss) on forwards
Cost of sales
 
$
33

 
$
(40
)
Gain (Loss) on purchase contract
Cost of sales
 
(33
)
 
40

Derivative Instruments, Gain (Loss) [Table Text Block] 
(in millions):
 
Consolidated Condensed
Statements of Income
Classification
 
Gain (Loss)
Recognized in Earnings
 
 
 
 
Three Months Ended
 
 
 
January 2, 2016
 
December 27, 2014
Derivatives not designated as hedging instruments:
 
 
 
 
 
Commodity contracts
Sales
 
$
9

 
$
(1
)
Commodity contracts
Cost of sales
 
(15
)
 
(26
)
Foreign exchange contracts
Other income/expense
 
—

 
(2
)
Total
 
 
$
(6
)
 
$
(29
)
Fair Value Measurements (Tables)
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis 
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
January 2, 2016
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
21

 
$
—

 
$
(5
)
 
$
16

Undesignated
—

 
19

 
—

 
(13
)
 
6

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Non-current
—

 
36

 
58

 
—

 
94

Deferred compensation assets
8

 
226

 
—

 
—

 
234

Total assets
$
8

 
$
303

 
$
59

 
$
(18
)
 
$
352

Liabilities:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
9

 
$
—

 
$
(9
)
 
$
—

Undesignated
—

 
43

 
—

 
(38
)
 
5

Total liabilities
$
—

 
$
52

 
$
—

 
$
(47
)
 
$
5

October 3, 2015
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
52

 
$
—

 
$
(35
)
 
$
17

Undesignated
—

 
9

 
—

 
(9
)
 
—

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Non-current
—

 
33

 
60

 
—

 
93

Deferred compensation assets
9

 
222

 
—

 
—

 
231

Total assets
$
9

 
$
317

 
$
61

 
$
(44
)
 
$
343

Liabilities:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
2

 
$
—

 
$
(2
)
 
$
—

Undesignated
—

 
49

 
—

 
(47
)
 
2

Total liabilities
$
—

 
$
51

 
$
—

 
$
(49
)
 
$
2


(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 January 2, 2016, and October 3, 2015, we had posted with various counterparties $29 million and $5 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
 
January 2, 2016
 
December 27, 2014
Balance at beginning of year
$
61

 
$
67

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
4

 
4

Issuances
—

 
—

Settlements
(6
)
 
(6
)
Balance at end of period
$
59

 
$
65

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):
 
January 2, 2016
 
October 3, 2015
 
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
$
37

 
$
37

 
$
—

 
$
33

 
$
34

 
$
1

Corporate and asset-backed
58

 
59

 
1

 
60

 
61

 
1

 
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):
 
January 2, 2016
 
October 3, 2015
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total debt
$
6,851

 
$
6,705

 
$
6,900

 
$
6,725



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 January 2, 2016, and December 27, 2014, are as follows (in millions):
 
Pension Plans
 
Three Months Ended
 
January 2, 2016
 
December 27, 2014
 
 
 
 
Service cost
$
4

 
$
4

Interest cost
20

 
21

Expected return on plan assets
(17
)
 
(25
)
Amortization of:
 
 
 
   Net actuarial loss
1

 
1

Settlement (gain) loss (a)
(12
)
 
8

Net periodic cost (credit)
$
(4
)
 
$
9

 
Postretirement Benefit Plans
 
Three Months Ended
 
January 2, 2016
 
December 27, 2014
 
 
 
 
Service cost
$
—

 
$
1

Interest cost
1

 
2

Amortization of:
 
 
 
   Prior service credit
(4
)
 
—

Net periodic cost (credit)
$
(3
)
 
$
3


(a) We made lump-sum settlement payments using plan assets, of $265 million and $18 million during the first quarter of fiscal 2016 and 2015, respectively, to certain deferred vested participants within our qualified pension plans.
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
 
January 2, 2016
 
December 27, 2014
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
(Gain) loss reclassified to cost of sales
$
1

$
—

$
1

 
$
3

$
(2
)
$
1

Unrealized gain (loss)
(2
)
1

(1
)
 
—

—

—

 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
(Gain) loss reclassified to other income/expense
—

—

—

 
—

—

—

Unrealized gain (loss)
(1
)
—

(1
)
 
15

(6
)
9

 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
Translation loss reclassified to cost of sales (a)
—

—

—

 
37

(1
)
36

Translation adjustment
(5
)
—

(5
)
 
(37
)
7

(30
)
 
 
 
 
 
 
 
 
Postretirement benefits
(3
)
1

(2
)
 
9

(2
)
7

Total other comprehensive income (loss)
$
(10
)
$
2

$
(8
)
 
$
27

$
(4
)
$
23

(a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 2: 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
 
 
January 2, 2016
 
December 27, 2014
 
Sales:
 
 
 
 
Chicken
$
2,636

 
$
2,780

 
Beef
3,614

 
4,391

 
Pork
1,213

 
1,540

 
Prepared Foods
1,896

 
2,133

 
Other
99

 
305

 
Intersegment sales
(306
)
 
(332
)
 
Total sales
$
9,152

 
$
10,817

 
 
 
 
 
 
Operating income (loss):
 
 
 
 
Chicken
$
358

 
$
351

 
Beef
71

 
(6
)
 
Pork
158

 
122

 
Prepared Foods
207

 
71

(a) 
Other
(18
)
(b) 
(29
)
(b) 
Total operating income
776

 
509

 
 
 
 
 
 
Total other (income) expense
64


74

 
 
 
 
 
 
Income before income taxes
$
712

 
$
435

 

(a) Includes merger and integration costs of $4 million and costs related to a legacy Hillshire Brands plant fire of $36 million for the three months ended December 27, 2014.
(b) Operating income in Other includes third-party merger and integration costs of $5 million and $15 million for the three months ended January 2, 2016, and December 27, 2014, respectively.
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 January 2, 2016
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
221

 
$
4,833

 
$
4,653

 
$
(555
)
 
$
9,152

Cost of Sales
8

 
4,536

 
3,960

 
(553
)
 
7,951

Gross Profit
213

 
297

 
693

 
(2
)
 
1,201

Selling, General and Administrative
25

 
66

 
336

 
(2
)
 
425

Operating Income
188

 
231

 
357

 
—

 
776

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
61

 
—

 
4

 
—

 
65

Other, net
—

 
(1
)
 
—

 
—

 
(1
)
Equity in net earnings of subsidiaries
(383
)
 
(33
)
 
—

 
416

 
—

Total Other (Income) Expense
(322
)
 
(34
)
 
4

 
416

 
64

Income (Loss) before Income Taxes
510

 
265

 
353

 
(416
)
 
712

Income Tax (Benefit) Expense
49

 
83

 
119

 
—

 
251

Net Income
461

 
182

 
234

 
(416
)
 
461

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

 
—

 
—

 
—

 
—

Net Income Attributable to Tyson
$
461

 
$
182

 
$
234

 
$
(416
)
 
$
461

 
 
 
 
 
 
 
 
 
 
Comprehensive Income (Loss)
453

 
177

 
223

 
(400
)
 
453

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

 
—

 
—

 
—

 
—

Comprehensive Income (Loss) Attributable to Tyson
$
453

 
$
177

 
$
223

 
$
(400
)
 
$
453

 
 
 
 
 
 
 
 
 
 
 
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 Balance Sheet 
Condensed Consolidating Balance Sheet as of January 2, 2016
 
in millions

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

 
$
15

 
$
1,172

 
$
—

 
$
1,187

Accounts receivable, net
—

 
514

 
1,000

 
—

 
1,514

Inventories
—

 
953

 
1,865

 
—

 
2,818

Other current assets
16

 
66

 
131

 
(55
)
 
158

Total Current Assets
16

 
1,548

 
4,168

 
(55
)
 
5,677

Net Property, Plant and Equipment
25

 
978

 
4,181

 
—

 
5,184

Goodwill
—

 
881

 
5,788

 
—

 
6,669

Intangible Assets, net
—

 
9

 
5,136

 
—

 
5,145

Other Assets
118

 
132

 
365

 
—

 
615

Investment in Subsidiaries
22,213

 
2,205

 
—

 
(24,418
)
 
—

Total Assets
$
22,372

 
$
5,753

 
$
19,638

 
$
(24,473
)
 
$
23,290

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
707

 
$
1

 
$
17

 
$
(8
)
 
$
717

Accounts payable
20

 
919

 
842

 
—

 
1,781

Other current liabilities
6,187

 
200

 
832

 
(6,049
)
 
1,170

Total Current Liabilities
6,914

 
1,120

 
1,691

 
(6,057
)
 
3,668

Long-Term Debt
5,484

 
1

 
503

 
—

 
5,988

Deferred Income Taxes
14

 
106

 
2,394

 
—

 
2,514

Other Liabilities
198

 
123

 
1,022

 
—

 
1,343

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,762

 
4,403

 
14,013

 
(18,416
)
 
9,762

Noncontrolling Interest
—

 
—

 
15

 
—

 
15

Total Shareholders’ Equity
9,762

 
4,403

 
14,028

 
(18,416
)
 
9,777

Total Liabilities and Shareholders’ Equity
$
22,372

 
$
5,753

 
$
19,638

 
$
(24,473
)
 
$
23,290


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

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

 
$
12

 
$
676

 
$
—

 
$
688

Accounts receivable, net
—

 
578

 
1,042

 
—

 
1,620

Inventories
1

 
1,009

 
1,868

 
—

 
2,878

Other current assets
43

 
91

 
147

 
(86
)
 
195

Total Current Assets
44

 
1,690

 
3,733

 
(86
)
 
5,381

Net Property, Plant and Equipment
26

 
975

 
4,175

 
—

 
5,176

Goodwill
—

 
881

 
5,786

 
—

 
6,667

Intangible Assets, net
—

 
10

 
5,158

 
—

 
5,168

Other Assets
129

 
146

 
337

 
—

 
612

Investment in Subsidiaries
21,850

 
2,177

 
—

 
(24,027
)
 
—

Total Assets
$
22,049

 
$
5,879

 
$
19,189

 
$
(24,113
)
 
$
23,004

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

 
$
1

 
$
22

 
$
(18
)
 
$
715

Accounts payable
28

 
698

 
936

 
—

 
1,662

Other current liabilities
5,930

 
152

 
939

 
(5,863
)
 
1,158

Total Current Liabilities
6,668

 
851

 
1,897

 
(5,881
)
 
3,535

Long-Term Debt
5,498

 
1

 
511

 
—

 
6,010

Deferred Income Taxes
—

 
98

 
2,351

 
—

 
2,449

Other Liabilities
192

 
118

 
994

 
—

 
1,304

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
9,691

 
4,811

 
13,421

 
(18,232
)
 
9,691

Noncontrolling Interest
—

 
—

 
15

 
—

 
15

Total Shareholders’ Equity
9,691

 
4,811

 
13,436

 
(18,232
)
 
9,706

Total Liabilities and Shareholders’ Equity
$
22,049

 
$
5,879

 
$
19,189

 
$
(24,113
)
 
$
23,004

Condensed Consolidating Statement Of Cash Flows 
Condensed Consolidating Statement of Cash Flows for the three months ended January 2, 2016
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
174

 
$
622

 
$
299

 
$
—

 
$
1,095

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

 
(33
)
 
(155
)
 
—

 
(188
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
(2
)
 
—

 
(2
)
Proceeds from sale of businesses
—

 
—

 
—

 
—

 
—

Other, net
—

 
—

 
(1
)
 
—

 
(1
)
Cash Provided by (Used for) Investing Activities
—

 
(33
)
 
(158
)
 
—

 
(191
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(19
)
 
—

 
(1
)
 
—

 
(20
)
Purchases of Tyson Class A common stock
(387
)
 
—

 
—

 
—

 
(387
)
Dividends
(54
)
 
—

 
—

 
—

 
(54
)
Stock options exercised
34

 
—

 
—

 
—

 
34

Other, net
23

 
—

 
—

 
—

 
23

Net change in intercompany balances
229

 
(586
)
 
357

 
—

 
—

Cash Provided by (Used for) Financing Activities
(174
)
 
(586
)
 
356

 
—

 
(404
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(1
)
 
—

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

 
3

 
496

 
—

 
499

Cash and Cash Equivalents at Beginning of Year
—

 
12

 
676

 
—

 
688

Cash and Cash Equivalents at End of Period
$
—

 
$
15

 
$
1,172

 
$
—

 
$
1,187

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

Dispositions (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Oct. 3, 2015
Operating Segments [Member]
Facility Closing [Member]
Beef [Member]
Oct. 3, 2015
Operating Segments [Member]
Facility Closing [Member]
Prepared Foods [Member]
Oct. 3, 2015
Operating Segments [Member]
Cost of Sales [Member]
Facility Closing [Member]
Prepared Foods [Member]
Oct. 3, 2015
Operating Segments [Member]
Selling, General and Administrative Expenses [Member]
Facility Closing [Member]
Prepared Foods [Member]
Oct. 3, 2015
Chicken Production Operations in Brazil and Mexico [Member]
Segment Reconciling Items [Member]
Other [Member]
Dec. 27, 2014
Chicken Production Operations in Brazil [Member]
Segment Reconciling Items [Member]
Other [Member]
Oct. 3, 2015
Chicken Production Operations in Mexico [Member]
Segment Reconciling Items [Member]
Other [Member]
Oct. 3, 2015
Chicken Production Operations in Mexico [Member]
Segment Reconciling Items [Member]
Cost of Sales [Member]
Other [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
Disposal Group, Consideration
 
 
 
 
$ 575 
 
 
 
Proceeds from Divestiture of Businesses
 
 
 
 
 
148 
374 
 
Gain (Loss) on Disposition of Business
 
 
 
 
 
 
 
161 
Asset Impairment Charges
$ 12 
$ 59 
$ 49 
$ 10 
 
 
 
 
Inventories (Schedule Of Inventory) (Details) (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
Oct. 3, 2015
Inventory Disclosure [Abstract]
 
 
Processed products
$ 1,501 
$ 1,631 
Livestock
905 
831 
Supplies and other
412 
416 
Total inventories
$ 2,818 
$ 2,878 
Inventories (Narrative) (Details)
Jan. 2, 2016
Oct. 3, 2015
Inventory Disclosure [Abstract]
 
 
Percentage of FIFO Inventory
61.00% 
63.00% 
Property, Plant And Equipment (Details) (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
Oct. 3, 2015
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 10,941 
$ 10,816 
Less accumulated depreciation
5,757 
5,640 
Net property, plant and equipment
5,184 
5,176 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
125 
122 
Buildings And Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
3,599 
3,581 
Machinery And Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
6,575 
6,452 
Land Improvements And Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
287 
286 
Buildings And Equipment Under Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 355 
$ 375 
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
Oct. 3, 2015
Other Liabilities, Current [Abstract]
 
 
Accrued salaries, wages and benefits
$ 354 
$ 478 
Accrued Marketing Costs, Current
204 
192 
Other
612 
488 
Total other current liabilities
$ 1,170 
$ 1,158 
Debt (Major Components Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Jan. 2, 2016
Oct. 3, 2015
Sep. 27, 2014
Jan. 2, 2016
6.60% Senior Notes Due April 2016 (2016 Notes) [Member]
Oct. 3, 2015
6.60% Senior Notes Due April 2016 (2016 Notes) [Member]
Jan. 2, 2016
7.00% Notes Due May 2018 [Member]
Oct. 3, 2015
7.00% Notes Due May 2018 [Member]
Jan. 2, 2016
2.65% Senior Unsecured Notes Due August, Two Thousand and Nineteen [Member]
Oct. 3, 2015
2.65% Senior Unsecured Notes Due August, Two Thousand and Nineteen [Member]
Jan. 2, 2016
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member]
Oct. 3, 2015
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member]
Jan. 2, 2016
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Oct. 3, 2015
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Jan. 2, 2016
3.95% Senior Unsecured Notes Due August, Two Thousand and Twenty Four [Member]
Oct. 3, 2015
3.95% Senior Unsecured Notes Due August, Two Thousand and Twenty Four [Member]
Jan. 2, 2016
7.00% Notes Due January 2028 [Member]
Oct. 3, 2015
7.00% Notes Due January 2028 [Member]
Jan. 2, 2016
6.13% Unsecured Notes Due November Two Thousand And Thirty Two [Member]
Oct. 3, 2015
6.13% Unsecured Notes Due November Two Thousand And Thirty Two [Member]
Jan. 2, 2016
4.88% Percentage Senior Unsecured Notes Due August, Two Thousand and Thirty Four [Member]
Oct. 3, 2015
4.88% Percentage Senior Unsecured Notes Due August, Two Thousand and Thirty Four [Member]
Jan. 2, 2016
5.15% Senior Unsecured Notes Due August, Two Thousand and Forty Four [Member]
Oct. 3, 2015
5.15% Senior Unsecured Notes Due August, Two Thousand and Forty Four [Member]
Jan. 2, 2016
3-Year Tranche B [Member]
Term Loan [Member]
Oct. 3, 2015
3-Year Tranche B [Member]
Term Loan [Member]
Jan. 2, 2016
5-Year Tranche B [Member]
Term Loan [Member]
Oct. 3, 2015
5-Year Tranche B [Member]
Term Loan [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes/Term Loans
 
 
 
638 
638 
120 
120 
1,000 
1,000 
285 
285 
1,000 
1,000 
1,250 
1,250 
18 
18 
163 
163 
500 
500 
500 
500 
500 
500 
552 
552 
Discount on senior notes
(9)
(10)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortizing Notes- Tangible Equity Units
123 
140 
205 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
65 
69 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
6,705 
6,725 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less current debt
717 
715 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
$ 5,988 
$ 6,010 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stated interest rate
 
 
 
6.60% 
 
7.00% 
 
2.65% 
 
4.10% 
 
4.50% 
 
3.95% 
 
7.00% 
 
6.13% 
 
4.88% 
 
5.15% 
 
1.44% 
 
1.88% 
 
Debt Instrument, Term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
 
5 years 
 
Debt (Narrative) (Details) (USD $)
Jan. 2, 2016
Debt Instrument [Line Items]
 
Maximum borrowing capacity
$ 1,250,000,000.00 
Amount available for borrowing under credit facility
1,244,000,000 
Standby Letters of Credit [Member]
 
Debt Instrument [Line Items]
 
Letters of Credit Outstanding, Amount
6,000,000 
Bilateral Letters Of Credit [Member]
 
Debt Instrument [Line Items]
 
Letters of Credit Outstanding, Amount
$ 93,000,000 
Equity (Schedule of Share Repurchases) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Class of Stock [Line Items]
 
 
Payments for Repurchase of Common Stock
$ 387 
$ 91 
Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Treasury Stock, Shares, Acquired
8.3 
2.2 
Payments for Repurchase of Common Stock
387 
91 
Share Repurchase Program [Member] |
Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Treasury Stock, Shares, Acquired
7.6 
2.0 
Payments for Repurchase of Common Stock
357 
81 
Open Market Repurchases [Member] |
Class A [Member]
 
 
Class of Stock [Line Items]
 
 
Treasury Stock, Shares, Acquired
0.7 
0.2 
Payments for Repurchase of Common Stock
$ 30 
$ 10 
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 $)
3 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 3 Months Ended 1 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Sep. 27, 2014
Oct. 3, 2015
Sep. 27, 2014
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Dec. 15, 2015
Class A [Member]
Jan. 2, 2016
Class A [Member]
Dec. 27, 2014
Class A [Member]
Jan. 2, 2016
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Jan. 2, 2016
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Minimum [Member]
Jan. 2, 2016
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Maximum [Member]
Jan. 2, 2016
Class A [Member]
Share Repurchase Program [Member]
Dec. 27, 2014
Class A [Member]
Share Repurchase Program [Member]
Feb. 4, 2016
Subsequent Event [Member]
Class A [Member]
Share Repurchase Program [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased
 
 
 
 
 
 
 
 
 
 
 
13,500,000 
 
 
Stock Repurchase Program, Number of Shares Authorized to be Repurchased
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
Payments for Repurchase of Common Stock
$ 387,000,000 
$ 91,000,000 
 
 
 
 
$ 387,000,000 
$ 91,000,000 
 
 
 
$ 357,000,000 
$ 81,000,000 
$ 221,000,000 
Treasury Stock, Shares, Acquired
 
 
 
 
 
 
8,300,000 
2,200,000 
 
 
 
7,600,000 
2,000,000 
4,300,000 
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
123,000,000 
 
205,000,000 
140,000,000 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, initial principal amount
 
 
 
 
6.83 
 
 
 
 
 
 
 
 
 
Senior amortizing note, interest rate
 
 
 
 
1.50% 
 
 
 
 
 
 
 
 
 
Senior amortizing note, quarterly principal and interest payment
 
 
 
 
$ 0.59 
 
 
 
 
 
 
 
 
 
Senior amortizing note, number of shares to be issued
 
 
 
 
 
 
 
 
 
31,900,000 
39,800,000 
 
 
 
Senior amortizing note, conversion price
 
 
 
 
 
 
 
 
$ 47.06 
 
 
 
 
 
Senior amortizing note, number of shares per contract if applicable market value equal to or greater than conversion price
 
 
 
 
 
 
 
 
1.0624 
 
 
 
 
 
Senior amortizing note, reference price
 
 
 
 
 
 
 
 
$ 37.65 
 
 
 
 
 
Senior amortizing note, if applicable market value greater than reference price, number of shares equal to amount divided by Applicable Market Value
 
 
 
 
 
 
 
 
$ 50 
 
 
 
 
 
Senior amortizing note, number of shares per contract, if Applicable Market Value is less than or equal to reference price
 
 
 
 
 
 
 
 
1.3282 
 
 
 
 
 
Senior amortizing note, consecutive trading days for calculation of applicable market value
 
 
 
 
 
 
 
 
20 days 
 
 
 
 
 
Common Stock, Dividends, Per Share, Cash Paid
 
 
 
 
 
$ 0.15 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Dividend Threshold Amount
 
 
 
 
 
 
 
 
$ 0.075 
 
 
 
 
 
Senior amortizing note, incremental common shares attributable to dilutive effect of conversion, if applicable market value higher than reference price
 
 
 
 
 
 
 
 
8,000,000 
 
 
 
 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Oct. 3, 2015
Income Tax Disclosure [Abstract]
 
 
 
Effective tax rate for continuing operations
35.20% 
28.80% 
 
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations
6.50% 
 
 
Unrecognized tax benefits
$ 304 
 
$ 306 
Unrecognized tax benefits, reductions that could result from tax audit resolutions
$ 15 
 
 
Other Income And Charges (Details) (Other Nonoperating Income (Expense) [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Other Nonoperating Income (Expense) [Member]
 
 
Components of Other Income and Expenses [Line Items]
 
 
Equity Earnings in Joint Ventures
$ 2 
$ 1 
Foreign Currency Transaction Gain (Loss), Realized
$ (1)
 
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
Jan. 2, 2016
Dec. 27, 2014
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Net Income
$ 461 
$ 310 
Less: Net income (loss) attributable to noncontrolling interest
0 
1 
Net Income Attributable to Tyson
461 
309 
Undistributed earnings
390 
263 
Stock options and restricted stock
5 
5 
Tangible Equity Units
0 
5 
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions
400 
416 
Net Income Per Share Attributable to Tyson - Diluted
$ 1.15 
$ 0.74 
Class A [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Less Dividends Declared:
58 
38 
Undistributed earnings
327 
221 
Weighted average number of shares outstanding - Basic
325 
336 
Net Income Per Share Attributable to Tyson - Basic
$ 1.18 
$ 0.77 
Class B [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Less Dividends Declared:
13 
8 
Undistributed earnings
$ 63 
$ 42 
Weighted average number of shares outstanding - Basic
70 
70 
Net Income Per Share Attributable to Tyson - Basic
$ 1.09 
$ 0.71 
Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
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
2 
6 
Derivative Financial Instruments (Aggregate Outstanding Notionals) (Details) (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
bu
Oct. 3, 2015
bu
Corn (in bushels)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
37,000,000 
18,000,000 
Soy Meal (in tons)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
392,300 
284,900 
Live Cattle [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
106,000,000 
102,000,000 
Lean Hogs [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
87,000,000 
166,000,000 
Foreign Currency [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
$ 27 
$ 42 
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
Jan. 2, 2016
Dec. 27, 2014
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ (2)
$ 0 
Gain/(Loss) Reclassified from OCI to Earnings
(1)
(3)
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
(2)
0 
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Reclassified from OCI to Earnings
(1)
(3)
Foreign Currency [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
0 
0 
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
Jan. 2, 2016
Dec. 27, 2014
Forward Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) on forwards
$ 33 
$ (40)
Purchase Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) on forwards
$ (33)
$ 40 
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
Jan. 2, 2016
Dec. 27, 2014
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
$ (6)
$ (29)
Commodity Contracts [Member] |
Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
9 
(1)
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
(15)
(26)
Foreign Currency [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
$ 0 
$ (2)
Derivative Financial Instruments (Narrative) (Details) (Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Cash Flow Hedging [Member]
 
Derivative [Line Items]
 
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months
$ (2)
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
Oct. 3, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative assets and liabilities posted cash collateral
$ 29 
$ 5 
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 
2 
Available for Sale Securities, Noncurrent
94 
93 
Deferred Compensation Assets
234 
231 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(18)1
(44)1
Total Assets
352 
343 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(47)1
(49)1
Total Liabilities
5 
2 
Fair Value, Measurements, Recurring [Member] |
Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
16 
17 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(5)
(35)
Derivative Financial Instruments, Liabilities
0 
0 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(9)
(2)
Fair Value, Measurements, Recurring [Member] |
Not Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
6 
0 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(13)
(9)
Derivative Financial Instruments, Liabilities
5 
2 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(38)
(47)
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-Sale Securities, Current
0 
0 
Available for Sale Securities, Noncurrent
0 
0 
Deferred Compensation Assets
8 
9 
Total Assets
8 
9 
Total Liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
0 
0 
Derivative Financial Instruments, Liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Not Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
0 
0 
Derivative Financial Instruments, Liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-Sale Securities, Current
1 
1 
Available for Sale Securities, Noncurrent
36 
33 
Deferred Compensation Assets
226 
222 
Total Assets
303 
317 
Total Liabilities
52 
51 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
21 
52 
Derivative Financial Instruments, Liabilities
9 
2 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Not Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
19 
9 
Derivative Financial Instruments, Liabilities
43 
49 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-Sale Securities, Current
1 
1 
Available for Sale Securities, Noncurrent
58 
60 
Deferred Compensation Assets
0 
0 
Total Assets
59 
61 
Total Liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member] |
Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
0 
0 
Derivative Financial Instruments, Liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member] |
Not Designated as Hedging Instrument [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
0 
0 
Derivative Financial Instruments, Liabilities
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Balance at beginning of year
$ 61 
$ 67 
Total realized gains (losses) included in earnings
0 
0 
Total unrealized gains (losses) included in other comprehensive income (loss)
0 
0 
Purchases
4 
4 
Issuances
0 
0 
Settlements
(6)
(6)
Balance at end of period
59 
65 
Total gains (losses) for the three-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
Oct. 3, 2015
U.S. Treasury and Agency [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
$ 37 
$ 33 
Fair Value
37 
34 
Unrealized Gain/(Loss)
0 
1 
Corporate And Asset-Backed [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
58 
60 
Fair Value
59 
61 
Unrealized Gain/(Loss)
$ 1 
$ 1 
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
Oct. 3, 2015
Fair Value Disclosures [Abstract]
 
 
Total Debt, Fair Value
$ 6,851 
$ 6,900 
Total Debt, Carrying Value
$ 6,705 
$ 6,725 
Fair Value Measurement (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Oct. 3, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
$ 0 
$ 0 
 
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent
0 
 
0 
Liabilities, Fair Value Disclosure, Nonrecurring
0 
0 
 
Assets, Fair Value Disclosure, Nonrecurring
$ 0 
$ 0 
 
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 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Pension Plan [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
$ 4 
$ 4 
Interest Cost
20 
21 
Expected Return on Plan Assets
(17)
(25)
Amortization of net actuarial loss
1 
1 
Settlement (gain) loss
(12)1
8 
Net Periodic Cost
(4)
9 
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Service Cost
0 
1 
Interest Cost
1 
2 
Amortization of Prior Service Cost (Credit)
(4)
0 
Net Periodic Cost
$ (3)
$ 3 
Pension and Other Postretirement Benefit Plans (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Contributions by Employer
$ 32 
$ 3 
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year
31 
 
Pension Plan [Member]
 
 
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
 
 
Defined Benefit Plan, Settlements, Plan Assets
$ 265 
$ 18 
Other Comprehensive Income (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Other Comprehensive Income Loss [Line Items]
 
 
Total Other Comprehensive Income (Loss), Before Tax
$ (10)
$ 27 
Total Other Comprehensive Income (Loss), Tax
2 
(4)
Total Other Comprehensive Income (Loss), Net of Taxes
(8)
23 
Derivatives accounted for as cash flow hedges [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
(2)
0 
Other Comprehensive Income (Loss), Before Reclassifications, Tax
1 
0 
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
(1)
0 
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
1 
3 
Reclassification from AOCI, Current Period, Tax
0 
(2)
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
1 
1 
Investments [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
(1)
15 
Other Comprehensive Income (Loss), Before Reclassifications, Tax
0 
(6)
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
(1)
9 
Investments [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Reclassification from Accumulated Other Comprehensive Income, Before Tax
0 
0 
Reclassification from AOCI, Current Period, Tax
0 
0 
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
0 
Currency translation [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax
(5)
(37)
Other Comprehensive Income (Loss), Before Reclassifications, Tax
0 
7 
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax
(5)
(30)
Currency translation [Member] |
Cost of Sales [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Reclassification from Accumulated Other Comprehensive Income, Before Tax
0 
37 1
Reclassification from AOCI, Current Period, Tax
0 
(1)1
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
36 1
Postretirement benefits [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Total Other Comprehensive Income (Loss), Before Tax
(3)
9 
Total Other Comprehensive Income (Loss), Tax
1 
(2)
Total Other Comprehensive Income (Loss), Net of Taxes
$ (2)
$ 7 
Segment Reporting (Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Segment Reporting Information [Line Items]
 
 
Sales
$ 9,152 
$ 10,817 
Operating Income (Loss)
776 
509 
Total Other (Income) Expense
64 
74 
Income before Income Taxes
712 
435 
Operating Segments [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
2,636 
2,780 
Operating Income (Loss)
358 
351 
Operating Segments [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
3,614 
4,391 
Operating Income (Loss)
71 
(6)
Operating Segments [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
1,213 
1,540 
Operating Income (Loss)
158 
122 
Operating Segments [Member] |
Prepared Foods [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
1,896 
2,133 
Operating Income (Loss)
207 
71 1
Segment Reconciling Items [Member] |
Other [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
99 
305 
Operating Income (Loss)
(18)2
(29)2
Intersegment Elimination [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(306)
(332)
Intersegment Elimination [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(3)
(1)
Intersegment Elimination [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(72)
(78)
Intersegment Elimination [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
$ (231)
$ (253)
Segment Reporting (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Segments
Dec. 27, 2014
Segment Reporting Information [Line Items]
 
 
Number of Operating Segments
4 
 
Sales
$ 9,152 
$ 10,817 
Prepared Foods [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Business Combination, Acquisition Related Costs
 
4 
Activity From Fire Related Damages [Member] |
Prepared Foods [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Unusual or Infrequent Item, Insurance Proceeds
 
36 
Segment Reconciling Items [Member] |
Other [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Business Combination, Acquisition Related Costs
5 
15 
Sales
99 
305 
Intersegment Elimination [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(306)
(332)
Intersegment Elimination [Member] |
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(3)
(1)
Intersegment Elimination [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
(72)
(78)
Intersegment Elimination [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
$ (231)
$ (253)
Commitments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Oct. 3, 2015
Jan. 2, 2016
Industrial Revenue Bonds [Member]
Jan. 2, 2016
Guarantee of Indebtedness of Others [Member]
Jan. 2, 2016
Residual Value Guarantees [Member]
Guarantor Obligations [Line Items]
 
 
 
 
 
Guarantor Obligations, Maximum Exposure, Period (in years)
 
 
 
10 years 
 
Maximum potential amount
 
 
 
$ 40 
$ 95 
Guarantor Obligations, Maximum Exposure, Remaining Lease Period (in years)
 
 
 
 
12 years 
Amount recoverable through various recourse provisions
 
 
 
 
88 
Potential maximum obligation under cash flow assistance programs
310 
 
 
 
 
Total receivables under cash flow assistance programs
3 
0 
 
 
 
Uncollectible receivables estimated under cash flow assistance programs
0 
0 
 
 
 
Industrial Revenue Bonds
 
 
$ 574 
 
 
Contingencies (Narrative) (Details)
0 Months Ended 3 Months Ended 12 Months Ended
Jan. 2, 2016
Claims
Aug. 25, 2014
Bouaphakeo Case [Member]
USD ($)
Jan. 2, 2016
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
USD ($)
Plantiffs
Jan. 2, 2016
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
PHP (?)
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
5 
 
 
 
 
 
 
 
Loss Contingency, Damages Awarded, Value
 
$ 5,784,758 
 
 
$ 74,000,000 
? 3,453,664,710 
 
 
Loss contingency, damages sought
 
2,692,145 
 
 
 
 
 
 
Loss Contingency, Range of Possible Loss, Maximum
 
 
 
 
 
 
7,000,000 
342,287,800 
Estimated Percentage of Settling Complainants
 
 
23.00% 
23.00% 
 
 
 
 
Loss Contingency, Number of Plaintiffs
 
 
5,984 
5,984 
 
 
 
 
Loss Contingency, Estimate of Possible Loss
 
 
$ 1,448 
? 68,000 
 
 
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income and Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
$ 9,152 
$ 10,817 
Cost of Sales
7,951 
9,861 
Gross Profit
1,201 
956 
Selling, General and Administrative
425 
447 
Operating Income
776 
509 
Other (Income) Expense:
 
 
Interest expense, net
65 
75 
Other, net
(1)
(1)
Equity in net earnings of subsidiaries
0 
0 
Total Other (Income) Expense
64 
74 
Income (Loss) before Income Taxes
712 
435 
Income Tax (Benefit) Expense
251 
125 
Net Income
461 
310 
Less: Net income (loss) attributable to noncontrolling interest
0 
1 
Net Income Attributable to Tyson
461 
309 
Comprehensive Income
453 
333 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
1 
Comprehensive Income Attributable to Tyson
453 
332 
TFI Parent [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
221 
228 
Cost of Sales
8 
19 
Gross Profit
213 
209 
Selling, General and Administrative
25 
34 
Operating Income
188 
175 
Other (Income) Expense:
 
 
Interest expense, net
61 
69 
Other, net
0 
(1)
Equity in net earnings of subsidiaries
(383)
(237)
Total Other (Income) Expense
(322)
(169)
Income (Loss) before Income Taxes
510 
344 
Income Tax (Benefit) Expense
49 
35 
Net Income
461 
309 
Less: Net income (loss) attributable to noncontrolling interest
0 
0 
Net Income Attributable to Tyson
461 
309 
Comprehensive Income
453 
332 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
453 
332 
TFM Parent, Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
4,833 
5,809 
Cost of Sales
4,536 
5,662 
Gross Profit
297 
147 
Selling, General and Administrative
66 
61 
Operating Income
231 
86 
Other (Income) Expense:
 
 
Interest expense, net
0 
0 
Other, net
(1)
0 
Equity in net earnings of subsidiaries
(33)
(38)
Total Other (Income) Expense
(34)
(38)
Income (Loss) before Income Taxes
265 
124 
Income Tax (Benefit) Expense
83 
30 
Net Income
182 
94 
Less: Net income (loss) attributable to noncontrolling interest
0 
0 
Net Income Attributable to Tyson
182 
94 
Comprehensive Income
177 
104 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
177 
104 
Non-Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
4,653 
5,325 
Cost of Sales
3,960 
4,722 
Gross Profit
693 
603 
Selling, General and Administrative
336 
355 
Operating Income
357 
248 
Other (Income) Expense:
 
 
Interest expense, net
4 
6 
Other, net
0 
0 
Equity in net earnings of subsidiaries
0 
0 
Total Other (Income) Expense
4 
6 
Income (Loss) before Income Taxes
353 
242 
Income Tax (Benefit) Expense
119 
60 
Net Income
234 
182 
Less: Net income (loss) attributable to noncontrolling interest
0 
1 
Net Income Attributable to Tyson
234 
181 
Comprehensive Income
223 
186 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
1 
Comprehensive Income Attributable to Tyson
223 
185 
Eliminations [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
(555)
(545)
Cost of Sales
(553)
(542)
Gross Profit
(2)
(3)
Selling, General and Administrative
(2)
(3)
Operating Income
0 
0 
Other (Income) Expense:
 
 
Interest expense, net
0 
0 
Other, net
0 
0 
Equity in net earnings of subsidiaries
416 
275 
Total Other (Income) Expense
416 
275 
Income (Loss) before Income Taxes
(416)
(275)
Income Tax (Benefit) Expense
0 
0 
Net Income
(416)
(275)
Less: Net income (loss) attributable to noncontrolling interest
0 
0 
Net Income Attributable to Tyson
(416)
(275)
Comprehensive Income
(400)
(289)
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests
0 
0 
Comprehensive Income Attributable to Tyson
$ (400)
$ (289)
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Jan. 2, 2016
Oct. 3, 2015
Dec. 27, 2014
Sep. 27, 2014
Assets
 
 
 
 
Cash and cash equivalents
$ 1,187 
$ 688 
$ 381 
$ 438 
Accounts receivable, net
1,514 
1,620 
 
 
Inventories
2,818 
2,878 
 
 
Other current assets
158 
195 
 
 
Total Current Assets
5,677 
5,381 
 
 
Net Property, Plant and Equipment
5,184 
5,176 
 
 
Goodwill
6,669 
6,667 
 
 
Intangible Assets, net
5,145 
5,168 
 
 
Other Assets
615 
612 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
23,290 
23,004 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
717 
715 
 
 
Accounts payable
1,781 
1,662 
 
 
Other current liabilities
1,170 
1,158 
 
 
Total Current Liabilities
3,668 
3,535 
 
 
Long-Term Debt
5,988 
6,010 
 
 
Deferred Income Taxes
2,514 
2,449 
 
 
Other Liabilities
1,343 
1,304 
 
 
Total Tyson Shareholders' Equity
9,762 
9,691 
 
 
Noncontrolling Interest
15 
15 
 
 
Total Shareholders' Equity
9,777 
9,706 
 
 
Total Liabilities and Shareholders' Equity
23,290 
23,004 
 
 
TFI Parent [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
0 
 
 
Inventories
0 
1 
 
 
Other current assets
16 
43 
 
 
Total Current Assets
16 
44 
 
 
Net Property, Plant and Equipment
25 
26 
 
 
Goodwill
0 
0 
 
 
Intangible Assets, net
0 
0 
 
 
Other Assets
118 
129 
 
 
Investment in Subsidiaries
22,213 
21,850 
 
 
Total Assets
22,372 
22,049 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
707 
710 
 
 
Accounts payable
20 
28 
 
 
Other current liabilities
6,187 
5,930 
 
 
Total Current Liabilities
6,914 
6,668 
 
 
Long-Term Debt
5,484 
5,498 
 
 
Deferred Income Taxes
14 
0 
 
 
Other Liabilities
198 
192 
 
 
Total Tyson Shareholders' Equity
9,762 
9,691 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
9,762 
9,691 
 
 
Total Liabilities and Shareholders' Equity
22,372 
22,049 
 
 
TFM Parent, Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
15 
12 
12 
41 
Accounts receivable, net
514 
578 
 
 
Inventories
953 
1,009 
 
 
Other current assets
66 
91 
 
 
Total Current Assets
1,548 
1,690 
 
 
Net Property, Plant and Equipment
978 
975 
 
 
Goodwill
881 
881 
 
 
Intangible Assets, net
9 
10 
 
 
Other Assets
132 
146 
 
 
Investment in Subsidiaries
2,205 
2,177 
 
 
Total Assets
5,753 
5,879 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
1 
1 
 
 
Accounts payable
919 
698 
 
 
Other current liabilities
200 
152 
 
 
Total Current Liabilities
1,120 
851 
 
 
Long-Term Debt
1 
1 
 
 
Deferred Income Taxes
106 
98 
 
 
Other Liabilities
123 
118 
 
 
Total Tyson Shareholders' Equity
4,403 
4,811 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
4,403 
4,811 
 
 
Total Liabilities and Shareholders' Equity
5,753 
5,879 
 
 
Non-Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
1,172 
676 
369 
397 
Accounts receivable, net
1,000 
1,042 
 
 
Inventories
1,865 
1,868 
 
 
Other current assets
131 
147 
 
 
Total Current Assets
4,168 
3,733 
 
 
Net Property, Plant and Equipment
4,181 
4,175 
 
 
Goodwill
5,788 
5,786 
 
 
Intangible Assets, net
5,136 
5,158 
 
 
Other Assets
365 
337 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
19,638 
19,189 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
17 
22 
 
 
Accounts payable
842 
936 
 
 
Other current liabilities
832 
939 
 
 
Total Current Liabilities
1,691 
1,897 
 
 
Long-Term Debt
503 
511 
 
 
Deferred Income Taxes
2,394 
2,351 
 
 
Other Liabilities
1,022 
994 
 
 
Total Tyson Shareholders' Equity
14,013 
13,421 
 
 
Noncontrolling Interest
15 
15 
 
 
Total Shareholders' Equity
14,028 
13,436 
 
 
Total Liabilities and Shareholders' Equity
19,638 
19,189 
 
 
Eliminations [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
0 
 
 
Inventories
0 
0 
 
 
Other current assets
(55)
(86)
 
 
Total Current Assets
(55)
(86)
 
 
Net Property, Plant and Equipment
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangible Assets, net
0 
0 
 
 
Other Assets
0 
0 
 
 
Investment in Subsidiaries
(24,418)
(24,027)
 
 
Total Assets
(24,473)
(24,113)
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
(8)
(18)
 
 
Accounts payable
0 
0 
 
 
Other current liabilities
(6,049)
(5,863)
 
 
Total Current Liabilities
(6,057)
(5,881)
 
 
Long-Term Debt
0 
0 
 
 
Deferred Income Taxes
0 
0 
 
 
Other Liabilities
0 
0 
 
 
Total Tyson Shareholders' Equity
(18,416)
(18,232)
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
(18,416)
(18,232)
 
 
Total Liabilities and Shareholders' Equity
$ (24,473)
$ (24,113)
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jan. 2, 2016
Dec. 27, 2014
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
Cash Provided by (Used for) Operating Activities
$ 1,095 
$ 812 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(188)
(231)
(Purchases of)/ Proceeds from marketable securities, net
(2)
(3)
Proceeds from sale of businesses
0 
142 
Other, net
(1)
3 
Cash Provided by (Used for) Investing Activities
(191)
(89)
Cash Flows From Financing Activities:
 
 
Net change in debt
(20)
(668)
Purchases of Tyson Class A common stock
(387)
(91)
Dividends
(54)
(37)
Stock options exercised
34 
16 
Other, net
23 
5 
Net change in intercompany balances
0 
0 
Cash Provided by (Used for) Financing Activities
(404)
(775)
Effect of Exchange Rate Changes on Cash
(1)
(5)
Increase (Decrease) in Cash and Cash Equivalents
499 
(57)
Cash and Cash Equivalents at Beginning of Year
688 
438 
Cash and Cash Equivalents at End of Period
1,187 
381 
TFI Parent [Member]
 
 
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
Cash Provided by (Used for) Operating Activities
174 
55 
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 
0 
Other, net
0 
0 
Cash Provided by (Used for) Investing Activities
0 
0 
Cash Flows From Financing Activities:
 
 
Net change in debt
(19)
(667)
Purchases of Tyson Class A common stock
(387)
(91)
Dividends
(54)
(37)
Stock options exercised
34 
16 
Other, net
23 
5 
Net change in intercompany balances
229 
719 
Cash Provided by (Used for) Financing Activities
(174)
(55)
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
622 
325 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(33)
(40)
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Proceeds from sale of businesses
0 
0 
Other, net
0 
0 
Cash Provided by (Used for) Investing Activities
(33)
(40)
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
(586)
(314)
Cash Provided by (Used for) Financing Activities
(586)
(314)
Effect of Exchange Rate Changes on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
3 
(29)
Cash and Cash Equivalents at Beginning of Year
12 
41 
Cash and Cash Equivalents at End of Period
15 
12 
Non-Guarantors [Member]
 
 
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract]
 
 
Cash Provided by (Used for) Operating Activities
299 
432 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(155)
(191)
(Purchases of)/ Proceeds from marketable securities, net
(2)
(3)
Proceeds from sale of businesses
0 
142 
Other, net
(1)
3 
Cash Provided by (Used for) Investing Activities
(158)
(49)
Cash Flows From Financing Activities:
 
 
Net change in debt
(1)
(1)
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
357 
(405)
Cash Provided by (Used for) Financing Activities
356 
(406)
Effect of Exchange Rate Changes on Cash
(1)
(5)
Increase (Decrease) in Cash and Cash Equivalents
496 
(28)
Cash and Cash Equivalents at Beginning of Year
676 
397 
Cash and Cash Equivalents at End of Period
1,172 
369 
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 
0 
Other, net
0 
0 
Cash Provided by (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 Provided by (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 $)
Jan. 2, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
 
Amount available under credit facility
$ 1,250,000,000.00