TYSON FOODS INC, 10-K filed on 11/21/2016
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Oct. 1, 2016
Oct. 29, 2016
Class A [Member]
Apr. 2, 2016
Class A [Member]
Oct. 29, 2016
Class B [Member]
Apr. 2, 2016
Class B [Member]
Entity Registrant Name
TYSON FOODS INC 
 
 
 
 
Entity Central Index Key
0000100493 
 
 
 
 
Current Fiscal Year End Date
--10-01 
 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
 
Document Type
10-K 
 
 
 
 
Document Period End Date
Oct. 01, 2016 
 
 
 
 
Document Fiscal Year Focus
2016 
 
 
 
 
Document Fiscal Period Focus
FY 
 
 
 
 
Amendment Flag
false 
 
 
 
 
Entity Common Stock, Shares Outstanding
 
290,558,412 
 
70,010,755 
 
Entity Well-known Seasoned Issuer
No 
 
 
 
 
Entity Voluntary Filers
No 
 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
 
Entity Public Float
 
 
$ 20,012,635,241 
 
$ 732,308 
Consolidated Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Sales
$ 36,881 
$ 41,373 
$ 37,580 
Cost of Sales
32,184 
37,456 
34,895 
Gross Profit
4,697 
3,917 
2,685 
Operating Expenses:
 
 
 
Selling, General and Administrative
1,864 
1,748 
1,255 
Operating Income
2,833 
2,169 
1,430 
Other (Income) Expense:
 
 
 
Interest income
(6)
(9)
(7)
Interest expense
249 
293 
132 
Other, net
(8)
(36)
53 
Total Other (Income) Expense
235 
248 
178 
Income from Continuing Operations before Income Taxes
2,598 
1,921 
1,252 
Income Tax Expense
826 
697 
396 
Net Income
1,772 
1,224 
856 
Net income (loss) attributable to noncontrolling interest
4 
4 
(8)
Net Income Attributable to Tyson
$ 1,768 
$ 1,220 
$ 864 
Weighted Average Shares Outstanding:
 
 
 
Diluted
390 
413 
364 
Net Income Per Share Attributable to Tyson:
 
 
 
Diluted (USD per share)
$ 4.53 
$ 2.95 
$ 2.37 
Class A [Member]
 
 
 
Weighted Average Shares Outstanding:
 
 
 
Basic
315 
335 
284 
Net Income Per Share Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 4.67 
$ 3.06 
$ 2.48 
Dividends Declared Per Share:
 
 
 
Dividends Declared (USD per share)
$ 0.650 
$ 0.425 
$ 0.325 
Class B [Member]
 
 
 
Weighted Average Shares Outstanding:
 
 
 
Basic
70 
70 
70 
Net Income Per Share Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 4.24 
$ 2.79 
$ 2.26 
Dividends Declared Per Share:
 
 
 
Dividends Declared (USD per share)
$ 0.585 
$ 0.383 
$ 0.294 
Consolidated Statements of Comprehensive Income Statement (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
Net Income
$ 1,772 
$ 1,224 
$ 856 
Other Comprehensive Income (Loss), Net of Taxes:
 
 
 
Derivatives accounted for as cash flow hedges
(1)
2 
1 
Investments
0 
(1)
4 
Currency translation
4 
36 
(30)
Postretirement benefits
42 
20 
(14)
Total Other Comprehensive Income (Loss), Net of Taxes
45 
57 
(39)
Comprehensive Income
1,817 
1,281 
817 
Less: Comprehensive Income Attributable to Noncontrolling Interests
4 
4 
(8)
Comprehensive Income Attributable to Tyson
$ 1,813 
$ 1,277 
$ 825 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Assets
 
 
Cash and cash equivalents
$ 349 
$ 688 
Accounts receivable, net
1,542 
1,620 
Inventories
2,732 
2,878 
Other current assets
265 
195 
Total Current Assets
4,888 
5,381 
Net Property, Plant and Equipment
5,170 
5,176 
Goodwill
6,669 
6,667 
Intangible Assets
5,084 
5,168 
Other Assets
562 
577 
Total Assets
22,373 
22,969 
Liabilities and Shareholders’ Equity
 
 
Current debt
79 
715 
Accounts payable
1,511 
1,662 
Other current liabilities
1,172 
1,158 
Total Current Liabilities
2,762 
3,535 
Long-Term Debt
6,200 
5,975 
Deferred Income Taxes
2,545 
2,449 
Other Liabilities
1,242 
1,304 
Commitments and Contingencies (Note 20)
   
   
Shareholders' Equity:
 
 
Capital in excess of par value
4,355 
4,307 
Retained earnings
8,348 
6,813 
Accumulated other comprehensive loss
(45)
(90)
Treasury stock, at cost - 73 million shares at October 1, 2016 and 47 million shares in October 3, 2015
(3,093)
(1,381)
Total Tyson Shareholders’ Equity
9,608 
9,691 
Noncontrolling Interests
16 
15 
Total Shareholders’ Equity
9,624 
9,706 
Total Liabilities and Shareholders’ Equity
22,373 
22,969 
Class A [Member]
 
 
Shareholders' Equity:
 
 
Common stock ($0.10 par value):
36 
35 
Total Tyson Shareholders’ Equity
36 
35 
Class B [Member]
 
 
Shareholders' Equity:
 
 
Common stock ($0.10 par value):
7 
7 
Total Tyson Shareholders’ Equity
$ 7 
$ 7 
Consolidated Balance Sheets (Parentheticals) (USD $)
Oct. 1, 2016
Oct. 3, 2015
Treasury Stock, shares
73,000,000 
47,000,000 
Class A [Member]
 
 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
900,000,000 
900,000,000 
Common stock, shares issued
364,000,000 
346,000,000 
Class B [Member]
 
 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
900,000,000 
900,000,000 
Common stock, shares issued
70,000,000 
70,000,000 
Consolidated Statements Of Shareholders' Equity (USD $)
In Millions, unless otherwise specified
Total
USD ($)
Capital In Excess Of Par Value [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Member]
USD ($)
Treasury Stock [Member]
USD ($)
Shareholders' Equity Attributable To Tyson [Member]
USD ($)
Equity Attributable To Noncontrolling Interests [Member]
USD ($)
2008 Warrants [Member]
Capital In Excess Of Par Value [Member]
USD ($)
2008 Warrants [Member]
Treasury Stock [Member]
USD ($)
3.25% Convertible senior notes due October 2013 [Member]
Capital In Excess Of Par Value [Member]
USD ($)
3.25% Convertible senior notes due October 2013 [Member]
Treasury Stock [Member]
USD ($)
Class A [Member]
USD ($)
Class A [Member]
2008 Warrants [Member]
Class A [Member]
3.25% Convertible senior notes due October 2013 [Member]
Class B [Member]
USD ($)
Balance at beginning of year, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 28, 2013
 
 
 
 
 
 
$ 32 
 
 
 
 
 
 
 
 
Balance at beginning of year, Shareholders' Equity Attributable to Tyson at Sep. 28, 2013
 
2,292 
4,999 
(108)
(1,021)
 
 
 
 
 
 
32 
 
 
 
Balance at beginning of year, Common Stock shares at Sep. 28, 2013
 
 
 
 
 
 
 
 
 
 
 
322 
 
 
 
Balance at beginning of year, Treasury Stock shares at Sep. 28, 2013
 
 
 
 
48 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Class A common stock, shares
 
 
 
 
 
 
 
 
 
 
 
24.0 
 
 
 
Issuance of Class A common stock
 
870 
 
 
 
 
 
 
 
 
 
3 
 
 
 
Issuance of tangible equity units
 
1,255 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement
 
 
 
 
 
 
 
 
 
(248)
248 
 
 
 
 
Convertible note hedge settlement
 
 
 
 
 
 
 
 
 
341 
(341)
 
 
 
 
Warrant settlement
 
 
 
 
 
 
 
(289)
289 
 
 
 
 
 
 
Stock-based compensation
 
36 
 
 
110 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Tyson
864 
 
864 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
 
 
(115)
 
 
 
 
 
 
 
 
(94)
 
 
(21)
Other Comprehensive Income (Loss)
(39)
 
 
(39)
 
 
 
 
 
 
 
 
 
 
 
Purchase of Class A common stock, shares
 
 
 
 
8.0 
 
 
 
 
 
 
8.3 
 
 
 
Purchase of Class A common stock
 
 
 
 
(295)
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement, shares
 
 
 
 
 
 
 
 
 
 
(12.0)
 
 
 
 
Convertible note hedge settlement, shares
 
 
 
 
 
 
 
 
 
 
12.0 
 
 
 
 
Warrant settlement, shares
 
 
 
 
 
 
 
 
(12.0)
 
 
 
 
 
 
Stock-based compensation, shares
 
 
 
 
(4)
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to noncontrolling interests
8 
 
 
 
 
 
(8)
 
 
 
 
 
 
 
 
Contributions by noncontrolling interest
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interest
 
 
 
 
 
 
(11)
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
1 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 27, 2014
 
 
 
 
 
 
14 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Tyson at Sep. 27, 2014
 
4,257 
5,748 
(147)
(1,010)
8,890 
 
 
 
 
 
35 
 
 
7 
Balance at end of year, Total Shareholders' Equity at Sep. 27, 2014
8,904 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of year, Common Stock shares at Sep. 27, 2014
 
 
 
 
 
 
 
 
 
 
 
346 
 
 
70 
Balance at end of year, Treasury Stock shares at Sep. 27, 2014
 
 
 
 
40 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Class A common stock, shares
 
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
Issuance of Class A common stock
 
0 
 
 
 
 
 
 
 
 
 
0 
 
 
 
Issuance of tangible equity units
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
Convertible note hedge settlement
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
Warrant settlement
 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
Stock-based compensation
 
50 
 
 
124 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Tyson
1,220 
 
1,220 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
 
 
(155)
 
 
 
 
 
 
 
 
(129)
 
 
(26)
Other Comprehensive Income (Loss)
57 
 
 
57 
 
 
 
 
 
 
 
 
 
 
 
Purchase of Class A common stock, shares
 
 
 
 
12.0 
 
 
 
 
 
 
11.9 
 
 
 
Purchase of Class A common stock
 
 
 
 
(495)
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement, shares
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
 
Convertible note hedge settlement, shares
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
 
Warrant settlement, shares
 
 
 
 
 
 
 
 
0 
 
 
 
 
 
 
Stock-based compensation, shares
 
 
 
 
(5)
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to noncontrolling interests
(4)
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
Contributions by noncontrolling interest
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interest
 
 
 
 
 
 
(1)
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
(2)
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Oct. 03, 2015
15 
 
 
 
 
 
15 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Tyson at Oct. 03, 2015
9,691 
4,307 
6,813 
(90)
(1,381)
9,691 
 
 
 
 
 
35 
 
 
7 
Balance at end of year, Total Shareholders' Equity at Oct. 03, 2015
9,706 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of year, Common Stock shares at Oct. 03, 2015
 
 
 
 
 
 
 
 
 
 
 
346 
 
 
70 
Balance at end of year, Treasury Stock shares at Oct. 03, 2015
47 
 
 
 
47 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Class A common stock, shares
 
 
 
 
 
 
 
 
 
 
 
18.0 
 
 
 
Issuance of Class A common stock
 
0 
 
 
 
 
 
 
 
 
 
1 
 
 
 
Issuance of tangible equity units
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
Convertible note hedge settlement
 
 
 
 
 
 
 
 
 
0 
0 
 
 
 
 
Warrant settlement
 
 
 
 
 
 
 
0 
0 
 
 
 
 
 
 
Stock-based compensation
 
48 
 
 
232 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Tyson
1,768 
 
1,768 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
 
 
(233)
 
 
 
 
 
 
 
 
(192)
 
 
(41)
Other Comprehensive Income (Loss)
45 
 
 
45 
 
 
 
 
 
 
 
 
 
 
 
Purchase of Class A common stock, shares
 
 
 
 
32.0 
 
 
 
 
 
 
32.1 
 
 
 
Purchase of Class A common stock
 
 
 
 
(1,944)
 
 
 
 
 
 
 
 
 
 
Convertible debt settlement, shares
 
 
 
 
 
 
 
 
 
 
0 
(18.8)
 
 
 
Convertible note hedge settlement, shares
 
 
 
 
 
 
 
 
 
 
0 
 
 
 
 
Warrant settlement, shares
 
 
 
 
 
 
 
 
0 
 
 
 
 
 
 
Stock-based compensation, shares
 
 
 
 
(6)
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to noncontrolling interests
(4)
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
Contributions by noncontrolling interest
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interest
 
 
 
 
 
 
(3)
 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Oct. 01, 2016
16 
 
 
 
 
 
16 
 
 
 
 
 
 
 
 
Balance at end of year, Shareholders' Equity Attributable to Tyson at Oct. 01, 2016
9,608 
4,355 
8,348 
(45)
(3,093)
9,608 
 
 
 
 
 
36 
 
 
7 
Balance at end of year, Total Shareholders' Equity at Oct. 01, 2016
$ 9,624 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of year, Common Stock shares at Oct. 01, 2016
 
 
 
 
 
 
 
 
 
 
 
364 
 
 
70 
Balance at end of year, Treasury Stock shares at Oct. 01, 2016
73 
 
 
 
73 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Cash Flows From Operating Activities:
 
 
 
Net Income
$ 1,772 
$ 1,224 
$ 856 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
Depreciation
617 
609 
494 
Amortization
88 
102 
36 
Deferred income taxes
84 
38 
(105)
Convertible debt discount
0 
0 
(92)
Gain on disposition of Business
0 
(177)
0 
Impairment of assets
45 
285 
107 
Share-based Compensation
81 
69 
51 
Other, net
(34)
71 
(20)
Increase in accounts receivable
73 
66 
(93)
(Increase) decrease in inventories
148 
220 
(148)
Increase (decrease) in accounts payable
(130)
(162)
202 
Increase (decrease) in income taxes payable/receivable
(19)
177 
(133)
Increase (decrease) in interest payable
(1)
(23)
5 
Net changes in other operating assets and liabilities
(8)
71 
18 
Cash Provided by Operating Activities
2,716 
2,570 
1,178 
Cash Flows from Investing Activities:
 
 
 
Additions to property, plant and equipment
(695)
(854)
(632)
Purchases of marketable securities
(46)
(38)
(18)
Proceeds from sale of marketable securities
37 
52 
33 
Acquisitions, net of cash acquired
0 
0 
(8,193)
Proceeds from Divestiture of Businesses, Net of Cash Divested
0 
539 
0 
Other, net
20 
31 
10 
Cash Provided by (Used for) Investing Activities
(684)
(270)
(8,800)
Cash Flows from Financing Activities:
 
 
 
Payments on debt
(714)
(1,995)
(639)
Proceeds from issuance of long-term debt
1 
501 
5,576 
Borrowings on revolving credit facility
1,065 
1,345 
0 
Payments on revolving credit facility
(765)
(1,345)
0 
Proceeds from Issuance of Debt Component of Tangible Equity Units
0 
0 
205 
Proceeds from issuance of common stock, net of issuance costs
0 
0 
873 
Proceeds from issuance of equity component of tangible equity units
0 
0 
1,255 
Purchases of Tyson Class A common stock
(1,944)
(495)
(295)
Dividends
(216)
(147)
(104)
Stock options exercised
128 
84 
67 
Other, net
68 
17 
(23)
Cash Provided by (Used for) Financing Activities
(2,377)
(2,035)
6,915 
Effect of Exchange Rate Change on Cash
6 
(15)
0 
Increase (Decrease) in Cash and Cash Equivalents
(339)
250 
(707)
Cash and Cash Equivalents at Beginning of Year
688 
438 
1,145 
Cash and Cash Equivalents at End of Period
$ 349 
$ 688 
$ 438 
Business And Summary Of Significant Accounting Policies
Business And Summary Of Significant Accounting Policies
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business: Tyson Foods, Inc. (collectively, “Company,” “we,” “us” or “our”), founded in 1935 with world headquarters in Springdale, Arkansas, is one of the world's largest food companies with leading brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee®, Ball Park®, Wright®, Aidells® and State Fair®. We are a recognized market leader in chicken, beef and pork as well as prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, tortillas and desserts.
Consolidation: The consolidated financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Fiscal Year: We utilize a 52- or 53-week accounting period ending on the Saturday closest to September 30. The Company’s accounting cycle resulted in a 52-week year for fiscal 2016 and fiscal 2014 and a 53-week year for fiscal 2015.
Cash and Cash Equivalents: Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as part of our cash management activity. The carrying values of these assets approximate their fair values. We primarily utilize a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts where funds are moved to, and several zero-balance disbursement accounts for funding payroll, accounts payable, livestock procurement, grower payments, etc. As a result of our cash management system, checks issued, but not presented to the banks for payment, may result in negative book cash balances. These negative book cash balances are included in accounts payable and other current liabilities. At October 1, 2016, and October 3, 2015, checks outstanding in excess of related book cash balances totaled approximately $261 million and $257 million, respectively.
Accounts Receivable: We record accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, level of past due accounts and relationships with and economic status of our customers. At October 1, 2016, and October 3, 2015, our allowance for uncollectible accounts was $33 million and $27 million, respectively. We generally do not have collateral for our receivables, but we do periodically evaluate the credit worthiness of our customers.
Inventories: Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
In fiscal 2016, 61% of the cost of inventories was determined by the first-in, first-out ("FIFO") method as compared to 63% in fiscal 2015. The remaining cost of inventories for both years is determined by the weighted-average method.
The following table reflects the major components of inventory at October 1, 2016, and October 3, 2015:
 
 
 
in millions

 
2016

 
2015

Processed products
$
1,530

 
$
1,631

Livestock
772

 
831

Supplies and other
430

 
416

Total inventory
$
2,732

 
$
2,878


Property, Plant and Equipment: Property, plant and equipment are stated at cost and generally depreciated on a straight-line method over the estimated lives for buildings and leasehold improvements of 10 to 33 years, machinery and equipment of three to 12 years and land improvements and other of three to 20 years. Major repairs and maintenance costs that significantly extend the useful life of the related assets are capitalized. Normal repairs and maintenance costs are charged to operations.
We review the carrying value of long-lived assets at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest, taxes, depreciation and amortization. We measure impairment as the excess of carrying value over the fair value of an asset. The fair value of an asset is measured using discounted cash flows including market participant assumptions of future operating results and discount rates.
Goodwill and Intangible Assets: Definite life intangibles are initially recorded at fair value and amortized over the estimated period of benefit. Brands and trademarks are generally based on the straight-line method over 20 years or less. Customer relationships are generally amortized over seven to 17 years based on the pattern of revenue expected to be generated from the use of the asset. Amortization expense is generally recognized in selling, general, and administrative expense. We review the carrying value of definite life intangibles at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest, taxes, depreciation and amortization. We measure impairment as the excess of carrying value over the fair value of the definite life intangible asset. We use various valuation techniques to estimate fair value, with the primary techniques being discounted cash flows, relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
Goodwill and indefinite life intangible assets are initially recorded at fair value and not amortized, but are reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, the fair value of the reporting unit may be more likely than not less than carrying amount, or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test.
The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the quantitative impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied fair value of goodwill exceeds the carrying amount, then goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was determined as the exit price a market participant would pay for the same business). We have elected to make the first day of the fourth quarter the annual impairment assessment date for goodwill and indefinite life intangible assets.
We estimate the fair value of our reporting units using a discounted cash flow analysis, which uses significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. This analysis requires us to make various judgmental estimates and assumptions about sales, operating margins, growth rates and discount factors and is believed to reflect market participant views which would exist in an exit transaction. Generally, we utilize normalized operating margin assumptions based on future expectations and operating margins historically realized in the reporting units' industries. Some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management, including interest rates, cost of capital, tax rates and credit ratings. While we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If our actual results are not consistent with our estimates and assumptions used to calculate fair value, we may be required to perform the second step of the quantitative test in future years, which could result in material impairments of our goodwill.
The discount rate used in our annual goodwill impairment test decreased to 6.2% in fiscal 2016 from 6.8% in fiscal 2015. The discount rate used in our indefinite life intangible test decreased to 7.9% in fiscal 2016 from 8.0% in fiscal 2015.
During fiscal 2016, 2015 and 2014, all of our material reporting units that underwent a quantitative test passed the first step of the goodwill impairment analysis and therefore, the second step was not necessary. In fiscal 2015, we recorded a $23 million full impairment of an immaterial reporting unit’s goodwill.
For our indefinite life intangible assets, a qualitative assessment can also be performed to determine whether the existence of events and circumstances indicates it is more likely than not an intangible asset is impaired. Similar to goodwill, we can also elect to forgo the qualitative test for indefinite life intangible assets and perform the quantitative test. Upon performing the quantitative test, if the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
The fair value of our indefinite life intangible assets is calculated principally using relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy, and is believed to reflect market participant views which would exist in an exit transaction. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
Investments: We have investments in joint ventures and other entities. We generally use the cost method of accounting when our voting interests are less than 20 percent. We use the equity method of accounting when our voting interests are in excess of 20 percent and we do not have a controlling interest or a variable interest in which we are the primary beneficiary. Investments in joint ventures and other entities are reported in the Consolidated Balance Sheets in Other Assets.
We also have investments in marketable debt securities. We have determined all of our marketable debt securities are available-for-sale investments. These investments are reported at fair value based on quoted market prices as of the balance sheet date, with unrealized gains and losses, net of tax, recorded in other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is recorded in interest income. The cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of debt securities and declines in value judged to be other than temporary are recorded on a net basis in other income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.
Accrued Self-Insurance: We use a combination of insurance and self-insurance mechanisms in an effort to mitigate the potential liabilities for health and welfare, workers’ compensation, auto liability and general liability risks. Liabilities associated with our risks retained are estimated, in part, by considering claims experience, demographic factors, severity factors and other actuarial assumptions.
Other Current Liabilities: Other current liabilities at October 1, 2016, and October 3, 2015, include:
 
in millions
 
 
2016

 
2015

Accrued salaries, wages and benefits
$
563

 
$
478

Accrued marketing, advertising and promotion expense
212

 
192

Other
397

 
488

Total other current liabilities
$
1,172

 
$
1,158


Defined Benefit Plans: We recognize the funded status of defined pension and postretirement plans in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of the plan assets and the benefit obligation. We measure our plan assets and liabilities at the end of our fiscal year. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any other defined benefit postretirement plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement benefit obligation. Any overfunded status is recognized as an asset and any underfunded status is recognized as a liability. Any transitional asset/liability, prior service cost or actuarial gain/loss that has not yet been recognized as a component of net periodic cost is recognized in accumulated other comprehensive income. Accumulated other comprehensive income will be adjusted as these amounts are subsequently recognized as a component of net periodic benefit costs in future periods.
Derivative Financial Instruments: We purchase certain commodities, such as grains and livestock in the course of normal operations. As part of our commodity risk management activities, we use derivative financial instruments, primarily futures and options, to reduce our exposure to various market risks related to these purchases, as well as to changes in foreign currency exchange rates. Contract terms of a financial instrument qualifying as a hedge instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. Contracts designated and highly effective at meeting risk reduction and correlation criteria are recorded using hedge accounting. If a derivative instrument is accounted for as a hedge, changes in the fair value of the instrument will be offset either against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is immediately recognized in earnings as a component of cost of sales. Instruments we hold as part of our risk management activities that do not meet the criteria for hedge accounting are marked to fair value with unrealized gains or losses reported currently in earnings. Changes in market value of derivatives used in our risk management activities relating to forward sales contracts are recorded in sales, while changes surrounding inventories on hand or anticipated purchases of inventories or supplies are recorded in cost of sales. We generally do not hedge anticipated transactions beyond 18 months.
Litigation Reserves: There are a variety of legal proceedings pending or threatened against us. Accruals are recorded when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated based on current law, progress of each case, opinions and views of legal counsel and other advisers, our experience in similar matters and intended response to the litigation. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment efforts progress or additional information becomes available. We expense amounts for administering or litigating claims as incurred. Accruals for legal proceedings are included in Other current liabilities in the Consolidated Balance Sheets.
Revenue Recognition: We recognize revenue when title and risk of loss are transferred to customers, which is generally on delivery based on terms of sale. Revenue is recognized as the net amount estimated to be received after deducting estimated amounts for discounts, trade allowances and product returns.
Freight Expense: Freight expense associated with products shipped to customers is recognized in cost of sales.
Marketing and Promotion Costs: We promote our products with marketing, advertising, trade promotions, and consumer incentives, which include, but are not limited to, coupons, discounts, rebates, and volume-based incentives. Marketing and promotion expenses are charged to operations in the period incurred. Customer incentive and trade promotion activities are recorded as a reduction to sales based on amounts estimated as being due to customers, based primarily on historical utilization and redemption rates, while other marketing and promotional activities are recorded as selling, general and administrative expense.
Advertising Expenses: Advertising expense is charged to operations in the period incurred and is recorded as selling, general and administrative expense. Advertising expense totaled $238 million, $181 million and $112 million in fiscal 2016, 2015 and 2014, respectively.
Research and Development: Research and development costs are expensed as incurred. Research and development costs totaled $96 million, $75 million and $52 million in fiscal 2016, 2015 and 2014, respectively.
Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements:
In August 2016, the Financial Accounting Standards Board ("FASB") issued guidance which 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. Early adoption is permitted and the retrospective transition method should be applied. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In March 2016, the FASB issued guidance which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows and impact on earnings per share. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018. Early adoption is permitted and the application of the guidance requires various transition methods depending on the specific amendment. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In February 2016, the FASB issued guidance which 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. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In January 2016, the FASB issued guidance that requires most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements on the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. 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 are currently evaluating the impact this guidance will have on our consolidated financial statements.
In July 2015, the FASB issued guidance which requires management to evaluate inventory at the lower of cost and net realizable value. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018. Early adoption is permitted and the prospective transition method should be applied. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In April 2015, the FASB issued guidance on the recognition of fees paid by a customer for cloud computing arrangements. The guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the software license consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017, and should be applied prospectively or retrospectively, of which we will apply prospectively. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.
In February 2015, the FASB issued guidance changing the analysis procedures that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods, beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted and the retrospective or modified retrospective transition method should be applied. This new guidance is not expected to have a material impact on our consolidated financial statements.
In May 2014, the FASB issued guidance changing the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted for fiscal years beginning after December 15, 2016, our fiscal 2018. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
Recently Issued Accounting Pronoucements
Recently Issued Accounting Pronouncements
In November 2015, the FASB issued guidance to simplify the presentation of deferred income taxes. The guidance requires that deferred tax liabilities and assets be classified as non-current in the balance sheet. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018, and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. We early adopted this guidance, prospectively, for the year ended October 1, 2016. As a result, prior period balances were not retrospectively adjusted. The adoption did not have a material impact on our consolidated financial statements.
In May 2015, the FASB issued guidance which removes the requirement to categorize all investments within the fair value hierarchy for which fair values are measured using the net asset value (NAV) per share practical expedient. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted and the retrospective transition method should be applied. We early adopted this guidance, retrospectively, for the year ended October 1, 2016. As a result, investments that are measured using the NAV per share practical expedient have not been categorized in the fair value hierarchy as of October 1, 2016 and October 3, 2015. The adoption did not have a material impact on our consolidated financial statements.
In April 2015, the FASB issued guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability; however, debt issuance costs related to revolving credit facilities will remain in other assets. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017, with early adoption permitted. We early adopted this guidance, retrospectively, for the year ended October 1, 2016. As a result, $29 million and $35 million of deferred issuance costs have been reclassified from Other Assets to Long-Term Debt in our Consolidated Balance Sheets as of October 1, 2016 and October 3, 2015, respectively.
In April 2015, the FASB issued guidance which allows entities with a fiscal year end that does not coincide with a calendar month end to make an accounting policy election to measure defined benefit plan assets and obligations as of the end of the month closest to their fiscal year end. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted and the prospective transition method should be applied. We early adopted this guidance, prospectively, for the year ended October 1, 2016. We have elected to measure the fair value of our defined benefit and other postretirement benefit plans as of the close of business on the Friday prior to our year-end. The adoption did not have a material impact on our consolidated financial statements.
Acquisitions and Dispositions
Acquisitions and Dispositions
ACQUISITIONS AND DISPOSITIONS
Acquisitions
On August 28, 2014, we acquired all of the outstanding stock of The Hillshire Brands Company ("Hillshire Brands") as part of our strategic expansion initiative. The purchase price was equal to $63.00 per share for Hillshire Brands' outstanding common stock, or $8,081 million. In addition, we paid $163 million in cash for breakage costs incurred by Hillshire Brands related to a previously announced acquisition. We funded the acquisition with existing cash on hand, net proceeds from the issuance of new senior notes, Class A common stock (Class A stock), and tangible equity units as well as borrowings under a new term loan facility (refer to Note 6: Debt and Note 7: Equity). Hillshire Brands' results from operations subsequent to the acquisition closing are included in the Prepared Foods segment.

During fiscal 2015, we recorded measurement period adjustments, which reduced goodwill by $14 million, after obtaining additional information regarding, among other things, asset valuations and liabilities assumed. The amount was not considered material and therefore prior periods were not revised. The purchase price allocation was finalized during the fourth quarter of fiscal 2015.
We completed the allocation of goodwill to our segments in the fourth quarter of fiscal 2015 using the with-and-without approach of the synergy impact to fair value of our reporting units. The allocation of goodwill to our Chicken, Beef, Pork, and Prepared Foods segments was $658 million, $113 million, $106 million and $3,913 million, respectively. The fair value of this goodwill is not deductible for United States income tax purposes.
The following unaudited pro forma information presents the combined results of operations as if the acquisition of Hillshire Brands had occurred at the beginning of fiscal 2013. Hillshire Brands' pre-acquisition results have been added to our historical results. The pro forma results contained in the table below include adjustments for amortization of acquired intangibles, depreciation expense, interest expense related to the financing and related income taxes. Any potential cost savings or other operational efficiencies that could result from the acquisition are not included in these pro forma results.
These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor is it necessarily an indication of future operating results.
 
in millions (unaudited)

 
2014

Pro forma sales
$
41,311

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

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


During fiscal 2014 we acquired a value-added food business as part of our strategic expansion initiative, which is included in our Prepared Foods segment. The aggregate purchase price of the acquisition was $56 million, which included $12 million for Property, Plant and Equipment, $27 million allocated to Intangible Assets and $18 million allocated to Goodwill.
Dispositions
In fiscal 2014, we announced our plan to sell our Brazil and Mexico operations, which are included in Other for segment reporting, to JBS SA ("JBS") for $575 million in cash less debt and other adjustments. As a result, we conducted an impairment test and recorded a $39 million impairment charge in the fourth quarter of fiscal 2014 related to our Brazil operation. We completed the sale of the Brazil operation in the first quarter of fiscal 2015 and received net proceeds of $148 million including working capital, net debt adjustments and cash transferred. The sale did not result in a significant gain or loss as the carrying value of the Brazil operation approximated the sales proceeds at the time of sale.
We completed the sale of the Mexico operation in the fourth quarter of fiscal 2015 and received net proceeds of approximately $374 million including working capital, net debt adjustments and cash transferred. As a result of the sale, we recorded a pre-tax gain of $161 million, which was reflected in Cost of Sales in our Consolidated Statements of Income. We utilized the net proceeds to retire the 2.75% senior notes due September 2015.
In the fourth quarter of fiscal 2015, to better align our overall production capacity with then-current cattle supplies, we ceased beef operations at our Denison, Iowa plant. As a result, we recorded $12 million in closure and impairment charges during the fourth quarter of fiscal 2015. These charges impacted the Beef segment’s operating income and were reflected in Cost of Sales in our Consolidated Statements of Income.
In the fourth quarter of fiscal 2015, we recorded a $59 million impairment and other related charges associated with a Prepared Foods project designed to optimize the combined Tyson and Hillshire Brands network capacity and to enhance manufacturing efficiencies for the future. These charges were reflected in the Prepared Foods segment’s operating income in the fourth quarter of fiscal 2015, of which $49 million was included in the Consolidated Statements of Income in Cost of Sales and $10 million was included in the Consolidated Statements of Income in Selling, General and Administrative. As a result of this project, we sold our Chicago, Illinois, hospitality plant in June 2016 and closed our Jefferson, Wisconsin, plant in July 2016. The sale of our Chicago, Illinois, plant and closure of our Jefferson, Wisconsin, plant did not have a significant impact on the Company's operating results.
In the third quarter of fiscal 2015, as part of our ongoing efforts to increase efficiencies in our Chicken business, we closed our Buena Vista, Georgia, plant. The closure costs did not have a significant impact on the Company's operating results.
In fiscal 2014, we recorded impairment charges of $52 million related to the closure of three Prepared Foods plants. The Company’s Cherokee, Iowa plant closed in September 2014 and the Buffalo, New York and Santa Teresa, New Mexico plants each closed in January 2015. Additionally, in April 2014, Hillshire Brands announced that it would discontinue all production at its Florence, Alabama plant. The plant closed in December 2014 and the closure costs did not have a significant impact on the Company's financial results.
In fiscal 2014, we sold our 50 percent ownership interest of Dynamic Fuels LLC (Dynamic Fuels) for $30 million cash consideration at closing and up to $35 million in future cash payments contingent on Dynamic Fuels' production volumes over a period of up to 11.5 years. Additionally as part of the terms of the sale, we were released from our guarantee of the $100 million Gulf Opportunity Zone tax-exempt bonds, which were issued in October 2008 to fund a portion of the plant construction costs. Dynamic Fuels previously qualified as a variable interest entity which we consolidated, as we were the primary beneficiary. As a result of the sale, we deconsolidated Dynamic Fuels and recorded a gain of approximately $3 million, which is reflected in Cost of Sales in our Consolidated Statements of Income. We will recognize the future contingent payments in income as the required volumes are produced.
Property, Plant And Equipment
Property, Plant And Equipment
PROPERTY, PLANT AND EQUIPMENT
The following table reflects major categories of property, plant and equipment and accumulated depreciation at October 1, 2016, and October 3, 2015:
 
in millions
 
 
2016

 
2015

Land
$
126

 
$
122

Building and leasehold improvements
3,662

 
3,581

Machinery and equipment
6,789

 
6,452

Land improvements and other
300

 
286

Buildings and equipment under construction
290

 
375

 
11,167

 
10,816

Less accumulated depreciation
5,997

 
5,640

Net property, plant and equipment
$
5,170

 
$
5,176


Approximately $871 million will be required to complete buildings and equipment under construction at October 1, 2016.
Goodwill And Other Intangible Assets
Goodwill And Other Intangible Assets
GOODWILL AND INTANGIBLE ASSETS
The following table reflects goodwill activity for fiscal 2016 and 2015:
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other(a)

 
Unallocated

 
Consolidated

Balance at September 27, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
907

 
$
1,123

 
$
317

 
$
92

 
$
57

 
$
4,804

 
$
7,300

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(34
)
 
—

 
(594
)
 
907

 
563

 
317

 
92

 
23

 
4,804

 
6,706

Fiscal 2015 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Measurement period adjustments
—

 
—

 
—

 
—

 
—

 
(14
)
 
(14
)
Allocation of acquired goodwill
658

 
113

 
106

 
3,913

 
—

 
(4,790
)
 
—

Impairment losses
—

 
—

 
—

 
—

 
(23
)
 
—

 
(23
)
Currency translation and other
(2
)
 
—

 
—

 
—

 
—

 
—

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

 
1,236

 
423

 
4,005

 
57

 
—

 
7,284

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(57
)
 
—

 
(617
)
 
$
1,563

 
$
676

 
$
423

 
$
4,005

 
$
—

 
$
—

 
$
6,667

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2016 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation and other
2

 
—

 
—

 
—

 
—

 
—

 
2

Balance at October 1, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,565

 
1,236

 
423

 
4,005

 
57

 
—

 
7,286

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(57
)
 
—

 
(617
)
 
$
1,565

 
$
676

 
$
423

 
$
4,005

 
$
—

 
$
—

 
$
6,669


(a) Other included the goodwill from our foreign chicken operation.
On August 28, 2014, we acquired and consolidated Hillshire Brands. The unallocated portion of goodwill at September 27, 2014, is attributable to our acquisition of Hillshire Brands. During fiscal 2015, we recorded measurement period adjustments, which reduced goodwill by $14 million and completed the allocation of goodwill to our segments (see Note 3: Acquisitions and Dispositions).
The following table reflects intangible assets by type at October 1, 2016, and October 3, 2015:
in millions
 
 
2016

 
2015

Amortizable intangible assets:
 
 
 
Brands and trademarks
$
590

 
$
594

Customer relationships
564

 
564

Patents, intellectual property and other
114

 
115

Land use rights
9

 
9

  Total gross amortizable intangible assets
$
1,277

 
$
1,282

     Less accumulated amortization
271

 
192

  Total net amortizable intangible assets
$
1,006

 
$
1,090

Brands and trademarks not subject to amortization
4,078

 
4,078

  Total intangible assets
$
5,084

 
$
5,168


Amortization expense of $80 million, $92 million and $26 million was recognized during fiscal 2016, 2015 and 2014, respectively. We estimate amortization expense on intangible assets for the next five fiscal years subsequent to October 1, 2016, will be: 2017 - $78 million; 2018 - $76 million; 2019 - $72 million; 2020 - $69 million; 2021 - $66 million.
Debt
Debt
DEBT
The following table reflects major components of debt as of October 1, 2016, and October 3, 2015:
 
 
 
in millions

 
2016

 
2015

Revolving credit facility
$
300

 
$
—

Senior notes:
 
 
 
6.60% Senior notes due April 2016 (2016 Notes)
—

 
638

7.00% Notes due May 2018
120

 
120

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

 
1,000

4.10% Notes due September 2020
284

 
285

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

 
1,000

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

 
1,250

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032
163

 
163

4.88% Notes due August 2034 (2034 Notes)
500

 
500

5.15% Notes due August 2044 (2044 Notes)
500

 
500

Discount on senior notes
(8
)
 
(10
)
Term loans:
 
 
 
Tranche B due April 2019 (1.69% at 10/1/2016)
500

 
500

Tranche B due August 2019 (2.06% at 10/1/2016)
552

 
552

Amortizing Notes - Tangible Equity Units (see Note 7: Equity)
71

 
140

Other
58

 
69

Unamortized debt issuance costs
(29
)
 
(35
)
Total debt
6,279

 
6,690

Less current debt
79

 
715

Total long-term debt
$
6,200

 
$
5,975

Annual maturities of debt for the five fiscal years subsequent to October 1, 2016, are: 2017 - $79 million; 2018 - $128 million; 2019 - $2,359 million; 2020 - $285 million; 2021 - $10 million.
Revolving Credit Facility
We have a $1.25 billion revolving credit facility that supports short-term funding needs and letters of credit. The facility will mature and the commitments thereunder will terminate in September 2019. After reducing for the amount borrowed and outstanding letters of credit issued under this facility, the amount available for borrowing at October 1, 2016, was $943 million. At October 1, 2016, we had outstanding letters of credit issued under this facility totaling $7 million, none of which were drawn upon. We had an additional $91 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of leasing obligations and workers’ compensation insurance programs.
If in the future 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.
2013 Notes
In September 2008, we issued $458 million principal amount 3.25% convertible senior unsecured notes due October 15, 2013. In connection with the issuance of the 2013 Notes, we entered into separate call option and warrant transactions with respect to our Class A stock to minimize the potential economic dilution upon conversion of the 2013 Notes. The call options contractually expired upon the maturity of the 2013 Notes. The 2013 Notes matured on October 15, 2013 at which time we paid the $458 million principal value with cash on hand and settled the conversion premium by issuing 11.7 million shares of our Class A stock from available treasury shares. Simultaneously with the settlement of the conversion premium, we received 11.7 million shares of our Class A stock from the call options. The warrants were settled on various dates in fiscal 2014 resulting in the issuance of 11.7 million shares of Class A stock.
2016 Notes
On March 31, 2016, we repaid the entire outstanding $638 million principal balance on the 2016 Notes. Tyson Fresh Meats, Inc. (TFM Parent), our wholly owned subsidiary, fully and unconditionally guaranteed the 2016 Notes, 2019 Notes, 2022 Notes, 2024 Notes, 2034 Notes, 2044 Notes, amortizing notes related to our tangible equity units, our $1.25 billion revolving credit facility and term loans. As a result of the retirement of the 2016 Notes in the second quarter of fiscal 2016, all of TFM Parent's guarantees were released and TFM Parent is no longer required to disclose guarantor financial statements.
Term Loans
On May 5, 2016, we amended our existing $500 million tranche B term loan agreement which extended the maturity of the loan from April 2018 to April 2019.
Debt Covenants
Our revolving credit and term loan facilities contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; make acquisitions and investments; dispose of or transfer assets; change the nature of our business; engage in certain transactions with affiliates; and enter into hedging transactions, in each case, subject to certain qualifications and exceptions. In addition, we are required to maintain minimum interest expense coverage and maximum debt-to-capitalization ratios.
Our senior notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens; engage in certain sale/leaseback transactions; and engage in certain consolidations, mergers and sales of assets.
We were in compliance with all debt covenants at October 1, 2016.
Equity
Equity
EQUITY
Capital Stock
We have two classes of capital stock, Class A stock, $0.10 par value and Class B Common Stock, $0.10 par value (Class B stock). Holders of Class B stock may convert such stock into Class A stock on a share-for-share basis. Holders of Class B stock are entitled to 10 votes per share, while holders of Class A stock are entitled to one vote per share on matters submitted to shareholders for approval. As of October 1, 2016, Tyson Limited Partnership (the TLP) owned 99.985% of the outstanding shares of Class B stock and the TLP and members of the Tyson family owned, in the aggregate, 2.06% of the outstanding shares of Class A stock, giving them, collectively, control of approximately 71.18% of the total voting power of the outstanding voting stock.
The Class B stock is considered a participating security requiring the use of the two-class method for the computation of basic earnings per share. The two-class computation method for each period reflects the cash dividends paid for each class of stock, plus the amount of allocated undistributed earnings (losses) computed using the participation percentage, which reflects the dividend rights of each class of stock. Basic earnings per share were computed using the two-class method for all periods presented. The shares of Class B stock are considered to be participating convertible securities since the shares of Class B stock are convertible on a share-for-share basis into shares of Class A stock. Diluted earnings per share were computed assuming the conversion of the Class B shares into Class A shares as of the beginning of each period.
Dividends
Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of the cash dividend paid to holders of Class B stock cannot exceed 90% of the cash dividend simultaneously paid to holders of Class A stock. We pay quarterly cash dividends to Class A and Class B shareholders. We paid Class A dividends per share of $0.60, $0.40, and $0.30 in fiscal 2016, 2015, and 2014, respectively. We paid Class B dividends per share of $0.54, $0.36, and $0.27 in fiscal 2016, 2015, and 2014, respectively. On November 17, 2016, the Board of Directors increased the quarterly dividend previously declared on August 4, 2016, to $0.225 per share on our Class A stock and $0.2025 per share on our Class B stock. The increased quarterly dividend is payable on December 15, 2016, to shareholders of record at the close of business on December 1, 2016.
Share Repurchases
On February 4, 2016, our Board of Directors approved an increase of 50 million shares authorized for repurchase under our share repurchase program. As of October 1, 2016, 40.3 million shares remained available for repurchase. The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, our working capital needs, markets, industry conditions, liquidity targets, limitations under our debt obligations and regulatory requirements. In addition to the share repurchase program, we purchase shares on the open market to fund certain obligations under our equity compensation plans.
A summary of cumulative share repurchases of our Class A stock for fiscal 2016, 2015 and 2014 is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
October 1, 2016
 
October 3, 2015
 
September 27, 2014
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
30.8

 
$
1,868

 
11.0

 
$
455

 
7.1

 
$
250

To fund certain obligations under equity compensation plans
 
1.3

 
76

 
0.9

 
40

 
1.2

 
45

Total share repurchases
 
32.1

 
$
1,944

 
11.9

 
$
495

 
8.3

 
$
295


Subsequent to October 1, 2016, through November 18, 2016, we repurchased approximately 3.6 million shares of our common stock under our share repurchase program. These shares were repurchased for $255 million.
Share Issuance
In fiscal 2014, we issued 23.8 million shares of our Class A stock, to provide funding for the Hillshire Brands acquisition. Total proceeds, net of underwriting discounts and other offering related fees and expenses were $873 million.
Tangible Equity Units
In fiscal 2014, we completed the public issuance of 30 million, 4.75% tangible equity units (TEUs). Total proceeds, net of underwriting discounts and other expenses, were $1,454 million. Each TEU, which has a stated amount of $50, is comprised of a prepaid stock purchase contract and a senior amortizing note due July 15, 2017. We allocated the proceeds from the issuance of the TEUs to equity and debt based on the relative fair values of the respective components of each TEU. The fair value of the prepaid stock purchase contracts, which was $1,295 million, was recorded in Capital in Excess of Par Value, net of issuance costs. The fair value of the senior amortizing notes, which was $205 million, was recorded in debt. Issuance costs associated with the TEU debt were recorded as deferred debt issuance cost and is amortized over the term of the instrument to July 15, 2017.
The aggregate values assigned upon issuance of each component of the TEU's, based on the relative fair value of the respective components of each TEU, were as follows:
 
 
 
in millions, except price per TEU
 
Equity Component
 
Debt Component
 
Total
Price per TEU
$
43.17

 
$
6.83

 
$
50.00

Gross Proceeds
1,295

 
205

 
1,500

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

 
$
199

 
$
1,454


Each senior amortizing note has an initial principal amount of $6.83 and bears interest at 1.5% per annum. On each January 15, April 15, July 15 and October 15, we will pay equal quarterly cash installments of $0.59 per amortizing note which cash payment in the aggregate (principal and interest) is equivalent to 4.75% per year with respect to the $50 stated amount per TEU. Each installment constitutes a payment of interest and partial repayment of principal.
During fiscal 2016, holders settled 17.7 million purchase contracts and, in exchange, the Company issued 18.8 million shares of its Class A stock. Upon early settlement of these purchase contracts, the corresponding amortizing notes remain outstanding and beneficially owned by the holders that settled purchase contracts early. As of October 1, 2016, 12.3 million TEU's remained outstanding. The remaining TEUs will continue to be held pursuant to their original terms and conditions, including automatic settlement on July 15, 2017, as described above. As a result of the purchase contracts tendered in fiscal 2016, our remaining obligation is to deliver between a minimum of 13.1 million shares and a maximum of 16.4 million shares of our Class A stock, subject to adjustment, based upon the Applicable Market Value (as defined below) of our Class A stock as described below:
•
If the Applicable Market Value is equal to or greater than the conversion price of $46.90 per share, we will deliver 1.0660 shares of Class A stock per purchase contract, or a minimum of 13.1 million Class A shares.
•
If the Applicable Market Value is greater than the reference price of $37.52 but less than the conversion price of $46.90 per share, we will deliver a number of shares per purchase contract equal to $50, divided by the Applicable Market Value.
•
If the Applicable Market Value is less than or equal to the reference price of $37.52 per share, we will deliver 1.3326 shares of Class A stock per purchase contract, or a maximum of 16.4 million Class A shares.
The "Applicable Market Value" means the average of the closing prices of our Class A stock on each of the 20 consecutive trading days beginning on, and including, the 23rd scheduled trading day immediately preceding July 15, 2017.
On September 15, 2016, we paid our quarterly dividend to shareholders of record at September 1, 2016, equal to $0.15 per share on our Class A stock. The amount of the distribution exceeded the $0.075 per share dividend threshold amount. Consequently, the settlement rates, reference price and conversion price were adjusted and are reflected above.
The TEUs have a dilutive effect on our earnings per share. The 13.1 million minimum shares to be issued are included in the calculation of Class A Basic weighted average shares. The 3.3 million share difference between the minimum shares and the 16.4 million maximum shares are potentially dilutive securities, and accordingly, are included in our diluted earnings per share on a pro rata basis to the extent the Applicable Market Value is higher than the reference price but is less than the conversion price.
Income Taxes
Income Taxes
INCOME TAXES
Detail of the provision for income taxes from continuing operations consists of the following:
 
 
 
 
 
in millions  

 
2016

 
2015

 
2014

Federal
$
710

 
$
564

 
$
325

State
118

 
89

 
67

Foreign
(2
)
 
44

 
4

 
$
826

 
$
697

 
$
396

 
 
 
 
 
 
Current
$
742

 
$
659

 
$
501

Deferred
84

 
38

 
(105
)
 
$
826

 
$
697

 
$
396


The reasons for the difference between the statutory federal income tax rate and our effective income tax rate from continuing operations are as follows:
 
2016

 
2015

 
2014

Federal income tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes
2.7

 
3.1

 
2.8

Unrecognized tax benefits, net
(1.7
)
 
(1.8
)
 
(4.7
)
Domestic production deduction
(2.6
)
 
(3.7
)
 
(4.0
)
Foreign rate differences and valuation allowances
—

 
3.8

 
2.8

Other
(1.6
)
 
(0.1
)
 
(0.3
)
 
31.8
 %
 
36.3
 %
 
31.6
 %

During fiscal 2016, the domestic production deduction and changes in unrecognized tax benefits decreased tax expense by $68 million and $43 million, respectively, and state tax expense, net of federal tax benefit, was $70 million.
During fiscal 2015, the domestic production deduction and changes in unrecognized tax benefits decreased tax expense by $72 million and $34 million, respectively, and state tax expense, net of federal tax benefit, was $59 million. Additionally, foreign rate differences, mostly driven by the China impairment, unfavorably impacted tax expense by $73 million. The sale of the Mexico and Brazil operations and related repatriation of proceeds did not have a significant impact on the effective income tax rate.
During fiscal 2014 the domestic production deduction and the decrease in unrecognized tax benefits decreased tax expense by $50 million and $58 million, respectively.
Approximately $2,543 million, $1,908 million, and $1,270 million of income from continuing operations before income taxes for fiscal 2016, 2015 and 2014, respectively, were from our operations based in the United States.
We recognize deferred income taxes for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
The tax effects of major items recorded as deferred tax assets and liabilities as of October 1, 2016, and October 3, 2015, are as follows:
 
 
 
 
 
 
 
in millions

 
2016
 
2015
 
Deferred Tax
 
Deferred Tax
 
Assets

 
Liabilities

 
Assets

 
Liabilities

Property, plant and equipment
$
—

 
$
857

 
$
—

 
$
783

Intangible assets
—

 
1,979

 
—

 
2,000

Accrued expenses
400

 
—

 
439

 
—

Net operating loss and other carryforwards
86

 
—

 
97

 
—

Other
140

 
259

 
122

 
238

 
$
626

 
$
3,095

 
$
658

 
$
3,021

Valuation allowance
$
(72
)
 
 
 
$
(68
)
 
 
Net deferred tax liability
 
 
$
2,541

 
 
 
$
2,431


At October 1, 2016, our gross state tax net operating loss carryforwards approximated $845 million and expire in fiscal years 2017 through 2036. Gross foreign net operating loss carryforwards approximated $35 million and expire in fiscal years 2017 through 2022. We also have tax credit carryforwards of approximately $42 million that expire in fiscal years 2017 through 2031.
We have accumulated undistributed earnings of foreign subsidiaries aggregating approximately $219 million and $139 million at October 1, 2016, and October 3, 2015, respectively. The accumulated undistributed earnings at October 1, 2016 are expected to be indefinitely reinvested outside of the United States. If those earnings were distributed in the form of dividends or otherwise, we could be subject to federal income taxes (subject to an adjustment for foreign tax credits), state income taxes and withholding taxes payable to the various foreign countries. Due to the uncertainty of the manner in which the undistributed earnings would be brought back to the United States, the tax laws in effect at that time, as well as the availability of the Company to claim foreign tax credits, it is not currently practicable to estimate the tax liability that might be payable on the repatriation of these foreign earnings.
The following table summarizes the activity related to our gross unrecognized tax benefits at October 1, 2016, October 3, 2015, and September 27, 2014:
 
 
 
 
 
in millions

 
2016

 
2015

 
2014

Balance as of the beginning of the year
$
306

 
$
272

 
$
175

Increases related to current year tax positions
35

 
78

 
11

Increases related to prior year tax positions
31

 
11

 
17

Change related to Hillshire Brands balances
—

 
—

 
136

Reductions related to prior year tax positions
(48
)
 
(18
)
 
(20
)
Reductions related to settlements
(7
)
 
—

 
(1
)
Reductions related to expirations of statutes of limitations
(12
)
 
(37
)
 
(46
)
Balance as of the end of the year
$
305

 
$
306

 
$
272


The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $205 million and $244 million at October 1, 2016, and October 3, 2015, respectively. We classify interest and penalties on unrecognized tax benefits as income tax expense. At October 1, 2016, and October 3, 2015, before tax benefits, we had $52 million and $46 million, respectively, of accrued interest and penalties on unrecognized tax benefits.
As of October 1, 2016, we are subject to income tax examinations for United States federal income taxes for fiscal years 2013 through 2015. We are also subject to income tax examinations by major state and foreign jurisdictions for fiscal years 2005 through 2015 and 2002 through 2015, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease by as much as $10 million primarily due to expiration of statutes in various jurisdictions.
Other Income And Charges
Other Income And Charges
OTHER INCOME AND CHARGES
During fiscal 2016, we recorded $12 million of equity earnings in joint ventures and $4 million in net foreign currency exchange losses, which were recorded in the Consolidated Statements of Income in Other, net.
During fiscal 2015, following the sale of our Mexico and Brazil chicken production operations, we reviewed our strategy and outlook for the remaining international businesses, which operations include our chicken production operations in China. Despite our belief in the potential for this business, our Chinese operations had not achieved profitability. Given the losses that were generated in this business, changes in the strategy and management of the business, and the depressed economic outlook for China at that time, we assessed our Chinese operations for potential impairment in the fourth quarter of fiscal 2015. As a result of this evaluation, during the fourth quarter of fiscal 2015, we recorded a $169 million impairment charge. The impairment was comprised of $126 million of property, plant and equipment, $23 million of goodwill and $20 million of other assets. The China operation is included in Other for segment reporting and the impairment was included in Cost of Sales in the Consolidated Statements of Income.
During fiscal 2015, we recorded $12 million of equity earnings in joint ventures and $21 million of gains on the sale of equity securities, which were recorded in the Consolidated Statements of Income in Other, net.
During fiscal 2014, we recorded $11 million of equity earnings in joint ventures, $3 million in net foreign currency exchange gains, $6 million of other than temporary impairment related to an available-for-sale security and $60 million of costs associated with bridge financing facilities for the Hillshire Brands acquisition, which were recorded in the Consolidated Statements of Income in Other, net.
Earnings Per Share
Earnings Per Share
EARNINGS PER SHARE
The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:
 
in millions, except per share data
 
 
2016

 
2015

 
2014

Numerator:
 
 
 
 
 
Net income
$
1,772

 
$
1,224

 
$
856

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

 
4

 
(8
)
Net income attributable to Tyson
1,768

 
1,220

 
864

Less dividends declared:
 
 
 
 
 
Class A
192

 
129

 
94

Class B
41

 
26

 
21

Undistributed earnings
$
1,535

 
$
1,065

 
$
749

 
 
 
 
 
 
Class A undistributed earnings
$
1,279

 
$
896

 
$
612

Class B undistributed earnings
256

 
169

 
137

Total undistributed earnings
$
1,535

 
$
1,065

 
$
749

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Class A weighted average shares
315

 
335

 
284

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

 
70

 
70

Effect of dilutive securities:
 
 
 
 
 
Stock options and restricted stock
5

 
5

 
5

Tangible Equity Units
—

 
3

 
1

Warrants
—

 
—

 
4

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
390

 
413

 
364

 
 
 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
 
 
Class A Basic
$
4.67

 
$
3.06

 
$
2.48

Class B Basic
$
4.24

 
$
2.79

 
$
2.26

Diluted
$
4.53

 
$
2.95

 
$
2.37


We had no stock-based compensation shares that were antidilutive for fiscal 2016. We had approximately 5 million and 4 million of our stock-based compensation shares that were antidilutive for fiscal 2015 and fiscal 2014, respectively. These shares were not included in the dilutive earnings per share calculation.
We have two classes of capital stock, Class A stock and Class B stock. Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of cash dividends paid to holders of Class B stock cannot exceed 90% of the cash dividends paid to holders of Class A stock.
We allocate undistributed earnings based upon a 1 to 0.9 ratio per share to Class A stock and Class B stock, respectively. We allocate undistributed earnings based on this ratio due to historical dividend patterns, voting control of Class B shareholders and contractual limitations of dividends to Class B stock.
Derivative Financial Instruments
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Our business operations give rise to certain market risk exposures mostly due to changes in commodity prices, foreign currency exchange rates and interest rates. We manage a portion of these risks through the use of derivative financial instruments to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Our risk management programs are periodically reviewed by our Board of Directors' Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using value-at-risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit-worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at October 1, 2016.
We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
 
 
 
 
in millions, except soy meal tons
 
 
 
Metric
 
October 1, 2016

 
October 3, 2015

Corn
 
Bushels
 
50

 
18

Soy Meal
 
Tons
 
389,700

 
284,900

Live Cattle
 
Pounds
 
28

 
102

Lean Hogs
 
Pounds
 
158

 
166

Foreign Currency
 
United States dollar
 
$
38

 
$
42


We recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets, with the exception of normal purchases and normal sales expected to result in physical delivery. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged (i.e., cash flow hedge or fair value hedge). We designate certain forward contracts as follows:
•
Cash Flow Hedges – include certain commodity forward and option contracts of forecasted purchases (i.e., grains) and certain foreign exchange forward contracts.
•
Fair Value Hedges – include certain commodity forward contracts of firm commitments (i.e., livestock).
Cash flow hedges
Derivative instruments are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant during fiscal 2016, 2015 and 2014. As of October 1, 2016, the net amounts expected to be reclassified into earnings within the next 12 months are pretax losses of $3 million. During fiscal 2016, 2015 and 2014, we did not reclassify significant pretax gains/losses into earnings as a result of the discontinuance of cash flow hedges.
The following table sets forth the pretax impact of cash flow hedge derivative instruments in the Consolidated Statements of Income:
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Gain (Loss)
Recognized in OCI
on Derivatives
 
 
Consolidated
Statements of Income
Classification
 
Gain (Loss)
Reclassified from
OCI to Earnings
 
 
2016

 
2015

 
2014

 
 
 
2016

 
2015

 
2014

Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(1
)
 
$
(4
)
 
$
(7
)
 
Cost of Sales
 
$
1

 
$
(7
)
 
$
(10
)
Foreign exchange contracts
—

 
—

 
(1
)
 
Other Income/Expense
 
—

 
—

 
—

Total
$
(1
)
 
$
(4
)
 
$
(8
)
 
 
 
$
1

 
$
(7
)
 
$
(10
)

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

 
2015

 
2014

Gain (Loss) on forwards
 
Cost of Sales
 
$
89

 
$
17

 
$
(154
)
Gain (Loss) on purchase contract
 
Cost of Sales
 
(89
)
 
(17
)
 
154


Ineffectiveness related to our fair value hedges was not significant during fiscal 2016, 2015 and 2014.
Undesignated positions
In addition to our designated positions, we also hold derivative contracts for which we do not apply hedge accounting. These include certain derivative instruments related to commodities price risk, including grains, livestock, energy and foreign currency risk. We mark these positions to fair value through earnings at each reporting date.
The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Statements of Income:
 
 
 
 
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
Gain (Loss)
Recognized
in Earnings
 
 
 
 
 
2016

 
2015

 
2014

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
Sales
 
$
(73
)
 
$
(62
)
 
$
75

Commodity contracts
 
Cost of Sales
 
17

 
(33
)
 
(136
)
Foreign exchange contracts
 
Other Income/Expense
 
2

 
(4
)
 
—

Total
 
 
 
$
(54
)
 
$
(99
)
 
$
(61
)

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

October 1, 2016
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
72

 
$
—

 
$
(27
)
 
$
45

Undesignated
—

 
38

 
—

 
(34
)
 
4

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
2

 
2

 
—

 
4

Non-current
—

 
38

 
55

 
—

 
93

Deferred Compensation Assets
18

 
236

 
—

 
—

 
254

Total Assets
$
18

 
$
386

 
$
57

 
$
(61
)
 
$
400

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
1

 
$
—

 
$
(1
)
 
$
—

Undesignated
—

 
68

 
—

 
(68
)
 
—

Total Liabilities
$
—

 
$
69

 
$
—

 
$
(69
)
 
$
—

 
 
 
 
 
 
 
 
 
 
October 3, 2015
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
52

 
$
—

 
$
(35
)
 
$
17

Undesignated
—

 
9

 
—

 
(9
)
 
—

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Non-current
—

 
33

 
60

 
—

 
93

Deferred Compensation Assets
9

 
222

 
—

 
—

 
231

Total Assets
$
9

 
$
317

 
$
61

 
$
(44
)
 
$
343

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
2

 
$
—

 
$
(2
)
 
$
—

Undesignated
—

 
49

 
—

 
(47
)
 
2

Total Liabilities
$
—

 
$
51

 
$
—

 
$
(49
)
 
$
2

(a)
Our derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At October 1, 2016, and October 3, 2015, we had posted with various counterparties $8 million and $5 million, respectively, of cash collateral related to our derivative financial instruments and held no cash collateral.
The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3):
 
 
 
in millions

 
October 1, 2016

 
October 3, 2015

Balance at beginning of year
$
61

 
$
67

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
12

 
20

Issuances
—

 
—

Settlements
(16
)
 
(26
)
Balance at end of year
$
57

 
$
61

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

 
$
—


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Derivative Assets and Liabilities: Our derivative financial instruments primarily include exchange-traded and over-the-counter contracts which are further described in Note 11: Derivative Financial Instruments. We record our derivative financial instruments at fair value using quoted market prices adjusted for credit and non-performance risk and internal models that use as their basis readily observable market inputs including current and forward market prices. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges or observable market transactions.
Available for Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. Short-term investments with maturities of less than 12 months are included in Other current assets in the Consolidated Balance Sheets and primarily include certificates of deposit and commercial paper. All other marketable debt securities are included in Other Assets in the Consolidated Balance Sheets and have maturities ranging up to 31 years. We classify our investments in United States government, United States agency, certificates of deposit and commercial paper debt securities as Level 2 as fair value is generally estimated using discounted cash flow models that are primarily industry-standard models that consider various assumptions, including time value and yield curve as well as other readily available relevant economic measures. We classify certain corporate, asset-backed and other debt securities as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated financial statements.
 
 
 
 
 
 
 
 
 
in millions
 
 
October 1, 2016
 
October 3, 2015
 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
 
 
Debt Securities:
 
 
 
 
 
 
 
 
 
 
 
United States Treasury and Agency
$
40

 
$
40

 
$
—

 
$
33

 
$
34

 
$
1

Corporate and Asset-Backed
56

 
57

 
1

 
60

 
61

 
1

 

Unrealized holding gains (losses), net of tax, are excluded from earnings and reported in OCI until the security is settled or sold. On a quarterly basis, we evaluate whether losses related to our available-for-sale securities are temporary in nature. Losses on equity securities are recognized in earnings if the decline in value is judged to be other than temporary. If losses related to our debt securities are determined to be other than temporary, the loss would be recognized in earnings if we intend, or more likely than not will be required, to sell the security prior to recovery. For debt securities in which we have the intent and ability to hold until maturity, losses determined to be other than temporary would remain in OCI, other than expected credit losses which are recognized in earnings. We consider many factors in determining whether a loss is temporary, including the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. We recognized no other than temporary impairment in earnings for fiscal 2016 and fiscal 2015. No other than temporary losses were deferred in OCI as of October 1, 2016, and October 3, 2015.
Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are generally maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated Balance Sheets. We classify the investments which have observable market prices in active markets in Level 1 as these are generally publicly-traded mutual funds. The remaining deferred compensation assets are classified in Level 2, as fair value can be corroborated based on observable market data. Realized and unrealized gains (losses) on deferred compensation are included in earnings.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during fiscal 2016.
In fiscal 2015, to better align our overall production capacity with then-current cattle supplies, we ceased beef operations at our Denison, Iowa, plant. As a result, we recorded a $12 million closure and impairment charges during the fourth quarter of fiscal 2015. These charges impacted the Beef segment’s operating income and were reflected in Cost of Sales in our Consolidated Statements of Income. Our valuation of these assets was primarily based on discounted cash flow models which included unobservable Level 3 inputs.
In the fourth quarter of fiscal 2015, we recorded a $59 million impairment and other related charges associated with a Prepared Foods project designed to optimize the combined Tyson and Hillshire Brands network capacity and to enhance manufacturing efficiencies for the future. These charges were reflected in the Prepared Foods segment’s operating income, of which $49 million was included in the Consolidated Statements of Income in Cost of Sales and $10 million was included in the Consolidated Statements of Income in Selling, General and Administrative. Our valuation of these assets was primarily based on discounted cash flow models which included unobservable Level 3 inputs.
Following the sale of our Mexico and Brazil chicken operations in fiscal 2015, we reviewed our long-term business strategy and outlook for the remaining international businesses, which operations include our chicken production operations in China and India. We assessed our Chinese operation for a potential impairment in the fourth quarter of fiscal 2015 and as a result of this evaluation, we recorded a $169 million charge to impair its long-lived assets to their fair value and to fully impair its goodwill. The China operation is included in Other for segment reporting and the impairment was included in Cost of Sales in the Consolidated Statements of Income. This impairment was comprised of $126 million of property, plant and equipment, $23 million of goodwill and $20 million of other assets. We utilized a discounted cash flow analysis which included unobservable Level 3 inputs.
Other Financial Instruments
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows:
 
 
 
 
 
in millions
 
 
October 1, 2016
 
October 3, 2015
 
Fair
Value

 
Carrying
Value

 
Fair
Value

 
Carrying
Value

Total Debt
$
6,698

 
$
6,279

 
$
6,900

 
$
6,690


Concentrations of Credit Risk
Our financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Our cash equivalents are in high quality securities placed with major banks and financial institutions. Concentrations of credit risk with respect to receivables are limited due to the large number of customers and their dispersion across geographic areas. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral. At October 1, 2016, and October 3, 2015, 18.9% and 20.0%, respectively, of our net accounts receivable balance was due from Wal-Mart Stores, Inc. No other single customer or customer group represented greater than 10% of net accounts receivable.
Stock-Based Compensation
Stock-Based Compensation
STOCK-BASED COMPENSATION
We issue shares under our stock-based compensation plans by issuing Class A stock from treasury. The total number of shares available for future grant under the Tyson Foods, Inc. 2000 Stock Incentive Plan (Incentive Plan) was 20,726,621 at October 1, 2016.
Stock Options
Shareholders approved the Incentive Plan in January 2001. The Incentive Plan is administered by the Compensation and Leadership Development Committee of the Board of Directors (Compensation Committee). The Incentive Plan includes provisions for granting incentive stock options for shares of Class A stock at a price not less than the fair value at the date of grant. Nonqualified stock options may be granted at a price equal to or more than the fair value of Class A stock on the date the option is granted. Stock options under the Incentive Plan generally become exercisable ratably over three years from the date of grant and must be exercised within 10 years from the date of grant. Our policy is to recognize compensation expense on a straight-line basis over the requisite service period for the entire award.
 
Shares Under
Option

 
Weighted
Average Exercise
Price Per Share

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

Outstanding, October 3, 2015
14,735,065

 
$
28.30

 
 
 
 
Exercised
(5,286,342
)
 
24.13

 
 
 
 
Forfeited or expired
(126,038
)
 
42.29

 
 
 
 
Granted
1,868,971

 
50.00

 
 
 
 
Outstanding, October 1, 2016
11,191,656

 
33.74

 
7.0
 
$
458

 
 
 
 
 
 
 
 
Exercisable, October 1, 2016
5,334,155

 
$
23.87

 
5.7
 
$
271


We generally grant stock options once a year. The weighted average grant-date fair value of options granted in fiscal 2016, 2015 and 2014 was $11.47, $11.51 and $10.83, respectively. The fair value of each option grant is established on the date of grant using a binomial lattice method. We use historical volatility for a period of time comparable to the expected life of the option to determine volatility assumptions. Expected life is calculated based on the contractual term of each grant and takes into account the historical exercise and termination behavior of participants. Risk-free interest rates are based on the five-year Treasury bond rate. Assumptions as of the grant date used in the fair value calculation of each year’s grants are outlined in the following table.
 
2016

 
2015

 
2014

Expected life (in years)
6.4

 
6.1

 
6.0

Risk-free interest rate
1.6
%
 
1.6
%
 
1.3
%
Expected volatility
24.8
%
 
26.7
%
 
36.0
%
Expected dividend yield
1.2% - 2.6%

 
1.0
%
 
1.0
%

We recognized stock-based compensation expense related to stock options, net of income taxes, of $23 million, $27 million and $20 million for fiscal 2016, 2015 and 2014, respectively. The related tax benefit for fiscal 2016, 2015 and 2014 was $15 million, $17 million and $13 million, respectively. We had 3.8 million, 3.8 million and 4.8 million options vest in fiscal 2016, 2015 and 2014, respectively, with a grant date fair value of $38 million, $32 million and $30 million, respectively.
In fiscal 2016, 2015 and 2014, we received cash of $128 million, $84 million and $67 million, respectively, for the exercise of stock options. Shares are issued from treasury for stock option exercises. The related tax benefit realized from stock options exercised during fiscal 2016, 2015 and 2014, was $80 million, $30 million and $33 million, respectively. The total intrinsic value of options exercised in fiscal 2016, 2015 and 2014, was $204 million, $79 million and $87 million, respectively. Cash flows resulting from tax deductions in excess of the compensation cost of those options (excess tax deductions) are classified as financing cash flows. We realized $58 million, $19 million and $24 million related to excess tax deductions during fiscal 2016, 2015 and 2014, respectively.
As of October 1, 2016, we had $29 million of total unrecognized compensation cost related to stock option plans that will be recognized over a weighted average period of 1.1 years.
Restricted Stock
We issue restricted stock at the market value as of the date of grant, with restrictions expiring over periods through fiscal 2019. Unearned compensation is recognized over the vesting period for the particular grant using a straight-line method.
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, October 3, 2015
1,107,928

 
$
36.76

 
 
 
 
Granted
686,648

 
50.00

 
 
 
 
Dividends
15,653

 
46.79

 
 
 
 
Vested
(155,600
)
 
24.48

 
 
 
 
Forfeited
(51,763
)
 
45.18

 
 
 
 
Nonvested, October 1, 2016
1,602,866

 
$
43.45

 
1.3
 
$
120


As of October 1, 2016, we had $33 million of total unrecognized compensation cost related to restricted stock awards that will be recognized over a weighted average period of 1.8 years.
We recognized stock-based compensation expense related to restricted stock, net of income taxes, of $14 million, $9 million and $6 million for fiscal 2016, 2015 and 2014, respectively. The related tax benefit for fiscal 2016, 2015 and 2014 was $9 million, $6 million and $4 million, respectively. We had 0.2 million, 0.5 million and 0.6 million restricted stock awards vest in fiscal 2016, 2015 and 2014, respectively, with a grant date fair value of $4 million, $10 million and $11 million, respectively.
Performance-Based Shares
We award performance-based shares of our Class A stock to certain employees. These awards are typically granted once a year. Performance-based shares vest based upon the passage of time and the achievement of performance or market performance criteria, ranging from 0% to 200%, as determined by the Compensation Committee prior to the date of the award. Vesting periods for these awards are three years. We review progress toward the attainment of the performance criteria each quarter during the vesting period. When it is probable the minimum performance criteria for an award will be achieved, we begin recognizing the expense equal to the proportionate share of the total fair value of the Class A stock price on the grant date. The total expense recognized over the duration of performance awards will equal the Class A stock price on the date of grant multiplied by the number of shares ultimately awarded based on the level of attainment of the performance criteria. For grants with market performance criteria, the fair value is determined on the grant date and is calculated using the same inputs for expected volatility, expected dividend yield, and risk-free rate as stock options, noted above, with a duration of three years. The total expense recognized over the duration of the award will equal the fair value, regardless if the market performance criteria is met.
The following table summarizes the performance-based shares at the maximum award amounts based upon the respective performance share agreements. Actual shares that will vest depend on the level of attainment of the performance-based criteria.
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, October 3, 2015
1,835,100

 
$
32.03

 
 
 
 
Granted
1,178,353

 
54.44

 
 
 
 
Vested
(803,821
)
 
21.67

 
 
 
 
Forfeited
(62,563
)
 
34.06

 
 
 
 
Nonvested, October 1, 2016
2,147,069

 
$
48.15

 
1.4
 
$
160


We recognized stock-based compensation expense related to performance shares, net of income taxes, of $11 million, $5 million and $4 million for fiscal 2016, 2015 and 2014, respectively. The related tax benefit for fiscal 2016, 2015 and 2014 was $7 million, $3 million and $2 million, respectively. As of October 1, 2016, we had $30 million of total unrecognized compensation based upon our progress toward the attainment of criteria related to performance-based share awards that will be recognized over a weighted average period of 2 years.
Pensions And Other Postretirement Benefits
Pensions And Other Postretirement Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
At October 1, 2016, we had nine defined benefit pension plans consisting of six funded qualified plans and three unfunded non-qualified plans. In regards to our qualified plans, five are frozen and noncontributory. The benefits provided under these plans are based on a formula using years of service and either a specified benefit rate or compensation level. The non-qualified defined benefit plans are for certain contracted officers and use a formula based on years of service and final average salary. We also have other postretirement benefit plans for which substantially all of our employees may receive benefits if they satisfy applicable eligibility criteria. The postretirement healthcare plans are contributory with participants’ contributions adjusted when deemed necessary.
We have defined contribution retirement programs for various groups of employees. We recognized expenses of $67 million, $62 million and $53 million in fiscal 2016, 2015 and 2014, respectively.
We use a fiscal year end measurement date for our defined benefit plans and other postretirement plans. We recognize the effect of actuarial gains and losses into earnings immediately for other postretirement plans rather than amortizing the effect over future periods.
Other postretirement benefits include postretirement medical costs and life insurance.
Benefit Obligations and Funded Status
The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at October 1, 2016, and October 3, 2015:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2016

 
2015

 
2016

 
2015

Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
1,785

 
$
1,849

 
$
201

 
$
182

 
$
114

 
$
163

Service cost
8

 
10

 
6

 
8

 
1

 
5

Interest cost
65

 
78

 
9

 
8

 
3

 
7

Plan amendments
—

 
—

 
—

 
—

 
(58
)
 
(60
)
Plan participants’ contributions
—

 
—

 
—

 
—

 
1

 
2

Actuarial (gain)/loss
21

 
(50
)
 
16

 
11

 
(15
)
 
9

Benefits paid
(339
)
 
(102
)
 
(10
)
 
(8
)
 
(10
)
 
(12
)
Other
14

 
—

 
—

 
—

 
—

 
—

Benefit obligation at end of year
1,554

 
1,785

 
222

 
201

 
36

 
114

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
1,576

 
1,647

 
—

 
3

 
—

 
—

Actual return on plan assets
135

 
25

 
—

 
—

 
—

 
—

Employer contributions
54

 
6

 
10

 
8

 
9

 
10

Plan participants’ contributions
—

 
—

 
—

 
—

 
1

 
2

Benefits paid
(339
)
 
(102
)
 
(10
)
 
(8
)
 
(10
)
 
(12
)
Other
14

 
—

 
—

 
(3
)
 
—

 
—

Fair value of plan assets at end of year
1,440

 
1,576

 
—

 
—

 
—

 
—

Funded status
$
(114
)
 
$
(209
)
 
$
(222
)
 
$
(201
)
 
$
(36
)
 
$
(114
)

Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2016

 
2015

 
2016

 
2015

Other current liabilities
$
—

 
$
—

 
$
(9
)
 
$
(9
)
 
$
(4
)
 
$
(20
)
Other liabilities
(114
)
 
(209
)
 
(213
)
 
(192
)
 
(32
)
 
(94
)
Total liabilities
$
(114
)
 
$
(209
)
 
$
(222
)
 
$
(201
)
 
$
(36
)
 
$
(114
)

Amounts recognized in Accumulated Other Comprehensive Income consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2016

 
2015

 
2016

 
2015

Accumulated other comprehensive (income)/loss:
 
 
 
 
 
 
 
 
 
 
 
   Actuarial loss
$
17

 
$
57

 
$
55

 
$
43

 
$
—

 
$
—

   Prior service (credit) (a)
—

 
—

 
—

 
—

 
(98
)
 
(59
)
Total accumulated other comprehensive (income)/loss:
$
17

 
$
57

 
$
55

 
$
43

 
$
(98
)
 
$
(59
)
(a)
The change in prior service credit is primarily attributed to the plan amendments to the other postretirement benefits as noted within the change in benefit obligation with remainder of the change being immaterial.
At October 1, 2016, and October 3, 2015, eight pension plans had an accumulated benefit obligation in excess of plan assets. Plans with accumulated benefit obligations in excess of plan assets are as follows:
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Qualified
 
Non-Qualified
 
2016

 
2015

 
2016

 
2015

Projected benefit obligation
$
1,550

 
$
1,781

 
$
222

 
$
201

Accumulated benefit obligation
1,550

 
1,781

 
207

 
193

Fair value of plan assets
1,436

 
1,572

 
—

 
—


The accumulated benefit obligation for all qualified pension plans was $1,554 million and $1,785 million at October 1, 2016, and October 3, 2015, respectively.
Net Periodic Benefit Cost (Credit)
Components of net periodic benefit cost (credit) for pension and postretirement benefit plans recognized in the Consolidated Statements of Income are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2014

 
2016

 
2015

 
2014

 
2016

 
2015

 
2014

Service cost
$
8

 
$
10

 
$
1

 
$
6

 
$
8

 
$
7

 
$
1

 
$
5

 
$
2

Interest cost
65

 
78

 
10

 
9

 
8

 
5

 
3

 
7

 
3

Expected return on plan assets
(65
)
 
(102
)
 
(13
)
 
—

 
—

 
—

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
—

 
—

 
—

 
(20
)
 
(1
)
 
—

Recognized actuarial loss (gain), net
2

 
2

 
2

 
5

 
4

 
2

 
(15
)
 
9

 
(8
)
Recognized settlement loss (gain)
(12
)
 
8

 
—

 
—

 
—

 
—

 
—

 
(2
)
 
—

Net periodic benefit cost (credit)
$
(2
)
 
$
(4
)
 
$
—

 
$
20

 
$
20

 
$
14

 
$
(31
)
 
$
18

 
$
(3
)

As of October 1, 2016, the amounts expected to be reclassified into earnings within the next 12 months related to net periodic benefit cost for the qualified and non-qualified pensions are $1 million and $6 million, respectively. As of October 1, 2016, the amount expected to be reclassified into earnings within the next 12 months related to net periodic benefit credit for the other postretirement benefits is $25 million.
Assumptions
Weighted average assumptions are as follows:
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2014

 
2016

 
2015

 
2014

 
2016

 
2015

 
2014

Discount rate to determine net periodic benefit cost
4.47
%
 
4.32
%
 
4.37
%
 
4.41
%
 
4.36
%
 
5.01
%
 
3.54
%
 
3.97
%
 
4.41
%
Discount rate to determine benefit obligations
3.72
%
 
4.47
%
 
4.32
%
 
3.77
%
 
4.41
%
 
4.36
%
 
3.09
%
 
3.54
%
 
3.97
%
Rate of compensation increase
n/a

 
0.01
%
 
0.01
%
 
2.46
%
 
2.31
%
 
2.11
%
 
n/a

 
n/a

 
n/a

Expected return on plan assets
4.15
%
 
4.61
%
 
6.37
%
 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

 
n/a


To determine the expected return on plan assets assumption, we first examined historical rates of return for the various asset classes within the plans. We then determined a long-term projected rate-of-return based on expected returns.
Our discount rate assumptions used to account for pension and other postretirement benefit plans reflect the rates at which the benefit obligations could be effectively settled. These were determined using a cash flow matching technique whereby the rates of a yield curve, developed from high-quality debt securities, were applied to the benefit obligations to determine the appropriate discount rate. As of October 1, 2016 and October 3, 2015, all pension and other postretirement benefit plans used the RP-2014 mortality tables.
We have five other postretirement benefit plans which are healthcare and life insurance related. Two of these plans, which benefit obligations totaled $22 million at October 1, 2016, were not impacted by healthcare cost trend rates as one consists of fixed annual payments and one is life insurance related. Two of the healthcare plans, which benefit obligations totaled $2 million at October 1, 2016, were not impacted by healthcare cost trend rates due to plan amendments. The remaining plan, which the benefit obligation totaled $12 million at October 1, 2016, utilized assumed healthcare cost trend rates of 9.0% and 7.6% for retirees who qualify and do not qualify for Medicare, respectively. The healthcare cost trend rate will be grading down to an ultimate rate of 4.5% in 2024/2025.
A one-percentage-point change in assumed health-care cost trend rates would have the following effects:
 
 
 
in millions

 
One Percentage Point Increase
 
One Percentage Point Decrease
Effect on postretirement benefit obligation
$
1

 
$
1


Plan Assets
The following table sets forth the actual and target asset allocation for pension plan assets:
 
2016

 
2015

 
Target Asset
Allocation

Cash
0.9
%
 
0.3
%
 
—
%
Fixed Income Securities
85.4

 
85.4

 
86.0

United States Stock Funds
3.7

 
3.9

 
4.0

International Stock Funds
6.2

 
6.8

 
6.5

Real Estate
3.8

 
3.6

 
3.5

Total
100.0
%
 
100.0
%
 
100.0
%

Additionally, one of our foreign subsidiary pension plans had $28 million and $14 million in plan assets held in an insurance trust at October 1, 2016, and October 3, 2015, respectively.
The plan trustees have established a set of investment objectives related to the assets of the domestic pension plans and regularly monitor the performance of the funds and portfolio managers. Objectives for the pension assets are (i) to provide growth of capital and income, (ii) to achieve a target weighted average annual rate of return competitive with funds with similar investment objectives and (iii) to diversify to reduce risk. The target asset allocations are based upon the funded status of the plans. As pension obligations become better funded, we will lower risk by increasing the allocation to fixed income.
Our domestic plan assets consist mainly of common collective trusts which are primarily comprised of fixed income funds, equity securities and other investments. Fixed income securities can include, but are not limited to, direct bond investments, and pooled or indirect bond investments. Other investments may include, but are not limited to, international and domestic equities, real estate, commodities and private equity. Derivative instruments may also be used in concert with either fixed income or equity investments to achieve desired exposure or to hedge certain risks. Derivative instruments can include, but are not limited to, futures, options, swaps or swaptions. Our domestic plan assets also include mutual funds. We believe there are no significant concentrations of risk within our plan assets as of October 1, 2016.
The following tables show the categories of pension plan assets and the level under which fair values were determined in the fair value hierarchy, which is described in Note 12: Fair Value Measurements.
 
in millions
 
October 1, 2016
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
13

 
$
—

 
$
—

 
$
13

Insurance contract at contract value (a)
—

 
—

 
28

 
28

Total assets in fair value hierarchy
$
13

 
$
—

 
$
28

 
$
41

Investments measured at net asset value:
 
 
 
 
 
 
 
Common collective trusts (b)
 
 
 
 
 
 
$
1,399

Total plan assets
 
 
 
 
 
 
$
1,440

 
in millions
 
October 3, 2015
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
5

 
$
—

 
$
—

 
$
5

Insurance contract at contract value (a)
—

 
—

 
14

 
14

Total assets in fair value hierarchy
$
5

 
$
—

 
$
14

 
$
19

Investments measured at net asset value:

 

 

 

Common collective trusts (b)


 


 


 
$
1,557

Total plan assets


 


 


 
$
1,576

(a)
We classify insurance contracts as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. The insurance contracts are valued using the plan’s own assumptions about the assumptions market participants would use in pricing the assets based on the best information available, such as investment manager pricing. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated financial statements.
(b)
Funds that are measured at fair value using the net asset value (NAV) per share practical expedient have not been categorized in the fair value hierarchy. The amounts presented above are intended to permit reconciliation of the fair value hierarchy to the fair value of total plan assets in order to determine the amounts included in Other Liabilities in the Consolidated Balance Sheets.
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) is as follows:
 
 
 
 
in millions

 
 
Insurance contract

 
Total

Balance at October 3, 2015
 
$
14

 
14

Actual return on plan assets:
 
 
 


Assets still held at reporting date
 
—

 
—

Assets sold during the period
 
—

 
—

Purchases, sales and settlements, net
 
14

 
14

Transfers in and/or out of Level 3
 
—

 
—

Balance at October 1, 2016
 
$
28

 
$
28


Contributions
Our policy is to fund at least the minimum contribution required to meet applicable federal employee benefit and local tax laws. In our sole discretion, we may from time to time fund additional amounts. Expected contributions to pension plans for fiscal 2017 are approximately $40 million. For fiscal 2016, 2015 and 2014, we funded $64 million, $14 million and $9 million plans, respectively, to pension plans.

Estimated Future Benefit Payments
The following benefit payments are expected to be paid:
 
 
 
 
 
in millions

 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
2017
$
86

 
$
9

 
$
5

2018
82

 
9

 
3

2019
83

 
9

 
3

2020
84

 
10

 
3

2021
85

 
11

 
3

2022-2026
434

 
62

 
13


The above benefit payments for other postretirement benefit plans are not expected to be offset by Medicare Part D subsidies in fiscal 2017 or thereafter.
The above benefit payments include anticipated payments for a partial settlement for deferred vested participants within two of our qualified pension plans. Assuming an election rate of 50% and changes to the benefit obligation and accumulated other comprehensive income due to remeasurement, the partial settlement will result in $2 million of expense to be reclassified into earnings. Actual results may differ from estimated amounts.
Multi-Employer Plans
Additionally, we participate in a multi-employer plan that provides defined benefits to certain employees covered by collective bargaining agreements. Such plans are usually administered by a board of trustees composed of the management of the participating companies and labor representatives.
The risks of participating in multiemployer plans are different from single-employer plans. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligation of the plan may be borne by the remaining participating employers. If we stop participating in a plan, we may be required to pay that plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Contributions to the pension funds were not in excess of 5% of the total plan contributions for plan year 2016.
The net pension cost of the plan is equal to the annual contribution determined in accordance with the provisions of negotiated labor contracts. Contributions to the plan were $1 million in fiscal 2016 and 2015. Assets contributed to such plans are not segregated or otherwise restricted to provide benefits only to our employees. The future cost of the plan is dependent on a number of factors including the funded status of the plan and the ability of the other participating companies to meet ongoing funding obligations.
Our participation in this multiemployer plan for fiscal 2016 is outlined below. The EIN/Pension Plan Number column provides the Employer Identification Number (EIN) and the three digit plan number. Unless otherwise noted, the most recent Pension Protection Act ("PPA") zone status available in fiscal 2016 and fiscal 2015 is for the plan's year beginning January 1, 2016, and 2015, respectively. The zone status is based on information that we have received from the plan and is certified by the plan's actuaries. The zone status is a secondary classification, critical and declining, within the red zone for fiscal 2016. Among other factors, plans in the red zone are generally less than 65 percent funded. Plans that are critical and declining status are projected to have an accumulated funding deficiency. The FIP/RP Status column indicates plans for which a financial improvement plan (FIP) or rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreements to which the plan is subject. There have been no significant changes that affect the comparability of contributions from year to year.

In addition to regular contributions, we could be obligated to pay additional contributions (known as complete or partial withdrawal liabilities) if it has unfunded vested benefits.
 
 
 
PPA Zone Status
 
FIP/RP Status
Contributions (in millions)
 
Surcharge Imposed
 
 
Pension Fund Plan Name
EIN/Pension Plan Number
 
2016
 
2015
 
Implemented
2016
2015
 
2016
 
Expiration Date of Collective Bargaining Agreement(a)
Bakery and Confectionery Union and Industry International Pension Fund
52-6118572/001
 
Red
 
Red
 
Nov 2012
 
$1
$1
 
10%
 
October 2015

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

 
2016

 
2015

Accumulated other comprehensive income (loss), net of taxes:
 
 
 
Unrealized net hedging loss
$
(2
)
 
$
(1
)
Unrealized net gain on investments
1

 
1

Currency translation adjustment
(59
)
 
(63
)
Postretirement benefits reserve adjustments
15

 
(27
)
Total accumulated other comprehensive loss
$
(45
)
 
$
(90
)

The before and after tax changes in the components of other comprehensive income (loss) are as follows:
 
 
 
 
 
 
 
 
 
 
in millions
 
 
 
2016
 
2015
 
2014
 
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to cost of sales
 
$
(1
)
$
1

$
—

 
$
7

$
(3
)
$
4

 
$
10

$
(4
)
$
6

(Gain) loss reclassified to other income/expense
 
—

—

—

 
—

—

—

 
—

—

—

Unrealized gain (loss)
 
(1
)
—

(1
)
 
(4
)
2

(2
)
 
(8
)
3

(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to other income/expense
 
—

—

—

 
(21
)
8

(13
)
 
8

(2
)
6

Unrealized gain (loss)
 
(1
)
1

—

 
21

(9
)
12

 
(2
)
—

(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
 
 
 
 
Translation loss reclassified to cost of sales (a)
 
—

—

—

 
115

(8
)
107

 
—

—

—

Translation adjustment
 
5

(1
)
4

 
(86
)
15

(71
)
 
(32
)
2

(30
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits
 
67

(25
)
42

 
32

(12
)
20

 
(23
)
9

(14
)
Total other comprehensive income (loss)
 
$
69

$
(24
)
$
45

 
$
64

$
(7
)
$
57

 
$
(47
)
$
8

$
(39
)
(a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 3: Acquisitions and Dispositions.
Segment Reporting
Segment Reporting
SEGMENT REPORTING
We operate in four reportable segments: Chicken, Beef, Pork and Prepared Foods. We measure segment profit as operating income (loss). Other primarily includes our foreign chicken production operations in China and India and third-party merger and integration costs.
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. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary.
Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain.
Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. This segment includes brands such as Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Van's®, Sara Lee® and Chef Pierre®, as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island®. Products primarily include pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, flour and corn tortilla products, desserts, appetizers, snacks, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets.
We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs of $37 million, $47 million and $59 million in fiscal 2016, 2015 and 2014, respectively, which are included in Other. Assets and additions to property, plant and equipment relating to corporate activities remain in Other. In addition, at September 27, 2014, we included $4.8 billion of goodwill associated with our acquisition of Hillshire Brands in Other and we completed the allocation of goodwill to our segments in fiscal 2015. See Note 5: Goodwill and Intangible Assets for further description regarding the allocation of goodwill. The results from Dynamic Fuels are also included in Other in fiscal 2014.
Information on segments and a reconciliation to income from continuing operations before income taxes are follows:
 
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other

 
Intersegment
Sales

 
Consolidated

Fiscal 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
10,927

 
$
14,513

 
$
4,909

 
$
7,346

 
$
380

 
$
(1,194
)
 
$
36,881

Operating Income (Loss)
1,305

 
347

 
528

 
734

 
(81
)
 
 
 
2,833

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
235

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,598

Depreciation and amortization
274

 
94

 
33

 
286

 
10

 
 
 
697

Total Assets
5,836

 
2,764

 
1,039

 
11,814

 
920

 
 
 
22,373

Additions to property, plant and equipment
281

 
99

 
68

 
178

 
69

 
 
 
695

Fiscal 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,390

 
$
17,236

 
$
5,262

 
$
7,822

 
$
879

 
$
(1,216
)
 
$
41,373

Operating Income (Loss)
1,366

 
(66
)
 
380

 
588

 
(99
)
 
 
 
2,169

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
248

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,921

Depreciation and amortization
272

 
97

 
31

 
280

 
21

 
 
 
701

Total Assets
5,731

 
3,009

 
927

 
12,006

 
1,296

 
 
 
22,969

Additions to property, plant and equipment
405

 
113

 
50

 
167

 
119

 
 
 
854

Fiscal 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,116

 
$
16,177

 
$
6,304

 
$
3,927

 
$
1,381

 
$
(1,325
)
 
$
37,580

Operating Income (Loss)
883

 
347

 
455

 
(60
)
 
(195
)
 
 
 
1,430

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
178

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,252

Depreciation and amortization
253

 
91

 
33

 
95

 
48

 
 
 
520

Total Assets
4,807

 
3,103

 
965

 
8,608

 
6,423

 
 
 
23,906

Additions to property, plant and equipment
307

 
115

 
36

 
77

 
97

 
 
 
632


The Chicken segment had sales of $27 million, $18 million and $7 million for fiscal 2016, 2015 and 2014, respectively, from transactions with other operating segments. The Pork segment had sales of $840 million, $847 million and $1.0 billion for fiscal 2016, 2015 and 2014, respectively, from transactions with other operating segments. The Beef segment had sales of $327 million, $351 million and $307 million for fiscal 2016, 2015 and 2014, respectively, from transactions with other operating segments. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table.
Our largest customer, Wal-Mart Stores, Inc., accounted for 17.5%, 16.8% and 14.6% of consolidated sales in fiscal 2016, 2015 and 2014, respectively. Sales to Wal-Mart Stores, Inc. were included in all the segments. Any extended discontinuance of sales to this customer could, if not replaced, have a material impact on our operations.
The majority of our operations are domiciled in the United States. Approximately 98%, 97% and 96% of sales to external customers for fiscal 2016, 2015 and 2014, respectively, were sourced from the United States. Approximately $17.3 billion and $17.4 billion of long-lived assets were located in the United States at October 1, 2016, and October 3, 2015. Excluding goodwill and intangible assets, long-lived assets located in the United States totaled approximately $5.6 billion at October 1, 2016, and October 3, 2015. Approximately $204 million and $191 million of long-lived assets were located in foreign countries, primarily Brazil, China and India, at October 1, 2016, and October 3, 2015, respectively. Excluding goodwill and intangible assets, long-lived assets in foreign countries totaled approximately $180 million and $165 million at October 1, 2016, and October 3, 2015, respectively.
We sell certain products in foreign markets, primarily Canada, Central America, China, the European Union, Japan, Mexico, the Middle East, South Korea, and Taiwan. Our export sales from the United States totaled $3.5 billion, $4.1 billion and $4.7 billion for fiscal 2016, 2015 and 2014, respectively. Substantially all of our export sales are facilitated through unaffiliated brokers, marketing associations and foreign sales staffs. Sales of products produced in a country other than the United States were less than 10% of consolidated sales for each of fiscal 2016, 2015 and 2014.
Supplemental Cash Flow Information
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOWS INFORMATION
The following table summarizes cash payments for interest and income taxes:
 
 
 
 
 
in millions

 
2016

 
2015

 
2014

Interest, net of amounts capitalized
$
242

 
$
308

 
$
118

Income taxes, net of refunds
686

 
437

 
590

Commitments And Contingencies
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES
Commitments
We lease equipment, properties and certain farms for which total rentals approximated $172 million, $165 million and $161 million, in fiscal 2016, 2015 and 2014, respectively. Most leases have initial terms of up to seven years, some with varying renewal periods. The most significant obligations assumed under the terms of the leases are the upkeep of the facilities and payments of insurance and property taxes.
Minimum lease commitments under non-cancelable leases at October 1, 2016, were:
 
in millions

2017
$
118

2018
92

2019
66

2020
43

2021
30

2022 and beyond
78

Total
$
427


We guarantee obligations of certain outside third parties, consisting primarily of leases, debt and grower loans, which are substantially collateralized by the underlying assets. Terms of the underlying debt cover periods up to 10 years, and the maximum potential amount of future payments as of October 1, 2016, was $35 million. We also maintain operating leases for various types of equipment, some of which contain residual value guarantees for the market value of the underlying leased assets at the end of the term of the lease. The remaining terms of the lease maturities cover periods over the next 11 years. The maximum potential amount of the residual value guarantees is $91 million, of which $83 million could be recoverable through various recourse provisions and an additional undeterminable recoverable amount based on the fair value of the underlying leased assets. The likelihood of material payments under these guarantees is not considered probable. At October 1, 2016, and October 3, 2015, no material liabilities for guarantees were recorded.
We have cash flow assistance programs in which certain livestock suppliers participate. Under these programs, we pay an amount for livestock equivalent to a standard cost to grow such livestock during periods of low market sales prices. The amounts of such payments that are in excess of the market sales price are recorded as receivables and accrue interest. Participating suppliers are obligated to repay these receivables balances when market sales prices exceed this standard cost, or upon termination of the agreement. Our maximum obligation associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets. The potential maximum obligation as of October 1, 2016, was approximately $380 million. The total receivables under these programs were $2 million at October 1, 2016. There were no receivables under this program and at October 3, 2015. These receivables are included, net of allowance for uncollectible amounts, in Accounts Receivable in our Consolidated Balance Sheets. Even though these programs are limited to the net tangible assets of the participating livestock suppliers, we also manage a portion of our credit risk associated with these programs by obtaining security interests in livestock suppliers’ assets. After analyzing residual credit risks and general market conditions, we had no allowance for these programs' estimated uncollectible receivables at October 1, 2016, and October 3, 2015.
When constructing new facilities or making major enhancements to existing facilities, we will occasionally enter into incentive agreements with local government agencies in order to reduce certain state and local tax expenditures. Under these agreements, we transfer the related assets to various local government entities and receive Industrial Revenue Bonds. We immediately lease the facilities from the local government entities and have an option to re-purchase the facilities for a nominal amount upon tendering the Industrial Revenue Bonds to the local government entities at various predetermined dates. The Industrial Revenue Bonds and the associated obligations for the leases of the facilities offset, and the underlying assets remain in property, plant and equipment. At October 1, 2016, total amounts under these type of arrangements totaled $502 million.
Additionally, we enter into future purchase commitments for various items, such as grains, livestock contracts and fixed grower fees. At October 1, 2016, these commitments totaled:
 
in millions

2017
$
1,817

2018
373

2019
166

2020
112

2021
95

2022 and beyond
106

Total
$
2,669


Contingencies
We are involved in various claims and legal proceedings. We routinely assess the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. We record accruals for such matters to the extent that we conclude a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Such accruals are reflected in the Company’s consolidated financial statements. In our opinion, we have made appropriate and adequate accruals for these matters and believe the probability of a material loss beyond the amounts accrued to be remote; however, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the consolidated financial condition or results of operations. Listed below are certain claims made against the Company and/or our subsidiaries for which the potential exposure is considered material to the Company’s consolidated financial statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters.
Below are the details of six lawsuits involving our beef, pork and prepared foods plants in which certain present and past employees allege that we failed to compensate them for the time it takes to engage in pre- and post-shift activities, such as changing into and out of protective and sanitary clothing and walking to and from the changing area, work areas and break areas in violation of the Fair Labor Standards Act and various state laws. The plaintiffs seek back wages, liquidated damages, pre- and post-judgment interest, attorneys’ fees and costs. Each case is proceeding in its jurisdiction.
•
Bouaphakeo (f/k/a Sharp), et al. v. Tyson Foods, Inc., N.D. Iowa, February 6, 2007 - A jury trial was held involving our Storm Lake, Iowa pork plant which resulted in a jury verdict in favor of the plaintiffs for violations of federal and state laws for pre- and post-shift work activities. The trial court also awarded the plaintiffs liquidated damages, resulting in total damages awarded in the amount of $5,784,758. The plaintiffs' counsel has also filed an application for attorneys' fees and expenses in the amount of $2,692,145. We appealed the jury's verdict and trial court's award to the Eighth Circuit Court of Appeals. The appellate court affirmed the jury verdict and judgment on August 25, 2014, and we filed a petition for rehearing on September 22, 2014, which was denied. We filed a petition for a writ of certiorari with the United States Supreme Court, which was granted on June 8, 2015, and oral arguments before the Supreme Court occurred on November 10, 2015. On March 22, 2016, the Supreme Court affirmed the appellate court’s rulings and remanded to the trial court to allocate the lump sum award among the class participants.
•
Edwards, et al. v. Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., S.D. Iowa, March 20, 2008 - The trial court in this case, which involves our Perry and Waterloo, Iowa pork plants, decertified the state law class and granted other pre-trial motions that resulted in judgment in our favor with respect to the plaintiffs’ claims. The plaintiffs have filed a motion to modify this judgment.
•
Murray, et al. v. Tyson Foods, Inc., C.D. Illinois, January 2, 2008; and DeVoss v. Tyson Foods, Inc. d.b.a. Tyson Fresh Meats, C.D. Illinois, March 2, 2011 - These cases involve our Joslin, Illinois beef plant and are in their preliminary stages.
•
Dozier, Southerland, et al. v. The Hillshire Brands Company, E.D. North Carolina, September 2, 2014 - This case involves our Tarboro, North Carolina prepared foods plant. On March 25, 2016, the parties filed a joint motion for settlement totaling $425,000, which includes all of the plaintiffs’ attorneys’ fees and costs.
•
Awad, et al. v. Tyson Foods, Inc. and Tyson Fresh Meats, Inc., M.D. Tennessee, February 12, 2015 - On October 12, 2016, the parties filed a joint motion for approval of a $725,000 settlement, and plaintiffs filed an application for attorneys’ fees and costs. The court granted its preliminary approval of the parties’ joint motion and the application for attorneys’ fees and costs, on October 21, 2016, and dismissed the action with prejudice.
Our subsidiary, The Hillshire Brands Company (formerly named Sara Lee Corporation), is a party to a consolidation of cases filed by individual complainants with the Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission (NLRC) from 1998 through July 1999. The complaint is filed against Aris Philippines, Inc., Sara Lee Corporation, Sara Lee Philippines, Inc., Fashion Accessories Philippines, Inc., and Attorney Cesar C. Cruz (collectively, the “respondents”). The complaint alleges, among other things, that the respondents engaged in unfair labor practices in connection with the termination of manufacturing operations in the Philippines by Aris Philippines, Inc., a former subsidiary of The Hillshire Brands Company. In 2006, an labor arbiter ruled against the respondents and awarded the complainants PHP3,453,664,710 (approximately US$71 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 PHP342,287,800 (approximately US$7.1 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 are now back before the NLRC, which will once again rule on the respondents’ appeals regarding the labor arbiter’s 2006 ruling in favor of the complainants.
In the meantime, the respondents reached a settlement with a group comprising approximately 18% of the class of 5,984 complainants, pursuant to which The Hillshire Brands Company would pay each settling complainant PHP68,000 (approximately US$1,402). The settlement was approved by the NLRC on or around April 8, 2016, and certain motions for reconsideration relating thereto were resolved on June 30, 2016. If there are no further appeals or motions for reconsideration, The Hillshire Brands Company will make the payments associated with the settlement. In the meantime, The Hillshire Brands Company awaits the NLRC’s decision on the pending appeal with respect to all non-settling complainants.
On September 2, 2016, Maplevale Farms, Inc., acting on behalf of itself 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. The complaint alleges, 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. It is further alleged that the defendants concealed this conduct from the plaintiff and the putative class. The plaintiff and putative class are seeking treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. Subsequent to the filing of this initial complaint, additional lawsuits making similar claims on behalf of putative classes of direct and indirect purchaser classes were filed in the United States District Court for the Northern District of Illinois. The lawsuits brought on behalf of putative classes of indirect purchasers allege, in addition to violations of federal antitrust laws, causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The court has consolidated, for pretrial purposes, each of the direct purchaser actions into one case and each of the indirect purchaser actions into one case. These two actions are styled In re Broiler Chicken Antitrust Litigation. On October 28, 2016, plaintiffs filed consolidated amended complaints in each of the two new consolidated actions. The allegations in those complaints are substantially similar to the allegations set forth above.
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
QUARTERLY FINANCIAL DATA (UNAUDITED)
 
 
 
 
in millions, except per share data
 
 
 
First
Quarter

 
Second
Quarter

 
Third
Quarter

 
Fourth
Quarter

2016
 
 
 
 
 
 
 
 
Sales
 
$
9,152

 
$
9,170

 
$
9,403

 
$
9,156

Gross profit
 
1,201

 
1,183

 
1,224

 
1,089

Operating income
 
776

 
704

 
767

 
586

Net income
 
461

 
434

 
485

 
392

Net income attributable to Tyson
 
461

 
432

 
484

 
391

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

 
$
1.14

 
$
1.29

 
$
1.06

Class B Basic
 
$
1.09

 
$
1.02

 
$
1.17

 
$
0.96

Diluted
 
$
1.15

 
$
1.10

 
$
1.25

 
$
1.03

2015
 
 
 
 
 
 
 
 
Sales
 
$
10,817

 
$
9,979

 
$
10,071

 
$
10,506

Gross profit
 
956

 
989

 
986

 
986

Operating income
 
509

 
547

 
563

 
550

Net income
 
310

 
311

 
344

 
259

Net income attributable to Tyson
 
309

 
310

 
343

 
258

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

 
$
0.78

 
$
0.86

 
$
0.65

Class B Basic
 
$
0.71

 
$
0.71

 
$
0.78

 
$
0.59

Diluted
 
$
0.74

 
$
0.75

 
$
0.83

 
$
0.63


Second quarter fiscal 2016 net income included a $12 million recognition of previously unrecognized tax benefits.
Third quarter fiscal 2016 net income included a $15 million recognition of previously unrecognized tax benefits and audit settlement.
Fourth quarter fiscal 2016 net income included a $26 million recognition of previously unrecognized tax benefits.
First quarter fiscal 2015 net income included $19 million pretax expense related to merger and integration, $36 million pretax loss due to costs related to a legacy Hillshire Brands plant fire and a $26 million unrecognized tax benefit gain.
Second quarter fiscal 2015 net income included $14 million pretax expense related to merger and integration and $8 million pretax gain due to insurance proceeds (net of costs) related to a legacy Hillshire Brands plant fire.
Third quarter fiscal 2015 net income included $16 million pretax expense related to merger and integration, $11 million pretax gains due to insurance proceeds (net of costs) related to a legacy Hillshire Brands plant fire and $21 million pretax gains on sale of equity securities.
Fourth quarter fiscal 2015 net income included $8 million pretax expense related to merger and integration, $25 million pretax gains due to insurance proceeds related to a legacy Hillshire Brands plant fire, $169 million pretax China impairment charge, $59 million pretax impairment charges related to our Prepared Foods network optimization, $12 million pretax closure and impairment charges related to the Denison plant closure, $161 million pretax gain on the sale of the Mexico operation and $39 million pretax gain related to our accounting cycle resulting in a 53-week year in fiscal 2015.
Valuation And Qualifying Accounts
Valuation And Qualifying Accounts
FINANCIAL STATEMENT SCHEDULE
TYSON FOODS, INC.
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
Three Years Ended October 1, 2016
 
 
 
 
 
 
 
 
 
 
in millions

 
 
 
 
Additions
 
 
 
 
 
 
Balance at
Beginning
of Period

 
Charged to
Costs and
Expenses

 
Charged to
Other Accounts

 
(Deductions)

 
Balance at End
of Period

Allowance for Doubtful Accounts:
 
 
 
 
 
 
 
 
 
 
2016
 
$
27

 
$
10

 
$
—

 
$
(4
)
 
$
33

2015
 
34

 
1

 
—

 
(8
)
 
27

2014
 
46

 
5

 
—

 
(17
)
 
34

Inventory Lower of Cost or Market Allowance:
 
 
 
 
 
 
 
 
 
 
2016
 
$
58

 
$
70

 
$
—

 
$
(89
)
 
$
39

2015
 
7

 
99

 
—

 
(48
)
 
58

2014
 
16

 
14

 
—

 
(23
)
 
7

Valuation Allowance on Deferred Tax Assets:
 
 
 
 
 
 
 
 
 
 
2016
 
$
68

 
$
10

 
$
—

 
$
(6
)
 
$
72

2015
 
51

 
21

 
—

 
(4
)
 
68

2014
 
77

 
26

 
13

 
(65
)
 
51

Business And Summary Of Significant Accounting Policies (Policy)
Description Of Business 
Description of Business: Tyson Foods, Inc. (collectively, “Company,” “we,” “us” or “our”), founded in 1935 with world headquarters in Springdale, Arkansas, is one of the world's largest food companies with leading brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Sara Lee®, Ball Park®, Wright®, Aidells® and State Fair®. We are a recognized market leader in chicken, beef and pork as well as prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, tortillas and desserts.
Consolidation 
Consolidation: The consolidated financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Fiscal Year 
Fiscal Year: We utilize a 52- or 53-week accounting period ending on the Saturday closest to September 30. The Company’s accounting cycle resulted in a 52-week year for fiscal 2016 and fiscal 2014 and a 53-week year for fiscal 2015
Cash And Cash Equivalents 
Cash and Cash Equivalents: Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as part of our cash management activity. The carrying values of these assets approximate their fair values. We primarily utilize a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts where funds are moved to, and several zero-balance disbursement accounts for funding payroll, accounts payable, livestock procurement, grower payments, etc. As a result of our cash management system, checks issued, but not presented to the banks for payment, may result in negative book cash balances. These negative book cash balances are included in accounts payable and other current liabilities. At October 1, 2016, and October 3, 2015, checks outstanding in excess of related book cash balances totaled approximately $261 million and $257 million, respectively.
Accounts Receivable 
Accounts Receivable: We record accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, level of past due accounts and relationships with and economic status of our customers. At October 1, 2016, and October 3, 2015, our allowance for uncollectible accounts was $33 million and $27 million, respectively. We generally do not have collateral for our receivables, but we do periodically evaluate the credit worthiness of our customers.
Inventories 
Inventories: Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
In fiscal 2016, 61% of the cost of inventories was determined by the first-in, first-out ("FIFO") method as compared to 63% in fiscal 2015. The remaining cost of inventories for both years is determined by the weighted-average method.
Property, Plant And Equipment 
Property, Plant and Equipment: Property, plant and equipment are stated at cost and generally depreciated on a straight-line method over the estimated lives for buildings and leasehold improvements of 10 to 33 years, machinery and equipment of three to 12 years and land improvements and other of three to 20 years. Major repairs and maintenance costs that significantly extend the useful life of the related assets are capitalized. Normal repairs and maintenance costs are charged to operations.
We review the carrying value of long-lived assets at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest, taxes, depreciation and amortization. We measure impairment as the excess of carrying value over the fair value of an asset. The fair value of an asset is measured using discounted cash flows including market participant assumptions of future operating results and discount rates.
Goodwill And Other Intangible Assets 
Goodwill and Intangible Assets: Definite life intangibles are initially recorded at fair value and amortized over the estimated period of benefit. Brands and trademarks are generally based on the straight-line method over 20 years or less. Customer relationships are generally amortized over seven to 17 years based on the pattern of revenue expected to be generated from the use of the asset. Amortization expense is generally recognized in selling, general, and administrative expense. We review the carrying value of definite life intangibles at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest, taxes, depreciation and amortization. We measure impairment as the excess of carrying value over the fair value of the definite life intangible asset. We use various valuation techniques to estimate fair value, with the primary techniques being discounted cash flows, relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
Goodwill and indefinite life intangible assets are initially recorded at fair value and not amortized, but are reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, the fair value of the reporting unit may be more likely than not less than carrying amount, or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test.
The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the quantitative impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied fair value of goodwill exceeds the carrying amount, then goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was determined as the exit price a market participant would pay for the same business). We have elected to make the first day of the fourth quarter the annual impairment assessment date for goodwill and indefinite life intangible assets.
We estimate the fair value of our reporting units using a discounted cash flow analysis, which uses significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. This analysis requires us to make various judgmental estimates and assumptions about sales, operating margins, growth rates and discount factors and is believed to reflect market participant views which would exist in an exit transaction. Generally, we utilize normalized operating margin assumptions based on future expectations and operating margins historically realized in the reporting units' industries. Some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management, including interest rates, cost of capital, tax rates and credit ratings. While we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If our actual results are not consistent with our estimates and assumptions used to calculate fair value, we may be required to perform the second step of the quantitative test in future years, which could result in material impairments of our goodwill.
The discount rate used in our annual goodwill impairment test decreased to 6.2% in fiscal 2016 from 6.8% in fiscal 2015. The discount rate used in our indefinite life intangible test decreased to 7.9% in fiscal 2016 from 8.0% in fiscal 2015.
During fiscal 2016, 2015 and 2014, all of our material reporting units that underwent a quantitative test passed the first step of the goodwill impairment analysis and therefore, the second step was not necessary. In fiscal 2015, we recorded a $23 million full impairment of an immaterial reporting unit’s goodwill.
For our indefinite life intangible assets, a qualitative assessment can also be performed to determine whether the existence of events and circumstances indicates it is more likely than not an intangible asset is impaired. Similar to goodwill, we can also elect to forgo the qualitative test for indefinite life intangible assets and perform the quantitative test. Upon performing the quantitative test, if the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
The fair value of our indefinite life intangible assets is calculated principally using relief-from-royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy, and is believed to reflect market participant views which would exist in an exit transaction. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
Investments 
Investments: We have investments in joint ventures and other entities. We generally use the cost method of accounting when our voting interests are less than 20 percent. We use the equity method of accounting when our voting interests are in excess of 20 percent and we do not have a controlling interest or a variable interest in which we are the primary beneficiary. Investments in joint ventures and other entities are reported in the Consolidated Balance Sheets in Other Assets.
We also have investments in marketable debt securities. We have determined all of our marketable debt securities are available-for-sale investments. These investments are reported at fair value based on quoted market prices as of the balance sheet date, with unrealized gains and losses, net of tax, recorded in other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is recorded in interest income. The cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of debt securities and declines in value judged to be other than temporary are recorded on a net basis in other income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.
Accrued Self-Insurance 
Accrued Self-Insurance: We use a combination of insurance and self-insurance mechanisms in an effort to mitigate the potential liabilities for health and welfare, workers’ compensation, auto liability and general liability risks. Liabilities associated with our risks retained are estimated, in part, by considering claims experience, demographic factors, severity factors and other actuarial assumptions.
Defined Benefit Plans 
Defined Benefit Plans: We recognize the funded status of defined pension and postretirement plans in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of the plan assets and the benefit obligation. We measure our plan assets and liabilities at the end of our fiscal year. For a defined benefit pension plan, the benefit obligation is the projected benefit obligation; for any other defined benefit postretirement plan, such as a retiree health care plan, the benefit obligation is the accumulated postretirement benefit obligation. Any overfunded status is recognized as an asset and any underfunded status is recognized as a liability. Any transitional asset/liability, prior service cost or actuarial gain/loss that has not yet been recognized as a component of net periodic cost is recognized in accumulated other comprehensive income. Accumulated other comprehensive income will be adjusted as these amounts are subsequently recognized as a component of net periodic benefit costs in future periods.
Financial Instruments 
Derivative Financial Instruments: We purchase certain commodities, such as grains and livestock in the course of normal operations. As part of our commodity risk management activities, we use derivative financial instruments, primarily futures and options, to reduce our exposure to various market risks related to these purchases, as well as to changes in foreign currency exchange rates. Contract terms of a financial instrument qualifying as a hedge instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. Contracts designated and highly effective at meeting risk reduction and correlation criteria are recorded using hedge accounting. If a derivative instrument is accounted for as a hedge, changes in the fair value of the instrument will be offset either against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is immediately recognized in earnings as a component of cost of sales. Instruments we hold as part of our risk management activities that do not meet the criteria for hedge accounting are marked to fair value with unrealized gains or losses reported currently in earnings. Changes in market value of derivatives used in our risk management activities relating to forward sales contracts are recorded in sales, while changes surrounding inventories on hand or anticipated purchases of inventories or supplies are recorded in cost of sales. We generally do not hedge anticipated transactions beyond 18 months.
Litigation Reserves 
Litigation Reserves: There are a variety of legal proceedings pending or threatened against us. Accruals are recorded when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated based on current law, progress of each case, opinions and views of legal counsel and other advisers, our experience in similar matters and intended response to the litigation. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment efforts progress or additional information becomes available. We expense amounts for administering or litigating claims as incurred. Accruals for legal proceedings are included in Other current liabilities in the Consolidated Balance Sheets
Revenue Recognition 
Revenue Recognition: We recognize revenue when title and risk of loss are transferred to customers, which is generally on delivery based on terms of sale. Revenue is recognized as the net amount estimated to be received after deducting estimated amounts for discounts, trade allowances and product returns.
Freight Expense 
Freight Expense: Freight expense associated with products shipped to customers is recognized in cost of sales.
Advertising And Promotion Expenses 
Marketing and Promotion Costs: We promote our products with marketing, advertising, trade promotions, and consumer incentives, which include, but are not limited to, coupons, discounts, rebates, and volume-based incentives. Marketing and promotion expenses are charged to operations in the period incurred. Customer incentive and trade promotion activities are recorded as a reduction to sales based on amounts estimated as being due to customers, based primarily on historical utilization and redemption rates, while other marketing and promotional activities are recorded as selling, general and administrative expense.
Advertising Expenses: Advertising expense is charged to operations in the period incurred and is recorded as selling, general and administrative expense. Advertising expense totaled $238 million, $181 million and $112 million in fiscal 2016, 2015 and 2014, respectively.
Research And Development 
Research and Development: Research and development costs are expensed as incurred. Research and development costs totaled $96 million, $75 million and $52 million in fiscal 2016, 2015 and 2014, respectively.
Use Of Estimates 
Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements 
Recently Issued Accounting Pronouncements:
In August 2016, the Financial Accounting Standards Board ("FASB") issued guidance which 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. Early adoption is permitted and the retrospective transition method should be applied. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In March 2016, the FASB issued guidance which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows and impact on earnings per share. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018. Early adoption is permitted and the application of the guidance requires various transition methods depending on the specific amendment. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In February 2016, the FASB issued guidance which 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. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In January 2016, the FASB issued guidance that requires most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements on the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. 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 are currently evaluating the impact this guidance will have on our consolidated financial statements.
In July 2015, the FASB issued guidance which requires management to evaluate inventory at the lower of cost and net realizable value. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018. Early adoption is permitted and the prospective transition method should be applied. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In April 2015, the FASB issued guidance on the recognition of fees paid by a customer for cloud computing arrangements. The guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the software license consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017, and should be applied prospectively or retrospectively, of which we will apply prospectively. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.
In February 2015, the FASB issued guidance changing the analysis procedures that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods, beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted and the retrospective or modified retrospective transition method should be applied. This new guidance is not expected to have a material impact on our consolidated financial statements.
In May 2014, the FASB issued guidance changing the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted for fiscal years beginning after December 15, 2016, our fiscal 2018. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
Business And Summary Of Significant Accounting Policies (Tables)
Schedule of Inventory, Current 
The following table reflects the major components of inventory at October 1, 2016, and October 3, 2015:
 
 
 
in millions

 
2016

 
2015

Processed products
$
1,530

 
$
1,631

Livestock
772

 
831

Supplies and other
430

 
416

Total inventory
$
2,732

 
$
2,878

Other Current Liabilities 
Other Current Liabilities: Other current liabilities at October 1, 2016, and October 3, 2015, include:
 
in millions
 
 
2016

 
2015

Accrued salaries, wages and benefits
$
563

 
$
478

Accrued marketing, advertising and promotion expense
212

 
192

Other
397

 
488

Total other current liabilities
$
1,172

 
$
1,158

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

 
2014

Pro forma sales
$
41,311

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

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

Property, Plant And Equipment (Tables)
Schedule Of Property, Plant And Equipment And Accumulated Depreciation
The following table reflects major categories of property, plant and equipment and accumulated depreciation at October 1, 2016, and October 3, 2015:
 
in millions
 
 
2016

 
2015

Land
$
126

 
$
122

Building and leasehold improvements
3,662

 
3,581

Machinery and equipment
6,789

 
6,452

Land improvements and other
300

 
286

Buildings and equipment under construction
290

 
375

 
11,167

 
10,816

Less accumulated depreciation
5,997

 
5,640

Net property, plant and equipment
$
5,170

 
$
5,176

Goodwill And Other Intangible Assets (Tables)
Schedule Of Goodwill Activity 
The following table reflects goodwill activity for fiscal 2016 and 2015:
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other(a)

 
Unallocated

 
Consolidated

Balance at September 27, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
907

 
$
1,123

 
$
317

 
$
92

 
$
57

 
$
4,804

 
$
7,300

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(34
)
 
—

 
(594
)
 
907

 
563

 
317

 
92

 
23

 
4,804

 
6,706

Fiscal 2015 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Measurement period adjustments
—

 
—

 
—

 
—

 
—

 
(14
)
 
(14
)
Allocation of acquired goodwill
658

 
113

 
106

 
3,913

 
—

 
(4,790
)
 
—

Impairment losses
—

 
—

 
—

 
—

 
(23
)
 
—

 
(23
)
Currency translation and other
(2
)
 
—

 
—

 
—

 
—

 
—

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

 
1,236

 
423

 
4,005

 
57

 
—

 
7,284

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(57
)
 
—

 
(617
)
 
$
1,563

 
$
676

 
$
423

 
$
4,005

 
$
—

 
$
—

 
$
6,667

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2016 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation and other
2

 
—

 
—

 
—

 
—

 
—

 
2

Balance at October 1, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,565

 
1,236

 
423

 
4,005

 
57

 
—

 
7,286

Accumulated impairment losses
—

 
(560
)
 
—

 
—

 
(57
)
 
—

 
(617
)
 
$
1,565

 
$
676

 
$
423

 
$
4,005

 
$
—

 
$
—

 
$
6,669


(a) Other included the goodwill from our foreign chicken operation.
Schedule Of Other Intangible Assets By Type 
The following table reflects intangible assets by type at October 1, 2016, and October 3, 2015:
in millions
 
 
2016

 
2015

Amortizable intangible assets:
 
 
 
Brands and trademarks
$
590

 
$
594

Customer relationships
564

 
564

Patents, intellectual property and other
114

 
115

Land use rights
9

 
9

  Total gross amortizable intangible assets
$
1,277

 
$
1,282

     Less accumulated amortization
271

 
192

  Total net amortizable intangible assets
$
1,006

 
$
1,090

Brands and trademarks not subject to amortization
4,078

 
4,078

  Total intangible assets
$
5,084

 
$
5,168

Debt (Tables)
Schedule Of Major Components Of Debt
The following table reflects major components of debt as of October 1, 2016, and October 3, 2015:
 
 
 
in millions

 
2016

 
2015

Revolving credit facility
$
300

 
$
—

Senior notes:
 
 
 
6.60% Senior notes due April 2016 (2016 Notes)
—

 
638

7.00% Notes due May 2018
120

 
120

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

 
1,000

4.10% Notes due September 2020
284

 
285

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

 
1,000

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

 
1,250

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032
163

 
163

4.88% Notes due August 2034 (2034 Notes)
500

 
500

5.15% Notes due August 2044 (2044 Notes)
500

 
500

Discount on senior notes
(8
)
 
(10
)
Term loans:
 
 
 
Tranche B due April 2019 (1.69% at 10/1/2016)
500

 
500

Tranche B due August 2019 (2.06% at 10/1/2016)
552

 
552

Amortizing Notes - Tangible Equity Units (see Note 7: Equity)
71

 
140

Other
58

 
69

Unamortized debt issuance costs
(29
)
 
(35
)
Total debt
6,279

 
6,690

Less current debt
79

 
715

Total long-term debt
$
6,200

 
$
5,975

Equity (Tables)
Schedule of Share Repurchases 
A summary of cumulative share repurchases of our Class A stock for fiscal 2016, 2015 and 2014 is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
October 1, 2016
 
October 3, 2015
 
September 27, 2014
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
30.8

 
$
1,868

 
11.0

 
$
455

 
7.1

 
$
250

To fund certain obligations under equity compensation plans
 
1.3

 
76

 
0.9

 
40

 
1.2

 
45

Total share repurchases
 
32.1

 
$
1,944

 
11.9

 
$
495

 
8.3

 
$
295

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

 
$
6.83

 
$
50.00

Gross Proceeds
1,295

 
205

 
1,500

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

 
$
199

 
$
1,454

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

 
2016

 
2015

 
2014

Federal
$
710

 
$
564

 
$
325

State
118

 
89

 
67

Foreign
(2
)
 
44

 
4

 
$
826

 
$
697

 
$
396

 
 
 
 
 
 
Current
$
742

 
$
659

 
$
501

Deferred
84

 
38

 
(105
)
 
$
826

 
$
697

 
$
396

Schedule Of Reasons For Differences Between Statutory Federal Tax Rate And Effective Income Tax Rate 
The reasons for the difference between the statutory federal income tax rate and our effective income tax rate from continuing operations are as follows:
 
2016

 
2015

 
2014

Federal income tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes
2.7

 
3.1

 
2.8

Unrecognized tax benefits, net
(1.7
)
 
(1.8
)
 
(4.7
)
Domestic production deduction
(2.6
)
 
(3.7
)
 
(4.0
)
Foreign rate differences and valuation allowances
—

 
3.8

 
2.8

Other
(1.6
)
 
(0.1
)
 
(0.3
)
 
31.8
 %
 
36.3
 %
 
31.6
 %
Schedule Of Tax Effects Of Major Items Recorded As Deferred Tax Assets And Liabilities 
The tax effects of major items recorded as deferred tax assets and liabilities as of October 1, 2016, and October 3, 2015, are as follows:
 
 
 
 
 
 
 
in millions

 
2016
 
2015
 
Deferred Tax
 
Deferred Tax
 
Assets

 
Liabilities

 
Assets

 
Liabilities

Property, plant and equipment
$
—

 
$
857

 
$
—

 
$
783

Intangible assets
—

 
1,979

 
—

 
2,000

Accrued expenses
400

 
—

 
439

 
—

Net operating loss and other carryforwards
86

 
—

 
97

 
—

Other
140

 
259

 
122

 
238

 
$
626

 
$
3,095

 
$
658

 
$
3,021

Valuation allowance
$
(72
)
 
 
 
$
(68
)
 
 
Net deferred tax liability
 
 
$
2,541

 
 
 
$
2,431

Schedule Of Activity Related To Gross Unrecognized Tax Benefits 
The following table summarizes the activity related to our gross unrecognized tax benefits at October 1, 2016, October 3, 2015, and September 27, 2014:
 
 
 
 
 
in millions

 
2016

 
2015

 
2014

Balance as of the beginning of the year
$
306

 
$
272

 
$
175

Increases related to current year tax positions
35

 
78

 
11

Increases related to prior year tax positions
31

 
11

 
17

Change related to Hillshire Brands balances
—

 
—

 
136

Reductions related to prior year tax positions
(48
)
 
(18
)
 
(20
)
Reductions related to settlements
(7
)
 
—

 
(1
)
Reductions related to expirations of statutes of limitations
(12
)
 
(37
)
 
(46
)
Balance as of the end of the year
$
305

 
$
306

 
$
272

Earnings Per Share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:
 
in millions, except per share data
 
 
2016

 
2015

 
2014

Numerator:
 
 
 
 
 
Net income
$
1,772

 
$
1,224

 
$
856

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

 
4

 
(8
)
Net income attributable to Tyson
1,768

 
1,220

 
864

Less dividends declared:
 
 
 
 
 
Class A
192

 
129

 
94

Class B
41

 
26

 
21

Undistributed earnings
$
1,535

 
$
1,065

 
$
749

 
 
 
 
 
 
Class A undistributed earnings
$
1,279

 
$
896

 
$
612

Class B undistributed earnings
256

 
169

 
137

Total undistributed earnings
$
1,535

 
$
1,065

 
$
749

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Class A weighted average shares
315

 
335

 
284

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

 
70

 
70

Effect of dilutive securities:
 
 
 
 
 
Stock options and restricted stock
5

 
5

 
5

Tangible Equity Units
—

 
3

 
1

Warrants
—

 
—

 
4

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
390

 
413

 
364

 
 
 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
 
 
Class A Basic
$
4.67

 
$
3.06

 
$
2.48

Class B Basic
$
4.24

 
$
2.79

 
$
2.26

Diluted
$
4.53

 
$
2.95

 
$
2.37

Derivative Financial Instruments (Tables)
Schedule Of Notional Amount Of Derivatives 
We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
 
 
 
 
in millions, except soy meal tons
 
 
 
Metric
 
October 1, 2016

 
October 3, 2015

Corn
 
Bushels
 
50

 
18

Soy Meal
 
Tons
 
389,700

 
284,900

Live Cattle
 
Pounds
 
28

 
102

Lean Hogs
 
Pounds
 
158

 
166

Foreign Currency
 
United States dollar
 
$
38

 
$
42

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
The following table sets forth the pretax impact of cash flow hedge derivative instruments in the Consolidated Statements of Income:
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Gain (Loss)
Recognized in OCI
on Derivatives
 
 
Consolidated
Statements of Income
Classification
 
Gain (Loss)
Reclassified from
OCI to Earnings
 
 
2016

 
2015

 
2014

 
 
 
2016

 
2015

 
2014

Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(1
)
 
$
(4
)
 
$
(7
)
 
Cost of Sales
 
$
1

 
$
(7
)
 
$
(10
)
Foreign exchange contracts
—

 
—

 
(1
)
 
Other Income/Expense
 
—

 
—

 
—

Total
$
(1
)
 
$
(4
)
 
$
(8
)
 
 
 
$
1

 
$
(7
)
 
$
(10
)
Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
2016

 
2015

 
2014

Gain (Loss) on forwards
 
Cost of Sales
 
$
89

 
$
17

 
$
(154
)
Gain (Loss) on purchase contract
 
Cost of Sales
 
(89
)
 
(17
)
 
154

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Statements of Income:
 
 
 
 
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
Gain (Loss)
Recognized
in Earnings
 
 
 
 
 
2016

 
2015

 
2014

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
Sales
 
$
(73
)
 
$
(62
)
 
$
75

Commodity contracts
 
Cost of Sales
 
17

 
(33
)
 
(136
)
Foreign exchange contracts
 
Other Income/Expense
 
2

 
(4
)
 
—

Total
 
 
 
$
(54
)
 
$
(99
)
 
$
(61
)
Fair Value Measurements (Tables)
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis 
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values:
 
 
 
 
 
 
 
 
 
in millions

October 1, 2016
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
72

 
$
—

 
$
(27
)
 
$
45

Undesignated
—

 
38

 
—

 
(34
)
 
4

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
2

 
2

 
—

 
4

Non-current
—

 
38

 
55

 
—

 
93

Deferred Compensation Assets
18

 
236

 
—

 
—

 
254

Total Assets
$
18

 
$
386

 
$
57

 
$
(61
)
 
$
400

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
1

 
$
—

 
$
(1
)
 
$
—

Undesignated
—

 
68

 
—

 
(68
)
 
—

Total Liabilities
$
—

 
$
69

 
$
—

 
$
(69
)
 
$
—

 
 
 
 
 
 
 
 
 
 
October 3, 2015
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
52

 
$
—

 
$
(35
)
 
$
17

Undesignated
—

 
9

 
—

 
(9
)
 
—

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Non-current
—

 
33

 
60

 
—

 
93

Deferred Compensation Assets
9

 
222

 
—

 
—

 
231

Total Assets
$
9

 
$
317

 
$
61

 
$
(44
)
 
$
343

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Derivative Financial Instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
2

 
$
—

 
$
(2
)
 
$
—

Undesignated
—

 
49

 
—

 
(47
)
 
2

Total Liabilities
$
—

 
$
51

 
$
—

 
$
(49
)
 
$
2

(a)
Our derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At October 1, 2016, and October 3, 2015, we had posted with various counterparties $8 million and $5 million, respectively, of cash collateral related to our derivative financial instruments and held no cash collateral.
Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation 
The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3):
 
 
 
in millions

 
October 1, 2016

 
October 3, 2015

Balance at beginning of year
$
61

 
$
67

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

 
—

Included in other comprehensive income (loss)
—

 
—

Purchases
12

 
20

Issuances
—

 
—

Settlements
(16
)
 
(26
)
Balance at end of year
$
57

 
$
61

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

 
$
—

Schedule Of Available For Sale Securities 
 
 
 
 
 
 
 
 
 
in millions
 
 
October 1, 2016
 
October 3, 2015
 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
 
 
Debt Securities:
 
 
 
 
 
 
 
 
 
 
 
United States Treasury and Agency
$
40

 
$
40

 
$
—

 
$
33

 
$
34

 
$
1

Corporate and Asset-Backed
56

 
57

 
1

 
60

 
61

 
1

 

Schedule Of Fair Value And Carrying Value Of Debt 
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows:
 
 
 
 
 
in millions
 
 
October 1, 2016
 
October 3, 2015
 
Fair
Value

 
Carrying
Value

 
Fair
Value

 
Carrying
Value

Total Debt
$
6,698

 
$
6,279

 
$
6,900

 
$
6,690

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

 
Weighted
Average Exercise
Price Per Share

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

Outstanding, October 3, 2015
14,735,065

 
$
28.30

 
 
 
 
Exercised
(5,286,342
)
 
24.13

 
 
 
 
Forfeited or expired
(126,038
)
 
42.29

 
 
 
 
Granted
1,868,971

 
50.00

 
 
 
 
Outstanding, October 1, 2016
11,191,656

 
33.74

 
7.0
 
$
458

 
 
 
 
 
 
 
 
Exercisable, October 1, 2016
5,334,155

 
$
23.87

 
5.7
 
$
271

Schedule Of Assumptions Of Fair Value Calculation Of Each Year's Grants 
Assumptions as of the grant date used in the fair value calculation of each year’s grants are outlined in the following table.
 
2016

 
2015

 
2014

Expected life (in years)
6.4

 
6.1

 
6.0

Risk-free interest rate
1.6
%
 
1.6
%
 
1.3
%
Expected volatility
24.8
%
 
26.7
%
 
36.0
%
Expected dividend yield
1.2% - 2.6%

 
1.0
%
 
1.0
%
Schedule Of Summary Of Restricted Stock 
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, October 3, 2015
1,107,928

 
$
36.76

 
 
 
 
Granted
686,648

 
50.00

 
 
 
 
Dividends
15,653

 
46.79

 
 
 
 
Vested
(155,600
)
 
24.48

 
 
 
 
Forfeited
(51,763
)
 
45.18

 
 
 
 
Nonvested, October 1, 2016
1,602,866

 
$
43.45

 
1.3
 
$
120

Schedule Of Summary Of Performance-Based Shares 
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, October 3, 2015
1,835,100

 
$
32.03

 
 
 
 
Granted
1,178,353

 
54.44

 
 
 
 
Vested
(803,821
)
 
21.67

 
 
 
 
Forfeited
(62,563
)
 
34.06

 
 
 
 
Nonvested, October 1, 2016
2,147,069

 
$
48.15

 
1.4
 
$
160

Pensions And Other Postretirement Benefits (Tables)
Schedule Of Reconciliation Of Changes In Plans' Benefit Obligations, Assets And Funded Status 
The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at October 1, 2016, and October 3, 2015:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2016

 
2015

 
2016

 
2015

Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
1,785

 
$
1,849

 
$
201

 
$
182

 
$
114

 
$
163

Service cost
8

 
10

 
6

 
8

 
1

 
5

Interest cost
65

 
78

 
9

 
8

 
3

 
7

Plan amendments
—

 
—

 
—

 
—

 
(58
)
 
(60
)
Plan participants’ contributions
—

 
—

 
—

 
—

 
1

 
2

Actuarial (gain)/loss
21

 
(50
)
 
16

 
11

 
(15
)
 
9

Benefits paid
(339
)
 
(102
)
 
(10
)
 
(8
)
 
(10
)
 
(12
)
Other
14

 
—

 
—

 
—

 
—

 
—

Benefit obligation at end of year
1,554

 
1,785

 
222

 
201

 
36

 
114

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
1,576

 
1,647

 
—

 
3

 
—

 
—

Actual return on plan assets
135

 
25

 
—

 
—

 
—

 
—

Employer contributions
54

 
6

 
10

 
8

 
9

 
10

Plan participants’ contributions
—

 
—

 
—

 
—

 
1

 
2

Benefits paid
(339
)
 
(102
)
 
(10
)
 
(8
)
 
(10
)
 
(12
)
Other
14

 
—

 
—

 
(3
)
 
—

 
—

Fair value of plan assets at end of year
1,440

 
1,576

 
—

 
—

 
—

 
—

Funded status
$
(114
)
 
$
(209
)
 
$
(222
)
 
$
(201
)
 
$
(36
)
 
$
(114
)
Schedule Of Amounts Recognized In The Consolidated Balance Sheets 
Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2016

 
2015

 
2016

 
2015

Other current liabilities
$
—

 
$
—

 
$
(9
)
 
$
(9
)
 
$
(4
)
 
$
(20
)
Other liabilities
(114
)
 
(209
)
 
(213
)
 
(192
)
 
(32
)
 
(94
)
Total liabilities
$
(114
)
 
$
(209
)
 
$
(222
)
 
$
(201
)
 
$
(36
)
 
$
(114
)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] 
Amounts recognized in Accumulated Other Comprehensive Income consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2016

 
2015

 
2016

 
2015

Accumulated other comprehensive (income)/loss:
 
 
 
 
 
 
 
 
 
 
 
   Actuarial loss
$
17

 
$
57

 
$
55

 
$
43

 
$
—

 
$
—

   Prior service (credit) (a)
—

 
—

 
—

 
—

 
(98
)
 
(59
)
Total accumulated other comprehensive (income)/loss:
$
17

 
$
57

 
$
55

 
$
43

 
$
(98
)
 
$
(59
)
(a)
The change in prior service credit is primarily attributed to the plan amendments to the other postretirement benefits as noted within the change in benefit obligation with remainder of the change being immaterial.
Schedule Of Plans With Accumulated Benefit Obligations In Excess Of Plan Assets 
Plans with accumulated benefit obligations in excess of plan assets are as follows:
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Qualified
 
Non-Qualified
 
2016

 
2015

 
2016

 
2015

Projected benefit obligation
$
1,550

 
$
1,781

 
$
222

 
$
201

Accumulated benefit obligation
1,550

 
1,781

 
207

 
193

Fair value of plan assets
1,436

 
1,572

 
—

 
—

Schedule Of Components Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans Recognized In The Consolidated Statements Of Income 
Components of net periodic benefit cost (credit) for pension and postretirement benefit plans recognized in the Consolidated Statements of Income are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2014

 
2016

 
2015

 
2014

 
2016

 
2015

 
2014

Service cost
$
8

 
$
10

 
$
1

 
$
6

 
$
8

 
$
7

 
$
1

 
$
5

 
$
2

Interest cost
65

 
78

 
10

 
9

 
8

 
5

 
3

 
7

 
3

Expected return on plan assets
(65
)
 
(102
)
 
(13
)
 
—

 
—

 
—

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
—

 
—

 
—

 
(20
)
 
(1
)
 
—

Recognized actuarial loss (gain), net
2

 
2

 
2

 
5

 
4

 
2

 
(15
)
 
9

 
(8
)
Recognized settlement loss (gain)
(12
)
 
8

 
—

 
—

 
—

 
—

 
—

 
(2
)
 
—

Net periodic benefit cost (credit)
$
(2
)
 
$
(4
)
 
$
—

 
$
20

 
$
20

 
$
14

 
$
(31
)
 
$
18

 
$
(3
)
Schedule Of Weighted Average Assumptions 
Weighted average assumptions are as follows:
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2016

 
2015

 
2014

 
2016

 
2015

 
2014

 
2016

 
2015

 
2014

Discount rate to determine net periodic benefit cost
4.47
%
 
4.32
%
 
4.37
%
 
4.41
%
 
4.36
%
 
5.01
%
 
3.54
%
 
3.97
%
 
4.41
%
Discount rate to determine benefit obligations
3.72
%
 
4.47
%
 
4.32
%
 
3.77
%
 
4.41
%
 
4.36
%
 
3.09
%
 
3.54
%
 
3.97
%
Rate of compensation increase
n/a

 
0.01
%
 
0.01
%
 
2.46
%
 
2.31
%
 
2.11
%
 
n/a

 
n/a

 
n/a

Expected return on plan assets
4.15
%
 
4.61
%
 
6.37
%
 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

 
n/a

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

 
One Percentage Point Increase
 
One Percentage Point Decrease
Effect on postretirement benefit obligation
$
1

 
$
1

Schedule Of Actual And Target Asset Allocation For Pension Plan Assets 
The following table sets forth the actual and target asset allocation for pension plan assets:
 
2016

 
2015

 
Target Asset
Allocation

Cash
0.9
%
 
0.3
%
 
—
%
Fixed Income Securities
85.4

 
85.4

 
86.0

United States Stock Funds
3.7

 
3.9

 
4.0

International Stock Funds
6.2

 
6.8

 
6.5

Real Estate
3.8

 
3.6

 
3.5

Total
100.0
%
 
100.0
%
 
100.0
%
Schedule Of Categories Of Pension Plan Assets And Level Under Which Fair Values Were Determined In Fair Value Hierarchy 
The following tables show the categories of pension plan assets and the level under which fair values were determined in the fair value hierarchy, which is described in Note 12: Fair Value Measurements.
 
in millions
 
October 1, 2016
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
13

 
$
—

 
$
—

 
$
13

Insurance contract at contract value (a)
—

 
—

 
28

 
28

Total assets in fair value hierarchy
$
13

 
$
—

 
$
28

 
$
41

Investments measured at net asset value:
 
 
 
 
 
 
 
Common collective trusts (b)
 
 
 
 
 
 
$
1,399

Total plan assets
 
 
 
 
 
 
$
1,440

 
in millions
 
October 3, 2015
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
5

 
$
—

 
$
—

 
$
5

Insurance contract at contract value (a)
—

 
—

 
14

 
14

Total assets in fair value hierarchy
$
5

 
$
—

 
$
14

 
$
19

Investments measured at net asset value:

 

 

 

Common collective trusts (b)


 


 


 
$
1,557

Total plan assets


 


 


 
$
1,576

(a)
We classify insurance contracts as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. The insurance contracts are valued using the plan’s own assumptions about the assumptions market participants would use in pricing the assets based on the best information available, such as investment manager pricing. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated financial statements.
(b)
Funds that are measured at fair value using the net asset value (NAV) per share practical expedient have not been categorized in the fair value hierarchy. The amounts presented above are intended to permit reconciliation of the fair value hierarchy to the fair value of total plan assets in order to determine the amounts included in Other Liabilities in the Consolidated Balance Sheets.
Schedule Of Reconciliation Of Change In Fair Value Measurement Of Defined Benefit Plans' Consolidated Assets Using Significant Unobservable Inputs 
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) is as follows:
 
 
 
 
in millions

 
 
Insurance contract

 
Total

Balance at October 3, 2015
 
$
14

 
14

Actual return on plan assets:
 
 
 


Assets still held at reporting date
 
—

 
—

Assets sold during the period
 
—

 
—

Purchases, sales and settlements, net
 
14

 
14

Transfers in and/or out of Level 3
 
—

 
—

Balance at October 1, 2016
 
$
28

 
$
28

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

 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
2017
$
86

 
$
9

 
$
5

2018
82

 
9

 
3

2019
83

 
9

 
3

2020
84

 
10

 
3

2021
85

 
11

 
3

2022-2026
434

 
62

 
13

Schedule of Multiemployer Plans 
In addition to regular contributions, we could be obligated to pay additional contributions (known as complete or partial withdrawal liabilities) if it has unfunded vested benefits.
 
 
 
PPA Zone Status
 
FIP/RP Status
Contributions (in millions)
 
Surcharge Imposed
 
 
Pension Fund Plan Name
EIN/Pension Plan Number
 
2016
 
2015
 
Implemented
2016
2015
 
2016
 
Expiration Date of Collective Bargaining Agreement(a)
Bakery and Confectionery Union and Industry International Pension Fund
52-6118572/001
 
Red
 
Red
 
Nov 2012
 
$1
$1
 
10%
 
October 2015

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

 
2016

 
2015

Accumulated other comprehensive income (loss), net of taxes:
 
 
 
Unrealized net hedging loss
$
(2
)
 
$
(1
)
Unrealized net gain on investments
1

 
1

Currency translation adjustment
(59
)
 
(63
)
Postretirement benefits reserve adjustments
15

 
(27
)
Total accumulated other comprehensive loss
$
(45
)
 
$
(90
)
Schedule Of Components Of Other Comprehensive Income (Loss) 
The before and after tax changes in the components of other comprehensive income (loss) are as follows:
 
 
 
 
 
 
 
 
 
 
in millions
 
 
 
2016
 
2015
 
2014
 
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to cost of sales
 
$
(1
)
$
1

$
—

 
$
7

$
(3
)
$
4

 
$
10

$
(4
)
$
6

(Gain) loss reclassified to other income/expense
 
—

—

—

 
—

—

—

 
—

—

—

Unrealized gain (loss)
 
(1
)
—

(1
)
 
(4
)
2

(2
)
 
(8
)
3

(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to other income/expense
 
—

—

—

 
(21
)
8

(13
)
 
8

(2
)
6

Unrealized gain (loss)
 
(1
)
1

—

 
21

(9
)
12

 
(2
)
—

(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
 
 
 
 
Translation loss reclassified to cost of sales (a)
 
—

—

—

 
115

(8
)
107

 
—

—

—

Translation adjustment
 
5

(1
)
4

 
(86
)
15

(71
)
 
(32
)
2

(30
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits
 
67

(25
)
42

 
32

(12
)
20

 
(23
)
9

(14
)
Total other comprehensive income (loss)
 
$
69

$
(24
)
$
45

 
$
64

$
(7
)
$
57

 
$
(47
)
$
8

$
(39
)
(a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 3: Acquisitions and Dispositions.
Segment Reporting (Tables)
Schedule Of Segment Reporting Information, By Segment
Information on segments and a reconciliation to income from continuing operations before income taxes are follows:
 
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other

 
Intersegment
Sales

 
Consolidated

Fiscal 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
10,927

 
$
14,513

 
$
4,909

 
$
7,346

 
$
380

 
$
(1,194
)
 
$
36,881

Operating Income (Loss)
1,305

 
347

 
528

 
734

 
(81
)
 
 
 
2,833

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
235

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,598

Depreciation and amortization
274

 
94

 
33

 
286

 
10

 
 
 
697

Total Assets
5,836

 
2,764

 
1,039

 
11,814

 
920

 
 
 
22,373

Additions to property, plant and equipment
281

 
99

 
68

 
178

 
69

 
 
 
695

Fiscal 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,390

 
$
17,236

 
$
5,262

 
$
7,822

 
$
879

 
$
(1,216
)
 
$
41,373

Operating Income (Loss)
1,366

 
(66
)
 
380

 
588

 
(99
)
 
 
 
2,169

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
248

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,921

Depreciation and amortization
272

 
97

 
31

 
280

 
21

 
 
 
701

Total Assets
5,731

 
3,009

 
927

 
12,006

 
1,296

 
 
 
22,969

Additions to property, plant and equipment
405

 
113

 
50

 
167

 
119

 
 
 
854

Fiscal 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,116

 
$
16,177

 
$
6,304

 
$
3,927

 
$
1,381

 
$
(1,325
)
 
$
37,580

Operating Income (Loss)
883

 
347

 
455

 
(60
)
 
(195
)
 
 
 
1,430

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
178

Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,252

Depreciation and amortization
253

 
91

 
33

 
95

 
48

 
 
 
520

Total Assets
4,807

 
3,103

 
965

 
8,608

 
6,423

 
 
 
23,906

Additions to property, plant and equipment
307

 
115

 
36

 
77

 
97

 
 
 
632

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

 
2016

 
2015

 
2014

Interest, net of amounts capitalized
$
242

 
$
308

 
$
118

Income taxes, net of refunds
686

 
437

 
590

Commitments And Contingencies (Tables)
Schedule Of Minimum Lease Commitments Under Non-Cancelable Leases 
Minimum lease commitments under non-cancelable leases at October 1, 2016, were:
 
in millions

2017
$
118

2018
92

2019
66

2020
43

2021
30

2022 and beyond
78

Total
$
427

Schedule Of Future Purchase Commitments 
At October 1, 2016, these commitments totaled:
 
in millions

2017
$
1,817

2018
373

2019
166

2020
112

2021
95

2022 and beyond
106

Total
$
2,669

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

 
Second
Quarter

 
Third
Quarter

 
Fourth
Quarter

2016
 
 
 
 
 
 
 
 
Sales
 
$
9,152

 
$
9,170

 
$
9,403

 
$
9,156

Gross profit
 
1,201

 
1,183

 
1,224

 
1,089

Operating income
 
776

 
704

 
767

 
586

Net income
 
461

 
434

 
485

 
392

Net income attributable to Tyson
 
461

 
432

 
484

 
391

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

 
$
1.14

 
$
1.29

 
$
1.06

Class B Basic
 
$
1.09

 
$
1.02

 
$
1.17

 
$
0.96

Diluted
 
$
1.15

 
$
1.10

 
$
1.25

 
$
1.03

2015
 
 
 
 
 
 
 
 
Sales
 
$
10,817

 
$
9,979

 
$
10,071

 
$
10,506

Gross profit
 
956

 
989

 
986

 
986

Operating income
 
509

 
547

 
563

 
550

Net income
 
310

 
311

 
344

 
259

Net income attributable to Tyson
 
309

 
310

 
343

 
258

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

 
$
0.78

 
$
0.86

 
$
0.65

Class B Basic
 
$
0.71

 
$
0.71

 
$
0.78

 
$
0.59

Diluted
 
$
0.74

 
$
0.75

 
$
0.83

 
$
0.63

Business And Summary Of Significant Accounting Policies (Schedule Of Inventories Of Processed Products, Livestock, And Supplies Valued At Lower Of Cost Or Market) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Inventory Disclosure [Abstract]
 
 
Processed products
$ 1,530 
$ 1,631 
Livestock
772 
831 
Supplies and other
430 
416 
Total inventory
$ 2,732 
$ 2,878 
Business and Summary of Significant Accounting Policies Business and Summary of Significant Accounting Policies (Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Other Liabilities, Current [Abstract]
 
 
Accrued salaries, wages and benefits
$ 563 
$ 478 
Accrued marketing, advertising and promotion expense
212 
192 
Other
397 
488 
Total other current liabilities
$ 1,172 
$ 1,158 
Business And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Accounting Policies [Line Items]
 
 
 
Checks outstanding in excess of related book cash
$ 261 
$ 257 
 
Allowance for uncollectible accounts
33 
27 
 
Percentage of FIFO Inventory
61.00% 
63.00% 
 
Goodwill, Impairment Loss
 
23 
 
Maximum length of time hedged anticipated transactions
18 months 
 
 
Research and development costs
96 
75 
52 
Goodwill [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Fair Value Inputs, Discount Rate
6.20% 
6.80% 
 
Indefinite-lived Intangible Assets [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Fair Value Inputs, Discount Rate
7.90% 
8.00% 
 
Buildings And Leasehold Improvements [Member] |
Minimum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
10 years 
 
 
Buildings And Leasehold Improvements [Member] |
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
33 years 
 
 
Machinery And Equipment [Member] |
Minimum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
3 years 
 
 
Machinery And Equipment [Member] |
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
12 years 
 
 
Land Improvements and Other [Member] |
Minimum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
3 years 
 
 
Land Improvements and Other [Member] |
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Property, plant, and equipment estimated lives
20 years 
 
 
Immaterial Reporting Unit [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Goodwill, Impairment Loss
23 
 
 
Selling, General and Administrative Expenses [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Advertising Expense
$ 238 
$ 181 
$ 112 
Trademarks [Member] |
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Finite-Lived Intangible Asset, Useful Life
20 years 
 
 
Customer Relationships [Member] |
Minimum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Finite-Lived Intangible Asset, Useful Life
7 years 
 
 
Customer Relationships [Member] |
Maximum [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Finite-Lived Intangible Asset, Useful Life
17 years 
 
 
Changes in Accounting Principles Recently Issued Accounting Pronouncements (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Accounting Policies [Abstract]
 
 
Debt Issuance Costs, Net
$ 29 
$ 35 
Acquisitions and Dispositions Acquisitions Pro Forma Information (Details) (Hillshire Brands Company [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 27, 2014
Hillshire Brands Company [Member]
 
Business Acquisition [Line Items]
 
Pro forma sales
$ 41,311 
Pro forma net income from continuing operations attributable to Tyson
$ 1,047 
Pro forma net income per diluted share from continuing operations attributable to Tyson (in dollars per share)
$ 2.50 
Acquisitions (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Oct. 3, 2015
Chicken [Member]
Oct. 1, 2016
Chicken [Member]
Sep. 27, 2014
Chicken [Member]
Oct. 3, 2015
Beef [Member]
Oct. 1, 2016
Beef [Member]
Sep. 27, 2014
Beef [Member]
Oct. 3, 2015
Pork [Member]
Oct. 1, 2016
Pork [Member]
Sep. 27, 2014
Pork [Member]
Oct. 3, 2015
Prepared Foods [Member]
Oct. 1, 2016
Prepared Foods [Member]
Sep. 27, 2014
Prepared Foods [Member]
Sep. 27, 2014
Series of Individually Immaterial Business Acquisitions [Member]
business
Aug. 28, 2014
Hillshire Brands Company [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Chicken [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Beef [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Pork [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Prepared Foods [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price per share of acquired entity's common stock (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 63.00 
 
 
 
 
 
Purchase price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 8,081 
 
 
 
 
 
Breakage costs incurred related to a previously proposed acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
163 
 
 
 
 
 
Goodwill, Purchase Accounting Adjustments
 
14 
 
0 
 
 
0 
 
 
0 
 
 
0 
 
 
 
 
14 
 
 
 
 
Goodwill
6,669 
6,667 
6,706 
1,563 
1,565 
907 
676 
676 
563 
423 
423 
317 
4,005 
4,005 
92 
18 
 
4,800 
658 
113 
106 
3,913 
Number of Businesses Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
 
 
 
 
 
 
Acquisitions, net of cash acquired
0 
0 
8,193 
 
 
 
 
 
 
 
 
 
 
 
 
56 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 
 
 
 
 
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 27 
 
 
 
 
 
 
Dispositions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Oct. 3, 2015
Beef [Member]
Operating Segments [Member]
Facility Closing [Member]
Oct. 3, 2015
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Sep. 27, 2014
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Facilities
Oct. 3, 2015
Cost of Sales [Member]
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Oct. 3, 2015
Selling, General and Administrative Expenses [Member]
Prepared Foods [Member]
Operating Segments [Member]
Facility Closing [Member]
Oct. 3, 2015
2.75% Senior notes due September 2015 [Member]
Sep. 27, 2014
Chicken Production Operations in Brazil and Mexico [Member]
Other [Member]
Sep. 27, 2014
Chicken Production Operations in Brazil [Member]
Other [Member]
Oct. 3, 2015
Chicken Production Operations in Mexico [Member]
Other [Member]
Oct. 3, 2015
Chicken Production Operations in Mexico [Member]
Cost of Sales [Member]
Oct. 3, 2015
Chicken Production Operations in Mexico [Member]
Cost of Sales [Member]
Other [Member]
Sep. 27, 2014
Dynamic Fuels Deconsolidation [Member]
Sep. 27, 2014
Dynamic Fuels Deconsolidation [Member]
Variable Interest Entity, Primary Beneficiary [Member]
Sep. 27, 2014
Dynamic Fuels Deconsolidation [Member]
Cost of Sales [Member]
Variable Interest Entity, Primary Beneficiary [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disposal Group, Consideration
 
 
 
 
 
 
 
 
 
$ 575 
 
 
 
 
 
 
 
Asset Impairment Charges
45 
285 
107 
12 
59 
52 
49 
10 
 
 
39 
 
 
 
 
 
 
Proceeds from Divestiture of Businesses, Net of Cash Divested
0 
539 
0 
 
 
 
 
 
 
 
148 
 
 
 
 
 
 
Proceeds from sale of businesses
 
 
 
 
 
 
 
 
 
 
 
374 
 
 
 
30 
 
Gain on disposition of Business
0 
177 
0 
 
 
 
 
 
 
 
 
 
161 
161 
 
 
3 
Stated interest rate
 
 
 
 
 
 
 
 
2.75% 
 
 
 
 
 
 
 
 
Plants Closed
 
 
 
 
 
3 
 
 
 
 
 
 
 
 
 
 
 
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
Future Contingent Cash Payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35 
 
Disposal Group, Future Contingent Consideration, Period of production volumes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 years 6 months 
 
 
Guarantor Obligations Release of Guarantees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100 
 
 
Property, Plant And Equipment (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 11,167 
$ 10,816 
Less accumulated depreciation
5,997 
5,640 
Net property, plant and equipment
5,170 
5,176 
Amount required to complete construction of buildings and equipment under construction
871 
 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
126 
122 
Buildings And Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
3,662 
3,581 
Machinery And Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
6,789 
6,452 
Land Improvements And Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
300 
286 
Buildings And Equipment Under Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 290 
$ 375 
Goodwill And Other Intangible Assets (Goodwill Activity) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
$ 7,284 
$ 7,300 
 
Accumulated impairment losses
(617)
(617)
(594)
Goodwill, net
6,669 
6,667 
6,706 
Goodwill, Purchase Accounting Adjustments
 
(14)
 
Allocation of Acquired Goodwill
 
0 
 
Impairment losses
 
(23)
 
Currency translation and other
2 
(2)
 
Goodwill, end of period
7,286 
7,284 
 
Chicken [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
1,563 
907 
 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
1,565 
1,563 
907 
Goodwill, Purchase Accounting Adjustments
 
0 
 
Allocation of Acquired Goodwill
 
658 
 
Impairment losses
 
0 
 
Currency translation and other
2 
(2)
 
Goodwill, end of period
1,565 
1,563 
 
Beef [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
1,236 
1,123 
 
Accumulated impairment losses
(560)
(560)
(560)
Goodwill, net
676 
676 
563 
Goodwill, Purchase Accounting Adjustments
 
0 
 
Allocation of Acquired Goodwill
 
113 
 
Impairment losses
 
0 
 
Currency translation and other
0 
0 
 
Goodwill, end of period
1,236 
1,236 
 
Pork [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
423 
317 
 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
423 
423 
317 
Goodwill, Purchase Accounting Adjustments
 
0 
 
Allocation of Acquired Goodwill
 
106 
 
Impairment losses
 
0 
 
Currency translation and other
0 
0 
 
Goodwill, end of period
423 
423 
 
Prepared Foods [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
4,005 
92 
 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
4,005 
4,005 
92 
Goodwill, Purchase Accounting Adjustments
 
0 
 
Allocation of Acquired Goodwill
 
3,913 
 
Impairment losses
 
0 
 
Currency translation and other
0 
0 
 
Goodwill, end of period
4,005 
4,005 
 
Other [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
57 1
57 1
 
Accumulated impairment losses
(57)1
(57)1
(34)1
Goodwill, net
0 1
0 1
23 1
Goodwill, Purchase Accounting Adjustments
 
0 1
 
Allocation of Acquired Goodwill
 
0 1
 
Impairment losses
 
(23)1
 
Currency translation and other
0 1
0 1
 
Goodwill, end of period
57 1
57 1
 
Unallocated Goodwill [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, beginning of period
0 
4,804 
 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
0 
0 
4,804 
Goodwill, Purchase Accounting Adjustments
 
(14)
 
Allocation of Acquired Goodwill
 
(4,790)
 
Impairment losses
 
0 
 
Currency translation and other
0 
0 
 
Goodwill, end of period
$ 0 
$ 0 
 
Goodwill And Other Intangible Assets (Other Intangible Assets By Type) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
$ 1,277 
$ 1,282 
Less accumulated amortization
271 
192 
Total net amortizable intangible assets
1,006 
1,090 
Brands and trademarks not subject to amortization
4,078 
4,078 
Total intangible assets
5,084 
5,168 
Brands and Trademarks [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
590 
594 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
564 
564 
Patents, Intellectual Property and Other [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
114 
115 
Land Use Rights [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Total gross amortizable intangible assets
$ 9 
$ 9 
Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
 
Goodwill, Purchase Accounting Adjustments
 
$ 14 
 
Amortization expense on intangible assets
80 
92 
26 
Estimated amortization expense on intangible assets, 2015
78 
 
 
Estimated amortization expense on intangible assets, 2016
76 
 
 
Estimated amortization expense on intangible assets, 2017
72 
 
 
Estimated amortization expense on intangible assets, 2018
69 
 
 
Estimated amortization expense on intangible assets, 2019
66 
 
 
Hillshire Brands Company [Member]
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Goodwill, Purchase Accounting Adjustments
 
$ 14 
 
Debt (Major Components Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Oct. 1, 2016
Tranche B due August 2019 [Member]
Term Loan [Member]
Oct. 3, 2015
Tranche B due August 2019 [Member]
Term Loan [Member]
Oct. 3, 2015
2.75% Senior notes due September 2015 [Member]
Oct. 1, 2016
6.60% Senior Notes Due April 2016 [Member]
Mar. 31, 2016
6.60% Senior Notes Due April 2016 [Member]
Oct. 3, 2015
6.60% Senior Notes Due April 2016 [Member]
Oct. 1, 2016
7.00% Notes Due May 2018 [Member]
Oct. 3, 2015
7.00% Notes Due May 2018 [Member]
Oct. 1, 2016
2.65% Senior notes due August 2019 [Member]
Oct. 3, 2015
2.65% Senior notes due August 2019 [Member]
Oct. 1, 2016
4.10% Notes due September 2020 [Member]
Oct. 3, 2015
4.10% Notes due September 2020 [Member]
Oct. 1, 2016
4.50% Senior Notes Due June 2022 [Member]
Oct. 3, 2015
4.50% Senior Notes Due June 2022 [Member]
Oct. 1, 2016
3.95% Notes due August 2024 [Member]
Oct. 3, 2015
3.95% Notes due August 2024 [Member]
Oct. 1, 2016
7.00% Notes due January 2028 [Member]
Oct. 3, 2015
7.00% Notes due January 2028 [Member]
Oct. 1, 2016
6.13% Notes due November 2032 [Member]
Oct. 3, 2015
6.13% Notes due November 2032 [Member]
Oct. 1, 2016
4.88% Notes due August 2034 [Member]
Oct. 3, 2015
4.88% Notes due August 2034 [Member]
Oct. 1, 2016
5.15% Notes due August 2044 [Member]
Oct. 3, 2015
5.15% Notes due August 2044 [Member]
Oct. 1, 2016
Tranche B due April 2019 [Member]
Term Loan [Member]
Oct. 3, 2015
Tranche B due April 2019 [Member]
Term Loan [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility
$ 300 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes
 
 
 
552 
552 
 
0 
638 
638 
120 
120 
1,000 
1,000 
284 
285 
1,000 
1,000 
1,250 
1,250 
18 
18 
163 
163 
500 
500 
500 
500 
500 
500 
Discount on senior notes
(8)
(10)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Equity Units, Carrying Amount of Debt Component
71 
140 
205 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
58 
69 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized debt issuance costs
(29)
(35)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
6,279 
6,690 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less current debt
79 
715 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
$ 6,200 
$ 5,975 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stated interest rate
 
 
 
1.69% 
 
2.75% 
6.60% 
 
 
7.00% 
 
2.65% 
 
4.10% 
 
4.50% 
 
3.95% 
 
7.00% 
 
6.13% 
 
4.88% 
 
5.15% 
 
1.31% 
 
Debt (Narrative) (Details) (USD $)
Share data in Millions, unless otherwise specified
0 Months Ended 12 Months Ended 0 Months Ended
Oct. 1, 2016
Oct. 1, 2016
6.60% Senior Notes Due April 2016 [Member]
Mar. 31, 2016
6.60% Senior Notes Due April 2016 [Member]
Oct. 3, 2015
6.60% Senior Notes Due April 2016 [Member]
Oct. 15, 2013
3.25% Convertible senior notes due October 2013 [Member]
Sep. 30, 2008
3.25% Convertible senior notes due October 2013 [Member]
Oct. 3, 2015
2.75% Senior notes due September 2015 [Member]
Oct. 1, 2016
Class A [Member]
Oct. 15, 2013
Class A [Member]
3.25% Convertible senior notes due October 2013 [Member]
Oct. 15, 2013
Class A [Member]
2008 Warrants [Member]
Oct. 1, 2016
Standby Letters of Credit [Member]
Oct. 1, 2016
Bilateral Letters Of Credit [Member]
Oct. 1, 2016
Term Loan [Member]
Tranche B due April 2019 [Member]
Oct. 3, 2015
Term Loan [Member]
Tranche B due April 2019 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes
 
$ 0 
$ 638,000,000 
$ 638,000,000 
 
 
 
 
 
 
 
 
$ 500,000,000 
$ 500,000,000 
Maturities of debt in 2016
79,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2017
128,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2018
2,359,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2019
285,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2020
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity under credit facility
1,250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available for borrowing under credit facility
943,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit issued amount
 
 
 
 
 
 
 
 
 
 
7,000,000 
91,000,000 
 
 
Debt instrument, face amount
 
 
 
 
 
458,000,000.00 
 
 
 
 
 
 
 
 
Interest rate
 
6.60% 
 
 
 
3.25% 
2.75% 
 
 
 
 
 
1.31% 
 
Repayments of Long-term Debt
 
 
 
 
$ 458,000,000 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Conversion of Convertible Securities
 
 
 
 
 
 
 
18.8 
11.7 
 
 
 
 
 
Stock Redeemed or Called During Period, Shares
 
 
 
 
 
 
 
 
11.7 
 
 
 
 
 
Stock Issued During Period, Shares, Treasury Stock Reissued
 
 
 
 
 
 
 
 
 
11.7 
 
 
 
 
Equity (Schedule of Share Repurchases) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Class of Stock [Line Items]
 
 
 
Dollars
$ 1,944 
$ 495 
$ 295 
Class A [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Shares
32.1 
11.9 
8.3 
Dollars
1,944 
495 
295 
Class A [Member] |
Share Repurchase Program [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Shares
30.8 
11.0 
7.1 
Dollars
1,868 
455 
250 
Class A [Member] |
Open Market Repurchases [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Shares
1.3 
0.9 
1.2 
Dollars
$ 76 
$ 40 
$ 45 
Equity (Schedule of Tangible Equity Units) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Equity [Abstract]
 
 
 
Price per TEU, Equity Component (in dollars per share)
 
 
$ 43.17 
Price per TEU, Debt Component (in dollars per share)
 
 
$ 6.83 
Price per TEU, Total (in dollars per share)
 
 
$ 50 
Gross Proceeds, Equity Component
 
 
$ 1,295 
Gross Proceeds, Debt Component
0 
0 
205 
Gross Proceeds, Total
 
 
1,500 
Issuance cost, Equity Component
 
 
(40)
Issuance cost, Debt Component
 
 
(6)
Issuance cost, Total
 
 
(46)
Net proceeds, Equity Component
0 
0 
1,255 
Net proceeds, Debt Component
 
 
199 
Net proceeds, Total
 
 
$ 1,454 
Equity (Narrative) (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 2 Months Ended 12 Months Ended 0 Months Ended
Oct. 1, 2016
TEUPurchaseContracts
Classes
Oct. 3, 2015
Sep. 27, 2014
Sep. 27, 2014
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Oct. 1, 2016
Tyson Limited Partnership And Tyson Family [Member]
Sep. 15, 2015
Class A [Member]
Oct. 1, 2016
Class A [Member]
Oct. 3, 2015
Class A [Member]
Sep. 27, 2014
Class A [Member]
Oct. 1, 2016
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Oct. 1, 2016
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Minimum [Member]
Oct. 1, 2016
Class A [Member]
Convertible Debt [Member]
Tangible Equity Unit, Senior Amortizing Note [Member]
Maximum [Member]
Sep. 27, 2014
Class A [Member]
Hillshire Brands Company [Member]
Feb. 4, 2016
Class A [Member]
Share Repurchase Program [Member]
Oct. 1, 2016
Class A [Member]
Share Repurchase Program [Member]
Oct. 3, 2015
Class A [Member]
Share Repurchase Program [Member]
Sep. 27, 2014
Class A [Member]
Share Repurchase Program [Member]
Nov. 16, 2016
Class A [Member]
Subsequent Event [Member]
Nov. 21, 2016
Class A [Member]
Subsequent Event [Member]
Share Repurchase Program [Member]
Oct. 1, 2016
Class A [Member]
Tyson Limited Partnership And Tyson Family [Member]
Oct. 1, 2016
Class B [Member]
Oct. 3, 2015
Class B [Member]
Sep. 27, 2014
Class B [Member]
Nov. 16, 2016
Class B [Member]
Subsequent Event [Member]
Oct. 1, 2016
Class B [Member]
Tyson Limited Partnership [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of classes of common stock
2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, par value
 
 
 
 
 
 
 
$ 0.10 
$ 0.10 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.10 
$ 0.10 
 
 
 
Common Stock, Vote Entitlement Per Share
 
 
 
 
 
 
 
$ 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 10 
 
 
 
 
Tyson Family Ownership Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.06% 
 
 
 
 
99.985% 
Related Party Voting Rights Percentage
 
 
 
 
 
71.18% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Dividends, Paid Ratio To Other Class Of Stock, Maximum
90.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Stock, Dividends, Per Share, Cash Paid
 
 
 
 
 
 
$ 0.15 
$ 0.60 
$ 0.40 
$ 0.30 
 
 
 
 
 
 
 
 
 
 
 
$ 0.54 
$ 0.36 
$ 0.27 
 
 
Common Stock, Dividends, Per Share, Declared
 
 
 
 
 
 
 
$ 0.650 
$ 0.425 
$ 0.325 
 
 
 
 
 
 
 
 
$ 0.225 
 
 
$ 0.585 
$ 0.383 
$ 0.294 
$ 0.2025 
 
Stock Repurchase Program, Increase (Decrease) in Authorized Shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased
40,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of Class A common stock, shares
 
 
 
 
 
 
 
32,100,000 
11,900,000 
8,300,000 
 
 
 
 
 
30,800,000 
11,000,000 
7,100,000 
 
3,600,000 
 
 
 
 
 
 
Purchases of Tyson Class A common stock
$ 1,944,000,000 
$ 495,000,000 
$ 295,000,000 
 
 
 
 
$ 1,944,000,000 
$ 495,000,000 
$ 295,000,000 
 
 
 
 
 
$ 1,868,000,000 
$ 455,000,000 
$ 250,000,000 
 
$ 255,000,000 
 
 
 
 
 
 
Stock Issued During Period, Shares, New Issues
 
 
 
 
 
 
 
18,000,000 
0 
24,000,000 
 
 
 
23,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from issuance of common stock, net of issuance costs
0 
0 
873,000,000 
 
873,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs issued (in units)
 
 
30,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs, Dividend Rate
 
 
4.75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds from issuance of TEUs
 
 
1,454,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs, stated amount per unit (in dollars per unit)
 
 
$ 50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs, Equity Component
 
 
1,295,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TEUs, Debt Component
71,000,000 
140,000,000 
205,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, initial principal amount
 
 
 
6.83 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, interest rate
 
 
 
1.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, quarterly principal and interest payment, first three annual quarters
 
 
 
0.59 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, number of shares to be issued
 
 
 
 
 
 
 
 
 
 
 
13,100,000 
16,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, conversion price
 
 
 
 
 
 
 
 
 
 
$ 46.90 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, number of shares per contract if Applicable Market Value equal to or greater than conversion price
 
 
 
 
 
 
 
 
 
 
1.0660 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, reference price
 
 
 
 
 
 
 
 
 
 
$ 37.52 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, if applicable market value greater than reference price, number of shares equal to amount divided by Applicable Market Value
 
 
 
 
 
 
 
 
 
 
$ 50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, number of shares per contract, if Applicable Market Value is less than or equal to reference price
 
 
 
 
 
 
 
 
 
 
1.3326 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, consecutive trading days for calculation of applicable market value
 
 
 
 
 
 
 
 
 
 
20 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Dividend Threshold Amount
 
 
 
 
 
 
 
 
 
 
$ 0.075 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior amortizing note, incremental common shares attributable to dilutive effect of conversion, if applicable market value higher than reference price
 
 
 
 
 
 
 
 
 
 
3,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Equity Units, Purchase Contracts, Settled
17,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Issued During Period, Shares, Conversion of Convertible Securities
 
 
 
 
 
 
 
18,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Equity Units, Outstanding
$ 12,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes (Provision For Income Taxes From Continuing Operations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Income Tax Disclosure [Abstract]
 
 
 
Federal
$ 710 
$ 564 
$ 325 
State
118 
89 
67 
Foreign
(2)
44 
4 
Current
742 
659 
501 
Deferred
84 
38 
(105)
Income Tax Expense
$ 826 
$ 697 
$ 396 
Income Taxes (Reasons For Differences Between Statutory Federal Tax Rate And Effective Income Tax Rate) (Details)
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Income Tax Disclosure [Abstract]
 
 
 
Federal income tax rate
35.00% 
35.00% 
35.00% 
State income taxes
2.70% 
3.10% 
2.80% 
Unrecognized tax benefits, net
(1.70%)
(1.80%)
(4.70%)
Domestic production deduction
(2.60%)
(3.70%)
(4.00%)
Foreign rate differences and valuation allowances
0.00% 
3.80% 
2.80% 
Other
(1.60%)
(0.10%)
(0.30%)
Effective income tax rate
31.80% 
36.30% 
31.60% 
Income Taxes (Tax Effects Of Major Items Recorded As Deferred Tax Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Income Tax Disclosure [Abstract]
 
 
Deferred Tax Assets, Property, plant and equipment
$ 0 
$ 0 
Deferred Tax Liabilities, Property, plant and equipment
857 
783 
Deferred Tax Assets, Intangible assets
0 
0 
Deferred Tax Liabilities, Intangible assets
1,979 
2,000 
Deferred Tax Assets, Accrued expenses
400 
439 
Deferred Tax Liabilities, Accrued expenses
0 
0 
Deferred Tax Assets, Net operating loss and other carryforwards
86 
97 
Deferred Tax Liabilities, Net operating loss and other carryforwards
0 
0 
Deferred Tax Assets, Other
140 
122 
Deferred Tax Liabilities, Other
259 
238 
Deferred Tax Assets, Gross
626 
658 
Deferred Tax Liabilities, Gross
3,095 
3,021 
Deferred Tax Assets, Valuation allowance
(72)
(68)
Deferred Tax Liabilities, Net
$ 2,541 
$ 2,431 
Income Taxes (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Income Tax Disclosures [Line Items]
 
 
 
Domestic production deduction
$ 68 
$ 72 
$ 50 
Decrease in unrecognized tax benefits
43 
34 
58 
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount
70 
59 
 
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount
 
73 
 
Income (Loss) from Continuing Operations before Income Taxes, Domestic
2,543 
1,908 
1,270 
Tax credit carryforwards
42 
 
 
Accumulated undistributed earnings of foreign subsidiaries
219 
139 
 
Unrecognized tax benefits that would impact effective tax rate
205 
244 
 
Unrecognized tax benefits, income tax penalties and interest accrued
52 
46 
 
Decrease in Unrecognized Tax Benefits is Reasonably Possible
10 
 
 
State and Local Jurisdiction [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating loss carryforwards
845 
 
 
Foreign Country [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating loss carryforwards
$ 35 
 
 
Other Income And Charges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended
Jun. 27, 2015
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Oct. 1, 2016
Other Nonoperating Income (Expense) [Member]
Oct. 3, 2015
Other Nonoperating Income (Expense) [Member]
Sep. 27, 2014
Other Nonoperating Income (Expense) [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Bridge Facility Commitment [Member]
Other Nonoperating Income (Expense) [Member]
Oct. 3, 2015
Other [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Other [Member]
Cost of Sales [Member]
Components of Other Income and Charges [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Asset Impairment Charges
 
$ 45 
$ 285 
$ 107 
 
 
 
 
 
 
$ 169 
$ 169 
Property, Plant and Equipment, Transfers and Changes
 
 
 
 
 
 
 
 
 
126 
 
 
Goodwill, Impairment Loss
 
 
23 
 
 
 
 
 
23 1
23 
 
 
Impairment of other assets
 
 
 
 
 
 
 
 
 
20 
 
 
Equity Earnings In Joint Ventures
 
 
 
 
12 
12 
11 
 
 
 
 
 
Foreign Currency Transaction Loss, before Tax
 
 
 
 
4 
 
 
 
 
 
 
 
Gain (Loss) on Sale of Equity Investments
21 
 
 
 
 
21 
 
 
 
 
 
 
Foreign currency exchange gains, net
 
 
 
 
 
 
3 
 
 
 
 
 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
 
 
 
 
 
 
6 
 
 
 
 
 
Expense Associated with Bridge Facility
 
 
 
 
 
 
 
$ 60 
 
 
 
 
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 1, 2016
Jul. 2, 2016
Apr. 2, 2016
Jan. 2, 2016
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
 
 
 
 
 
 
 
$ 1,772 
$ 1,224 
$ 856 
Less: Net income (loss) attributable to noncontrolling interest
 
 
 
 
 
 
 
 
4 
4 
(8)
Net income from continuing operations attributable to Tyson
 
 
 
 
 
 
 
 
1,768 
1,220 
864 
Undistributed earnings
 
 
 
 
 
 
 
 
1,535 
1,065 
749 
Stock options and restricted stock
 
 
 
 
 
 
 
 
5 
5 
5 
Tangible Equity Units
 
 
 
 
 
 
 
 
0 
3 
1 
Warrants
 
 
 
 
 
 
 
 
0 
0 
4 
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions
 
 
 
 
 
 
 
 
390 
413 
364 
Net Income Per Share Attributable to Tyson - Diluted
$ 1.03 
$ 1.25 
$ 1.10 
$ 1.15 
$ 0.63 
$ 0.83 
$ 0.75 
$ 0.74 
$ 4.53 
$ 2.95 
$ 2.37 
Class A [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Less dividends:
 
 
 
 
 
 
 
 
192 
129 
94 
Undistributed earnings
 
 
 
 
 
 
 
 
1,279 
896 
612 
Weighted average number of shares outstanding - Basic
 
 
 
 
 
 
 
 
315 
335 
284 
Net Income Per Share Attributable to Tyson - Basic
$ 1.06 
$ 1.29 
$ 1.14 
$ 1.18 
$ 0.65 
$ 0.86 
$ 0.78 
$ 0.77 
$ 4.67 
$ 3.06 
$ 2.48 
Class B [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Less dividends:
 
 
 
 
 
 
 
 
41 
26 
21 
Undistributed earnings
 
 
 
 
 
 
 
 
$ 256 
$ 169 
$ 137 
Weighted average number of shares outstanding - Basic
 
 
 
 
 
 
 
 
70 
70 
70 
Net Income Per Share Attributable to Tyson - Basic
$ 0.96 
$ 1.17 
$ 1.02 
$ 1.09 
$ 0.59 
$ 0.78 
$ 0.71 
$ 0.71 
$ 4.24 
$ 2.79 
$ 2.26 
Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
Number of classes of common stock
2 
 
 
Cash Dividends, Paid Ratio To Other Class Of Stock, Maximum
90.00% 
 
 
Class A [Member]
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
Undistributed earnings (losses), ratio used to calculate allocation to class of stock
1 
 
 
Class B [Member]
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
Undistributed earnings (losses), ratio used to calculate allocation to class of stock
0.9 
 
 
Stock-based compensation [Member]
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
0 
5 
4 
Derivative Financial Instruments (Aggregate Outstanding Notionals) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
bu
Oct. 3, 2015
bu
Corn (in bushels)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
50,000,000 
18,000,000 
Soy Meal (in tons)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
389,700 
284,900 
Live Cattle (in pounds)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
28,000,000 
102,000,000 
Lean Hogs (in pounds)
 
 
Derivative [Line Items]
 
 
Derivative, Nonmonetary Notional Amount
158,000,000 
166,000,000 
Foreign Exchange Contract [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
$ 38 
$ 42 
Derivative Financial Instruments (Pretax Impact Of Cash Flow Hedge Derivative Instruments On The Consolidated Statements Of Income) (Details) (Cash Flow Hedge [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ (1)
$ (4)
$ (8)
Gain/(Loss) Reclassified from OCI to Earnings
1 
(7)
(10)
Commodity Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
(1)
(4)
(7)
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Reclassified from OCI to Earnings
1 
(7)
(10)
Foreign Currency [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
0 
0 
(1)
Foreign Currency [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Reclassified from OCI to Earnings
$ 0 
$ 0 
$ 0 
Derivative Financial Instruments (Pretax Impact Of Fair Value Hedge Derivative Instruments On The Consolidated Statements of Income) (Details) (Fair Value Hedging [Member], Cost of Sales [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Forward Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) on forwards
$ 89 
$ 17 
$ (154)
Purchase Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) on forwards
$ (89)
$ (17)
$ 154 
Derivative Financial Instruments (Pretax Impact Of Undesignated Derivative Instruments On The Consolidated Statements Of Income) (Details) (Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
$ (54)
$ (99)
$ (61)
Commodity Contracts [Member] |
Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
(73)
(62)
75 
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
17 
(33)
(136)
Foreign Currency [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
$ 2 
$ (4)
$ 0 
Derivative Financial Instruments (Narrative) (Details) (Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Cash Flow Hedging [Member]
 
Derivative [Line Items]
 
Cash flow hedge gain (loss) to be reclassified within twelve months
$ 3 
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative assets and liabilities posted cash collateral
$ 8 
$ 5 
Derivative, Collateral, Obligation to Return Cash
0 
0 
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(61)1
(44)1
Available-for-sale Securities, Current
4 
2 
Available-for-sale Securities, Noncurrent
93 
93 
Deferred Compensation Assets
254 
231 
Total Assets
400 
343 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(69)1
(49)1
Total Liabilities
0 
2 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Current
0 
0 
Available-for-sale Securities, Noncurrent
0 
0 
Deferred Compensation Assets
18 
9 
Total Assets
18 
9 
Total Liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Current
2 
1 
Available-for-sale Securities, Noncurrent
38 
33 
Deferred Compensation Assets
236 
222 
Total Assets
386 
317 
Total Liabilities
69 
51 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities, Current
2 
1 
Available-for-sale Securities, Noncurrent
55 
60 
Deferred Compensation Assets
0 
0 
Total Assets
57 
61 
Total Liabilities
0 
0 
Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
45 
17 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(27)1
(35)1
Derivatives Liabilities
0 
0 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(1)1
(2)1
Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
0 
Derivatives Liabilities
0 
0 
Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
72 
52 
Derivatives Liabilities
1 
2 
Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
0 
Derivatives Liabilities
0 
0 
Not Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
4 
0 
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset
(34)1
(9)1
Derivatives Liabilities
0 
2 
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset
(68)1
(47)1
Not Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
0 
Derivatives Liabilities
0 
0 
Not Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
38 
9 
Derivatives Liabilities
68 
49 
Not Designated as Hedging Instrument [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivatives Assets
0 
0 
Derivatives Liabilities
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Balance at beginning of year
$ 61 
$ 67 
Total realized and unrealized gains (losses), Included in earnings
0 
0 
Total realized and unrealized gains (losses), Included in other comprehensive income (loss)
0 
0 
Purchases
12 
20 
Issuances
0 
0 
Settlements
(16)
(26)
Balance at end of year
57 
61 
Total gains (losses) for the periods included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of year
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
U.S. Treasury and Agency [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
$ 40 
$ 33 
Fair Value
40 
34 
Unrealized Gain/(Loss)
0 
1 
Corporate And Asset-Backed [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
56 
60 
Fair Value
57 
61 
Unrealized Gain/(Loss)
$ 1 
$ 1 
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Fair Value Disclosures [Abstract]
 
 
Debt Instrument, Fair Value Disclosure
$ 6,698 
$ 6,900 
Total Debt, Carrying Value
$ 6,279 
$ 6,690 
Fair Value Measurements Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Oct. 3, 2015
Beef [Member]
Oct. 3, 2015
Prepared Foods [Member]
Oct. 3, 2015
Other [Member]
Sep. 27, 2014
Other [Member]
Chicken Production Operations in Brazil [Member]
Oct. 3, 2015
Facility Closing [Member]
Operating Segments [Member]
Beef [Member]
Oct. 3, 2015
Facility Closing [Member]
Operating Segments [Member]
Prepared Foods [Member]
Sep. 27, 2014
Facility Closing [Member]
Operating Segments [Member]
Prepared Foods [Member]
Facilities
Oct. 3, 2015
Facility Closing [Member]
Operating Segments [Member]
Cost of Sales [Member]
Prepared Foods [Member]
Oct. 3, 2015
Facility Closing [Member]
Operating Segments [Member]
Selling, General and Administrative Expenses [Member]
Prepared Foods [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Beef [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Prepared Foods [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Cost of Sales [Member]
Prepared Foods [Member]
Oct. 3, 2015
Fair Value, Measurements, Nonrecurring [Member]
Facility Closing [Member]
Operating Segments [Member]
Selling, General and Administrative Expenses [Member]
Prepared Foods [Member]
Oct. 1, 2016
Maximum [Member]
Oct. 1, 2016
Maximum [Member]
Accounts Receivable [Member]
Customer Concentration Risk [Member]
Oct. 3, 2015
Maximum [Member]
Accounts Receivable [Member]
Customer Concentration Risk [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Other [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Fair Value, Measurements, Nonrecurring [Member]
Cost of Sales [Member]
Other [Member]
Oct. 1, 2016
Wal-Mart Stores, Inc. [Member]
Accounts Receivable [Member]
Customer Concentration Risk [Member]
Oct. 3, 2015
Wal-Mart Stores, Inc. [Member]
Accounts Receivable [Member]
Customer Concentration Risk [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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 years 
 
 
 
 
 
 
 
 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Portion Attributable to Parent
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Impairment Charges
45 
285 
107 
 
 
 
39 
12 
59 
52 
49 
10 
12 
59 
49 
10 
 
 
 
 
169 
169 
169 
 
 
Property, Plant and Equipment, Transfers and Changes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
126 
 
 
 
 
 
Goodwill, Impairment Loss
 
23 
 
0 
0 
23 1
 
 
 
 
 
 
 
 
 
 
 
 
 
23 
 
 
 
 
 
Impairment of other assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 20 
 
 
 
 
 
Plants Closed
 
 
 
 
 
 
 
 
 
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Concentration, Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.00% 
10.00% 
 
 
 
 
18.90% 
20.00% 
Stock-Based Compensation (Summary Of Stock Options) (Details) (Stock Options [Member], USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Stock Options [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Shares Under Option - Outstanding, October 3, 2015
14,735,065 
Shares Under Option - Exercised
(5,286,342)
Shares Under Option - Canceled
(126,038)
Shares Under Option - Granted
1,868,971 
Shares Under Option - Outstanding, October 1, 2016
11,191,656 
Weighted Average Exercise Price Per Share - Outstanding, October 3, 2015
$ 28.30 
Weighted Average Exercise Price Per Share - Exercised
$ 24.13 
Weighted Average Exercise Price Per Share - Canceled
$ 42.29 
Weighted Average Exercise Price Per Share - Granted
$ 50.00 
Weighted Average Exercise Price Per Share - Outstanding, October 1, 2016
$ 33.74 
Weighted Average Remaining Contractual Life (in Years) - Outstanding, October 1, 2016
7 years 
Aggregate Intrinsic Value - Outstanding, October 1, 2016
$ 458 
Shares Under Option - Exercisable, October 1, 2016
5,334,155 
Weighted Average Exercise Price Per Share - Exercisable at October 1, 2016
$ 23.87 
Weighted Average Remaining Contractual Life (in Years) - Exercisable, October 1, 2016
5 years 8 months 
Aggregate Intrinsic Value - Exercisable, October 1, 2016
$ 271 
Stock-Based Compensation (Assumption Of Fair Value Calculation Of Each Year's Grants) (Details)
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected life (in years)
6 years 5 months 
6 years 1 month 
6 years 
Risk-free interest rate
1.60% 
1.60% 
1.30% 
Expected volatility
24.80% 
26.70% 
36.00% 
Expected dividend yield
 
1.00% 
1.00% 
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected dividend yield
1.20% 
 
 
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected dividend yield
2.60% 
 
 
Stock-Based Compensation (Summary Of Restricted Stock) (Details) (Restricted Stock [Member], USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
 
 
Number of Shares - Nonvested, October 3, 2015
1,107,928 
 
 
Number of Shares - Granted
686,648 
 
 
Number of Shares - Dividends
15,653 
 
 
Number of Shares - Vested
(155,600)
(500,000)
(600,000)
Number of Shares - Forfeited
(51,763)
 
 
Number of Shares - Nonvested, October 1, 2016
1,602,866 
1,107,928 
 
Weighted Average Grant Date Fair Value Per Share - Nonvested, October 3, 2015
$ 36.76 
 
 
Weighted Average Grant-Date Fair Value Per Share - Granted
$ 50.00 
 
 
Weighted Average Grant-Date Fair Value Per Share - Dividends
$ 46.79 
 
 
Weighted Average Grant-Date Fair Value Per Share - Vested
$ 24.48 
 
 
Weighted Average Grant-Date Fair Value Per Share - Forfeited
$ 45.18 
 
 
Weighted Average Grant Date Fair Value Per Share - Nonvested, October 1, 2016
$ 43.45 
$ 36.76 
 
Weighted Average Remaining Contractual Life (in Years), Nonvested, October 1, 2016
1 year 4 months 
 
 
Aggregate Intrinsic Value - Nonvested, October 1, 2016
$ 120 
 
 
Stock-Based Compensation (Summary of Performance-Based Shares) (Details) (Performance Shares [Member], USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Performance Shares [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
 
Number of Shares - Nonvested, October 3, 2015
1,835,100 
Number of Shares - Granted
1,178,353 
Number of Shares - Vested
(803,821)
Number of Shares - Forfeited
(62,563)
Number of Shares - Nonvested, October 1, 2016
2,147,069 
Weighted Average Grant Date Fair Value Per Share - Nonvested, October 3, 2015
$ 32.03 
Weighted Average Grant-Date Fair Value Per Share - Granted
$ 54.44 
Weighted Average Grant-Date Fair Value Per Share - Vested
$ 21.67 
Weighted Average Grant-Date Fair Value Per Share - Forfeited
$ 34.06 
Weighted Average Grant Date Fair Value Per Share - Nonvested, October 1, 2016
$ 48.15 
Weighted Average Remaining Contractual Life (in Years), Nonvested, October 1, 2016
1 year 5 months 
Aggregate Intrinsic Value - Nonvested, October 1, 2016
$ 160 
Stock-Based Compensation (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Shares available for future grant
20,726,621 
 
 
Stock Options [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
3 years 
 
 
Expiration period
10 years 
 
 
Grant-date fair value of options granted
$ 11.47 
$ 11.51 
$ 10.83 
Stock-based compensation expense, net of income taxes
$ 23 
$ 27 
$ 20 
Related tax benefit
15 
17 
13 
Options vested (in shares)
3,800,000 
3,800,000 
4,800,000 
Grant date fair value of options vested
38 
32 
30 
Cash received from exercise of stock options
128 
84 
67 
Tax benefit related to stock options exercised
80 
30 
33 
Total intrinsic value of options exercised
204 
79 
87 
Amount realized, related to excess tax deductions
58 
19 
24 
Total unrecognized compensation cost related to stock option plans
29 
 
 
Total unrecognized compensation cost, time frame for recognition, weighted average number of years
1 year 1 month 
 
 
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock-based compensation expense, net of income taxes
14 
9 
6 
Related tax benefit
9 
6 
4 
Number of Shares - Vested
(155,600)
(500,000)
(600,000)
Total unrecognized compensation cost, time frame for recognition, weighted average number of years
1 year 9 months 
 
 
Total unrecognized compensation cost related to share-based awards other than options
33 
 
 
Restricted stock awards, grant date fair value of shares vested
4 
10 
11 
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period
3 years 
 
 
Stock-based compensation expense, net of income taxes
11 
5 
4 
Related tax benefit
7 
3 
2 
Number of Shares - Vested
(803,821)
 
 
Total unrecognized compensation cost, time frame for recognition, weighted average number of years
2 years 0 months 
 
 
Total unrecognized compensation cost related to share-based awards other than options
$ 30 
 
 
Performance Shares [Member] |
Minimum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting rights, performance criteria
0.00% 
 
 
Performance Shares [Member] |
Maximum [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting rights, performance criteria
200.00% 
 
 
Pensions And Other Postretirement Benefits (Reconciliation Of Changes In Plans' Benefit Obligations, Assets And Funded Status) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
$ 1,576 
 
 
Employer contributions
64 
14 
9 
Ending balance
1,440 
1,576 
 
Funded Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
1,785 
1,849 
 
Service cost
8 
10 
1 
Interest cost
65 
78 
10 
Plan Amendments
0 
0 
 
Plan participants' contributions
0 
0 
 
Actuarial (gain) loss
21 
(50)
 
Benefits paid
(339)
(102)
 
Defined Benefit Plan, Other Changes
14 
0 
 
Benefit obligation at end of year
1,554 
1,785 
1,849 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
1,576 
1,647 
 
Actual return on plan assets
135 
25 
 
Employer contributions
54 
6 
 
Plan participants' contributions
0 
0 
 
Benefits paid
(339)
(102)
 
Other
14 
0 
 
Ending balance
1,440 
1,576 
1,647 
Funded status
(114)
(209)
 
Unfunded Non-Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
201 
182 
 
Service cost
6 
8 
7 
Interest cost
9 
8 
5 
Plan Amendments
0 
0 
 
Plan participants' contributions
0 
0 
 
Actuarial (gain) loss
16 
11 
 
Benefits paid
(10)
(8)
 
Defined Benefit Plan, Other Changes
0 
0 
 
Benefit obligation at end of year
222 
201 
182 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
0 
3 
 
Actual return on plan assets
0 
0 
 
Employer contributions
10 
8 
 
Plan participants' contributions
0 
0 
 
Benefits paid
(10)
(8)
 
Other
0 
(3)
 
Ending balance
0 
0 
3 
Funded status
(222)
(201)
 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
114 
163 
 
Service cost
1 
5 
2 
Interest cost
3 
7 
3 
Plan Amendments
(58)
(60)
 
Plan participants' contributions
1 
2 
 
Actuarial (gain) loss
(15)
9 
 
Benefits paid
(10)
(12)
 
Defined Benefit Plan, Other Changes
0 
0 
 
Benefit obligation at end of year
36 
114 
163 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
0 
0 
 
Actual return on plan assets
0 
0 
 
Employer contributions
9 
10 
 
Plan participants' contributions
1 
2 
 
Benefits paid
(10)
(12)
 
Other
0 
0 
 
Ending balance
0 
0 
0 
Funded status
$ (36)
$ (114)
 
Pensions And Other Postretirement Benefits (Amounts Recognized In The Consolidated Balance Sheets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Funded Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other current liabilities
$ 0 
$ 0 
Other liabilities
(114)
(209)
Pension and Other Postretirement Defined Benefit Plans, Liabilities
(114)
(209)
Unfunded Non-Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other current liabilities
(9)
(9)
Other liabilities
(213)
(192)
Pension and Other Postretirement Defined Benefit Plans, Liabilities
(222)
(201)
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Other current liabilities
(4)
(20)
Other liabilities
(32)
(94)
Pension and Other Postretirement Defined Benefit Plans, Liabilities
$ (36)
$ (114)
Pensions And Other Postretirement Benefits Pensions and Other Postretirement Benefits (Amounts Recognized in Other Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Funded Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive (income)/loss, Actuarial loss
$ 17 
$ 57 
Accumulated other comprehensive (income)/loss, Prior service cost/(credit)
0 1
0 1
Total accumulated other comprehensive (income)/loss
17 
57 
Unfunded Non-Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive (income)/loss, Actuarial loss
55 
43 
Accumulated other comprehensive (income)/loss, Prior service cost/(credit)
0 1
0 1
Total accumulated other comprehensive (income)/loss
55 
43 
Other Postretirement Benefit Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accumulated other comprehensive (income)/loss, Actuarial loss
0 
0 
Accumulated other comprehensive (income)/loss, Prior service cost/(credit)
(98)1
(59)1
Total accumulated other comprehensive (income)/loss
$ (98)
$ (59)
Pensions And Other Postretirement Benefits (Plans With Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Funded Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Projected benefit obligation
$ 1,550 
$ 1,781 
Accumulated benefit obligation
1,550 
1,781 
Fair value of plan assets
1,436 
1,572 
Unfunded Non-Qualified Pension Plan [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Projected benefit obligation
222 
201 
Accumulated benefit obligation
207 
193 
Fair value of plan assets
$ 0 
$ 0 
Pensions And Other Postretirement Benefits (Components Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans Recognized In The Consolidated Statements Of Income) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Funded Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
$ 8 
$ 10 
$ 1 
Interest cost
65 
78 
10 
Expected return on plan assets
(65)
(102)
(13)
Amortization of prior service cost
0 
0 
0 
Recognized actuarial (gain) loss, net
2 
2 
2 
Recognized settlement (gain) loss
(12)
8 
0 
Net periodic benefit (credit) cost
(2)
(4)
0 
Unfunded Non-Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
6 
8 
7 
Interest cost
9 
8 
5 
Expected return on plan assets
0 
0 
0 
Amortization of prior service cost
0 
0 
0 
Recognized actuarial (gain) loss, net
5 
4 
2 
Recognized settlement (gain) loss
0 
0 
0 
Net periodic benefit (credit) cost
20 
20 
14 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
1 
5 
2 
Interest cost
3 
7 
3 
Expected return on plan assets
0 
0 
0 
Amortization of prior service cost
(20)
(1)
0 
Recognized actuarial (gain) loss, net
(15)
9 
(8)
Recognized settlement (gain) loss
0 
(2)
0 
Net periodic benefit (credit) cost
$ (31)
$ 18 
$ (3)
Pensions And Other Postretirement Benefits (Weighted Average Assumptions) (Details)
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Funded Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
4.47% 
4.32% 
4.37% 
Discount rate to determine benefit obligations
3.72% 
4.47% 
4.32% 
Rate of compensation increase
 
0.01% 
0.01% 
Expected return on plan assets
4.15% 
4.61% 
6.37% 
Unfunded Non-Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
4.41% 
4.36% 
5.01% 
Discount rate to determine benefit obligations
3.77% 
4.41% 
4.36% 
Rate of compensation increase
2.46% 
2.31% 
2.11% 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
3.54% 
3.97% 
4.41% 
Discount rate to determine benefit obligations
3.09% 
3.54% 
3.97% 
Pensions And Other Postretirement Benefits (Health Care Cost Trend Rates) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Compensation and Retirement Disclosure [Abstract]
 
One Percentage Point Increase, Effect on postretirement benefit obligation
$ 1 
One Percentage Point Decrease, Effect on postretirement benefit obligation
$ 1 
Pensions And Other Postretirement Benefits (Actual And Target Asset Allocation For Pension Plan Assets) (Details)
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
100.00% 
100.00% 
Target Plan Asset Allocations
100.00% 
 
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
0.90% 
0.30% 
Target Plan Asset Allocations
0.00% 
 
Fixed Income Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
85.40% 
85.40% 
Target Plan Asset Allocations
86.00% 
 
Real Estate [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
3.80% 
3.60% 
Target Plan Asset Allocations
3.50% 
 
U.S. Stock Funds [Member] |
Equity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
3.70% 
3.90% 
Target Plan Asset Allocations
4.00% 
 
International Stock Funds [Member] |
Equity Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Actual Plan Asset Allocations
6.20% 
6.80% 
Target Plan Asset Allocations
6.50% 
 
Pensions And Other Postretirement Benefits (Categories Of Pension Plan Assets And Level Under Which Fair Values Were Determined In Fair Value Hierarchy) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
$ 1,440 
$ 1,576 
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
13 
5 
Insurance Contract At Contract Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
28 1
14 1
Total Assets in Fair Value Hierarchy [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
41 
19 
Common Collective Trusts [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
1,399 2
1,557 2
Level 1 [Member] |
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
13 
5 
Level 1 [Member] |
Insurance Contract At Contract Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
0 1
0 1
Level 1 [Member] |
Total Assets in Fair Value Hierarchy [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
13 
5 
Level 2 [Member] |
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
0 
0 
Level 2 [Member] |
Insurance Contract At Contract Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
0 1
0 1
Level 2 [Member] |
Total Assets in Fair Value Hierarchy [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
0 
0 
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
28 
14 
Level 3 [Member] |
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
0 
0 
Level 3 [Member] |
Insurance Contract At Contract Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
28 1
14 1
Level 3 [Member] |
Total Assets in Fair Value Hierarchy [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined Benefit Pension, Fair Value of Plan Assets
$ 28 
$ 14 
Pensions And Other Postretirement Benefits (Reconciliation Of Change In Fair Value Measurement Of Defined Benefit Plans' Consolidated Assets Using Significant Unobservable Inputs) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Oct. 1, 2016
Insurance Contract [Member]
Oct. 3, 2015
Insurance Contract [Member]
Oct. 1, 2016
Level 3 [Member]
Oct. 1, 2016
Level 3 [Member]
Insurance Contract [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
 
 
 
Beginning balance
$ 1,440 
$ 1,576 
$ 28 1
$ 14 1
$ 14 
$ 14 1
Assets still held at reporting date
 
 
 
 
0 
0 
Assets sold during the period
 
 
 
 
0 
0 
Purchases, sales and settlements, net
 
 
 
 
14 
14 
Transfers in and/or out of Level 3
 
 
 
 
0 
0 
Ending balance
$ 1,440 
$ 1,576 
$ 28 1
$ 14 1
$ 28 
$ 28 1
Pensions And Other Postretirement Benefits (Estimated Future Benefit Payments Expected To Be Paid) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Funded Qualified Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2017
$ 86 
2018
82 
2019
83 
2020
84 
2021
85 
2022-2026
434 
Unfunded Non-Qualified Pension Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2017
9 
2018
9 
2019
9 
2020
10 
2021
11 
2022-2026
62 
Other Postretirement Benefit Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2017
5 
2018
3 
2019
3 
2020
3 
2021
3 
2022-2026
$ 13 
Pensions And Other Postretirement Benefits (Multiemployer Plans) (Details) (Multiemployer Plans, Pension [Member], Bakery and Confectionary Union & Industry International Pension Fund [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Multiemployer Plans, Pension [Member] |
Bakery and Confectionary Union & Industry International Pension Fund [Member]
 
 
Multiemployer Plans [Line Items]
 
 
Multiemployer plan, contributions
$ 1 
$ 1 
Surcharge Imposed
10.00% 
 
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date
Oct. 10, 2015 1
 
Pensions And Other Postretirement Benefits (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
plan
Oct. 3, 2015
plan
Sep. 27, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Number of Plans
9 
 
 
Defined contribution retirement programs, expenses recognized
$ 67 
$ 62 
$ 53 
Number of defined benefit plans with accumulated benefit obligations in excess of plan assets
8 
8 
 
Healthcare cost trend rate, assumed, retirees who do qualify for Medicare
9.00% 
 
 
Healthcare cost trend rate, assumed, retirees who do not yet qualify for Medicare
7.60% 
 
 
Healthcare cost trend rate, ultimate rate
4.50% 
 
 
Defined Benefit Pension, Fair Value of Plan Assets
1,440 
1,576 
 
Expected contributions to pension plans for fiscal 2017
40 
 
 
Defined benefit plans funding
64 
14 
9 
Multiemployer Plans, Pension [Member] |
Bakery and Confectionary Union & Industry International Pension Fund [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Multiemployer plan, contributions
1 
1 
 
Multiemployer Plans, Pension [Member] |
Bakery and Confectionary Union & Industry International Pension Fund [Member] |
Pension and Other Postretirement Plans, Contributions, Total [Member] |
Multiemployer Plans Concentration Risk [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Concentration, Percentage (less than)
5.00% 
 
 
Unfunded Non-Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Number of Unfunded Non-Qualified Plans
3 
 
 
Amounts expected to be reclassified to earnings within next 12 months
6 
 
 
Defined Benefit Plan, Benefit Obligation
222 
201 
182 
Defined Benefit Pension, Fair Value of Plan Assets
0 
0 
3 
Defined benefit plans funding
10 
8 
 
Funded Qualified Pension Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Number of Funded Qualified Plans
6 
 
 
Defined Benefit Plan, Number of Frozen and Noncontributory Qualified Plans
5 
 
 
Number of defined benefit plans
2 
 
 
Accumulated benefit obligation
1,554 
1,785 
 
Amounts expected to be reclassified to earnings within next 12 months
1 
 
 
Defined Benefit Plan, Benefit Obligation
1,554 
1,785 
1,849 
Defined Benefit Pension, Fair Value of Plan Assets
1,440 
1,576 
1,647 
Defined benefit plans funding
54 
6 
 
Assumed Pension Plan Settlement Election Rate
50.00% 
 
 
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements
2 
 
 
Other Postretirement Benefit Plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amounts expected to be reclassified to earnings within next 12 months
(25)
 
 
Defined Benefit Plan, Benefit Obligation
36 
114 
163 
Defined Benefit Pension, Fair Value of Plan Assets
0 
0 
0 
Defined benefit plans funding
9 
10 
 
Postretirement Health Coverage [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined Benefit Plan, Number of Plans Subject to Partial Settlement, Health and Life Insurance Related
5 
 
 
Defined Benefit Plans, Not Impacted by Heathcare Cost Trend Rates
2 
 
 
Defined Benefit Plan, Benefit Obligation Not Impacted by Healthcare Cost Trend Due to Plan Amendments
2 
 
 
Defined Benefit Plan, Benefit Obligation Not Impacted by Healthcare Cost Trend
22 
 
 
Defined Benefit Plan, Benefit Obligation
12 
 
 
Defined Benefit Plans, Not Impacted by Heathcare Cost Trend Rates, Consisting of Fixed Annual Payments
1 
 
 
Defined Benefit Plans, Not Impacted by Heathcare Cost Trend Rates, Life Insurance Related
1 
 
 
Foreign Subsidiary Pension Benefit Plans [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Number of defined benefit plans
1 
 
 
Defined Benefit Pension, Fair Value of Plan Assets
$ 28 
$ 14 
 
Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Oct. 3, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
Unrealized net hedging gain (loss)
$ (2)
$ (1)
Unrealized net gain (loss) on investments
1 
1 
Currency translation adjustment
(59)
(63)
Postretirement benefits reserve adjustments
15 
(27)
Total accumulated other comprehensive loss
$ (45)
$ (90)
Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Other Comprehensive Income Loss [Line Items]
 
 
 
Other comprehensive income (loss), Before Tax
$ 69 
$ 64 
$ (47)
Other comprehensive income (loss), Income Tax
(24)
(7)
8 
Total Other Comprehensive Income (Loss), Net of Taxes
45 
57 
(39)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Other Comprehensive Income (Loss), before Reclassifications, before Tax
(1)
(4)
(8)
Other Comprehensive Income (Loss), before Reclassifications, Tax
0 
2 
3 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
(1)
(2)
(5)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] |
Cost of Sales [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax
(1)
7 
10 
Reclassification from AOCI, Current Period, Tax
1 
(3)
(4)
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
4 
6 
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax
0 
0 
0 
Reclassification from AOCI, Current Period, Tax
0 
0 
0 
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
0 
0 
Investments [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Other Comprehensive Income (Loss), before Reclassifications, before Tax
(1)
21 
(2)
Other Comprehensive Income (Loss), before Reclassifications, Tax
1 
(9)
0 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
0 
12 
(2)
Investments [Member] |
Other Nonoperating Income (Expense) [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax
0 
(21)
8 
Reclassification from AOCI, Current Period, Tax
0 
8 
(2)
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 
(13)
6 
Currency Translation [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Other Comprehensive Income (Loss), before Reclassifications, before Tax
5 
(86)
(32)
Other Comprehensive Income (Loss), before Reclassifications, Tax
(1)
15 
2 
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax
4 
(71)
(30)
Currency Translation [Member] |
Cost of Sales [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax
0 1
115 1
0 1
Reclassification from AOCI, Current Period, Tax
0 1
(8)1
0 1
Reclassification from Accumulated Other Comprehensive Income, Net of Tax
0 1
107 1
0 1
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
 
Other Comprehensive Income Loss [Line Items]
 
 
 
Other comprehensive income (loss), Before Tax
67 
32 
(23)
Other comprehensive income (loss), Income Tax
(25)
(12)
9 
Total Other Comprehensive Income (Loss), Net of Taxes
$ 42 
$ 20 
$ (14)
Segment Reporting (Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 1, 2016
Jul. 2, 2016
Apr. 2, 2016
Jan. 2, 2016
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 9,156 
$ 9,403 
$ 9,170 
$ 9,152 
$ 10,506 
$ 10,071 
$ 9,979 
$ 10,817 
$ 36,881 
$ 41,373 
$ 37,580 
Operating Income (Loss)
586 
767 
704 
776 
550 
563 
547 
509 
2,833 
2,169 
1,430 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
235 
248 
178 
Income from Continuing Operations before Income Taxes
 
 
 
 
 
 
 
 
2,598 
1,921 
1,252 
Depreciation and Amortization
 
 
 
 
 
 
 
 
697 
701 
520 
Total Assets
22,373 
 
 
 
22,969 
 
 
 
22,373 
22,969 
23,906 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
695 
854 
632 
Operating Segments [Member] |
Chicken [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
10,927 
11,390 
11,116 
Operating Income (Loss)
 
 
 
 
 
 
 
 
1,305 
1,366 
883 
Depreciation and Amortization
 
 
 
 
 
 
 
 
274 
272 
253 
Total Assets
5,836 
 
 
 
5,731 
 
 
 
5,836 
5,731 
4,807 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
281 
405 
307 
Operating Segments [Member] |
Beef [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
14,513 
17,236 
16,177 
Operating Income (Loss)
 
 
 
 
 
 
 
 
347 
(66)
347 
Depreciation and Amortization
 
 
 
 
 
 
 
 
94 
97 
91 
Total Assets
2,764 
 
 
 
3,009 
 
 
 
2,764 
3,009 
3,103 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
99 
113 
115 
Operating Segments [Member] |
Pork [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
4,909 
5,262 
6,304 
Operating Income (Loss)
 
 
 
 
 
 
 
 
528 
380 
455 
Depreciation and Amortization
 
 
 
 
 
 
 
 
33 
31 
33 
Total Assets
1,039 
 
 
 
927 
 
 
 
1,039 
927 
965 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
68 
50 
36 
Operating Segments [Member] |
Prepared Foods [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
7,346 
7,822 
3,927 
Operating Income (Loss)
 
 
 
 
 
 
 
 
734 
588 
(60)
Depreciation and Amortization
 
 
 
 
 
 
 
 
286 
280 
95 
Total Assets
11,814 
 
 
 
12,006 
 
 
 
11,814 
12,006 
8,608 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
178 
167 
77 
Other [Member] |
Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
380 
879 
1,381 
Operating Income (Loss)
 
 
 
 
 
 
 
 
(81)
(99)
(195)
Depreciation and Amortization
 
 
 
 
 
 
 
 
10 
21 
48 
Total Assets
920 
 
 
 
1,296 
 
 
 
920 
1,296 
6,423 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
69 
119 
97 
Intersegment Elimination [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
(1,194)
(1,216)
(1,325)
Intersegment Elimination [Member] |
Chicken [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
27 
18 
7 
Intersegment Elimination [Member] |
Beef [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
327 
351 
307 
Intersegment Elimination [Member] |
Pork [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
$ 840 
$ 847 
$ 1,000 
Segment Reporting (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended
Oct. 1, 2016
Jul. 2, 2016
Apr. 2, 2016
Jan. 2, 2016
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Oct. 1, 2016
Segments
Oct. 3, 2015
Sep. 27, 2014
Oct. 1, 2016
UNITED STATES
Oct. 3, 2015
UNITED STATES
Oct. 1, 2016
UNITED STATES
Long-Lived Assets Excluding Goodwill and Intangibles [Member]
Oct. 3, 2015
UNITED STATES
Long-Lived Assets Excluding Goodwill and Intangibles [Member]
Oct. 1, 2016
Other than the United States [Member]
Oct. 3, 2015
Other than the United States [Member]
Oct. 1, 2016
Other than the United States [Member]
Long-Lived Assets Excluding Goodwill and Intangibles [Member]
Oct. 3, 2015
Other than the United States [Member]
Long-Lived Assets Excluding Goodwill and Intangibles [Member]
Oct. 1, 2016
Customer Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Wal-Mart Stores, Inc. [Member]
Oct. 3, 2015
Customer Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Wal-Mart Stores, Inc. [Member]
Sep. 27, 2014
Customer Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Wal-Mart Stores, Inc. [Member]
Oct. 1, 2016
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
UNITED STATES
Oct. 3, 2015
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
UNITED STATES
Sep. 27, 2014
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
UNITED STATES
Oct. 1, 2016
Export sales [Member]
UNITED STATES
Oct. 3, 2015
Export sales [Member]
UNITED STATES
Sep. 27, 2014
Export sales [Member]
UNITED STATES
Oct. 1, 2016
Chicken [Member]
Oct. 3, 2015
Chicken [Member]
Sep. 27, 2014
Chicken [Member]
Oct. 1, 2016
Beef [Member]
Oct. 3, 2015
Beef [Member]
Sep. 27, 2014
Beef [Member]
Oct. 1, 2016
Pork [Member]
Oct. 3, 2015
Pork [Member]
Sep. 27, 2014
Pork [Member]
Oct. 1, 2016
Prepared Foods [Member]
Oct. 3, 2015
Prepared Foods [Member]
Sep. 27, 2014
Prepared Foods [Member]
Oct. 1, 2016
Intersegment Sales [Member]
Oct. 3, 2015
Intersegment Sales [Member]
Sep. 27, 2014
Intersegment Sales [Member]
Oct. 1, 2016
Intersegment Sales [Member]
Chicken [Member]
Oct. 3, 2015
Intersegment Sales [Member]
Chicken [Member]
Sep. 27, 2014
Intersegment Sales [Member]
Chicken [Member]
Oct. 1, 2016
Intersegment Sales [Member]
Beef [Member]
Oct. 3, 2015
Intersegment Sales [Member]
Beef [Member]
Sep. 27, 2014
Intersegment Sales [Member]
Beef [Member]
Oct. 1, 2016
Intersegment Sales [Member]
Pork [Member]
Oct. 3, 2015
Intersegment Sales [Member]
Pork [Member]
Sep. 27, 2014
Intersegment Sales [Member]
Pork [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Jun. 27, 2015
Hillshire Brands Company [Member]
Mar. 28, 2015
Hillshire Brands Company [Member]
Dec. 27, 2014
Hillshire Brands Company [Member]
Oct. 1, 2016
Hillshire Brands Company [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Chicken [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Beef [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Pork [Member]
Aug. 28, 2014
Hillshire Brands Company [Member]
Prepared Foods [Member]
Oct. 1, 2016
Maximum [Member]
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Other than the United States [Member]
Oct. 3, 2015
Maximum [Member]
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Other than the United States [Member]
Sep. 27, 2014
Maximum [Member]
Geographic Concentration Risk [Member]
Sales Revenue, Goods, Net [Member]
Other than the United States [Member]
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of segments
 
 
 
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Acquisition Related Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 8 
$ 16 
$ 14 
$ 19 
$ 37 
$ 47 
$ 59 
 
 
 
 
 
 
 
Goodwill
6,669 
 
 
 
6,667 
 
 
 
6,669 
6,667 
6,706 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,565 
1,563 
907 
676 
676 
563 
423 
423 
317 
4,005 
4,005 
92 
 
 
 
 
 
 
 
 
 
 
 
 
4,800 
 
 
 
 
4,800 
 
658 
113 
106 
3,913 
 
 
 
Sales
9,156 
9,403 
9,170 
9,152 
10,506 
10,071 
9,979 
10,817 
36,881 
41,373 
37,580 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,500 
4,100 
4,700 
 
 
 
 
 
 
 
 
 
 
 
 
(1,194)
(1,216)
(1,325)
27 
18 
7 
327 
351 
307 
840 
847 
1,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Concentration, Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17.50% 
16.80% 
14.60% 
98.00% 
97.00% 
96.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.00% 
10.00% 
10.00% 
Long-lived assets
 
 
 
 
 
 
 
 
 
 
 
$ 17,300 
$ 17,400 
$ 5,600 
$ 5,600 
$ 204 
$ 191 
$ 180 
$ 165 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental Cash Flow Information (Cash Payments For Interest And Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Supplemental Cash Flow Information [Abstract]
 
 
 
Interest, net of amounts capitalized
$ 242 
$ 308 
$ 118 
Income taxes, net of refunds
$ 686 
$ 437 
$ 590 
Commitments (Minimum Lease Commitments Under Non-Cancelable Leases) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Commitments and Contingencies Disclosure [Abstract]
 
2017
$ 118 
2018
92 
2019
66 
2020
43 
2021
30 
2022 and beyond
78 
Total
$ 427 
Commitments (Future Purchase Commitments) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2016
Commitments and Contingencies Disclosure [Abstract]
 
2017
$ 1,817 
2018
373 
2019
166 
2020
112 
2021
95 
2022 and beyond
106 
Total
$ 2,669 
Commitments (Narrative) (Details) (USD $)
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Operating Leases, Rent Expense
$ 172,000,000 
$ 165,000,000 
$ 161,000,000 
Lease, Maximum Initial Term
7 years 
 
 
Guarantor Obligations [Line Items]
 
 
 
Potential maximum obligation under cash flow assistance program
380,000,000 
 
 
Total receivables under cash flow assistance program
2,000,000 
0 
 
Estimated uncollectible receivables under cash flow assistance program
0 
0 
 
Guarantee of Indebtedness of Others [Member]
 
 
 
Guarantor Obligations [Line Items]
 
 
 
Guarantor Obligations, Maximum Exposure, Period
10 years 
 
 
Maximum potential amount
35,000,000 
 
 
Residual Value Guarantees [Member]
 
 
 
Guarantor Obligations [Line Items]
 
 
 
Maximum potential amount
91,000,000 
 
 
Guarantor Obligations, Maximum Exposure, Remaining Lease Period
11 years 
 
 
Amount recoverable through various recourse provisions
83,000,000 
 
 
Industrial Revenue Bonds [Member]
 
 
 
Guarantor Obligations [Line Items]
 
 
 
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset
$ 502,000,000 
 
 
Contingencies (Narrative) (Details)
0 Months Ended 3 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended
Oct. 1, 2016
Claims
Sep. 22, 2014
Bouaphakeo Case [Member]
USD ($)
Aug. 25, 2014
Bouaphakeo Case [Member]
USD ($)
Mar. 25, 2016
Dozier Southerland Case [Member]
USD ($)
Jul. 2, 2016
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
USD ($)
Plantiffs
Jul. 2, 2016
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
PHP (?)
Sep. 30, 2006
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
USD ($)
Sep. 30, 2006
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]
PHP (?)
Sep. 2, 2016
Maplevale Direct Purchaser [Member]
Claims
Sep. 2, 2016
Maplevale Indirect Purchaser [Member]
Claims
Sep. 2, 2016
Maplevale [Member]
Claims
Jun. 23, 2014
Maximum [Member]
USD ($)
Jun. 23, 2014
Maximum [Member]
PHP (?)
Oct. 28, 2016
Subsequent Event [Member]
Maplevale [Member]
Claims
Oct. 12, 2016
Subsequent Event [Member]
Scenario, Forecast [Member]
Awad Case [Member] [Member]
USD ($)
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of cases filed
6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss contingency, damages awarded
 
 
$ 5,784,758 
 
 
 
$ 71,000,000 
? 3,453,664,710 
 
 
 
 
 
 
 
Loss contingency, damages sought
 
2,692,145 
 
425,000 
 
 
 
 
 
 
 
 
 
 
725,000 
Loss Contingency, Estimate of Possible Loss
 
 
 
 
 
 
 
 
 
 
 
7,100,000 
342,287,800 
 
 
Estimated Percentage of Settling Complainants
 
 
 
 
18.00% 
18.00% 
 
 
 
 
 
 
 
 
 
Loss Contingency, Number of Plaintiffs
 
 
 
 
5,984 
5,984 
 
 
 
 
 
 
 
 
 
Loss Contingency, Estimate of Possible Loss Per Complainant
 
 
 
 
$ 1,402 
? 68,000 
 
 
 
 
 
 
 
 
 
Loss Contingency, New Claims Filed, Number
 
 
 
 
 
 
 
 
1 
1 
2 
 
 
2 
 
Quarterly Financial Data (Unaudited) (Schedule Of Quarterly Financial Information) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 1, 2016
Jul. 2, 2016
Apr. 2, 2016
Jan. 2, 2016
Oct. 3, 2015
Jun. 27, 2015
Mar. 28, 2015
Dec. 27, 2014
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Sales
$ 9,156 
$ 9,403 
$ 9,170 
$ 9,152 
$ 10,506 
$ 10,071 
$ 9,979 
$ 10,817 
$ 36,881 
$ 41,373 
$ 37,580 
Gross profit
1,089 
1,224 
1,183 
1,201 
986 
986 
989 
956 
4,697 
3,917 
2,685 
Operating Income
586 
767 
704 
776 
550 
563 
547 
509 
2,833 
2,169 
1,430 
Net Income
392 
485 
434 
461 
259 
344 
311 
310 
1,772 
1,224 
856 
Net Income Attributable to Tyson
$ 391 
$ 484 
$ 432 
$ 461 
$ 258 
$ 343 
$ 310 
$ 309 
$ 1,768 
$ 1,220 
$ 864 
Diluted (USD per share)
$ 1.03 
$ 1.25 
$ 1.10 
$ 1.15 
$ 0.63 
$ 0.83 
$ 0.75 
$ 0.74 
$ 4.53 
$ 2.95 
$ 2.37 
Class A [Member]
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 1.06 
$ 1.29 
$ 1.14 
$ 1.18 
$ 0.65 
$ 0.86 
$ 0.78 
$ 0.77 
$ 4.67 
$ 3.06 
$ 2.48 
Class B [Member]
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 0.96 
$ 1.17 
$ 1.02 
$ 1.09 
$ 0.59 
$ 0.78 
$ 0.71 
$ 0.71 
$ 4.24 
$ 2.79 
$ 2.26 
Quarterly Financial Data (Unaudited) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Oct. 1, 2016
Jul. 2, 2016
Apr. 2, 2016
Oct. 3, 2015
Jun. 27, 2015
Dec. 27, 2014
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Oct. 3, 2015
Cost of Sales [Member]
Chicken Production Operations in Mexico [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Jun. 27, 2015
Hillshire Brands Company [Member]
Mar. 28, 2015
Hillshire Brands Company [Member]
Dec. 27, 2014
Hillshire Brands Company [Member]
Oct. 1, 2016
Hillshire Brands Company [Member]
Oct. 3, 2015
Hillshire Brands Company [Member]
Sep. 27, 2014
Hillshire Brands Company [Member]
Oct. 3, 2015
Chicken Production Operations in China [Member]
Cost of Sales [Member]
Oct. 3, 2015
Operating Segments [Member]
Prepared Foods [Member]
Facility Closing [Member]
Sep. 27, 2014
Operating Segments [Member]
Prepared Foods [Member]
Facility Closing [Member]
Oct. 3, 2015
Operating Segments [Member]
Beef [Member]
Facility Closing [Member]
Oct. 3, 2015
Operating Segments [Member]
Cost of Sales [Member]
Prepared Foods [Member]
Facility Closing [Member]
Quarterly Financial Data [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Acquisition Related Costs
 
 
 
 
 
 
 
 
 
 
$ 8 
$ 16 
$ 14 
$ 19 
$ 37 
$ 47 
$ 59 
 
 
 
 
 
Pre-Tax Loss Related to Legacy Hillshire Brands Plant Fire
 
 
 
 
 
 
 
 
 
 
 
 
 
36 
 
 
 
 
 
 
 
 
Tax Expense Adjustment- related to tax contingencies
26 
15 
12 
 
 
26 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-Tax Gain due to Insurance Proceeds (Net of Costs) Related to a Legacy Hillshire Brands Plant Fire
 
 
 
 
 
 
 
 
 
 
25 
11 
8 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Sale of Equity Investments
 
 
 
 
21 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Impairment Charges
 
 
 
 
 
 
45 
285 
107 
 
 
 
 
 
 
 
 
169 
59 
52 
12 
49 
Gain on disposition of Business
 
 
 
 
 
 
0 
177 
0 
161 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Pretax Impact of Additional Week
 
 
 
$ 39 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Valuation And Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2016
Oct. 3, 2015
Sep. 27, 2014
Allowance for Doubtful Accounts [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
$ 27 
$ 34 
$ 46 
Charged to Costs and Expenses
10 
1 
5 
Charged to Other Accounts
0 
0 
0 
(Deductions)
(4)
(8)
(17)
Balance at End of Period
33 
27 
34 
Inventory Lower of Cost or Market Allowance [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
58 
7 
16 
Charged to Costs and Expenses
70 
99 
14 
Charged to Other Accounts
0 
0 
0 
(Deductions)
(89)
(48)
(23)
Balance at End of Period
39 
58 
7 
Valuation Allowance on Deferred Tax Assets [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
68 
51 
77 
Charged to Costs and Expenses
10 
21 
26 
Charged to Other Accounts
0 
0 
13 
(Deductions)
(6)
(4)
(65)
Balance at End of Period
$ 72 
$ 68 
$ 51