TYSON FOODS, INC., 10-Q filed on 5/6/2019
Quarterly Report
v3.19.1
Document and Entity Information
 6 Months Ended
Mar. 30, 2019
$ / shares
shares
Document Type 10-Q
Document Period End Date Mar. 30, 2019
Entity File Number 001-14704
Entity Registrant Name TYSON FOODS, INC.
Entity Incorporation, State Country Name Delaware
Entity Tax Identification Number 71-0225165
Entity Addresses [Line Items] 2200 West Don Tyson Parkway, Springdale, Arkansas
Entity Address, Postal Zip Code 72762-6999
Local Phone Number (479) 290-4000
Entity Current Reporting Status Yes
Entity Current Interactive Data Filing Status Yes
Entity Filer Category Large Accelerated Filer
Entity Central Index Key 0000100493
Current Fiscal Year End Date --09-28
Document Fiscal Year Focus 2019
Document Fiscal Period Focus Q2
Amendment Flag false
Entity Emerging Growth Company false
Entity Small Business false
Class A [Member]  
Entity Listing, Description Class A Common Stock
Entity Listing, Par Value Per Share | $ / shares $ 0.10
Trading Symbol TSN
Entity Common Stock, Shares Outstanding 294,804,084
Class B [Member]  
Entity Common Stock, Shares Outstanding 70,010,355
Exchange [Domain] | Class A [Member]  
Entity Listing, Description New York Stock Exchange
v3.19.1
Consolidated Condensed Statements Of Income - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Sales $ 10,443 $ 9,773 $ 20,636 $ 20,002
Cost of Sales 9,251 8,758 18,089 17,544
Gross Profit 1,192 1,015 2,547 2,458
Operating Expenses:        
Selling, General and Administrative 557 521 1,105 1,042
Operating Income 635 494 1,442 1,416
Other (Income) Expense:        
Interest income (5) (2) (7) (4)
Interest expense 119 86 218 174
Other, net (7) (13) (10) (19)
Total Other (Income) Expense 107 71 201 151
Income before Income Taxes 528 423 1,241 1,265
Income Tax Expense (Benefit) 98 107 259 (683)
Net Income 430 316 982 1,948
Less: Net Income Attributable to Noncontrolling Interests 4 1 5 2
Net Income Attributable to Tyson $ 426 $ 315 $ 977 $ 1,946
Weighted Average Shares Outstanding:        
Diluted, Shares 366 370 366 371
Net Income Per Share Attributable to Tyson:        
Diluted (USD per share) $ 1.17 $ 0.85 $ 2.67 $ 5.25
Class A [Member]        
Weighted Average Shares Outstanding:        
Basic, Shares 294 296 294 296
Net Income Per Share Attributable to Tyson:        
Basic (USD per share) $ 1.20 $ 0.88 $ 2.74 $ 5.42
Class B [Member]        
Weighted Average Shares Outstanding:        
Basic, Shares 70 70 70 70
Net Income Per Share Attributable to Tyson:        
Basic (USD per share) $ 1.07 $ 0.78 $ 2.46 $ 4.87
v3.19.1
Consolidated Condensed Statements of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Statement of Comprehensive Income [Abstract]        
Net Income $ 430 $ 316 $ 982 $ 1,948
Other Comprehensive Income (Loss), Net of Taxes:        
Derivatives accounted for as cash flow hedges (3) 3 (12) 2
Investments 0 0 1 0
Currency translation 25 5 33 6
Postretirement benefits 0 (6) (3) (4)
Total Other Comprehensive Income (Loss), Net of Taxes 22 2 19 4
Comprehensive Income 452 318 1,001 1,952
Less: Comprehensive Income Attributable to Noncontrolling Interests 4 1 5 2
Comprehensive Income Attributable to Tyson $ 448 $ 317 $ 996 $ 1,950
v3.19.1
Consolidated Condensed Balance Sheets - USD ($)
$ in Millions
Mar. 30, 2019
Sep. 29, 2018
Assets    
Cash and cash equivalents $ 360 $ 270
Accounts receivable, net 1,837 1,723
Inventories 3,899 3,513
Other current assets 280 182
Total Current Assets 6,376 5,688
Net Property, Plant and Equipment 7,085 6,169
Goodwill 10,946 9,739
Intangible Assets, net 7,295 6,759
Other Assets 796 754
Total Assets 32,498 29,109
Liabilities and Shareholders' Equity    
Current debt 1,564 1,911
Accounts payable 1,710 1,694
Other current liabilities 1,340 1,426
Total Current Liabilities 4,614 5,031
Long-Term Debt 10,810 7,962
Deferred Income Taxes 2,278 2,107
Other Liabilities 1,238 1,198
Commitments and Contingencies (Note 17)
Shareholders' Equity:    
Capital in excess of par value 4,350 4,387
Retained earnings 13,012 12,329
Accumulated other comprehensive gain (loss) 4 (15)
Treasury stock, at cost – 83 million shares at March 30, 2019 and 82 million shares at September 29, 2018 (3,988) (3,943)
Total Tyson Shareholders’ Equity 13,423 12,803
Noncontrolling Interests 135 8
Total Shareholders’ Equity 13,558 12,811
Total Liabilities and Shareholders’ Equity 32,498 29,109
Class A [Member]    
Shareholders' Equity:    
Common stock ($0.10 par value): 38 38
Total Tyson Shareholders’ Equity 38 38
Class B [Member]    
Shareholders' Equity:    
Common stock ($0.10 par value): 7 7
Total Tyson Shareholders’ Equity $ 7 $ 7
v3.19.1
Consolidated Condensed Balance Sheets (Parentheticals) - $ / shares
shares in Millions
Mar. 30, 2019
Sep. 29, 2018
Treasury Stock, shares 83 82
Class A [Member]    
Common stock, par value $ 0.10 $ 0.10
Common stock, shares authorized 900 900
Common stock, shares issued 378 378
Class B [Member]    
Common stock, par value $ 0.10 $ 0.10
Common stock, shares authorized 900 900
Common stock, shares issued 70 70
v3.19.1
Consolidated Condensed Statements of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Capital in Excess of Par Value:
Retained Earnings:
Accumulated Other Comprehensive Income (Loss), Net of Tax:
Treasury Stock:
Total Shareholders’ Equity Attributable to Tyson
Equity Attributable to Noncontrolling Interests:
Class A [Member]
Class B [Member]
Balance at beginning of quarter, Common Stock Shares at Sep. 30, 2017               378.0 70.0
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Sep. 30, 2017   $ 4,378 $ 9,776 $ 16 $ (3,674)     $ 38 $ 7
Balance at beginning of quarter, Treasury Stock shares at Sep. 30, 2017         80.0        
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 30, 2017             $ 18    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Stock-based compensation   (16)     $ 141        
Net income attributable to Tyson $ 1,946   1,946            
Dividends     (243)         $ (201) $ (42)
Other Comprehensive Income 4     4          
Purchase of Class A common stock, shares         3.0     3.1  
Purchase of Class A common stock         $ (237)        
Stock-based compensation, shares         (3.0)        
Net income attributable to noncontrolling interests 2           (2)    
Business combination and other             0    
Balance at end of quarter, Common Stock Shares at Mar. 31, 2018               378.0 70.0
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Mar. 31, 2018   4,362 11,479 20 $ (3,770) $ 12,136   $ 38 $ 7
Balance at end of quarter, Treasury Stock shares at Mar. 31, 2018         80.0        
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Mar. 31, 2018             20    
Balance at beginning of quarter, Common Stock Shares at Dec. 30, 2017               378.0 70.0
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Dec. 30, 2017   4,346 11,272 18 $ (3,726)     $ 38 $ 7
Balance at beginning of quarter, Treasury Stock shares at Dec. 30, 2017         80.0        
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Dec. 30, 2017             19    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Stock-based compensation   16     $ 29        
Net income attributable to Tyson 315   315            
Dividends     (108)         $ (90) $ (18)
Other Comprehensive Income 2     2          
Purchase of Class A common stock, shares         1.0     1.0  
Purchase of Class A common stock         $ (73)        
Stock-based compensation, shares         (1.0)        
Net income attributable to noncontrolling interests 1           (1)    
Business combination and other             0    
Balance at end of quarter, Common Stock Shares at Mar. 31, 2018               378.0 70.0
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Mar. 31, 2018   4,362 11,479 20 $ (3,770) 12,136   $ 38 $ 7
Balance at end of quarter, Treasury Stock shares at Mar. 31, 2018         80.0        
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Mar. 31, 2018             20    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Balance at end of quarter, Total Shareholders' Equity 12,156                
Balance at end of quarter, Total Shareholders' Equity 12,811                
Balance at beginning of quarter, Common Stock Shares at Sep. 29, 2018               378.0 70.0
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Sep. 29, 2018 $ 12,803 4,387 12,329 (15) $ (3,943)     $ 38 $ 7
Balance at beginning of quarter, Treasury Stock shares at Sep. 29, 2018 82.0       82.0        
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 29, 2018 $ 8           8    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Other Comprehensive Income       22          
Balance at end of quarter, Common Stock Shares at Dec. 29, 2018               378.0 70.0
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Dec. 29, 2018   4,332 12,719 (18) $ (3,951)     $ 38 $ 7
Balance at end of quarter, Treasury Stock shares at Dec. 29, 2018         82.0        
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Dec. 29, 2018             132    
Balance at beginning of quarter, Common Stock Shares at Sep. 29, 2018               378.0 70.0
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Sep. 29, 2018 $ 12,803 4,387 12,329 (15) $ (3,943)     $ 38 $ 7
Balance at beginning of quarter, Treasury Stock shares at Sep. 29, 2018 82.0       82.0        
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 29, 2018 $ 8           8    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Stock-based compensation   (37)     $ 101        
Net income attributable to Tyson 977   977            
Dividends     (294)         $ (243) $ (51)
Other Comprehensive Income 19     19          
Purchase of Class A common stock, shares         2.0     2.4  
Purchase of Class A common stock         $ (146)        
Stock-based compensation, shares         (1.0)        
Net income attributable to noncontrolling interests 5           (5)    
Business combination and other             122    
Balance at end of quarter, Common Stock Shares at Mar. 30, 2019               378.0 70.0
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Mar. 30, 2019 $ 13,423 4,350 13,012 4 $ (3,988) 13,423   $ 38 $ 7
Balance at end of quarter, Treasury Stock shares at Mar. 30, 2019 83.0       83.0        
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Mar. 30, 2019 $ 135           135    
Balance at beginning of quarter, Common Stock Shares at Dec. 29, 2018               378.0 70.0
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Dec. 29, 2018   4,332 12,719 (18) $ (3,951)     $ 38 $ 7
Balance at beginning of quarter, Treasury Stock shares at Dec. 29, 2018         82.0        
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Dec. 29, 2018             132    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Stock-based compensation   18     $ 26        
Net income attributable to Tyson 426   426            
Dividends     (133)         $ (110) $ (23)
Other Comprehensive Income 22                
Purchase of Class A common stock, shares         1.0     1.0  
Purchase of Class A common stock         $ (63)        
Stock-based compensation, shares         0.0        
Net income attributable to noncontrolling interests 4           (4)    
Business combination and other             (1)    
Balance at end of quarter, Common Stock Shares at Mar. 30, 2019               378.0 70.0
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Mar. 30, 2019 $ 13,423 $ 4,350 $ 13,012 $ 4 $ (3,988) $ 13,423   $ 38 $ 7
Balance at end of quarter, Treasury Stock shares at Mar. 30, 2019 83.0       83.0        
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Mar. 30, 2019 $ 135           $ 135    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Balance at end of quarter, Total Shareholders' Equity $ 13,558                
v3.19.1
Consolidated Condensed Statements Of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Cash Flows From Operating Activities:    
Net Income $ 982 $ 1,948
Depreciation and amortization 523 459
Deferred income taxes 4 (938)
Other, net 69 132
Net changes in operating assets and liabilities 639 462
Cash Provided by Operating Activities 939 1,139
Cash Flows From Investing Activities:    
Additions to property, plant and equipment (656) (559)
Purchases of marketable securities (30) (22)
Proceeds from sale of marketable securities 29 21
Acquisitions, net of cash acquired (2,141) (226)
Proceeds from sale of business 0 125
Other, net 32 (25)
Cash Used for Investing Activities (2,766) (686)
Cash Flows From Financing Activities:    
Proceeds from issuance of debt 4,600 0
Payments on debt 1,849 432
Borrowings on revolving credit facility 335 1,420
Payments on revolving credit facility (335) (1,420)
Proceeds from issuance of commercial paper 10,145 10,837
Repayments of commercial paper (10,567) (10,615)
Purchases of Tyson Class A common stock (146) (237)
Dividends (269) (216)
Stock options exercised 24 87
Other, net (26) 0
Cash Provided by (Used for) Financing Activities 1,912 (576)
Effect of Exchange Rate Changes on Cash 5 3
Increase (Decrease) in Cash and Cash Equivalents 90 (120)
Cash and Cash Equivalents at Beginning of Year 270 318
Cash and Cash Equivalents at End of Period $ 360 $ 198
v3.19.1
Accounting Policies
 6 Months Ended
Mar. 30, 2019
Policy Text Block [Abstract]  
Accounting Policies ACCOUNTING POLICIES
Basis of Presentation
The consolidated condensed financial statements are unaudited and have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations of the United States Securities and Exchange Commission. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 29, 2018. Preparation of consolidated condensed financial statements requires us to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of March 30, 2019, and the results of operations for the three and six months ended March 30, 2019, and March 31, 2018. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.
Consolidation
The consolidated condensed financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Revenue Recognition
We recognize revenue mainly through consumer products retail, foodservice, international, industrial and other distribution channels. Our revenues primarily result from contracts with customers and are generally short term in nature with the delivery of product as the single performance obligation. We recognize revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred to our customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. We elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than an additional promised service. Our contracts are generally less than one year, and therefore we recognize costs paid to third party brokers to obtain contracts as expenses. Additionally, items that are not material in the context of the contract are recognized as expense. Any taxes collected on behalf of government authorities are excluded from net revenues.
Revenue is measured by the transaction price, which is defined as the amount of consideration we expect to receive in exchange for providing goods to customers. The transaction price is adjusted for estimates of known or expected variable consideration, which includes consumer incentives, trade promotions, and allowances, such as coupons, discounts, rebates, volume-based incentives, cooperative advertising, and other programs. Variable consideration related to these programs is recorded as a reduction to revenue based on amounts we expect to pay. We base these estimates on current performance, historical utilization, and projected redemption rates of each program. We review and update these estimates regularly until the incentives or product returns are realized and the impact of any adjustments are recognized in the period the adjustments are identified. In many cases, key sales terms such as pricing and quantities ordered are established on a regular basis such that most customer arrangements and related incentives have a duration of less than one year. Amounts billed and due from customers are short term in nature and are classified as receivables since payments are unconditional and only the passage of time is required before payments are due. Additionally, we do not grant payment financing terms greater than one year.
Recently Issued Accounting Pronouncements
In August 2017, the Financial Accounting Standards Board ("FASB") issued guidance that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components excluded from the assessment. Some of the modifications include the ineffectiveness of derivative gain/loss in highly effective cash flow hedges to be recorded in Other Comprehensive Income, alignment of the recognition and presentation of the effects related to the hedging instrument and hedged item in the financial statements, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging on financial statement lines for components excluded from the assessment. The amendment also simplifies the application of hedge accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. Upon adoption, we do not expect this guidance will have a material impact on our consolidated financial statements.
In March 2017, the FASB issued guidance that shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In June 2016, the FASB issued guidance that provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. Early adoption is permitted for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. The application of the guidance requires various transition methods depending on the specific amendment. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In February 2016, the FASB issued guidance that created new accounting and reporting guidelines for leasing arrangements. The guidance requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The guidance also requires qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective method should be applied. While we are still evaluating the impact this guidance will have on our consolidated financial statements and related disclosures, we have completed our initial scoping reviews and have made progress in our assessment phase as we continue to identify our leasing processes that will be impacted by the new standard. We have also made progress in developing the policy elections we will make upon adoption and we are implementing software to meet the reporting requirements of this standard. We expect our financial statement disclosures will be expanded to present additional details of our leasing arrangements. Although we expect the impacts to be material, at this time we are unable to reasonably estimate the expected increase in assets and liabilities on our consolidated balance sheets or the impacts to our consolidated financial statements upon adoption.
Changes in Accounting Principles
In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. The prospective transition method should be applied to all qualified implementation costs incurred after the adoption date. We elected to early adopt this guidance beginning in the first quarter of fiscal 2019, and it did not have a material impact on our consolidated financial statements.
In May 2017, the FASB issued guidance that clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The prospective transition method should be applied to awards modified on or after the adoption date. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.
In March 2017, the FASB issued guidance that changes the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost will be included within the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost will be presented separately outside of operating income. Additionally, only the service cost component will be eligible for capitalization when applicable. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The retrospective transition method should be applied for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement, and the prospective transition method should be applied, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The guidance includes a practical expedient allowing entities to estimate amounts for comparative periods using the information previously disclosed in the pension and other postretirement benefit plan footnote. We adopted this guidance in the first quarter of fiscal 2019 on a retrospective basis using the practical expedient and it did not have a material impact on our consolidated financial statements.
The following reconciliations provide the effect of the reclassification of the net periodic benefit cost from operating expenses to other (income) expense in our consolidated statements of income for the three and six months ended March 31, 2018 (in millions):
Three Months Ended March 31, 2018:
As Previously Reported
Adjustments
As Recast
Cost of Sales
$
8,753

$
5

$
8,758

Selling, General and Administrative
$
522

$
(1
)
$
521

Operating Income
$
498

$
(4
)
$
494

Other (Income) Expense
$
75

$
(4
)
$
71

Six Months Ended March 31, 2018:
As Previously Reported
Adjustments
As Recast
Cost of Sales
$
17,531

$
13

$
17,544

Selling, General and Administrative
$
1,046

$
(4
)
$
1,042

Operating Income
$
1,425

$
(9
)
$
1,416

Other (Income) Expense
$
160

$
(9
)
$
151


In November 2016, the FASB issued guidance that requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.
In October 2016, the FASB issued guidance that requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The modified retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.
In August 2016, the FASB issued guidance that aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.
In January 2016, the FASB issued guidance that requires most equity investments be measured at fair value, with subsequent other changes in fair value recognized in net income. The guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements on the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. It should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, unless equity securities do not have readily determinable fair values, in which case the amendments should be applied prospectively. We adopted this guidance in the first quarter of fiscal 2019. We did not use prospective amendments for any investments and adoption did not have a material impact on our consolidated financial statements.
In May 2014, the FASB issued guidance that changes the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts, including disaggregated revenue disclosures. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. We adopted this guidance in the first quarter of fiscal 2019 using the modified retrospective transition method. Prior periods were not adjusted and, based on our implementation assessment, no cumulative-effect adjustment was made to the opening balance of retained earnings. The adoption of this standard did not have a material impact on our consolidated financial statements. For further description of our revenue recognition policy refer to the Revenue Recognition section above and for disaggregated revenue information refer to Part I, Item 1, Notes to the Consolidated Condensed Financial Statements, Note 16: Segment Reporting.
v3.19.1
Acquisitions and Dispositions
 6 Months Ended
Mar. 30, 2019
Business Combinations [Abstract]  
Acquisitions and Dispositions ACQUISITIONS AND DISPOSITIONS
Acquisitions
On February 6, 2019, the Company announced it had reached a definitive agreement to acquire the Thai and European operations of BRF S.A. ("BRF") for $340 million in cash, subject to certain adjustments. This acquisition builds on our growth strategy to expand offerings of value-added protein in global markets. The transaction is expected to close in our fiscal third quarter 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 operations' results will be included in Other for segment presentation.
On November 30, 2018, we acquired all of the outstanding common stock of MFG (USA) Holdings, Inc. and McKey Luxembourg Holdings S.à.r.l. (“Keystone Foods”) from Marfrig Global Foods ("Marfrig") for $2.3 billion in cash, subject to certain adjustments. We initially funded the acquisition with existing cash on hand, net proceeds from the issuance of a 364-day term loan and borrowings under our commercial paper program. In February 2019, we used the net proceeds from the issuance of senior notes to repay amounts outstanding under the 364-day term loan and commercial paper obligations. Keystone Foods' domestic and international results, subsequent to the acquisition closing, are included in our Chicken segment and Other, respectively.
The following table summarizes the preliminary purchase price allocation and fair values of the assets acquired and liabilities assumed at the acquisition date, which is subject to change pending finalization of working capital adjustments. Certain estimated values for the acquisition, including goodwill, intangible assets, inventory, property, plant and equipment, and deferred income taxes, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The purchase price was allocated based on information currently available as of the acquisition date. During the second quarter of fiscal 2019, we recorded measurement period adjustments which increased goodwill by $105 million, primarily consisting of a reduction of Intangible Assets of $86 million, a reduction of Property, Plant and Equipment of $45 million, a reduction of Deferred Income Taxes of $37 million and a reduction of Accounts Receivable of $15 million.
 
in millions
 
Cash and cash equivalents
 
$
186

Accounts receivable
 
103

Inventories
 
257

Other current assets
 
34

Property, Plant and Equipment
 
680

Goodwill
 
1,178

Intangible Assets
 
659

Other Assets
 
28

Current debt
 
(73
)
Accounts payable
 
(206
)
Other current liabilities
 
(100
)
Long-Term Debt
 
(113
)
Deferred Income Taxes
 
(176
)
Other Liabilities
 
(8
)
Noncontrolling Interests
 
(122
)
Net assets acquired
 
$
2,327


The fair value of identifiable intangible assets primarily consisted of customer relationships with a weighted average life of 25 years. As a result of the acquisition, we recognized a total of $1,178 million of goodwill. The purchase price was assigned to assets acquired and liabilities assumed based on their preliminary estimated fair values as of the date of acquisition, and any excess was allocated to goodwill, as shown in the table above. Goodwill represents the value we expect to achieve through the implementation of operational synergies and growth opportunities. The preliminary allocation of goodwill to our segments was $822 million and $356 million to our Chicken segment and Other, respectively. We do not expect the goodwill to be deductible for U.S. income tax purposes.
We used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow, relief-from-royalty, market pricing multiple and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates, EBITDA multiples, and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data.
The acquisition of Keystone Foods was accounted for using the acquisition method of accounting and, consequently, the results of operations for Keystone Foods are reported in our consolidated financial statements from the date of acquisition. Keystone's results from the date of the acquisition through March 30, 2019, which included a net increase of $767 million of Sales, were insignificant to our overall Consolidated Condensed Statements of Income.
On August 20, 2018, we acquired the assets of American Proteins, Inc. and AMPRO Products, Inc. ("American Proteins"), a poultry rendering and blending operation for $864 million, subject to net working capital adjustments, as part of our strategic expansion and sustainability initiatives. Its results, subsequent to the acquisition closing, are included in our Chicken segment. Certain estimated values for the acquisition, including goodwill, intangible assets, and property, plant and equipment, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The preliminary purchase price allocation includes $56 million of net working capital, $152 million of Property, Plant and Equipment, $411 million of Intangible Assets, $258 million of Goodwill, and $13 million of Other liabilities. Intangible Assets primarily included $358 million assigned to supply network which will be amortized over 14 years and $51 million assigned to customer relationships which will be amortized over a weighted average of 12 years. All of the goodwill acquired is amortizable for tax purposes. During the second quarter of fiscal 2019, we settled the net-working capital purchase price adjustment reducing the purchase price by $2 million and recorded measurement period adjustments which increased goodwill by $16 million, including a reduction to net working capital of $15 million and a reduction to Property, Plant and Equipment of $3 million.
On June 4, 2018, we acquired Tecumseh Poultry, LLC ("Tecumseh"), a vertically integrated value-added protein business for $382 million, net of cash acquired, as part of our strategy to grow in the high quality, branded poultry market. Its results, subsequent to the acquisition closing, are included in our Chicken segment. Certain estimated values for the acquisition, including goodwill, intangible assets, and property, plant and equipment, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The preliminary purchase price allocation included $13 million of net working capital, including $1 million of cash acquired, $49 million of Property, Plant and Equipment, $227 million of Intangible Assets and $94 million of Goodwill. Intangible Assets included $193 million assigned to brands and trademarks which will be amortized over 20 years. All of the goodwill acquired is amortizable for tax purposes.
On November 10, 2017, we acquired Original Philly Holdings, Inc. ("Original Philly"), a value-added protein business, for $226 million, net of cash acquired, as part of our strategic expansion initiative. Its results, subsequent to the acquisition closing, are included in our Prepared Foods and Chicken segments. The purchase price allocation included $21 million of net working capital, including $10 million of cash acquired, $13 million of Property, Plant and Equipment, $90 million of Intangible Assets and $111 million of Goodwill. We completed the allocation of goodwill to our segments in the second quarter of fiscal 2018 using the acquisition method approach. This resulted in $82 million and $29 million of goodwill allocated to our Prepared Foods and Chicken segments, respectively. All of the goodwill acquired is amortizable for tax purposes.
Dispositions
On April 24, 2017, we announced our intent to sell three non-protein businesses as part of our strategic focus on protein brands. These businesses, which were all part of our Prepared Foods segment, included Sara Lee® Frozen Bakery, Kettle and Van’s® and produce items such as frozen desserts, waffles, snack bars, and soups, sauces and sides. The sale also included the Chef Pierre®, Bistro Collection®, Kettle Collection™, and Van’s® brands, a license to use the Sara Lee® brand in various channels, as well as our Tarboro, North Carolina, Fort Worth, Texas, and Traverse City, Michigan, prepared foods facilities.
We completed the sale of our Kettle business on December 30, 2017, and received net proceeds of $125 million including a working capital adjustment. As a result of the sale, we recorded a pretax gain of $22 million, which is reflected in Cost of Sales in our Consolidated Condensed Statement of Income for the six months ended March 31, 2018. We utilized the net proceeds to pay down term loan debt.
We completed the sale of our Sara Lee® Frozen Bakery and Van’s® businesses on July 30, 2018 for $623 million including a working capital adjustment. Prior to the sale, we recorded pretax impairment charges totaling $75 million and $101 million for the three and six months ended March 31, 2018, respectively, due to revised estimates of the businesses' fair value based on current expected net sales proceeds. The impairment charges were recorded in Cost of Sales in our Consolidated Condensed Statement of Income, and primarily consisted of goodwill previously classified within assets held for sale.
In the first quarter of fiscal 2018, we made the decision to sell TNT Crust, our pizza crust business, which was also included in our Prepared Foods segment, as part of our strategic focus on protein brands. We completed the sale of this business on September 2, 2018, for $57 million net of adjustments.
v3.19.1
Inventories
 6 Months Ended
Mar. 30, 2019
Inventory Disclosure [Abstract]  
Inventories INVENTORIES
Processed products, livestock and supplies and other are valued at the lower of cost and net realizable value. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
At March 30, 2019, 69% of the cost of inventories was determined by the first-in, first-out ("FIFO") method as compared to 63% at September 29, 2018. The remaining cost of inventories for both periods is determined by the weighted-average method.
The following table reflects the major components of inventory (in millions):
 
March 30, 2019
 
September 29, 2018
Processed products
$
2,132

 
$
1,981

Livestock
1,203

 
1,006

Supplies and other
564

 
526

Total inventory
$
3,899

 
$
3,513
v3.19.1
Property, Plant And Equipment
 6 Months Ended
Mar. 30, 2019
Property, Plant and Equipment, Net [Abstract]  
Property, Plant And Equipment PROPERTY, PLANT AND EQUIPMENT
The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): 

March 30, 2019
 
September 29, 2018
Land
$
174

 
$
154

Buildings and leasehold improvements
4,537

 
4,115

Machinery and equipment
8,230

 
7,720

Land improvements and other
366

 
357

Buildings and equipment under construction
952

 
689

 
14,259

 
13,035

Less accumulated depreciation
7,174

 
6,866

Net property, plant and equipment
$
7,085

 
$
6,169
v3.19.1
Restructuring and Related Charges
 6 Months Ended
Mar. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Related Charges RESTRUCTURING AND RELATED CHARGES
In the fourth quarter of fiscal 2017, our Board of Directors approved a multi-year restructuring program (the “Financial Fitness Program”), which is expected to contribute to the Company’s overall strategy of financial fitness through increased operational effectiveness and overhead reduction. The Company currently anticipates the Financial Fitness Program will result in cumulative pretax charges, once implemented, of approximately $253 million which consist primarily of severance and employee related costs, impairments and accelerated depreciation of technology assets, incremental costs to implement new technology, and contract termination costs. 
Through March 30, 2019, $225 million of the estimated $253 million total pretax charges has been recognized. The majority of the remaining estimated charges relate to incremental costs to implement new technology.
We recognized restructuring and related charges of $8 million and $16 million for the three and six months ended March 30, 2019, respectively, and $12 million and $31 million for the three and six months ended March 31, 2018, respectively, associated with the Financial Fitness Program. These costs were recorded in Selling, General and Administrative in our Consolidated Condensed Statements of Income and represent incremental costs to implement new technology and accelerated depreciation of technology assets.
Our restructuring liability was $2 million and $10 million at March 30, 2019, and September 29, 2018, respectively. The change in the restructuring liability was due to payments of $8 million during the six months ended March 30, 2019.
v3.19.1
Other Current Liabilities
 6 Months Ended
Mar. 30, 2019
Other Liabilities, Current [Abstract]  
Other Current Liabilities OTHER CURRENT LIABILITIES
Other current liabilities are as follows (in millions):
 
March 30, 2019
 
September 29, 2018
Accrued salaries, wages and benefits
$
577

 
$
549

Income taxes payable
16

 
72

Other
747

 
805

Total other current liabilities
$
1,340

 
$
1,426
v3.19.1
Debt
 6 Months Ended
Mar. 30, 2019
Debt Instruments [Abstract]  
Debt DEBT
The major components of debt are as follows (in millions):
 
March 30, 2019
 
September 29, 2018
Revolving credit facility
$
—

 
$
—

Commercial paper
182

 
605

Senior notes:
 
 
 
Notes due May 2019 (2.94% at 3/30/2019)
300

 
300

2.65% Notes due August 2019
1,000

 
1,000

Notes due June 2020 (3.04% at 3/30/2019)
350

 
350

Notes due August 2020 (2.93% at 3/30/2019)
400

 
400

4.10% Notes due September 2020
280

 
281

2.25% Notes due August 2021
500

 
500

4.50% Senior notes due June 2022
1,000

 
1,000

3.90% Senior notes due September 2023
400

 
400

3.95% Notes due August 2024
1,250

 
1,250

4.00% Notes due March 2026 ("2026 Notes")
800

 
—

3.55% Notes due June 2027
1,350

 
1,350

7.00% Notes due January 2028
18

 
18

4.35% Notes due March 2029 ("2029 Notes")
1,000

 
—

6.13% Notes due November 2032
161

 
161

4.88% Notes due August 2034
500

 
500

5.15% Notes due August 2044
500

 
500

4.55% Notes due June 2047
750

 
750

5.10% Notes due September 2048 ("2048 Notes")
1,500

 
500

Discount on senior notes
(49
)
 
(15
)
Other
252

 
73

Unamortized debt issuance costs
(70
)
 
(50
)
Total debt
12,374

 
9,873

Less current debt
1,564

 
1,911

Total long-term debt
$
10,810

 
$
7,962


Revolving Credit Facility and Letters of Credit
We have a $1.75 billion revolving credit facility that supports short-term funding needs and serves as a backstop to our commercial paper program which will mature and the commitments thereunder will terminate in March 2023. Amounts available for borrowing under this facility totaled $1.75 billion at March 30, 2019, before deducting amounts to backstop our commercial paper program. At March 30, 2019, we had no outstanding borrowings and no outstanding letters of credit issued under this facility. At March 30, 2019, we had $111 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of leasing and workers’ compensation insurance programs and other legal obligations.
In the future, if any of our subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall be required to guarantee the indebtedness, obligations and liabilities under this facility.
Commercial Paper Program
We have a commercial paper program under which we may issue unsecured short-term promissory notes ("commercial paper") up to an aggregate maximum principal amount of $1 billion as of March 30, 2019. As of March 30, 2019, we had $182 million of commercial paper outstanding at a weighted average interest rate of 2.64% with maturities of less than 15 days.
2026/2029/2048 Notes
In February 2019, we issued senior unsecured notes with an aggregate principal amount of $1.8 billion, consisting of $800 million due March 2026 and $1 billion due March 2029. Additionally, we reopened the 2048 Notes issuing an additional $1 billion, bringing the aggregate principal amount outstanding on the 2048 Notes to $1.5 billion. The net proceeds from the issuances were used to repay amounts outstanding under our 364-Day Term Loan Agreement and commercial paper obligations and to fund all or a portion of the purchase price for the pending acquisition of the BRF Thai and European operations. The 2026 Notes carry a fixed interest rate of 4.00% and the 2029 Notes carry a fixed interest rate of 4.35%. Interest payments on the 2026 and 2029 Notes are due semi-annually on March 1 and September 1. After the original issue discounts of $36 million, we received net proceeds of $2,764 million and incurred debt issuance costs of $26 million related to the issuances.
364-Day Term Loan
In November 2018, as part of the financing for the Keystone Foods acquisition, we borrowed $1.8 billion under an unsecured term loan facility, which was due November 2019. The interest rate was set based on the selected LIBOR interest period plus 1.125%. In the second quarter of fiscal 2019, we extinguished the $1.8 billion outstanding balance using funds borrowed under the 2026 and 2029 Notes and funds borrowed under the reopening of the 2048 Notes.
Debt Covenants
Our revolving credit facility contains affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; make acquisitions and investments; dispose of or transfer assets; change the nature of our business; engage in certain transactions with affiliates; and enter into hedging transactions, in each case, subject to certain qualifications and exceptions. In addition, we are required to maintain minimum interest expense coverage and maximum debt-to-capitalization ratios.
Our senior notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens; engage in certain sale/leaseback transactions; and engage in certain consolidations, mergers and sales of assets.
We were in compliance with all debt covenants at March 30, 2019.
v3.19.1
Equity
 6 Months Ended
Mar. 30, 2019
Equity [Abstract]  
Equity EQUITY
Share Repurchases
As of March 30, 2019, 21.3 million shares remained available for repurchase under our share repurchase program. The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, our working capital needs, markets, industry conditions, liquidity targets, limitations under our debt obligations and regulatory requirements. In addition to the share repurchase program, we purchase shares on the open market to fund certain obligations under our equity compensation plans. A summary of share repurchases of our Class A stock is as follows (in millions):
 
 
Three Months Ended
 
Six Months Ended
 
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
0.8

 
$
50

 
0.8

 
$
60

 
1.7

 
$
100

 
2.3

 
$
180

To fund certain obligations under equity compensation plans
 
0.2

 
13

 
0.2

 
13

 
0.7

 
46

 
0.8

 
57

Total share repurchases
 
1.0

 
$
63

 
1.0

 
$
73

 
2.4

 
$
146

 
3.1

 
$
237
v3.19.1
Income Taxes
 6 Months Ended
Mar. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Our effective tax rate was 18.5% and 25.3% for the second quarter of fiscal 2019 and 2018, respectively, and 20.9% and (54.0)% for the first six months of fiscal 2019 and 2018, respectively. The effective tax rates for the second quarter and first six months of fiscal 2019 include the impact of state taxes, a deferred tax benefit resulting from final transition tax regulations released in the second quarter of fiscal 2019 and a tax reserves benefit due to expirations of applicable statutes of limitations. The remeasurement of deferred income taxes at newly enacted tax rates as a result of the “Tax Cuts and Jobs Act” (the “Tax Act”) resulted in a (2.2)% and (79.3)% impact on the effective tax rate in the second quarter and first six months of fiscal 2018, respectively. Additionally, the effective tax rates for the second quarter and first six months of fiscal 2018 were impacted by excess tax benefits associated with share-based payments to employees, the domestic production deduction, the non-deductible impairment related to the anticipated sale of non-protein businesses held for sale, and state taxes.
Unrecognized tax benefits were $303 million and $308 million, at March 30, 2019 and September 29, 2018, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease by approximately $60 million primarily due to expiration of statutes of limitations in various jurisdictions and settlements with taxing authorities.
v3.19.1
Other Income And Charges
 6 Months Ended
Mar. 30, 2019
Other Income and Expenses [Abstract]  
Other Income And Charges OTHER INCOME AND CHARGES
During the first six months of fiscal 2019, we recognized $19 million of net periodic pension and postretirement benefit cost, excluding the service cost component, and recorded the amount in the Consolidated Condensed Statements of Income in Other, net. Additionally, we recognized $11 million of equity earnings in joint ventures, which was also recorded in the Consolidated Condensed Statements of Income in Other, net.
During the second quarter of fiscal 2018, we recognized a one-time cash bonus to our hourly frontline employees of $109 million using incremental cash savings from the Tax Act, which was predominantly recorded in the Consolidated Condensed Statements of Income in Cost of Sales.
During the first six months of fiscal 2018, we recognized $9 million of equity earnings in joint ventures, which was recorded in the Consolidated Condensed Statements of Income in Other, net.
Additionally, in accordance with recently adopted accounting guidance, we have retrospectively recognized $4 million and $9 million of net periodic pension and postretirement benefit credit, excluding the service cost component, for the three and six months ended March 31, 2018, respectively, and recorded the amounts in the Consolidated Condensed Statements of Income in Other, net.
v3.19.1
Earnings Per Share
 6 Months Ended
Mar. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): 
 
Three Months Ended
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
Numerator:
 
 
 
 
 
 
 
Net income
$
430

 
$
316

 
$
982

 
$
1,948

Less: Net income attributable to noncontrolling interests
4

 
1

 
5

 
2

Net income attributable to Tyson
426

 
315

 
977

 
1,946

Less dividends declared:
 
 
 
 
 
 
 
Class A
110

 
90

 
243

 
201

Class B
23

 
18

 
51

 
42

Undistributed earnings
$
293

 
$
207

 
$
683

 
$
1,703

 
 
 
 
 
 
 
 
Class A undistributed earnings
$
241

 
$
171

 
$
562

 
$
1,404

Class B undistributed earnings
52

 
36

 
121

 
299

Total undistributed earnings
$
293

 
$
207

 
$
683

 
$
1,703

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
 
 
Class A weighted average shares
294

 
296

 
294

 
296

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

 
70

 
70

 
70

Effect of dilutive securities:
 
 
 
 
 
 
 
Stock options, restricted stock and performance units
2

 
4

 
2

 
5

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
366

 
370

 
366

 
371

 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A basic
$
1.20

 
$
0.88

 
$
2.74

 
$
5.42

Class B basic
$
1.07

 
$
0.78

 
$
2.46

 
$
4.87

Diluted
$
1.17

 
$
0.85

 
$
2.67

 
$
5.25

Dividends Declared Per Share:
 
 
 
 
 
 
 
Class A
$
0.375

 
$
0.300

 
$
0.825

 
$
0.675

Class B
$
0.338

 
$
0.270

 
$
0.743

 
$
0.608


Approximately 3 million and 4 million of our stock-based compensation shares were antidilutive for the three and six months ended March 30, 2019, respectively. Approximately 1 million of our stock-based compensation shares were antidilutive for the three and six months ended March 31, 2018. These shares were not included in the diluted earnings per share calculation.
We have two classes of capital stock, Class A stock and Class B stock. Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of cash dividends paid to holders of Class B stock cannot exceed 90% of the cash dividends paid to holders of Class A stock.
We allocate undistributed earnings based upon a 1 to 0.9 ratio per share to Class A stock and Class B stock, respectively. We allocate undistributed earnings based on this ratio due to historical dividend patterns, voting control of Class B shareholders and contractual limitations of dividends to Class B stock.
v3.19.1
Derivative Financial Instruments
 6 Months Ended
Mar. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments DERIVATIVE FINANCIAL INSTRUMENTS
Our business operations give rise to certain market risk exposures mostly due to changes in commodity prices, foreign currency exchange rates and interest rates. We manage a portion of these risks through the use of derivative financial instruments to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Our risk management programs are periodically reviewed by our Board of Directors' Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using value-at-risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at March 30, 2019.
We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
in millions, except soy meal tons
Metric
 
March 30, 2019
 
September 29, 2018
Commodity:
 
 
 
 
 
Corn
Bushels
 
98

 
112

Soy Meal
Tons
 
971,000

 
651,700

Live Cattle
Pounds
 
450

 
105

Lean Hogs
Pounds
 
321

 
39

Foreign Currency
United States dollar
 
$
237

 
$
89

Interest Rate Swaps
Average monthly debt
 
$
400

 
$
400

We recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated Condensed Balance Sheets, with the exception of normal purchases and normal sales expected to result in physical delivery. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged (e.g., cash flow hedge or fair value hedge). We designate certain forward contracts as follows:
•
Cash Flow Hedges – include certain commodity forward and option contracts of forecasted purchases (e.g., grains), interest rate swaps and locks, and certain foreign exchange forward contracts.
•
Fair Value Hedges – include certain commodity forward contracts of firm commitments (e.g., livestock).
Cash Flow Hedges
Derivative instruments are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes as well as interest rates related to our variable rate debt. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income ("OCI") and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant for the three and six months ended March 30, 2019, and March 31, 2018. As of March 30, 2019, we have net pretax losses of $6 million for our commodity contracts and $2 million of pretax losses related to our interest rate swap hedges, expected to be reclassified into earnings within the next 12 months. Additionally, we have $20 million of realized losses related to treasury rate locks in connection with our 364-day term loan extinguished during the second quarter of fiscal 2019, which will be reclassified to earnings over the lives of the 2026, 2029 and 2048 Notes. During the six months ended March 30, 2019, and March 31, 2018, we did not reclassify significant pretax gains or losses into earnings as a result of the discontinuance of cash flow hedges. The following tables set forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Gain (Loss)
Recognized in OCI
On Derivatives
 
 
Consolidated Condensed
Statements of Income
Classification
 
Gain (Loss)
Reclassified from
OCI to Earnings
 
 
Three Months Ended
 
 
 
Three Months Ended
 
March 30, 2019
 
March 31, 2018
 
 
 
March 30, 2019
 
March 31, 2018
Cash flow hedge – derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(5
)
 
$
2

 
Cost of Sales
 
$
(5
)
 
$
(2
)
Interest rate hedges
(5
)
 
—

 
Interest expense
 
—

 
—

Total
$
(10
)
 
$
2

 
 
 
$
(5
)
 
$
(2
)
 
Gain (Loss)
Recognized in OCI
On Derivatives
 
 
Consolidated Condensed
Statements of Income
Classification
 
Gain (Loss)
Reclassified from
OCI to Earnings
 
 
Six Months Ended
 
 
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
 
 
March 30, 2019
 
March 31, 2018
Cash flow hedge – derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(7
)
 
$
—

 
Cost of sales
 
$
(12
)
 
$
(3
)
Interest rate hedges
(23
)
 
—

 
Interest expense
 
—

 
—

Total
$
(30
)
 
$
—

 
 
 
$
(12
)
 
$
(3
)

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

 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
Six Months Ended
 
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
Gain (Loss) on forwards
Cost of Sales
 
$
1

 
$
1

 
$
—

 
$
(6
)
Gain (Loss) on purchase contract
Cost of Sales
 
(1
)
 
(1
)
 
—

 
6


Ineffectiveness related to fair value hedges was insignificant for the three and six months ended March 30, 2019, and March 31, 2018.
Undesignated Positions
In addition to our designated positions, we also hold derivative contracts for which we do not apply hedge accounting. These include certain derivative instruments related to commodities price risk, including grains, livestock, energy and foreign currency risk. We mark these positions to fair value through earnings at each reporting date. The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Condensed Statements of Income (in millions):
 
 
 
Gain (Loss)
Recognized in Earnings
 
 
Gain (Loss)
Recognized in Earnings
 
 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
Six Months Ended
 
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Sales
 
$
13

 
$
(30
)
 
$
14

 
$
(21
)
Commodity contracts
Cost of Sales
 
(24
)
 
68

 
(21
)
 
46

Foreign exchange contracts
Other Income/Expense
 
3

 
(2
)
 
3

 
(2
)
Total
 
 
$
(8
)
 
$
36

 
$
(4
)
 
$
23


The fair value of all outstanding derivative instruments in the Consolidated Condensed Balance Sheets are included in Note 13: Fair Value Measurements.
v3.19.1
Fair Value Measurements
 6 Months Ended
Mar. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:
Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date.
Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
•
Quoted prices for similar assets or liabilities in active markets;
•
Quoted prices for identical or similar assets in non-active markets;
•
Inputs other than quoted prices that are observable for the asset or liability; and
•
Inputs derived principally from or corroborated by other observable market data.
Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
March 30, 2019
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Other Current Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
10

 
$
—

 
$
1

 
$
11

Undesignated
—

 
44

 
—

 
4

 
48

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Other Assets:
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Non-current
—

 
50

 
49

 
—

 
99

Deferred compensation assets
7

 
303

 
—

 
—

 
310

Total assets
$
7

 
$
408

 
$
50

 
$
5

 
$
470

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

 
$
26

 
$
—

 
$
(24
)
 
$
2

Undesignated
—

 
57

 
—

 
(45
)
 
12

Total liabilities
$
—

 
$
83

 
$
—

 
$
(69
)
 
$
14

September 29, 2018
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Other Current Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
2

 
$
—

 
$
(1
)
 
$
1

Undesignated
—

 
44

 
—

 
(19
)
 
25

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
—

 
—

 
1

Other Assets:
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Non-current
—

 
46

 
51

 
—

 
97

Deferred compensation assets
21

 
295

 
—

 
—

 
316

Total assets
$
21

 
$
388

 
$
51

 
$
(20
)
 
$
440

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

 
$
8

 
$
—

 
$
(8
)
 
$
—

Undesignated
—

 
35

 
—

 
(30
)
 
5

Total liabilities
$
—

 
$
43

 
$
—

 
$
(38
)
 
$
5

(a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at March 30, 2019, and September 29, 2018, we had $74 million and $18 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): 
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
Balance at beginning of year
$
51

 
$
51

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

 
—

Included in other comprehensive income (loss)
1

 
—

Purchases
7

 
10

Issuances
—

 
—

Settlements
(9
)
 
(9
)
Balance at end of period
$
50

 
$
52

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

 
$
—


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Derivative Assets and Liabilities: Our derivative financial instruments primarily include exchange-traded and over-the-counter contracts which are further described in Note 12: Derivative Financial Instruments. We record our derivative financial instruments at fair value using quoted market prices, adjusted where necessary for credit and non-performance risk and internal models that use readily observable market inputs as their basis, including current and forward market prices and rates. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges or observable market transactions.
Available-for-Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. Short-term investments with maturities of less than 12 months are included in Other current assets in the Consolidated Condensed Balance Sheets and primarily include certificates of deposit and commercial paper. All other marketable debt securities are included in Other Assets in the Consolidated Condensed Balance Sheets and have maturities ranging up to 33 years.
We classify our investments in U.S. government, U.S. agency, certificates of deposit and commercial paper debt securities as Level 2 as fair value is generally estimated using discounted cash flow models that are primarily industry-standard models that consider various assumptions, including time value and yield curve as well as other readily available relevant economic measures. We classify certain corporate, asset-backed and other debt securities as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated condensed financial statements.
The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):
 
March 30, 2019
 
September 29, 2018
 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain (Loss)

 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain (Loss)

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury and agency
$
51

 
$
51

 
$
—

 
$
48

 
$
47

 
$
(1
)
Corporate and asset-backed
50

 
50

 
—

 
52

 
51

 
(1
)

Unrealized holding gains (losses), net of tax, are excluded from earnings and reported in OCI until the security is settled or sold. On a quarterly basis, we evaluate whether losses related to our available-for-sale securities are temporary in nature. Losses on equity securities are recognized in earnings if the decline in value is judged to be other than temporary. If losses related to our debt securities are determined to be other than temporary, the loss would be recognized in earnings if we intend, or will more likely than not be required, to sell the security prior to recovery. For debt securities in which we have the intent and ability to hold until maturity, losses determined to be other than temporary would remain in OCI, other than expected credit losses which are recognized in earnings. We consider many factors in determining whether a loss is temporary, including the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. We recognized no other than temporary impairment in earnings and no other than temporary losses in OCI for the three and six months ended March 30, 2019, and March 31, 2018.
Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated Condensed Balance Sheets. We classify the investments which have observable market prices in active markets in Level 1 as these are generally publicly-traded mutual funds. The remaining deferred compensation assets are classified in Level 2, as fair value can be corroborated based on observable market data. Realized and unrealized gains (losses) on deferred compensation are included in earnings.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the three and six months ended March 30, 2019.
In the three and six months ended March 31, 2018, we recorded $75 million and $101 million impairment charges, respectively, related to the expected sale of non-protein businesses held for sale, due to revised estimates of the businesses' fair value based on current expected net sales proceeds. The impairment charges were recorded in Cost of Sales in our Consolidated Condensed Statement of Income, and primarily consisted of Goodwill previously classified within Assets held for sale. Our valuation included unobservable Level 3 inputs and was based on expected sales proceeds from a competitive bidding process and ongoing discussions with potential buyers.
Other Financial Instruments
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):
 
March 30, 2019
 
September 29, 2018
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total debt
$
12,480

 
$
12,374

 
$
9,775

 
$
9,873
v3.19.1
Pension and Other Postretirement Benefit Plans
 6 Months Ended
Mar. 30, 2019
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Plans PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
The components of the net periodic cost for the pension and postretirement benefit plans for the three and six months ended March 30, 2019, and March 31, 2018, are as follows (in millions):
 
Pension Plans
 
Three Months Ended
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
2

 
$
1

 
$
4

Interest cost
16

 
16

 
32

 
32

Expected return on plan assets
(15
)
 
(15
)
 
(29
)
 
(31
)
Amortization of net actuarial loss
1

 
1

 
1

 
2

Settlement loss
—

 
—

 
19

 
—

Net periodic cost
$
2

 
$
4

 
$
24

 
$
7

 
Postretirement Benefit Plans
 
Three Months Ended
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
 
 
 
 
 
 
 
Interest cost
$
1

 
$
1

 
$
1

 
$
1

Amortization of prior service credit
(1
)
 
(6
)
 
(5
)
 
(12
)
Net periodic credit
$
—

 
$
(5
)
 
$
(4
)
 
$
(11
)

We contributed $9 million and $8 million to our pension plans for the three months ended March 30, 2019 and March 31, 2018, respectively. We contributed $12 million and $13 million to our pension plans for the six months ended March 30, 2019 and March 31, 2018, respectively. We expect to contribute an additional $3 million during the remainder of fiscal 2019. The amount of contributions made to pension plans in any year is dependent upon a number of factors, including minimum funding requirements in the jurisdictions in which we operate. As a result, the actual funding in fiscal 2019 may differ from the current estimate.
v3.19.1
Other Comprehensive Income (Loss)
 6 Months Ended
Mar. 30, 2019
Statement of Comprehensive Income [Abstract]  
Other Comprehensive Income (Loss) OTHER COMPREHENSIVE INCOME (LOSS)
The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to cost of sales
$
5

$
—

$
5

 
$
2

$
—

$
2

 
$
12

$
(2
)
$
10

 
$
3

$
(1
)
$
2

Unrealized gain (loss)
(10
)
2

(8
)
 
2

(1
)
1

 
(30
)
8

(22
)
 
—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
1

(1
)
—

 
1

(1
)
—

 
2

(1
)
1

 
—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Translation adjustment
25

—

25

 
5

—

5

 
34

(1
)
33


6

—

6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
—

—

—

 
(6
)
—

(6
)
 
(28
)
8

(20
)

(4
)
—

(4
)
Pension settlement reclassified to other (income) expense
—

—

—

 
—

—

—

 
23

(6
)
17


—

—

—

Total other comprehensive income (loss)
$
21

$
1

$
22

 
$
4

$
(2
)
$
2

 
$
13

$
6

$
19

 
$
5

$
(1
)
$
4
v3.19.1
Segment Reporting
 6 Months Ended
Mar. 30, 2019
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
We operate in four reportable segments: Beef, Pork, Chicken, and Prepared Foods. We measure segment profit as operating income (loss). Other primarily includes our foreign production operations in Australia, China, South Korea, Malaysia, and Thailand, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC.
Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain.
Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain.
Chicken: Chicken includes our domestic operations related to raising and processing live chickens into, and purchasing raw materials for, fresh, frozen and value-added chicken products, as well as sales from allied products. Our value-added chicken products primarily include breaded chicken strips, nuggets, patties, tenders, wings and other ready-to-fix or fully cooked chicken parts. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. This segment includes brands such as Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island®. Products primarily include ready-to-eat sandwiches, sandwich components such as flame-grilled hamburgers and Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets.
We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC, which are included in Other.
Information on segments and a reconciliation to income before income taxes are as follows (in millions): 
 
Three Months Ended
 
Six Months Ended
 
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
Sales:
 
 
 
 
 
 
 
 
Beef
$
3,884

 
$
3,681

 
$
7,810

 
$
7,567

 
Pork
1,172

 
1,265

 
2,351

 
2,548

 
Chicken
3,407

 
2,959

 
6,522

 
5,956

 
Prepared Foods
2,027

 
2,147

 
4,176

 
4,439

 
Other
277

 
82

 
420

 
170

 
Intersegment
(324
)
 
(361
)
 
(643
)
 
(678
)
 
Total sales
$
10,443

 
$
9,773

 
$
20,636

 
$
20,002

 
 
 
 
 
 
 
 
 
 
Operating income (loss):
 
 
 
 
 
 
 
 
Beef
$
156

 
$
92

 
$
461

 
$
348

 
Pork
100

 
67

 
195

 
218

 
Chicken
141

(a) 
231

 
301

(a) 
503

 
Prepared Foods
245

 
119

(b) 
510

 
375

(b) 
Other
(7
)
(c) 
(15
)
(c) 
(25
)
(c) 
(28
)
(c) 
Total operating income
635

 
494

 
1,442

 
1,416

 
 
 
 
 
 
 
 
 
 
Total other expense
107


71

 
201

 
151

 
 
 
 
 
 
 
 
 
 
Income before income taxes
$
528

 
$
423

 
$
1,241

 
$
1,265

 

(a) Chicken operating income includes $5 million and $13 million in Keystone Foods purchase accounting and acquisition related costs for the three and six months ended March 30, 2019, respectively.
(b) Prepared Foods operating income includes a $75 million impairment associated with the divestiture of non-protein business and $79 million impairment net of a realized gain associated with the divestitures of non-protein businesses for the three and six months ended March 31, 2018, respectively (see Note 2: Acquisitions and Dispositions).
(c) Other operating loss includes $6 million and $24 million in Keystone Foods purchase accounting and acquisition related costs for the three and six months ended March 30, 2019, respectively, and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $4 million for each of the three months ended March 30, 2019, and March 31, 2018, and $5 million for each of the the six months ended March 30, 2019, and March 31, 2018.
The Beef segment had sales of $100 million and $105 million in the second quarter of fiscal 2019 and 2018, respectively, and sales of $190 million and $199 million in the six months of fiscal 2019 and 2018, respectively, from transactions with other operating segments of the Company. The Pork segment had sales of $211 million and $231 million in the second quarter of fiscal 2019 and 2018, respectively, and sales of $426 million and $432 million in the six months of fiscal 2019 and 2018, respectively, from transactions with other operating segments of the Company. The Chicken segment had sales of $13 million and $25 million in the second quarter of fiscal 2019 and 2018, respectively, and sales of $27 million and $47 million in the six months of fiscal 2019 and 2018, respectively, from transactions with other operating segments of the Company. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table.
The following tables further disaggregate our sales to customers by major distribution channels (in millions):
 
Three Months Ended
 
March 30, 2019
 
Consumer Products(a)
 
Foodservice(b)
 
International(c)
 
Industrial and Other(d)
 
Intersegment
 
Total
Beef
$
1,811

 
$
1,057

 
$
573

 
$
343

 
$
100

 
$
3,884

Pork
334

 
93

 
210

 
324

 
211

 
1,172

Chicken
1,463

 
1,307

 
155

 
469

 
13

 
3,407

Prepared Foods
1,190

 
755

 
20

 
62

 
—

 
2,027

Other
—

 
—

 
277

 
—

 
—

 
277

Intersegment
—

 
—

 
—

 
—

 
(324
)
 
(324
)
Total
$
4,798


$
3,212


$
1,235

 
$
1,198

 
$
—

 
$
10,443

 
Six Months Ended
 
March 30, 2019
 
Consumer Products(a)
 
Foodservice(b)
 
International(c)
 
Industrial and Other(d)
 
Intersegment
 
Total
Beef
$
3,662

 
$
2,074

 
$
1,201

 
$
683

 
$
190

 
$
7,810

Pork
671

 
184

 
435

 
635

 
426

 
2,351

Chicken
2,835

 
2,437

 
312

 
911

 
27

 
6,522

Prepared Foods
2,465

 
1,544

 
44

 
123

 
—

 
4,176

Other
—

 
—

 
420

 
—

 
—

 
420

Intersegment
—

 
—

 
—

 
—

 
(643
)
 
(643
)
Total
$
9,633

 
$
6,239

 
$
2,412

 
$
2,352

 
$
—

 
$
20,636

(a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers.
(b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military.
(c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products.
(d) Includes sales to industrial food processing companies that further process our product to sell to end consumers and any remaining sales not included in the Consumer Products, Foodservice or International categories.
v3.19.1
Commitments And Contingencies
 6 Months Ended
Mar. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies COMMITMENTS AND CONTINGENCIES
Commitments
We guarantee obligations of certain outside third parties, consisting primarily of grower loans, which are substantially collateralized by the underlying assets. The remaining terms of the underlying obligations cover periods up to 10 years, and the maximum potential amount of future payments as of March 30, 2019, was not significant. We also maintain operating leases for various types of equipment, some of which contain residual value guarantees for the market value of the underlying leased assets at the end of the lease term. The remaining terms of the lease maturities cover periods over the next 10 years. The maximum potential amount of the residual value guarantees is $97 million, all of which could be recoverable through various recourse provisions and an additional undeterminable recoverable amount based on the fair value of the underlying leased assets. The likelihood of material payments under these guarantees is not considered probable. At March 30, 2019, and September 29, 2018, no material liabilities for guarantees were recorded.
We have cash flow assistance programs in which certain livestock suppliers participate. Under these programs, we pay an amount for livestock equivalent to a standard cost to grow such livestock during periods of low market sales prices. The amounts of such payments that are in excess of the market sales price are recorded as receivables and accrue interest. Participating suppliers are obligated to repay these receivables balances when market sales prices exceed this standard cost, or upon termination of the agreement. Our maximum commitment associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets. The potential maximum commitment as of March 30, 2019 was approximately $300 million. The total receivables under these programs were $20 million and $6 million at March 30, 2019 and September 29, 2018, respectively. These receivables are included, net of allowance for uncollectible amounts, in Accounts Receivable in our Consolidated Condensed Balance Sheets. Even though these programs are limited to the net tangible assets of the participating livestock suppliers, we also manage a portion of our credit risk associated with these programs by obtaining security interests in livestock suppliers’ assets. After analyzing residual credit risks and general market conditions, we have no allowance for these programs’ estimated uncollectible receivables at March 30, 2019, and September 29, 2018.
When constructing new facilities or making major enhancements to existing facilities, we will occasionally enter into incentive agreements with local government agencies in order to reduce certain state and local tax expenditures. Under these agreements, we transfer the related assets to various local government entities and receive Industrial Revenue Bonds. We immediately lease the facilities from the local government entities and have an option to re-purchase the facilities for a nominal amount upon tendering the Industrial Revenue Bonds to the local government entities at various predetermined dates. The Industrial Revenue Bonds and the associated obligations for the leases of the facilities offset, and the underlying assets remain in property, plant and equipment. At March 30, 2019, the total amount under these types of arrangements totaled $698 million.
Contingencies
We are involved in various claims and legal proceedings. We routinely assess the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. We record accruals for such matters to the extent that we conclude a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Such accruals are reflected in the Company’s consolidated condensed financial statements. In our opinion, we have made appropriate and adequate accruals for these matters. Unless noted otherwise below, we believe the probability of a material loss beyond the amounts accrued to be remote; however, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the consolidated financial condition or results of operations. Listed below are certain claims made against the Company and/or our subsidiaries for which the potential exposure is considered material to the Company’s consolidated condensed financial statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters.
On September 2, 2016, Maplevale Farms, Inc., acting on its own behalf and a putative class of direct purchasers of poultry products, filed a class action complaint against us and certain of our poultry subsidiaries, as well as several other poultry processing companies, in the Northern District of Illinois. Subsequent to the filing of this initial complaint, additional lawsuits making similar claims on behalf of putative classes of direct and indirect purchasers were filed in the United States District Court for the Northern District of Illinois. The court consolidated the complaints, for pre-trial purposes, into actions on behalf of three different putative classes: direct purchasers, indirect purchasers/consumers and commercial/institutional indirect purchasers. 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 seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees on behalf of the putative classes. 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. Separately, plaintiffs notified us on April 26, 2019 that the U.S. Department of Justice issued a grand jury subpoena to them requesting discovery produced by all parties in the case.
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, a group of plaintiffs acting on their own behalf and on behalf of a putative class of all persons and entities who indirectly purchased pork, filed a class action complaint against us and certain of our pork subsidiaries, as well as several other pork processing companies, in the 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 seek 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. A hearing on the motions was held on January 28, 2019.
On April 23, 2019, a group of plaintiffs, acting on behalf of themselves and on behalf of a putative class of all persons and entities who directly sold to the named defendants any fed cattle for slaughter and all persons who transacted in live cattle futures and/or options traded on the Chicago Mercantile Exchange or another U.S. exchange, filed a class action complaint against us and our beef and pork subsidiary, Tyson Fresh Meats, Inc., as well as other beef packer defendants, in the United States District Court for the Northern District of Illinois. The plaintiffs allege that the defendants engaged in a conspiracy from January 2015 to the present to reduce fed cattle prices in violation of federal antitrust laws, the Grain Inspection, Packers and Stockyards Act of 1921, and the Commodities Exchange Act by periodically reducing their slaughter volumes so as to reduce demand for fed cattle, curtailing their purchases and slaughters of cash-purchased cattle during those same periods, coordinating their procurement practices for fed cattle settled on a cash basis, importing foreign cattle at a loss so as to reduce domestic demand, and closing and idling plants. In addition, the plaintiffs also allege the defendants colluded to manipulate live cattle futures and options traded on the Chicago Mercantile Exchange. The plaintiffs seek, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief.
On April 29, 2019, a group of plaintiffs, acting on behalf of themselves and on behalf of a putative class of indirect purchasers of beef for personal use filed a class action complaint against us and other beef packers, along with Agri Stats, Inc., an information services provider, in the United States District Court for the District of Minnesota. The plaintiffs allege that the packer defendants conspired to reduce slaughter capacity by closing or idling plants, limiting their purchases of cash cattle, coordinating their procurement of cash cattle, and reducing their slaughter numbers so as to reduce beef output, all in order to artificially raise prices of beef. The plaintiffs seek, among other things, damages under state antitrust and consumer protection statutes and common law of approximately 30 states, as well as injunctive relief.
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 US $66 million) in damages and fees. The respondents appealed the labor arbiter's ruling, and it was subsequently set aside by the NLRC in December 2006. Subsequent to the NLRC’s decision, the parties filed numerous appeals, motions for reconsideration and petitions for review, certain of which remained outstanding for several years. While various of those appeals, motions and/or petitions were pending, The Hillshire Brands Company, on June 23, 2014, without admitting liability, filed a settlement motion requesting that the Supreme Court of the Philippines order dismissal with prejudice of all claims against it and certain other respondents in exchange for payments allocated by the court among the complainants in an amount not to exceed PHP342,287,800 (approximately US $6.5 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 US $282 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 US $1,300). The settlement payment was made on December 21, 2016, to the NLRC, which is responsible for distributing the funds to each settling complainant. On December 27, 2016, the respondents filed motions for reconsideration with the NLRC asking that the award be set aside. The NLRC denied respondents' motions for reconsideration in a resolution received on May 5, 2017 and entered a judgment on the award on July 24, 2017. Each of Aris Philippines, Inc., Sara Lee Corporation and Sara Lee Philippines, Inc. appealed this award and sought an injunction to preclude enforcement of the award to the Philippines Court of Appeals. On November 23, 2017, the Court of Appeals granted a writ of preliminary injunction that precluded execution of the NLRC award during the pendency of the appeal. The Court of Appeals subsequently vacated the NLRC’s award on April 12, 2018. Complainants have filed motions for reconsideration with the Court of Appeals. On November 14, 2018, the Court of Appeals denied claimants’ motions for reconsideration and granted defendants’ motion to release and discharge the preliminary injunction bond. Claimants have since filed petitions for writ of certiorari with the Supreme Court of the Philippines. The Supreme Court has accepted the case for review. We continue to maintain an accrual for this matter.
The Hillshire Brands Company was named as a defendant in an asbestos exposure case filed by Mark Lopez in May 2014 in the Superior Court of Alameda County, California. Mr. Lopez was diagnosed with mesothelioma in January 2014 and is now deceased. Mr. Lopez’s family members asserted negligence, premises liability and strict liability claims related to Mr. Lopez’s alleged asbestos exposure from 1954-1986 from the Union Sugar plant in Betteravia, California. The plant, which was sold in 1986, was owned by entities that were predecessors-in-interest to The Hillshire Brands Company. In August 2017, the jury returned a verdict of approximately $13 million in favor of the plaintiffs, and a judgment was entered. We have appealed the judgment and all briefing has been completed.
v3.19.1
Accounting Policies (Policy)
 6 Months Ended
Mar. 30, 2019
Policy Text Block [Abstract]  
Basis Of Presentation Basis of Presentation
The consolidated condensed financial statements are unaudited and have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations of the United States Securities and Exchange Commission. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 29, 2018. Preparation of consolidated condensed financial statements requires us to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of March 30, 2019, and the results of operations for the three and six months ended March 30, 2019, and March 31, 2018. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.
Consolidation ConsolidationThe consolidated condensed financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Revenue Recognition Revenue Recognition
We recognize revenue mainly through consumer products retail, foodservice, international, industrial and other distribution channels. Our revenues primarily result from contracts with customers and are generally short term in nature with the delivery of product as the single performance obligation. We recognize revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred to our customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. We elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than an additional promised service. Our contracts are generally less than one year, and therefore we recognize costs paid to third party brokers to obtain contracts as expenses. Additionally, items that are not material in the context of the contract are recognized as expense. Any taxes collected on behalf of government authorities are excluded from net revenues.
Revenue is measured by the transaction price, which is defined as the amount of consideration we expect to receive in exchange for providing goods to customers. The transaction price is adjusted for estimates of known or expected variable consideration, which includes consumer incentives, trade promotions, and allowances, such as coupons, discounts, rebates, volume-based incentives, cooperative advertising, and other programs. Variable consideration related to these programs is recorded as a reduction to revenue based on amounts we expect to pay. We base these estimates on current performance, historical utilization, and projected redemption rates of each program. We review and update these estimates regularly until the incentives or product returns are realized and the impact of any adjustments are recognized in the period the adjustments are identified. In many cases, key sales terms such as pricing and quantities ordered are established on a regular basis such that most customer arrangements and related incentives have a duration of less than one year. Amounts billed and due from customers are short term in nature and are classified as receivables since payments are unconditional and only the passage of time is required before payments are due. Additionally, we do not grant payment financing terms greater than one year.
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements
In August 2017, the Financial Accounting Standards Board ("FASB") issued guidance that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components excluded from the assessment. Some of the modifications include the ineffectiveness of derivative gain/loss in highly effective cash flow hedges to be recorded in Other Comprehensive Income, alignment of the recognition and presentation of the effects related to the hedging instrument and hedged item in the financial statements, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging on financial statement lines for components excluded from the assessment. The amendment also simplifies the application of hedge accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. Upon adoption, we do not expect this guidance will have a material impact on our consolidated financial statements.
In March 2017, the FASB issued guidance that shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective transition method should be applied. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In June 2016, the FASB issued guidance that provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. Early adoption is permitted for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. The application of the guidance requires various transition methods depending on the specific amendment. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.
In February 2016, the FASB issued guidance that created new accounting and reporting guidelines for leasing arrangements. The guidance requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The guidance also requires qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted and the modified retrospective method should be applied. While we are still evaluating the impact this guidance will have on our consolidated financial statements and related disclosures, we have completed our initial scoping reviews and have made progress in our assessment phase as we continue to identify our leasing processes that will be impacted by the new standard. We have also made progress in developing the policy elections we will make upon adoption and we are implementing software to meet the reporting requirements of this standard. We expect our financial statement disclosures will be expanded to present additional details of our leasing arrangements. Although we expect the impacts to be material, at this time we are unable to reasonably estimate the expected increase in assets and liabilities on our consolidated balance sheets or the impacts to our consolidated financial statements upon adoption.
Changes in Accounting Principles Changes in Accounting Principles
In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. The prospective transition method should be applied to all qualified implementation costs incurred after the adoption date. We elected to early adopt this guidance beginning in the first quarter of fiscal 2019, and it did not have a material impact on our consolidated financial statements.
In May 2017, the FASB issued guidance that clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The prospective transition method should be applied to awards modified on or after the adoption date. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.
In March 2017, the FASB issued guidance that changes the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost will be included within the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost will be presented separately outside of operating income. Additionally, only the service cost component will be eligible for capitalization when applicable. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The retrospective transition method should be applied for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement, and the prospective transition method should be applied, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The guidance includes a practical expedient allowing entities to estimate amounts for comparative periods using the information previously disclosed in the pension and other postretirement benefit plan footnote. We adopted this guidance in the first quarter of fiscal 2019 on a retrospective basis using the practical expedient and it did not have a material impact on our consolidated financial statements.
The following reconciliations provide the effect of the reclassification of the net periodic benefit cost from operating expenses to other (income) expense in our consolidated statements of income for the three and six months ended March 31, 2018 (in millions):
Three Months Ended March 31, 2018:
As Previously Reported
Adjustments
As Recast
Cost of Sales
$
8,753

$
5

$
8,758

Selling, General and Administrative
$
522

$
(1
)
$
521

Operating Income
$
498

$
(4
)
$
494

Other (Income) Expense
$
75

$
(4
)
$
71

Six Months Ended March 31, 2018:
As Previously Reported
Adjustments
As Recast
Cost of Sales
$
17,531

$
13

$
17,544

Selling, General and Administrative
$
1,046

$
(4
)
$
1,042

Operating Income
$
1,425

$
(9
)
$
1,416

Other (Income) Expense
$
160

$
(9
)
$
151


In November 2016, the FASB issued guidance that requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.
In October 2016, the FASB issued guidance that requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The modified retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.
In August 2016, the FASB issued guidance that aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. The retrospective transition method should be applied. We adopted this guidance in the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.
In January 2016, the FASB issued guidance that requires most equity investments be measured at fair value, with subsequent other changes in fair value recognized in net income. The guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements on the classification and measurement of financial instruments. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. It should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, unless equity securities do not have readily determinable fair values, in which case the amendments should be applied prospectively. We adopted this guidance in the first quarter of fiscal 2019. We did not use prospective amendments for any investments and adoption did not have a material impact on our consolidated financial statements.
In May 2014, the FASB issued guidance that changes the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts, including disaggregated revenue disclosures. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. We adopted this guidance in the first quarter of fiscal 2019 using the modified retrospective transition method. Prior periods were not adjusted and, based on our implementation assessment, no cumulative-effect adjustment was made to the opening balance of retained earnings. The adoption of this standard did not have a material impact on our consolidated financial statements. For further description of our revenue recognition policy refer to the Revenue Recognition section above and for disaggregated revenue information refer to Part I, Item 1, Notes to the Consolidated Condensed Financial Statements, Note 16: Segment Reporting.
v3.19.1
Inventories (Policy)
 6 Months Ended
Mar. 30, 2019
Inventory Disclosure [Abstract]  
Inventory, Policy INVENTORIESProcessed products, livestock and supplies and other are valued at the lower of cost and net realizable value. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.
v3.19.1
Accounting Policies Changes in Accounting Principles (Tables)
 6 Months Ended
Mar. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
ASU 2017-07 Restatement Adjustments [Table Text Block] The following reconciliations provide the effect of the reclassification of the net periodic benefit cost from operating expenses to other (income) expense in our consolidated statements of income for the three and six months ended March 31, 2018 (in millions):
Three Months Ended March 31, 2018:
As Previously Reported
Adjustments
As Recast
Cost of Sales
$
8,753

$
5

$
8,758

Selling, General and Administrative
$
522

$
(1
)
$
521

Operating Income
$
498

$
(4
)
$
494

Other (Income) Expense
$
75

$
(4
)
$
71

Six Months Ended March 31, 2018:
As Previously Reported
Adjustments
As Recast
Cost of Sales
$
17,531

$
13

$
17,544

Selling, General and Administrative
$
1,046

$
(4
)
$
1,042

Operating Income
$
1,425

$
(9
)
$
1,416

Other (Income) Expense
$
160

$
(9
)
$
151
v3.19.1
Acquisitions and Dispositions (Tables)
 6 Months Ended
Mar. 30, 2019
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block] The following table summarizes the preliminary purchase price allocation and fair values of the assets acquired and liabilities assumed at the acquisition date, which is subject to change pending finalization of working capital adjustments. Certain estimated values for the acquisition, including goodwill, intangible assets, inventory, property, plant and equipment, and deferred income taxes, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The purchase price was allocated based on information currently available as of the acquisition date. During the second quarter of fiscal 2019, we recorded measurement period adjustments which increased goodwill by $105 million, primarily consisting of a reduction of Intangible Assets of $86 million, a reduction of Property, Plant and Equipment of $45 million, a reduction of Deferred Income Taxes of $37 million and a reduction of Accounts Receivable of $15 million.
 
in millions
 
Cash and cash equivalents
 
$
186

Accounts receivable
 
103

Inventories
 
257

Other current assets
 
34

Property, Plant and Equipment
 
680

Goodwill
 
1,178

Intangible Assets
 
659

Other Assets
 
28

Current debt
 
(73
)
Accounts payable
 
(206
)
Other current liabilities
 
(100
)
Long-Term Debt
 
(113
)
Deferred Income Taxes
 
(176
)
Other Liabilities
 
(8
)
Noncontrolling Interests
 
(122
)
Net assets acquired
 
$
2,327
v3.19.1
Inventories (Tables)
 6 Months Ended
Mar. 30, 2019
Inventory Disclosure [Abstract]  
Schedule of Inventory The following table reflects the major components of inventory (in millions):
 
March 30, 2019
 
September 29, 2018
Processed products
$
2,132

 
$
1,981

Livestock
1,203

 
1,006

Supplies and other
564

 
526

Total inventory
$
3,899

 
$
3,513
v3.19.1
Property, Plant And Equipment (Tables)
 6 Months Ended
Mar. 30, 2019
Property, Plant and Equipment, Net [Abstract]  
Property, Plant And Equipment And Accumulated Depreciation The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): 

March 30, 2019
 
September 29, 2018
Land
$
174

 
$
154

Buildings and leasehold improvements
4,537

 
4,115

Machinery and equipment
8,230

 
7,720

Land improvements and other
366

 
357

Buildings and equipment under construction
952

 
689

 
14,259

 
13,035

Less accumulated depreciation
7,174

 
6,866

Net property, plant and equipment
$
7,085

 
$
6,169
v3.19.1
Other Current Liabilities (Tables)
 6 Months Ended
Mar. 30, 2019
Other Liabilities, Current [Abstract]  
Schedule Of Other Current Liabilities Other current liabilities are as follows (in millions):
 
March 30, 2019
 
September 29, 2018
Accrued salaries, wages and benefits
$
577

 
$
549

Income taxes payable
16

 
72

Other
747

 
805

Total other current liabilities
$
1,340

 
$
1,426
v3.19.1
Debt (Tables)
 6 Months Ended
Mar. 30, 2019
Debt Instruments [Abstract]  
Schedule of Major Components Of Debt The major components of debt are as follows (in millions):
 
March 30, 2019
 
September 29, 2018
Revolving credit facility
$
—

 
$
—

Commercial paper
182

 
605

Senior notes:
 
 
 
Notes due May 2019 (2.94% at 3/30/2019)
300

 
300

2.65% Notes due August 2019
1,000

 
1,000

Notes due June 2020 (3.04% at 3/30/2019)
350

 
350

Notes due August 2020 (2.93% at 3/30/2019)
400

 
400

4.10% Notes due September 2020
280

 
281

2.25% Notes due August 2021
500

 
500

4.50% Senior notes due June 2022
1,000

 
1,000

3.90% Senior notes due September 2023
400

 
400

3.95% Notes due August 2024
1,250

 
1,250

4.00% Notes due March 2026 ("2026 Notes")
800

 
—

3.55% Notes due June 2027
1,350

 
1,350

7.00% Notes due January 2028
18

 
18

4.35% Notes due March 2029 ("2029 Notes")
1,000

 
—

6.13% Notes due November 2032
161

 
161

4.88% Notes due August 2034
500

 
500

5.15% Notes due August 2044
500

 
500

4.55% Notes due June 2047
750

 
750

5.10% Notes due September 2048 ("2048 Notes")
1,500

 
500

Discount on senior notes
(49
)
 
(15
)
Other
252

 
73

Unamortized debt issuance costs
(70
)
 
(50
)
Total debt
12,374

 
9,873

Less current debt
1,564

 
1,911

Total long-term debt
$
10,810

 
$
7,962
v3.19.1
Equity (Tables)
 6 Months Ended
Mar. 30, 2019
Equity [Abstract]  
Schedule of Share Repurchase A summary of share repurchases of our Class A stock is as follows (in millions):
 
 
Three Months Ended
 
Six Months Ended
 
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
0.8

 
$
50

 
0.8

 
$
60

 
1.7

 
$
100

 
2.3

 
$
180

To fund certain obligations under equity compensation plans
 
0.2

 
13

 
0.2

 
13

 
0.7

 
46

 
0.8

 
57

Total share repurchases
 
1.0

 
$
63

 
1.0

 
$
73

 
2.4

 
$
146

 
3.1

 
$
237
v3.19.1
Earnings Per Share (Tables)
 6 Months Ended
Mar. 30, 2019
Earnings Per Share [Abstract]  
Schedule Of Earnings Per Share, Basic And Diluted The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): 
 
Three Months Ended
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
Numerator:
 
 
 
 
 
 
 
Net income
$
430

 
$
316

 
$
982

 
$
1,948

Less: Net income attributable to noncontrolling interests
4

 
1

 
5

 
2

Net income attributable to Tyson
426

 
315

 
977

 
1,946

Less dividends declared:
 
 
 
 
 
 
 
Class A
110

 
90

 
243

 
201

Class B
23

 
18

 
51

 
42

Undistributed earnings
$
293

 
$
207

 
$
683

 
$
1,703

 
 
 
 
 
 
 
 
Class A undistributed earnings
$
241

 
$
171

 
$
562

 
$
1,404

Class B undistributed earnings
52

 
36

 
121

 
299

Total undistributed earnings
$
293

 
$
207

 
$
683

 
$
1,703

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
 
 
Class A weighted average shares
294

 
296

 
294

 
296

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

 
70

 
70

 
70

Effect of dilutive securities:
 
 
 
 
 
 
 
Stock options, restricted stock and performance units
2

 
4

 
2

 
5

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
366

 
370

 
366

 
371

 
 
 
 
 
 
 
 
Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A basic
$
1.20

 
$
0.88

 
$
2.74

 
$
5.42

Class B basic
$
1.07

 
$
0.78

 
$
2.46

 
$
4.87

Diluted
$
1.17

 
$
0.85

 
$
2.67

 
$
5.25

Dividends Declared Per Share:
 
 
 
 
 
 
 
Class A
$
0.375

 
$
0.300

 
$
0.825

 
$
0.675

Class B
$
0.338

 
$
0.270

 
$
0.743

 
$
0.608
v3.19.1
Derivative Financial Instruments (Tables)
 6 Months Ended
Mar. 30, 2019
Derivative [Line Items]  
Schedule Of Notional Amount Of Derivatives We had the following aggregated outstanding notional amounts related to our derivative financial instruments:
in millions, except soy meal tons
Metric
 
March 30, 2019
 
September 29, 2018
Commodity:
 
 
 
 
 
Corn
Bushels
 
98

 
112

Soy Meal
Tons
 
971,000

 
651,700

Live Cattle
Pounds
 
450

 
105

Lean Hogs
Pounds
 
321

 
39

Foreign Currency
United States dollar
 
$
237

 
$
89

Interest Rate Swaps
Average monthly debt
 
$
400

 
$
400
Designated as hedges | Cash Flow Hedging [Member]  
Derivative [Line Items]  
Derivative Instruments, Gain (Loss) [Table Text Block] The following tables set forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions):
 
Gain (Loss)
Recognized in OCI
On Derivatives
 
 
Consolidated Condensed
Statements of Income
Classification
 
Gain (Loss)
Reclassified from
OCI to Earnings
 
 
Three Months Ended
 
 
 
Three Months Ended
 
March 30, 2019
 
March 31, 2018
 
 
 
March 30, 2019
 
March 31, 2018
Cash flow hedge – derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(5
)
 
$
2

 
Cost of Sales
 
$
(5
)
 
$
(2
)
Interest rate hedges
(5
)
 
—

 
Interest expense
 
—

 
—

Total
$
(10
)
 
$
2

 
 
 
$
(5
)
 
$
(2
)
 
Gain (Loss)
Recognized in OCI
On Derivatives
 
 
Consolidated Condensed
Statements of Income
Classification
 
Gain (Loss)
Reclassified from
OCI to Earnings
 
 
Six Months Ended
 
 
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
 
 
March 30, 2019
 
March 31, 2018
Cash flow hedge – derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(7
)
 
$
—

 
Cost of sales
 
$
(12
)
 
$
(3
)
Interest rate hedges
(23
)
 
—

 
Interest expense
 
—

 
—

Total
$
(30
)
 
$
—

 
 
 
$
(12
)
 
$
(3
)
Designated as hedges | Fair Value Hedging [Member]  
Derivative [Line Items]  
Derivative Instruments, Gain (Loss) [Table Text Block]
 
 
 
 
 
 
 
in millions

 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
Six Months Ended
 
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
Gain (Loss) on forwards
Cost of Sales
 
$
1

 
$
1

 
$
—

 
$
(6
)
Gain (Loss) on purchase contract
Cost of Sales
 
(1
)
 
(1
)
 
—

 
6
Undesignated  
Derivative [Line Items]  
Derivative Instruments, Gain (Loss) [Table Text Block] The following table sets forth the pretax impact of the undesignated derivative instruments in the Consolidated Condensed Statements of Income (in millions):
 
 
 
Gain (Loss)
Recognized in Earnings
 
 
Gain (Loss)
Recognized in Earnings
 
 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
Six Months Ended
 
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Sales
 
$
13

 
$
(30
)
 
$
14

 
$
(21
)
Commodity contracts
Cost of Sales
 
(24
)
 
68

 
(21
)
 
46

Foreign exchange contracts
Other Income/Expense
 
3

 
(2
)
 
3

 
(2
)
Total
 
 
$
(8
)
 
$
36

 
$
(4
)
 
$
23
v3.19.1
Fair Value Measurements (Tables)
 6 Months Ended
Mar. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
March 30, 2019
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Other Current Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
10

 
$
—

 
$
1

 
$
11

Undesignated
—

 
44

 
—

 
4

 
48

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
1

 
—

 
2

Other Assets:
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Non-current
—

 
50

 
49

 
—

 
99

Deferred compensation assets
7

 
303

 
—

 
—

 
310

Total assets
$
7

 
$
408

 
$
50

 
$
5

 
$
470

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

 
$
26

 
$
—

 
$
(24
)
 
$
2

Undesignated
—

 
57

 
—

 
(45
)
 
12

Total liabilities
$
—

 
$
83

 
$
—

 
$
(69
)
 
$
14

September 29, 2018
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Other Current Assets:
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
Designated as hedges
$
—

 
$
2

 
$
—

 
$
(1
)
 
$
1

Undesignated
—

 
44

 
—

 
(19
)
 
25

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Current
—

 
1

 
—

 
—

 
1

Other Assets:
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
Non-current
—

 
46

 
51

 
—

 
97

Deferred compensation assets
21

 
295

 
—

 
—

 
316

Total assets
$
21

 
$
388

 
$
51

 
$
(20
)
 
$
440

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

 
$
8

 
$
—

 
$
(8
)
 
$
—

Undesignated
—

 
35

 
—

 
(30
)
 
5

Total liabilities
$
—

 
$
43

 
$
—

 
$
(38
)
 
$
5

(a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at March 30, 2019, and September 29, 2018, we had $74 million and $18 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): 
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
Balance at beginning of year
$
51

 
$
51

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

 
—

Included in other comprehensive income (loss)
1

 
—

Purchases
7

 
10

Issuances
—

 
—

Settlements
(9
)
 
(9
)
Balance at end of period
$
50

 
$
52

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

 
$
—
Schedule Of Available For Sale Securities The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):
 
March 30, 2019
 
September 29, 2018
 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain (Loss)

 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain (Loss)

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury and agency
$
51

 
$
51

 
$
—

 
$
48

 
$
47

 
$
(1
)
Corporate and asset-backed
50

 
50

 
—

 
52

 
51

 
(1
)
Schedule Of Fair Value And Carrying Value Of Debt Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):
 
March 30, 2019
 
September 29, 2018
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total debt
$
12,480

 
$
12,374

 
$
9,775

 
$
9,873
v3.19.1
Pension and Other Postretirement Benefit Plans (Tables)
 6 Months Ended
Mar. 30, 2019
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs The components of the net periodic cost for the pension and postretirement benefit plans for the three and six months ended March 30, 2019, and March 31, 2018, are as follows (in millions):
 
Pension Plans
 
Three Months Ended
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
2

 
$
1

 
$
4

Interest cost
16

 
16

 
32

 
32

Expected return on plan assets
(15
)
 
(15
)
 
(29
)
 
(31
)
Amortization of net actuarial loss
1

 
1

 
1

 
2

Settlement loss
—

 
—

 
19

 
—

Net periodic cost
$
2

 
$
4

 
$
24

 
$
7

 
Postretirement Benefit Plans
 
Three Months Ended
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
 
 
 
 
 
 
 
Interest cost
$
1

 
$
1

 
$
1

 
$
1

Amortization of prior service credit
(1
)
 
(6
)
 
(5
)
 
(12
)
Net periodic credit
$
—

 
$
(5
)
 
$
(4
)
 
$
(11
)
v3.19.1
Other Comprehensive Income (Loss) (Tables)
 6 Months Ended
Mar. 30, 2019
Statement of Comprehensive Income [Abstract]  
Components Of Other Comprehensive Income (Loss) The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Gain) loss reclassified to cost of sales
$
5

$
—

$
5

 
$
2

$
—

$
2

 
$
12

$
(2
)
$
10

 
$
3

$
(1
)
$
2

Unrealized gain (loss)
(10
)
2

(8
)
 
2

(1
)
1

 
(30
)
8

(22
)
 
—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
1

(1
)
—

 
1

(1
)
—

 
2

(1
)
1

 
—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Translation adjustment
25

—

25

 
5

—

5

 
34

(1
)
33


6

—

6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized gain (loss)
—

—

—

 
(6
)
—

(6
)
 
(28
)
8

(20
)

(4
)
—

(4
)
Pension settlement reclassified to other (income) expense
—

—

—

 
—

—

—

 
23

(6
)
17


—

—

—

Total other comprehensive income (loss)
$
21

$
1

$
22

 
$
4

$
(2
)
$
2

 
$
13

$
6

$
19

 
$
5

$
(1
)
$
4
v3.19.1
Segment Reporting (Tables)
 6 Months Ended
Mar. 30, 2019
Segment Reporting [Abstract]  
Segment Reporting Information, By Segment Information on segments and a reconciliation to income before income taxes are as follows (in millions): 
 
Three Months Ended
 
Six Months Ended
 
 
March 30, 2019
 
March 31, 2018
 
March 30, 2019
 
March 31, 2018
 
Sales:
 
 
 
 
 
 
 
 
Beef
$
3,884

 
$
3,681

 
$
7,810

 
$
7,567

 
Pork
1,172

 
1,265

 
2,351

 
2,548

 
Chicken
3,407

 
2,959

 
6,522

 
5,956

 
Prepared Foods
2,027

 
2,147

 
4,176

 
4,439

 
Other
277

 
82

 
420

 
170

 
Intersegment
(324
)
 
(361
)
 
(643
)
 
(678
)
 
Total sales
$
10,443

 
$
9,773

 
$
20,636

 
$
20,002

 
 
 
 
 
 
 
 
 
 
Operating income (loss):
 
 
 
 
 
 
 
 
Beef
$
156

 
$
92

 
$
461

 
$
348

 
Pork
100

 
67

 
195

 
218

 
Chicken
141

(a) 
231

 
301

(a) 
503

 
Prepared Foods
245

 
119

(b) 
510

 
375

(b) 
Other
(7
)
(c) 
(15
)
(c) 
(25
)
(c) 
(28
)
(c) 
Total operating income
635

 
494

 
1,442

 
1,416

 
 
 
 
 
 
 
 
 
 
Total other expense
107


71

 
201

 
151

 
 
 
 
 
 
 
 
 
 
Income before income taxes
$
528

 
$
423

 
$
1,241

 
$
1,265

 

(a) Chicken operating income includes $5 million and $13 million in Keystone Foods purchase accounting and acquisition related costs for the three and six months ended March 30, 2019, respectively.
(b) Prepared Foods operating income includes a $75 million impairment associated with the divestiture of non-protein business and $79 million impairment net of a realized gain associated with the divestitures of non-protein businesses for the three and six months ended March 31, 2018, respectively (see Note 2: Acquisitions and Dispositions).
(c) Other operating loss includes $6 million and $24 million in Keystone Foods purchase accounting and acquisition related costs for the three and six months ended March 30, 2019, respectively, and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $4 million for each of the three months ended March 30, 2019, and March 31, 2018, and $5 million for each of the the six months ended March 30, 2019, and March 31, 2018.
Disaggregation of Revenue, By Segment and Distribution Channel our sales to customers by major distribution channels (in millions):
 
Three Months Ended
 
March 30, 2019
 
Consumer Products(a)
 
Foodservice(b)
 
International(c)
 
Industrial and Other(d)
 
Intersegment
 
Total
Beef
$
1,811

 
$
1,057

 
$
573

 
$
343

 
$
100

 
$
3,884

Pork
334

 
93

 
210

 
324

 
211

 
1,172

Chicken
1,463

 
1,307

 
155

 
469

 
13

 
3,407

Prepared Foods
1,190

 
755

 
20

 
62

 
—

 
2,027

Other
—

 
—

 
277

 
—

 
—

 
277

Intersegment
—

 
—

 
—

 
—

 
(324
)
 
(324
)
Total
$
4,798


$
3,212


$
1,235

 
$
1,198

 
$
—

 
$
10,443

 
Six Months Ended
 
March 30, 2019
 
Consumer Products(a)
 
Foodservice(b)
 
International(c)
 
Industrial and Other(d)
 
Intersegment
 
Total
Beef
$
3,662

 
$
2,074

 
$
1,201

 
$
683

 
$
190

 
$
7,810

Pork
671

 
184

 
435

 
635

 
426

 
2,351

Chicken
2,835

 
2,437

 
312

 
911

 
27

 
6,522

Prepared Foods
2,465

 
1,544

 
44

 
123

 
—

 
4,176

Other
—

 
—

 
420

 
—

 
—

 
420

Intersegment
—

 
—

 
—

 
—

 
(643
)
 
(643
)
Total
$
9,633

 
$
6,239

 
$
2,412

 
$
2,352

 
$
—

 
$
20,636

(a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers.
(b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military.
(c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products.
(d) Includes sales to industrial food processing companies that further process our product to sell to end consumers and any remaining sales not included in the Consumer Products, Foodservice or International categories.
v3.19.1
Accounting Policies Changes in Accounting Principles (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Cost of Sales $ 9,251 $ 8,758 $ 18,089 $ 17,544
Selling, General and Administrative 557 521 1,105 1,042
Operating Income 635 494 1,442 1,416
Other (Income) Expense $ 107 71 $ 201 151
Previously Reported [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Cost of Sales   8,753   17,531
Selling, General and Administrative   522   1,046
Operating Income   498   1,425
Other (Income) Expense   75   160
Accounting Standards Update 2017-07 [Member] | Restatement Adjustment [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Cost of Sales   5   13
Selling, General and Administrative   (1)   (4)
Operating Income   (4)   (9)
Other (Income) Expense   $ (4)   $ (9)
v3.19.1
Acquisitions and Dispositions Preliminary Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($)
$ in Millions
Mar. 30, 2019
Nov. 30, 2018
Sep. 29, 2018
Business Acquisition [Line Items]      
Goodwill $ 10,946   $ 9,739
Keystone Foods [Member]      
Business Acquisition [Line Items]      
Cash and cash equivalents   $ 186  
Accounts receivable   103  
Inventories   257  
Other current assets   34  
Property, Plant and Equipment   680  
Goodwill   1,178  
Intangible Assets   659  
Other Assets   28  
Current debt   (73)  
Accounts payable   (206)  
Other current liabilities   (100)  
Long-Term Debt   (113)  
Deferred Income Taxes   (176)  
Other Liabilities   (8)  
Noncontrolling Interests   (122)  
Net assets acquired   $ 2,327  
v3.19.1
Acquisitions and Dispositions Acquisition (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 4 Months Ended 6 Months Ended
Feb. 06, 2019
Nov. 30, 2018
Aug. 20, 2018
Jun. 04, 2018
Nov. 10, 2017
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 30, 2019
Mar. 31, 2018
Sep. 29, 2018
Business Acquisition [Line Items]                      
Payments to Acquire Businesses, Net of Cash Acquired                 $ 2,141 $ 226  
Goodwill           $ 10,946   $ 10,946 10,946   $ 9,739
Sales           10,443 $ 9,773   20,636 $ 20,002  
BRF S.A. Thailand and Europe [Member]                      
Business Acquisition [Line Items]                      
Business Combination, Contingent Consideration, Amount $ 340                    
Keystone Foods [Member]                      
Business Acquisition [Line Items]                      
Cash and cash equivalents   $ 186                  
Property, Plant and Equipment   680                  
Intangible Assets   659                  
Goodwill   1,178                  
Sales               $ 767      
Goodwill, Purchase Accounting Adjustments           105          
Finite-Lived Intangible Assets, Purchase Accounting Adjustments           86          
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment           45          
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Income Taxes           37          
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Accounts Receivable           15          
Business Combination, Consideration Transferred   2,300                  
Business Acquisition, Goodwill, Expected Tax Deductible Amount   $ 0                  
American Protein [Member]                      
Business Acquisition [Line Items]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital     $ 56                
Property, Plant and Equipment     152                
Intangible Assets     411                
Goodwill     258                
Goodwill, Purchase Accounting Adjustments           16          
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred           (2)          
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Net Working Capital           15          
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment           3          
Other Liabilities     13                
Business Combination, Consideration Transferred     864                
Business Acquisition, Goodwill, Expected Tax Deductible Amount     258                
Tecumseh Poultry [Member]                      
Business Acquisition [Line Items]                      
Payments to Acquire Businesses, Net of Cash Acquired       $ 382              
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital       13              
Cash and cash equivalents       1              
Property, Plant and Equipment       49              
Intangible Assets       227              
Goodwill       94              
Business Acquisition, Goodwill, Expected Tax Deductible Amount       94              
Original Philly [Member]                      
Business Acquisition [Line Items]                      
Payments to Acquire Businesses, Net of Cash Acquired         $ 226            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital         21            
Cash and cash equivalents         10            
Property, Plant and Equipment         13            
Intangible Assets         90            
Goodwill         111            
Business Acquisition, Goodwill, Expected Tax Deductible Amount         111            
Supply Network [Member] | American Protein [Member]                      
Business Acquisition [Line Items]                      
Finite-lived Intangible Assets Acquired     $ 358                
Finite-Lived Intangible Asset, Useful Life     14 years                
Customer Relationships [Member] | Keystone Foods [Member]                      
Business Acquisition [Line Items]                      
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life   25 years                  
Customer Relationships [Member] | American Protein [Member]                      
Business Acquisition [Line Items]                      
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life     12 years                
Finite-lived Intangible Assets Acquired     $ 51                
Trademarks and Trade Names [Member] | Tecumseh Poultry [Member]                      
Business Acquisition [Line Items]                      
Finite-lived Intangible Assets Acquired       $ 193              
Finite-Lived Intangible Asset, Useful Life       20 years              
Prepared Foods                      
Business Acquisition [Line Items]                      
Sales           2,027     4,176    
Prepared Foods | Original Philly [Member]                      
Business Acquisition [Line Items]                      
Goodwill         82            
Chicken                      
Business Acquisition [Line Items]                      
Sales           3,407     6,522    
Chicken | Keystone Foods [Member]                      
Business Acquisition [Line Items]                      
Goodwill   $ 822                  
Chicken | Original Philly [Member]                      
Business Acquisition [Line Items]                      
Goodwill         $ 29            
Other                      
Business Acquisition [Line Items]                      
Sales           $ 277     $ 420    
Other | Keystone Foods [Member]                      
Business Acquisition [Line Items]                      
Goodwill   $ 356                  
v3.19.1
Acquisitions and Dispositions Disposition Narrative (Details) - Non-Protein Business [Member] - Prepared Foods - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2018
Mar. 31, 2018
Sep. 02, 2018
Jul. 30, 2018
Dec. 30, 2017
Kettle Business [Member]          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Disposal Group, Including Discontinued Operation, Consideration         $ 125
Kettle Business [Member] | Cost of Sales          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Gain (Loss) on Disposition of Business   $ 22      
Sara Lee® Frozen Bakery and Van’s® businesses [Member]          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Disposal Group, Including Discontinued Operation, Consideration       $ 623  
Sara Lee® Frozen Bakery and Van’s® businesses [Member] | Cost of Sales          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Asset Impairment Charges $ 75 $ 101      
TNT Crust [Member]          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Disposal Group, Including Discontinued Operation, Consideration     $ 57    
v3.19.1
Inventories (Schedule Of Inventory) (Details) - USD ($)
$ in Millions
Mar. 30, 2019
Sep. 29, 2018
Inventory Disclosure [Abstract]    
Processed products $ 2,132 $ 1,981
Livestock 1,203 1,006
Supplies and other 564 526
Total inventory $ 3,899 $ 3,513
v3.19.1
Inventories (Narrative) (Details)
Mar. 30, 2019
Sep. 29, 2018
Inventory Disclosure [Abstract]    
Percentage of FIFO Inventory 69.00% 63.00%
v3.19.1
Property, Plant And Equipment (Details) - USD ($)
$ in Millions
Mar. 30, 2019
Sep. 29, 2018
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 14,259 $ 13,035
Less accumulated depreciation 7,174 6,866
Net property, plant and equipment 7,085 6,169
Land    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 174 154
Buildings and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 4,537 4,115
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 8,230 7,720
Land improvements and other    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross 366 357
Buildings and equipment under construction    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment, gross $ 952 $ 689
v3.19.1
Restructuring and Related Charges Restructuring (Details) - Financial Fitness Program [Member] - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 21 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Sep. 29, 2018
Restructuring Cost and Reserve [Line Items]            
Restructuring and Related Cost, Expected Cost $ 253   $ 253   $ 253  
Restructuring and Related Cost, Incurred Cost         225  
Restructuring Reserve 2   2   $ 2 $ 10
Payments for Restructuring     8      
Selling, General and Administrative Expenses [Member]            
Restructuring Cost and Reserve [Line Items]            
Restructuring and Related Cost, Incurred Cost $ 8 $ 12 $ 16 $ 31    
v3.19.1
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) - USD ($)
$ in Millions
Mar. 30, 2019
Sep. 29, 2018
Other Liabilities, Current [Abstract]    
Accrued Income Taxes, Current $ 16 $ 72
Accrued salaries, wages and benefits 577 549
Other 747 805
Total other current liabilities $ 1,340 $ 1,426
v3.19.1
Debt (Major Components Of Debt) (Details) - USD ($)
$ in Millions
Mar. 30, 2019
Feb. 01, 2019
Sep. 29, 2018
Debt Instrument [Line Items]      
Discount on senior notes $ (49)   $ (15)
Other 252   73
Unamortized debt issuance costs (70)   (50)
Total debt 12,374   9,873
Less current debt 1,564   1,911
Total long-term debt 10,810   7,962
Revolving Credit Facility [Member]      
Debt Instrument [Line Items]      
Revolving credit facility 0   0
Commercial paper      
Debt Instrument [Line Items]      
Commercial paper $ 182   605
Notes due May 2019 (2.94% at 3/30/2019)      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 2.94%    
Long-term Debt, Gross $ 300   300
2.65% Notes due August 2019      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 2.65%    
Long-term Debt, Gross $ 1,000   1,000
Notes due June 2020 (3.04% at 3/30/2019)      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 3.04%    
Long-term Debt, Gross $ 350   350
Notes due August 2020 (2.93% at 3/30/2019)      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 2.93%    
Long-term Debt, Gross $ 400   400
4.10% Notes due September 2020      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 4.10%    
Long-term Debt, Gross $ 280   281
2.25% Notes due August 2021      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 2.25%    
Long-term Debt, Gross $ 500   500
4.50% Senior notes due June 2022      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 4.50%    
Long-term Debt, Gross $ 1,000   1,000
3.90% Senior notes due September 2023      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 3.90%    
Long-term Debt, Gross $ 400   400
3.95% Notes due August 2024      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 3.95%    
Long-term Debt, Gross $ 1,250   1,250
Four Point Zero Zero Percentage Senior Unsecured Notes Due March, Two Thousand Twenty Six [Domain]      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 4.00% 4.00%  
Long-term Debt, Gross $ 800 $ 800 0
3.55% Notes due June 2027      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 3.55%    
Long-term Debt, Gross $ 1,350   1,350
7.00% Notes due January 2028      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 7.00%    
Long-term Debt, Gross $ 18   18
Four Point Three Five Percentage Senior Unsecured Notes Due March Two Thousand And Twenty Nine [Member] [Domain]      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 4.35% 4.35%  
Long-term Debt, Gross $ 1,000 $ 1,000 0
6.13% Notes due November 2032      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 6.13%    
Long-term Debt, Gross $ 161   161
4.88% Notes due August 2034      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 4.88%    
Long-term Debt, Gross $ 500   500
5.15% Notes due August 2044      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 5.15%    
Long-term Debt, Gross $ 500   500
4.55% Notes due June 2047      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 4.55%    
Long-term Debt, Gross $ 750   750
5.10% Notes due September 2048 (2048 Notes)      
Debt Instrument [Line Items]      
Debt Instrument, Interest Rate, Stated Percentage 5.10%    
Long-term Debt, Gross $ 1,500 $ 1,500 $ 500
v3.19.1
Debt (Narrative) (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Nov. 29, 2018
Feb. 28, 2019
Mar. 30, 2019
Mar. 30, 2019
Feb. 01, 2019
Sep. 29, 2018
Debt Instrument [Line Items]            
Debt Instrument, Unamortized Discount     $ 49 $ 49   $ 15
Four Point Zero Zero Percentage Senior Unsecured Notes due March, Two Thousand Twenty Six and Four Point Three Five Percentage Senior Unsecured Notes Due March, Two Thousand Twenty Nine [Domain]            
Debt Instrument [Line Items]            
Debt Issuance Costs, Gross         $ 26  
Long-term Debt         1,800  
Debt Instrument, Unamortized Discount         36  
Proceeds from Issuance of Unsecured Debt   $ 2,764        
5.10% Notes due September 2048 (2048 Notes)            
Debt Instrument [Line Items]            
Long-term Debt         1,000  
Long-term Debt, Gross     $ 1,500 $ 1,500 1,500 500
Debt Instrument, Interest Rate, Stated Percentage     5.10% 5.10%    
Four Point Zero Zero Percentage Senior Unsecured Notes Due March, Two Thousand Twenty Six [Domain]            
Debt Instrument [Line Items]            
Long-term Debt, Gross     $ 800 $ 800 $ 800 0
Debt Instrument, Interest Rate, Stated Percentage     4.00% 4.00% 4.00%  
Four Point Three Five Percentage Senior Unsecured Notes Due March Two Thousand And Twenty Nine [Member] [Domain]            
Debt Instrument [Line Items]            
Long-term Debt, Gross     $ 1,000 $ 1,000 $ 1,000 0
Debt Instrument, Interest Rate, Stated Percentage     4.35% 4.35% 4.35%  
Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Maximum borrowing capacity     $ 1,750 $ 1,750    
Amount available for borrowing under credit facility     1,750 1,750    
Revolving credit facility     0 0   0
Standby Letters of Credit [Member]            
Debt Instrument [Line Items]            
Letters of Credit Outstanding, Amount     0 0    
Bilateral Letters Of Credit [Member]            
Debt Instrument [Line Items]            
Letters of Credit Outstanding, Amount     111 111    
Commercial paper            
Debt Instrument [Line Items]            
Maximum borrowing capacity     1,000 1,000    
Commercial paper     $ 182 $ 182   $ 605
Short-term Debt, Weighted Average Interest Rate, at Point in Time     2.64% 2.64%    
Debt Instrument, Term       15 days    
Term Loan [Member] | 364-Day due November 2019 [Member] [Domain]            
Debt Instrument [Line Items]            
Extinguishment of Debt, Amount     $ 1,800      
Debt Instrument, Basis Spread on Variable Rate 1.125%          
v3.19.1
Equity (Schedule of Share Repurchases) (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Class of Stock [Line Items]        
Payments for Repurchase of Common Stock     $ 146 $ 237
Class A [Member]        
Class of Stock [Line Items]        
Treasury Stock, Shares, Acquired 1.0 1.0 2.4 3.1
Payments for Repurchase of Common Stock $ 63 $ 73 $ 146 $ 237
Under share repurchase program | Class A [Member]        
Class of Stock [Line Items]        
Treasury Stock, Shares, Acquired 0.8 0.8 1.7 2.3
Payments for Repurchase of Common Stock $ 50 $ 60 $ 100 $ 180
To fund certain obligations under equity compensation plans | Class A [Member]        
Class of Stock [Line Items]        
Treasury Stock, Shares, Acquired 0.2 0.2 0.7 0.8
Payments for Repurchase of Common Stock $ 13 $ 13 $ 46 $ 57
v3.19.1
Equity (Narrative) (Details)
shares in Millions
Mar. 30, 2019
shares
Class A [Member]  
Class of Stock [Line Items]  
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased 21.3
v3.19.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Sep. 29, 2018
Income Tax Disclosure [Abstract]          
Effective tax rate for continuing operations 18.50% 25.30% 20.90% (54.00%)  
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Percent   (2.20%)   (79.30%)  
Unrecognized tax benefits $ 303   $ 303   $ 308
Decrease in Unrecognized Tax Benefits is Reasonably Possible $ 60   $ 60    
v3.19.1
Other Income And Charges (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Other income/expense      
Components of Other Income and Expenses [Line Items]      
Net Periodic Benefit Cost (Credit), Excluding Service Cost   $ 19  
Equity Earnings in Joint Ventures   $ 11 $ 9
Accounting Standards Update 2017-07 [Member] | Restatement Adjustment [Member] | Other income/expense      
Components of Other Income and Expenses [Line Items]      
Net Periodic Benefit Cost (Credit), Excluding Service Cost $ (4)   $ (9)
One time cash bonus [Member] | Cost of Sales      
Components of Other Income and Expenses [Line Items]      
Other Nonrecurring Expense $ 109    
v3.19.1
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Earnings Per Share, Basic and Diluted [Line Items]        
Net Income $ 430 $ 316 $ 982 $ 1,948
Less: Net Income Attributable to Noncontrolling Interests 4 1 5 2
Net income attributable to Tyson 426 315 977 1,946
Undistributed earnings $ 293 $ 207 $ 683 $ 1,703
Stock options, restricted stock and performance units 2 4 2 5
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions 366 370 366 371
Diluted $ 1.17 $ 0.85 $ 2.67 $ 5.25
Class A [Member]        
Earnings Per Share, Basic and Diluted [Line Items]        
Less dividends declared: $ 110 $ 90 $ 243 $ 201
Undistributed earnings $ 241 $ 171 $ 562 $ 1,404
Weighted average number of shares outstanding - Basic 294 296 294 296
Net Income Per Share Attributable to Tyson - Basic $ 1.20 $ 0.88 $ 2.74 $ 5.42
Common Stock, Dividends, Per Share, Declared $ 0.375 $ 0.300 $ 0.825 $ 0.675
Class B [Member]        
Earnings Per Share, Basic and Diluted [Line Items]        
Less dividends declared: $ 23 $ 18 $ 51 $ 42
Undistributed earnings $ 52 $ 36 $ 121 $ 299
Weighted average number of shares outstanding - Basic 70 70 70 70
Net Income Per Share Attributable to Tyson - Basic $ 1.07 $ 0.78 $ 2.46 $ 4.87
Common Stock, Dividends, Per Share, Declared $ 0.338 $ 0.270 $ 0.743 $ 0.608
v3.19.1
Earnings Per Share (Narrative) (Details)
shares in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
shares
Mar. 31, 2018
shares
Mar. 30, 2019
Classes
shares
Mar. 31, 2018
shares
Earnings Per Share, Basic and Diluted [Line Items]        
Number Of Classes Of Common Stock | Classes     2  
Percentage amount of per share cash dividends paid to holders of Class B stock that cannot exceed paid to holders of Class A stock 90.00%   90.00%  
Class A [Member]        
Earnings Per Share, Basic and Diluted [Line Items]        
Undistributed earnings (losses), ratio used to calculate allocation to class of stock     1  
Class B [Member]        
Earnings Per Share, Basic and Diluted [Line Items]        
Undistributed earnings (losses), ratio used to calculate allocation to class of stock     0.9  
Stock Compensation Plan [Member]        
Earnings Per Share, Basic and Diluted [Line Items]        
Antidilutive securities excluded from computation of earnings per share, shares | shares 3 1 4 1
v3.19.1
Derivative Financial Instruments (Aggregate Outstanding Notionals) (Details)
lb in Millions, bu in Millions, $ in Millions
Mar. 30, 2019
USD ($)
bu
lb
T
Sep. 29, 2018
USD ($)
bu
lb
T
Corn (in bushels)    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | bu 98 112
Soy Meal (in tons)    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | T 971,000 651,700
Live Cattle [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | lb 450 105
Lean Hogs [Member]    
Derivative [Line Items]    
Derivative, Nonmonetary Notional Amount | lb 321 39
Foreign Currency [Member]    
Derivative [Line Items]    
Derivative, Notional Amount | $ $ 237 $ 89
Interest rate hedges    
Derivative [Line Items]    
Derivative, Notional Amount | $ $ 400 $ 400
v3.19.1
Derivative Financial Instruments (Pretax Impact Of Cash Flow Hedge Derivative Instruments On The Consolidated Statements Of Income) (Details) - Cash Flow Hedging [Member] - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Derivative [Line Items]        
Gain/(Loss) Recognized in OCI on Derivatives $ (10) $ 2 $ (30) $ 0
Gain/(Loss) Reclassified from OCI to Earnings (5) (2) (12) (3)
Commodity contracts        
Derivative [Line Items]        
Gain/(Loss) Recognized in OCI on Derivatives (5) 2 (7) 0
Commodity contracts | Cost of Sales        
Derivative [Line Items]        
Gain/(Loss) Reclassified from OCI to Earnings (5) (2) (12) (3)
Interest rate hedges        
Derivative [Line Items]        
Gain/(Loss) Recognized in OCI on Derivatives (5) 0 (23) 0
Interest rate hedges | Interest Expense [Member]        
Derivative [Line Items]        
Gain/(Loss) Reclassified from OCI to Earnings $ 0 $ 0 $ 0 $ 0
v3.19.1
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 - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Gain (Loss) on forwards        
Derivative [Line Items]        
Gain/(Loss) Recognized in Earnings $ 1 $ 1 $ 0 $ (6)
Gain (Loss) on purchase contract        
Derivative [Line Items]        
Gain/(Loss) Recognized in Earnings $ (1) $ (1) $ 0 $ 6
v3.19.1
Derivative Financial Instruments (Pretax Impact Of Undesignated Derivative Instruments On The Consolidated Statements Of Income) (Details) - Undesignated - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Derivative [Line Items]        
Gain/(Loss) Recognized in Earnings $ (8) $ 36 $ (4) $ 23
Commodity contracts | Sales        
Derivative [Line Items]        
Gain/(Loss) Recognized in Earnings 13 (30) 14 (21)
Commodity contracts | Cost of Sales        
Derivative [Line Items]        
Gain/(Loss) Recognized in Earnings (24) 68 (21) 46
Foreign exchange contracts | Other income/expense        
Derivative [Line Items]        
Gain/(Loss) Recognized in Earnings $ 3 $ (2) $ 3 $ (2)
v3.19.1
Derivative Financial Instruments (Narrative) (Details)
$ in Millions
 6 Months Ended
Mar. 30, 2019
USD ($)
Commodity contracts  
Derivative [Line Items]  
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months $ (6)
Interest rate hedges  
Derivative [Line Items]  
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months (2)
Treasury Rate Locks  
Derivative [Line Items]  
Cash Flow Hedge Gain (Loss) to be Reclassified Over Life of Forecasted Fixed-Rate Debt $ (20)
v3.19.1
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Mar. 30, 2019
Sep. 29, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Liability, Collateral, Right to Reclaim Cash, Offset $ 74 $ 18
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] 5 (20)
Total assets 470 440
Derivative Liability, Netting [1] (69) (38)
Total liabilities 14 5
Fair Value, Measurements, Recurring [Member] | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 7 21
Total liabilities 0 0
Fair Value, Measurements, Recurring [Member] | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 408 388
Total liabilities 83 43
Fair Value, Measurements, Recurring [Member] | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 50 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 2 1
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Designated as hedges    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 11 1
Derivative Asset, Netting 1 (1)
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Undesignated    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 48 25
Derivative Asset, Netting 4 (19)
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-Sale Securities, Current 0 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 | Designated as hedges    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 0 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 | Undesignated    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 0 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-Sale Securities, Current 1 1
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 | Designated as hedges    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 10 2
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 | Undesignated    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 44 44
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-Sale Securities, Current 1 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 | Designated as hedges    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 0 0
Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 | Undesignated    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Assets 0 0
Other Assets [Member] | Fair Value, Measurements, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for Sale Securities, Noncurrent 99 97
Deferred compensation assets 310 316
Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for Sale Securities, Noncurrent 0 0
Deferred compensation assets 7 21
Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for Sale Securities, Noncurrent 50 46
Deferred compensation assets 303 295
Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for Sale Securities, Noncurrent 49 51
Deferred compensation assets 0 0
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Designated as hedges    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 2 0
Derivative Liability, Netting (24) (8)
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Undesignated    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 12 5
Derivative Liability, Netting (45) (30)
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 | Designated as hedges    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 0 0
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 | Undesignated    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 0 0
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 | Designated as hedges    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 26 8
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 | Undesignated    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 57 35
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 | Designated as hedges    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities 0 0
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 | Undesignated    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative Financial Instruments, Liabilities $ 0 $ 0
[1] Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at March 30, 2019, and September 29, 2018, we had $74 million and $18 million, respectively, of cash collateral posted with various counterparties where master netting arrangements exist and held no cash collateral
v3.19.1
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) - USD ($)
$ in Millions
 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance at beginning of year $ 51 $ 51
Total realized gains (losses) included in earnings 0 0
Total unrealized gains (losses) included in other comprehensive income (loss) 1 0
Purchases 7 10
Issuances 0 0
Settlements (9) (9)
Balance at end of period 50 52
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) $ 0 $ 0
v3.19.1
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) - USD ($)
$ in Millions
Mar. 30, 2019
Sep. 29, 2018
U.S. treasury and agency    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Amortized Cost Basis $ 51 $ 48
Fair Value 51 47
Unrealized Gain (Loss) 0 (1)
Corporate and asset-backed    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Amortized Cost Basis 50 52
Fair Value 50 51
Unrealized Gain (Loss) $ 0 $ (1)
v3.19.1
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) - USD ($)
$ in Millions
Mar. 30, 2019
Sep. 29, 2018
Fair Value Disclosures [Abstract]    
Total Debt, Fair Value $ 12,480 $ 9,775
Total Debt, Carrying Value $ 12,374 $ 9,873
v3.19.1
Fair Value Measurement (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Other than Temporary Impairments, Recognized in Earnings $ 0 $ 0 $ 0 $ 0
Other than Temporary Impairment Losses, Deferred in OCI $ 0 0 $ 0 0
Maximum [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Short Term Investment Maturity Period     12 months  
Available For Sale Securities Debt Maturity Period     33 years  
Prepared Foods | Non-Protein Business [Member] | Sara Lee® Frozen Bakery and Van’s® businesses [Member] | Cost of Sales        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Asset Impairment Charges   $ 75   $ 101
v3.19.1
Pension and Other Postretirement Benefit Plans (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Pension Plan [Member]        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Service cost $ 0 $ 2 $ 1 $ 4
Interest cost 16 16 32 32
Expected return on plan assets (15) (15) (29) (31)
Amortization of Net actuarial loss 1 1 1 2
Settlement loss 0 0 19 0
Net periodic cost (credit) 2 4 24 7
Other Postretirement Benefits Plan [Member]        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Interest cost 1 1 1 1
Amortization of prior service credit (1) (6) (5) (12)
Net periodic cost (credit) $ 0 $ (5) $ (4) $ (11)
v3.19.1
Pension and Other Postretirement Benefit Plans (Narrative) (Details) - Pension Plan [Member] - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Plan Assets, Contributions by Employer $ 9 $ 8 $ 12 $ 13
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year $ 3   $ 3  
v3.19.1
Other Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Other Comprehensive Income Loss [Line Items]        
Total Other Comprehensive Income (Loss), Before Tax $ 21 $ 4 $ 13 $ 5
Total Other Comprehensive Income (Loss), Tax 1 (2) 6 (1)
Total Other Comprehensive Income (Loss), Net of Taxes 22 2 19 4
Derivatives accounted for as cash flow hedges:        
Other Comprehensive Income Loss [Line Items]        
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax (10) 2 (30) 0
Other Comprehensive Income (Loss), Before Reclassifications, Tax 2 (1) 8 0
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax (8) 1 (22) 0
Derivatives accounted for as cash flow hedges: | Cost of Sales        
Other Comprehensive Income Loss [Line Items]        
Reclassification from Accumulated Other Comprehensive Income, Before Tax 5 2 12 3
Reclassification from AOCI, Current Period, Tax 0 0 (2) (1)
Reclassification from Accumulated Other Comprehensive Income, Net of Tax 5 2 10 2
Investments:        
Other Comprehensive Income Loss [Line Items]        
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax 1 1 2 0
Other Comprehensive Income (Loss), Before Reclassifications, Tax (1) (1) (1) 0
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax 0 0 1 0
Currency translation:        
Other Comprehensive Income Loss [Line Items]        
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax 25 5 34 6
Other Comprehensive Income (Loss), Before Reclassifications, Tax 0 0 (1) 0
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax 25 5 33 6
Postretirement benefits:        
Other Comprehensive Income Loss [Line Items]        
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax 0 (6) (28) (4)
Other Comprehensive Income (Loss), Before Reclassifications, Tax 0 0 8 0
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax 0 (6) (20) (4)
Postretirement benefits: | Other income/expense        
Other Comprehensive Income Loss [Line Items]        
Reclassification from Accumulated Other Comprehensive Income, Before Tax 0 0 23 0
Reclassification from AOCI, Current Period, Tax 0 0 (6) 0
Reclassification from Accumulated Other Comprehensive Income, Net of Tax $ 0 $ 0 $ 17 $ 0
v3.19.1
Segment Reporting (Segment Reporting Information, By Segment) (Details) - USD ($)
$ in Millions
 3 Months Ended 4 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 30, 2019
Mar. 31, 2018
Segment Reporting Information [Line Items]          
Sales $ 10,443 $ 9,773   $ 20,636 $ 20,002
Operating Income (Loss) 635 494   1,442 1,416
Total other expense 107 71   201 151
Income before income taxes 528 423   1,241 1,265
Beef          
Segment Reporting Information [Line Items]          
Sales 3,884     7,810  
Pork          
Segment Reporting Information [Line Items]          
Sales 1,172     2,351  
Chicken          
Segment Reporting Information [Line Items]          
Sales 3,407     6,522  
Prepared Foods          
Segment Reporting Information [Line Items]          
Sales 2,027     4,176  
Other          
Segment Reporting Information [Line Items]          
Sales 277     420  
Operating Segments [Member] | Beef          
Segment Reporting Information [Line Items]          
Sales 3,884 3,681   7,810 7,567
Operating Income (Loss) 156 92   461 348
Operating Segments [Member] | Pork          
Segment Reporting Information [Line Items]          
Sales 1,172 1,265   2,351 2,548
Operating Income (Loss) 100 67   195 218
Operating Segments [Member] | Chicken          
Segment Reporting Information [Line Items]          
Sales 3,407 2,959   6,522 5,956
Operating Income (Loss) 141 [1] 231   301 [1] 503
Operating Segments [Member] | Prepared Foods          
Segment Reporting Information [Line Items]          
Sales 2,027 2,147   4,176 4,439
Operating Income (Loss) 245 119 [2]   510 375 [2]
Segment Reconciling Items [Member] | Other          
Segment Reporting Information [Line Items]          
Sales 277 82   420 170
Operating Income (Loss) [3] (7) (15)   (25) (28)
Business Combination, Integration Related Costs 4 4   5 8
Intersegment Elimination          
Segment Reporting Information [Line Items]          
Sales (324) (361)   (643) (678)
Intersegment Elimination | Beef          
Segment Reporting Information [Line Items]          
Sales (100) (105)   (190) (199)
Intersegment Elimination | Pork          
Segment Reporting Information [Line Items]          
Sales (211) (231)   (426) (432)
Intersegment Elimination | Chicken          
Segment Reporting Information [Line Items]          
Sales (13) (25)   (27) (47)
Keystone Foods [Member]          
Segment Reporting Information [Line Items]          
Sales     $ 767    
Keystone Foods [Member] | Operating Segments [Member] | Chicken          
Segment Reporting Information [Line Items]          
Business Acquisition, Expense from Purchase Accounting and Acquisition Related Costs 5     13  
Keystone Foods [Member] | Segment Reconciling Items [Member] | Other          
Segment Reporting Information [Line Items]          
Business Acquisition, Expense from Purchase Accounting and Acquisition Related Costs $ 6     $ 24  
Sara Lee® Frozen Bakery and Van’s® businesses [Member] | Cost of Sales | Non-Protein Business [Member] | Prepared Foods          
Segment Reporting Information [Line Items]          
Asset Impairment Charges   $ 75     101
Non-Protein Business [Member] | Cost of Sales | Non-Protein Business [Member] | Prepared Foods          
Segment Reporting Information [Line Items]          
Asset Impairment Charges, Net of (Gain) Loss on Disposition of Business         $ 79
[1] (a) Chicken operating income includes $5 million and $13 million in Keystone Foods purchase accounting and acquisition related costs for the three and six months ended March 30, 2019, respectively.
[2] (b) Prepared Foods operating income includes a $75 million impairment associated with the divestiture of non-protein business and $79 million impairment net of a realized gain associated with the divestitures of non-protein businesses for the three and six months ended March 31, 2018, respectively (see Note 2: Acquisitions and Dispositions).
[3] (c) Other operating loss includes $6 million and $24 million in Keystone Foods purchase accounting and acquisition related costs for the three and six months ended March 30, 2019, respectively, and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $4 million for each of the three months ended March 30, 2019, and March 31, 2018, and $5 million for each of the the six months ended March 30, 2019, and March 31, 2018.
v3.19.1
Segment Reporting Disaggregation of Revenue (By Segment and Distribution Channel) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
Mar. 31, 2018
Mar. 30, 2019
Mar. 31, 2018
Disaggregation of Revenue [Line Items]        
Sales $ 10,443 $ 9,773 $ 20,636 $ 20,002
Beef        
Disaggregation of Revenue [Line Items]        
Sales 3,884   7,810  
Pork        
Disaggregation of Revenue [Line Items]        
Sales 1,172   2,351  
Chicken        
Disaggregation of Revenue [Line Items]        
Sales 3,407   6,522  
Prepared Foods        
Disaggregation of Revenue [Line Items]        
Sales 2,027   4,176  
Other        
Disaggregation of Revenue [Line Items]        
Sales 277   420  
Retail        
Disaggregation of Revenue [Line Items]        
Sales [1] 4,798   9,633  
Retail | Beef        
Disaggregation of Revenue [Line Items]        
Sales [1] 1,811   3,662  
Retail | Pork        
Disaggregation of Revenue [Line Items]        
Sales [1] 334   671  
Retail | Chicken        
Disaggregation of Revenue [Line Items]        
Sales [1] 1,463   2,835  
Retail | Prepared Foods        
Disaggregation of Revenue [Line Items]        
Sales [1] 1,190   2,465  
Retail | Other        
Disaggregation of Revenue [Line Items]        
Sales [1] 0   0  
Foodservice        
Disaggregation of Revenue [Line Items]        
Sales [2] 3,212   6,239  
Foodservice | Beef        
Disaggregation of Revenue [Line Items]        
Sales [2] 1,057   2,074  
Foodservice | Pork        
Disaggregation of Revenue [Line Items]        
Sales [2] 93   184  
Foodservice | Chicken        
Disaggregation of Revenue [Line Items]        
Sales [2] 1,307   2,437  
Foodservice | Prepared Foods        
Disaggregation of Revenue [Line Items]        
Sales [2] 755   1,544  
Foodservice | Other        
Disaggregation of Revenue [Line Items]        
Sales [2] 0   0  
International        
Disaggregation of Revenue [Line Items]        
Sales [3] 1,235   2,412  
International | Beef        
Disaggregation of Revenue [Line Items]        
Sales [3] 573   1,201  
International | Pork        
Disaggregation of Revenue [Line Items]        
Sales [3] 210   435  
International | Chicken        
Disaggregation of Revenue [Line Items]        
Sales [3] 155   312  
International | Prepared Foods        
Disaggregation of Revenue [Line Items]        
Sales [3] 20   44  
International | Other        
Disaggregation of Revenue [Line Items]        
Sales [3] 277   420  
Industrial and Other        
Disaggregation of Revenue [Line Items]        
Sales [4] 1,198   2,352  
Industrial and Other | Beef        
Disaggregation of Revenue [Line Items]        
Sales [4] 343   683  
Industrial and Other | Pork        
Disaggregation of Revenue [Line Items]        
Sales [4] 324   635  
Industrial and Other | Chicken        
Disaggregation of Revenue [Line Items]        
Sales [4] 469   911  
Industrial and Other | Prepared Foods        
Disaggregation of Revenue [Line Items]        
Sales [4] 62   123  
Industrial and Other | Other        
Disaggregation of Revenue [Line Items]        
Sales [4] 0   0  
Intersegment Elimination        
Disaggregation of Revenue [Line Items]        
Sales 0   0  
Intersegment Elimination | Beef        
Disaggregation of Revenue [Line Items]        
Sales 100   190  
Intersegment Elimination | Pork        
Disaggregation of Revenue [Line Items]        
Sales 211   426  
Intersegment Elimination | Chicken        
Disaggregation of Revenue [Line Items]        
Sales 13   27  
Intersegment Elimination | Prepared Foods        
Disaggregation of Revenue [Line Items]        
Sales 0   0  
Intersegment Elimination | Other        
Disaggregation of Revenue [Line Items]        
Sales 0   0  
Intersegment Elimination        
Disaggregation of Revenue [Line Items]        
Sales (324) (361) (643) (678)
Intersegment Elimination | Beef        
Disaggregation of Revenue [Line Items]        
Sales (100) (105) (190) (199)
Intersegment Elimination | Pork        
Disaggregation of Revenue [Line Items]        
Sales (211) (231) (426) (432)
Intersegment Elimination | Chicken        
Disaggregation of Revenue [Line Items]        
Sales (13) $ (25) (27) $ (47)
Intersegment Elimination | Intersegment Elimination        
Disaggregation of Revenue [Line Items]        
Sales $ (324)   $ (643)  
[1] (a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers
[2] (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military.
[3] (c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products.
[4] (d) Includes sales to industrial food processing companies that further process our product to sell to end consumers and any remaining sales not included in the Consumer Products, Foodservice or International categories.
v3.19.1
Segment Reporting (Narrative) (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 30, 2019
USD ($)
Mar. 31, 2018
USD ($)
Mar. 30, 2019
USD ($)
Segments
Mar. 31, 2018
USD ($)
Segment Reporting Information [Line Items]        
Number of Operating Segments | Segments     4  
Sales $ 10,443 $ 9,773 $ 20,636 $ 20,002
Beef        
Segment Reporting Information [Line Items]        
Sales 3,884   7,810  
Pork        
Segment Reporting Information [Line Items]        
Sales 1,172   2,351  
Chicken        
Segment Reporting Information [Line Items]        
Sales 3,407   6,522  
Intersegment Elimination        
Segment Reporting Information [Line Items]        
Sales (324) (361) (643) (678)
Intersegment Elimination | Beef        
Segment Reporting Information [Line Items]        
Sales (100) (105) (190) (199)
Intersegment Elimination | Pork        
Segment Reporting Information [Line Items]        
Sales (211) (231) (426) (432)
Intersegment Elimination | Chicken        
Segment Reporting Information [Line Items]        
Sales $ (13) $ (25) $ (27) $ (47)
v3.19.1
Commitments (Narrative) (Details) - USD ($)
$ in Millions
 6 Months Ended
Mar. 30, 2019
Sep. 29, 2018
Guarantor Obligations [Line Items]    
Potential maximum obligation under cash flow assistance programs $ 300  
Total receivables under cash flow assistance programs 20 $ 6
Uncollectible receivables estimated under cash flow assistance programs 0 0
Guarantor Obligations, Current Carrying Value 0 $ 0
Industrial Revenue Bonds [Member]    
Guarantor Obligations [Line Items]    
Industrial Revenue Bonds 698  
Lease Residual Value Guarantees [Domain]    
Guarantor Obligations [Line Items]    
Maximum potential amount $ 97  
Guarantee Obligations [Member]    
Guarantor Obligations [Line Items]    
Guarantor Obligations, Maximum Exposure, Period 10 years  
Maximum potential amount $ 0  
Maximum [Member] | Lease Residual Value Guarantees [Domain]    
Guarantor Obligations [Line Items]    
Lessee, Operating Lease, Term of Contract 10 years  
v3.19.1
Contingencies (Narrative) (Details)
 1 Months Ended 12 Months Ended
Dec. 21, 2016
USD ($)
Plantiffs
Dec. 21, 2016
PHP (₱)
Plantiffs
Nov. 29, 2016
USD ($)
Plantiffs
Nov. 29, 2016
PHP (₱)
Plantiffs
Jun. 23, 2014
USD ($)
Jun. 23, 2014
PHP (₱)
Aug. 31, 2017
USD ($)
Dec. 31, 2004
USD ($)
Dec. 31, 2004
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, Value     $ 282,000,000 ₱ 14,858,495,937       $ 66,000,000 ₱ 3,453,664,710
Loss Contingency, Number of Plaintiffs, Award Increase     4,922 4,922          
Estimated Percentage of Settling Complainants 18.00% 18.00%              
Loss Contingency, Number of Plaintiffs 5,984 5,984 5,984 5,984          
Loss Contingency, Damages Paid Per Complainant $ 1,300 ₱ 68,000              
Mark Lopez Case [Member]                  
Loss Contingencies [Line Items]                  
Loss Contingency, Damages Awarded, Value | $             $ 13,000,000    
Maximum [Member] | Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member]                  
Loss Contingencies [Line Items]                  
Litigation settlement, amount requested by respondent         $ 6,500,000 ₱ 342,287,800