TYSON FOODS INC, 10-K filed on 11/13/2018
Annual Report
v3.10.0.1
Document and Entity Information - USD ($)
12 Months Ended
Sep. 29, 2018
Oct. 27, 2018
Mar. 31, 2018
Entity Registrant Name TYSON FOODS INC    
Entity Central Index Key 0000100493    
Current Fiscal Year End Date --09-29    
Entity Filer Category Large Accelerated Filer    
Document Type 10-K    
Document Period End Date Sep. 29, 2018    
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Emerging Growth Company false    
Entity Small Business false    
Entity Shell Company false    
Class A [Member]      
Entity Common Stock, Shares Outstanding   295,101,105  
Entity Public Float     $ 21,333,435,984
Class B [Member]      
Entity Common Stock, Shares Outstanding   70,010,355  
Entity Public Float     $ 757,882
v3.10.0.1
Consolidated Statements Of Income - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Sales $ 40,052 $ 38,260 $ 36,881
Cost of Sales 34,926 33,177 32,184
Gross Profit 5,126 5,083 4,697
Operating Expenses:      
Selling, General and Administrative 2,071 2,152 1,864
Operating Income 3,055 2,931 2,833
Other (Income) Expense:      
Interest income (7) (7) (6)
Interest expense 350 279 249
Other, net (33) 31 (8)
Total Other (Income) Expense 310 303 235
Income before Income Taxes 2,745 2,628 2,598
Income Tax Expense (Benefit) (282) 850 826
Net Income 3,027 1,778 1,772
Less: Net income attributable to noncontrolling interest 3 4 4
Net Income Attributable to Tyson $ 3,024 $ 1,774 $ 1,768
Weighted Average Shares Outstanding:      
Diluted, Shares 369 370 390
Net Income Per Share Attributable to Tyson:      
Diluted (USD per share) $ 8.19 $ 4.79 $ 4.53
Class A [Member]      
Weighted Average Shares Outstanding:      
Basic, Shares 295 296 315
Net Income Per Share Attributable to Tyson:      
Basic (USD per share) $ 8.44 $ 4.94 $ 4.67
Class B [Member]      
Weighted Average Shares Outstanding:      
Basic, Shares 70 70 70
Net Income Per Share Attributable to Tyson:      
Basic (USD per share) $ 7.59 $ 4.45 $ 4.24
v3.10.0.1
Consolidated Statements of Comprehensive Income Statement - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Statement of Comprehensive Income [Abstract]      
Net Income $ 3,027 $ 1,778 $ 1,772
Other Comprehensive Income (Loss), Net of Taxes:      
Derivatives accounted for as cash flow hedges (7) 0 (1)
Investments (1) (1) 0
Currency translation (29) 6 4
Postretirement benefits (7) 56 42
Total Other Comprehensive Income (Loss), Net of Taxes (44) 61 45
Comprehensive Income 2,983 1,839 1,817
Less: Comprehensive Income Attributable to Noncontrolling Interests 3 4 4
Comprehensive Income Attributable to Tyson $ 2,980 $ 1,835 $ 1,813
v3.10.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Assets    
Cash and cash equivalents $ 270 $ 318
Accounts receivable, net 1,723 1,675
Inventories 3,513 3,239
Other current assets 182 219
Assets held for sale 0 807
Total Current Assets 5,688 6,258
Net Property, Plant and Equipment 6,169 5,568
Goodwill 9,739 9,324
Intangible Assets, net 6,759 6,243
Other Assets 754 673
Total Assets 29,109 28,066
Liabilities and Shareholders’ Equity    
Current debt 1,911 906
Accounts payable 1,694 1,698
Other current liabilities 1,426 1,424
Liabilities held for sale 0 4
Total Current Liabilities 5,031 4,032
Long-Term Debt 7,962 9,297
Deferred Income Taxes 2,107 2,979
Other Liabilities 1,198 1,199
Commitments and Contingencies (Note 20)
Shareholders' Equity:    
Capital in excess of par value 4,387 4,378
Retained earnings 12,329 9,776
Accumulated other comprehensive gain (loss) (15) [1] 16
Treasury stock, at cost - 82 million shares at September 29, 2018 and 80 million shares in September 30, 2017 (3,943) (3,674)
Total Tyson Shareholders’ Equity 12,803 10,541
Noncontrolling Interests 8 18
Total Shareholders’ Equity 12,811 10,559
Total Liabilities and Shareholders’ Equity 29,109 28,066
Class A [Member]    
Shareholders' Equity:    
Common stock ($0.10 par value): 38 38
Total Tyson Shareholders’ Equity 38 38
Convertible Class B [Member]    
Shareholders' Equity:    
Common stock ($0.10 par value): 7 7
Total Tyson Shareholders’ Equity $ 7 $ 7
[1] (1) Includes reclass from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act, following adoption of the applicable new accounting standard. Refer to Part II, Item 8, Notes to Consolidated Financial Statements, Note 2: Changes in Accounting Principles.
v3.10.0.1
Consolidated Balance Sheets (Parentheticals) - $ / shares
shares in Millions
Sep. 29, 2018
Sep. 30, 2017
Treasury Stock, shares 82 80
Class A [Member]    
Common stock, par value $ 0.1 $ 0.10
Common stock, shares authorized 900 900
Common stock, shares issued 378 378
Class B [Member]    
Common stock, par value $ 0.1 $ 0.10
Common stock, shares authorized 900 900
Common stock, shares issued 70 70
v3.10.0.1
Consolidated Statements Of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Capital In Excess Of Par Value [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Member]
Treasury Stock [Member]
Shareholders' Equity Attributable To Tyson [Member]
Equity Attributable To Noncontrolling Interests [Member]
Class A [Member]
Class B [Member]
Balance at beginning of year, Common Stock shares at Oct. 03, 2015               346.0 70.0
Balance at beginning of year, Shareholders' Equity Attributable to Tyson at Oct. 03, 2015   $ 4,307 $ 6,813 $ (90) $ (1,381)     $ 35 $ 7
Balance at beginning of year, Treasury Stock shares at Oct. 03, 2015         47.0        
Balance at beginning of year, Shareholders' Equity Attributable to Noncontrolling Interest at Oct. 03, 2015             $ 15    
Increase (Decrease) in Shareholders' Equity [Roll Forward]                  
Issuance of Class A common stock, shares               18.0  
Issuance of Class A common stock               $ 1  
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)        
Stock-based compensation, shares         (6.0)        
Net income attributable to noncontrolling interest (4)           4    
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, Common Stock shares at Oct. 01, 2016               364.0 70.0
Balance at end of year, Shareholders' Equity Attributable to Tyson at Oct. 01, 2016   4,355 8,348 (45) $ (3,093) $ 9,608   $ 36 $ 7
Balance at end of year, Treasury Stock shares at Oct. 01, 2016         73.0        
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Oct. 01, 2016             16    
Balance at end of year, Total Shareholders' Equity at Oct. 01, 2016 9,624                
Increase (Decrease) in Shareholders' Equity [Roll Forward]                  
Cumulative Effect of New Accounting Principle in Period of Adoption [1]     0 0          
Issuance of Class A common stock, shares               14.0  
Issuance of Class A common stock               $ 2  
Stock-based compensation   23     $ 279        
Net income attributable to Tyson 1,774   1,774            
Dividends     (346)         $ (285) $ (61)
Other Comprehensive Income (Loss) 61     61          
Purchase of Class A common stock, shares         14.0     13.5  
Purchase of Class A common stock         $ (860)        
Stock-based compensation, shares         (7.0)        
Net income attributable to noncontrolling interest (4)           4    
Distributions to noncontrolling interest             (2)    
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest             0    
Balance at end of year, Common Stock shares at Sep. 30, 2017               378.0 70.0
Balance at end of year, Shareholders' Equity Attributable to Tyson at Sep. 30, 2017 $ 10,541 4,378 9,776 16 $ (3,674) 10,541   $ 38 $ 7
Balance at end of year, Treasury Stock shares at Sep. 30, 2017 80.0       80.0        
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 30, 2017 $ 18           18    
Balance at end of year, Total Shareholders' Equity at Sep. 30, 2017 10,559                
Increase (Decrease) in Shareholders' Equity [Roll Forward]                  
Cumulative Effect of New Accounting Principle in Period of Adoption [1]     0 0          
Issuance of Class A common stock, shares               0.0  
Issuance of Class A common stock               $ 0  
Stock-based compensation   9     $ 158        
Net income attributable to Tyson 3,024   3,024            
Dividends     (458)         $ (378) $ (80)
Other Comprehensive Income (Loss) (44)     (44)          
Purchase of Class A common stock, shares         6.0     5.9  
Purchase of Class A common stock         $ (427)        
Stock-based compensation, shares         (4.0)        
Net income attributable to noncontrolling interest (3)           3    
Distributions to noncontrolling interest             (3)    
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest             (10)    
Balance at end of year, Common Stock shares at Sep. 29, 2018               378.0 70.0
Balance at end of year, Shareholders' Equity Attributable to Tyson at Sep. 29, 2018 $ 12,803 $ 4,387 12,329 (15) $ (3,943) $ 12,803   $ 38 $ 7
Balance at end of year, Treasury Stock shares at Sep. 29, 2018 82.0       82.0        
Balance at end of year, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 29, 2018 $ 8           $ 8    
Balance at end of year, Total Shareholders' Equity at Sep. 29, 2018 $ 12,811                
Increase (Decrease) in Shareholders' Equity [Roll Forward]                  
Cumulative Effect of New Accounting Principle in Period of Adoption [1]     $ (13) $ (13)          
[1] (1) Reclass from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act, following adoption of the applicable new accounting standard. Refer to Part II, Item 8, Notes to Consolidated Financial Statements, Note 2: Changes in Accounting Principles.
v3.10.0.1
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Cash Flows From Operating Activities:      
Net Income $ 3,027 $ 1,778 $ 1,772
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation 723 642 617
Amortization 220 119 88
Deferred income taxes (865) (39) 84
Gain on disposition of business (42) 0 0
Impairment of assets 175 214 45
Share-based compensation expense 69 92 81
Other, net (58) (57) (34)
(Increase) decrease in accounts receivable (2) (55) 73
(Increase) decrease in inventories (207) (246) 148
Increase (decrease) in accounts payable (44) 61 (130)
Increase (decrease) in income taxes payable/receivable 111 55 (19)
Increase (decrease) in interest payable (3) 16 (1)
Net changes in other operating assets and liabilities (141) 19 (8)
Cash Provided by Operating Activities 2,963 2,599 2,716
Cash Flows from Investing Activities:      
Additions to property, plant and equipment (1,200) (1,069) (695)
Purchases of marketable securities (42) (79) (46)
Proceeds from sale of marketable securities 37 61 37
Acquisitions, net of cash acquired (1,474) (3,081) 0
Proceeds from sale of businesses 797 0 0
Other, net (24) 4 20
Cash Used for Investing Activities (1,906) (4,164) (684)
Cash Flows from Financing Activities:      
Payments on debt (1,307) (3,159) (714)
Proceeds from issuance of long-term debt 1,148 5,444 1
Borrowings on revolving credit facility 1,755 1,810 1,065
Payments on revolving credit facility (1,755) (2,110) (765)
Proceeds from Issuance of commercial paper 21,024 8,138 0
Repayments of commercial paper (21,197) (7,360) 0
Payment of AdvancePierre TRA liability 0 (223) 0
Purchases of Tyson Class A common stock (427) (860) (1,944)
Dividends (431) (319) (216)
Stock options exercised 102 154 128
Other, net (14) 15 68
Cash (Used for) Provided by Financing Activities (1,102) 1,530 (2,377)
Effect of Exchange Rate Change on Cash (3) 4 6
Decrease in Cash and Cash Equivalents (48) (31) (339)
Cash and Cash Equivalents at Beginning of Year 318 349 688
Cash and Cash Equivalents at End of Year $ 270 $ 318 $ 349
v3.10.0.1
Business And Summary Of Significant Accounting Policies
12 Months Ended
Sep. 29, 2018
Accounting Policies [Abstract]  
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”), is one of the world's largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the Company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. We innovate continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do.
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 2018, fiscal 2017, and fiscal 2016.
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 September 29, 2018, and September 30, 2017, checks outstanding in excess of related book cash balances totaled approximately $220 million and $237 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 September 29, 2018, and September 30, 2017, our allowance for uncollectible accounts was $19 million and $34 million, respectively. We generally do not have collateral for our receivables, but we do periodically evaluate the credit worthiness of our customers.
Inventories: Processed products, livestock and supplies and other are valued at the lower of cost or net realizable value. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
In fiscal 2018 and fiscal 2017, 63% of the cost of inventories was determined by the first-in, first-out ("FIFO") method. 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 September 29, 2018, and September 30, 2017:
 
 
 
in millions

 
2018

 
2017

Processed products
$
1,981

 
$
1,947

Livestock
1,006

 
874

Supplies and other
526

 
418

Total inventory
$
3,513

 
$
3,239


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 generally 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 amortized using the straight-line method over 20 years or less. Customer relationships and supply arrangements are generally amortized over seven to 20 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 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 carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of goodwill.
We estimate the fair value of our reporting units using a combination of various valuation techniques, including an income approach (discounted cash flow analysis) and market approaches (earnings before interest, taxes, depreciation and amortization or "EBITDA" multiples of comparable publicly-traded companies and precedent transactions). Our primary technique is discounted cash flow analysis. These approaches use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy and requires us to make various judgmental assumptions about sales, operating margins, growth rates and discount rates which consider our budgets, business plans and economic projections, and are believed to reflect market participant views which would exist in an exit transaction. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period. 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, market EBITDA comparables 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, it could result in additional material impairments of our goodwill.
The discount rate used in our annual goodwill impairment test increased to 6.9% in fiscal 2018 from 6.7% in fiscal 2017.
During fiscal 2018, 2017 and 2016, the fair value of each of our material reporting units' exceeded its carrying value.
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. During fiscal 2018, 2017 and 2016, the fair value of each of our indefinite life intangible assets exceeded its carrying value. The discount rate used in our indefinite life intangible test increased to 8.2% in fiscal 2018 from 7.9% in fiscal 2017.
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 September 29, 2018, and September 30, 2017, include:
 
in millions
 
 
2018

 
2017

Accrued salaries, wages and benefits
$
549

 
$
673

Other
877

 
751

Total other current liabilities
$
1,426

 
$
1,424


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. Changes in market value of derivatives used in our risk management activities surrounding inventories on hand or anticipated purchases of inventories are recorded in cost of sales. Changes in market value of derivatives used in our risk management activities related to interest rates are recorded in interest expense. 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 costs 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 $243 million, $238 million and $238 million in fiscal 2018, 2017 and 2016, respectively.
Research and Development: Research and development costs are expensed as incurred. Research and development costs totaled $114 million, $113 million and $96 million in fiscal 2018, 2017 and 2016, 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 2018, the Financial Accounting Standards Board ("FASB") issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2020. Early adoption is permitted and should be applied prospectively to all qualified implementation costs incurred after the adoption date. We plan to adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In August 2017, the FASB issued guidance that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components excluded from the assessment. Some of the modifications include the ineffectiveness of derivative gain/loss in highly effective cash flow hedge to be recorded in Other Comprehensive Income, the change in fair value of derivative to be recorded in the same income statement line as the hedged item, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging on financial statement lines for components excluded from the assessment. The amendment also simplifies the application of hedge accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In May 2017, the FASB issued guidance that clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the prospective transition method should be applied to awards modified on or after the adoption date. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In March 2017, the FASB issued guidance that shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In March 2017, the FASB issued guidance that will change the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost will be included within the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost will be presented separately outside of operating income. Additionally, only the service cost component will be eligible for capitalization when applicable. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the retrospective transition method should be applied for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement, and the prospective transition method should be applied, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In November 2016, the FASB issued guidance which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the retrospective transition method should be applied. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In October 2016, the FASB issued guidance which requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the modified retrospective transition method should be applied. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In August 2016, the FASB issued guidance that aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the retrospective transition method should be applied. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In June 2016, the FASB issued guidance that provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. Early adoption is permitted for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. The application of the guidance requires various transition methods depending on the specific amendment. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In February 2016, the FASB issued guidance that created new accounting and reporting guidelines for leasing arrangements. The guidance requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The guidance also requires qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective method should be applied. While we are still evaluating the impact this guidance will have on our consolidated financial statements and related disclosures, we have completed our initial scoping reviews and have made progress in our assessment phase as we continue to identify our leasing processes that will be impacted by the new standard. We have also made progress in developing the policy elections we will make upon adoption and we are implementing software to meet the reporting requirements of this standard. We expect our financial statement disclosures will be expanded to present additional details of our leasing arrangements. Although we expect the impacts to be material, at this time, we are unable to reasonably estimate the expected increase in assets and liabilities on our consolidated balance sheets or the impacts to our consolidated financial statements upon adoption.
In January 2016, the FASB issued guidance that requires most equity investments be measured at fair value, with subsequent other changes in fair value recognized in net income. The guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements on the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. It should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, unless, equity securities do not have readily determinable fair values, in which case, the amendments should be applied prospectively. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In May 2014, the FASB issued guidance that changes the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. We will adopt this guidance using the modified retrospective transition method beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements other than additional disclosure requirements.
v3.10.0.1
Changes in Accounting Principles
12 Months Ended
Sep. 29, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Changes In Accounting Principles
CHANGES IN ACCOUNTING PRINCIPLES
In March 2018, the FASB issued guidance that clarifies application of Topic 740 in regards to the "Tax Cuts and Jobs Act" (the "Tax Act") enacted December 22, 2017. The guidance requires provisional amounts to be reported within the reporting period in which the Tax Act was enacted if a reasonable estimate can be determined or within the measurement period not to exceed one year from the enactment date by which accounting is required to be completed in accordance with Topic 740. Any provisional amounts or adjustments to provisional amounts reported in the measurement period should be included in income from continuing operations as an adjustment to tax expense or benefit in the reporting period the amounts are determined. The guidance was effective immediately and we adopted this guidance in the first quarter of fiscal 2018. The impact of adoption had a material impact to our financial statements (see Note 9: Income Taxes).
In February 2018, the FASB issued guidance that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. 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 entities will have the choice to apply either in the period of adoption or retrospectively to each period in which the effect of the change in the federal income tax rate in the Tax Act. We adopted this guidance in the fourth quarter of fiscal 2018 resulting in a reclass increasing Accumulated Other Comprehensive Income and decreasing Retained Earnings by $13 million in our consolidated financial statements.
In March 2016, the FASB issued guidance that 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. We adopted this guidance in the first quarter of fiscal 2018. The guidance requires all income tax effects of share-based payment awards to be recognized in the consolidated statements of income when the awards vest or are settled, which is a change from the previous guidance that required such activity to be recorded in capital in excess of par value within stockholders' equity. We adopted this guidance prospectively which may create volatility in our effective tax rate when adopted depending largely on future events and other factors, which may include our stock price, timing of stock option exercises, and the value realized upon vesting or exercise of shares compared to the grant date fair value of those shares. For the year ended September 29, 2018, the recorded tax benefit was not material. In addition, when calculating potential common shares used to determine diluted earnings per share this guidance requires that assumed proceeds under the treasury stock method be modified to exclude the amount of excess tax benefits that would have been recognized in additional paid-in capital. These changes were applied on a prospective basis which did not have a material impact to diluted earnings per share for the year ended September 29, 2018. Under the new guidance, companies can also make an accounting policy election to either estimate forfeitures each period or to account for forfeitures as they occur. We changed our accounting policy to account for forfeitures as they occur using the modified retrospective transition method which did not have a material impact on our consolidated financial statements. The guidance changes the presentation of excess tax benefits from a financing activity to an operating activity in the consolidated statements of cash flows. This guidance also requires the presentation related to cash paid to a taxing authority when shares are withheld to satisfy the statutory income tax withholding obligation to a financing activity in the consolidated statements of cash flows. We applied these changes prospectively, and thus, prior periods have not been adjusted. The adoption of this standard did not have a material impact on our consolidated statements of cash flows.
In July 2015, the FASB issued guidance that 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. The prospective transition method was applied. We adopted this guidance in the first quarter of fiscal 2018 and it did not have a material impact on our consolidated financial statements.
v3.10.0.1
Acquisitions and Dispositions
12 Months Ended
Sep. 29, 2018
Business Combinations [Abstract]  
Acquisitions and Dispositions
ACQUISITIONS AND DISPOSITIONS
Acquisitions
On August 20, 2018, we acquired the assets of American Proteins, Inc. and AMPRO Products, Inc. ("American Proteins"), a poultry rendering and blending operation for $866 million, subject to net working capital adjustments, as part of our strategic expansion and sustainability initiatives. Its results, subsequent to the acquisition closing, are included in our Chicken segment. The preliminary purchase price allocation included $71 million of net working capital, $155 million of Property, Plant and Equipment, $411 million of Intangible Assets, $242 million of Goodwill, and $13 million of Other liabilities. Intangible Assets primarily included $358 million assigned to supply network which will be amortized over 14 years and $51 million assigned to customer relationships which will be amortized over a weighted average of 12 years. All of the goodwill acquired is amortizable for tax purposes. Certain estimated values for the acquisition, including goodwill, intangible assets, and property, plant and equipment, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed.
On August 17, 2018, the Company announced it had reached a definitive agreement to buy the Keystone Foods business (“Keystone”) from Marfrig Global Foods for $2.16 billion in cash. The acquisition of Keystone, a major supplier to the growing global foodservice industry, is our latest investment in furtherance of our growth strategy and expansion of our value-added protein capabilities. The transaction is expected to close in the first quarter or early second quarter of fiscal 2019 and is subject to customary closing conditions, including regulatory approvals, however, there can be no assurance that the acquisition will close at such time. We expect the majority of Keystone’s domestic results will be included in the Chicken segment and its international results will be in included in Other for segment presentation.
On June 4, 2018, we acquired Tecumseh Poultry, LLC ("Tecumseh"), a vertically integrated value-added protein business for $382 million, net of cash acquired, as part of our strategy to grow in the high quality, branded poultry market. Its results, subsequent to the acquisition closing, are included in our Chicken segment. The preliminary purchase price allocation included $13 million of net working capital, including $1 million of cash acquired, $49 million of Property, Plant and Equipment, $227 million of Intangible Assets and $94 million of Goodwill. Intangible Assets included $193 million assigned to brands and trademarks which will be amortized over 20 years. All of the goodwill acquired is amortizable for tax purposes. Certain estimated values for the acquisition, including goodwill, intangible assets, and property, plant and equipment, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed.
On November 10, 2017, we acquired Original Philly Holdings, Inc. ("Original Philly"), a value-added protein business, for $226 million, net of cash acquired, as part of our strategic expansion initiative. Its results, subsequent to the acquisition closing, are included in our Prepared Foods and Chicken segments. The preliminary purchase price allocation included $21 million of net working capital, including $10 million of cash acquired, $13 million of Property, Plant and Equipment, $90 million of Intangible Assets and $112 million of Goodwill. During the second quarter of fiscal 2018, we recorded measurement period adjustments, which decreased goodwill by $1 million, after obtaining additional information regarding, among other things, asset valuations and liabilities assumed. We completed the allocation of goodwill to our segments in the second quarter of fiscal 2018 using the acquisition method approach. This resulted in $82 million and $29 million of goodwill allocated to our Prepared Foods and Chicken segments, respectively. All of the goodwill acquired is amortizable for tax purposes.
On June 7, 2017, we acquired all of the outstanding common stock of AdvancePierre Foods Holdings, Inc. ("AdvancePierre") as part of our strategy to sustainably feed the world with the fastest growing portfolio of protein-packed brands. The purchase price was equal to $40.25 per share for AdvancePierre's outstanding common stock, or approximately $3.2 billion. We funded the acquisition with existing cash on hand, net proceeds from the issuance of new senior notes and a new term loan facility, as well as borrowings under our commercial paper program. AdvancePierre's results from operations subsequent to the acquisition closing are included in the Prepared Foods and Chicken segments.
The following table summarizes the purchase price allocation and fair values of the assets acquired and liabilities assumed at the acquisition date of AdvancePierre. During the first quarter of fiscal 2018, we recorded measurement period adjustments which decreased goodwill by $2 million, primarily related to updated information related to income taxes.
 
in millions
 
Cash and cash equivalents
 
$
126

Accounts receivable
 
80

Inventories
 
272

Other current assets
 
5

Property, Plant and Equipment
 
302

Goodwill
 
2,980

Intangible Assets
 
1,515

Current debt
 
(1,148
)
Accounts payable
 
(114
)
Other current liabilities
 
(97
)
Tax receivable agreement (TRA) due to former shareholders
 
(223
)
Long-Term Debt
 
(33
)
Deferred Income Taxes
 
(455
)
Other Liabilities
 
(3
)
Net assets acquired
 
$
3,207


The fair value of identifiable intangible assets is as follows:
 
 
 
 
 
 
in millions

Intangible Asset Category
 
Type
 
Life in Years
 
Fair Value
Brands & Trademarks
 
Amortizable
 
Weighted Average of 15 years
 
$
390

Customer Relationships
 
Amortizable
 
Weighted Average of 15 years
 
1,125

Total identifiable intangible assets
 
 
 
 
 
$
1,515


As a result of the acquisition, we recognized a total of $2,980 million of goodwill. The purchase price was assigned to assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition, and any excess was allocated to goodwill, as shown in the table above. Goodwill represents the value we expect to achieve through the implementation of operational synergies and growth opportunities. We completed the allocation of goodwill to our segments in the first quarter of fiscal 2018 using the with-and-without approach of the estimated operating results and synergy impact to fair value of our reporting units. This resulted in $2,412 million and $568 million of goodwill allocated to our Prepared Foods and Chicken segments, respectively. Of the goodwill acquired, $163 million related to previous AdvancePierre acquisitions is expected to be amortizable for tax purposes.
We used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow analysis, relief-from-royalty, and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
The acquisition of AdvancePierre was accounted for using the acquisition method of accounting, and consequently, the results of operations for AdvancePierre are reported in our consolidated financial statements from the date of acquisition.
The following unaudited pro forma information presents the combined results of operations as if the acquisition of AdvancePierre had occurred at the beginning of fiscal 2016. AdvancePierre's pre-acquisition results have been added to our historical results. The pro forma results contained in the table below include adjustments for amortization of acquired intangibles, depreciation expense, interest expense related to the financing and related income taxes. Any potential cost savings or other operational efficiencies that could result from the acquisition are not included in these pro forma results.
The 2016 pro forma results include transaction related expenses incurred by AdvancePierre prior to the acquisition of $84 million, including items such as consultant fees, accelerated stock compensation and other deal costs; transaction related expenses incurred by the Company of $67 million, including fees paid to third parties, financing costs and other deal costs; and $36 million of expense related to the fair value inventory adjustment at the date of acquisition.
These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor is it necessarily an indication of future operating results.
 
 
in millions (unaudited)
 
 
 
2017

 
2016

Pro forma sales
 
$
39,330

 
$
38,406

Pro forma net income attributable to Tyson
 
1,837

 
1,686

Pro forma net income per diluted share attributable to Tyson
 
$
4.97

 
$
4.32


Dispositions
On April 24, 2017, we announced our intent to sell three non-protein businesses as part of our strategic focus on protein brands. These businesses, which were all part of our Prepared Foods segment, included Sara Lee® Frozen Bakery, Kettle and Van’s® and produce items such as frozen desserts, waffles, snack bars, and soups, sauces and sides. The sale also included the Chef Pierre®, Bistro Collection®, Kettle Collection™, and Van’s® brands, a license to use the Sara Lee® brand in various channels, as well as our Tarboro, North Carolina, Fort Worth, Texas, and Traverse City, Michigan, prepared foods facilities.
As of September 30, 2017, we reclassified the assets and liabilities related to these businesses, including allocated goodwill, to assets and liabilities held for sale in our Consolidated Balance Sheets. The Company concluded the businesses were not significant disposal groups and did not represent a strategic shift, and therefore were not classified as discontinued operations for any of the periods presented.
We completed the sale of our Kettle business on December 30, 2017, and received net proceeds of $125 million including a working capital adjustment. As a result of the sale, we recorded a pretax gain of $22 million, which is reflected in Cost of Sales in our Consolidated Statement of Income for our fiscal 2018. We utilized the net proceeds to pay down term loan debt.
We completed the sale of our Sara Lee® Frozen Bakery and Van’s® businesses on July 30, 2018 for $623 million including a working capital adjustment. As a result of the sale, we recorded a pretax gain of $11 million, which is reflected in Cost of Sales in our Consolidated Statement of Income for our fiscal 2018. We utilized the net proceeds to repay commercial paper.
Previously in fiscal 2018 and 2017, we recorded pretax impairment charges for these businesses of $101 million and $45 million, respectively, due to revised estimates of the businesses' fair value based on expected net sales proceeds at the time of the impairments. These charges were recorded in Cost of Sales in our Consolidated Statement of Income, and primarily consisted of goodwill previously classified within assets held for sale.
In the first quarter of fiscal 2018, we made the decision to sell TNT Crust, our pizza crust business, which is also included in our Prepared Foods segment, as part of our strategic focus on protein brands. We completed the sale of this business on September 2, 2018, for $57 million net of adjustments. As a result of the sale, we recorded a pretax gain of $9 million, which is reflected in Cost of Sales in our Consolidated Statement of Income for our fiscal 2018. We utilized the net proceeds to repay commercial paper.
The following table summarizes the net assets and liabilities held for sale as of September 30, 2017:
 
in millions

 
September 30, 2017
Assets held for sale:
 
Accounts receivable, net
$
2

Inventories
109

Net Property, Plant and Equipment
192

Other current assets
1

Goodwill
312

Intangible Assets, net
191

Total assets held for sale
$
807

Liabilities held for sale:
 
Accounts payable
$
1

Other current liabilities
3

Total liabilities held for sale
$
4

v3.10.0.1
Property, Plant And Equipment
12 Months Ended
Sep. 29, 2018
Property, Plant and Equipment, Net [Abstract]  
Property, Plant And Equipment
PROPERTY, PLANT AND EQUIPMENT
The following table reflects major categories of property, plant and equipment and accumulated depreciation at September 29, 2018, and September 30, 2017:
 
in millions
 
 
2018

 
2017

Land
$
154

 
$
138

Building and leasehold improvements
4,115

 
3,878

Machinery and equipment
7,720

 
7,111

Land improvements and other
357

 
323

Buildings and equipment under construction
689

 
492

 
13,035

 
11,942

Less accumulated depreciation
6,866

 
6,374

Net property, plant and equipment
$
6,169

 
$
5,568


Approximately $1,832 million will be required to complete buildings and equipment under construction at September 29, 2018.
v3.10.0.1
Goodwill And Intangible Assets
12 Months Ended
Sep. 29, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill And Intangible Assets
GOODWILL AND INTANGIBLE ASSETS
The following table reflects goodwill activity for fiscal 2018 and 2017:
in millions
 
 
Beef

 
Pork

 
Chicken

 
Prepared
Foods

 
Other(a)

 
Unallocated

 
Consolidated

Balance at October 1, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
1,236

 
$
423

 
$
1,565

 
$
4,005

 
$
57

 
$

 
$
7,286

Accumulated impairment losses
(560
)
 

 

 

 
(57
)
 

 
(617
)
 
$
676

 
$
423

 
$
1,565

 
$
4,005

 
$

 
$

 
$
6,669

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2017 Activity:

 

 

 

 

 

 

Acquisition
$

 
$

 
$

 
$

 
$

 
$
2,982

 
$
2,982

Reclass to assets held for sale

 

 

 
(327
)
 

 

 
(327
)
Balance at September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,236


423


1,565


3,678


57


2,982


9,941

Accumulated impairment losses
(560
)
 

 

 

 
(57
)
 

 
(617
)
 
$
676

 
$
423

 
$
1,565

 
$
3,678

 
$

 
$
2,982

 
$
9,324

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2018 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition
$

 
$

 
$
365

 
$
82

 
$

 
$

 
$
447

Measurement period adjustments

 

 

 

 

 
(2
)
 
(2
)
Allocation of acquired goodwill

 

 
568

 
2,412

 

 
(2,980
)
 

Reclass to assets held for sale

 

 

 
(30
)
 

 

 
(30
)
Balance at September 29, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,236


423


2,498


6,142


57




10,356

Accumulated impairment losses
(560
)
 

 

 

 
(57
)
 

 
(617
)

$
676

 
$
423

 
$
2,498

 
$
6,142

 
$

 
$

 
$
9,739


(a) Other included the goodwill from our foreign chicken operation.
The following table reflects intangible assets by type at September 29, 2018, and September 30, 2017:
in millions
 
 
2018

 
2017

Amortizable intangible assets:
 
 
 
Brands and trademarks
$
950

 
$
738

Customer relationships
1,793

 
1,639

Supply Arrangements
358



Patents, intellectual property and other
107

 
114

Land use rights
9

 
9

  Total gross amortizable intangible assets
$
3,217

 
$
2,500

     Less accumulated amortization
536

 
335

  Total net amortizable intangible assets
$
2,681

 
$
2,165

Brands and trademarks not subject to amortization
4,078

 
4,078

  Total intangible assets
$
6,759

 
$
6,243


Amortization expense of $210 million, $107 million and $80 million was recognized during fiscal 2018, 2017 and 2016, respectively. We estimate amortization expense on intangible assets for the next five fiscal years subsequent to September 29, 2018, will be: 2019 - $241 million; 2020 - $240 million; 2021 - $222 million; 2022 - $212 million; 2023 - $201 million.
v3.10.0.1
Restructuring and Related Charges
12 Months Ended
Sep. 29, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Charges
RESTRUCTURING AND RELATED CHARGES
In the fourth quarter of fiscal 2017, our Board of Directors approved a multi-year restructuring program (the “Financial Fitness Program”), which is expected to contribute to the Company’s overall strategy of financial fitness through increased operational effectiveness and overhead reduction. The Company currently anticipates the Financial Fitness Program will result in cumulative pretax charges, once implemented, of approximately $253 million which consist primarily of severance and employee related costs, impairments and accelerated depreciation of technology assets, incremental costs to implement new technology, and contract termination costs. This program included the elimination of approximately 550 positions across several areas and job levels with most of the eliminated positions originating from the corporate offices in Springdale, Arkansas; Chicago, Illinois; and Cincinnati, Ohio. The Company recognized restructuring and related charges of $59 million and $150 million associated with the program during fiscal 2018 and 2017, respectively.
The following table reflects the pretax impact of restructuring and related charges in the Consolidated Statements of Income:
in millions
 
 
2018

2017

Cost of Sales
$

$
35

Selling, General and Administrative expenses
59

115

Total restructuring and related charges, pretax
$
59

$
150


The following table reflects the pretax impact of restructuring and related charges incurred in fiscal 2017 and 2018, the estimated charges in future years (primarily in fiscal 2019) and the total estimated program charges, by our reportable segments:
 
in millions

 
2017 charges

2018 charges

Estimated future charges

Total estimated Financial Fitness Program charges

Beef
$
8

$
4

$
6

$
18

Pork
3

1

3

7

Chicken
56

30

16

102

Prepared Foods
82

24

19

125

Other
1



1

Total restructuring and related charges, pretax
$
150

$
59

$
44

$
253


For fiscal 2017, the restructuring and related charges consisted of $53 million severance and employee related costs, $72 million technology impairment and related costs, and $25 million for contract termination costs. For fiscal 2018, the restructuring and related charges consisted of $59 million of incremental costs to implement new technology and accelerated depreciation of technology assets. The majority of the remaining estimated charges are related to incremental costs to implement new technology.
The following table reflects our liability related to restructuring which was recognized in other current liabilities in our Consolidated Balance Sheet as of September 29, 2018:
in millions

 
 
Liability as of September 30, 2017
Restructuring charges
Payments
Other
Liability as of September 29, 2018
Severance and employee related costs
$
47

$

$
37

$

$
10

Contract termination
22


21

1


Total
$
69

$

$
58

$
1

$
10

v3.10.0.1
Income Taxes
12 Months Ended
Sep. 29, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
On December 22, 2017, President Trump signed into law the Tax Act. The Tax Act includes significant changes to the U.S. tax code that affected our fiscal year ended September 29, 2018 and will affect future periods. Changes include, but are not limited to, (1) reducing the corporate federal income tax rate from 35% to 21%, (2) bonus depreciation that allows for full expensing of qualified property in the year placed in service and (3) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries. Section 15 of the Internal Revenue Code (the "Code") stipulates that our fiscal year ended September 29, 2018, has a blended corporate tax rate of 24.5%, which is based on the applicable tax rates before and after the Tax Act and the number of days in the year. Additionally, the Tax Act includes the repeal of the domestic production activity deduction, a new provision designed to tax global intangible low-taxed income ("GILTI"), a new provision which allows a deduction for foreign-derived intangible income ("FDII"), and a new provision which institutes a base erosion and anti-abuse tax ("BEAT"), beginning with our fiscal year 2019. We are still evaluating these new international provisions; however, we do not expect them to have a material impact to our financial statements.
Changes in the Code from the Tax Act had a material impact on our financial statements in fiscal 2018. Under generally accepted accounting principles ("U.S. GAAP"), specifically ASC Topic 740, Income Taxes, the tax effects of changes in tax laws must be recognized in the period in which the law is enacted, or December 22, 2017, for the Tax Act. ASC 740 also requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. Thus, at the date of enactment, the Company’s deferred taxes were remeasured based upon the new tax rates. The change in deferred taxes was recorded as an adjustment to our deferred tax provision.
The staff of the U.S. Securities and Exchange Commission recognized the complexity of reflecting the impacts of the Tax Act and issued guidance in Staff Accounting Bulletin 118 ("SAB 118"), which clarifies accounting for income taxes under ASC 740 if information is not yet available or complete and provides for up to a one year period in which to complete the required analyses and accounting (the "measurement period"). SAB 118 describes three scenarios (or "buckets") associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the Tax Act being enacted. The FASB also issued guidance that essentially adopts the SEC guidance (see Note 2: Changes in Accounting Principles).
Transition Tax: The Tax Act requires a one-time Deemed Repatriation Transition Tax on previously untaxed net accumulated and current earnings and profits of our foreign subsidiaries. Based on our analysis of our foreign earnings and profits, net of deficits and foreign tax credits, no transition tax is due for the Company. Our accounting for this element of the Tax Act is complete.
Corporate Tax Rate Reduction: The Tax Act reduced the corporate tax rate from 35% to 21%, effective January 1, 2018. This results in a blended corporate tax rate of 24.5% in fiscal year 2018 and 21% thereafter. We analyzed our domestic deferred tax balances to estimate which of those balances were expected to reverse in fiscal 2018 or thereafter, and we remeasured the deferred taxes at 24.5% or 21% accordingly. In fiscal 2018, we recorded a discrete net deferred income tax benefit of $1,004 million with a corresponding provisional reduction to our net deferred income tax liability. Our accounting for this element of the Tax Act is incomplete; however, we were able to make reasonable estimates of the effects, and therefore, recorded the provisional adjustment. Remeasurement may continue to change as we receive additional information about the timing of deferred income tax reversals; however, we do not expect any additional changes to be material.
GILTI: The Tax Act created a new requirement in tax years beginning after December 31, 2017 (our fiscal 2019) that certain income (i.e., GILTI) earned by controlled foreign corporations ("CFCs") must be included currently in the gross income of the CFCs’ U.S. shareholder. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). We have elected to account for the tax using the period cost method and have, therefore, not recorded any adjustments in our fiscal 2018 financial statements. Our accounting for this component of tax reform is incomplete; however, based upon our initial analysis, the GILTI tax is not expected to have a material impact on our financial statements.
The changes included in the Tax Act are broad and complex. The final transition impacts of the Tax Act may differ from the above estimates due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the Company has utilized to calculate the impacts.
Detail of the provision for income taxes from continuing operations consists of the following:
 
 
 
 
 
in millions  

 
2018

 
2017

 
2016

Federal
$
(426
)
 
$
755

 
$
710

State
118

 
81

 
118

Foreign
26

 
14

 
(2
)
 
$
(282
)
 
$
850

 
$
826

 
 
 
 
 
 
Current
$
583

 
$
889

 
$
742

Deferred
(865
)
 
(39
)
 
84

 
$
(282
)
 
$
850

 
$
826


The reasons for the difference between the statutory federal income tax rate and our effective income tax rate from continuing operations are as follows:
 
2018

 
2017

 
2016

Federal income tax rate
24.5
 %
 
35.0
 %
 
35.0
 %
State income taxes
3.3

 
2.3

 
2.7

Domestic production deduction
(1.7
)
 
(3.1
)
 
(2.6
)
Impairment and sale of non-protein businesses
3.1

 

 

Impact of the Tax Act
(37.9
)
 

 

Other
(1.6
)
 
(1.9
)
 
(3.3
)
 
(10.3
)%
 
32.3
 %
 
31.8
 %

During fiscal 2018, the domestic production deduction decreased tax expense by $46 million, and state tax expense, net of federal tax benefit, was $90 million. The change in federal tax rate from the Tax Act resulted in a tax benefit of $1,004 million related to deferred tax remeasurement. Additionally, current year favorable timing differences currently deductible at the 24.5% blended tax rate but reversing in future years at 21% resulted in a $35 million tax benefit. The impacts of the non-deductible impairment and sale of certain assets in our non-protein businesses increased the effective tax rate by 3.1%.
During fiscal 2017, the domestic production deduction decreased tax expense by $80 million, and state tax expense, net of federal tax benefit, was $61 million.
During fiscal 2016, the domestic production deduction decreased tax expense by $68 million, and state tax expense, net of federal tax benefit, was $70 million.
Approximately $2,700 million, $2,603 million and $2,543 million of income from continuing operations before income taxes for fiscal 2018, 2017 and 2016, 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 fiscal 2018 deferred tax liability includes the effects of the Tax Act, including remeasurement of deferred taxes and bonus depreciation. The tax effects of major items recorded as deferred tax assets and liabilities as of September 29, 2018, and September 30, 2017, are as follows:
 
 
 
 
 
 
 
in millions

 
2018
 
2017
 
Deferred Tax
 
Deferred Tax
 
Assets

 
Liabilities

 
Assets

 
Liabilities

Property, plant and equipment
$

 
$
714

 
$

 
$
900

Intangible assets

 
1,533

 

 
2,424

Accrued expenses
230

 

 
400

 

Net operating loss and other carryforwards
92

 

 
97

 

Other
98

 
193

 
204

 
273

 
$
420

 
$
2,440

 
$
701

 
$
3,597

Valuation allowance
$
(79
)
 
 
 
$
(75
)
 
 
Net deferred tax liability
 
 
$
2,099

 
 
 
$
2,971


At September 29, 2018, our gross state tax net operating loss carryforwards approximated $662 million and expire in fiscal years 2019 through 2038. Gross foreign net operating loss carryforwards approximated $46 million, of which $41 million expire in fiscal years 2019 through 2028, and the remainder has no expiration. We also have tax credit carryforwards of approximately $47 million, of which $43 million expire in fiscal years 2019 through 2031, and the remainder has no expiration.
We have accumulated undistributed earnings of foreign subsidiaries aggregating approximately $210 million and $182 million at September 29, 2018, and September 30, 2017, respectively. The Tax Act generally eliminates U.S. federal income taxes on dividends from foreign subsidiaries after December 31, 2017. As a result, our intention is that excess cash held by our foreign subsidiaries that is not subject to regulatory restrictions is expected to be repatriated net of applicable withholding taxes which are expected to be immaterial. The remainder of accumulated undistributed earnings are expected to be indefinitely reinvested outside of the United States. If these earnings were distributed in the form of dividends or otherwise, we could be subject to state income taxes and withholding taxes payable to various foreign countries. Due to the uncertainty of the manner in which the undistributed earnings would be brought back to the United States and the tax laws in effect at that time, 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 September 29, 2018September 30, 2017, and October 1, 2016:
 
 
 
 
 
in millions

 
2018

 
2017

 
2016

Balance as of the beginning of the year
$
316

 
$
305

 
$
306

Increases related to current year tax positions
19

 
38

 
35

Increases related to prior year tax positions
8

 
5

 
31

Increase related to AdvancePierre acquisition

 
9

 

Reductions related to prior year tax positions
(18
)
 
(27
)
 
(48
)
Reductions related to settlements
(8
)
 
(4
)
 
(7
)
Reductions related to expirations of statutes of limitations
(9
)
 
(10
)
 
(12
)
Balance as of the end of the year
$
308

 
$
316

 
$
305


The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $216 million at September 29, 2018 and $205 million at September 30, 2017. We classify interest and penalties on unrecognized tax benefits as income tax expense. At September 29, 2018, and September 30, 2017, before tax benefits, we had $73 million and $63 million, respectively, of accrued interest and penalties on unrecognized tax benefits.
As of September 29, 2018, we are subject to income tax examinations for United States federal income taxes for fiscal years 2013 through 2017. We are also subject to income tax examinations by major state and foreign jurisdictions for fiscal years 2007 through 2017 and 2002 through 2017, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease by as much as $28 million primarily due to expiration of statutes and settlements in various jurisdictions.
v3.10.0.1
Debt
12 Months Ended
Sep. 29, 2018
Debt Instruments [Abstract]  
Debt
DEBT
The following table reflects major components of debt as of September 29, 2018, and September 30, 2017:
 
 
 
in millions

 
2018

 
2017

Revolving credit facility
$

 
$

Commercial Paper
605

 
778

Senior notes:
 
 
 
7.00% Notes due May 2018

 
120

Notes due May 2019 (2.76% at 09/29/2018)
300

 
300

2.65% Notes due August 2019
1,000

 
1,000

Notes due June 2020 (2.87% at 09/29/2018)
350

 
350

Notes due August 2020 (2.76% at 09/29/2018)
400

 
400

4.10% Notes due September 2020
281

 
282

2.25% Notes due August 2021
500

 
500

4.50% Senior notes due June 2022
1,000

 
1,000

3.90% Notes due September 2023 (2023 Notes)
400

 

3.95% Notes due August 2024
1,250

 
1,250

3.55% Notes due June 2027
1,350

 
1,350

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032
161

 
162

4.88% Notes due August 2034
500

 
500

5.15% Notes due August 2044
500

 
500

4.55% Notes due June 2047
750

 
750

5.10% Notes due September 2048 (2048 Notes)
500

 

Discount on senior notes
(15
)
 
(15
)
Term loans:
 
 
 
Tranche B due August 2019

 
427

Tranche B due August 2020

 
500

Other
73

 
81

Unamortized debt issuance costs
(50
)
 
(50
)
Total debt
9,873

 
10,203

Less current debt
1,911

 
906

Total long-term debt
$
7,962

 
$
9,297

Annual maturities of debt for the five fiscal years subsequent to September 29, 2018, are: 2019 - $1,911 million; 2020 - $1,037 million; 2021 - $511 million; 2022 - $1,007 million; 2023 - $405 million.
Revolving Credit Facility and Letters of Credit
In March 2018, we amended our existing credit facility which, among other things, increased our line of credit from $1.5 billion to $1.75 billion. The facility supports short-term funding needs and serves as a backstop to our commercial paper program and will mature and the commitments thereunder will terminate in March 2023. Amounts available for borrowing under this facility totaled $1.75 billion at September 29, 2018, before deducting amounts to backstop our commercial paper program. At September 29, 2018, we had no outstanding letters of credit issued under this facility. At September 29, 2018 we had $105 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 and other legal obligations.
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.
Commercial Paper Program
We have a commercial paper program under which we may issue unsecured short-term promissory notes ("commercial paper") up to an aggregate maximum principal amount of $1 billion as of September 29, 2018. As of September 29, 2018, we had $605 million of commercial paper outstanding at a weighted average interest rate of 2.33% with maturities of less than 25 days.
2023/2048 Notes
In September 2018, we issued senior unsecured notes with an aggregate principal amount of $900 million, consisting of $400 million due September 2023 and $500 million due September 2048. We used the net proceeds from the issuance to extinguish our Term Loan Tranche B due August 2020 and to reduce amounts outstanding under our commercial paper program. The September 2023 Notes carry a fixed interest rate of 3.9% and the 2048 Notes carry a fixed interest rate at 5.1%. Interest payments on the 2023 and 2048 Notes are due semi-annually on March 28 and September 28. After the original issue discounts of $3 million, we received net proceeds of $897 million. In addition, we incurred debt issuance costs of $9 million related to this issuance.
Term Loan Tranche B due August 2020
On June 8, 2018, we amended our existing term loan agreement which increased the principal amount borrowed from $500 million to $750 million. Proceeds from the borrowings were primarily used to fund an acquisition. In the fourth quarter of fiscal 2018, we extinguished the $750 million outstanding balance using cash on hand and funds borrowed under our new 2023 and 2048 senior notes.
7.00% Notes due May 2018
During fiscal 2018, we extinguished the $120 million outstanding balance of the Senior Notes due May 2018 using cash on hand.
Term Loan Tranche B due August 2019
During fiscal 2018, we extinguished the $427 million outstanding balance of the Term Loan Tranche B due in August 2019 using cash on hand and proceeds received from the sale of a non-protein business.
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 September 29, 2018.
v3.10.0.1
Equity
12 Months Ended
Sep. 29, 2018
Equity [Abstract]  
Equity
EQUITY
Capital Stock
We have two classes of capital stock, Class A Common stock, $0.10 par value (Class A stock) 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 September 29, 2018, 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, 2.09% of the outstanding shares of Class A stock, giving them, collectively, control of approximately 70.96% 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 $1.20, $0.90, and $0.60 in fiscal 2018, 2017, and 2016, respectively. We paid Class B dividends per share of $1.08, $0.81, and $0.54 in fiscal 2018, 2017, and 2016, respectively. Effective November 12, 2018, the Board of Directors increased the quarterly dividend previously declared on August 9, 2018, to $0.375 per share on our Class A stock and $0.3375 per share on our Class B stock. The increased quarterly dividend is payable on December 14, 2018, to shareholders of record at the close of business on November 30, 2018.
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 September 29, 2018, 22.9 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 2018, 2017 and 2016 is as follows:
 
 
 
 
 
 
 
 
 
 
in millions
 
 
 
September 29, 2018
 
September 30, 2017
 
October 1, 2016
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
4.9

 
$
350

 
12.5

 
$
797

 
30.8

 
$
1,868

To fund certain obligations under equity compensation plans
 
1.0

 
77

 
1.0

 
63

 
1.3

 
76

Total share repurchases
 
5.9

 
$
427

 
13.5

 
$
860

 
32.1

 
$
1,944


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 had a stated amount of $50, was 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 was amortized over the term of the instrument to July 15, 2017.
In July 2017, the Company made the final quarterly cash installment payment of $0.59 per senior amortizing note and issued the required remaining shares of its Class A stock upon automatic settlement of each outstanding purchase contract.
v3.10.0.1
Other Income And Charges
12 Months Ended
Sep. 29, 2018
Other Income and Expenses [Abstract]  
Other Income And Charges
OTHER INCOME AND CHARGES
During fiscal 2018, we recognized a one-time cash bonus to our hourly frontline employees of $109 million using incremental cash savings from the Tax Act, which was predominantly recorded in the Consolidated Statements of Income in Cost of Sales. Additionally, we recorded $11 million of insurance proceeds, $21 million of equity earnings in joint ventures and $1 million in net foreign currency exchange gains, which were recognized in the Consolidated Statements of Income in Other, net.
During fiscal 2017, we recorded $28 million of legal costs related to two former subsidiaries of Hillshire Brands, which were sold by Hillshire Brands in 1986 and 1994, $18 million of acquisition bridge financing fees related to the AdvancePierre acquisition and $19 million of equity earnings in joint ventures, which were recorded in the Consolidated Statements of Income in Other, net.
In the second quarter of fiscal 2017, we recorded a $52 million impairment charge related to our San Diego Prepared Foods operation. The impairment was comprised of $43 million of property, plant and equipment, $8 million of definite lived intangible assets and $1 million of other assets. This charge, of which $44 million was included in the Consolidated Statements of Income in Cost of Sales and $8 million was included in the Consolidated Statements of Income in Selling, General and Administrative, was triggered by a change in a co-manufacturing contract and ongoing losses.
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.
v3.10.0.1
Earnings Per Share
12 Months Ended
Sep. 29, 2018
Earnings Per Share [Abstract]  
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
 
 
2018

 
2017

 
2016

Numerator:
 
 
 
 
 
Net income
$
3,027

 
$
1,778

 
$
1,772

Less: Net income (loss) attributable to noncontrolling interests
3

 
4

 
4

Net income attributable to Tyson
3,024

 
1,774

 
1,768

Less dividends declared:
 
 
 
 
 
Class A
378

 
285

 
192

Class B
80

 
61

 
41

Undistributed earnings
$
2,566

 
$
1,428

 
$
1,535

 
 
 
 
 
 
Class A undistributed earnings
$
2,115

 
$
1,177

 
$
1,279

Class B undistributed earnings
451

 
251

 
256

Total undistributed earnings
$
2,566

 
$
1,428

 
$
1,535

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Class A weighted average shares
295

 
296

 
315

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
4

 
4

 
5

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
369

 
370

 
390

 
 
 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
 
 
Class A Basic
$
8.44

 
$
4.94

 
$
4.67

Class B Basic
$
7.59

 
$
4.45

 
$
4.24

Diluted
$
8.19

 
$
4.79

 
$
4.53

Dividends Declared Per Share:
 
 
 
 
 
Class A
$
1.275

 
$
0.975

 
$
0.650

Class B
$
1.148

 
$
0.878

 
$
0.585


Approximately 1 million of our stock-based compensation shares were antidilutive for both fiscal 2018 and 2017. We had no stock-based compensation shares that were antidilutive for fiscal 2016. 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.
v3.10.0.1
Derivative Financial Instruments
12 Months Ended
Sep. 29, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
DERIVATIVE FINANCIAL INSTRUMENTS
Our business operations give rise to certain market risk exposures mostly due to changes in commodity prices, foreign currency exchange rates and interest rates. We manage a portion of these risks through the use of derivative financial instruments to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Our risk management programs are periodically reviewed by our Board of Directors' Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using value-at-risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit-worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at September 29, 2018.
We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
 
 
 
 
in millions, except soy meal tons
 
 
 
Metric
 
September 29, 2018

 
September 30, 2017

Commodity:
 
 
 
 
 
 
Corn
 
Bushels
 
112

 
55

Soy Meal
 
Tons
 
651,700

 
475,200

Live Cattle
 
Pounds
 
105

 
211

Lean Hogs
 
Pounds
 
39

 
240

Foreign Currency
 
United States dollar
 
$
89

 
$
58

Interest rate swap
 
Average monthly debt
 
$
400

 
$


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), interest rate swaps, 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 as well as interest rates to our variable rate debt. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income ("OCI") and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant during fiscal 2018, 2017 and 2016. As of September 29, 2018, we have net pretax losses of $11 million for our commodity contracts, and $1 million pretax gains related to our interest swaps, expected to be reclassified into earnings within the next 12 months. During fiscal 2018, 2017 and 2016, we did not reclassify significant pretax gains or 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
 
 
2018

 
2017

 
2016

 
 
 
2018

 
2017

 
2016

Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(21
)
 
$
(3
)
 
$
(1
)
 
Cost of Sales
 
$
(12
)
 
$
(4
)
 
$
1

Interest rate swaps
1

 

 

 
Interest expense
 

 

 

Total
$
(20
)
 
$
(3
)
 
$
(1
)
 
 
 
$
(12
)
 
$
(4
)
 
$
1


Fair value hedges
We designate certain derivative contracts as fair value hedges of firm commitments to purchase livestock for harvest. Our objective of these hedges is to minimize the risk of changes in fair value created by fluctuations in commodity prices associated with fixed price livestock firm commitments. For these derivative instruments we designate and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in earnings in the same period. We include the gain or loss on the hedged items (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
 
2018

 
2017

 
2016

Gain (Loss) on forwards
 
Cost of Sales
 
$
12

 
$
(20
)
 
$
89

Gain (Loss) on purchase contract
 
Cost of Sales
 
(12
)
 
20

 
(89
)

Ineffectiveness related to our fair value hedges was not significant during fiscal 2018, 2017 and 2016.
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
 
 
 
 
 
2018

 
2017

 
2016

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
Sales
 
$
18

 
$
111

 
$
(73
)
Commodity contracts
 
Cost of Sales
 
(33
)
 
(95
)
 
17

Foreign exchange contracts
 
Other Income/Expense
 
(3
)
 

 
2

Total
 
 
 
$
(18
)
 
$
16

 
$
(54
)

The fair value of all outstanding derivative instruments in the Consolidated Balance Sheets are included in Note 13: Fair Value Measurements.
v3.10.0.1
Fair Value Measurements
12 Months Ended
Sep. 29, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements
FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:
Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date.
Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical or similar assets in non-active markets;
Inputs other than quoted prices that are observable for the asset or liability; and
Inputs derived principally from or corroborated by other observable market data.
Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values:
 
 
 
 
 
 
 
 
 
in millions

September 29, 2018
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Other Current Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$

 
$
2

 
$

 
$
(1
)
 
$
1

Undesignated

 
44

 

 
(19
)
 
25

Available for sale securities:
 
 
 
 
 
 
 
 
 
Current

 
1

 

 

 
1

Other assets:
 
 
 
 
 
 
 
 
 
Available for sale securities:
 
 
 
 
 
 
 
 
 
Non-current

 
46

 
51

 

 
97

Deferred compensation assets
21

 
295

 

 

 
316

Total assets
$
21

 
$
388

 
$
51

 
$
(20
)
 
$
440

 
 
 
 
 
 
 
 
 
 
Other Current Liabilities:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$

 
$
8

 
$

 
$
(8
)
 
$

Undesignated

 
35

 

 
(30
)
 
5

Total liabilities
$

 
$
43

 
$

 
$
(38
)
 
$
5

 
 
 
 
 
 
 
 
 
 
September 30, 2017
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Other Current Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$

 
$
10

 
$

 
$
(1
)
 
$
9

Undesignated

 
24

 

 
(3
)
 
21

Available for sale securities:
 
 
 
 
 
 
 
 
 
Current

 
2

 
1

 

 
3

Other Assets:
 
 
 
 
 
 
 
 
 
Available for sale securities:
 
 
 
 
 
 
 
 
 
Non-current

 
45

 
50

 

 
95

Deferred Compensation assets
23

 
272

 

 

 
295

Total assets
$
23

 
$
353

 
$
51

 
$
(4
)
 
$
423

 
 
 
 
 
 
 
 
 
 
Other Current Liabilities:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$

 
$
9

 
$

 
$
(9
)
 
$

Undesignated

 
21

 

 
(17
)
 
4

Total liabilities
$

 
$
30

 
$

 
$
(26
)
 
$
4

(a)
Our derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at September 29, 2018, and September 30, 2017, we had $18 million and $22 million, respectively, of cash collateral posted with various counterparties where master netting arrangements exist and held no cash collateral.
The following table provides a reconciliation between the beginning and ending balance of marketable debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3):
 
 
 
in millions

 
September 29, 2018

 
September 30, 2017

Balance at beginning of year
$
51

 
$
57

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

 

Included in other comprehensive income (loss)
(1
)
 
(1
)
Purchases
20

 
13

Issuances

 

Settlements
(19
)
 
(18
)
Balance at end of year
$
51

 
$
51

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

 
$


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Derivative Assets and Liabilities: Our derivative financial instruments primarily include exchange-traded and over-the-counter contracts which are further described in Note 12: Derivative Financial Instruments. We record our derivative financial instruments at fair value using quoted market prices, adjusted where necessary for credit and non-performance risk and internal models that use readily observable market inputs as their basis, including current and forward market prices and rates. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges or observable market transactions.
Available for Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. Short-term investments with maturities of less than 12 months are included in Other current assets in the Consolidated 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 32 years. We classify our investments in U.S. government, U.S. agency, certificates of deposit and commercial paper debt securities as Level 2 as fair value is generally estimated using discounted cash flow models that are primarily industry-standard models that consider various assumptions, including time value and yield curve as well as other readily available relevant economic measures. We classify certain corporate, asset-backed and other debt securities as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated financial statements.
The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):
 
 
 
 
 
 
 
 
 
in millions
 
 
September 29, 2018
 
September 30, 2017
 
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
$
48

 
$
47

 
$
(1
)
 
$
47

 
$
47

 
$

Corporate and Asset-Backed
52

 
51

 
(1
)
 
51

 
51

 

 
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 2018 and fiscal 2017. No other than temporary losses were deferred in OCI as of September 29, 2018, and September 30, 2017.
Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are generally maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated Balance Sheets. We classify the investments which have observable market prices in active markets in Level 1 as these are generally publicly-traded mutual funds. The remaining deferred compensation assets are classified in Level 2, as fair value can be corroborated based on observable market data. Realized and unrealized gains (losses) on deferred compensation are included in earnings.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges.
In fiscal 2018, we recorded $101 million of impairment charges related to the expected sale of non-protein businesses held for sale, due to revised estimates of the businesses' fair value based on current expected net sales proceeds at the time of the impairment. These charges were recorded in Cost of Sales in our Consolidated Statement of Income, and primarily consisted of Goodwill previously classified within Assets held for sale. Our valuation included unobservable Level 3 inputs and was based on expected sales proceeds from a competitive bidding process and ongoing discussions with potential buyers.
In the fourth quarter of fiscal 2017, we recorded an impairment charge totaling $45 million, related to one of the non-protein businesses held for sale, due to a revised estimate of the business’ fair value based on current expected net sales proceeds. The impairment charge was recorded in Cost of Sales in our Consolidated Statement of Income for fiscal 2017, and consisted of Goodwill and Intangible Assets previously classified within Assets held for sale. Our valuation included unobservable Level 3 inputs and was based on expected sales proceeds following a competitive bidding process.
In the second quarter of fiscal 2017, we recorded a $52 million impairment charge related to our San Diego Prepared Foods operation. The impairment was comprised of $43 million of property, plant and equipment, $8 million of definite lived intangibles assets and $1 million of other assets. This charge, of which $44 million was included in the Consolidated Statements of Income in Cost of Sales and $8 million was included in the Consolidated Statements of Income in Selling, General and Administrative, was triggered by a change in a co-manufacturing contract and ongoing losses. Our valuation of these assets was primarily based on discounted cash flows and relief-from-royalty models, which included unobservable Level 3 inputs.
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.
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
 
 
September 29, 2018
 
September 30, 2017
 
Fair
Value

 
Carrying
Value

 
Fair
Value

 
Carrying
Value

Total Debt
$
9,775

 
$
9,873

 
$
10,591

 
$
10,203


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 September 29, 2018, and September 30, 2017, 18.6% of our net accounts receivable balance was due from Walmart Inc. No other single customer or customer group represented greater than 10% of net accounts receivable.
v3.10.0.1
Stock-Based Compensation
12 Months Ended
Sep. 29, 2018
Share-based Compensation [Abstract]  
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 16,150,273 at September 29, 2018.
Stock Options
Shareholders approved the Incentive Plan in January 2001. The Incentive Plan is administered by the Compensation and Leadership Development Committee of the Board of Directors (Compensation Committee). The Incentive Plan includes provisions for granting incentive stock options for shares of Class A stock at a price not less than the fair value at the date of grant. Nonqualified stock options may be granted at a price equal to or more than the fair value of Class A stock on the date the option is granted. Stock options under the Incentive Plan generally become exercisable ratably over three years from the date of grant and must be exercised within 10 years from the date of grant. Our policy is to recognize compensation expense on a straight-line basis over the requisite service period for the entire award.
 
Shares Under
Option

 
Weighted
Average Exercise
Price Per Share

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

Outstanding, September 30, 2017
7,547,518

 
$
40.54

 
 
 
 
Exercised
(2,615,963
)
 
38.67

 
 
 
 
Forfeited or expired
(120,897
)
 
60.80

 
 
 
 
Granted
1,183,490

 
78.16

 
 
 
 
Outstanding, September 29, 2018
5,994,148

 
48.37

 
6.7
 
$
88

 
 
 
 
 
 
 
 
Exercisable, September 29, 2018
3,793,715

 
$
37.63

 
5.6
 
$
84


We generally grant stock options once a year. The weighted average grant-date fair value of options granted in fiscal 2018, 2017 and 2016 was $18.31, $13.42 and $11.47, 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. In fiscal 2018, an additional grant was awarded for two executive officers who joined the Company subsequent to the initial annual grant. Accordingly, the assumptions below for fiscal 2018 are calculated using the weighted average amounts for the two fiscal 2018 grants. Assumptions as of the grant date used in the fair value calculation of each year’s grants are outlined in the following table.
 
2018

 
2017

 
2016

Expected life (in years)
5.9

 
5.4

 
6.4

Risk-free interest rate
2.1
%
 
1.8
%
 
1.6
%
Expected volatility
23.5
%
 
24.7
%
 
24.8
%
Expected dividend yield
1.5
%
 
1.3% - 1.4%

 
1.2% - 2.6%


We recognized stock-based compensation expense related to stock options, net of income taxes, of $13 million, $22 million and $23 million for fiscal 2018, 2017 and 2016, respectively. The related tax benefit for fiscal 2018, 2017 and 2016 was $6 million, $14 million and $15 million, respectively. We had 2.2 million, 4.1 million and 3.8 million options vest in fiscal 2018, 2017 and 2016, respectively, with a grant date fair value of $27 million, $47 million and $38 million, respectively.
In fiscal 2018, 2017 and 2016, we received cash of $102 million, $154 million and $128 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 2018, 2017 and 2016, was $30 million, $65 million and $80 million, respectively. The total intrinsic value of options exercised in fiscal 2018, 2017 and 2016, was $103 million, $164 million and $204 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 $20 million, $42 million and $58 million related to excess tax deductions during fiscal 2018, 2017 and 2016, respectively.
As of September 29, 2018, we had $18 million of total unrecognized compensation cost related to stock option plans that will be recognized over a weighted average period of 1.3 years.
Restricted Stock
We issue restricted stock at the market value as of the date of grant, with restrictions expiring over periods through fiscal 2020. Unearned compensation is recognized over the vesting period for the particular grant using a straight-line method.
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, September 30, 2017
1,715,100

 
$
51.21

 
 
 
 
Granted
545,015

 
77.25

 
 
 
 
Dividends
27,033

 
61.37

 
 
 
 
Vested
(608,371
)
 
45.02

 
 
 
 
Forfeited
(178,801
)
 
56.94

 
 
 
 
Nonvested, September 29, 2018
1,499,976

 
$
62.68

 
1.3
 
$
89


As of September 29, 2018, we had $40 million of total unrecognized compensation cost related to restricted stock awards that will be recognized over a weighted average period of 1.9 years.
We recognized stock-based compensation expense related to restricted stock, net of income taxes, of $22 million, $18 million and $14 million for fiscal 2018, 2017 and 2016, respectively. The related tax benefit for fiscal 2018, 2017 and 2016 was $9 million, $11 million and $9 million, respectively. We had 0.6 million, 0.5 million and 0.2 million restricted stock awards vest in fiscal 2018, 2017 and 2016, respectively, with a grant date fair value of $27 million, $19 million and $4 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, September 30, 2017
2,157,115

 
$
38.92

 
 
 
 
Granted
668,246

 
62.92

 
 
 
 
Vested
(396,468
)
 
27.95

 
 
 
 
Forfeited
(232,594
)
 
46.40

 
 
 
 
Nonvested, September 29, 2018
2,196,299

 
$
47.41

 
1.0
 
$
131


We recognized stock-based compensation expense related to performance shares, net of income taxes, of $12 million, $16 million and $11 million for fiscal 2018, 2017 and 2016, respectively. The related tax benefit for fiscal 2018, 2017 and 2016 was $5 million, $10 million and $7 million, respectively. As of September 29, 2018, we had $25 million of total unrecognized compensation based upon our progress toward the attainment of criteria related to performance-based share awards that will be recognized over a weighted average period of 1.8 years.
v3.10.0.1
Pensions And Other Postretirement Benefits
12 Months Ended
Sep. 29, 2018
Retirement Benefits, Description [Abstract]  
Pensions And Other Postretirement Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
At September 29, 2018, we had nine defined benefit pension plans consisting of six funded qualified plans, which are all frozen and noncontributory, and three unfunded non-qualified plans. 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 $84 million, $78 million and $67 million in fiscal 2018, 2017 and 2016, 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.
In the second quarter of fiscal 2017, we issued a notice of intent to terminate two of our qualified pension plans with a termination date of April 30, 2017. The settlements of the terminated plans will occur in the first quarter of fiscal 2019, through purchased annuities. We made minimal additional contributions in preparation for the estimated $21 million one-time settlement charge at final liquidation.
Additionally, subsequent to our fiscal year ended September 29, 2018, we issued a notice of intent to terminate three of our qualified pension plans with termination dates in the first quarter of fiscal 2019. The settlements of these plans are expected to occur in fiscal 2020, through purchased annuities. Since the amount of the settlement depends on a number of factors determined as of the liquidation date, including the annuity pricing, interest rate environment and asset experience, we are currently unable to determine the ultimate cost of the settlement. However, based on current market rates the one-time settlement gain at final liquidation is estimated to be in the range of approximately $35 million to $55 million. Contributions to purchase annuities at the time of settlement are expected to be in the range of approximately $5 million to $25 million based on current market conditions of each plan at September 29, 2018.
Benefit Obligations and Funded Status
The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at September 29, 2018, and September 30, 2017:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
1,477

 
$
1,554

 
$
230

 
$
222

 
$
33

 
$
36

Service cost

 
2

 
7

 
11

 
1

 
1

Interest cost
55

 
57

 
8

 
8

 
1

 
1

Curtailment

 

 
(5
)
 

 

 

Plan amendments

 

 
5

 

 

 

Actuarial (gain)/loss
(60
)
 
(52
)
 
(10
)
 
1

 
(5
)
 
(1
)
Benefits paid
(80
)
 
(84
)
 
(15
)
 
(12
)
 
(2
)
 
(4
)
Benefit obligation at end of year
1,392

 
1,477

 
220

 
230

 
28

 
33

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
1,512

 
1,440

 

 

 

 

Actual return on plan assets
4

 
115

 

 

 

 

Employer contributions
14

 
41

 
15

 
12

 
2

 
4

Benefits paid
(80
)
 
(84
)
 
(15
)
 
(12
)
 
(2
)
 
(4
)
Fair value of plan assets at end of year
1,450

 
1,512

 

 

 

 

Funded status
$
58

 
$
35

 
$
(220
)
 
$
(230
)
 
$
(28
)
 
$
(33
)

Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Other assets
$
61

 
$
44

 
$

 
$

 
$

 
$

Other current liabilities
(3
)
 

 
(12
)
 
(11
)
 
(3
)
 
(3
)
Other liabilities

 
(9
)
 
(208
)
 
(219
)
 
(25
)
 
(30
)
Total assets (liabilities)
$
58

 
$
35

 
$
(220
)
 
$
(230
)
 
$
(28
)
 
$
(33
)

Amounts recognized in Accumulated Other Comprehensive Income consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Accumulated other comprehensive (income)/loss:
 
 
 
 
 
 
 
 
 
 
 
   Actuarial (gain) loss
$
(96
)
 
$
(94
)
 
$
31

 
$
50

 
$

 
$

   Prior service (credit) cost (a)

 

 
5

 

 
(49
)
 
(73
)
Total accumulated other comprehensive (income)/loss:
$
(96
)
 
$
(94
)
 
$
36

 
$
50

 
$
(49
)
 
$
(73
)
(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.
We had five pension plans at September 29, 2018, and September 30, 2017, that 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
 
2018

 
2017

 
2018

 
2017

Projected benefit obligation
$
49

 
$
361

 
$
220

 
$
230

Accumulated benefit obligation
49

 
361

 
219

 
220

Fair value of plan assets
45

 
352

 

 


The accumulated benefit obligation for all qualified pension plans was $1,392 million and $1,477 million at September 29, 2018, and September 30, 2017, 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
 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

Service cost
$

 
$
2

 
$
8

 
$
7

 
$
11

 
$
6

 
$
1

 
$
1

 
$
1

Interest cost
55

 
57

 
65

 
8

 
8

 
9

 
1

 
1

 
3

Expected return on plan assets
(62
)
 
(59
)
 
(65
)
 

 

 

 

 

 

Amortization of prior service cost
1

 

 

 
1

 

 

 
(25
)
 
(25
)
 
(20
)
Recognized actuarial loss (gain), net

 
1

 
2

 
3

 
6

 
5

 
(5
)
 
(1
)
 
(15
)
Recognized settlement loss (gain)

 
2

 
(12
)
 

 

 

 

 

 

Net periodic benefit cost (credit)
$
(6
)
 
$
3

 
$
(2
)
 
$
19

 
$
25

 
$
20

 
$
(28
)
 
$
(24
)
 
$
(31
)

As of September 29, 2018, the amounts expected to be reclassified into earnings within the next 12 months related to net periodic benefit cost (credit) for the qualified and non-qualified pension plans, excluding pending settlements, are ($1) million and $3 million, respectively. As of September 29, 2018, 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 $11 million.
Assumptions
Weighted average assumptions are as follows:
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

Discount rate to determine net periodic benefit cost
3.85
%
 
3.72
%
 
4.47
%
 
3.88
%
 
3.77
%
 
4.41
%
 
3.39
%
 
3.09
%
 
3.54
%
Discount rate to determine benefit obligations
4.26
%
 
3.85
%
 
3.72
%
 
4.31
%
 
3.88
%
 
3.77
%
 
4.11
%
 
3.39
%
 
3.09
%
Rate of compensation increase
n/a

 
n/a

 
n/a

 
2.53
%
 
2.44
%
 
2.46
%
 
n/a

 
n/a

 
n/a

Expected return on plan assets
4.20
%
 
4.21
%
 
4.15
%
 
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. For all periods presented, 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, with benefit obligations totaling $17 million at September 29, 2018, 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, with benefit obligations less than $1 million at September 29, 2018, were not impacted by healthcare cost trend rates due to previous plan amendments. The remaining plan, with benefit obligation totaling $10 million at September 29, 2018, utilized an assumed healthcare cost trend rate of 7.6%. The healthcare cost trend rate will be grading down to an ultimate rate of 4.5% in 2027.
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:
 
2018

 
2017

 
Target Asset
Allocation

Cash
0.9
%
 
1.1
%
 
%
Fixed income securities
99.1

 
87.4

 
100.0

United States stock funds

 
3.5

 

International stock funds

 
5.6

 

Real estate

 
2.4

 

Total
100.0
%
 
100.0
%
 
100.0
%

Additionally, one of our foreign subsidiary pension plans had $30 million and $28 million in plan assets held in an insurance trust at September 29, 2018, and September 30, 2017, 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. The 100% target asset allocation to fixed income securities is based upon the intent to terminate these plans.
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 September 29, 2018.
The following tables show the categories of pension plan assets and the level under which fair values were determined in the fair value hierarchy, which is described in Note 13: Fair Value Measurements.
 
in millions
 
September 29, 2018
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
12

 
$

 
$

 
$
12

Insurance contract at contract value (a)

 

 
30

 
30

Total assets in fair value hierarchy
$
12

 
$

 
$
30

 
$
42

Investments measured at net asset value:
 
 
 
 
 
 
 
Common collective trusts (b)
 
 
 
 
 
 
1,408

Total plan assets
 
 
 
 
 
 
$
1,450

 
in millions
 
September 30, 2017
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
15

 
$

 
$

 
$
15

Insurance contract at contract value (a)

 

 
28

 
28

Total assets in fair value hierarchy
$
15

 
$

 
$
28

 
$
43

Investments measured at net asset value:
 
 
 
 
 
 
 
Common collective trusts (b)
 
 
 
 
 
 
1,469

Total plan assets
 
 
 
 
 
 
$
1,512

(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 Assets and 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

September 30, 2017
 
$
28

 
$
28

Actual return on plan assets:
 
 
 


Assets still held at reporting date
 
2

 
2

Assets sold during the period
 

 

Purchases, sales and settlements, net
 

 

Transfers in and/or out of Level 3
 

 

September 29, 2018
 
$
30

 
$
30


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 2019 are approximately $15 million. For fiscal 2018, 2017 and 2016, we funded $29 million, $53 million and $64 million, 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
2019
$
122

 
$
12

 
$
3

2020
79

 
12

 
3

2021
80

 
13

 
3

2022
81

 
13

 
3

2023
82

 
14

 
2

2024-2028
417

 
69

 
11


The above benefit payments for other postretirement benefit plans are not expected to be offset by Medicare Part D subsidies in fiscal 2019.
The above 2019 benefit payments include anticipated payments for a plan termination within two of our qualified pension plans. The plan termination process for these plans began on April, 30, 2017, and full settlement is expected to occur in the first quarter of fiscal 2019.
The above 2020 benefit payments do not include anticipated accelerated payments for a plan termination within three of our qualified pension plans. The plan termination process for one of these plans began on October 1, 2018 and for the remaining two plans is expected to begin December 31, 2018, and full settlement is expected to occur in fiscal 2020.
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 multi-employer plans are different from single-employer plans. Assets contributed to the multi-employer 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 multi-employer pension funds were in excess of 5% of the total plan contributions for plan year 2018 but were not in excess of 5% of the total plan contributions for plan years 2017 and 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 $2 million in fiscal 2018 and 2017. 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 multi-employer plan for fiscal 2018 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 2018 and fiscal 2017 is for the plan's year beginning January 1, 2018, and 2017, 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 2018. 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
 
2018
 
2017
 
Implemented
2018
2017
2016
 
2018
 
Expiration Date of Collective Bargaining Agreement(a)
Bakery and Confectionery Union and Industry International Pension Fund
52-6118572/001
 
Red
 
Red
 
Nov 2012
 
$2
$2
$1
 
10%
 
October 2015

(a) Renewal negotiations are in progress.
v3.10.0.1
Comprehensive Income (Loss)
12 Months Ended
Sep. 29, 2018
Statement of Comprehensive Income [Abstract]  
Comprehensive Income (Loss)
COMPREHENSIVE INCOME (LOSS)
The components of accumulated other comprehensive loss are as follows:
 
 
 
in millions

 
2018(1)

 
2017

Accumulated other comprehensive income (loss), net of taxes:
 
 
 
Unrealized net hedging loss
$
(9
)
 
$
(2
)
Unrealized net loss on investments
(1
)
 

Currency translation adjustment
(84
)
 
(53
)
Postretirement benefits reserve adjustments
79

 
71

Total accumulated other comprehensive income (loss)
$
(15
)
 
$
16


(1) Includes reclass from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act, following adoption of the applicable new accounting standard. Refer to Part II, Item 8, Notes to Consolidated Financial Statements, Note 2: Changes in Accounting Principles.
The before and after tax changes in the components of other comprehensive income (loss) are as follows:
 
 
 
 
 
 
 
 
 
 
in millions
 
 
 
2018
 
2017
 
2016
 
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to interest expense
 
$

$

$

 
$

$

$

 
$

$

$

(Gain) loss reclassified to cost of sales
 
12

(4
)
8

 
4

(2
)
2

 
(1
)
1


Unrealized gain (loss)
 
(20
)
5

(15
)
 
(3
)
1

(2
)
 
(1
)

(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
(2
)
1

(1
)
 
(1
)

(1
)
 
(1
)
1


 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
 
 
 
 
Translation adjustment
 
(38
)
2

(36
)
 
6


6

 
5

(1
)
4

Translation loss reclassified to cost of sales
 
7


7

 



 



 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits
 
(8
)
1

(7
)
 
91

(35
)
56

 
67

(25
)
42

Total other comprehensive income (loss)
 
$
(49
)
$
5

$
(44
)
 
$
97

$
(36
)
$
61

 
$
69

$
(24
)
$
45

v3.10.0.1
Segment Reporting
12 Months Ended
Sep. 29, 2018
Segment Reporting [Abstract]  
Segment Reporting
SEGMENT REPORTING
We operate in four reportable segments: Beef, Pork, Chicken, and Prepared Foods. We measure segment profit as operating income (loss). Other primarily includes our foreign chicken production operations in China, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC.
In fiscal 2017, we acquired and consolidated AdvancePierre, a producer and distributor of value-added, convenient, ready-to-eat sandwiches, sandwich components and other entrées and snacks, and in fiscal 2018, we acquired Original Philly, a valued added protein business. The results from operations of these businesses are included in the Prepared Foods and Chicken segments. In fiscal 2018, we acquired Tecumseh, a vertically integrated value-added protein business, and American Proteins, a poultry rendering and blending operation as part of our strategic expansion and sustainability initiatives. The results from operations of these businesses are included in our Chicken segment. For further description of these transactions, refer to Part II, Item 8, Notes to Consolidated Financial Statements, Note 3: Acquisitions and Dispositions.
In fiscal 2018, we completed the sale of four non-protein businesses as part of our strategic focus on protein brands. All of these businesses were part of our Prepared Foods segment and included Sara Lee® Frozen Bakery, Kettle, Van’s®, and TNT Crust and produced items such as frozen desserts, waffles, snack bars, soups, sauces, sides and pizza crusts. The sales included the Chef Pierre®, Bistro Collection®, Kettle Collection™, and Van’s® brands, a license to use the Sara Lee® brand in various channels, as well as our Tarboro, North Carolina, Fort Worth, Texas, Traverse City, Michigan, and Green Bay, Wisconsin prepared foods facilities. For further description of these transactions, refer to Part II, Item 8, Notes to Consolidated Financial Statements, Note 3: Acquisitions and Dispositions.
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.
Chicken: Chicken includes our domestic operations related to raising and processing live chickens into, and purchasing raw materials for, fresh, frozen and value-added chicken products, as well as sales from allied products. Our value-added chicken products primarily include breaded chicken strips, nuggets, patties and other ready-to-fix or fully cooked chicken parts. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. This segment includes brands such as Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island®. Products primarily include ready-to-eat sandwiches, sandwich components such as flame-grilled hamburgers and Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets.
We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs of $26 million, $67 million and $37 million in fiscal 2018, 2017 and 2016, respectively, and corporate overhead related to Tyson New Ventures, LLC, which are included in Other. Assets and additions to property, plant and equipment relating to corporate activities remain in Other. At September 30, 2017, we included $3 billion of unallocated goodwill associated with our acquisition of AdvancePierre in Other and we completed the allocation of goodwill to our segments in fiscal 2018. Additionally, as of September 29, 2018, we completed the allocation of goodwill associated with our fiscal 2018 acquisitions. Refer to Note 5: Goodwill and Intangible Assets for further description.
Information on segments and a reconciliation to income from continuing operations before income taxes are as follows:
 
in millions
 
 
Beef

 
Pork

 
Chicken

 
Prepared
Foods

 
Other

 
Intersegment
Sales

 
Consolidated

Fiscal 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
15,473

 
$
4,879

 
$
12,044

 
$
8,668

 
$
305

 
$
(1,317
)
 
$
40,052

Operating Income (Loss)
1,013

 
361

 
866

 
868

 
(53
)
 
 
 
3,055

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
310

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,745

Depreciation and amortization
103

 
42

 
368

 
410

 
10

 
 
 
933

Total Assets
3,061

 
1,265

 
8,794

 
15,063

 
926

 
 
 
29,109

Additions to property, plant and equipment
107

 
150

 
570

 
228

 
145

 
 
 
1,200

Fiscal 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
14,823

 
$
5,238

 
$
11,409

 
$
7,853

 
$
349

 
$
(1,412
)
 
$
38,260

Operating Income (Loss)
877

 
645

 
1,053

 
462

 
(106
)
 
 
 
2,931

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
303

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,628

Depreciation and amortization
92

 
36

 
296

 
315

 
9

 
 
 
748

Total Assets
2,938

 
1,132

 
6,630

 
13,466

 
3,900

 
 
 
28,066

Additions to property, plant and equipment
118

 
101

 
492

 
229

 
129

 
 
 
1,069

Fiscal 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
14,513

 
$
4,909

 
$
10,927

 
$
7,346

 
$
380

 
(1,194
)
 
$
36,881

Operating Income (Loss)
347

 
528

 
1,305

 
734

 
(81
)
 
 
 
2,833

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
235

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,598

Depreciation and amortization
94

 
33

 
274

 
286

 
10

 
 
 
697

Total Assets
2,764

 
1,039

 
5,836

 
11,814

 
920

 
 
 
22,373

Additions to property, plant and equipment
99

 
68

 
281

 
178

 
69

 
 
 
695


The Beef segment had sales of $420 million, $386 million and $327 million for fiscal 2018, 2017 and 2016, respectively, from transactions with other operating segments. The Pork segment had sales of $817 million, $966 million and $840 million for fiscal 2018, 2017 and 2016, respectively, from transactions with other operating segments. The Chicken segment had sales of $80 million, $60 million and $27 million for fiscal 2018, 2017 and 2016, 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, Walmart Inc., accounted for 17.3%, 17.3% and 17.5% of consolidated sales in fiscal 2018, 2017 and 2016, respectively. Sales to Walmart 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 99%, 98% and 98% of sales to external customers for fiscal 2018, 2017 and 2016, respectively, were sourced from the United States. Approximately $23.2 billion and $21.6 billion of long-lived assets were located in the United States at September 29, 2018, and September 30, 2017, respectively. Excluding goodwill and intangible assets, long-lived assets located in the United States totaled approximately $6.7 billion and $6.0 billion at September 29, 2018, and September 30, 2017, respectively. Approximately $212 million and $217 million of long-lived assets were located in foreign countries, primarily Brazil, China, the European Union and New Zealand at September 29, 2018, and September 30, 2017, respectively. Excluding goodwill and intangible assets, long-lived assets in foreign countries totaled approximately $201 million and $193 million at September 29, 2018, and September 30, 2017, 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 $4.2 billion, $3.9 billion and $3.5 billion for fiscal 2018, 2017 and 2016, 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 2018, 2017 and 2016.
v3.10.0.1
Supplemental Cash Flow Information
12 Months Ended
Sep. 29, 2018
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOWS INFORMATION
The following table summarizes cash payments for interest and income taxes:
 
 
 
 
 
in millions

 
2018

 
2017

 
2016

Interest, net of amounts capitalized
$
368

 
$
249

 
$
242

Income taxes, net of refunds
470

 
779

 
686

v3.10.0.1
Transactions With Related Parties
12 Months Ended
Sep. 29, 2018
Related Party Transaction, Due from (to) Related Party [Abstract]  
Transactions With Related Parties
TRANSACTIONS WITH RELATED PARTIES
We have operating leases for two wastewater facilities with an entity owned by the Donald J. Tyson Revocable Trust (for which Mr. John Tyson, Chairman of the Company, is a trustee), Berry Street Waste Water Treatment Plant, LP (90% of which is owned by the TLP), and the sisters of Mr. Tyson. Total payments of approximately $1 million in each of fiscal 2018, 2017 and 2016 were paid to lease the facilities.
As of September 29, 2018, the TLP, of which John Tyson and director Barbara Tyson are general partners, owned 70 million shares, or 99.985% of our outstanding Class B stock and, along with the members of the Tyson family, owned 6.2 million shares of Class A stock, giving it control of approximately 70.96% of the total voting power of our outstanding voting stock.
In August 2017, the Company committed to invest $5 million for a 17.5% equity interest in Buchan Ltd., a Mauritian private holding company of poultry operations in sub-Saharan Africa. Acacia Foods, B.V. is committed to invest $9 million in Buchan Ltd. Donnie Smith, who during the first quarter of fiscal year 2017 was Chief Executive Officer of the Company, serves as the Chairman of Acacia Foods, B.V. and as a director of Buchan Ltd. John Randal Tyson (son of John Tyson) serves as a director of Buchan Ltd. for the Company. We completed our funding commitment in fiscal 2018.
In fiscal 2018, the Company provided administrative services to the Tyson Limited Partnership, the beneficial owner of 70 million shares of Class B stock, and the Tyson Limited Partnership, through TLP Investment, L.P., reimbursed the Company $0.3 million.
v3.10.0.1
Commitments And Contingencies
12 Months Ended
Sep. 29, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES
Commitments
We lease equipment, properties and certain farms for which total rentals approximated $200 million, $186 million and $172 million, in fiscal 2018, 2017 and 2016, 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 September 29, 2018, were:
 
in millions

2019
$
128

2020
98

2021
62

2022
40

2023
29

2024 and beyond
61

Total
$
418


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 September 29, 2018, was $16 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 10 years. The maximum potential amount of the residual value guarantees is $91 million, all of which could be recoverable through various recourse provisions, including those based on the fair value of the underlying leased assets. The likelihood of material payments under these guarantees is not considered probable. At September 29, 2018, and September 30, 2017, 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 potential 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 September 29, 2018, was approximately $300 million. The total receivables under these programs were $6 million at September 29, 2018. There were no receivables under these programs at September 30, 2017. This receivable is 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 September 29, 2018, and September 30, 2017.
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 September 29, 2018, total amounts under these types of arrangements totaled $636 million.
We enter into agreements with growers that can have fixed and variable payment structures, but are generally cancelable and based on flocks placed with the growers. Grower commitments at September 29, 2018 were:
 
in millions

 
Grower Commitments

2019
$
198

2020
99

2021
93

2022
54

2023
38

2024 and beyond
98

Total
$
580


Additionally, we enter into other purchase commitments for various items such as grains and livestock contracts, which at September 29, 2018 were:
 
in millions

 
Other Purchase Commitments

2019
$
1,224

2020
732

2021
159

2022
57

2023
23

2024 and beyond
13

Total
$
2,208


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. Unless noted otherwise below, we believe the probability of a material loss beyond the amounts accrued to be remote; however, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the consolidated financial condition or results of operations. Listed below are certain claims made against the Company and/or our subsidiaries for which the potential exposure is considered material to the Company’s Consolidated Financial Statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters.
On September 2, 2016, Maplevale Farms, Inc., acting on 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. Subsequent to the filing of this initial complaint, additional lawsuits making similar claims on behalf of putative classes of direct and indirect purchasers were filed in the United States District Court for the Northern District of Illinois. The court consolidated the complaints, for pre-trial purposes, into actions on behalf of three different putative classes: direct purchasers, indirect purchasers/consumers and commercial/institutional indirect purchasers. These three actions are styled In re Broiler Chicken Antitrust Litigation. Several amended and consolidated complaints have been filed on behalf of each putative class. The currently operative complaints allege, among other things, that beginning in January 2008 the defendants conspired and combined to fix, raise, maintain, and stabilize the price of broiler chickens in violation of United States antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The complaints also allege that defendants “manipulated and artificially inflated a widely used Broiler price index, the Georgia Dock.” It is further alleged that the defendants concealed this conduct from the plaintiffs and the members of the putative classes. The plaintiffs are seeking treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees on behalf of the putative classes. The court issued a ruling on November 20, 2017 denying all defendants’ motions to dismiss. The litigation is currently in a discovery phase. Decisions on class certification and summary judgment motions likely to be filed by defendants are not expected before the latter part of calendar year 2020 under the scheduling order currently governing the case. Scheduling for trial, if necessary, will occur after rulings on class certification and any summary judgment motions. Certain putative class members have opted out of this matter and are proceeding separately, and others may do so in the future.
On March 1, 2017, we received a civil investigative demand ("CID") from the Office of the Attorney General, Department of Legal Affairs, of the State of Florida. The CID requests information primarily related to possible anticompetitive conduct in connection with the Georgia Dock, a chicken products pricing index formerly published by the Georgia Department of Agriculture. We have been cooperating with the Attorney General’s office.
On June 18, 2018, Wanda Duryea, Matthew Hosking, John McKee, Lisa Melegari, Michael Reilly, Sandra Steffan, Paul Glantz, Edwin Blakey, Jennifer Sullivan, Lisa Axelrod, Anbessa Tufa and Christina Hall, acting on behalf of themselves individually and on behalf of a putative plaintiff class consisting of all persons and entities who indirectly purchased pork, filed a class action complaint against us and certain of our pork subsidiaries, as well as several other pork processing companies, in the federal district court for the District of Minnesota. Subsequent to the filing of the initial complaint, additional lawsuits making similar claims on behalf of putative classes of direct and indirect purchasers were also filed in the same court. The complaints allege, among other things, that beginning in January 2009 the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork and pork products in violation of United States antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs are seeking treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees on behalf of the putative classes. The direct purchaser actions and indirect purchaser actions have been consolidated for pretrial purposes. On October 23, 2018, defendants filed motions to dismiss the complaints.
Our subsidiary, The Hillshire Brands Company (formerly named Sara Lee Corporation), is a party to a consolidation of cases filed by individual complainants with the Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission ("NLRC") from 1998 through July 1999. The complaint was filed against Aris Philippines, Inc., Sara Lee Corporation, Sara Lee Philippines, Inc., Fashion Accessories Philippines, Inc., and Attorney Cesar C. Cruz (collectively, the “respondents”). The complaint alleges, among other things, that the respondents engaged in unfair labor practices in connection with the termination of manufacturing operations in the Philippines in 1995 by Aris Philippines, Inc., a former subsidiary of The Hillshire Brands Company. In late 2004, a labor arbiter ruled against the respondents and awarded the complainants PHP3,453,664,710 (approximately U.S.$64 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 U.S.$6.3 million). Based in part on its finding that the consideration to be paid to the complainants as part of such settlement was insufficient, the Supreme Court of the Philippines denied the respondents’ settlement motion and all motions for reconsideration thereof. The Supreme Court of the Philippines also set aside as premature the NLRC’s December 2006 ruling. As a result, the cases were remanded back before the NLRC to rule on the merits of the case. On December 15, 2016, we learned that the NLRC rendered its decision on November 29, 2016, regarding the respondents’ appeals regarding the labor arbiter’s 2004 ruling in favor of the complainants. The NLRC increased the award for 4,922 of the total 5,984 complainants to PHP14,858,495,937 (approximately U.S. $275 million). However, the NLRC approved a prior settlement reached with the group comprising approximately 18% of the class of 5,984 complainants, pursuant to which The Hillshire Brands Company agreed to pay each settling complainant PHP68,000 (approximately U.S. $1,300). The settlement payment was made on December 21, 2016, to the NLRC, which is responsible for distributing the funds to each settling complainant. On December 27, 2016, the respondents filed motions for reconsideration with the NLRC asking that the award be set aside. The NLRC denied respondents' motions for reconsideration in a resolution received on May 5, 2017, and entered a judgment on the award on July 24, 2017. Each of Aris Philippines, Inc., Sara Lee Corporation and Sara Lee Philippines, Inc. appealed this award and sought an injunction to preclude enforcement of the award to the Philippines Court of Appeals. On November 23, 2017, the Court of Appeals granted a writ of preliminary injunction that precluded execution of the NLRC award during the pendency of the appeal. The Court of Appeals subsequently vacated the NLRC’s award on April 12, 2018. Complainants have filed motions for reconsideration with the Court of Appeals. If those motions are denied, the Court of Appeals’ decision nevertheless remains subject to appeal to the Supreme Court of the Philippines. We continue to maintain an accrual for this matter.
The Hillshire Brands Company was named as a defendant in an asbestos exposure case filed by Mark Lopez in May 2014 in the Superior Court of Alameda County, California. Mr. Lopez was diagnosed with mesothelioma in January 2014 and is now deceased. Mr. Lopez’s family members asserted negligence, premises liability and strict liability claims related to Mr. Lopez’s alleged asbestos exposure from 1954-1986 from the Union Sugar plant in Betteravia, California. The plant, which was sold in 1986, was owned by entities that were predecessors-in-interest to The Hillshire Brands Company. In August 2017, the jury returned a verdict of approximately $13 million in favor of the plaintiffs, and a judgment was entered. We have appealed the judgment and filed our initial appellate brief.
v3.10.0.1
Quarterly Financial Data (Unaudited)
12 Months Ended
Sep. 29, 2018
Quarterly Financial Data [Abstract]  
Quarterly Financial Data (Unaudited)
QUARTERLY FINANCIAL DATA (UNAUDITED)
 
 
 
in millions, except per share data
 
 
First
Quarter

 
Second
Quarter

 
Third
Quarter

 
Fourth
Quarter

2018
 
 
 
 
 
 
 
Sales
$
10,229

 
$
9,773

 
$
10,051

 
$
9,999

Gross profit
1,451

 
1,020

 
1,306

 
1,349

Operating income
927

 
498

 
802

 
828

Net income
1,632

 
316

 
542

 
537

Net income attributable to Tyson
1,631

 
315

 
541

 
537

 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A Basic
$
4.54

 
$
0.88

 
$
1.52

 
$
1.50

Class B Basic
$
4.09

 
$
0.78

 
$
1.37

 
$
1.35

Diluted
$
4.40

 
$
0.85

 
$
1.47

 
$
1.47

2017
 
 
 
 
 
 
 
Sales
$
9,182

 
$
9,083

 
$
9,850

 
$
10,145

Gross profit
1,483

 
1,047

 
1,202

 
1,351

Operating income
982

 
571

 
697

 
681

Net income
594

 
341

 
448

 
395

Net income attributable to Tyson
593

 
340

 
447

 
394

 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A Basic
$
1.64

 
$
0.95

 
$
1.24

 
$
1.10

Class B Basic
$
1.49

 
$
0.86

 
$
1.12

 
$
0.98

Diluted
$
1.59

 
$
0.92

 
$
1.21

 
$
1.07


First quarter fiscal 2018 net income included a $994 million post tax recognition of tax benefit from remeasurement of net deferred tax liabilities at lower enacted tax rates, $4 million pretax impairment charge net of a realized gain related to the divestiture of non-protein businesses and $19 million pretax restructuring and related charges.
Second quarter fiscal 2018 net income included a $9 million post tax recognition of tax benefit from remeasurement of net deferred tax liabilities at lower enacted tax rates, $75 million pretax impairment charge related to the divestiture of non-protein businesses, $109 million one-time cash bonus to frontline employees and $12 million pretax restructuring and related charges.
Third quarter fiscal 2018 net income included $14 million pretax restructuring and related charges.
Fourth quarter fiscal 2018 net income included a $11 million pretax realized gain related to the divestiture of a non-protein business and $14 million pretax restructuring and related charges.
Second quarter fiscal 2017 net income included a $52 million pretax impairment charge related to our San Diego Prepared Foods operation.
Third quarter fiscal 2017 net income included $77 million pretax expense from AdvancePierre purchase accounting and acquisition related costs, which included a $24 million purchase accounting adjustment for the amortization of the fair value step-up of inventory related to AdvancePierre, $35 million of acquisition related costs and $18 million of acquisition bridge financing fees.
Third quarter fiscal 2017 net income included a post tax $26 million recognition of tax benefit related to the expected sale of a non-protein business.
Fourth quarter fiscal 2017, net income included $150 million pretax restructuring and related charges, $45 million pretax impairment related to the expected sale of a non-protein business and $26 million pretax expense from AdvancePierre purchase accounting and acquisition related costs, which included $12 million purchase accounting adjustment for the amortization of the fair value step-up of inventory related to AdvancePierre and $14 million of acquisition related costs.
v3.10.0.1
Valuation And Qualifying Accounts
12 Months Ended
Sep. 29, 2018
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Valuation And Qualifying Accounts
FINANCIAL STATEMENT SCHEDULE
TYSON FOODS, INC.
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
Three Years Ended September 29, 2018
 
 
 
 
 
 
 
 
 
 
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:
 
 
 
 
 
 
 
 
 
 
2018
 
$
34

 
$
3

 
$

 
$
(18
)
 
$
19

2017
 
33

 
10

 

 
(9
)
 
34

2016
 
27

 
10

 

 
(4
)
 
33

Inventory Lower of Cost or Net Realizable Value Allowance:
 
 
 
 
 
 
 
 
 
 
2018
 
$
3

 
$
68

 
$

 
$
(46
)
 
$
25

2017
 
39

 
5

 

 
(41
)
 
3

2016
 
58

 
70

 

 
(89
)
 
39

Valuation Allowance on Deferred Tax Assets:
 
 
 
 
 
 
 
 
 
 
2018
 
$
75

 
$
12

 
$

 
$
(8
)
 
$
79

2017
 
72

 
4

 

 
(1
)
 
75

2016
 
68

 
10

 

 
(6
)
 
72

v3.10.0.1
Business And Summary Of Significant Accounting Policies (Policy)
12 Months Ended
Sep. 29, 2018
Accounting Policies [Abstract]  
Description Of Business
Description of Business: Tyson Foods, Inc. (collectively, “Company,” “we,” “us” or “our”), is one of the world's largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the Company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. We innovate continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do.
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 2018, fiscal 2017, and fiscal 2016.
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 September 29, 2018, and September 30, 2017, checks outstanding in excess of related book cash balances totaled approximately $220 million and $237 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 September 29, 2018, and September 30, 2017, our allowance for uncollectible accounts was $19 million and $34 million, respectively. We generally do not have collateral for our receivables, but we do periodically evaluate the credit worthiness of our customers.
Inventories
Inventories: Processed products, livestock and supplies and other are valued at the lower of cost or net realizable value. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
In fiscal 2018 and fiscal 2017, 63% of the cost of inventories was determined by the first-in, first-out ("FIFO") method. 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 generally 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 amortized using the straight-line method over 20 years or less. Customer relationships and supply arrangements are generally amortized over seven to 20 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 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 carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of goodwill.
We estimate the fair value of our reporting units using a combination of various valuation techniques, including an income approach (discounted cash flow analysis) and market approaches (earnings before interest, taxes, depreciation and amortization or "EBITDA" multiples of comparable publicly-traded companies and precedent transactions). Our primary technique is discounted cash flow analysis. These approaches use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy and requires us to make various judgmental assumptions about sales, operating margins, growth rates and discount rates which consider our budgets, business plans and economic projections, and are believed to reflect market participant views which would exist in an exit transaction. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period. 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, market EBITDA comparables 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, it could result in additional material impairments of our goodwill.
The discount rate used in our annual goodwill impairment test increased to 6.9% in fiscal 2018 from 6.7% in fiscal 2017.
During fiscal 2018, 2017 and 2016, the fair value of each of our material reporting units' exceeded its carrying value.
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. During fiscal 2018, 2017 and 2016, the fair value of each of our indefinite life intangible assets exceeded its carrying value. The discount rate used in our indefinite life intangible test increased to 8.2% in fiscal 2018 from 7.9% in fiscal 2017.
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.
Derivative 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. Changes in market value of derivatives used in our risk management activities surrounding inventories on hand or anticipated purchases of inventories are recorded in cost of sales. Changes in market value of derivatives used in our risk management activities related to interest rates are recorded in interest expense. 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.
Marketing, Promotion and Advertising Costs
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 costs 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 $243 million, $238 million and $238 million in fiscal 2018, 2017 and 2016, respectively.
Research And Development
Research and Development: Research and development costs are expensed as incurred. Research and development costs totaled $114 million, $113 million and $96 million in fiscal 2018, 2017 and 2016, 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 2018, the Financial Accounting Standards Board ("FASB") issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2020. Early adoption is permitted and should be applied prospectively to all qualified implementation costs incurred after the adoption date. We plan to adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In August 2017, the FASB issued guidance that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components excluded from the assessment. Some of the modifications include the ineffectiveness of derivative gain/loss in highly effective cash flow hedge to be recorded in Other Comprehensive Income, the change in fair value of derivative to be recorded in the same income statement line as the hedged item, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging on financial statement lines for components excluded from the assessment. The amendment also simplifies the application of hedge accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In May 2017, the FASB issued guidance that clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the prospective transition method should be applied to awards modified on or after the adoption date. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In March 2017, the FASB issued guidance that shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In March 2017, the FASB issued guidance that will change the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost will be included within the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost will be presented separately outside of operating income. Additionally, only the service cost component will be eligible for capitalization when applicable. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the retrospective transition method should be applied for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement, and the prospective transition method should be applied, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In November 2016, the FASB issued guidance which requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the retrospective transition method should be applied. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In October 2016, the FASB issued guidance which requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the modified retrospective transition method should be applied. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In August 2016, the FASB issued guidance that aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted and the retrospective transition method should be applied. We will adopt this guidance beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In June 2016, the FASB issued guidance that provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. Early adoption is permitted for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. The application of the guidance requires various transition methods depending on the specific amendment. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
In February 2016, the FASB issued guidance that created new accounting and reporting guidelines for leasing arrangements. The guidance requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The guidance also requires qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective method should be applied. While we are still evaluating the impact this guidance will have on our consolidated financial statements and related disclosures, we have completed our initial scoping reviews and have made progress in our assessment phase as we continue to identify our leasing processes that will be impacted by the new standard. We have also made progress in developing the policy elections we will make upon adoption and we are implementing software to meet the reporting requirements of this standard. We expect our financial statement disclosures will be expanded to present additional details of our leasing arrangements. Although we expect the impacts to be material, at this time, we are unable to reasonably estimate the expected increase in assets and liabilities on our consolidated balance sheets or the impacts to our consolidated financial statements upon adoption.
In January 2016, the FASB issued guidance that requires most equity investments be measured at fair value, with subsequent other changes in fair value recognized in net income. The guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements on the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. It should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, unless, equity securities do not have readily determinable fair values, in which case, the amendments should be applied prospectively. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In May 2014, the FASB issued guidance that changes the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. We will adopt this guidance using the modified retrospective transition method beginning in the first quarter of fiscal 2019. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements other than additional disclosure requirements.
v3.10.0.1
Business And Summary Of Significant Accounting Policies (Tables)
12 Months Ended
Sep. 29, 2018
Accounting Policies [Abstract]  
Inventories
The following table reflects the major components of inventory at September 29, 2018, and September 30, 2017:
 
 
 
in millions

 
2018

 
2017

Processed products
$
1,981

 
$
1,947

Livestock
1,006

 
874

Supplies and other
526

 
418

Total inventory
$
3,513

 
$
3,239

Other Current Liabilities
Other Current Liabilities: Other current liabilities at September 29, 2018, and September 30, 2017, include:
 
in millions
 
 
2018

 
2017

Accrued salaries, wages and benefits
$
549

 
$
673

Other
877

 
751

Total other current liabilities
$
1,426

 
$
1,424

v3.10.0.1
Acquisitions and Dispositions (Tables)
12 Months Ended
Sep. 29, 2018
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the purchase price allocation and fair values of the assets acquired and liabilities assumed at the acquisition date of AdvancePierre. During the first quarter of fiscal 2018, we recorded measurement period adjustments which decreased goodwill by $2 million, primarily related to updated information related to income taxes.
 
in millions
 
Cash and cash equivalents
 
$
126

Accounts receivable
 
80

Inventories
 
272

Other current assets
 
5

Property, Plant and Equipment
 
302

Goodwill
 
2,980

Intangible Assets
 
1,515

Current debt
 
(1,148
)
Accounts payable
 
(114
)
Other current liabilities
 
(97
)
Tax receivable agreement (TRA) due to former shareholders
 
(223
)
Long-Term Debt
 
(33
)
Deferred Income Taxes
 
(455
)
Other Liabilities
 
(3
)
Net assets acquired
 
$
3,207

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

Intangible Asset Category
 
Type
 
Life in Years
 
Fair Value
Brands & Trademarks
 
Amortizable
 
Weighted Average of 15 years
 
$
390

Customer Relationships
 
Amortizable
 
Weighted Average of 15 years
 
1,125

Total identifiable intangible assets
 
 
 
 
 
$
1,515

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)
 
 
 
2017

 
2016

Pro forma sales
 
$
39,330

 
$
38,406

Pro forma net income attributable to Tyson
 
1,837

 
1,686

Pro forma net income per diluted share attributable to Tyson
 
$
4.97

 
$
4.32

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
The following table summarizes the net assets and liabilities held for sale as of September 30, 2017:
 
in millions

 
September 30, 2017
Assets held for sale:
 
Accounts receivable, net
$
2

Inventories
109

Net Property, Plant and Equipment
192

Other current assets
1

Goodwill
312

Intangible Assets, net
191

Total assets held for sale
$
807

Liabilities held for sale:
 
Accounts payable
$
1

Other current liabilities
3

Total liabilities held for sale
$
4

v3.10.0.1
Property, Plant And Equipment (Tables)
12 Months Ended
Sep. 29, 2018
Property, Plant and Equipment, Net [Abstract]  
Schedule Of Property, Plant And Equipment And Accumulated Depreciation
The following table reflects major categories of property, plant and equipment and accumulated depreciation at September 29, 2018, and September 30, 2017:
 
in millions
 
 
2018

 
2017

Land
$
154

 
$
138

Building and leasehold improvements
4,115

 
3,878

Machinery and equipment
7,720

 
7,111

Land improvements and other
357

 
323

Buildings and equipment under construction
689

 
492

 
13,035

 
11,942

Less accumulated depreciation
6,866

 
6,374

Net property, plant and equipment
$
6,169

 
$
5,568

v3.10.0.1
Goodwill And Intangible Assets (Tables)
12 Months Ended
Sep. 29, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule Of Goodwill Activity
The following table reflects goodwill activity for fiscal 2018 and 2017:
in millions
 
 
Beef

 
Pork

 
Chicken

 
Prepared
Foods

 
Other(a)

 
Unallocated

 
Consolidated

Balance at October 1, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
1,236

 
$
423

 
$
1,565

 
$
4,005

 
$
57

 
$

 
$
7,286

Accumulated impairment losses
(560
)
 

 

 

 
(57
)
 

 
(617
)
 
$
676

 
$
423

 
$
1,565

 
$
4,005

 
$

 
$

 
$
6,669

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2017 Activity:

 

 

 

 

 

 

Acquisition
$

 
$

 
$

 
$

 
$

 
$
2,982

 
$
2,982

Reclass to assets held for sale

 

 

 
(327
)
 

 

 
(327
)
Balance at September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,236


423


1,565


3,678


57


2,982


9,941

Accumulated impairment losses
(560
)
 

 

 

 
(57
)
 

 
(617
)
 
$
676

 
$
423

 
$
1,565

 
$
3,678

 
$

 
$
2,982

 
$
9,324

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2018 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition
$

 
$

 
$
365

 
$
82

 
$

 
$

 
$
447

Measurement period adjustments

 

 

 

 

 
(2
)
 
(2
)
Allocation of acquired goodwill

 

 
568

 
2,412

 

 
(2,980
)
 

Reclass to assets held for sale

 

 

 
(30
)
 

 

 
(30
)
Balance at September 29, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
1,236


423


2,498


6,142


57




10,356

Accumulated impairment losses
(560
)
 

 

 

 
(57
)
 

 
(617
)

$
676

 
$
423

 
$
2,498

 
$
6,142

 
$

 
$

 
$
9,739


(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 September 29, 2018, and September 30, 2017:
in millions
 
 
2018

 
2017

Amortizable intangible assets:
 
 
 
Brands and trademarks
$
950

 
$
738

Customer relationships
1,793

 
1,639

Supply Arrangements
358



Patents, intellectual property and other
107

 
114

Land use rights
9

 
9

  Total gross amortizable intangible assets
$
3,217

 
$
2,500

     Less accumulated amortization
536

 
335

  Total net amortizable intangible assets
$
2,681

 
$
2,165

Brands and trademarks not subject to amortization
4,078

 
4,078

  Total intangible assets
$
6,759

 
$
6,243

v3.10.0.1
Restructuring and Related Charges (Tables)
12 Months Ended
Sep. 29, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs [Table Text Block]
The following table reflects the pretax impact of restructuring and related charges incurred in fiscal 2017 and 2018, the estimated charges in future years (primarily in fiscal 2019) and the total estimated program charges, by our reportable segments:
 
in millions

 
2017 charges

2018 charges

Estimated future charges

Total estimated Financial Fitness Program charges

Beef
$
8

$
4

$
6

$
18

Pork
3

1

3

7

Chicken
56

30

16

102

Prepared Foods
82

24

19

125

Other
1



1

Total restructuring and related charges, pretax
$
150

$
59

$
44

$
253

The following table reflects the pretax impact of restructuring and related charges in the Consolidated Statements of Income:
in millions
 
 
2018

2017

Cost of Sales
$

$
35

Selling, General and Administrative expenses
59

115

Total restructuring and related charges, pretax
$
59

$
150

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]
The following table reflects our liability related to restructuring which was recognized in other current liabilities in our Consolidated Balance Sheet as of September 29, 2018:
in millions

 
 
Liability as of September 30, 2017
Restructuring charges
Payments
Other
Liability as of September 29, 2018
Severance and employee related costs
$
47

$

$
37

$

$
10

Contract termination
22


21

1


Total
$
69

$

$
58

$
1

$
10



v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Sep. 29, 2018
Income Tax Disclosure [Abstract]  
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  

 
2018

 
2017

 
2016

Federal
$
(426
)
 
$
755

 
$
710

State
118

 
81

 
118

Foreign
26

 
14

 
(2
)
 
$
(282
)
 
$
850

 
$
826

 
 
 
 
 
 
Current
$
583

 
$
889

 
$
742

Deferred
(865
)
 
(39
)
 
84

 
$
(282
)
 
$
850

 
$
826

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:
 
2018

 
2017

 
2016

Federal income tax rate
24.5
 %
 
35.0
 %
 
35.0
 %
State income taxes
3.3

 
2.3

 
2.7

Domestic production deduction
(1.7
)
 
(3.1
)
 
(2.6
)
Impairment and sale of non-protein businesses
3.1

 

 

Impact of the Tax Act
(37.9
)
 

 

Other
(1.6
)
 
(1.9
)
 
(3.3
)
 
(10.3
)%
 
32.3
 %
 
31.8
 %
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 September 29, 2018, and September 30, 2017, are as follows:
 
 
 
 
 
 
 
in millions

 
2018
 
2017
 
Deferred Tax
 
Deferred Tax
 
Assets

 
Liabilities

 
Assets

 
Liabilities

Property, plant and equipment
$

 
$
714

 
$

 
$
900

Intangible assets

 
1,533

 

 
2,424

Accrued expenses
230

 

 
400

 

Net operating loss and other carryforwards
92

 

 
97

 

Other
98

 
193

 
204

 
273

 
$
420

 
$
2,440

 
$
701

 
$
3,597

Valuation allowance
$
(79
)
 
 
 
$
(75
)
 
 
Net deferred tax liability
 
 
$
2,099

 
 
 
$
2,971

Schedule Of Activity Related To Gross Unrecognized Tax Benefits
The following table summarizes the activity related to our gross unrecognized tax benefits at September 29, 2018September 30, 2017, and October 1, 2016:
 
 
 
 
 
in millions

 
2018

 
2017

 
2016

Balance as of the beginning of the year
$
316

 
$
305

 
$
306

Increases related to current year tax positions
19

 
38

 
35

Increases related to prior year tax positions
8

 
5

 
31

Increase related to AdvancePierre acquisition

 
9

 

Reductions related to prior year tax positions
(18
)
 
(27
)
 
(48
)
Reductions related to settlements
(8
)
 
(4
)
 
(7
)
Reductions related to expirations of statutes of limitations
(9
)
 
(10
)
 
(12
)
Balance as of the end of the year
$
308

 
$
316

 
$
305

v3.10.0.1
Debt (Tables)
12 Months Ended
Sep. 29, 2018
Debt Instruments [Abstract]  
Schedule Of Major Components Of Debt
The following table reflects major components of debt as of September 29, 2018, and September 30, 2017:
 
 
 
in millions

 
2018

 
2017

Revolving credit facility
$

 
$

Commercial Paper
605

 
778

Senior notes:
 
 
 
7.00% Notes due May 2018

 
120

Notes due May 2019 (2.76% at 09/29/2018)
300

 
300

2.65% Notes due August 2019
1,000

 
1,000

Notes due June 2020 (2.87% at 09/29/2018)
350

 
350

Notes due August 2020 (2.76% at 09/29/2018)
400

 
400

4.10% Notes due September 2020
281

 
282

2.25% Notes due August 2021
500

 
500

4.50% Senior notes due June 2022
1,000

 
1,000

3.90% Notes due September 2023 (2023 Notes)
400

 

3.95% Notes due August 2024
1,250

 
1,250

3.55% Notes due June 2027
1,350

 
1,350

7.00% Notes due January 2028
18

 
18

6.13% Notes due November 2032
161

 
162

4.88% Notes due August 2034
500

 
500

5.15% Notes due August 2044
500

 
500

4.55% Notes due June 2047
750

 
750

5.10% Notes due September 2048 (2048 Notes)
500

 

Discount on senior notes
(15
)
 
(15
)
Term loans:
 
 
 
Tranche B due August 2019

 
427

Tranche B due August 2020

 
500

Other
73

 
81

Unamortized debt issuance costs
(50
)
 
(50
)
Total debt
9,873

 
10,203

Less current debt
1,911

 
906

Total long-term debt
$
7,962

 
$
9,297

v3.10.0.1
Equity (Tables)
12 Months Ended
Sep. 29, 2018
Equity [Abstract]  
Schedule of Share Repurchases
A summary of cumulative share repurchases of our Class A stock for fiscal 2018, 2017 and 2016 is as follows:
 
 
 
 
 
 
 
 
 
 
in millions
 
 
 
September 29, 2018
 
September 30, 2017
 
October 1, 2016
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
4.9

 
$
350

 
12.5

 
$
797

 
30.8

 
$
1,868

To fund certain obligations under equity compensation plans
 
1.0

 
77

 
1.0

 
63

 
1.3

 
76

Total share repurchases
 
5.9

 
$
427

 
13.5

 
$
860

 
32.1

 
$
1,944

v3.10.0.1
Earnings Per Share (Tables)
12 Months Ended
Sep. 29, 2018
Earnings Per Share [Abstract]  
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
 
 
2018

 
2017

 
2016

Numerator:
 
 
 
 
 
Net income
$
3,027

 
$
1,778

 
$
1,772

Less: Net income (loss) attributable to noncontrolling interests
3

 
4

 
4

Net income attributable to Tyson
3,024

 
1,774

 
1,768

Less dividends declared:
 
 
 
 
 
Class A
378

 
285

 
192

Class B
80

 
61

 
41

Undistributed earnings
$
2,566

 
$
1,428

 
$
1,535

 
 
 
 
 
 
Class A undistributed earnings
$
2,115

 
$
1,177

 
$
1,279

Class B undistributed earnings
451

 
251

 
256

Total undistributed earnings
$
2,566

 
$
1,428

 
$
1,535

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Class A weighted average shares
295

 
296

 
315

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
4

 
4

 
5

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
369

 
370

 
390

 
 
 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
 
 
Class A Basic
$
8.44

 
$
4.94

 
$
4.67

Class B Basic
$
7.59

 
$
4.45

 
$
4.24

Diluted
$
8.19

 
$
4.79

 
$
4.53

Dividends Declared Per Share:
 
 
 
 
 
Class A
$
1.275

 
$
0.975

 
$
0.650

Class B
$
1.148

 
$
0.878

 
$
0.585

v3.10.0.1
Derivative Financial Instruments (Tables)
12 Months Ended
Sep. 29, 2018
Derivative [Line Items]  
Schedule Of Notional Amount Of Derivatives
We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
 
 
 
 
in millions, except soy meal tons
 
 
 
Metric
 
September 29, 2018

 
September 30, 2017

Commodity:
 
 
 
 
 
 
Corn
 
Bushels
 
112

 
55

Soy Meal
 
Tons
 
651,700

 
475,200

Live Cattle
 
Pounds
 
105

 
211

Lean Hogs
 
Pounds
 
39

 
240

Foreign Currency
 
United States dollar
 
$
89

 
$
58

Interest rate swap
 
Average monthly debt
 
$
400

 
$

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]  
Derivative [Line Items]  
Derivative Instruments, Gain (Loss)
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
 
 
2018

 
2017

 
2016

 
 
 
2018

 
2017

 
2016

Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(21
)
 
$
(3
)
 
$
(1
)
 
Cost of Sales
 
$
(12
)
 
$
(4
)
 
$
1

Interest rate swaps
1

 

 

 
Interest expense
 

 

 

Total
$
(20
)
 
$
(3
)
 
$
(1
)
 
 
 
$
(12
)
 
$
(4
)
 
$
1

Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]  
Derivative [Line Items]  
Derivative Instruments, Gain (Loss)
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
2018

 
2017

 
2016

Gain (Loss) on forwards
 
Cost of Sales
 
$
12

 
$
(20
)
 
$
89

Gain (Loss) on purchase contract
 
Cost of Sales
 
(12
)
 
20

 
(89
)
Not Designated as Hedging Instrument [Member]  
Derivative [Line Items]  
Derivative Instruments, Gain (Loss)
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
 
 
 
 
 
2018

 
2017

 
2016

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
Sales
 
$
18

 
$
111

 
$
(73
)
Commodity contracts
 
Cost of Sales
 
(33
)
 
(95
)
 
17

Foreign exchange contracts
 
Other Income/Expense
 
(3
)
 

 
2

Total
 
 
 
$
(18
)
 
$
16

 
$
(54
)
v3.10.0.1
Fair Value Measurements (Tables)
12 Months Ended
Sep. 29, 2018
Fair Value Disclosures [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values:
 
 
 
 
 
 
 
 
 
in millions

September 29, 2018
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Other Current Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$

 
$
2

 
$

 
$
(1
)
 
$
1

Undesignated

 
44

 

 
(19
)
 
25

Available for sale securities:
 
 
 
 
 
 
 
 
 
Current

 
1

 

 

 
1

Other assets:
 
 
 
 
 
 
 
 
 
Available for sale securities:
 
 
 
 
 
 
 
 
 
Non-current

 
46

 
51

 

 
97

Deferred compensation assets
21

 
295

 

 

 
316

Total assets
$
21

 
$
388

 
$
51

 
$
(20
)
 
$
440

 
 
 
 
 
 
 
 
 
 
Other Current Liabilities:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$

 
$
8

 
$

 
$
(8
)
 
$

Undesignated

 
35

 

 
(30
)
 
5

Total liabilities
$

 
$
43

 
$

 
$
(38
)
 
$
5

 
 
 
 
 
 
 
 
 
 
September 30, 2017
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Other Current Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$

 
$
10

 
$

 
$
(1
)
 
$
9

Undesignated

 
24

 

 
(3
)
 
21

Available for sale securities:
 
 
 
 
 
 
 
 
 
Current

 
2

 
1

 

 
3

Other Assets:
 
 
 
 
 
 
 
 
 
Available for sale securities:
 
 
 
 
 
 
 
 
 
Non-current

 
45

 
50

 

 
95

Deferred Compensation assets
23

 
272

 

 

 
295

Total assets
$
23

 
$
353

 
$
51

 
$
(4
)
 
$
423

 
 
 
 
 
 
 
 
 
 
Other Current Liabilities:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$

 
$
9

 
$

 
$
(9
)
 
$

Undesignated

 
21

 

 
(17
)
 
4

Total liabilities
$

 
$
30

 
$

 
$
(26
)
 
$
4

(a)
Our derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at September 29, 2018, and September 30, 2017, we had $18 million and $22 million, respectively, of cash collateral posted with various counterparties where master netting arrangements exist 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 marketable debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3):
 
 
 
in millions

 
September 29, 2018

 
September 30, 2017

Balance at beginning of year
$
51

 
$
57

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

 

Included in other comprehensive income (loss)
(1
)
 
(1
)
Purchases
20

 
13

Issuances

 

Settlements
(19
)
 
(18
)
Balance at end of year
$
51

 
$
51

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
The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):
 
 
 
 
 
 
 
 
 
in millions
 
 
September 29, 2018
 
September 30, 2017
 
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
$
48

 
$
47

 
$
(1
)
 
$
47

 
$
47

 
$

Corporate and Asset-Backed
52

 
51

 
(1
)
 
51

 
51

 

 
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
 
 
September 29, 2018
 
September 30, 2017
 
Fair
Value

 
Carrying
Value

 
Fair
Value

 
Carrying
Value

Total Debt
$
9,775

 
$
9,873

 
$
10,591

 
$
10,203

v3.10.0.1
Stock-Based Compensation (Tables)
12 Months Ended
Sep. 29, 2018
Share-based Compensation [Abstract]  
Schedule Of Summary Of Stock Options
 
Shares Under
Option

 
Weighted
Average Exercise
Price Per Share

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

Outstanding, September 30, 2017
7,547,518

 
$
40.54

 
 
 
 
Exercised
(2,615,963
)
 
38.67

 
 
 
 
Forfeited or expired
(120,897
)
 
60.80

 
 
 
 
Granted
1,183,490

 
78.16

 
 
 
 
Outstanding, September 29, 2018
5,994,148

 
48.37

 
6.7
 
$
88

 
 
 
 
 
 
 
 
Exercisable, September 29, 2018
3,793,715

 
$
37.63

 
5.6
 
$
84

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.
 
2018

 
2017

 
2016

Expected life (in years)
5.9

 
5.4

 
6.4

Risk-free interest rate
2.1
%
 
1.8
%
 
1.6
%
Expected volatility
23.5
%
 
24.7
%
 
24.8
%
Expected dividend yield
1.5
%
 
1.3% - 1.4%

 
1.2% - 2.6%

Schedule Of Summary Of Restricted Stock
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, September 30, 2017
1,715,100

 
$
51.21

 
 
 
 
Granted
545,015

 
77.25

 
 
 
 
Dividends
27,033

 
61.37

 
 
 
 
Vested
(608,371
)
 
45.02

 
 
 
 
Forfeited
(178,801
)
 
56.94

 
 
 
 
Nonvested, September 29, 2018
1,499,976

 
$
62.68

 
1.3
 
$
89

Schedule Of Summary Of Performance-Based Shares
The following table summarizes the performance-based shares at the maximum award amounts based upon the respective performance share agreements. Actual shares that will vest depend on the level of attainment of the performance-based criteria.
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

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

Nonvested, September 30, 2017
2,157,115

 
$
38.92

 
 
 
 
Granted
668,246

 
62.92

 
 
 
 
Vested
(396,468
)
 
27.95

 
 
 
 
Forfeited
(232,594
)
 
46.40

 
 
 
 
Nonvested, September 29, 2018
2,196,299

 
$
47.41

 
1.0
 
$
131

v3.10.0.1
Pensions And Other Postretirement Benefits (Tables)
12 Months Ended
Sep. 29, 2018
Retirement Benefits, Description [Abstract]  
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 September 29, 2018, and September 30, 2017:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
1,477

 
$
1,554

 
$
230

 
$
222

 
$
33

 
$
36

Service cost

 
2

 
7

 
11

 
1

 
1

Interest cost
55

 
57

 
8

 
8

 
1

 
1

Curtailment

 

 
(5
)
 

 

 

Plan amendments

 

 
5

 

 

 

Actuarial (gain)/loss
(60
)
 
(52
)
 
(10
)
 
1

 
(5
)
 
(1
)
Benefits paid
(80
)
 
(84
)
 
(15
)
 
(12
)
 
(2
)
 
(4
)
Benefit obligation at end of year
1,392

 
1,477

 
220

 
230

 
28

 
33

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
1,512

 
1,440

 

 

 

 

Actual return on plan assets
4

 
115

 

 

 

 

Employer contributions
14

 
41

 
15

 
12

 
2

 
4

Benefits paid
(80
)
 
(84
)
 
(15
)
 
(12
)
 
(2
)
 
(4
)
Fair value of plan assets at end of year
1,450

 
1,512

 

 

 

 

Funded status
$
58

 
$
35

 
$
(220
)
 
$
(230
)
 
$
(28
)
 
$
(33
)
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
 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Other assets
$
61

 
$
44

 
$

 
$

 
$

 
$

Other current liabilities
(3
)
 

 
(12
)
 
(11
)
 
(3
)
 
(3
)
Other liabilities

 
(9
)
 
(208
)
 
(219
)
 
(25
)
 
(30
)
Total assets (liabilities)
$
58

 
$
35

 
$
(220
)
 
$
(230
)
 
$
(28
)
 
$
(33
)
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
 
2018

 
2017

 
2018

 
2017

 
2018

 
2017

Accumulated other comprehensive (income)/loss:
 
 
 
 
 
 
 
 
 
 
 
   Actuarial (gain) loss
$
(96
)
 
$
(94
)
 
$
31

 
$
50

 
$

 
$

   Prior service (credit) cost (a)

 

 
5

 

 
(49
)
 
(73
)
Total accumulated other comprehensive (income)/loss:
$
(96
)
 
$
(94
)
 
$
36

 
$
50

 
$
(49
)
 
$
(73
)
(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
 
2018

 
2017

 
2018

 
2017

Projected benefit obligation
$
49

 
$
361

 
$
220

 
$
230

Accumulated benefit obligation
49

 
361

 
219

 
220

Fair value of plan assets
45

 
352

 

 

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
 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

Service cost
$

 
$
2

 
$
8

 
$
7

 
$
11

 
$
6

 
$
1

 
$
1

 
$
1

Interest cost
55

 
57

 
65

 
8

 
8

 
9

 
1

 
1

 
3

Expected return on plan assets
(62
)
 
(59
)
 
(65
)
 

 

 

 

 

 

Amortization of prior service cost
1

 

 

 
1

 

 

 
(25
)
 
(25
)
 
(20
)
Recognized actuarial loss (gain), net

 
1

 
2

 
3

 
6

 
5

 
(5
)
 
(1
)
 
(15
)
Recognized settlement loss (gain)

 
2

 
(12
)
 

 

 

 

 

 

Net periodic benefit cost (credit)
$
(6
)
 
$
3

 
$
(2
)
 
$
19

 
$
25

 
$
20

 
$
(28
)
 
$
(24
)
 
$
(31
)
Schedule Of Weighted Average Assumptions
Weighted average assumptions are as follows:
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

 
2018

 
2017

 
2016

Discount rate to determine net periodic benefit cost
3.85
%
 
3.72
%
 
4.47
%
 
3.88
%
 
3.77
%
 
4.41
%
 
3.39
%
 
3.09
%
 
3.54
%
Discount rate to determine benefit obligations
4.26
%
 
3.85
%
 
3.72
%
 
4.31
%
 
3.88
%
 
3.77
%
 
4.11
%
 
3.39
%
 
3.09
%
Rate of compensation increase
n/a

 
n/a

 
n/a

 
2.53
%
 
2.44
%
 
2.46
%
 
n/a

 
n/a

 
n/a

Expected return on plan assets
4.20
%
 
4.21
%
 
4.15
%
 
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 Categories Of Pension Plan Assets And Level Under Which Fair Values Were Determined In Fair Value Hierarchy
The following tables show the categories of pension plan assets and the level under which fair values were determined in the fair value hierarchy, which is described in Note 13: Fair Value Measurements.
 
in millions
 
September 29, 2018
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
12

 
$

 
$

 
$
12

Insurance contract at contract value (a)

 

 
30

 
30

Total assets in fair value hierarchy
$
12

 
$

 
$
30

 
$
42

Investments measured at net asset value:
 
 
 
 
 
 
 
Common collective trusts (b)
 
 
 
 
 
 
1,408

Total plan assets
 
 
 
 
 
 
$
1,450

 
in millions
 
September 30, 2017
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
15

 
$

 
$

 
$
15

Insurance contract at contract value (a)

 

 
28

 
28

Total assets in fair value hierarchy
$
15

 
$

 
$
28

 
$
43

Investments measured at net asset value:
 
 
 
 
 
 
 
Common collective trusts (b)
 
 
 
 
 
 
1,469

Total plan assets
 
 
 
 
 
 
$
1,512

(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 Assets and Other Liabilities in the Consolidated Balance Sheets.
The following table sets forth the actual and target asset allocation for pension plan assets:
 
2018

 
2017

 
Target Asset
Allocation

Cash
0.9
%
 
1.1
%
 
%
Fixed income securities
99.1

 
87.4

 
100.0

United States stock funds

 
3.5

 

International stock funds

 
5.6

 

Real estate

 
2.4

 

Total
100.0
%
 
100.0
%
 
100.0
%
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

September 30, 2017
 
$
28

 
$
28

Actual return on plan assets:
 
 
 


Assets still held at reporting date
 
2

 
2

Assets sold during the period
 

 

Purchases, sales and settlements, net
 

 

Transfers in and/or out of Level 3
 

 

September 29, 2018
 
$
30

 
$
30

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
2019
$
122

 
$
12

 
$
3

2020
79

 
12

 
3

2021
80

 
13

 
3

2022
81

 
13

 
3

2023
82

 
14

 
2

2024-2028
417

 
69

 
11


The above benefit payments for other postretirement benefit plans are not expected to be offset by Medicare Part D subsidies in fiscal 2019.
The above 2019 benefit payments include anticipated payments for a plan termination within two of our qualified pension plans. The plan termination process for these plans began on April, 30, 2017, and full settlement is expected to occur in the first quarter of fiscal 2019.
The above 2020 benefit payments do not include anticipated accelerated payments for a plan termination within three of our qualified pension plans. The plan termination process for one of these plans began on October 1, 2018 and for the remaining two plans is expected to begin December 31, 2018, and full settlement is expected to occur in fiscal 2020.
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
 
2018
 
2017
 
Implemented
2018
2017
2016
 
2018
 
Expiration Date of Collective Bargaining Agreement(a)
Bakery and Confectionery Union and Industry International Pension Fund
52-6118572/001
 
Red
 
Red
 
Nov 2012
 
$2
$2
$1
 
10%
 
October 2015

(a) Renewal negotiations are in progress.
v3.10.0.1
Comprehensive Income (Loss) (Tables)
12 Months Ended
Sep. 29, 2018
Statement of Comprehensive Income [Abstract]  
Schedule Of Components Of Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive loss are as follows:
 
 
 
in millions

 
2018(1)

 
2017

Accumulated other comprehensive income (loss), net of taxes:
 
 
 
Unrealized net hedging loss
$
(9
)
 
$
(2
)
Unrealized net loss on investments
(1
)
 

Currency translation adjustment
(84
)
 
(53
)
Postretirement benefits reserve adjustments
79

 
71

Total accumulated other comprehensive income (loss)
$
(15
)
 
$
16


(1) Includes reclass from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act, following adoption of the applicable new accounting standard. Refer to Part II, Item 8, Notes to Consolidated Financial Statements, Note 2: Changes in Accounting Principles.
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
 
 
 
2018
 
2017
 
2016
 
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to interest expense
 
$

$

$

 
$

$

$

 
$

$

$

(Gain) loss reclassified to cost of sales
 
12

(4
)
8

 
4

(2
)
2

 
(1
)
1


Unrealized gain (loss)
 
(20
)
5

(15
)
 
(3
)
1

(2
)
 
(1
)

(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
(2
)
1

(1
)
 
(1
)

(1
)
 
(1
)
1


 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
 
 
 
 
Translation adjustment
 
(38
)
2

(36
)
 
6


6

 
5

(1
)
4

Translation loss reclassified to cost of sales
 
7


7

 



 



 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits
 
(8
)
1

(7
)
 
91

(35
)
56

 
67

(25
)
42

Total other comprehensive income (loss)
 
$
(49
)
$
5

$
(44
)
 
$
97

$
(36
)
$
61

 
$
69

$
(24
)
$
45

v3.10.0.1
Segment Reporting (Tables)
12 Months Ended
Sep. 29, 2018
Segment Reporting [Abstract]  
Schedule Of Segment Reporting Information, By Segment
Information on segments and a reconciliation to income from continuing operations before income taxes are as follows:
 
in millions
 
 
Beef

 
Pork

 
Chicken

 
Prepared
Foods

 
Other

 
Intersegment
Sales

 
Consolidated

Fiscal 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
15,473

 
$
4,879

 
$
12,044

 
$
8,668

 
$
305

 
$
(1,317
)
 
$
40,052

Operating Income (Loss)
1,013

 
361

 
866

 
868

 
(53
)
 
 
 
3,055

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
310

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,745

Depreciation and amortization
103

 
42

 
368

 
410

 
10

 
 
 
933

Total Assets
3,061

 
1,265

 
8,794

 
15,063

 
926

 
 
 
29,109

Additions to property, plant and equipment
107

 
150

 
570

 
228

 
145

 
 
 
1,200

Fiscal 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
14,823

 
$
5,238

 
$
11,409

 
$
7,853

 
$
349

 
$
(1,412
)
 
$
38,260

Operating Income (Loss)
877

 
645

 
1,053

 
462

 
(106
)
 
 
 
2,931

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
303

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,628

Depreciation and amortization
92

 
36

 
296

 
315

 
9

 
 
 
748

Total Assets
2,938

 
1,132

 
6,630

 
13,466

 
3,900

 
 
 
28,066

Additions to property, plant and equipment
118

 
101

 
492

 
229

 
129

 
 
 
1,069

Fiscal 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
14,513

 
$
4,909

 
$
10,927

 
$
7,346

 
$
380

 
(1,194
)
 
$
36,881

Operating Income (Loss)
347

 
528

 
1,305

 
734

 
(81
)
 
 
 
2,833

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
235

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,598

Depreciation and amortization
94

 
33

 
274

 
286

 
10

 
 
 
697

Total Assets
2,764

 
1,039

 
5,836

 
11,814

 
920

 
 
 
22,373

Additions to property, plant and equipment
99

 
68

 
281

 
178

 
69

 
 
 
695

v3.10.0.1
Supplemental Cash Flow Information (Tables)
12 Months Ended
Sep. 29, 2018
Supplemental Cash Flow Information [Abstract]  
Schedule Of Cash Payments For Interest And Income Taxes
The following table summarizes cash payments for interest and income taxes:
 
 
 
 
 
in millions

 
2018

 
2017

 
2016

Interest, net of amounts capitalized
$
368

 
$
249

 
$
242

Income taxes, net of refunds
470

 
779

 
686

v3.10.0.1
Commitments And Contingencies (Tables)
12 Months Ended
Sep. 29, 2018
Commitments and Contingencies Disclosure [Abstract]  
Schedule Of Minimum Lease Commitments Under Non-Cancelable Leases
Minimum lease commitments under non-cancelable leases at September 29, 2018, were:
 
in millions

2019
$
128

2020
98

2021
62

2022
40

2023
29

2024 and beyond
61

Total
$
418

Other Commitments [Table Text Block]
We enter into agreements with growers that can have fixed and variable payment structures, but are generally cancelable and based on flocks placed with the growers. Grower commitments at September 29, 2018 were:
 
in millions

 
Grower Commitments

2019
$
198

2020
99

2021
93

2022
54

2023
38

2024 and beyond
98

Total
$
580

Schedule Of Future Purchase Commitments
Additionally, we enter into other purchase commitments for various items such as grains and livestock contracts, which at September 29, 2018 were:
 
in millions

 
Other Purchase Commitments

2019
$
1,224

2020
732

2021
159

2022
57

2023
23

2024 and beyond
13

Total
$
2,208

v3.10.0.1
Quarterly Financial Data (Unaudited) (Tables)
12 Months Ended
Sep. 29, 2018
Quarterly Financial Data [Abstract]  
Schedule Of Quarterly Financial Information
 
 
 
in millions, except per share data
 
 
First
Quarter

 
Second
Quarter

 
Third
Quarter

 
Fourth
Quarter

2018
 
 
 
 
 
 
 
Sales
$
10,229

 
$
9,773

 
$
10,051

 
$
9,999

Gross profit
1,451

 
1,020

 
1,306

 
1,349

Operating income
927

 
498

 
802

 
828

Net income
1,632

 
316

 
542

 
537

Net income attributable to Tyson
1,631

 
315

 
541

 
537

 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A Basic
$
4.54

 
$
0.88

 
$
1.52

 
$
1.50

Class B Basic
$
4.09

 
$
0.78

 
$
1.37

 
$
1.35

Diluted
$
4.40

 
$
0.85

 
$
1.47

 
$
1.47

2017
 
 
 
 
 
 
 
Sales
$
9,182

 
$
9,083

 
$
9,850

 
$
10,145

Gross profit
1,483

 
1,047

 
1,202

 
1,351

Operating income
982

 
571

 
697

 
681

Net income
594

 
341

 
448

 
395

Net income attributable to Tyson
593

 
340

 
447

 
394

 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A Basic
$
1.64

 
$
0.95

 
$
1.24

 
$
1.10

Class B Basic
$
1.49

 
$
0.86

 
$
1.12

 
$
0.98

Diluted
$
1.59

 
$
0.92

 
$
1.21

 
$
1.07

v3.10.0.1
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
Sep. 29, 2018
Sep. 30, 2017
Inventory Disclosure [Abstract]    
Processed products $ 1,981 $ 1,947
Livestock 1,006 874
Supplies and other 526 418
Total inventory $ 3,513 $ 3,239
v3.10.0.1
Business and Summary of Significant Accounting Policies Business and Summary of Significant Accounting Policies (Other Current Liabilities) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Other Liabilities, Current [Abstract]    
Accrued salaries, wages and benefits $ 549 $ 673
Other 877 751
Total other current liabilities $ 1,426 $ 1,424
v3.10.0.1
Business And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Accounting Policies [Line Items]      
Checks outstanding in excess of related book cash $ 220 $ 237  
Allowance for uncollectible accounts $ 19 34  
Percentage of FIFO Inventory 63.00%    
Maximum length of time hedged anticipated transactions 18 months    
Research and development costs $ 114 113 $ 96
Selling, General and Administrative Expenses [Member]      
Accounting Policies [Line Items]      
Advertising Expense $ 243 $ 238 $ 238
Measurement Input, Discount Rate [Member] | Indefinite-lived Intangible Assets [Member]      
Accounting Policies [Line Items]      
Annual Indefinite Life Intangible Test, Discount Rate 8.20% 7.90%  
Measurement Input, Discount Rate [Member] | Goodwill [Member]      
Accounting Policies [Line Items]      
Annual Goodwill Impairment Test, Discount Rate 6.90% 6.70%  
Minimum [Member] | Customer Relationships [Member]      
Accounting Policies [Line Items]      
Finite-Lived Intangible Asset, Useful Life 7 years    
Maximum [Member] | Brands & Trademarks      
Accounting Policies [Line Items]      
Finite-Lived Intangible Asset, Useful Life 20 years    
Maximum [Member] | Customer Relationships [Member]      
Accounting Policies [Line Items]      
Finite-Lived Intangible Asset, Useful Life 20 years    
Buildings And Leasehold Improvements [Member] | Minimum [Member]      
Accounting Policies [Line Items]      
Property, plant, and equipment estimated lives 10 years    
Buildings And Leasehold Improvements [Member] | Maximum [Member]      
Accounting Policies [Line Items]      
Property, plant, and equipment estimated lives 33 years    
Machinery And Equipment [Member] | Minimum [Member]      
Accounting Policies [Line Items]      
Property, plant, and equipment estimated lives 3 years    
Machinery And Equipment [Member] | Maximum [Member]      
Accounting Policies [Line Items]      
Property, plant, and equipment estimated lives 12 years    
Land Improvements [Member] | Minimum [Member]      
Accounting Policies [Line Items]      
Property, plant, and equipment estimated lives 3 years    
Land Improvements [Member] | Maximum [Member]      
Accounting Policies [Line Items]      
Property, plant, and equipment estimated lives 20 years    
v3.10.0.1
Changes In Accounting Principles Recently Issued Accounting Pronouncements (Details)
$ in Millions
Sep. 29, 2018
USD ($)
New Accounting Pronouncement, Early Adoption, Effect [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Cumulative Effect of New Accounting Principle in Period of Adoption $ 13
v3.10.0.1
Acquisitions and Dispositions Preliminary Fair Value of Assets Acquired and Liabilities Assumes at Acquisition Date (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Jun. 07, 2017
Oct. 01, 2016
Business Acquisition [Line Items]          
Goodwill, Purchase Accounting Adjustments   $ 2      
Goodwill   $ 9,739 $ 9,324   $ 6,669
AdvancePierre [Member]          
Business Acquisition [Line Items]          
Goodwill, Purchase Accounting Adjustments $ 2        
Cash and cash equivalents       $ 126  
Accounts receivable       80  
Inventories       272  
Other current assets       5  
Property, Plant and Equipment       302  
Goodwill       2,980  
Intangible Assets       1,515  
Current debt       (1,148)  
Accounts payable       (114)  
Other current liabilities       (97)  
Tax receivable agreement (TRA) due to former shareholders       (223)  
Long-Term Debt       (33)  
Deferred Income Taxes       (455)  
Other Liabilities       (3)  
Net assets acquired       $ 3,207  
v3.10.0.1
Acquisitions and Dispositions Schedule of Intangible Assets Acquired as Part of Business Combination (Details) - AdvancePierre [Member]
$ in Millions
Jun. 07, 2017
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Total identifiable intangible assets $ 1,515
Brands & Trademarks  
Acquired Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 15 years
Finite-lived Intangible Assets Acquired $ 390
Customer Relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Finite-Lived Intangible Asset, Useful Life 15 years
Finite-lived Intangible Assets Acquired $ 1,125
v3.10.0.1
Acquisitions and Dispositions Acquisitions Pro Forma Information (Details) - AdvancePierre [Member] - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Sep. 30, 2017
Oct. 01, 2016
Business Acquisition [Line Items]    
Pro forma sales $ 39,330 $ 38,406
Pro forma net income attributable to Tyson $ 1,837 $ 1,686
Pro forma net income per diluted share attributable to Tyson $ 4.97 $ 4.32
v3.10.0.1
Acquisitions and Dispositions Summary of Net Assets Held for Sale (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Total assets held for sale $ 0 $ 807
Total liabilities held for sale $ 0 4
Non-Protein Business [Member]    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Accounts receivable, net   2
Inventories   109
Net Property, Plant and Equipment   192
Other current assets   1
Goodwill   312
Intangible Assets, net   191
Total assets held for sale   807
Accounts payable   1
Other current liabilities   3
Total liabilities held for sale   $ 4
v3.10.0.1
Acquisitions (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Aug. 20, 2018
Aug. 17, 2018
Jun. 04, 2018
Nov. 10, 2017
Jun. 07, 2017
Mar. 31, 2018
Dec. 30, 2017
Sep. 30, 2017
Jul. 01, 2017
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Business Acquisition [Line Items]                        
Goodwill               $ 9,324   $ 9,739 $ 9,324 $ 6,669
Goodwill, Purchase Accounting Adjustments                   2    
Prepared Foods [Member]                        
Business Acquisition [Line Items]                        
Goodwill               3,678   6,142 3,678 4,005
Goodwill, Purchase Accounting Adjustments                   0    
Chicken [Member]                        
Business Acquisition [Line Items]                        
Goodwill               1,565   2,498 1,565 $ 1,565
Goodwill, Purchase Accounting Adjustments                   $ 0    
American Protein [Member]                        
Business Acquisition [Line Items]                        
Consideration Transferred $ 866                      
Net Working Capital 71                      
Property, Plant and Equipment 155                      
Intangible Assets 411                      
Goodwill 242                      
Other Liabilities 13                      
Goodwill, Expected Tax Deductible Amount 242                      
American Protein [Member] | Supply Network [Member]                        
Business Acquisition [Line Items]                        
Finite-lived Intangible Assets Acquired $ 358                      
Finite-Lived Intangible Asset, Useful Life 14 years                      
American Protein [Member] | Customer Relationships [Member]                        
Business Acquisition [Line Items]                        
Finite-lived Intangible Assets Acquired $ 51                      
Finite-Lived Intangible Asset, Useful Life 12 years                      
Keystone Foods [Member]                        
Business Acquisition [Line Items]                        
Contingent Consideration, Amount   $ 2,160                    
Tecumseh Poultry [Member]                        
Business Acquisition [Line Items]                        
Consideration Transferred     $ 382                  
Net Working Capital     13                  
Property, Plant and Equipment     49                  
Intangible Assets     227                  
Goodwill     94                  
Cash and cash equivalents     1                  
Goodwill, Expected Tax Deductible Amount     94                  
Tecumseh Poultry [Member] | Brands & Trademarks                        
Business Acquisition [Line Items]                        
Finite-lived Intangible Assets Acquired     $ 193                  
Finite-Lived Intangible Asset, Useful Life     20 years                  
Original Philly [Member]                        
Business Acquisition [Line Items]                        
Consideration Transferred       $ 226                
Net Working Capital       21                
Property, Plant and Equipment       13                
Intangible Assets       90                
Goodwill       112                
Goodwill, Purchase Accounting Adjustments           $ 1            
Cash and cash equivalents       10                
Goodwill, Expected Tax Deductible Amount       111                
Original Philly [Member] | Prepared Foods [Member]                        
Business Acquisition [Line Items]                        
Goodwill       82                
Original Philly [Member] | Chicken [Member]                        
Business Acquisition [Line Items]                        
Goodwill       $ 29                
AdvancePierre [Member]                        
Business Acquisition [Line Items]                        
Consideration Transferred         $ 3,200              
Property, Plant and Equipment         302              
Intangible Assets         1,515              
Goodwill         2,980              
Goodwill, Purchase Accounting Adjustments             $ 2          
Cash and cash equivalents         $ 126              
Consideration Transferred, Per Share of Common Stock         $ 40.25              
Goodwill, Expected Tax Deductible Amount         $ 163              
AdvancePierre [Member] | Acquisition-related Costs [Member]                        
Business Acquisition [Line Items]                        
Business acquisition, Pro Forma Information, Transaction Related Expenses Incurred by Acquiree included in Pro Forma Results                     84  
Transaction Costs         67              
AdvancePierre [Member] | Fair Value Adjustment to Inventory [Member]                        
Business Acquisition [Line Items]                        
Business Acquisition, Fair Value Inventory Adjustment               $ 12 $ 24   $ 36  
AdvancePierre [Member] | Prepared Foods [Member]                        
Business Acquisition [Line Items]                        
Goodwill         2,412              
AdvancePierre [Member] | Chicken [Member]                        
Business Acquisition [Line Items]                        
Goodwill         568              
AdvancePierre [Member] | Customer Relationships [Member]                        
Business Acquisition [Line Items]                        
Finite-lived Intangible Assets Acquired         $ 1,125              
Finite-Lived Intangible Asset, Useful Life         15 years              
AdvancePierre [Member] | Brands & Trademarks                        
Business Acquisition [Line Items]                        
Finite-lived Intangible Assets Acquired         $ 390              
Finite-Lived Intangible Asset, Useful Life         15 years              
v3.10.0.1
Dispositions (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
Mar. 31, 2018
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Sep. 02, 2018
Jul. 30, 2018
Dec. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Gain on disposition of Business       $ 42 $ 0 $ 0      
Asset Impairment Charges       175 214 $ 45      
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Non-Protein Business [Member]                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Gain on disposition of Business $ 11                
Asset Impairment Charges   $ 75 $ 45            
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Non-Protein Business [Member] | Prepared Foods [Member] | Cost of Sales [Member]                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Asset Impairment Charges       101 $ 45        
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Kettle Business [Member] | Prepared Foods [Member]                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Disposal Group, Including Discontinued Operation, Consideration                 $ 125
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Kettle Business [Member] | Prepared Foods [Member] | Cost of Sales [Member]                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Gain on disposition of Business       22          
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Sara Lee® Frozen Bakery and Van’s® businesses [Member] | Prepared Foods [Member]                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Disposal Group, Including Discontinued Operation, Consideration               $ 623  
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Sara Lee® Frozen Bakery and Van’s® businesses [Member] | Prepared Foods [Member] | Cost of Sales [Member]                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Gain on disposition of Business       11          
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | TNT Crust [Member] | Prepared Foods [Member]                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Disposal Group, Including Discontinued Operation, Consideration             $ 57    
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | TNT Crust [Member] | Prepared Foods [Member] | Cost of Sales [Member]                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Gain on disposition of Business       $ 9          
v3.10.0.1
Property, Plant And Equipment (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 13,035 $ 11,942
Less accumulated depreciation 6,866 6,374
Net property, plant and equipment 6,169 5,568
Amount required to complete construction of buildings and equipment under construction 1,832  
Land [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 154 138
Buildings And Leasehold Improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 4,115 3,878
Machinery And Equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 7,720 7,111
Land Improvements And Other [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 357 323
Buildings And Equipment Under Construction [Member]    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 689 $ 492
v3.10.0.1
Goodwill And Intangible Assets (Goodwill Activity) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Goodwill [Roll Forward]      
Goodwill, beginning of period $ 9,941 $ 7,286  
Accumulated impairment losses (617) (617) $ (617)
Goodwill, net 9,739 9,324 6,669
Acquisition 447 2,982  
Goodwill, Written off Related to Sale of Business Unit (30) (327)  
Measurement period adjustments (2)    
Allocation of acquired goodwill 0    
Goodwill, end of period 10,356 9,941  
Beef [Member]      
Goodwill [Roll Forward]      
Goodwill, beginning of period 1,236 1,236  
Accumulated impairment losses (560) (560) (560)
Goodwill, net 676 676 676
Acquisition 0 0  
Goodwill, Written off Related to Sale of Business Unit 0 0  
Measurement period adjustments 0    
Allocation of acquired goodwill 0    
Goodwill, end of period 1,236 1,236  
Pork [Member]      
Goodwill [Roll Forward]      
Goodwill, beginning of period 423 423  
Accumulated impairment losses 0 0 0
Goodwill, net 423 423 423
Acquisition 0 0  
Goodwill, Written off Related to Sale of Business Unit 0 0  
Measurement period adjustments 0    
Allocation of acquired goodwill 0    
Goodwill, end of period 423 423  
Chicken [Member]      
Goodwill [Roll Forward]      
Goodwill, beginning of period 1,565 1,565  
Accumulated impairment losses 0 0 0
Goodwill, net 2,498 1,565 1,565
Acquisition 365 0  
Goodwill, Written off Related to Sale of Business Unit 0 0  
Measurement period adjustments 0    
Allocation of acquired goodwill 568    
Goodwill, end of period 2,498 1,565  
Prepared Foods [Member]      
Goodwill [Roll Forward]      
Goodwill, beginning of period 3,678 4,005  
Accumulated impairment losses 0 0 0
Goodwill, net 6,142 3,678 4,005
Acquisition 82 0  
Goodwill, Written off Related to Sale of Business Unit (30) (327)  
Measurement period adjustments 0    
Allocation of acquired goodwill 2,412    
Goodwill, end of period 6,142 3,678  
Other [Member]      
Goodwill [Roll Forward]      
Goodwill, beginning of period [1] 57 57  
Accumulated impairment losses [1] (57) (57) (57)
Goodwill, net [1] 0 0 0
Acquisition [1] 0 0  
Goodwill, Written off Related to Sale of Business Unit [1] 0 0  
Measurement period adjustments [1] 0    
Allocation of acquired goodwill [1] 0    
Goodwill, end of period [1] 57 57  
Unallocated Goodwill [Member]      
Goodwill [Roll Forward]      
Goodwill, beginning of period 2,982 0  
Accumulated impairment losses 0 0 0
Goodwill, net 0 2,982 $ 0
Acquisition 0 2,982  
Goodwill, Written off Related to Sale of Business Unit 0 0  
Measurement period adjustments (2)    
Allocation of acquired goodwill (2,980)    
Goodwill, end of period $ 0 $ 2,982  
[1] Other included the goodwill from our foreign chicken operation.
v3.10.0.1
Goodwill And Intangible Assets (Other Intangible Assets By Type) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]    
Total gross amortizable intangible assets $ 3,217 $ 2,500
Less accumulated amortization 536 335
Total net amortizable intangible assets 2,681 2,165
Brands and trademarks not subject to amortization 4,078 4,078
Total intangible assets 6,759 6,243
Brands and Trademarks [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total gross amortizable intangible assets 950 738
Customer Relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total gross amortizable intangible assets 1,793 1,639
Supply Arrangement [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total gross amortizable intangible assets 358 0
Patents, Intellectual Property and Other [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total gross amortizable intangible assets 107 114
Land Use Rights [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total gross amortizable intangible assets $ 9 $ 9
v3.10.0.1
Goodwill And Intangible Assets (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense on intangible assets $ 210 $ 107 $ 80
Estimated amortization expense on intangible assets, 2019 241    
Estimated amortization expense on intangible assets, 2020 240    
Estimated amortization expense on intangible assets, 2021 222    
Estimated amortization expense on intangible assets, 2022 212    
Estimated amortization expense on intangible assets, 2023 $ 201    
v3.10.0.1
Restructuring Charges by Income Statement Location (Details) - Financial Fitness Program [Member] - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 30, 2017
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost $ 14 $ 14 $ 12 $ 19 $ 150 $ 59 $ 150
Cost of Sales [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost           0 35
Selling, General and Administrative Expenses [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost           $ 59 $ 115
v3.10.0.1
Current and Estimated Restructuring Charges (Details) - Financial Fitness Program [Member] - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 30, 2017
Sep. 30, 2017
Sep. 29, 2018
Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost $ 14 $ 14 $ 12 $ 19 $ 150 $ 59 $ 150
Restructuring and Related Cost, Expected Cost Remaining 44         44  
Restructuring and Related Cost, Expected Cost 253         253  
Operating Segments [Member] | Beef [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost           4 8
Restructuring and Related Cost, Expected Cost Remaining 6         6  
Restructuring and Related Cost, Expected Cost 18         18  
Operating Segments [Member] | Pork [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost           1 3
Restructuring and Related Cost, Expected Cost Remaining 3         3  
Restructuring and Related Cost, Expected Cost 7         7  
Operating Segments [Member] | Chicken [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost           30 56
Restructuring and Related Cost, Expected Cost Remaining 16         16  
Restructuring and Related Cost, Expected Cost 102         102  
Operating Segments [Member] | Prepared Foods [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost           24 82
Restructuring and Related Cost, Expected Cost Remaining 19         19  
Restructuring and Related Cost, Expected Cost 125         125  
Segment Reconciling Items [Member] | Other [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost           0 $ 1
Restructuring and Related Cost, Expected Cost Remaining 0         0  
Restructuring and Related Cost, Expected Cost $ 1         $ 1  
v3.10.0.1
Restructuring Reserve (Details) - Financial Fitness Program [Member]
$ in Millions
12 Months Ended
Sep. 29, 2018
USD ($)
Restructuring Cost and Reserve [Line Items]  
Liability as of September 30, 2017 $ 69
Restructuring Charges 0
Payments 58
Other 1
Liability as of September 29, 2018 10
Employee Severance [Member]  
Restructuring Cost and Reserve [Line Items]  
Liability as of September 30, 2017 47
Restructuring Charges 0
Payments 37
Other 0
Liability as of September 29, 2018 10
Contract Termination [Member]  
Restructuring Cost and Reserve [Line Items]  
Liability as of September 30, 2017 22
Restructuring Charges 0
Payments 21
Other 1
Liability as of September 29, 2018 $ 0
v3.10.0.1
Restructuring Narrative (Details) - Financial Fitness Program [Member]
$ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 30, 2017
USD ($)
Sep. 30, 2017
USD ($)
Sep. 29, 2018
USD ($)
Sep. 30, 2017
USD ($)
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Expected Cost $ 253         $ 253  
Restructuring and Related Cost, Expected Number of Positions Eliminated 550         550  
Restructuring and Related Cost, Incurred Cost $ 14 $ 14 $ 12 $ 19 $ 150 $ 59 $ 150
Employee Severance [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost             53
Technology Impairment and Related Costs [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost           $ 59 72
Contract Termination [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring and Related Cost, Incurred Cost             $ 25
v3.10.0.1
Income Taxes (Provision For Income Taxes From Continuing Operations) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Income Tax Disclosure [Abstract]      
Federal $ (426) $ 755 $ 710
State 118 81 118
Foreign 26 14 (2)
Current 583 889 742
Deferred (865) (39) 84
Income Tax Expense (Benefit) $ (282) $ 850 $ 826
v3.10.0.1
Income Taxes (Reasons For Differences Between Statutory Federal Tax Rate And Effective Income Tax Rate) (Details)
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 30, 2017
Sep. 29, 2018
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Income Tax Disclosure [Abstract]          
Federal income tax rate 35.00% 21.00% 24.50% 35.00% 35.00%
State income taxes     3.30% 2.30% 2.70%
Domestic production deduction     (1.70%) (3.10%) (2.60%)
Impairment and Sale of Non-Protein Businesses     3.10% 0.00% 0.00%
Impact of the Tax Act     (37.90%) 0.00% 0.00%
Other     (1.60%) (1.90%) (3.30%)
Effective income tax rate     (10.30%) 32.30% 31.80%
v3.10.0.1
Income Taxes (Tax Effects Of Major Items Recorded As Deferred Tax Assets And Liabilities) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Income Tax Disclosure [Abstract]    
Deferred Tax Assets, Property, plant and equipment $ 0 $ 0
Deferred Tax Liabilities, Property, plant and equipment 714 900
Deferred Tax Assets, Intangible assets 0 0
Deferred Tax Liabilities, Intangible assets 1,533 2,424
Deferred Tax Assets, Accrued expenses 230 400
Deferred Tax Liabilities, Accrued expenses 0 0
Deferred Tax Assets, Net operating loss and other carryforwards 92 97
Deferred Tax Assets, Other 98 204
Deferred Tax Liabilities, Other 193 273
Deferred Tax Assets, Gross 420 701
Deferred Tax Liabilities, Gross 2,440 3,597
Valuation allowance (79) (75)
Net deferred tax liability $ 2,099 $ 2,971
v3.10.0.1
Income Taxes (Activity Related To Gross Unrecognized Tax Benefits) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance as of the beginning of the year $ 316 $ 305 $ 306
Increases related to current year tax positions 19 38 35
Increases related to prior year tax positions 8 5 31
Increase related to AdvancePierre acquisition 0 9 0
Reductions related to prior year tax positions (18) (27) (48)
Reductions related to settlements (8) (4) (7)
Reductions related to expirations of statute of limitations (9) (10) (12)
Balance as of the end of the year $ 308 $ 316 $ 305
v3.10.0.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 30, 2017
Sep. 29, 2018
Sep. 28, 2019
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Income Tax Disclosure [Line Items]            
Federal income tax rate 35.00% 21.00%   24.50% 35.00% 35.00%
Tax Benefit from Deferred Tax Remeasurement       $ 1,004    
Impact of the Tax Act       $ 35    
Impairment and Sale of Non-Protein Businesses       3.10% 0.00% 0.00%
Domestic production deduction       $ 46 $ 80 $ 68
State Income Taxes       90 61 70
Income (Loss) from Continuing Operations before Income Taxes, Domestic       2,700 2,603 $ 2,543
Tax credit carryforwards   $ 47   47    
Accumulated undistributed earnings of foreign subsidiaries   210   210 182  
Unrecognized tax benefits that would impact effective tax rate   216   216 205  
Unrecognized tax benefits, income tax penalties and interest accrued   73   73 $ 63  
Decrease in Unrecognized Tax Benefits is Reasonably Possible   28   28    
Expire in fiscal 2019 - 2031 [Member]            
Income Tax Disclosure [Line Items]            
Tax credit carryforwards   43   43    
State and Local Jurisdiction [Member]            
Income Tax Disclosure [Line Items]            
Operating loss carryforwards   662   662    
Foreign Country [Member]            
Income Tax Disclosure [Line Items]            
Operating loss carryforwards   46   46    
Expire in fiscal years 2019-2028 [Member] | Foreign Country [Member]            
Income Tax Disclosure [Line Items]            
Operating loss carryforwards   $ 41   $ 41    
Scenario, Forecast [Member]            
Income Tax Disclosure [Line Items]            
Federal income tax rate     21.00%      
v3.10.0.1
Debt (Major Components Of Debt) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Jun. 08, 2018
Sep. 30, 2017
Debt Instrument [Line Items]      
Letters of Credit Outstanding, Amount $ 0    
Discount on senior notes (15)   $ (15)
Other 73   81
Unamortized debt issuance costs (50)   (50)
Total debt 9,873   10,203
Less current debt 1,911   906
Total long-term debt 7,962   9,297
7.00% Notes due May 2018      
Debt Instrument [Line Items]      
Long-term debt, gross $ 0   120
Stated interest rate 7.00%    
Notes due May 2019 (2.76% at 09/29/2018)      
Debt Instrument [Line Items]      
Long-term debt, gross $ 300   300
Stated interest rate 2.76%    
2.65% Notes due August 2019      
Debt Instrument [Line Items]      
Long-term debt, gross $ 1,000   1,000
Stated interest rate 2.65%    
Notes due June 2020 (2.87% at 09/29/2018)      
Debt Instrument [Line Items]      
Long-term debt, gross $ 350   350
Stated interest rate 2.87%    
Notes due August 2020 (2.76% at 09/29/2018)      
Debt Instrument [Line Items]      
Long-term debt, gross $ 400   400
Stated interest rate 2.76%    
4.10% Notes due September 2020      
Debt Instrument [Line Items]      
Long-term debt, gross $ 281   282
Stated interest rate 4.10%    
2.25% Notes due August 2021      
Debt Instrument [Line Items]      
Long-term debt, gross $ 500   500
Stated interest rate 2.25%    
4.50% Senior notes due June 2022      
Debt Instrument [Line Items]      
Long-term debt, gross $ 1,000   1,000
Stated interest rate 4.50%    
3.90% Notes due September 2023 (2023 Notes)      
Debt Instrument [Line Items]      
Long-term debt, gross $ 400   0
Stated interest rate 3.90%    
3.95% Notes due August 2024      
Debt Instrument [Line Items]      
Long-term debt, gross $ 1,250   1,250
Stated interest rate 3.95%    
3.55% Notes due June 2027      
Debt Instrument [Line Items]      
Long-term debt, gross $ 1,350   1,350
Stated interest rate 3.55%    
7.00% Notes due January 2028      
Debt Instrument [Line Items]      
Long-term debt, gross $ 18   18
Stated interest rate 7.00%    
6.13% Notes due November 2032      
Debt Instrument [Line Items]      
Long-term debt, gross $ 161   162
Stated interest rate 6.13%    
4.88% Notes due August 2034      
Debt Instrument [Line Items]      
Long-term debt, gross $ 500   500
Stated interest rate 4.88%    
5.15% Notes due August 2044      
Debt Instrument [Line Items]      
Long-term debt, gross $ 500   500
Stated interest rate 5.15%    
4.55% Notes due June 2047      
Debt Instrument [Line Items]      
Long-term debt, gross $ 750   750
Stated interest rate 4.55%    
5.10% Notes due September 2048 (2048 Notes)      
Debt Instrument [Line Items]      
Long-term debt, gross $ 500   0
Stated interest rate 5.10%    
Tranche B due August 2019      
Debt Instrument [Line Items]      
Long-term debt, gross $ 0   427
Tranche B due August 2020      
Debt Instrument [Line Items]      
Long-term debt, gross 0 $ 750 500
Revolving Credit Facility [Member]      
Debt Instrument [Line Items]      
Revolving credit facility 0   0
Commercial Paper [Member]      
Debt Instrument [Line Items]      
Commercial Paper $ 605   $ 778
v3.10.0.1
Debt (Narrative) (Details) - USD ($)
$ in Millions
1 Months Ended 3 Months Ended 12 Months Ended
Sep. 29, 2018
Sep. 29, 2018
Sep. 29, 2018
Jun. 08, 2018
Mar. 31, 2018
Dec. 30, 2017
Sep. 30, 2017
Debt Instrument [Line Items]              
Letters of Credit Outstanding, Amount $ 0 $ 0 $ 0        
Debt Instrument, Unamortized Discount 15 15 15       $ 15
Maturities of debt in 2019 1,911 1,911 1,911        
Maturities of debt in 2020 1,037 1,037 1,037        
Maturities of debt in 2021 511 511 511        
Maturities of debt in 2022 1,007 1,007 1,007        
Maturities of debt in 2023 405 405 405        
Three Point Nine Percentage Senior Notes Due September, Two Thousand and Twenty Three and Five Point One Percentage Senior Notes Due September, Two Thousand and Forty Eight [Member]              
Debt Instrument [Line Items]              
Debt Instrument, Unamortized Discount 3 3 3        
Proceeds from Issuance of Unsecured Debt 897            
Debt Issuance Costs, Gross 9 9 9        
Debt Instrument, Face Amount 900 900 900        
3.9% Senior Notes Due September, Two Thousand and Twenty Three [Member]              
Debt Instrument [Line Items]              
Long-term debt, gross $ 400 $ 400 $ 400       0
Debt Instrument, Interest Rate, Stated Percentage 3.90% 3.90% 3.90%        
5.1% Notes Due September, Two Thousand and Forty Eight [Member]              
Debt Instrument [Line Items]              
Long-term debt, gross $ 500 $ 500 $ 500       0
Debt Instrument, Interest Rate, Stated Percentage 5.10% 5.10% 5.10%        
Tranche B due August 2020 [Member]              
Debt Instrument [Line Items]              
Long-term debt, gross $ 0 $ 0 $ 0 $ 750     500
Extinguishment of Debt, Amount   750          
7.00% Notes Due May 2018 [Member]              
Debt Instrument [Line Items]              
Long-term debt, gross $ 0 $ 0 0       120
Extinguishment of Debt, Amount     $ 120        
Debt Instrument, Interest Rate, Stated Percentage 7.00% 7.00% 7.00%        
Tranche B due August 2019 [Member]              
Debt Instrument [Line Items]              
Long-term debt, gross $ 0 $ 0 $ 0       427
Extinguishment of Debt, Amount     427        
Revolving Credit Facility [Member]              
Debt Instrument [Line Items]              
Maximum borrowing capacity         $ 1,750 $ 1,500  
Amount available for borrowing under credit facility 1,750 1,750 1,750        
Bilateral Letters Of Credit [Member]              
Debt Instrument [Line Items]              
Letters of Credit Outstanding, Amount 105 105 105        
Commercial Paper [Member]              
Debt Instrument [Line Items]              
Maximum borrowing capacity 1,000 1,000 1,000        
Commercial Paper $ 605 $ 605 $ 605       $ 778
Short-term Debt, Weighted Average Interest Rate, at Point in Time 2.33% 2.33% 2.33%        
Debt Instrument, Term     25 days        
v3.10.0.1
Equity (Schedule of Share Repurchases) (Details) - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Class of Stock [Line Items]      
Dollars $ 427 $ 860 $ 1,944
Class A [Member]      
Class of Stock [Line Items]      
Shares 5.9 13.5 32.1
Dollars $ 427 $ 860 $ 1,944
Share Repurchase Program [Member] | Class A [Member]      
Class of Stock [Line Items]      
Shares 4.9 12.5 30.8
Dollars $ 350 $ 797 $ 1,868
To fund certain obligations under equity compensation plans [Member] | Class A [Member]      
Class of Stock [Line Items]      
Shares 1.0 1.0 1.3
Dollars $ 77 $ 63 $ 76
v3.10.0.1
Equity (Narrative) (Details)
$ / shares in Units, shares in Millions
12 Months Ended
Nov. 12, 2018
$ / shares
Jul. 17, 2017
USD ($)
Feb. 04, 2016
shares
Sep. 29, 2018
Classes
$ / shares
shares
Sep. 30, 2017
$ / shares
Oct. 01, 2016
$ / shares
Sep. 27, 2014
USD ($)
shares
$ / shares
Class of Stock [Line Items]              
Number of classes of common stock | Classes       2      
Cash Dividends, Paid Ratio To Other Class Of Stock, Maximum       90.00%      
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | shares       22.9      
TEUs issued (in units) | shares             30.0
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 | $             $ 205,000,000
Convertible Debt [Member] | Tangible Equity Unit, Senior Amortizing Note [Member]              
Class of Stock [Line Items]              
Debt Instrument, Periodic Payment | $   $ 0.59          
Tyson Limited Partnership And Tyson Family [Member]              
Class of Stock [Line Items]              
Related Party Voting Rights Percentage       70.96%      
Class A [Member]              
Class of Stock [Line Items]              
Common stock, par value       $ 0.1 $ 0.10    
Common Stock, Vote Entitlement Per Share       1      
Common Stock, Dividends, Per Share, Cash Paid       1.20 0.90 $ 0.60  
Common Stock, Dividends, Per Share, Declared       $ 1.275 0.975 0.650  
Stock Repurchase Program, Increase (Decrease) in Authorized Shares | shares     50.0        
Class A [Member] | Subsequent Event [Member]              
Class of Stock [Line Items]              
Common Stock, Dividends, Per Share, Declared $ 0.375            
Class A [Member] | Tyson Limited Partnership And Tyson Family [Member]              
Class of Stock [Line Items]              
Tyson Family Ownership Percentage       2.09%      
Class B [Member]              
Class of Stock [Line Items]              
Common stock, par value       $ 0.1 0.10    
Common Stock, Vote Entitlement Per Share       10      
Common Stock, Dividends, Per Share, Cash Paid       1.08 0.81 0.54  
Common Stock, Dividends, Per Share, Declared       $ 1.148 $ 0.878 $ 0.585  
Class B [Member] | Subsequent Event [Member]              
Class of Stock [Line Items]              
Common Stock, Dividends, Per Share, Declared $ 0.3375            
Class B [Member] | Tyson Limited Partnership [Member]              
Class of Stock [Line Items]              
Tyson Family Ownership Percentage       99.985%      
v3.10.0.1
Other Income And Charges (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2018
Apr. 01, 2017
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Components of Other Income and Expenses [Line Items]          
Asset Impairment Charges     $ 175 $ 214 $ 45
One Time Cash Bonus [Member]          
Components of Other Income and Expenses [Line Items]          
One-Time Cash Bonus $ 109        
San Diego Prepared Foods operation [Member] | Prepared Foods [Member]          
Components of Other Income and Expenses [Line Items]          
Asset Impairment Charges   $ 52      
Property, plant, and equipment impairment   43      
Impairment of Intangible Assets, Finite-lived   8      
Other asset impairment charges   1      
Cost of Sales [Member] | One Time Cash Bonus [Member]          
Components of Other Income and Expenses [Line Items]          
One-Time Cash Bonus     109    
Cost of Sales [Member] | San Diego Prepared Foods operation [Member] | Prepared Foods [Member]          
Components of Other Income and Expenses [Line Items]          
Asset Impairment Charges   44      
Other Nonoperating Income (Expense) [Member]          
Components of Other Income and Expenses [Line Items]          
Insurance Proceeds     11    
Equity Earnings In Joint Ventures     21 19 12
Foreign Currency Transaction Gain, before Tax     $ 1    
Foreign Currency Transaction Loss, before Tax         $ 4
Other Nonoperating Income (Expense) [Member] | Bridge Loan [Member] | AdvancePierre [Member]          
Components of Other Income and Expenses [Line Items]          
Business Combination, Acquisition Related Costs       18  
Other Nonoperating Income (Expense) [Member] | Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]          
Components of Other Income and Expenses [Line Items]          
Loss contingency, provision       $ 28  
Selling, General and Administrative Expenses [Member] | San Diego Prepared Foods operation [Member] | Prepared Foods [Member]          
Components of Other Income and Expenses [Line Items]          
Asset Impairment Charges   $ 8      
v3.10.0.1
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 30, 2017
Sep. 30, 2017
Jul. 01, 2017
Apr. 01, 2017
Dec. 31, 2016
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Earnings Per Share, Basic and Diluted [Line Items]                      
Net Income $ 537 $ 542 $ 316 $ 1,632 $ 395 $ 448 $ 341 $ 594 $ 3,027 $ 1,778 $ 1,772
Less: Net income attributable to noncontrolling interest                 3 4 4
Net Income Attributable to Tyson $ 537 $ 541 $ 315 $ 1,631 $ 394 $ 447 $ 340 $ 593 3,024 1,774 1,768
Undistributed earnings                 $ 2,566 $ 1,428 $ 1,535
Stock options and restricted stock                 4 4 5
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions                 369 370 390
Net Income Per Share Attributable to Tyson - Diluted $ 1.47 $ 1.47 $ 0.85 $ 4.40 $ 1.07 $ 1.21 $ 0.92 $ 1.59 $ 8.19 $ 4.79 $ 4.53
Class A [Member]                      
Earnings Per Share, Basic and Diluted [Line Items]                      
Less dividends declared:                 $ 378 $ 285 $ 192
Undistributed earnings                 $ 2,115 $ 1,177 $ 1,279
Weighted average number of shares outstanding - Basic                 295 296 315
Net Income Per Share Attributable to Tyson - Basic 1.50 1.52 0.88 4.54 1.10 1.24 0.95 1.64 $ 8.44 $ 4.94 $ 4.67
Common Stock, Dividends, Per Share, Declared                 $ 1.275 $ 0.975 $ 0.650
Class B [Member]                      
Earnings Per Share, Basic and Diluted [Line Items]                      
Less dividends declared:                 $ 80 $ 61 $ 41
Undistributed earnings                 $ 451 $ 251 $ 256
Weighted average number of shares outstanding - Basic                 70 70 70
Net Income Per Share Attributable to Tyson - Basic $ 1.35 $ 1.37 $ 0.78 $ 4.09 $ 0.98 $ 1.12 $ 0.86 $ 1.49 $ 7.59 $ 4.45 $ 4.24
Common Stock, Dividends, Per Share, Declared                 $ 1.148 $ 0.878 $ 0.585
v3.10.0.1
Earnings Per Share (Narrative) (Details)
shares in Millions
12 Months Ended
Sep. 29, 2018
Classes
shares
Sep. 30, 2017
shares
Oct. 01, 2016
shares
Earnings Per Share, Basic and Diluted [Line Items]      
Cash Dividends, Paid Ratio To Other Class Of Stock, Maximum 90.00%    
Number of classes of common stock | Classes 2    
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 | shares 1 1 0
v3.10.0.1
Derivative Financial Instruments (Aggregate Outstanding Notionals) (Details)
lb in Millions, bu in Millions, $ in Millions
Sep. 29, 2018
USD ($)
lb
bu
T
Sep. 30, 2017
USD ($)
lb
bu
T
Corn (in bushels)    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | bu 112 55
Soy Meal (in tons)    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | T 651,700 475,200
Live Cattle (in pounds)    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | lb 105 211
Lean Hogs (in pounds)    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | lb 39 240
Foreign Currency [Member]    
Derivative [Line Items]    
Derivative, Notional Amount | $ $ 89 $ 58
Interest Rate Swap [Member]    
Derivative [Line Items]    
Derivative, Notional Amount | $ $ 400 $ 0
v3.10.0.1
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
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Derivative [Line Items]      
Gain/(Loss) Recognized in OCI on Derivatives $ (20) $ (3) $ (1)
Gain/(Loss) Reclassified from OCI to Earnings (12) (4) 1
Commodity Contracts [Member]      
Derivative [Line Items]      
Gain/(Loss) Recognized in OCI on Derivatives (21) (3) (1)
Commodity Contracts [Member] | Cost of Sales [Member]      
Derivative [Line Items]      
Gain/(Loss) Reclassified from OCI to Earnings (12) (4) 1
Interest Rate Swap [Member]      
Derivative [Line Items]      
Gain/(Loss) Recognized in OCI on Derivatives 1 0 0
Interest Rate Swap [Member] | Interest Expense [Member]      
Derivative [Line Items]      
Gain/(Loss) Reclassified from OCI to Earnings $ 0 $ 0 $ 0
v3.10.0.1
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
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Future [Member]      
Derivative [Line Items]      
Gain/(Loss) on forwards $ 12 $ (20) $ 89
Forward Contracts [Member]      
Derivative [Line Items]      
Gain/(Loss) on forwards $ (12) $ 20 $ (89)
v3.10.0.1
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
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Derivative [Line Items]      
Gain/(Loss) Recognized in Earnings $ (18) $ 16 $ (54)
Commodity Contracts [Member] | Sales [Member]      
Derivative [Line Items]      
Gain/(Loss) Recognized in Earnings 18 111 (73)
Commodity Contracts [Member] | Cost of Sales [Member]      
Derivative [Line Items]      
Gain/(Loss) Recognized in Earnings (33) (95) 17
Foreign Currency [Member] | Other Nonoperating Income (Expense) [Member]      
Derivative [Line Items]      
Gain/(Loss) Recognized in Earnings $ (3) $ 0 $ 2
v3.10.0.1
Derivative Financial Instruments (Narrative) (Details) - Cash Flow Hedging [Member]
$ in Millions
12 Months Ended
Sep. 29, 2018
USD ($)
Commodity Contracts [Member]  
Derivative [Line Items]  
Cash flow hedge gain (loss) to be reclassified within twelve months $ (11)
Interest Rate Swap [Member]  
Derivative [Line Items]  
Cash flow hedge gain (loss) to be reclassified within twelve months $ 1
v3.10.0.1
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Liability, Collateral, Right to Reclaim Cash, Offset $ 18 $ 22
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, Netting [1] (20) (4)
Total Assets 440 423
Derivative Liability, Netting [1] (38) (26)
Total Liabilities 5 4
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Assets 21 23
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]    
Total Assets 388 353
Total Liabilities 43 30
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Assets 51 51
Total Liabilities 0 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities, Current 1 3
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 1 9
Derivative Asset, Netting [1] (1) (1)
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 25 21
Derivative Asset, Netting [1] (19) (3)
Other Current Assets [Member] | 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
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 0 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 0 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities, Current 1 2
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 2 10
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 44 24
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities, Current 0 1
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 0 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 0 0
Other Assets [Member] | Fair Value, Measurements, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities, Noncurrent 97 95
Deferred Compensation Assets 316 295
Other Assets [Member] | 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, Noncurrent 0 0
Deferred Compensation Assets 21 23
Other Assets [Member] | 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, Noncurrent 46 45
Deferred Compensation Assets 295 272
Other Assets [Member] | 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, Noncurrent 51 50
Deferred Compensation Assets 0 0
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 0 0
Derivative Liability, Netting [1] (8) (9)
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 5 4
Derivative Liability, Netting [1] (30) (17)
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 0 0
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 0 0
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 8 9
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 35 21
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 0 0
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Not Designated as Hedging Instrument [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities $ 0 $ 0
[1] Our derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at September 29, 2018, and September 30, 2017, we had $18 million and $22 million, respectively, of cash collateral posted with various counterparties where master netting arrangements exist and held no cash collateral.
v3.10.0.1
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Fair Value Disclosures [Abstract]    
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) $ 0 $ 0
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance at beginning of year 51 57
Total realized and unrealized gains (losses), Included in earnings 0 0
Total realized and unrealized gains (losses), Included in other comprehensive income (loss) (1) (1)
Purchases 20 13
Issuances 0 0
Settlements (19) (18)
Balance at end of year $ 51 $ 51
v3.10.0.1
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
U.S. Treasury and Agency [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Amortized Cost Basis $ 48 $ 47
Fair Value 47 47
Unrealized Gain/(Loss) (1) 0
Corporate And Asset-Backed [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Amortized Cost Basis 52 51
Fair Value 51 51
Unrealized Gain/(Loss) $ (1) $ 0
v3.10.0.1
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Fair Value Disclosures [Abstract]    
Total Debt, Fair Value $ 9,775 $ 10,591
Total Debt, Carrying Value $ 9,873 $ 10,203
v3.10.0.1
Fair Value Measurements Fair Value Measurements (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2018
Sep. 30, 2017
Apr. 01, 2017
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net       $ 0 $ 0  
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Portion Attributable to Parent       0 0  
Asset Impairment Charges       $ 175 $ 214 $ 45
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]            
Concentration, Percentage       18.60% 18.60%  
Prepared Foods [Member] | San Diego Prepared Foods operation [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges     $ 52      
Property, plant, and equipment impairment     43      
Impairment of Intangible Assets, Finite-lived     8      
Impairment of other assets     1      
Prepared Foods [Member] | San Diego Prepared Foods operation [Member] | Cost of Sales [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges     44      
Prepared Foods [Member] | San Diego Prepared Foods operation [Member] | Selling, General and Administrative Expenses [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges     8      
Fair Value, Measurements, Nonrecurring [Member] | Prepared Foods [Member] | San Diego Prepared Foods operation [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges     52      
Property, plant, and equipment impairment     43      
Impairment of Intangible Assets, Finite-lived     8      
Impairment of other assets     1      
Fair Value, Measurements, Nonrecurring [Member] | Prepared Foods [Member] | San Diego Prepared Foods operation [Member] | Cost of Sales [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges     44      
Fair Value, Measurements, Nonrecurring [Member] | Prepared Foods [Member] | San Diego Prepared Foods operation [Member] | Selling, General and Administrative Expenses [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges     $ 8      
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Non-Protein Business [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges $ 75 $ 45        
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Non-Protein Business [Member] | Prepared Foods [Member] | Cost of Sales [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges       $ 101 $ 45  
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Non-Protein Business [Member] | Fair Value, Measurements, Nonrecurring [Member] | Cost of Sales [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset Impairment Charges   $ 45   $ 101    
Maximum [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Short Term Investment Maturity Period       12 months    
Available For Sale Securities Debt Maturity Period       32 years    
Maximum [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Concentration, Percentage       10.00% 10.00%  
v3.10.0.1
Stock-Based Compensation (Summary Of Stock Options) (Details) - Stock Options [Member] - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Shares Under Option - Outstanding, September 30, 2017 7,547,518    
Shares Under Option - Exercised (2,615,963)    
Shares Under Option - Forfeited or expired (120,897)    
Shares Under Option - Granted 1,183,490    
Shares Under Option - Outstanding, September 29, 2018 5,994,148 7,547,518  
Weighted Average Exercise Price Per Share - Outstanding, September 30, 2017 $ 40.54    
Weighted Average Exercise Price Per Share - Exercised 38.67    
Weighted Average Exercise Price Per Share - Forfeited or expired 60.80    
Weighted Average Exercise Price Per Share - Granted 78.16    
Weighted Average Exercise Price Per Share - Outstanding, September 29, 2018 $ 48.37 $ 40.54  
Weighted Average Remaining Contractual Life (in Years) - Outstanding, September 29, 2018 6 years 8 months    
Aggregate Intrinsic Value - Outstanding, September 29, 2018 $ 88    
Shares Under Option - Exercisable, September 29, 2018 3,793,715    
Weighted Average Exercise Price Per Share - Exercisable at September 29, 2018 $ 37.63    
Weighted Average Remaining Contractual Life (in Years) - Exercisable, September 29, 2018 5 years 7 months    
Aggregate Intrinsic Value - Exercisable, September 29, 2018 $ 84    
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate 1.50% 1.40% 2.60%
v3.10.0.1
Stock-Based Compensation (Assumption Of Fair Value Calculation Of Each Year's Grants) (Details) - Stock Options [Member]
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected life (in years) 5 years 11 months 5 years 5 months 6 years 5 months
Risk-free interest rate 2.10% 1.80% 1.60%
Expected volatility 23.50% 24.70% 24.80%
v3.10.0.1
Stock-Based Compensation (Summary Of Restricted Stock) (Details) - Restricted Stock [Member]
$ / shares in Units, $ in Millions
12 Months Ended
Sep. 29, 2018
USD ($)
$ / shares
shares
Sep. 30, 2017
$ / shares
shares
Oct. 01, 2016
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]      
Number of Shares - Nonvested, September 30, 2017 | shares 1,715,100    
Number of Shares - Granted | shares 545,015    
Number of Shares - Dividends | shares 27,033    
Number of Shares - Vested | shares (608,371) (500,000) (200,000)
Number of Shares - Forfeited | shares (178,801)    
Number of Shares - Nonvested, September 29, 2018 | shares 1,499,976 1,715,100  
Weighted Average Grant Date Fair Value Per Share - Nonvested, September 30, 2017 | $ / shares $ 51.21    
Weighted Average Grant-Date Fair Value Per Share - Granted | $ / shares $ 77.25    
Weighted Average Grant-Date Fair Value Per Share - Dividends | $ / shares 61.37    
Weighted Average Grant-Date Fair Value Per Share - Vested | $ / shares $ 45.02    
Weighted Average Grant-Date Fair Value Per Share - Forfeited | $ / shares 56.94    
Weighted Average Grant Date Fair Value Per Share - Nonvested, September 29, 2018 | $ / shares $ 62.68 $ 51.21  
Weighted Average Remaining Contractual Life (in Years), Nonvested, September 29, 2018 1 year 4 months    
Aggregate Intrinsic Value - Nonvested, September 29, 2018 | $ $ 89    
v3.10.0.1
Stock-Based Compensation (Summary of Performance-Based Shares) (Details) - Performance Shares [Member]
$ / shares in Units, $ in Millions
12 Months Ended
Sep. 29, 2018
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]  
Number of Shares - Nonvested, September 30, 2017 | shares 2,157,115
Number of Shares - Granted | shares 668,246
Number of Shares - Vested | shares (396,468)
Number of Shares - Forfeited | shares (232,594)
Number of Shares - Nonvested, September 29, 2018 | shares 2,196,299
Weighted Average Grant Date Fair Value Per Share - Nonvested, September 30, 2017 | $ / shares $ 38.92
Weighted Average Grant-Date Fair Value Per Share - Granted | $ / shares 62.92
Weighted Average Grant-Date Fair Value Per Share - Vested | $ / shares 27.95
Weighted Average Grant-Date Fair Value Per Share - Forfeited | $ / shares 46.40
Weighted Average Grant Date Fair Value Per Share - Nonvested, September 29, 2018 | $ / shares $ 47.41
Weighted Average Remaining Contractual Life (in Years), Nonvested, September 29, 2018 1 year
Aggregate Intrinsic Value - Nonvested, September 29, 2018 | $ $ 131
v3.10.0.1
Stock-Based Compensation (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for future grant 16,150,273    
Cash received from exercise of stock options $ 102 $ 154 $ 128
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 $ 18.31 $ 13.42 $ 11.47
Stock-based compensation expense, net of income taxes $ 13 $ 22 $ 23
Related tax benefit $ 6 $ 14 $ 15
Options vested (in shares) 2,200,000 4,100,000 3,800,000
Grant date fair value of options vested $ 27 $ 47 $ 38
Cash received from exercise of stock options 102 154 128
Tax benefit related to stock options exercised 30 65 80
Total intrinsic value of options exercised 103 164 204
Amount realized, related to excess tax deductions 20 $ 42 $ 58
Total unrecognized compensation cost related to stock option plans $ 18    
Total unrecognized compensation cost, time frame for recognition, weighted average number of years 1 year 4 months    
Stock Options [Member] | Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate 1.50% 1.30% 1.20%
Stock Options [Member] | Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate 1.50% 1.40% 2.60%
Restricted Stock [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense, net of income taxes $ 22 $ 18 $ 14
Related tax benefit $ 9 $ 11 $ 9
Total unrecognized compensation cost, time frame for recognition, weighted average number of years 1 year 11 months    
Number of Shares - Vested (608,371) (500,000) (200,000)
Restricted stock awards, grant date fair value of shares vested $ 27 $ 19 $ 4
Total unrecognized compensation cost related to share-based awards other than options $ 40    
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 $ 12 16 11
Related tax benefit $ 5 $ 10 $ 7
Total unrecognized compensation cost, time frame for recognition, weighted average number of years 1 year 10 months    
Number of Shares - Vested (396,468)    
Total unrecognized compensation cost related to share-based awards other than options $ 25    
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%    
v3.10.0.1
Pensions And Other Postretirement Benefits (Reconciliation Of Changes In Plans' Benefit Obligations, Assets And Funded Status) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Pension Plan [Member]      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Fair value of plan assets at beginning of year $ 1,512    
Employer contributions 29 $ 53 $ 64
Fair value of plan assets at end of year 1,450 1,512  
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of year 33 36  
Service cost 1 1 1
Interest cost 1 1 3
Curtailment 0 0  
Plan Amendments 0 0  
Actuarial (gain) loss (5) (1)  
Benefits paid (2) (4)  
Benefit obligation at end of year 28 33 36
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Fair value of plan assets at beginning of year 0 0  
Actual return on plan assets 0 0  
Employer contributions 2 4  
Benefits paid (2) (4)  
Fair value of plan assets at end of year 0 0 0
Funded status (28) (33)  
Funded Plan [Member] | Qualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of year 1,477 1,554  
Service cost 0 2 8
Interest cost 55 57 65
Curtailment 0 0  
Plan Amendments 0 0  
Actuarial (gain) loss (60) (52)  
Benefits paid (80) (84)  
Benefit obligation at end of year 1,392 1,477 1,554
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Fair value of plan assets at beginning of year 1,512 1,440  
Actual return on plan assets 4 115  
Employer contributions 14 41  
Benefits paid (80) (84)  
Fair value of plan assets at end of year 1,450 1,512 1,440
Funded status 58 35  
Unfunded Plan [Member] | Nonqualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of year 230 222  
Service cost 7 11 6
Interest cost 8 8 9
Curtailment (5) 0  
Plan Amendments 5 0  
Actuarial (gain) loss (10) 1  
Benefits paid (15) (12)  
Benefit obligation at end of year 220 230 222
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Fair value of plan assets at beginning of year 0 0  
Actual return on plan assets 0 0  
Employer contributions 15 12  
Benefits paid (15) (12)  
Fair value of plan assets at end of year 0 0 $ 0
Funded status $ (220) $ (230)  
v3.10.0.1
Pensions And Other Postretirement Benefits (Amounts Recognized In The Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Other Postretirement Benefits Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Other assets $ 0 $ 0
Other current liabilities (3) (3)
Other liabilities (25) (30)
Total assets (liabilities) (28) (33)
Funded Plan [Member] | Qualified Plan [Member] | Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Other assets (61) (44)
Other current liabilities (3) 0
Other liabilities 0 (9)
Total assets (liabilities) 58 35
Unfunded Plan [Member] | Nonqualified Plan [Member] | Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Other assets 0 0
Other current liabilities (12) (11)
Other liabilities (208) (219)
Total assets (liabilities) $ (220) $ (230)
v3.10.0.1
Pensions And Other Postretirement Benefits Pensions and Other Postretirement Benefits (Amounts Recognized in Other Comprehensive Income) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Other Postretirement Benefits Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actuarial (gain) loss $ 0 $ 0
Prior service (credit) cost [1] (49) (73)
Total accumulated other comprehensive (income)/loss (49) (73)
Qualified Plan [Member] | Funded Plan [Member] | Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actuarial (gain) loss (96) (94)
Prior service (credit) cost [1] 0 0
Total accumulated other comprehensive (income)/loss (96) (94)
Nonqualified Plan [Member] | Unfunded Plan [Member] | Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actuarial (gain) loss 31 50
Prior service (credit) cost [1] 5 0
Total accumulated other comprehensive (income)/loss $ 36 $ 50
[1] 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.
v3.10.0.1
Pensions And Other Postretirement Benefits (Plans With Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) - Pension Plan [Member] - USD ($)
$ in Millions
Sep. 29, 2018
Sep. 30, 2017
Funded Plan [Member] | Qualified Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Projected benefit obligation $ 49 $ 361
Accumulated benefit obligation 49 361
Fair value of plan assets 45 352
Unfunded Plan [Member] | Nonqualified Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Projected benefit obligation 220 230
Accumulated benefit obligation 219 220
Fair value of plan assets $ 0 $ 0
v3.10.0.1
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
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost $ 1 $ 1 $ 1
Interest cost 1 1 3
Expected return on plan assets 0 0 0
Amortization of prior service cost (25) (25) (20)
Recognized actuarial loss (gain), net (5) (1) (15)
Recognized settlement loss (gain) 0 0 0
Net periodic benefit (credit) cost (28) (24) (31)
Funded Plan [Member] | Qualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 0 2 8
Interest cost 55 57 65
Expected return on plan assets (62) (59) (65)
Amortization of prior service cost 1 0 0
Recognized actuarial loss (gain), net 0 1 2
Recognized settlement loss (gain) 0 2 (12)
Net periodic benefit (credit) cost (6) 3 (2)
Unfunded Plan [Member] | Nonqualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Service cost 7 11 6
Interest cost 8 8 9
Expected return on plan assets 0 0 0
Amortization of prior service cost 1 0 0
Recognized actuarial loss (gain), net 3 6 5
Recognized settlement loss (gain) 0 0 0
Net periodic benefit (credit) cost $ 19 $ 25 $ 20
v3.10.0.1
Pensions And Other Postretirement Benefits (Weighted Average Assumptions) (Details)
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate to determine net periodic benefit cost 3.39% 3.09% 3.54%
Discount rate to determine benefit obligations 4.11% 3.39% 3.09%
Funded Plan [Member] | Qualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate to determine net periodic benefit cost 3.85% 3.72% 4.47%
Discount rate to determine benefit obligations 4.26% 3.85% 3.72%
Expected return on plan assets 4.20% 4.21% 4.15%
Unfunded Plan [Member] | Nonqualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate to determine net periodic benefit cost 3.88% 3.77% 4.41%
Discount rate to determine benefit obligations 4.31% 3.88% 3.77%
Rate of compensation increase 2.53% 2.44% 2.46%
v3.10.0.1
Pensions And Other Postretirement Benefits (Health Care Cost Trend Rates) (Details)
$ in Millions
12 Months Ended
Sep. 29, 2018
USD ($)
Retirement Benefits [Abstract]  
One Percentage Point Increase, Effect on postretirement benefit obligation $ 1
One Percentage Point Decrease, Effect on postretirement benefit obligation $ (1)
v3.10.0.1
Pensions And Other Postretirement Benefits (Actual And Target Asset Allocation For Pension Plan Assets) (Details) - Pension Plan [Member]
Sep. 29, 2018
Sep. 30, 2017
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% 1.10%
Target Plan Asset Allocations 0.00%  
Fixed Income Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actual Plan Asset Allocations 99.10% 87.40%
Target Plan Asset Allocations 100.00%  
Real Estate [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actual Plan Asset Allocations 0.00% 2.40%
Target Plan Asset Allocations 0.00%  
U.S. Stock Funds [Member] | Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actual Plan Asset Allocations 0.00% 3.50%
Target Plan Asset Allocations 0.00%  
Non-US [Member] | Equity Funds [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Actual Plan Asset Allocations 0.00% 5.60%
Target Plan Asset Allocations 0.00%  
v3.10.0.1
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
Sep. 29, 2018
Sep. 30, 2017
Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets $ 30 $ 28
Level 3 [Member] | Insurance Contract At Contract Value [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 30 28
Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 1,450 1,512
Pension Plan [Member] | Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 12 15
Pension Plan [Member] | Level 1 [Member] | Cash and Cash Equivalents [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 12 15
Pension Plan [Member] | Level 1 [Member] | Insurance Contract At Contract Value [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets [1] 0 0
Pension Plan [Member] | Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 0 0
Pension Plan [Member] | Level 2 [Member] | Cash and Cash Equivalents [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 0 0
Pension Plan [Member] | Level 2 [Member] | Insurance Contract At Contract Value [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets [1] 0 0
Pension Plan [Member] | Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 30 28
Pension Plan [Member] | Level 3 [Member] | Cash and Cash Equivalents [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 0 0
Pension Plan [Member] | Level 3 [Member] | Insurance Contract At Contract Value [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets [1] 30 28
Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 42 43
Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | Cash and Cash Equivalents [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets 12 15
Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | Insurance Contract At Contract Value [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets [1] 30 28
Pension Plan [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | Common Collective Trusts [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Defined Benefit Pension, Fair Value of Plan Assets [2] $ 1,408 $ 1,469
[1] 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.
[2] 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 Assets and Other Liabilities in the Consolidated Balance Sheets.
v3.10.0.1
Pensions And Other Postretirement Benefits (Reconciliation Of Change In Fair Value Measurement Of Defined Benefit Plans' Consolidated Assets Using Significant Unobservable Inputs) (Details) - Level 3 [Member]
$ in Millions
12 Months Ended
Sep. 29, 2018
USD ($)
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]  
Fair value of plan assets at beginning of year $ 28
Assets still held at reporting date 2
Assets sold during the period 0
Purchases, sales and settlements, net 0
Transfers in and/or out of Level 3 0
Fair value of plan assets at end of year 30
Insurance Contract [Member]  
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]  
Fair value of plan assets at beginning of year 28
Assets still held at reporting date 2
Assets sold during the period 0
Purchases, sales and settlements, net 0
Transfers in and/or out of Level 3 0
Fair value of plan assets at end of year $ 30
v3.10.0.1
Pensions And Other Postretirement Benefits (Estimated Future Benefit Payments Expected To Be Paid) (Details)
$ in Millions
3 Months Ended
Dec. 29, 2018
plan
Apr. 01, 2017
plan
Sep. 29, 2018
USD ($)
Other Postretirement Benefits Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
2019     $ 3
2020     3
2021     3
2022     3
2023     2
2024-2028     11
Funded Plan [Member] | Qualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Number of Plans Subject to Settlement | plan   2  
2019     122
2020     79
2021     80
2022     81
2023     82
2024-2028     417
Unfunded Plan [Member] | Nonqualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
2019     12
2020     12
2021     13
2022     13
2023     14
2024-2028     $ 69
Subsequent Event [Member] | Funded Plan [Member] | Qualified Plan [Member] | Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan, Number of Plans Subject to Settlement | plan 3    
v3.10.0.1
Pensions And Other Postretirement Benefits (Multiemployer Plans) (Details) - Multiemployer Plans, Pension [Member] - Bakery and Confectionary Union & Industry International Pension Fund [Member] - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Multiemployer Plans [Line Items]      
Multiemployer plan, contributions $ 2 $ 2 $ 1
Surcharge Imposed 10.00%    
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date [1] Oct. 10, 2015    
[1] Renewal negotiations are in progress.
v3.10.0.1
Pensions And Other Postretirement Benefits (Narrative) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 29, 2018
USD ($)
plan
Apr. 01, 2017
plan
Sep. 26, 2020
USD ($)
Sep. 29, 2018
USD ($)
plan
Sep. 30, 2017
USD ($)
Oct. 01, 2016
USD ($)
Defined Benefit Plan Disclosure [Line Items]            
Defined contribution retirement programs, expenses recognized       $ 84 $ 78 $ 67
Multiemployer Plans, Pension [Member] | Bakery and Confectionary Union & Industry International Pension Fund [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Multiemployer plan, contributions       $ 2 $ 2 $ 1
Multiemployer Plans, Pension [Member] | Bakery and Confectionary Union & Industry International Pension Fund [Member] | Pension and Other Postretirement Plans, Contributions, Total [Member] | Multiemployer Plans In Excess of 5% Concentration Risk [Member] [Domain]            
Defined Benefit Plan Disclosure [Line Items]            
Concentration, Percentage       5.00%    
Multiemployer Plans, Pension [Member] | Bakery and Confectionary Union & Industry International Pension Fund [Member] | Pension and Other Postretirement Plans, Contributions, Total [Member] | Multiemployer Plans Not In Excess of 5% Concentration Risk [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Concentration, Percentage         5.00% 5.00%
Pension Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Number of Plans | plan       9    
Number of defined benefit plans with accumulated benefit obligations in excess of plan assets       5 5  
Defined Benefit Pension, Fair Value of Plan Assets       $ 1,450 $ 1,512  
Expected contributions to pension plans for fiscal 2019       15    
Defined benefit plans funding       $ 29 53 $ 64
Other Postretirement Benefits Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Number of Plans | plan       5    
Amounts expected to be reclassified to earnings within next 12 months related to net periodic benefit cost (credit)       $ (11)    
Defined Benefit Plan, Benefit Obligation       28 33 36
Defined Benefit Pension, Fair Value of Plan Assets       0 0 0
Defined benefit plans funding       $ 2 4  
Foreign Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Number of defined benefit plans | plan       1    
Defined Benefit Pension, Fair Value of Plan Assets       $ 30 28  
Unfunded Plan [Member] | Nonqualified Plan [Member] | Pension Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Number of Plans | plan       3    
Amounts expected to be reclassified to earnings within next 12 months related to net periodic benefit cost (credit)       $ 3    
Defined Benefit Plan, Benefit Obligation       220 230 222
Defined Benefit Pension, Fair Value of Plan Assets       0 0 0
Defined benefit plans funding       $ 15 12  
Funded Plan [Member] | Qualified Plan [Member] | Pension Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Number of Plans | plan       6    
Accumulated benefit obligation       $ 1,392 1,477  
Amounts expected to be reclassified to earnings within next 12 months related to net periodic benefit cost (credit)       (1)    
Defined Benefit Plan, Benefit Obligation       1,392 1,477 1,554
Number of defined benefit plans | plan   2        
Defined Benefit Pension, Fair Value of Plan Assets       1,450 1,512 $ 1,440
Defined benefit plans funding       $ 14 $ 41  
Other Postretirement Benefit Plans, Fixed Annual Payments or Life Insurance [Member] | Other Postretirement Benefits Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Number of Plans | plan       2    
Defined Benefit Plan, Benefit Obligation       $ 17    
Other Postretirement Benefit Plans, Fixed Annual Payments or Life Insurance [Member] | Postretirement Health Coverage [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Number of Plans | plan       1    
Other Postretirement Benefit Plans, Fixed Annual Payments or Life Insurance [Member] | Postretirement Life Insurance [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Number of Plans | plan       1    
Other Postretirement Benefit Plan, Heathcare Cost Trend Rates [Member] | Postretirement Health Coverage [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Benefit Obligation       $ 10    
Healthcare cost trend rate, assumed       7.60%    
Healthcare cost trend rate, ultimate rate       4.50%    
Other Postretirement Benefit Plan, Plan Amendments [Member] | Postretirement Health Coverage [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Number of Plans | plan       2    
Other Postretirement Benefit Plan, Plan Amendments [Member] | Maximum [Member] | Postretirement Health Coverage [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Benefit Obligation       $ 1    
Subsequent Event [Member] | Funded Plan [Member] | Qualified Plan [Member] | Pension Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Cost of Providing Special and Contractual Termination Benefits $ 21          
Number of defined benefit plans | plan 3          
Subsequent Event [Member] | Funded Plan [Member] | Qualified Plan [Member] | Minimum [Member] | Pension Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Gain from Providing Special and Contractual Termination Benefits     $ 35      
Defined benefit plans funding     5      
Subsequent Event [Member] | Funded Plan [Member] | Qualified Plan [Member] | Maximum [Member] | Pension Plan [Member]            
Defined Benefit Plan Disclosure [Line Items]            
Defined Benefit Plan, Gain from Providing Special and Contractual Termination Benefits     55      
Defined benefit plans funding     $ 25      
v3.10.0.1
Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Millions
Sep. 29, 2018
[1]
Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]    
Unrealized net hedging loss $ (9) $ (2)
Unrealized net loss on investments (1) 0
Currency translation adjustment (84) (53)
Postretirement benefits reserve adjustments 79 71
Total accumulated other comprehensive income (loss) $ (15) $ 16
[1] (1) Includes reclass from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act, following adoption of the applicable new accounting standard. Refer to Part II, Item 8, Notes to Consolidated Financial Statements, Note 2: Changes in Accounting Principles.
v3.10.0.1
Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Other comprehensive income (loss), Before Tax $ (49) $ 97 $ 69
Other comprehensive income (loss), Income Tax 5 (36) (24)
Total Other Comprehensive Income (Loss), Net of Taxes (44) 61 45
Derivatives accounted for as cash flow hedges      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax (20) (3) (1)
Other Comprehensive Income (Loss), before Reclassifications, Tax 5 1 0
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax (15) (2) (1)
Derivatives accounted for as cash flow hedges | Interest Expense [Member]      
Accumulated 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
Derivatives accounted for as cash flow hedges | Cost of Sales [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 12 4 (1)
Reclassification from AOCI, Current Period, Tax (4) (2) 1
Reclassification from Accumulated Other Comprehensive Income, Net of Tax 8 2 0
Investments [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax (2) (1) (1)
Other Comprehensive Income (Loss), before Reclassifications, Tax 1 0 1
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax (1) (1) 0
Currency Translation [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Other Comprehensive Income (Loss), before Reclassifications, before Tax (38) 6 5
Other Comprehensive Income (Loss), before Reclassifications, Tax 2 0 (1)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax (36) 6 4
Currency Translation [Member] | Cost of Sales [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 7 0 0
Reclassification from AOCI, Current Period, Tax 0 0 0
Reclassification from Accumulated Other Comprehensive Income, Net of Tax 7 0 0
Postretirement benefits      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Other comprehensive income (loss), Before Tax (8) 91 67
Other comprehensive income (loss), Income Tax 1 (35) (25)
Total Other Comprehensive Income (Loss), Net of Taxes $ (7) $ 56 $ 42
v3.10.0.1
Segment Reporting (Segment Reporting Information, By Segment) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 30, 2017
Sep. 30, 2017
Jul. 01, 2017
Apr. 01, 2017
Dec. 31, 2016
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Segment Reporting Information [Line Items]                      
Sales $ 9,999 $ 10,051 $ 9,773 $ 10,229 $ 10,145 $ 9,850 $ 9,083 $ 9,182 $ 40,052 $ 38,260 $ 36,881
Operating Income (Loss) 828 $ 802 $ 498 $ 927 681 $ 697 $ 571 $ 982 3,055 2,931 2,833
Total Other (Income) Expense                 310 303 235
Income before Income Taxes                 2,745 2,628 2,598
Depreciation and Amortization                 933 748 697
Total Assets 29,109       28,066       29,109 28,066 22,373
Additions to property, plant and equipment                 1,200 1,069 695
Operating Segments [Member] | Beef [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 15,473 14,823 14,513
Operating Income (Loss)                 1,013 877 347
Depreciation and Amortization                 103 92 94
Total Assets 3,061       2,938       3,061 2,938 2,764
Additions to property, plant and equipment                 107 118 99
Operating Segments [Member] | Pork [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 4,879 5,238 4,909
Operating Income (Loss)                 361 645 528
Depreciation and Amortization                 42 36 33
Total Assets 1,265       1,132       1,265 1,132 1,039
Additions to property, plant and equipment                 150 101 68
Operating Segments [Member] | Chicken [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 12,044 11,409 10,927
Operating Income (Loss)                 866 1,053 1,305
Depreciation and Amortization                 368 296 274
Total Assets 8,794       6,630       8,794 6,630 5,836
Additions to property, plant and equipment                 570 492 281
Operating Segments [Member] | Prepared Foods [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 8,668 7,853 7,346
Operating Income (Loss)                 868 462 734
Depreciation and Amortization                 410 315 286
Total Assets 15,063       13,466       15,063 13,466 11,814
Additions to property, plant and equipment                 228 229 178
Segment Reconciling Items [Member] | Other [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 305 349 380
Operating Income (Loss)                 (53) (106) (81)
Depreciation and Amortization                 10 9 10
Total Assets $ 926       $ 3,900       926 3,900 920
Additions to property, plant and equipment                 145 129 69
Intersegment Elimination [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 (1,317) (1,412) (1,194)
Intersegment Elimination [Member] | Beef [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 (420) (386) (327)
Intersegment Elimination [Member] | Pork [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 (817) (966) (840)
Intersegment Elimination [Member] | Chicken [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 $ (80) $ (60) $ (27)
v3.10.0.1
Segment Reporting (Narrative) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 30, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jul. 01, 2017
USD ($)
Apr. 01, 2017
USD ($)
Dec. 31, 2016
USD ($)
Sep. 29, 2018
USD ($)
Segments
Sep. 30, 2017
USD ($)
Oct. 01, 2016
USD ($)
Segment Reporting Information [Line Items]                      
Sales $ 9,999 $ 10,051 $ 9,773 $ 10,229 $ 10,145 $ 9,850 $ 9,083 $ 9,182 $ 40,052 $ 38,260 $ 36,881
Number of segments | Segments                 4    
UNITED STATES                      
Segment Reporting Information [Line Items]                      
Long-lived assets 23,200       21,600       $ 23,200 21,600  
UNITED STATES | Long-Lived Assets Excluding Goodwill and Intangibles [Member]                      
Segment Reporting Information [Line Items]                      
Long-lived assets 6,700       6,000       6,700 6,000  
Non-US [Member]                      
Segment Reporting Information [Line Items]                      
Long-lived assets 212       217       212 217  
Non-US [Member] | Long-Lived Assets Excluding Goodwill and Intangibles [Member]                      
Segment Reporting Information [Line Items]                      
Long-lived assets $ 201       193       201 193  
Geographic Concentration Risk [Member] | UNITED STATES                      
Segment Reporting Information [Line Items]                      
Sales                     $ 3,500
Export sales [Member] | UNITED STATES                      
Segment Reporting Information [Line Items]                      
Sales                 $ 4,200 $ 3,900  
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | UNITED STATES                      
Segment Reporting Information [Line Items]                      
Concentration, Percentage                 99.00% 98.00% 98.00%
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | Non-US [Member] | Maximum [Member]                      
Segment Reporting Information [Line Items]                      
Concentration, Percentage                 10.00% 10.00% 10.00%
Wal-Mart Stores, Inc. [Member] | Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member]                      
Segment Reporting Information [Line Items]                      
Concentration, Percentage                 17.30% 17.30% 17.50%
Segment Reconciling Items [Member] | Other [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 $ 305 $ 349 $ 380
Business Combination, Acquisition Related Costs                 26 67 37
Intersegment Sales [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 (1,317) (1,412) (1,194)
Intersegment Sales [Member] | Beef [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 (420) (386) (327)
Intersegment Sales [Member] | Pork [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 (817) (966) (840)
Intersegment Sales [Member] | Chicken [Member]                      
Segment Reporting Information [Line Items]                      
Sales                 $ (80) (60) $ (27)
AdvancePierre [Member]                      
Segment Reporting Information [Line Items]                      
Goodwill         $ 3,000         $ 3,000  
v3.10.0.1
Supplemental Cash Flow Information (Cash Payments For Interest And Income Taxes) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Supplemental Cash Flow Information [Abstract]      
Interest, net of amounts capitalized $ 368 $ 249 $ 242
Income taxes, net of refunds $ 470 $ 779 $ 686
v3.10.0.1
Transactions With Related Parties (Details)
shares in Millions, $ in Millions
1 Months Ended 12 Months Ended
Aug. 31, 2017
USD ($)
Sep. 29, 2018
USD ($)
lease
shares
Sep. 30, 2017
USD ($)
Oct. 01, 2016
USD ($)
Donald J. Tyson Revocable Trust, Berry Street Waste Water Treatment Plant, LP, and the sisters of Mr. Tyson [Member] | Water Plant [Member]        
Related Party Transaction [Line Items]        
Related Party Transaction, Number of Operating Leases | lease   2    
Tyson Family Ownership Percentage   90.00%    
Related Party Transaction, Expenses from Transactions with Related Party   $ 1.0 $ 1.0 $ 1.0
Tyson Limited Partnership [Member] | Class B [Member]        
Related Party Transaction [Line Items]        
Tyson Family Ownership Percentage   99.985%    
Related Party Ownership of Shares Outstanding | shares   70.0    
Tyson Limited Partnership [Member] | Administrative Services [Member]        
Related Party Transaction [Line Items]        
Revenue from Related Parties   $ 0.3    
Tyson Limited Partnership And Tyson Family [Member]        
Related Party Transaction [Line Items]        
Related Party Voting Rights Percentage   70.96%    
Tyson Limited Partnership And Tyson Family [Member] | Class A [Member]        
Related Party Transaction [Line Items]        
Tyson Family Ownership Percentage   2.09%    
Related Party Ownership of Shares Outstanding | shares   6.2    
Donald Smith and John Randal Tyson [Member] | Buchan, Ltd [Member]        
Related Party Transaction [Line Items]        
Related Party Transaction, Amounts of Transaction $ 5.0      
Equity Method Investment, Ownership Percentage 17.50%      
Due from Joint Ventures, Current   $ 9.0    
v3.10.0.1
Commitments (Minimum Lease Commitments Under Non-Cancelable Leases) (Details)
$ in Millions
Sep. 29, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2019 $ 128
2020 98
2021 62
2022 40
2023 29
2024 and beyond 61
Total $ 418
v3.10.0.1
Commitments (Future Purchase Commitments) (Details)
$ in Millions
Sep. 29, 2018
USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]  
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months $ 1,224
Unrecorded Unconditional Purchase Obligation, Due within Two Years 732
Unrecorded Unconditional Purchase Obligation, Due within Three Years 159
Unrecorded Unconditional Purchase Obligation, Due within Four Years 57
Unrecorded Unconditional Purchase Obligation, Due within Five Years 23
Unrecorded Unconditional Purchase Obligation, Due after Five Years 13
Unrecorded Unconditional Purchase Obligation 2,208
Grower Commitments [Member]  
Unrecorded Unconditional Purchase Obligation [Line Items]  
Other Commitment, Due in Next Twelve Months 198
2020 99
2021 93
2022 54
2023 38
2024 and beyond 98
Total $ 580
v3.10.0.1
Commitments (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Guarantor Obligations [Line Items]      
Operating Leases, Rent Expense $ 200 $ 186 $ 172
Lease, Maximum Initial Term 7 years    
Cash Flow Assistance Program, Estimated Allowance For Uncollectible Receivables $ 0 0  
Guarantor Obligations, Current Carrying Value 0 0  
Potential maximum obligation under cash flow assistance program 300    
Total receivables under cash flow assistance program 6 $ 0  
Industrial Revenue Bonds [Member]      
Guarantor Obligations [Line Items]      
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset $ 636    
Guarantee Obligations [Member]      
Guarantor Obligations [Line Items]      
Guarantor Obligations, Maximum Exposure, Period 10 years    
Maximum potential amount $ 16    
Lease Residual Value Guarantees [Domain]      
Guarantor Obligations [Line Items]      
Maximum potential amount $ 91    
Maximum [Member] | Lease Residual Value Guarantees [Domain]      
Guarantor Obligations [Line Items]      
Lease, Maximum Initial Term 10 years    
v3.10.0.1
Contingencies (Narrative) (Details)
1 Months Ended 12 Months Ended
Dec. 21, 2016
USD ($)
Plantiffs
Dec. 21, 2016
PHP (₱)
Plantiffs
Dec. 15, 2016
USD ($)
Plantiffs
Dec. 15, 2016
PHP (₱)
Plantiffs
Dec. 14, 2016
Plantiffs
Aug. 31, 2018
USD ($)
Sep. 30, 2006
USD ($)
Sep. 30, 2006
PHP (₱)
Jun. 23, 2014
USD ($)
Jun. 23, 2014
PHP (₱)
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]                    
Loss Contingencies [Line Items]                    
Loss contingency, damages awarded     $ 275,000,000 ₱ 14,858,495,937     $ 64,000,000 ₱ 3,453,664,710    
Estimated Percentage of Settling Complainants 18.00% 18.00%                
Loss Contingency, Number of Plaintiffs | Plantiffs 5,984 5,984 5,984 5,984 4,922          
Loss Contingency, Estimate of Possible Loss Per Complainant $ 1,300 ₱ 68,000                
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member] | Maximum [Member]                    
Loss Contingencies [Line Items]                    
Loss Contingency, Estimate of Possible Loss                 $ 6,300,000 ₱ 342,287,800
Hillshire Brands Company vs. Mark Lopez [Member]                    
Loss Contingencies [Line Items]                    
Loss contingency, damages awarded | $           $ 13,000,000        
v3.10.0.1
Quarterly Financial Data (Unaudited) (Schedule Of Quarterly Financial Information) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 30, 2017
Sep. 30, 2017
Jul. 01, 2017
Apr. 01, 2017
Dec. 31, 2016
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Sales $ 9,999 $ 10,051 $ 9,773 $ 10,229 $ 10,145 $ 9,850 $ 9,083 $ 9,182 $ 40,052 $ 38,260 $ 36,881
Gross profit 1,349 1,306 1,020 1,451 1,351 1,202 1,047 1,483 5,126 5,083 4,697
Operating Income 828 802 498 927 681 697 571 982 3,055 2,931 2,833
Net Income 537 542 316 1,632 395 448 341 594 3,027 1,778 1,772
Net Income Attributable to Tyson $ 537 $ 541 $ 315 $ 1,631 $ 394 $ 447 $ 340 $ 593 $ 3,024 $ 1,774 $ 1,768
Diluted (USD per share) $ 1.47 $ 1.47 $ 0.85 $ 4.40 $ 1.07 $ 1.21 $ 0.92 $ 1.59 $ 8.19 $ 4.79 $ 4.53
Class A [Member]                      
Basic (USD per share) 1.50 1.52 0.88 4.54 1.10 1.24 0.95 1.64 8.44 4.94 4.67
Class B [Member]                      
Basic (USD per share) $ 1.35 $ 1.37 $ 0.78 $ 4.09 $ 0.98 $ 1.12 $ 0.86 $ 1.49 $ 7.59 $ 4.45 $ 4.24
v3.10.0.1
Quarterly Financial Data (Unaudited) (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 29, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 30, 2017
Sep. 30, 2017
Jul. 01, 2017
Apr. 01, 2017
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Quarterly Financial Data [Line Items]                    
Post Tax Recognition of Tax Benefit from Remeasurement of Net Deferred Tax Liabilities               $ 1,004    
Asset Impairment Charges               175 $ 214 $ 45
Gain on disposition of Business               42 0 $ 0
AdvancePierre [Member]                    
Quarterly Financial Data [Line Items]                    
Business Acquisition, Expense from Purchase Accounting and Acquisition Related Costs         $ 26 $ 77        
AdvancePierre [Member] | Fair Value Adjustment to Inventory [Member]                    
Quarterly Financial Data [Line Items]                    
Business Acquisition, Fair Value Inventory Adjustment         12 24     36  
AdvancePierre [Member] | Acquisition-related Costs [Member]                    
Quarterly Financial Data [Line Items]                    
Business Combination, Acquisition Related Costs         14 35        
AdvancePierre [Member] | Acquisition-related Costs [Member] | Bridge Loan [Member]                    
Quarterly Financial Data [Line Items]                    
Business Combination, Acquisition Related Costs           18        
One Time Cash Bonus [Member]                    
Quarterly Financial Data [Line Items]                    
One-Time Cash Bonus     $ 109              
San Diego Prepared Foods operation [Member] | Prepared Foods [Member]                    
Quarterly Financial Data [Line Items]                    
Asset Impairment Charges             $ 52      
Financial Fitness Program [Member]                    
Quarterly Financial Data [Line Items]                    
Restructuring and Related Cost, Incurred Cost $ 14 $ 14 12 $ 19 150     $ 59 $ 150  
Non-Protein Business [Member]                    
Quarterly Financial Data [Line Items]                    
Benefit Recognized on the Outside Basis Difference in an Asset Held for Sale           $ 26        
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | Non-Protein Business [Member]                    
Quarterly Financial Data [Line Items]                    
Asset Impairment Charges, Net of (Gain) Loss on Disposition of Business       4            
Asset Impairment Charges     75   $ 45          
Gain on disposition of Business $ 11                  
After Tax [Member]                    
Quarterly Financial Data [Line Items]                    
Post Tax Recognition of Tax Benefit from Remeasurement of Net Deferred Tax Liabilities     $ 9 $ 994            
v3.10.0.1
Valuation And Qualifying Accounts (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 29, 2018
Sep. 30, 2017
Oct. 01, 2016
Allowance for Doubtful Accounts [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 34 $ 33 $ 27
Charged to Costs and Expenses 3 10 10
Charged to Other Accounts 0 0 0
(Deductions) (18) (9) (4)
Balance at End of Period 19 34 33
Inventory Lower of Cost or Market Allowance [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 3 39 58
Charged to Costs and Expenses 68 5 70
Charged to Other Accounts 0 0 0
(Deductions) (46) (41) (89)
Balance at End of Period 25 3 39
Valuation Allowance on Deferred Tax Assets [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 75 72 68
Charged to Costs and Expenses 12 4 10
Charged to Other Accounts 0 0 0
(Deductions) (8) (1) (6)
Balance at End of Period $ 79 $ 75 $ 72