Document and Entity Information
Document and Entity Information | 9 Months Ended |
Jun. 29, 2019$ / sharesshares | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 29, 2019 |
Document Transition Report | false |
Entity File Number | 001-14704 |
Entity Registrant Name | TYSON FOODS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 71-0225165 |
Entity Addresses [Line Items] | 2200 West Don Tyson Parkway, |
Entity Address, City or Town | Springdale, |
Entity Address, State or Province | AR |
Entity Address, Postal Zip Code | 72762-6999 |
City Area Code | (479) |
Local Phone Number | 290-4000 |
Entity Listing, Description | Class A Common Stock |
Entity Listing, Par Value Per Share | $ / shares | $ 0.10 |
Trading Symbol | TSN |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Current Interactive Data Filing Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000100493 |
Current Fiscal Year End Date | --09-28 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Class A [Member] | |
Entity Common Stock, Shares Outstanding | 294,675,917 |
Class B [Member] | |
Entity Common Stock, Shares Outstanding | 70,010,355 |
Consolidated Condensed Statemen
Consolidated Condensed Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Sales | $ 10,885 | $ 10,051 | $ 31,521 | $ 30,053 |
Cost of Sales | 9,549 | 8,752 | 27,638 | 26,296 |
Gross Profit | 1,336 | 1,299 | 3,883 | 3,757 |
Operating Expenses: | ||||
Selling, General and Administrative | 555 | 502 | 1,660 | 1,544 |
Operating Income | 781 | 797 | 2,223 | 2,213 |
Other (Income) Expense: | ||||
Interest income | (2) | (2) | (9) | (6) |
Interest expense | 121 | 89 | 339 | 263 |
Other, net | (62) | (13) | (72) | (32) |
Total Other (Income) Expense | 57 | 74 | 258 | 225 |
Income before Income Taxes | 724 | 723 | 1,965 | 1,988 |
Income Tax Expense (Benefit) | 43 | 181 | 302 | (502) |
Net Income | 681 | 542 | 1,663 | 2,490 |
Less: Net Income Attributable to Noncontrolling Interests | 5 | 1 | 10 | 3 |
Net Income Attributable to Tyson | $ 676 | $ 541 | $ 1,653 | $ 2,487 |
Weighted Average Shares Outstanding: | ||||
Diluted, Shares | 367 | 369 | 366 | 370 |
Net Income Per Share Attributable to Tyson: | ||||
Diluted (USD per share) | $ 1.84 | $ 1.47 | $ 4.51 | $ 6.72 |
Class A [Member] | ||||
Weighted Average Shares Outstanding: | ||||
Basic, Shares | 293 | 295 | 293 | 296 |
Net Income Per Share Attributable to Tyson: | ||||
Basic (USD per share) | $ 1.90 | $ 1.52 | $ 4.64 | $ 6.94 |
Class B [Member] | ||||
Weighted Average Shares Outstanding: | ||||
Basic, Shares | 70 | 70 | 70 | 70 |
Net Income Per Share Attributable to Tyson: | ||||
Basic (USD per share) | $ 1.71 | $ 1.37 | $ 4.17 | $ 6.24 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 681 | $ 542 | $ 1,663 | $ 2,490 |
Other Comprehensive Income (Loss), Net of Taxes: | ||||
Derivatives accounted for as cash flow hedges | 4 | (9) | (8) | (7) |
Investments | 1 | (1) | 2 | (1) |
Currency translation | (15) | (25) | 18 | (19) |
Postretirement benefits | 0 | (3) | (3) | (7) |
Total Other Comprehensive Income (Loss), Net of Taxes | (10) | (38) | 9 | (34) |
Comprehensive Income | 671 | 504 | 1,672 | 2,456 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 5 | 1 | 10 | 3 |
Comprehensive Income Attributable to Tyson | $ 666 | $ 503 | $ 1,662 | $ 2,453 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Assets | ||
Cash and cash equivalents | $ 406 | $ 270 |
Accounts receivable, net | 2,452 | 1,723 |
Inventories | 4,149 | 3,513 |
Other current assets | 426 | 182 |
Total Current Assets | 7,433 | 5,688 |
Net Property, Plant and Equipment | 7,271 | 6,169 |
Goodwill | 10,944 | 9,739 |
Intangible Assets, net | 7,206 | 6,759 |
Other Assets | 811 | 754 |
Total Assets | 33,665 | 29,109 |
Liabilities and Shareholders' Equity | ||
Current debt | 2,125 | 1,911 |
Accounts payable | 1,958 | 1,694 |
Other current liabilities | 1,514 | 1,426 |
Total Current Liabilities | 5,597 | 5,031 |
Long-Term Debt | 10,461 | 7,962 |
Deferred Income Taxes | 2,338 | 2,107 |
Other Liabilities | 1,128 | 1,198 |
Commitments and Contingencies (Note 17) | ||
Shareholders' Equity: | ||
Capital in excess of par value | 4,361 | 4,387 |
Retained earnings | 13,553 | 12,329 |
Accumulated other comprehensive gain (loss) | (6) | (15) |
Treasury stock, at cost – 83 million shares at June 29, 2019 and 82 million shares at September 29, 2018 | (4,025) | (3,943) |
Total Tyson Shareholders’ Equity | 13,928 | 12,803 |
Noncontrolling Interests | 213 | 8 |
Total Shareholders’ Equity | 14,141 | 12,811 |
Total Liabilities and Shareholders’ Equity | 33,665 | 29,109 |
Class A [Member] | ||
Shareholders' Equity: | ||
Common stock ($0.10 par value): | 38 | 38 |
Total Tyson Shareholders’ Equity | 38 | 38 |
Class B [Member] | ||
Shareholders' Equity: | ||
Common stock ($0.10 par value): | 7 | 7 |
Total Tyson Shareholders’ Equity | $ 7 | $ 7 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parentheticals) - $ / shares shares in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Treasury Stock, shares | 83 | 82 |
Class A [Member] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 900 | 900 |
Common stock, shares issued | 378 | 378 |
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 Statem_3
Consolidated Condensed Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Capital in Excess of Par Value: | Retained Earnings: | Accumulated Other Comprehensive Income (Loss), Net of Tax: | Treasury Stock: | Total Shareholders’ Equity Attributable to Tyson | Equity Attributable to Noncontrolling Interests: | Class A [Member] | Class B [Member] |
Balance at beginning of quarter, Common Stock Shares at Sep. 30, 2017 | 378 | 70 | |||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Sep. 30, 2017 | $ 4,378 | $ 9,776 | $ 16 | $ (3,674) | $ 38 | $ 7 | |||
Balance at beginning of quarter, Treasury Stock shares at Sep. 30, 2017 | 80 | ||||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 30, 2017 | $ 18 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | (2) | $ (151) | |||||||
Net income attributable to Tyson | $ 2,487 | 2,487 | |||||||
Dividends | (350) | $ (289) | $ (61) | ||||||
Other comprehensive income (loss) | (34) | (34) | |||||||
Purchase of Class A common stock, shares | 5 | 5 | |||||||
Purchase of Class A common stock | $ (367) | ||||||||
Stock-based compensation, shares | (3) | ||||||||
Net income attributable to noncontrolling interests | 3 | (3) | |||||||
Business combination and other | (10) | ||||||||
Balance at end of quarter, Common Stock Shares at Jun. 30, 2018 | 378 | 70 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Jun. 30, 2018 | 4,376 | 11,913 | (18) | $ (3,890) | $ 12,426 | $ 38 | $ 7 | ||
Balance at end of quarter, Treasury Stock shares at Jun. 30, 2018 | 82 | ||||||||
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Jun. 30, 2018 | 11 | ||||||||
Balance at beginning of quarter, Common Stock Shares at Mar. 31, 2018 | 378 | 70 | |||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Mar. 31, 2018 | 4,362 | 11,479 | 20 | $ (3,770) | $ 38 | $ 7 | |||
Balance at beginning of quarter, Treasury Stock shares at Mar. 31, 2018 | 80 | ||||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Mar. 31, 2018 | 20 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | (14) | $ (10) | |||||||
Net income attributable to Tyson | 541 | 541 | |||||||
Dividends | (107) | $ (88) | $ (19) | ||||||
Other comprehensive income (loss) | (38) | (38) | |||||||
Purchase of Class A common stock, shares | 2 | 1.9 | |||||||
Purchase of Class A common stock | $ (130) | ||||||||
Stock-based compensation, shares | 0 | ||||||||
Net income attributable to noncontrolling interests | 1 | (1) | |||||||
Business combination and other | (10) | ||||||||
Balance at end of quarter, Common Stock Shares at Jun. 30, 2018 | 378 | 70 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Jun. 30, 2018 | 4,376 | 11,913 | (18) | $ (3,890) | 12,426 | $ 38 | $ 7 | ||
Balance at end of quarter, Treasury Stock shares at Jun. 30, 2018 | 82 | ||||||||
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Jun. 30, 2018 | 11 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance at end of quarter, Total Shareholders' Equity | 12,437 | ||||||||
Balance at end of quarter, Total Shareholders' Equity | 12,811 | ||||||||
Balance at beginning of quarter, Common Stock Shares at Sep. 29, 2018 | 378 | 70 | |||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Sep. 29, 2018 | $ 12,803 | 4,387 | 12,329 | (15) | $ (3,943) | $ 38 | $ 7 | ||
Balance at beginning of quarter, Treasury Stock shares at Sep. 29, 2018 | 82 | 82 | |||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 29, 2018 | $ 8 | 8 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | (26) | $ (143) | |||||||
Net income attributable to Tyson | 1,653 | 1,653 | |||||||
Dividends | (429) | $ (353) | $ (76) | ||||||
Other comprehensive income (loss) | 9 | 9 | |||||||
Purchase of Class A common stock, shares | 3 | 3.4 | |||||||
Purchase of Class A common stock | $ (225) | ||||||||
Stock-based compensation, shares | (2) | ||||||||
Net income attributable to noncontrolling interests | 10 | (10) | |||||||
Business combination and other | 195 | ||||||||
Balance at end of quarter, Common Stock Shares at Jun. 29, 2019 | 378 | 70 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Jun. 29, 2019 | $ 13,928 | 4,361 | 13,553 | (6) | $ (4,025) | 13,928 | $ 38 | $ 7 | |
Balance at end of quarter, Treasury Stock shares at Jun. 29, 2019 | 83 | 83 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Jun. 29, 2019 | $ 213 | 213 | |||||||
Balance at beginning of quarter, Common Stock Shares at Mar. 30, 2019 | 378 | 70 | |||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Mar. 30, 2019 | 4,350 | 13,012 | 4 | $ (3,988) | $ 38 | $ 7 | |||
Balance at beginning of quarter, Treasury Stock shares at Mar. 30, 2019 | 83 | ||||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Mar. 30, 2019 | 135 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | (11) | $ (42) | |||||||
Net income attributable to Tyson | 676 | 676 | |||||||
Dividends | (135) | $ (110) | $ (25) | ||||||
Other comprehensive income (loss) | (10) | (10) | |||||||
Purchase of Class A common stock, shares | 1 | 1 | |||||||
Purchase of Class A common stock | $ (79) | ||||||||
Stock-based compensation, shares | (1) | ||||||||
Net income attributable to noncontrolling interests | 5 | (5) | |||||||
Business combination and other | 73 | ||||||||
Balance at end of quarter, Common Stock Shares at Jun. 29, 2019 | 378 | 70 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Jun. 29, 2019 | $ 13,928 | $ 4,361 | $ 13,553 | $ (6) | $ (4,025) | $ 13,928 | $ 38 | $ 7 | |
Balance at end of quarter, Treasury Stock shares at Jun. 29, 2019 | 83 | 83 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Jun. 29, 2019 | $ 213 | $ 213 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance at end of quarter, Total Shareholders' Equity | $ 14,141 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 1,663 | $ 2,490 |
Depreciation and amortization | 809 | 697 |
Deferred income taxes | 43 | (920) |
Other, net | 41 | 160 |
Net changes in operating assets and liabilities | 1,021 | 503 |
Cash Provided by Operating Activities | 1,535 | 1,924 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (971) | (887) |
Purchases of marketable securities | (47) | (28) |
Proceeds from sale of marketable securities | 46 | 27 |
Acquisitions, net of cash acquired | (2,461) | (608) |
Proceeds from sale of business | 0 | 125 |
Other, net | 98 | (52) |
Cash Used for Investing Activities | (3,335) | (1,423) |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of debt | 4,619 | 250 |
Repayments of Debt and Lease Obligation | 2,179 | 554 |
Borrowings on revolving credit facility | 335 | 1,755 |
Repayments of Long-term Lines of Credit | 335 | 1,725 |
Proceeds from issuance of commercial paper | 13,060 | 16,549 |
Repayments of Commercial Paper | 12,970 | 16,327 |
Purchases of Tyson Class A common stock | (225) | (367) |
Dividends | (403) | (324) |
Stock options exercised | 60 | 97 |
Other, net | (30) | (1) |
Cash Provided by (Used for) Financing Activities | 1,932 | (647) |
Effect of Exchange Rate Changes on Cash | 4 | (2) |
Increase (Decrease) in Cash and Cash Equivalents | 136 | (148) |
Cash and Cash Equivalents at Beginning of Year | 270 | 318 |
Cash and Cash Equivalents at End of Period | $ 406 | $ 170 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Jun. 29, 2019 | |
Policy Text Block [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Basis of Presentation The consolidated condensed financial statements are unaudited and have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations of the United States Securities and Exchange Commission. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 29, 2018 . 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 June 29, 2019 , and the results of operations for the three and nine months ended June 29, 2019 , and June 30, 2018 . 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. Revenue Recognition We recognize revenue mainly through consumer products retail, foodservice, international, industrial and other distribution channels. Our revenues primarily result from contracts with customers and are generally short term in nature with the delivery of product as the single performance obligation. We recognize revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred to our customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. We elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than an additional promised service. Our contracts are generally less than one year, and therefore we recognize costs paid to third party brokers to obtain contracts as expenses. Additionally, items that are not material in the context of the contract are recognized as expense. Any taxes collected on behalf of government authorities are excluded from net revenues. Revenue is measured by the transaction price, which is defined as the amount of consideration we expect to receive in exchange for providing goods to customers. The transaction price is adjusted for estimates of known or expected variable consideration, which includes consumer incentives, trade promotions, and allowances, such as coupons, discounts, rebates, volume-based incentives, cooperative advertising, and other programs. Variable consideration related to these programs is recorded as a reduction to revenue based on amounts we expect to pay. We base these estimates on current performance, historical utilization, and projected redemption rates of each program. We review and update these estimates regularly until the incentives or product returns are realized and the impact of any adjustments are recognized in the period the adjustments are identified. In many cases, key sales terms such as pricing and quantities ordered are established on a regular basis such that most customer arrangements and related incentives have a duration of less than one year. Amounts billed and due from customers are short term in nature and are classified as receivables since payments are unconditional and only the passage of time is required before payments are due. Additionally, we do not grant payment financing terms greater than one year. Recently Issued Accounting Pronouncements In August 2017, the Financial Accounting Standards Board ("FASB") issued guidance that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components excluded from the assessment. Some of the modifications include the ineffectiveness of derivative gain/loss in highly effective cash flow hedges to be recorded in Other Comprehensive Income, alignment of the recognition and presentation of the effects related to the hedging instrument and hedged item in the financial statements, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging on financial statement lines for components excluded from the assessment. The amendment also simplifies the application of hedge accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. Upon adoption, we do not expect this guidance will have a material impact on our consolidated financial statements. In March 2017, the FASB issued guidance that shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements. In June 2016, the FASB issued guidance that provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. Early adoption is permitted for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. The application of the guidance requires various transition methods depending on the specific amendment. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements. In February 2016, the FASB issued guidance that created new accounting and reporting guidelines for leasing arrangements. The guidance requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The guidance also requires qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective method should be applied. While we are still evaluating the impact this guidance will have on our consolidated financial statements and related disclosures, we have completed our initial scoping reviews and have made progress in our assessment phase as we continue to identify our leasing processes that will be impacted by the new standard. We have also made progress in developing the policy elections we will make upon adoption and we are implementing software to meet the reporting requirements of this standard. We expect our financial statement disclosures will be expanded to present additional details of our leasing arrangements. Although we expect the impacts to be material, at this time we are unable to reasonably estimate the expected increase in assets and liabilities on our consolidated balance sheets or the impacts to our consolidated financial statements upon adoption. Changes in Accounting Principles In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. The prospective transition method should be applied to all qualified implementation costs incurred after the adoption date. We elected to early adopt this guidance beginning in the first quarter of fiscal 2019, and it did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued guidance that clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. 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 prospective transition method should be applied to awards modified on or after the adoption date. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In March 2017, the FASB issued guidance that changes the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost will be included within the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost will be presented separately outside of operating income. Additionally, only the service cost component will be eligible for capitalization when applicable. 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 retrospective transition method should be applied for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement, and the prospective transition method should be applied, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The guidance includes a practical expedient allowing entities to estimate amounts for comparative periods using the information previously disclosed in the pension and other postretirement benefit plan footnote. We adopted this guidance in the first quarter of fiscal 2019 on a retrospective basis using the practical expedient and it did not have a material impact on our consolidated financial statements. The following reconciliations provide the effect of the reclassification of the net periodic benefit cost from operating expenses to other (income) expense in our consolidated statements of income for the three and nine months ended June 30, 2018 (in millions): Three Months Ended June 30, 2018: As Previously Reported Adjustments As Recast Cost of Sales $ 8,745 $ 7 $ 8,752 Selling, General and Administrative $ 504 $ (2 ) $ 502 Operating Income $ 802 $ (5 ) $ 797 Other (Income) Expense $ 79 $ (5 ) $ 74 Nine Months Ended June 30, 2018: As Previously Reported Adjustments As Recast Cost of Sales $ 26,276 $ 20 $ 26,296 Selling, General and Administrative $ 1,550 $ (6 ) $ 1,544 Operating Income $ 2,227 $ (14 ) $ 2,213 Other (Income) Expense $ 239 $ (14 ) $ 225 In November 2016, the FASB issued guidance that requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. 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 retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued guidance that requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. 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 modified retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued guidance that aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. 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 retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued guidance that requires most equity investments be measured at fair value, with subsequent other 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. It should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, unless equity securities do not have readily determinable fair values, in which case the amendments should be applied prospectively. We adopted this guidance in the first quarter of fiscal 2019. We did not use prospective amendments for any investments and adoption did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued guidance that changes 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, including disaggregated revenue disclosures. 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. We adopted this guidance in the first quarter of fiscal 2019 using the modified retrospective transition method. Prior periods were not adjusted and, based on our implementation assessment, no cumulative-effect adjustment was made to the opening balance of retained earnings. The adoption of this standard did not have a material impact on our consolidated financial statements. For further description of our revenue recognition policy refer to the Revenue Recognition section above and for disaggregated revenue information refer to Part I, Item 1, Notes to the Consolidated Condensed Financial Statements, Note 16: Segment Reporting. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Jun. 29, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | ACQUISITIONS AND DISPOSITIONS Acquisitions On June 3, 2019, we acquired the Thai and European operations of BRF S.A. ("the Thai and European operations") for $341 million , net of cash acquired, subject to certain adjustments, as a part of our growth strategy to expand offerings of value-added protein in global markets. Its results, subsequent to the acquisition closing, are included in Other for segment presentation. Certain estimated values for the acquisition, including goodwill, intangible assets, property, plant and equipment, noncontrolling interest, and deferred income taxes are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The preliminary purchase price allocation includes $304 million of net working capital, including $56 million of cash acquired, $106 million of Property, Plant and Equipment, $67 million of Goodwill, $34 million of Intangible Assets, $24 million of Other Liabilities, $15 million of Deferred Income Taxes and $75 million of Noncontrolling Interest. Intangible Assets primarily included customer relationships which will be amortized over a life of 11 years. We do not expect the goodwill to be deductible for U.S. income tax purposes. On November 30, 2018, we acquired all of the outstanding common stock of MFG (USA) Holdings, Inc. and McKey Luxembourg Holdings S.à.r.l. (“Keystone Foods”) from Marfrig Global Foods ("Marfrig") for $2.3 billion in cash, subject to certain adjustments. We initially funded the acquisition with existing cash on hand, net proceeds from the issuance of a 364-day term loan and borrowings under our commercial paper program. In February 2019, we used the net proceeds from the issuance of senior notes to repay amounts outstanding under the 364-day term loan and commercial paper obligations. Keystone Foods' domestic and international results, subsequent to the acquisition closing, are included in our Chicken segment and Other, respectively. The following table summarizes the preliminary purchase price allocation for Keystone Foods and fair values of the assets acquired and liabilities assumed at the acquisition date, which is subject to change pending finalization of working capital adjustments. Certain estimated values for the acquisition, including goodwill, intangible assets, inventory, property, plant and equipment, and deferred income taxes, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The purchase price was allocated based on information currently available as of the acquisition date. During the third quarter of fiscal 2019, we recorded measurement period adjustments which increased goodwill by $4 million , consisting of a reduction to Property, Plant and Equipment of $4 million , an increase to Accounts Receivable of $3 million , an increase to Deferred Income Taxes of $2 million , an increase to Accounts Payable of $2 million and a reduction to Other Current Liabilities of $1 million . in millions Cash and cash equivalents $ 186 Accounts receivable 106 Inventories 257 Other current assets 34 Property, Plant and Equipment 676 Goodwill 1,182 Intangible Assets 659 Other Assets 28 Current debt (73 ) Accounts payable (208 ) Other current liabilities (99 ) Long-Term Debt (113 ) Deferred Income Taxes (178 ) Other Liabilities (8 ) Noncontrolling Interests (122 ) Net assets acquired $ 2,327 The fair value of identifiable intangible assets primarily consisted of customer relationships with a weighted average life of 25 years. As a result of the acquisition, we recognized a total of $1,182 million of goodwill. The purchase price was assigned to assets acquired and liabilities assumed based on their preliminary estimated fair values as of the date of acquisition, and any excess was allocated to goodwill, as shown in the table above. Goodwill represents the value we expect to achieve through the implementation of operational synergies and growth opportunities. The preliminary allocation of goodwill to our segments was $825 million and $357 million to our Chicken segment and Other, respectively. We do not expect the goodwill to be deductible for U.S. income tax purposes. We used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow, relief-from-royalty, market pricing multiple and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates, EBITDA multiples, and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. The acquisition of Keystone Foods was accounted for using the acquisition method of accounting and, consequently, the results of operations are reported in our consolidated financial statements from the date of acquisition. Keystone Foods sales from the date of acquisition through June 29, 2019 were $1,362 million and its results for that period were insignificant to our overall Consolidated Condensed Statements of Income. On August 20, 2018, we acquired the assets of American Proteins, Inc. and AMPRO Products, Inc. ("American Proteins"), a poultry rendering and blending operation for $864 million , subject to net working capital adjustments, as part of our strategic expansion and sustainability initiatives. Its results, subsequent to the acquisition closing, are included in our Chicken segment. Certain estimated values for the acquisition, including goodwill, intangible assets, and property, plant and equipment, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The preliminary purchase price allocation includes $56 million of net working capital, $152 million of Property, Plant and Equipment, $411 million of Intangible Assets, $258 million of Goodwill, and $13 million of Other liabilities. Intangible Assets primarily included $358 million assigned to supply network which will be amortized over 14 years and $51 million assigned to customer relationships which will be amortized over a weighted average of 12 years. All of the goodwill acquired is amortizable for tax purposes. During the second quarter of fiscal 2019, we settled the net-working capital purchase price adjustment reducing the purchase price by $2 million and recorded measurement period adjustments which increased goodwill by $16 million , including a reduction to net working capital of $15 million and a reduction to Property, Plant and Equipment of $3 million . On June 4, 2018, we acquired Tecumseh Poultry, LLC ("Tecumseh"), a vertically integrated value-added protein business for $382 million , net of cash acquired, as part of our strategy to grow in the high quality, branded poultry market. Its results, subsequent to the acquisition closing, are included in our Chicken segment. The purchase price allocation included $13 million of net working capital, including $1 million of cash acquired, $49 million of Property, Plant and Equipment, $227 million of Intangible Assets and $94 million of Goodwill. Intangible Assets included $193 million assigned to brands and trademarks which will be amortized over 20 years. All of the goodwill acquired is amortizable for tax purposes. On November 10, 2017, we acquired Original Philly Holdings, Inc. ("Original Philly"), a value-added protein business, for $226 million , net of cash acquired, as part of our strategic expansion initiative. Its results, subsequent to the acquisition closing, are included in our Prepared Foods and Chicken segments. The purchase price allocation included $21 million of net working capital, including $10 million of cash acquired, $13 million of Property, Plant and Equipment, $90 million of Intangible Assets and $111 million of Goodwill. We completed the allocation of goodwill to our segments in the second quarter of fiscal 2018 using the acquisition method approach. This resulted in $82 million and $29 million of goodwill allocated to our Prepared Foods and Chicken segments, respectively. All of the goodwill acquired is amortizable for tax purposes. Dispositions On April 24, 2017, we announced our intent to sell three non-protein businesses as part of our strategic focus on protein brands. These businesses, which were all part of our Prepared Foods segment, included Sara Lee® Frozen Bakery, Kettle and Van’s® and produce items such as frozen desserts, waffles, snack bars, and soups, sauces and sides. The sale also included the Chef Pierre®, Bistro Collection®, Kettle Collection™, and Van’s® brands, a license to use the Sara Lee® brand in various channels, as well as our Tarboro, North Carolina, Fort Worth, Texas, and Traverse City, Michigan, prepared foods facilities. We completed the sale of our Kettle business on December 30, 2017, and received net proceeds of $125 million including a working capital adjustment. As a result of the sale, we recorded a pretax gain of $22 million , which is reflected in Cost of Sales in our Consolidated Condensed Statement of Income for the nine months ended June 30, 2018 . We utilized the net proceeds to pay down term loan debt. We completed the sale of our Sara Lee® Frozen Bakery and Van’s® businesses on July 30, 2018 for $623 million including a working capital adjustment. Prior to the sale, we recorded pretax impairment charges totaling $101 million for the nine months ended June 30, 2018, due to revised estimates of the businesses' fair value based on current expected net sales proceeds. The impairment charges were recorded in Cost of Sales in our Consolidated Condensed Statement of Income, and primarily consisted of goodwill previously classified within assets held for sale. In the first quarter of fiscal 2018, we made the decision to sell TNT Crust, our pizza crust business, which was also included in our Prepared Foods segment, as part of our strategic focus on protein brands. We completed the sale of this business on September 2, 2018, for $57 million net of adjustments. |
Inventories
Inventories | 9 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Processed products, livestock and supplies and other are valued at the lower of cost and net realizable value. 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 June 29, 2019 , the cost of inventories was determined by either the first-in, first-out ("FIFO") method or the weighted-average method, which is consistent with the methods used at September 29, 2018 . The following table reflects the major components of inventory (in millions): June 29, 2019 September 29, 2018 Processed products $ 2,438 $ 1,981 Livestock 1,140 1,006 Supplies and other 571 526 Total inventory $ 4,149 $ 3,513 |
Property, Plant And Equipment
Property, Plant And Equipment | 9 Months Ended |
Jun. 29, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant And Equipment | PROPERTY, PLANT AND EQUIPMENT The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): June 29, 2019 September 29, 2018 Land $ 184 $ 154 Buildings and leasehold improvements 4,662 4,115 Machinery and equipment 8,584 7,720 Land improvements and other 374 357 Buildings and equipment under construction 812 689 14,616 13,035 Less accumulated depreciation 7,345 6,866 Net property, plant and equipment $ 7,271 $ 6,169 |
Restructuring and Related Charg
Restructuring and Related Charges | 9 Months Ended |
Jun. 29, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | RESTRUCTURING AND RELATED CHARGES In the fourth quarter of fiscal 2017, our Board of Directors approved a multi-year restructuring program (the “Financial Fitness Program”), which is expected to contribute to the Company’s overall strategy of financial fitness through increased operational effectiveness and overhead reduction. The Company currently anticipates the Financial Fitness Program will result in cumulative pretax charges, once implemented, of approximately $253 million which consist primarily of severance and employee related costs, impairments and accelerated depreciation of technology assets, incremental costs to implement new technology, and contract termination costs. Through June 29, 2019 , $240 million of the estimated $253 million total pretax charges has been recognized. The majority of the remaining estimated charges relate to incremental costs to implement new technology. We recognized restructuring and related charges of $15 million and $31 million for the three and nine months ended June 29, 2019 , respectively, and $14 million and $45 million for the three and nine months ended June 30, 2018 , respectively, associated with the Financial Fitness Program. These costs were recorded in Selling, General and Administrative in our Consolidated Condensed Statements of Income and represent incremental costs to implement new technology and accelerated depreciation of technology assets. Our restructuring liability was $1 million and $10 million at June 29, 2019 , and September 29, 2018 , respectively. The change in the restructuring liability was due to payments of $9 million during the nine months ended June 29, 2019 . |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Jun. 29, 2019 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | OTHER CURRENT LIABILITIES Other current liabilities are as follows (in millions): June 29, 2019 September 29, 2018 Accrued salaries, wages and benefits $ 587 $ 549 Other 927 877 Total other current liabilities $ 1,514 $ 1,426 |
Debt
Debt | 9 Months Ended |
Jun. 29, 2019 | |
Debt Instruments [Abstract] | |
Debt | DEBT The major components of debt are as follows (in millions): June 29, 2019 September 29, 2018 Revolving credit facility $ — $ — Commercial paper 695 605 Senior notes: Notes due May 2019 ("2019 Notes") — 300 2.65% Notes due August 2019 1,000 1,000 Notes due June 2020 (3.07% at 6/29/2019) 350 350 Notes due August 2020 (2.97% at 6/29/2019) 400 400 4.10% Notes due September 2020 280 281 2.25% Notes due August 2021 500 500 4.50% Senior notes due June 2022 1,000 1,000 3.90% Senior notes due September 2023 400 400 3.95% Notes due August 2024 1,250 1,250 4.00% Notes due March 2026 ("2026 Notes") 800 — 3.55% Notes due June 2027 1,350 1,350 7.00% Notes due January 2028 18 18 4.35% Notes due March 2029 ("2029 Notes") 1,000 — 6.13% Notes due November 2032 161 161 4.88% Notes due August 2034 500 500 5.15% Notes due August 2044 500 500 4.55% Notes due June 2047 750 750 5.10% Notes due September 2048 ("2048 Notes") 1,500 500 Discount on senior notes (49 ) (15 ) Other 248 73 Unamortized debt issuance costs (67 ) (50 ) Total debt 12,586 9,873 Less current debt 2,125 1,911 Total long-term debt $ 10,461 $ 7,962 Revolving Credit Facility and Letters of Credit We have a $1.75 billion revolving credit facility that supports short-term funding needs and serves as a backstop to our commercial paper program which will mature and the commitments thereunder will terminate in March 2023. Amounts available for borrowing under this facility totaled $1.75 billion at June 29, 2019 , before deducting amounts to backstop our commercial paper program. At June 29, 2019 , we had no outstanding borrowings and no outstanding letters of credit issued under this facility. At June 29, 2019 , we had $113 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 and workers’ compensation insurance programs and other legal obligations. In the future, if any of our subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall be required to guarantee the indebtedness, obligations and liabilities under this facility. Commercial Paper Program We have a commercial paper program under which we may issue unsecured short-term promissory notes ("commercial paper") up to an aggregate maximum principal amount of $1 billion as of June 29, 2019 . As of June 29, 2019 , we had $695 million of commercial paper outstanding at a weighted average interest rate of 2.64% with maturities of less than 15 days . 2019 Notes During the third quarter of fiscal 2019, we extinguished the $300 million outstanding balance of the Senior Notes due May 2019 using cash on hand. 2026/2029/2048 Notes In February 2019, we issued senior unsecured notes with an aggregate principal amount of $1.8 billion , consisting of $800 million due March 2026 and $1 billion due March 2029. Additionally, we reopened the 2048 Notes issuing an additional $1 billion , bringing the aggregate principal amount outstanding on the 2048 Notes to $1.5 billion . The net proceeds from the issuances were used to repay amounts outstanding under our 364-Day Term Loan Agreement and commercial paper obligations and to fund the acquisition of the Thai and European operations. The 2026 Notes carry a fixed interest rate of 4.00% and the 2029 Notes carry a fixed interest rate of 4.35% . Interest payments on the 2026 and 2029 Notes are due semi-annually on March 1 and September 1. After the original issue discounts of $36 million , we received net proceeds of $2,764 million and incurred debt issuance costs of $26 million related to the issuances. 364-Day Term Loan In November 2018, as part of the financing for the Keystone Foods acquisition, we borrowed $1.8 billion under an unsecured term loan facility, which was due November 2019. The interest rate was set based on the selected LIBOR interest period plus 1.125% . In the second quarter of fiscal 2019, we extinguished the $1.8 billion outstanding balance using funds borrowed under the 2026 and 2029 Notes and funds borrowed under the reopening of the 2048 Notes. Debt Covenants Our revolving credit facility contains affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; 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 June 29, 2019 . |
Equity
Equity | 9 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Share Repurchases As of June 29, 2019 , 20.7 million shares remained available 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 Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Shares Dollars Shares Dollars Shares Dollars Shares Dollars Shares repurchased: Under share repurchase program 0.6 $ 50 1.8 $ 120 2.3 $ 150 4.1 $ 300 To fund certain obligations under equity compensation plans 0.4 29 0.1 10 1.1 75 0.9 67 Total share repurchases 1.0 $ 79 1.9 $ 130 3.4 $ 225 5.0 $ 367 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rate was 6.0% and 25.0% for the third quarter of fiscal 2019 and 2018, respectively, and 15.4% and (25.3)% for the first nine months of fiscal 2019 and 2018, respectively. The effective tax rates for the third quarter and first nine months of fiscal 2019 and 2018 were impacted by state taxes. The reversal of tax reserves due to third quarter expirations of federal, state and foreign statutes of limitations reduced the effective tax rate by 17.3% and 6.4% in the third quarter and first nine months of fiscal 2019, respectively. The effective tax rates for the third quarter and first nine months of fiscal 2018 were impacted by the domestic production deduction. Additionally, the effective tax rate for the first nine months of fiscal 2018 was impacted by a 50.5% income tax benefit for the remeasurement of deferred income taxes at newly enacted tax rates as a result of the 2017 Tax Cuts and Jobs Act (the “Tax Act”) and a 1.3% income tax benefit for excess tax benefits associated with share-based payments to employees. Under the Tax Act, the statutory rate is 21% and 24.5% for fiscal 2019 and 2018, respectively. Unrecognized tax benefits were $176 million and $308 million , at June 29, 2019 and September 29, 2018 , respectively. This change is primarily due to the expiration of statutes of limitations during the third quarter of fiscal 2019. We do not expect material changes to our unrecognized tax benefits during the next twelve months. |
Other Income And Charges
Other Income And Charges | 9 Months Ended |
Jun. 29, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income And Charges | OTHER INCOME AND CHARGES During the third quarter of fiscal 2019, we sold an investment for $79 million in net proceeds resulting in a pretax gain of $55 million , which was recorded in the Consolidated Condensed Statements of Income in Other, net. During the first nine months of fiscal 2019 , we recognized $21 million of net periodic pension and postretirement benefit cost, excluding the service cost component, and recorded the amount in the Consolidated Condensed Statements of Income in Other, net. Additionally, we recognized $17 million of equity earnings in joint ventures, which was also recorded in the Consolidated Condensed Statements of Income in Other, net. During the first nine months of fiscal 2018 , we recognized a one-time cash bonus to our hourly frontline employees of $109 million using incremental cash savings from the Tax Act, which was predominantly recorded in the Consolidated Condensed Statements of Income in Cost of Sales, and $14 million of equity earnings in joint ventures, which was recorded in the Consolidated Condensed Statements of Income in Other, net. Additionally, in accordance with recently adopted accounting guidance, we have retrospectively recognized $5 million and $14 million of net periodic pension and postretirement benefit credit, excluding the service cost component, for the three and nine months ended June 30, 2018 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
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 Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Numerator: Net income $ 681 $ 542 $ 1,663 $ 2,490 Less: Net income attributable to noncontrolling interests 5 1 10 3 Net income attributable to Tyson 676 541 1,653 2,487 Less dividends declared: Class A 110 88 353 289 Class B 25 19 76 61 Undistributed earnings $ 541 $ 434 $ 1,224 $ 2,137 Class A undistributed earnings $ 446 $ 358 $ 1,008 $ 1,762 Class B undistributed earnings 95 76 216 375 Total undistributed earnings $ 541 $ 434 $ 1,224 $ 2,137 Denominator: Denominator for basic earnings per share: Class A weighted average shares 293 295 293 296 Class B weighted average shares, and shares under the if-converted method for diluted earnings per share 70 70 70 70 Effect of dilutive securities: Stock options, restricted stock and performance units 4 4 3 4 Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions 367 369 366 370 Net income per share attributable to Tyson: Class A basic $ 1.90 $ 1.52 $ 4.64 $ 6.94 Class B basic $ 1.71 $ 1.37 $ 4.17 $ 6.24 Diluted $ 1.84 $ 1.47 $ 4.51 $ 6.72 Dividends Declared Per Share: Class A $ 0.375 $ 0.300 $ 1.200 $ 0.975 Class B $ 0.338 $ 0.270 $ 1.081 $ 0.878 Approximately 1 million and 3 million of our stock-based compensation shares were antidilutive for the three and nine months ended June 29, 2019 , respectively. Approximately 1 million of our stock-based compensation shares were antidilutive for the three and nine months ended June 30, 2018 . 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 Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 June 29, 2019 . We had the following aggregated outstanding notional amounts related to our derivative financial instruments: in millions, except soy meal tons Metric June 29, 2019 September 29, 2018 Commodity: Corn Bushels 112 112 Soy Meal Tons 817,400 651,700 Live Cattle Pounds 162 105 Lean Hogs Pounds 501 39 Foreign Currency United States dollar $ 212 $ 89 Interest Rate Swaps Average monthly debt $ 400 $ 400 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 (e.g., 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 (e.g., grains), interest rate swaps and locks, and certain foreign exchange forward contracts. • Fair Value Hedges – include certain commodity forward contracts of firm commitments (e.g., 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 as well as interest rates related to our variable rate debt. 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 and nine months ended June 29, 2019 , and June 30, 2018 . As of June 29, 2019 , we have net pretax gains of $2 million for our commodity contracts and $3 million of pretax losses related to our interest rate swap hedges, expected to be reclassified into earnings within the next 12 months. Additionally, we have $19 million of realized losses related to treasury rate locks in connection with our 364-day term loan extinguished during the second quarter of fiscal 2019, which will be reclassified to earnings over the lives of the 2026, 2029 and 2048 Notes. During the nine months ended June 29, 2019 , and June 30, 2018 , we did not reclassify significant pretax gains or losses into earnings as a result of the discontinuance of cash flow hedges. The following tables set 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 June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Cash flow hedge – derivatives designated as hedging instruments: Commodity contracts $ 5 $ (13 ) Cost of Sales $ (3 ) $ — Interest rate hedges (1 ) — Interest expense (1 ) — Total $ 4 $ (13 ) $ (4 ) $ — Gain (Loss) Consolidated Condensed Statements of Income Classification Gain (Loss) Nine Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Cash flow hedge – derivatives designated as hedging instruments: Commodity contracts $ (2 ) $ (13 ) Cost of sales $ (15 ) $ (3 ) Interest rate hedges (24 ) — Interest expense (1 ) — Total $ (26 ) $ (13 ) $ (16 ) $ (3 ) Fair Value Hedges We designate certain derivative contracts as fair value hedges of firm commitments to purchase livestock for harvest. 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 (e.g., 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 Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Gain (Loss) on forwards Cost of Sales $ 8 $ 11 $ 8 $ 5 Gain (Loss) on purchase contract Cost of Sales (8 ) (11 ) (8 ) (5 ) Ineffectiveness related to fair value hedges was insignificant for the three and nine months ended June 29, 2019 , and June 30, 2018 . 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): Gain (Loss) Recognized in Earnings Gain (Loss) Recognized in Earnings Consolidated Condensed Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Derivatives not designated as hedging instruments: Commodity contracts Sales $ (42 ) $ 21 $ (28 ) $ — Commodity contracts Cost of Sales 97 (58 ) 76 (12 ) Foreign exchange contracts Other Income/Expense 4 (1 ) 7 (3 ) Total $ 59 $ (38 ) $ 55 $ (15 ) The fair value of all outstanding derivative instruments in the Consolidated Condensed Balance Sheets are included in Note 13: Fair Value Measurements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
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): June 29, 2019 Level 1 Level 2 Level 3 Netting (a) Total Other Current Assets: Derivative financial instruments: Designated as hedges $ — $ 56 $ — $ (30 ) $ 26 Undesignated — 92 — (45 ) 47 Available-for-sale securities: Current — 1 — — 1 Other Assets: Available-for-sale securities: Non-current — 52 49 — 101 Deferred compensation assets 7 311 — — 318 Total assets $ 7 $ 512 $ 49 $ (75 ) $ 493 Other Current Liabilities: Derivative financial instruments: Designated as hedges $ — $ 9 $ — $ (5 ) $ 4 Undesignated — 65 — (61 ) 4 Total liabilities $ — $ 74 $ — $ (66 ) $ 8 September 29, 2018 Level 1 Level 2 Level 3 Netting (a) Total Other Current Assets: Derivative financial instruments: Designated as hedges $ — $ 2 $ — $ (1 ) $ 1 Undesignated — 44 — (19 ) 25 Available-for-sale securities: Current — 1 — — 1 Other Assets: Available-for-sale securities: Non-current — 46 51 — 97 Deferred compensation assets 21 295 — — 316 Total assets $ 21 $ 388 $ 51 $ (20 ) $ 440 Other Current Liabilities: Derivative financial instruments: Designated as hedges $ — $ 8 $ — $ (8 ) $ — Undesignated — 35 — (30 ) 5 Total liabilities $ — $ 43 $ — $ (38 ) $ 5 (a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at June 29, 2019 , and September 29, 2018 , we had $9 million and $18 million , respectively, of net cash collateral with various counterparties where master netting arrangements exist. The following table provides a reconciliation between the beginning and ending balance of marketable debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): Nine Months Ended June 29, 2019 June 30, 2018 Balance at beginning of year $ 51 $ 51 Total realized and unrealized gains (losses): Included in earnings — — Included in other comprehensive income (loss) 1 — Purchases 12 14 Issuances — — Settlements (15 ) (12 ) Balance at end of period $ 49 $ 53 Total gains (losses) for the nine-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period $ — $ — The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Derivative Assets and Liabilities: Our derivative financial instruments primarily include exchange-traded and over-the-counter contracts which are further described in Note 12: Derivative Financial Instruments. We record our derivative financial instruments at fair value using quoted market prices, adjusted where necessary for credit and non-performance risk and internal models that use readily observable market inputs as their basis, including current and forward market prices and rates. 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 32 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): June 29, 2019 September 29, 2018 Amortized Fair Unrealized Amortized Fair Unrealized Available-for-sale securities: Debt securities: U.S. treasury and agency $ 52 $ 53 $ 1 $ 48 $ 47 $ (1 ) Corporate and asset-backed 49 49 — 52 51 (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 will more likely than not 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 and no other than temporary losses in OCI for the three and nine months ended June 29, 2019 , and June 30, 2018 . 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 nine months ended June 29, 2019 . In the nine months ended June 30, 2018, we recorded $101 million of impairment charges related to the expected sale of non-protein businesses held for sale, due to revised estimates of the businesses' fair value based on current expected net sales proceeds. The impairment charges were recorded in Cost of Sales in our Consolidated Condensed Statement of Income, and primarily consisted of Goodwill previously classified within Assets held for sale. Our valuation included unobservable Level 3 inputs and was based on expected sales proceeds from a competitive bidding process and ongoing discussions with potential buyers. 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): June 29, 2019 September 29, 2018 Fair Value Carrying Value Fair Value Carrying Value Total debt $ 13,294 $ 12,586 $ 9,775 $ 9,873 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Jun. 29, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The components of the net periodic cost for the pension and postretirement benefit plans for the three and nine months ended June 29, 2019 , and June 30, 2018 , are as follows (in millions): Pension Plans Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Service cost $ — $ 1 $ 1 $ 5 Interest cost 16 16 48 48 Expected return on plan assets (14 ) (16 ) (43 ) (47 ) Amortization of: Net actuarial loss — 1 1 3 Prior service cost 1 — 1 — Settlement loss — — 19 — Net periodic cost $ 3 $ 2 $ 27 $ 9 Postretirement Benefit Plans Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Interest cost $ — $ — $ 1 $ 1 Amortization of prior service credit (1 ) (6 ) (6 ) (18 ) Net periodic credit $ (1 ) $ (6 ) $ (5 ) $ (17 ) We had no contributions to our pension plans for the three months ended June 29, 2019 and contributed $9 million for the three months ended June 30, 2018 . We contributed $12 million and $27 million to our pension plans for the nine months ended June 29, 2019 and June 30, 2018 , respectively. We expect to contribute an additional $3 million during the remainder of fiscal 2019 . 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 2019 may differ from the current estimate. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | |
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 Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Derivatives accounted for as cash flow hedges: (Gain) loss reclassified to interest expense $ 1 $ — $ 1 $ — $ — $ — $ 1 $ — $ 1 $ — $ — $ — (Gain) loss reclassified to cost of sales 3 (2 ) 1 — — — 15 (4 ) 11 3 (1 ) 2 Unrealized gain (loss) 4 (2 ) 2 (13 ) 4 (9 ) (26 ) 6 (20 ) (13 ) 4 (9 ) Investments: Unrealized gain (loss) 1 — 1 (1 ) — (1 ) 3 (1 ) 2 (1 ) — (1 ) Currency translation: Translation adjustment (15 ) — (15 ) (33 ) 1 (32 ) 19 (1 ) 18 (27 ) 1 (26 ) Translation loss reclassified to cost of sales — — — 7 — 7 — — — 7 — 7 Postretirement benefits: Unrealized gain (loss) — — — (5 ) 2 (3 ) (28 ) 8 (20 ) (9 ) 2 (7 ) Pension settlement reclassified to other (income) expense — — — — — — 23 (6 ) 17 — — — Total other comprehensive income (loss) $ (6 ) $ (4 ) $ (10 ) $ (45 ) $ 7 $ (38 ) $ 7 $ 2 $ 9 $ (40 ) $ 6 $ (34 ) |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We operate in four reportable segments: Beef, Pork, Chicken, and Prepared Foods. We measure segment profit as operating income (loss). Other primarily includes our foreign operations in Australia, China, South Korea, Malaysia, the Netherlands, Thailand and the United Kingdom, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC. Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to consumer products and 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 consumer products and 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. Chicken: Chicken includes our domestic operations related to raising and processing live chickens into, and purchasing raw materials for, fresh, frozen and value-added chicken products, as well as sales from allied products. Our value-added chicken products primarily include breaded chicken strips, nuggets, patties, tenders, wings and other ready-to-fix or fully cooked chicken parts. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, 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. 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®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island®. Products primarily include ready-to-eat sandwiches, sandwich components such as flame-grilled hamburgers and Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, 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 and corporate overhead related to Tyson New Ventures, LLC, which are included in Other. Information on segments and a reconciliation to income before income taxes are as follows (in millions): Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Sales: Beef $ 4,157 $ 3,993 $ 11,967 $ 11,560 Pork 1,323 1,197 3,674 3,745 Chicken 3,331 2,973 9,853 8,929 Prepared Foods 2,089 2,132 6,265 6,571 Other 356 75 776 245 Intersegment (371 ) (319 ) (1,014 ) (997 ) Total sales $ 10,885 $ 10,051 $ 31,521 $ 30,053 Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Operating income (loss): Beef $ 270 $ 318 $ 731 $ 666 Pork 42 67 237 285 Chicken 230 189 531 (a) 692 Prepared Foods 229 238 739 613 (b) Other 10 (c) (15 ) (c) (15 ) (c) (43 ) (c) Total operating income 781 797 2,223 2,213 Total other expense 57 74 258 225 Income before income taxes $ 724 $ 723 $ 1,965 $ 1,988 (a) Chicken operating income includes $13 million in Keystone Foods purchase accounting and acquisition related costs for the nine months ended June 29, 2019 . (b) Prepared Foods operating income includes a $79 million impairment net of a realized gain associated with the divestiture of non-protein businesses for the nine months ended June 30, 2018. (c) Other operating results include $24 million in Keystone Foods purchase accounting and acquisition related costs for the nine months ended June 29, 2019 , and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $10 million and $5 million for the three months ended June 29, 2019 , and June 30, 2018 , respectively, and $15 million and $13 million for the nine months ended June 29, 2019 , and June 30, 2018 , respectively. The Beef segment had sales of $111 million and $112 million in the third quarter of fiscal 2019 and 2018 , respectively, and sales of $301 million and $311 million in the first nine months of fiscal 2019 and 2018 , respectively, from transactions with other operating segments of the Company. The Pork segment had sales of $246 million and $188 million in the third quarter of fiscal 2019 and 2018 , respectively, and sales of $671 million and $620 million in the first nine months of fiscal 2019 and 2018 , respectively, from transactions with other operating segments of the Company. The Chicken segment had sales of $15 million and $19 million in the third quarter of fiscal 2019 and 2018 , respectively, and sales of $42 million and $66 million in the first nine months of fiscal 2019 and 2018 , 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. The following tables further disaggregate our sales to customers by major distribution channels (in millions): Three Months Ended June 29, 2019 Consumer Products (a) Foodservice (b) International (c) Industrial and Other (d) Intersegment Total Beef $ 1,966 $ 1,050 $ 648 $ 382 $ 111 $ 4,157 Pork 365 110 243 360 245 1,323 Chicken 1,369 1,330 177 440 15 3,331 Prepared Foods 1,178 823 26 62 — 2,089 Other — — 356 — — 356 Intersegment — — — — (371 ) (371 ) Total $ 4,878 $ 3,313 $ 1,450 $ 1,244 $ — $ 10,885 Nine Months Ended June 29, 2019 Consumer Products (a) Foodservice (b) International (c) Industrial and Other (d) Intersegment Total Beef $ 5,628 $ 3,124 $ 1,849 $ 1,065 $ 301 $ 11,967 Pork 1,036 294 678 995 671 3,674 Chicken 4,204 3,767 489 1,351 42 9,853 Prepared Foods 3,643 2,367 70 185 — 6,265 Other — — 776 — — 776 Intersegment — — — — (1,014 ) (1,014 ) Total $ 14,511 $ 9,552 $ 3,862 $ 3,596 $ — $ 31,521 (a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. (c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Commitments We guarantee obligations of certain outside third parties, consisting primarily of grower loans, which are substantially collateralized by the underlying assets. The remaining terms of the underlying obligations cover periods up to 10 years, and the maximum potential amount of future payments as of June 29, 2019 , was no t significant. 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 lease term. The remaining terms of the lease maturities cover periods over the next 10 years. The maximum potential amount of the residual value guarantees is $91 million , all of which 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 June 29, 2019 , and September 29, 2018 , 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 commitment associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets. The potential maximum commitment as of June 29, 2019 was approximately $300 million . The total receivables under these programs were $8 million and $6 million at June 29, 2019 and September 29, 2018 , respectively. 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 June 29, 2019 , and September 29, 2018 . 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 June 29, 2019 , the total amount under these types of arrangements totaled $698 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. Unless noted otherwise below, we 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. On September 2, 2016, Maplevale Farms, Inc., acting on its own behalf and a putative class of direct purchasers of poultry products, filed a class action complaint against us and certain of our poultry subsidiaries, as well as several other poultry processing companies, in the Northern District of Illinois. Subsequent to the filing of this initial complaint, additional lawsuits making similar claims on behalf of putative classes of direct and indirect purchasers were filed in the United States District Court for the Northern District of Illinois. The court consolidated the complaints, for pre-trial purposes, into actions on behalf of three different putative classes: direct purchasers, indirect purchasers/consumers and commercial/institutional indirect purchasers. The consolidated actions are styled In re Broiler Chicken Antitrust Litigation . Since the original filing, certain putative class members have opted out of the matter and are proceeding with individual direct actions making similar claims, and others may do so in the future. All opt out complaints have been filed in, or transferred to, the Northern District of Illinois and are proceeding on a coordinated pre-trial basis with the consolidated actions. The operative complaints, which have been amended throughout the litigation, allege, among other things, that beginning in January 2008 the defendants conspired and combined to fix, raise, maintain, and stabilize the price of broiler chickens in violation of United States antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs also allege that defendants “manipulated and artificially inflated a widely used Broiler price index, the Georgia Dock.” The plaintiffs further allege that the defendants concealed this conduct from the plaintiffs and the members of the putative classes. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees on behalf of the putative classes. Decisions on class certification and summary judgment motions likely to be filed by defendants are currently expected in late calendar year 2020 and early 2021. If necessary, trial will occur after rulings on class certification and any summary judgment motions. On April 26, 2019, the plaintiffs notified us that the U.S. Department of Justice (DOJ) Antitrust Division issued a grand jury subpoena to them requesting discovery produced by all parties in the civil case. On June 21, 2019, the DOJ filed a motion to intervene and sought a limited stay of discovery in the civil action, which the court granted in part. Subsequently, we received a grand jury subpoena from the DOJ seeking additional documents and information related to the chicken industry. We are fully cooperating with the DOJ’s request. The Commonwealth of Puerto Rico, on behalf of its citizens, has also initiated a civil lawsuit against us, certain of our subsidiaries, and several other poultry processing companies alleging activities in violation of the Puerto Rican antitrust laws. This lawsuit has been transferred to the Northern District of Illinois for coordinated pre-trial proceedings. On March 1, 2017, we received a civil investigative demand ("CID") from the Office of the Attorney General, Department of Legal Affairs, of the State of Florida. The CID requests information primarily related to possible anticompetitive conduct in connection with the Georgia Dock, a chicken products pricing index formerly published by the Georgia Department of Agriculture. We have been cooperating with the Attorney General’s office. In July 2019, the Attorney General issued a subpoena to the In re Broiler Chicken Antitrust Litigation plaintiffs requesting all information provided to the DOJ. On June 18, 2018, a group of plaintiffs acting on their own behalf and on behalf of a putative class of all persons and entities who indirectly purchased pork, filed a class action complaint against us and certain of our pork subsidiaries, as well as several other pork processing companies, in the United States District Court for the District of Minnesota. Subsequent to the filing of the initial complaint, additional lawsuits making similar claims on behalf of putative classes of direct and indirect purchasers were also filed in the same court. The court consolidated the complaints, for pre-trial purposes, into actions on behalf of three different putative classes: direct purchasers, indirect purchasers/consumers and commercial/institutional indirect purchasers. The consolidated actions are styled In re Pork Antitrust Litigation . Since the original filing, a putative class member is proceeding with an individual direct action making similar claims, and others may do so in the future. The individual complaint has been filed in the District of Minnesota and is proceeding on a coordinated pre-trial basis with the consolidated actions. The complaints allege, among other things, that beginning in January 2009 the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork and pork products in violation of United States antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees on behalf of the putative classes. On October 23, 2018, defendants filed motions to dismiss the complaints. Those motions are pending. Subsequently, the Commonwealth of Puerto Rico, on behalf of its citizens, has also initiated a civil lawsuit against us, certain of our subsidiaries, and several other pork processing companies alleging activities in violation of the Puerto Rican antitrust laws. On April 23, 2019, a group of plaintiffs, acting on behalf of themselves and on behalf of a putative class of all persons and entities who directly sold to the named defendants any fed cattle for slaughter and all persons who transacted in live cattle futures and/or options traded on the Chicago Mercantile Exchange or another U.S. exchange, filed a class action complaint against us and our beef and pork subsidiary, Tyson Fresh Meats, Inc., as well as other beef packer defendants, in the United States District Court for the Northern District of Illinois. The plaintiffs allege that the defendants engaged in a conspiracy from January 2015 to the present to reduce fed cattle prices in violation of federal antitrust laws, the Grain Inspection, Packers and Stockyards Act of 1921, and the Commodities Exchange Act by periodically reducing their slaughter volumes so as to reduce demand for fed cattle, curtailing their purchases and slaughters of cash-purchased cattle during those same periods, coordinating their procurement practices for fed cattle settled on a cash basis, importing foreign cattle at a loss so as to reduce domestic demand, and closing and idling plants. In addition, the plaintiffs also allege the defendants colluded to manipulate live cattle futures and options traded on the Chicago Mercantile Exchange. The plaintiffs seek, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief. This complaint was subsequently voluntarily dismissed and re-filed in the United States District Court for the District of Minnesota. Other similar lawsuits were filed by ranchers in other district courts. All actions seeking relief by ranchers and futures traders have now been transferred to the United States District Court for the District of Minnesota action and are consolidated for pre-trial proceedings as In Re Cattle Antitrust Litigation . On April 26, 2019, a group of plaintiffs, acting on behalf of themselves and on behalf of a putative class of indirect purchasers of beef for personal use filed a class action complaint against us, other beef packers, and Agri Stats, Inc., an information services provider, in the United States District Court for the District of Minnesota. Agri-Stats was subsequently dismissed from the suit. The plaintiffs allege that the packer defendants conspired to reduce slaughter capacity by closing or idling plants, limiting their purchases of cash cattle, coordinating their procurement of cash cattle, and reducing their slaughter numbers so as to reduce beef output, all in order to artificially raise prices of beef. The plaintiffs seek, among other things, damages under state antitrust and consumer protection statutes and the common law of approximately 30 states, as well as injunctive relief. The indirect consumer purchaser litigation is styled as Peterson v. JBS USA Food Company Holdings, et al. 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 was 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 in 1995 by Aris Philippines, Inc., a former subsidiary of The Hillshire Brands Company. In late 2004, a labor arbiter ruled against the respondents and awarded the complainants PHP 3,453,664,710 (approximately US $67 million ) in damages and fees. The respondents appealed the labor arbiter'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 certain other respondents in exchange for payments allocated by the court among the complainants in an amount not to exceed PHP 342,287,800 (approximately US $6.7 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’ settlement motion and all motions for reconsideration thereof. The Supreme Court of the Philippines also set aside as premature the NLRC’s December 2006 ruling. As a result, the cases were remanded back before the NLRC to rule on the merits of the case. On December 15, 2016, we learned that the NLRC rendered its decision on November 29, 2016, regarding the respondents’ appeals regarding the labor arbiter’s 2004 ruling in favor of the complainants. The NLRC increased the award for 4,922 of the total 5,984 complainants to PHP 14,858,495,937 (approximately US $290 million ). However, the NLRC approved a prior settlement reached with the group comprising approximately 18% of the class of 5,984 complainants, pursuant to which The Hillshire Brands Company agreed to pay each settling complainant PHP 68,000 (approximately US $1,300 ). The settlement payment was made on December 21, 2016, to the NLRC, which is responsible for distributing the funds to each settling complainant. On December 27, 2016, the respondents filed motions for reconsideration with the NLRC asking that the award be set aside. The NLRC denied respondents' motions for reconsideration in a resolution received on May 5, 2017 and entered a judgment on the award on July 24, 2017. Each of Aris Philippines, Inc., Sara Lee Corporation and Sara Lee Philippines, Inc. appealed this award and sought an injunction to preclude enforcement of the award to the Philippines Court of Appeals. On November 23, 2017, the Court of Appeals granted a writ of preliminary injunction that precluded execution of the NLRC award during the pendency of the appeal. The Court of Appeals subsequently vacated the NLRC’s award on April 12, 2018. Complainants have filed motions for reconsideration with the Court of Appeals. On November 14, 2018, the Court of Appeals denied claimants’ motions for reconsideration and granted defendants’ motion to release and discharge the preliminary injunction bond. Claimants have since filed petitions for writ of certiorari with the Supreme Court of the Philippines. The Supreme Court has accepted the case for review. We continue to maintain an accrual for this matter. The Hillshire Brands Company was named as a defendant in an asbestos exposure case filed by Mark Lopez in May 2014 in the Superior Court of Alameda County, California. Mr. Lopez was diagnosed with mesothelioma in January 2014 and is now deceased. Mr. Lopez’s family members asserted negligence, premises liability and strict liability claims related to Mr. Lopez’s alleged asbestos exposure from 1954-1986 from the Union Sugar plant in Betteravia, California. The plant, which was sold in 1986, was owned by entities that were predecessors-in-interest to The Hillshire Brands Company. In August 2017, the jury returned a verdict of approximately $13 million in favor of the plaintiffs, and a judgment was entered. We have appealed the judgment and all briefing has been completed. |
Accounting Policies (Policy)
Accounting Policies (Policy) | 9 Months Ended |
Jun. 29, 2019 | |
Policy Text Block [Abstract] | |
Basis Of Presentation | Basis of Presentation The consolidated condensed financial statements are unaudited and have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations of the United States Securities and Exchange Commission. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 29, 2018 . 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 June 29, 2019 , and the results of operations for the three and nine months ended June 29, 2019 , and June 30, 2018 . 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. |
Revenue Recognition | Revenue Recognition We recognize revenue mainly through consumer products retail, foodservice, international, industrial and other distribution channels. Our revenues primarily result from contracts with customers and are generally short term in nature with the delivery of product as the single performance obligation. We recognize revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred to our customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. We elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than an additional promised service. Our contracts are generally less than one year, and therefore we recognize costs paid to third party brokers to obtain contracts as expenses. Additionally, items that are not material in the context of the contract are recognized as expense. Any taxes collected on behalf of government authorities are excluded from net revenues. Revenue is measured by the transaction price, which is defined as the amount of consideration we expect to receive in exchange for providing goods to customers. The transaction price is adjusted for estimates of known or expected variable consideration, which includes consumer incentives, trade promotions, and allowances, such as coupons, discounts, rebates, volume-based incentives, cooperative advertising, and other programs. Variable consideration related to these programs is recorded as a reduction to revenue based on amounts we expect to pay. We base these estimates on current performance, historical utilization, and projected redemption rates of each program. We review and update these estimates regularly until the incentives or product returns are realized and the impact of any adjustments are recognized in the period the adjustments are identified. In many cases, key sales terms such as pricing and quantities ordered are established on a regular basis such that most customer arrangements and related incentives have a duration of less than one year. Amounts billed and due from customers are short term in nature and are classified as receivables since payments are unconditional and only the passage of time is required before payments are due. Additionally, we do not grant payment financing terms greater than one year. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2017, the Financial Accounting Standards Board ("FASB") issued guidance that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components excluded from the assessment. Some of the modifications include the ineffectiveness of derivative gain/loss in highly effective cash flow hedges to be recorded in Other Comprehensive Income, alignment of the recognition and presentation of the effects related to the hedging instrument and hedged item in the financial statements, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging on financial statement lines for components excluded from the assessment. The amendment also simplifies the application of hedge accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. Upon adoption, we do not expect this guidance will have a material impact on our consolidated financial statements. In March 2017, the FASB issued guidance that shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements. In June 2016, the FASB issued guidance that provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. Early adoption is permitted for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. The application of the guidance requires various transition methods depending on the specific amendment. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements. In February 2016, the FASB issued guidance that created new accounting and reporting guidelines for leasing arrangements. The guidance requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The guidance also requires qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective method should be applied. While we are still evaluating the impact this guidance will have on our consolidated financial statements and related disclosures, we have completed our initial scoping reviews and have made progress in our assessment phase as we continue to identify our leasing processes that will be impacted by the new standard. We have also made progress in developing the policy elections we will make upon adoption and we are implementing software to meet the reporting requirements of this standard. We expect our financial statement disclosures will be expanded to present additional details of our leasing arrangements. Although we expect the impacts to be material, at this time we are unable to reasonably estimate the expected increase in assets and liabilities on our consolidated balance sheets or the impacts to our consolidated financial statements upon adoption. |
Changes in Accounting Principles | Changes in Accounting Principles In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. The prospective transition method should be applied to all qualified implementation costs incurred after the adoption date. We elected to early adopt this guidance beginning in the first quarter of fiscal 2019, and it did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued guidance that clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. 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 prospective transition method should be applied to awards modified on or after the adoption date. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In March 2017, the FASB issued guidance that changes the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost will be included within the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost will be presented separately outside of operating income. Additionally, only the service cost component will be eligible for capitalization when applicable. 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 retrospective transition method should be applied for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement, and the prospective transition method should be applied, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The guidance includes a practical expedient allowing entities to estimate amounts for comparative periods using the information previously disclosed in the pension and other postretirement benefit plan footnote. We adopted this guidance in the first quarter of fiscal 2019 on a retrospective basis using the practical expedient and it did not have a material impact on our consolidated financial statements. The following reconciliations provide the effect of the reclassification of the net periodic benefit cost from operating expenses to other (income) expense in our consolidated statements of income for the three and nine months ended June 30, 2018 (in millions): Three Months Ended June 30, 2018: As Previously Reported Adjustments As Recast Cost of Sales $ 8,745 $ 7 $ 8,752 Selling, General and Administrative $ 504 $ (2 ) $ 502 Operating Income $ 802 $ (5 ) $ 797 Other (Income) Expense $ 79 $ (5 ) $ 74 Nine Months Ended June 30, 2018: As Previously Reported Adjustments As Recast Cost of Sales $ 26,276 $ 20 $ 26,296 Selling, General and Administrative $ 1,550 $ (6 ) $ 1,544 Operating Income $ 2,227 $ (14 ) $ 2,213 Other (Income) Expense $ 239 $ (14 ) $ 225 In November 2016, the FASB issued guidance that requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. 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 retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued guidance that requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. 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 modified retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued guidance that aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. 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 retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued guidance that requires most equity investments be measured at fair value, with subsequent other 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. It should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, unless equity securities do not have readily determinable fair values, in which case the amendments should be applied prospectively. We adopted this guidance in the first quarter of fiscal 2019. We did not use prospective amendments for any investments and adoption did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued guidance that changes 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, including disaggregated revenue disclosures. 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. We adopted this guidance in the first quarter of fiscal 2019 using the modified retrospective transition method. Prior periods were not adjusted and, based on our implementation assessment, no cumulative-effect adjustment was made to the opening balance of retained earnings. The adoption of this standard did not have a material impact on our consolidated financial statements. For further description of our revenue recognition policy refer to the Revenue Recognition section above and for disaggregated revenue information refer to Part I, Item 1, Notes to the Consolidated Condensed Financial Statements, Note 16: Segment Reporting. |
Inventories (Policy)
Inventories (Policy) | 9 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy | INVENTORIESProcessed products, livestock and supplies and other are valued at the lower of cost and net realizable value. 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. |
Accounting Policies Changes in
Accounting Policies Changes in Accounting Principles (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ASU 2017-07 Restatement Adjustments [Table Text Block] | The following reconciliations provide the effect of the reclassification of the net periodic benefit cost from operating expenses to other (income) expense in our consolidated statements of income for the three and nine months ended June 30, 2018 (in millions): Three Months Ended June 30, 2018: As Previously Reported Adjustments As Recast Cost of Sales $ 8,745 $ 7 $ 8,752 Selling, General and Administrative $ 504 $ (2 ) $ 502 Operating Income $ 802 $ (5 ) $ 797 Other (Income) Expense $ 79 $ (5 ) $ 74 Nine Months Ended June 30, 2018: As Previously Reported Adjustments As Recast Cost of Sales $ 26,276 $ 20 $ 26,296 Selling, General and Administrative $ 1,550 $ (6 ) $ 1,544 Operating Income $ 2,227 $ (14 ) $ 2,213 Other (Income) Expense $ 239 $ (14 ) $ 225 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the preliminary purchase price allocation for Keystone Foods and fair values of the assets acquired and liabilities assumed at the acquisition date, which is subject to change pending finalization of working capital adjustments. Certain estimated values for the acquisition, including goodwill, intangible assets, inventory, property, plant and equipment, and deferred income taxes, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The purchase price was allocated based on information currently available as of the acquisition date. During the third quarter of fiscal 2019, we recorded measurement period adjustments which increased goodwill by $4 million , consisting of a reduction to Property, Plant and Equipment of $4 million , an increase to Accounts Receivable of $3 million , an increase to Deferred Income Taxes of $2 million , an increase to Accounts Payable of $2 million and a reduction to Other Current Liabilities of $1 million . in millions Cash and cash equivalents $ 186 Accounts receivable 106 Inventories 257 Other current assets 34 Property, Plant and Equipment 676 Goodwill 1,182 Intangible Assets 659 Other Assets 28 Current debt (73 ) Accounts payable (208 ) Other current liabilities (99 ) Long-Term Debt (113 ) Deferred Income Taxes (178 ) Other Liabilities (8 ) Noncontrolling Interests (122 ) Net assets acquired $ 2,327 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table reflects the major components of inventory (in millions): June 29, 2019 September 29, 2018 Processed products $ 2,438 $ 1,981 Livestock 1,140 1,006 Supplies and other 571 526 Total inventory $ 4,149 $ 3,513 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant And Equipment And Accumulated Depreciation | The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): June 29, 2019 September 29, 2018 Land $ 184 $ 154 Buildings and leasehold improvements 4,662 4,115 Machinery and equipment 8,584 7,720 Land improvements and other 374 357 Buildings and equipment under construction 812 689 14,616 13,035 Less accumulated depreciation 7,345 6,866 Net property, plant and equipment $ 7,271 $ 6,169 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Other Liabilities, Current [Abstract] | |
Schedule Of Other Current Liabilities | Other current liabilities are as follows (in millions): June 29, 2019 September 29, 2018 Accrued salaries, wages and benefits $ 587 $ 549 Other 927 877 Total other current liabilities $ 1,514 $ 1,426 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Debt Instruments [Abstract] | |
Schedule of Major Components Of Debt | The major components of debt are as follows (in millions): June 29, 2019 September 29, 2018 Revolving credit facility $ — $ — Commercial paper 695 605 Senior notes: Notes due May 2019 ("2019 Notes") — 300 2.65% Notes due August 2019 1,000 1,000 Notes due June 2020 (3.07% at 6/29/2019) 350 350 Notes due August 2020 (2.97% at 6/29/2019) 400 400 4.10% Notes due September 2020 280 281 2.25% Notes due August 2021 500 500 4.50% Senior notes due June 2022 1,000 1,000 3.90% Senior notes due September 2023 400 400 3.95% Notes due August 2024 1,250 1,250 4.00% Notes due March 2026 ("2026 Notes") 800 — 3.55% Notes due June 2027 1,350 1,350 7.00% Notes due January 2028 18 18 4.35% Notes due March 2029 ("2029 Notes") 1,000 — 6.13% Notes due November 2032 161 161 4.88% Notes due August 2034 500 500 5.15% Notes due August 2044 500 500 4.55% Notes due June 2047 750 750 5.10% Notes due September 2048 ("2048 Notes") 1,500 500 Discount on senior notes (49 ) (15 ) Other 248 73 Unamortized debt issuance costs (67 ) (50 ) Total debt 12,586 9,873 Less current debt 2,125 1,911 Total long-term debt $ 10,461 $ 7,962 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchase | A summary of share repurchases of our Class A stock is as follows (in millions): Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Shares Dollars Shares Dollars Shares Dollars Shares Dollars Shares repurchased: Under share repurchase program 0.6 $ 50 1.8 $ 120 2.3 $ 150 4.1 $ 300 To fund certain obligations under equity compensation plans 0.4 29 0.1 10 1.1 75 0.9 67 Total share repurchases 1.0 $ 79 1.9 $ 130 3.4 $ 225 5.0 $ 367 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
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 Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Numerator: Net income $ 681 $ 542 $ 1,663 $ 2,490 Less: Net income attributable to noncontrolling interests 5 1 10 3 Net income attributable to Tyson 676 541 1,653 2,487 Less dividends declared: Class A 110 88 353 289 Class B 25 19 76 61 Undistributed earnings $ 541 $ 434 $ 1,224 $ 2,137 Class A undistributed earnings $ 446 $ 358 $ 1,008 $ 1,762 Class B undistributed earnings 95 76 216 375 Total undistributed earnings $ 541 $ 434 $ 1,224 $ 2,137 Denominator: Denominator for basic earnings per share: Class A weighted average shares 293 295 293 296 Class B weighted average shares, and shares under the if-converted method for diluted earnings per share 70 70 70 70 Effect of dilutive securities: Stock options, restricted stock and performance units 4 4 3 4 Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions 367 369 366 370 Net income per share attributable to Tyson: Class A basic $ 1.90 $ 1.52 $ 4.64 $ 6.94 Class B basic $ 1.71 $ 1.37 $ 4.17 $ 6.24 Diluted $ 1.84 $ 1.47 $ 4.51 $ 6.72 Dividends Declared Per Share: Class A $ 0.375 $ 0.300 $ 1.200 $ 0.975 Class B $ 0.338 $ 0.270 $ 1.081 $ 0.878 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Derivative [Line Items] | |
Schedule Of Notional Amount Of Derivatives | We had the following aggregated outstanding notional amounts related to our derivative financial instruments: in millions, except soy meal tons Metric June 29, 2019 September 29, 2018 Commodity: Corn Bushels 112 112 Soy Meal Tons 817,400 651,700 Live Cattle Pounds 162 105 Lean Hogs Pounds 501 39 Foreign Currency United States dollar $ 212 $ 89 Interest Rate Swaps Average monthly debt $ 400 $ 400 |
Designated as hedges | Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following tables set 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 June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Cash flow hedge – derivatives designated as hedging instruments: Commodity contracts $ 5 $ (13 ) Cost of Sales $ (3 ) $ — Interest rate hedges (1 ) — Interest expense (1 ) — Total $ 4 $ (13 ) $ (4 ) $ — Gain (Loss) Consolidated Condensed Statements of Income Classification Gain (Loss) Nine Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Cash flow hedge – derivatives designated as hedging instruments: Commodity contracts $ (2 ) $ (13 ) Cost of sales $ (15 ) $ (3 ) Interest rate hedges (24 ) — Interest expense (1 ) — Total $ (26 ) $ (13 ) $ (16 ) $ (3 ) |
Designated as hedges | Fair Value Hedging [Member] | |
Derivative [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | in millions Consolidated Condensed Statements of Income Classification Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Gain (Loss) on forwards Cost of Sales $ 8 $ 11 $ 8 $ 5 Gain (Loss) on purchase contract Cost of Sales (8 ) (11 ) (8 ) (5 ) |
Undesignated | |
Derivative [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Condensed Statements of Income (in millions): Gain (Loss) Recognized in Earnings Gain (Loss) Recognized in Earnings Consolidated Condensed Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Derivatives not designated as hedging instruments: Commodity contracts Sales $ (42 ) $ 21 $ (28 ) $ — Commodity contracts Cost of Sales 97 (58 ) 76 (12 ) Foreign exchange contracts Other Income/Expense 4 (1 ) 7 (3 ) Total $ 59 $ (38 ) $ 55 $ (15 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
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): June 29, 2019 Level 1 Level 2 Level 3 Netting (a) Total Other Current Assets: Derivative financial instruments: Designated as hedges $ — $ 56 $ — $ (30 ) $ 26 Undesignated — 92 — (45 ) 47 Available-for-sale securities: Current — 1 — — 1 Other Assets: Available-for-sale securities: Non-current — 52 49 — 101 Deferred compensation assets 7 311 — — 318 Total assets $ 7 $ 512 $ 49 $ (75 ) $ 493 Other Current Liabilities: Derivative financial instruments: Designated as hedges $ — $ 9 $ — $ (5 ) $ 4 Undesignated — 65 — (61 ) 4 Total liabilities $ — $ 74 $ — $ (66 ) $ 8 September 29, 2018 Level 1 Level 2 Level 3 Netting (a) Total Other Current Assets: Derivative financial instruments: Designated as hedges $ — $ 2 $ — $ (1 ) $ 1 Undesignated — 44 — (19 ) 25 Available-for-sale securities: Current — 1 — — 1 Other Assets: Available-for-sale securities: Non-current — 46 51 — 97 Deferred compensation assets 21 295 — — 316 Total assets $ 21 $ 388 $ 51 $ (20 ) $ 440 Other Current Liabilities: Derivative financial instruments: Designated as hedges $ — $ 8 $ — $ (8 ) $ — Undesignated — 35 — (30 ) 5 Total liabilities $ — $ 43 $ — $ (38 ) $ 5 (a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at June 29, 2019 , and September 29, 2018 , we had $9 million and $18 million |
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 marketable debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): Nine Months Ended June 29, 2019 June 30, 2018 Balance at beginning of year $ 51 $ 51 Total realized and unrealized gains (losses): Included in earnings — — Included in other comprehensive income (loss) 1 — Purchases 12 14 Issuances — — Settlements (15 ) (12 ) Balance at end of period $ 49 $ 53 Total gains (losses) for the nine-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period $ — $ — |
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): June 29, 2019 September 29, 2018 Amortized Fair Unrealized Amortized Fair Unrealized Available-for-sale securities: Debt securities: U.S. treasury and agency $ 52 $ 53 $ 1 $ 48 $ 47 $ (1 ) Corporate and asset-backed 49 49 — 52 51 (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): June 29, 2019 September 29, 2018 Fair Value Carrying Value Fair Value Carrying Value Total debt $ 13,294 $ 12,586 $ 9,775 $ 9,873 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of the net periodic cost for the pension and postretirement benefit plans for the three and nine months ended June 29, 2019 , and June 30, 2018 , are as follows (in millions): Pension Plans Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Service cost $ — $ 1 $ 1 $ 5 Interest cost 16 16 48 48 Expected return on plan assets (14 ) (16 ) (43 ) (47 ) Amortization of: Net actuarial loss — 1 1 3 Prior service cost 1 — 1 — Settlement loss — — 19 — Net periodic cost $ 3 $ 2 $ 27 $ 9 Postretirement Benefit Plans Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Interest cost $ — $ — $ 1 $ 1 Amortization of prior service credit (1 ) (6 ) (6 ) (18 ) Net periodic credit $ (1 ) $ (6 ) $ (5 ) $ (17 ) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Statement of Comprehensive Income [Abstract] | |
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 Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Derivatives accounted for as cash flow hedges: (Gain) loss reclassified to interest expense $ 1 $ — $ 1 $ — $ — $ — $ 1 $ — $ 1 $ — $ — $ — (Gain) loss reclassified to cost of sales 3 (2 ) 1 — — — 15 (4 ) 11 3 (1 ) 2 Unrealized gain (loss) 4 (2 ) 2 (13 ) 4 (9 ) (26 ) 6 (20 ) (13 ) 4 (9 ) Investments: Unrealized gain (loss) 1 — 1 (1 ) — (1 ) 3 (1 ) 2 (1 ) — (1 ) Currency translation: Translation adjustment (15 ) — (15 ) (33 ) 1 (32 ) 19 (1 ) 18 (27 ) 1 (26 ) Translation loss reclassified to cost of sales — — — 7 — 7 — — — 7 — 7 Postretirement benefits: Unrealized gain (loss) — — — (5 ) 2 (3 ) (28 ) 8 (20 ) (9 ) 2 (7 ) Pension settlement reclassified to other (income) expense — — — — — — 23 (6 ) 17 — — — Total other comprehensive income (loss) $ (6 ) $ (4 ) $ (10 ) $ (45 ) $ 7 $ (38 ) $ 7 $ 2 $ 9 $ (40 ) $ 6 $ (34 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, By Segment | Information on segments and a reconciliation to income before income taxes are as follows (in millions): Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Sales: Beef $ 4,157 $ 3,993 $ 11,967 $ 11,560 Pork 1,323 1,197 3,674 3,745 Chicken 3,331 2,973 9,853 8,929 Prepared Foods 2,089 2,132 6,265 6,571 Other 356 75 776 245 Intersegment (371 ) (319 ) (1,014 ) (997 ) Total sales $ 10,885 $ 10,051 $ 31,521 $ 30,053 Three Months Ended Nine Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Operating income (loss): Beef $ 270 $ 318 $ 731 $ 666 Pork 42 67 237 285 Chicken 230 189 531 (a) 692 Prepared Foods 229 238 739 613 (b) Other 10 (c) (15 ) (c) (15 ) (c) (43 ) (c) Total operating income 781 797 2,223 2,213 Total other expense 57 74 258 225 Income before income taxes $ 724 $ 723 $ 1,965 $ 1,988 (a) Chicken operating income includes $13 million in Keystone Foods purchase accounting and acquisition related costs for the nine months ended June 29, 2019 . (b) Prepared Foods operating income includes a $79 million impairment net of a realized gain associated with the divestiture of non-protein businesses for the nine months ended June 30, 2018. (c) Other operating results include $24 million in Keystone Foods purchase accounting and acquisition related costs for the nine months ended June 29, 2019 , and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $10 million and $5 million for the three months ended June 29, 2019 , and June 30, 2018 , respectively, and $15 million and $13 million for the nine months ended June 29, 2019 , and June 30, 2018 , respectively. |
Disaggregation of Revenue, By Segment and Distribution Channel | our sales to customers by major distribution channels (in millions): Three Months Ended June 29, 2019 Consumer Products (a) Foodservice (b) International (c) Industrial and Other (d) Intersegment Total Beef $ 1,966 $ 1,050 $ 648 $ 382 $ 111 $ 4,157 Pork 365 110 243 360 245 1,323 Chicken 1,369 1,330 177 440 15 3,331 Prepared Foods 1,178 823 26 62 — 2,089 Other — — 356 — — 356 Intersegment — — — — (371 ) (371 ) Total $ 4,878 $ 3,313 $ 1,450 $ 1,244 $ — $ 10,885 Nine Months Ended June 29, 2019 Consumer Products (a) Foodservice (b) International (c) Industrial and Other (d) Intersegment Total Beef $ 5,628 $ 3,124 $ 1,849 $ 1,065 $ 301 $ 11,967 Pork 1,036 294 678 995 671 3,674 Chicken 4,204 3,767 489 1,351 42 9,853 Prepared Foods 3,643 2,367 70 185 — 6,265 Other — — 776 — — 776 Intersegment — — — — (1,014 ) (1,014 ) Total $ 14,511 $ 9,552 $ 3,862 $ 3,596 $ — $ 31,521 (a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. (c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products. (d) Includes sales to industrial food processing companies that further process our product to sell to end consumers and any remaining sales not included in the Consumer Products, Foodservice or International categories. |
Accounting Policies Changes i_2
Accounting Policies Changes in Accounting Principles (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of Sales | $ 9,549 | $ 8,752 | $ 27,638 | $ 26,296 |
Selling, General and Administrative | 555 | 502 | 1,660 | 1,544 |
Operating Income | 781 | 797 | 2,223 | 2,213 |
Other (Income) Expense | $ 57 | 74 | $ 258 | 225 |
Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of Sales | 8,745 | 26,276 | ||
Selling, General and Administrative | 504 | 1,550 | ||
Operating Income | 802 | 2,227 | ||
Other (Income) Expense | 79 | 239 | ||
Accounting Standards Update 2017-07 [Member] | Restatement Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of Sales | 7 | 20 | ||
Selling, General and Administrative | (2) | (6) | ||
Operating Income | (5) | (14) | ||
Other (Income) Expense | $ (5) | $ (14) |
Acquisitions and Dispositions P
Acquisitions and Dispositions Preliminary Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Nov. 30, 2018 | Sep. 29, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 10,944 | $ 9,739 | |
Keystone Foods [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 186 | ||
Accounts receivable | 106 | ||
Inventories | 257 | ||
Other current assets | 34 | ||
Property, Plant and Equipment | 676 | ||
Goodwill | 1,182 | ||
Intangible Assets | 659 | ||
Other Assets | 28 | ||
Current debt | (73) | ||
Accounts payable | (208) | ||
Other current liabilities | (99) | ||
Long-Term Debt | (113) | ||
Deferred Income Taxes | (178) | ||
Other Liabilities | (8) | ||
Noncontrolling Interests | (122) | ||
Other Liabilities | $ 2,327 |
Acquisitions and Dispositions A
Acquisitions and Dispositions Acquisition (Narrative) (Details) - USD ($) $ in Millions | Jun. 03, 2019 | Nov. 30, 2018 | Aug. 20, 2018 | Jun. 04, 2018 | Nov. 10, 2017 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 29, 2019 | Jun. 30, 2018 | Sep. 29, 2018 |
Business Acquisition [Line Items] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 2,461 | $ 608 | ||||||||||
Goodwill | $ 10,944 | $ 10,944 | 10,944 | $ 9,739 | ||||||||
Sales | 10,885 | $ 10,051 | 31,521 | $ 30,053 | ||||||||
BRF S.A. Thailand and Europe [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | $ 75 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital | 304 | |||||||||||
Cash and cash equivalents | 56 | |||||||||||
Property, Plant and Equipment | 106 | |||||||||||
Intangible Assets | 34 | |||||||||||
Goodwill | 67 | |||||||||||
Other Liabilities | 24 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 15 | |||||||||||
Business Combination, Consideration Transferred | 341 | |||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 0 | |||||||||||
Keystone Foods [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | $ 122 | |||||||||||
Cash and cash equivalents | 186 | |||||||||||
Property, Plant and Equipment | 676 | |||||||||||
Intangible Assets | 659 | |||||||||||
Goodwill | 1,182 | |||||||||||
Sales | $ 1,362 | |||||||||||
Goodwill, Purchase Accounting Adjustments | 4 | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 4 | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Income Taxes | (2) | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Accounts Receivable | 3 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 178 | |||||||||||
Business Combination, Consideration Transferred | 2,300 | |||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 0 | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Accounts Payable | 2 | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Other Current Liabilities | 1 | |||||||||||
American Protein [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital | $ 56 | |||||||||||
Property, Plant and Equipment | 152 | |||||||||||
Intangible Assets | 411 | |||||||||||
Goodwill | 258 | |||||||||||
Goodwill, Purchase Accounting Adjustments | $ 16 | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | (2) | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Net Working Capital | 15 | |||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | $ 3 | |||||||||||
Other Liabilities | 13 | |||||||||||
Business Combination, Consideration Transferred | 864 | |||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 258 | |||||||||||
Tecumseh Poultry [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 382 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital | 13 | |||||||||||
Cash and cash equivalents | 1 | |||||||||||
Property, Plant and Equipment | 49 | |||||||||||
Intangible Assets | 227 | |||||||||||
Goodwill | 94 | |||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 94 | |||||||||||
Original Philly [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 226 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital | 21 | |||||||||||
Cash and cash equivalents | 10 | |||||||||||
Property, Plant and Equipment | 13 | |||||||||||
Intangible Assets | 90 | |||||||||||
Goodwill | 111 | |||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 111 | |||||||||||
Supply Network [Member] | American Protein [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | |||||||||||
Finite-lived Intangible Assets Acquired | $ 358 | |||||||||||
Customer Relationships [Member] | BRF S.A. Thailand and Europe [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | |||||||||||
Customer Relationships [Member] | Keystone Foods [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 25 years | |||||||||||
Customer Relationships [Member] | American Protein [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |||||||||||
Finite-lived Intangible Assets Acquired | $ 51 | |||||||||||
Trademarks and Trade Names [Member] | Tecumseh Poultry [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||||||||||
Finite-lived Intangible Assets Acquired | $ 193 | |||||||||||
Prepared Foods | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Sales | 2,089 | 6,265 | ||||||||||
Prepared Foods | Original Philly [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | 82 | |||||||||||
Chicken | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Sales | 3,331 | 9,853 | ||||||||||
Chicken | Keystone Foods [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 825 | |||||||||||
Chicken | Original Philly [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 29 | |||||||||||
Corporate and Other [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Sales | $ 356 | $ 776 | ||||||||||
Corporate and Other [Member] | Keystone Foods [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 357 |
Acquisitions and Dispositions D
Acquisitions and Dispositions Disposition Narrative (Details) - Non-Protein Business [Member] - Prepared Foods - USD ($) $ in Millions | 9 Months Ended | |||
Jun. 30, 2018 | Sep. 02, 2018 | Jul. 30, 2018 | Dec. 30, 2017 | |
Kettle Business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 125 | |||
Kettle Business [Member] | Cost of Sales | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (Loss) on Disposition of Business | $ 22 | |||
Sara Lee® Frozen Bakery and Van’s® businesses [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 623 | |||
Sara Lee® Frozen Bakery and Van’s® businesses [Member] | Cost of Sales | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset Impairment Charges | $ 101 | |||
TNT Crust [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 57 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventory) (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Processed products | $ 2,438 | $ 1,981 |
Livestock | 1,140 | 1,006 |
Supplies and other | 571 | 526 |
Total inventory | $ 4,149 | $ 3,513 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 14,616 | $ 13,035 |
Less accumulated depreciation | 7,345 | 6,866 |
Net property, plant and equipment | 7,271 | 6,169 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 184 | 154 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,662 | 4,115 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 8,584 | 7,720 |
Land improvements and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 374 | 357 |
Buildings and equipment under construction | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 812 | $ 689 |
Restructuring and Related Cha_2
Restructuring and Related Charges Restructuring (Details) - Financial Fitness Program [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 24 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Sep. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Expected Cost | $ 253 | $ 253 | $ 253 | |||
Restructuring and Related Cost, Incurred Cost | 240 | |||||
Restructuring Reserve | 1 | 1 | $ 1 | $ 10 | ||
Payments for Restructuring | 9 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Incurred Cost | $ 15 | $ 14 | $ 31 | $ 45 |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Other Liabilities, Current [Abstract] | ||
Accrued salaries, wages and benefits | $ 587 | $ 549 |
Other | 927 | 877 |
Total other current liabilities | $ 1,514 | $ 1,426 |
Debt (Major Components Of Debt)
Debt (Major Components Of Debt) (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Feb. 01, 2019 | Sep. 29, 2018 |
Debt Instrument [Line Items] | |||
Discount on senior notes | $ (49) | $ (15) | |
Other | 248 | 73 | |
Unamortized debt issuance costs | (67) | (50) | |
Total debt | 12,586 | 9,873 | |
Less current debt | 2,125 | 1,911 | |
Less current debt | 10,461 | 7,962 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | 0 | 0 | |
Commercial paper | |||
Debt Instrument [Line Items] | |||
Commercial paper | 695 | 605 | |
Notes due May 2019 (2019 Notes) | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 0 | 300 | |
2.65% Notes due August 2019 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||
Long-term Debt, Gross | $ 1,000 | 1,000 | |
Notes due June 2020 (3.07% at 6/29/2019) | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.07% | ||
Long-term Debt, Gross | $ 350 | 350 | |
Notes due August 2020 (2.97% at 6/29/2019) | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.97% | ||
Long-term Debt, Gross | $ 400 | 400 | |
4.10% Notes due September 2020 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | ||
Long-term Debt, Gross | $ 280 | 281 | |
2.25% Notes due August 2021 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | ||
Long-term Debt, Gross | $ 500 | 500 | |
4.50% Senior notes due June 2022 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Long-term Debt, Gross | $ 1,000 | 1,000 | |
3.90% Senior notes due September 2023 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | ||
Long-term Debt, Gross | $ 400 | 400 | |
3.95% Notes due August 2024 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||
Long-term Debt, Gross | $ 1,250 | 1,250 | |
4.00% Notes due March 2026 (2026 Notes) | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |
Long-term Debt, Gross | $ 800 | $ 800 | 0 |
3.55% Notes due June 2027 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | ||
Long-term Debt, Gross | $ 1,350 | 1,350 | |
7.00% Notes due January 2028 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||
Long-term Debt, Gross | $ 18 | 18 | |
4.35% Notes due March 2029 (2029 Notes) | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | |
Long-term Debt, Gross | $ 1,000 | $ 1,000 | 0 |
6.13% Notes due November 2032 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | ||
Long-term Debt, Gross | $ 161 | 161 | |
4.88% Notes due August 2034 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.88% | ||
Long-term Debt, Gross | $ 500 | 500 | |
5.15% Notes due August 2044 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | ||
Long-term Debt, Gross | $ 500 | 500 | |
4.55% Notes due June 2047 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.55% | ||
Long-term Debt, Gross | $ 750 | 750 | |
5.10% Notes due September 2048 (2048 Notes) | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | ||
Long-term Debt, Gross | $ 1,500 | $ 1,500 | $ 500 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Nov. 29, 2018 | Feb. 28, 2019 | Jun. 29, 2019 | Jun. 29, 2019 | Feb. 01, 2019 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||||||
Debt Instrument, Unamortized Discount | $ 49 | $ 49 | $ 15 | |||
Notes due May 2019 (2019 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of Debt, Amount | 300 | |||||
Long-term Debt, Gross | 0 | 0 | 300 | |||
Four Point Zero Zero Percentage Senior Unsecured Notes due March, Two Thousand Twenty Six and Four Point Three Five Percentage Senior Unsecured Notes Due March, Two Thousand Twenty Nine [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Issuance Costs, Gross | $ 26 | |||||
Long-term Debt | 1,800 | |||||
Debt Instrument, Unamortized Discount | 36 | |||||
Proceeds from Issuance of Unsecured Debt | $ 2,764 | |||||
5.10% Notes due September 2048 (2048 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 1,000 | |||||
Long-term Debt, Gross | $ 1,500 | $ 1,500 | 1,500 | 500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | ||||
Four Point Zero Zero Percentage Senior Unsecured Notes Due March, Two Thousand Twenty Six [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 800 | $ 800 | $ 800 | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | 4.00% | |||
Four Point Three Five Percentage Senior Unsecured Notes Due March Two Thousand And Twenty Nine [Member] [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 1,000 | $ 1,000 | $ 1,000 | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | 4.35% | |||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,750 | $ 1,750 | ||||
Amount available for borrowing under credit facility | 1,750 | 1,750 | ||||
Revolving credit facility | 0 | 0 | 0 | |||
Standby Letters of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letters of Credit Outstanding, Amount | 0 | 0 | ||||
Bilateral Letters Of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Letters of Credit Outstanding, Amount | 113 | 113 | ||||
Commercial paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 1,000 | 1,000 | ||||
Commercial paper | $ 695 | $ 695 | $ 605 | |||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.64% | 2.64% | ||||
Debt Instrument, Term | 15 days | |||||
Term Loan [Member] | 364-Day due November 2019 [Member] [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of Debt, Amount | $ 1,800 | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% |
Equity (Schedule of Share Repur
Equity (Schedule of Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Class of Stock [Line Items] | ||||
Payments for Repurchase of Common Stock | $ 225 | $ 367 | ||
Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | 1 | 1.9 | 3.4 | 5 |
Payments for Repurchase of Common Stock | $ 79 | $ 130 | $ 225 | $ 367 |
Under share repurchase program | Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | 0.6 | 1.8 | 2.3 | 4.1 |
Payments for Repurchase of Common Stock | $ 50 | $ 120 | $ 150 | $ 300 |
To fund certain obligations under equity compensation plans | Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | 0.4 | 0.1 | 1.1 | 0.9 |
Payments for Repurchase of Common Stock | $ 29 | $ 10 | $ 75 | $ 67 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) shares in Millions | Jun. 29, 2019shares |
Class A [Member] | |
Class of Stock [Line Items] | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 20.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate for continuing operations | 6.00% | 25.00% | 15.40% | (25.30%) | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 17.30% | 6.40% | |||
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Percent | 50.50% | ||||
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Percent | 1.30% | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.50% | |||
Unrecognized tax benefits | $ 176 | $ 176 | $ 308 |
Other Income And Charges (Detai
Other Income And Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Components of Other Income and Expenses [Line Items] | ||||
Proceeds from Sale of Other Investments | $ 79 | |||
Other income/expense | ||||
Components of Other Income and Expenses [Line Items] | ||||
Gain on Sale of Investments | $ 55 | |||
Net Periodic Benefit Cost (Credit), Excluding Service Cost | $ 21 | |||
Equity Earnings in Joint Ventures | $ 17 | $ 14 | ||
Accounting Standards Update 2017-07 [Member] | Restatement Adjustment [Member] | Other income/expense | ||||
Components of Other Income and Expenses [Line Items] | ||||
Net Periodic Benefit Cost (Credit), Excluding Service Cost | $ (5) | (14) | ||
One time cash bonus [Member] | Cost of Sales | ||||
Components of Other Income and Expenses [Line Items] | ||||
Other Nonrecurring Expense | $ 109 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Net Income | $ 681 | $ 542 | $ 1,663 | $ 2,490 |
Less: Net Income Attributable to Noncontrolling Interests | 5 | 1 | 10 | 3 |
Net income attributable to Tyson | 676 | 541 | 1,653 | 2,487 |
Undistributed earnings | $ 541 | $ 434 | $ 1,224 | $ 2,137 |
Stock options, restricted stock and performance units | 4 | 4 | 3 | 4 |
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions | 367 | 369 | 366 | 370 |
Diluted | $ 1.84 | $ 1.47 | $ 4.51 | $ 6.72 |
Class A [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Less dividends declared: | $ 110 | $ 88 | $ 353 | $ 289 |
Undistributed earnings | $ 446 | $ 358 | $ 1,008 | $ 1,762 |
Weighted average number of shares outstanding - Basic | 293 | 295 | 293 | 296 |
Net Income Per Share Attributable to Tyson - Basic | $ 1.90 | $ 1.52 | $ 4.64 | $ 6.94 |
Common Stock, Dividends, Per Share, Declared | $ 0.375 | $ 0.300 | $ 1.200 | $ 0.975 |
Class B [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Less dividends declared: | $ 25 | $ 19 | $ 76 | $ 61 |
Undistributed earnings | $ 95 | $ 76 | $ 216 | $ 375 |
Weighted average number of shares outstanding - Basic | 70 | 70 | 70 | 70 |
Net Income Per Share Attributable to Tyson - Basic | $ 1.71 | $ 1.37 | $ 4.17 | $ 6.24 |
Common Stock, Dividends, Per Share, Declared | $ 0.338 | $ 0.270 | $ 1.081 | $ 0.878 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019shares | Jun. 30, 2018shares | Jun. 29, 2019Classesshares | Jun. 30, 2018shares | |
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Number Of Classes Of Common Stock | Classes | 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% | 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 | |||
Share-based Payment Arrangement [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, shares | shares | 1 | 1 | 3 | 1 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Aggregate Outstanding Notionals) (Details) lb in Millions, bu in Millions, $ in Millions | Jun. 29, 2019USD ($)bulbT | Sep. 29, 2018USD ($)bulbT |
Corn (in bushels) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bu | 112 | 112 |
Soy Meal (in tons) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | T | 817,400 | 651,700 |
Live Cattle [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | lb | 162 | 105 |
Lean Hogs [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | lb | 501 | 39 |
Foreign Currency [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 212 | $ 89 |
Interest rate hedges | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 400 | $ 400 |
Derivative Financial Instrume_4
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 | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in OCI on Derivatives | $ 4 | $ (13) | $ (26) | $ (13) |
Gain/(Loss) Reclassified from OCI to Earnings | (4) | 0 | (16) | (3) |
Commodity contracts | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in OCI on Derivatives | 5 | (13) | (2) | (13) |
Commodity contracts | Cost of Sales | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Reclassified from OCI to Earnings | (3) | 0 | (15) | (3) |
Interest rate hedges | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in OCI on Derivatives | (1) | 0 | (24) | 0 |
Interest rate hedges | Interest Expense [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Reclassified from OCI to Earnings | $ (1) | $ 0 | $ (1) | $ 0 |
Derivative Financial Instrume_5
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 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Gain (Loss) on forwards | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | $ 8 | $ 11 | $ 8 | $ 5 |
Gain (Loss) on purchase contract | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | $ (8) | $ (11) | $ (8) | $ (5) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Pretax Impact Of Undesignated Derivative Instruments On The Consolidated Statements Of Income) (Details) - Undesignated - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | $ 59 | $ (38) | $ 55 | $ (15) |
Commodity contracts | Sales | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | (42) | 21 | (28) | 0 |
Commodity contracts | Cost of Sales | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | 97 | (58) | 76 | (12) |
Foreign exchange contracts | Other income/expense | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | $ 4 | $ (1) | $ 7 | $ (3) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 9 Months Ended |
Jun. 29, 2019USD ($) | |
Commodity contracts | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 2 |
Interest rate hedges | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (3) |
Treasury Rate Locks | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified Over Life of Forecasted Fixed-Rate Debt | $ (19) |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | $ 9 | $ 18 | |
Derivative, Collateral, Obligation to Return Cash | 0 | ||
Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Netting | [1] | (75) | (20) |
Total assets | 493 | 440 | |
Derivative Liability, Netting | [1] | (66) | (38) |
Total liabilities | 8 | 5 | |
Fair Value, Recurring [Member] | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 7 | 21 | |
Total liabilities | 0 | 0 | |
Fair Value, Recurring [Member] | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 512 | 388 | |
Total liabilities | 74 | 43 | |
Fair Value, Recurring [Member] | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 49 | 51 | |
Total liabilities | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 1 | 1 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 26 | 1 | |
Derivative Asset, Netting | (30) | (1) | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 47 | 25 | |
Derivative Asset, Netting | (45) | (19) | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 1 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 1 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 1 | 1 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 2 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 56 | 2 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 2 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 92 | 44 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 3 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 3 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 0 | 0 | |
Other Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for Sale Securities, Noncurrent | 101 | 97 | |
Deferred compensation assets | 318 | 316 | |
Other Assets [Member] | Fair Value, Recurring [Member] | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for Sale Securities, Noncurrent | 0 | 0 | |
Deferred compensation assets | 7 | 21 | |
Other Assets [Member] | Fair Value, Recurring [Member] | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for Sale Securities, Noncurrent | 52 | 46 | |
Deferred compensation assets | 311 | 295 | |
Other Assets [Member] | Fair Value, Recurring [Member] | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for Sale Securities, Noncurrent | 49 | 51 | |
Deferred compensation assets | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 4 | 0 | |
Derivative Liability, Netting | (5) | (8) | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 4 | 5 | |
Derivative Liability, Netting | (61) | (30) | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 1 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 1 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 2 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 9 | 8 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 2 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 65 | 35 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 3 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 3 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | $ 0 | $ 0 | |
[1] | Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at June 29, 2019 , and September 29, 2018 , we had $9 million and $18 million |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | $ 51 | $ 51 |
Total realized gains (losses) included in earnings | 0 | 0 |
Total unrealized gains (losses) included in other comprehensive income (loss) | 1 | 0 |
Purchases | 12 | 14 |
Issuances | 0 | 0 |
Settlements | (15) | (12) |
Balance at end of period | 49 | 53 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ 0 | $ 0 |
Fair Value Measurements (Sche_3
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
U.S. treasury and agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost Basis | $ 52 | $ 48 |
Fair Value | 53 | 47 |
Unrealized Gain (Loss) | 1 | (1) |
Corporate and asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost Basis | 49 | 52 |
Fair Value | 49 | 51 |
Unrealized Gain (Loss) | $ 0 | $ (1) |
Fair Value Measurements (Sche_4
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Sep. 29, 2018 |
Fair Value Disclosures [Abstract] | ||
Total Debt, Fair Value | $ 13,294 | $ 9,775 |
Total Debt, Carrying Value | $ 12,586 | $ 9,873 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other than Temporary Impairments, Recognized in Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Other than Temporary Impairment Losses, Deferred in OCI | $ 0 | $ 0 | $ 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 | 32 years | |||
Prepared Foods | Non-Protein Business [Member] | Sara Lee® Frozen Bakery and Van’s® businesses [Member] | Cost of Sales | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset Impairment Charges | $ 101 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0 | $ 1 | $ 1 | $ 5 |
Interest cost | 16 | 16 | 48 | 48 |
Expected return on plan assets | (14) | (16) | (43) | (47) |
Amortization of Net actuarial loss | 0 | 1 | 1 | 3 |
Settlement loss | 0 | 0 | 19 | 0 |
Amortization of prior service credit | 1 | 0 | 1 | 0 |
Net periodic cost (credit) | 3 | 2 | 27 | 9 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 0 | 0 | 1 | 1 |
Amortization of prior service credit | (1) | (6) | (6) | (18) |
Net periodic cost (credit) | $ (1) | $ (6) | $ (5) | $ (17) |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans (Narrative) (Details) - Pension Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0 | $ 9 | $ 12 | $ 27 |
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 3 | $ 3 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Other Comprehensive Income Loss [Line Items] | ||||
Total Other Comprehensive Income (Loss), Before Tax | $ (6) | $ (45) | $ 7 | $ (40) |
Total Other Comprehensive Income (Loss), Tax | (4) | 7 | 2 | 6 |
Total Other Comprehensive Income (Loss), Net of Taxes | (10) | (38) | 9 | (34) |
Derivatives accounted for as cash flow hedges: | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 4 | (13) | (26) | (13) |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | (2) | 4 | 6 | 4 |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 2 | (9) | (20) | (9) |
Derivatives accounted for as cash flow hedges: | Interest Expense [Member] | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 1 | 0 | 1 | 0 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | 1 | 0 | 1 | 0 |
Derivatives accounted for as cash flow hedges: | Cost of Sales | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 3 | 0 | 15 | 3 |
Reclassification from AOCI, Current Period, Tax | (2) | 0 | (4) | (1) |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | 1 | 0 | 11 | 2 |
Investments: | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 1 | (1) | 3 | (1) |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | 0 | (1) | 0 |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 1 | (1) | 2 | (1) |
Currency translation: | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | (15) | (33) | 19 | (27) |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | 1 | (1) | 1 |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | (15) | (32) | 18 | (26) |
Currency translation: | Cost of Sales | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 0 | 7 | 0 | 7 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | 0 | 7 | 0 | 7 |
Postretirement benefits: | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 0 | (5) | (28) | (9) |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | 2 | 8 | 2 |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 0 | (3) | (20) | (7) |
Postretirement benefits: | Other income/expense | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 0 | 0 | 23 | 0 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | (6) | 0 |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | $ 0 | $ 0 | $ 17 | $ 0 |
Segment Reporting (Segment Repo
Segment Reporting (Segment Reporting Information, By Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||||||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 29, 2019 | Jun. 30, 2018 | ||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | $ 10,885 | $ 10,051 | $ 31,521 | $ 30,053 | ||||||
Operating Income (Loss) | 781 | 797 | 2,223 | 2,213 | ||||||
Total other expense | 57 | 74 | 258 | 225 | ||||||
Income before income taxes | 724 | 723 | 1,965 | 1,988 | ||||||
Beef | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 4,157 | 11,967 | ||||||||
Pork | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 1,323 | 3,674 | ||||||||
Chicken | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 3,331 | 9,853 | ||||||||
Prepared Foods | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 2,089 | 6,265 | ||||||||
Corporate and Other [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 356 | 776 | ||||||||
Operating Segments [Member] | Beef | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 4,157 | 3,993 | 11,967 | 11,560 | ||||||
Operating Income (Loss) | 270 | 318 | 731 | 666 | ||||||
Operating Segments [Member] | Pork | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 1,323 | 1,197 | 3,674 | 3,745 | ||||||
Operating Income (Loss) | 42 | 67 | 237 | 285 | ||||||
Operating Segments [Member] | Chicken | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 3,331 | 2,973 | 9,853 | 8,929 | ||||||
Operating Income (Loss) | 230 | [1] | 189 | 531 | [1] | 692 | ||||
Operating Segments [Member] | Prepared Foods | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 2,089 | 2,132 | 6,265 | 6,571 | ||||||
Operating Income (Loss) | 229 | 238 | [2] | 739 | 613 | [2] | ||||
Segment Reconciling Items [Member] | Corporate and Other [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 356 | 75 | 776 | 245 | ||||||
Operating Income (Loss) | [3] | 10 | (15) | (15) | (43) | |||||
Business Combination, Integration Related Costs | 10 | 5 | 15 | 58 | ||||||
Intersegment Elimination | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | (371) | (319) | (1,014) | (997) | ||||||
Intersegment Elimination | Beef | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | (111) | (112) | (301) | (311) | ||||||
Intersegment Elimination | Pork | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | (246) | (188) | (671) | (620) | ||||||
Intersegment Elimination | Chicken | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | $ (15) | $ (19) | (42) | (66) | ||||||
Keystone Foods [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | $ 1,362 | |||||||||
Keystone Foods [Member] | Operating Segments [Member] | Chicken | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Business Acquisition, Expense from Purchase Accounting and Acquisition Related Costs | 13 | |||||||||
Keystone Foods [Member] | Segment Reconciling Items [Member] | Corporate and Other [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Business Acquisition, Expense from Purchase Accounting and Acquisition Related Costs | $ 24 | |||||||||
Sara Lee® Frozen Bakery and Van’s® businesses [Member] | Cost of Sales | Non-Protein Business [Member] | Prepared Foods | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Asset Impairment Charges | 101 | |||||||||
Non-Protein Business [Member] | Cost of Sales | Non-Protein Business [Member] | Prepared Foods | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Asset Impairment Charges, Net of (Gain) Loss on Disposition of Business | $ 79 | |||||||||
[1] | (a) Chicken operating income includes $13 million in Keystone Foods purchase accounting and acquisition related costs for the nine months ended June 29, 2019 | |||||||||
[2] | (b) Prepared Foods operating income includes a $79 million impairment net of a realized gain associated with the divestiture of non-protein businesses for the nine months ended June 30, 2018. | |||||||||
[3] | (c) Other operating results include $24 million in Keystone Foods purchase accounting and acquisition related costs for the nine months ended June 29, 2019 , and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $10 million and $5 million for the three months ended June 29, 2019 , and June 30, 2018 , respectively, and $15 million and $13 million for the nine months ended June 29, 2019 , and June 30, 2018 , respectively. |
Segment Reporting Disaggregatio
Segment Reporting Disaggregation of Revenue (By Segment and Distribution Channel) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Sales | $ 10,885 | $ 10,051 | $ 31,521 | $ 30,053 | |
Beef | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 4,157 | 11,967 | |||
Pork | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 1,323 | 3,674 | |||
Chicken | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 3,331 | 9,853 | |||
Prepared Foods | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 2,089 | 6,265 | |||
Corporate and Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 356 | 776 | |||
Retail | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [1] | 4,878 | 14,511 | ||
Retail | Beef | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [1] | 1,966 | 5,628 | ||
Retail | Pork | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [1] | 365 | 1,036 | ||
Retail | Chicken | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [1] | 1,369 | 4,204 | ||
Retail | Prepared Foods | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [1] | 1,178 | 3,643 | ||
Retail | Corporate and Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [1] | 0 | 0 | ||
Foodservice | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [2] | 3,313 | 9,552 | ||
Foodservice | Beef | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [2] | 1,050 | 3,124 | ||
Foodservice | Pork | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [2] | 110 | 294 | ||
Foodservice | Chicken | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [2] | 1,330 | 3,767 | ||
Foodservice | Prepared Foods | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [2] | 823 | 2,367 | ||
Foodservice | Corporate and Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [2] | 0 | 0 | ||
International | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [3] | 1,450 | 3,862 | ||
International | Beef | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [3] | 648 | 1,849 | ||
International | Pork | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [3] | 243 | 678 | ||
International | Chicken | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [3] | 177 | 489 | ||
International | Prepared Foods | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [3] | 26 | 70 | ||
International | Corporate and Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [3] | 356 | 776 | ||
Industrial and Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [4] | 1,244 | 3,596 | ||
Industrial and Other | Beef | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [4] | 382 | 1,065 | ||
Industrial and Other | Pork | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [4] | 360 | 995 | ||
Industrial and Other | Chicken | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [4] | 440 | 1,351 | ||
Industrial and Other | Prepared Foods | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [4] | 62 | 185 | ||
Industrial and Other | Corporate and Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | [4] | 0 | 0 | ||
Intersegment Elimination | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 0 | 0 | |||
Intersegment Elimination | Beef | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 111 | 301 | |||
Intersegment Elimination | Pork | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 245 | 671 | |||
Intersegment Elimination | Chicken | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 15 | 42 | |||
Intersegment Elimination | Prepared Foods | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 0 | 0 | |||
Intersegment Elimination | Corporate and Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | 0 | 0 | |||
Intersegment Elimination | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | (371) | (319) | (1,014) | (997) | |
Intersegment Elimination | Beef | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | (111) | (112) | (301) | (311) | |
Intersegment Elimination | Pork | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | (246) | (188) | (671) | (620) | |
Intersegment Elimination | Chicken | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | (15) | $ (19) | (42) | $ (66) | |
Intersegment Elimination | Intersegment Elimination | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales | $ (371) | $ (1,014) | |||
[1] | (a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers | ||||
[2] | (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. | ||||
[3] | (c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products. | ||||
[4] | (d) Includes sales to industrial food processing companies that further process our product to sell to end consumers and any remaining sales not included in the Consumer Products, Foodservice or International categories. |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 29, 2019USD ($)Segments | Jun. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Operating Segments | Segments | 4 | |||
Sales | $ 10,885 | $ 10,051 | $ 31,521 | $ 30,053 |
Beef | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 4,157 | 11,967 | ||
Pork | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,323 | 3,674 | ||
Chicken | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3,331 | 9,853 | ||
Prepared Foods | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,089 | 6,265 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 356 | 776 | ||
Segment Reconciling Items [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Business Combination, Integration Related Costs | 10 | 5 | 15 | 58 |
Sales | 356 | 75 | 776 | 245 |
Intersegment Elimination | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (371) | (319) | (1,014) | (997) |
Intersegment Elimination | Beef | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (111) | (112) | (301) | (311) |
Intersegment Elimination | Pork | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (246) | (188) | (671) | (620) |
Intersegment Elimination | Chicken | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ (15) | $ (19) | $ (42) | (66) |
Non-Protein Business [Member] | Cost of Sales | Non-Protein Business [Member] | Prepared Foods | ||||
Segment Reporting Information [Line Items] | ||||
Asset Impairment Charges, Net of (Gain) Loss on Disposition of Business | $ 79 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) - USD ($) | 9 Months Ended | |
Jun. 29, 2019 | Sep. 29, 2018 | |
Guarantor Obligations [Line Items] | ||
Potential maximum obligation under cash flow assistance programs | $ 300,000,000 | |
Total receivables under cash flow assistance programs | 8,000,000 | $ 6,000,000 |
Uncollectible receivables estimated under cash flow assistance programs | 0 | |
Guarantor Obligations, Current Carrying Value | 0 | |
Industrial Revenue Bonds [Member] | ||
Guarantor Obligations [Line Items] | ||
Industrial Revenue Bonds | 698,000,000 | |
Lease Residual Value Guarantees [Domain] | ||
Guarantor Obligations [Line Items] | ||
Maximum potential amount | $ 91,000,000 | |
Guarantee Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Period | 10 years | |
Maximum [Member] | Lease Residual Value Guarantees [Domain] | ||
Guarantor Obligations [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 10 years |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) | Dec. 21, 2016USD ($)Plantiffs | Dec. 21, 2016PHP (₱)Plantiffs | Nov. 29, 2016USD ($)Plantiffs | Nov. 29, 2016PHP (₱)Plantiffs | Jun. 23, 2014USD ($) | Jun. 23, 2014PHP (₱) | Aug. 31, 2017USD ($) | Dec. 31, 2004USD ($) | Dec. 31, 2004PHP (₱) |
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Damages Awarded, Value | $ 290,000,000 | ₱ 14,858,495,937 | $ 6,700,000 | ₱ 3,453,664,710 | |||||
Loss Contingency, Number of Plaintiffs, Award Increase | 4,922 | 4,922 | |||||||
Estimated Percentage of Settling Complainants | 18.00% | 18.00% | |||||||
Loss Contingency, Number of Plaintiffs | 5,984 | 5,984 | 5,984 | 5,984 | |||||
Loss Contingency, Damages Paid Per Complainant | $ 1,300 | ₱ 68,000 | |||||||
Mark Lopez Case [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Damages Awarded, Value | $ | $ 13,000,000 | ||||||||
Maximum [Member] | Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount requested by respondent | $ 67,000,000 | ₱ 342,287,800 |