CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

TFM Parent, our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. Additionally, TFM Parent has fully and unconditionally guaranteed the 2022 Notes until such date TFM Parent has been released of its guarantee of both (i) Tyson's $1.0 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2022 Notes is permanently released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc. (TFI Parent); TFM Parent; the Non-Guarantors Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor.




Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 28, 2013													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	167		$	5,048		$	3,987		$	(441	)	$	8,761
Cost of Sales	17			4,826			3,674			(441		)	8,076
Gross Profit	150			222			313			—			685
Selling, General and Administrative	23			55			195			—			273
Operating Income	127			167			118			—			412
Other (Income) Expense:
Interest expense, net	5			15			6			—			26
Other, net	6			(1		)	(2		)	—			3
Equity in net earnings of subsidiaries	(175		)	(6		)	—			181			—
Total Other (Income) Expense	(164		)	8			4			181			29
Income from Continuing Operations before Income Taxes	291			159			114			(181		)	383
Income Tax Expense	37			52			42			—			131
Income from Continuing Operations	254			107			72			(181		)	252
Loss from Discontinued Operation, Net of Tax	—			—			—			—			—
Net Income	254			107			72			(181		)	252
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(2		)	—			(2		)
Net Income Attributable to Tyson	$	254		$	107		$	74		$	(181	)	$	254

Comprehensive Income (Loss)	244			102			63			(165		)	244
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(2		)	—			(2		)
Comprehensive Income (Loss) Attributable to Tyson	$	244		$	102		$	65		$	(165	)	$	246




Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 29, 2012													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	75		$	4,750		$	3,868		$	(327	)	$	8,366
Cost of Sales	16			4,538			3,600			(327		)	7,827
Gross Profit	59			212			268			—			539
Selling, General and Administrative	20			52			163			—			235
Operating Income	39			160			105			—			304
Other (Income) Expense:
Interest expense, net	8			16			12			—			36
Other, net	—			—			—			—			—
Equity in net earnings of subsidiaries	(149		)	(24		)	—			173			—
Total Other (Income) Expense	(141		)	(8		)	12			173			36
Income from Continuing Operations before Income Taxes	180			168			93			(173		)	268
Income Tax Expense	7			51			38			—			96
Income from Continuing Operations	173			117			55			(173		)	172
Loss from Discontinued Operation, Net of Tax	—			—			(4		)	—			(4		)
Net Income	173			117			51			(173		)	168
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(5		)	—			(5		)
Net Income Attributable to Tyson	173			117			56			(173		)	173

Comprehensive Income (Loss)	157			121			50			(171		)	157
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(5		)	—			(5		)
Comprehensive Income (Loss) Attributable to Tyson	$	157		$	121		$	55		$	(171	)	$	162



Condensed Consolidating Balance Sheet as of December 28, 2013										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	10	$	815	$	—		$	825
Accounts receivable, net	1		594		902		—			1,497
Inventories	—		1,034		1,744		—			2,778
Other current assets	36		49		116		(71		)	130
Total Current Assets	37		1,687		3,577		(71		)	5,230
Net Property, Plant and Equipment	31		899		3,142		—			4,072
Goodwill	—		880		1,027		—			1,907
Intangible Assets	—		19		114		—			133
Other Assets	897		167		254		(816		)	502
Investment in Subsidiaries	12,141		2,035		—		(14,176		)	—
Total Assets	$	13,106	$	5,687	$	8,114	$	(15,063	)	$	11,844

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	—	$	—	$	78	$	(26	)	$	52
Accounts payable	30		746		701		—			1,477
Other current liabilities	4,858		191		826		(4,798		)	1,077
Total Current Liabilities	4,888		937		1,605		(4,824		)	2,606
Long-Term Debt	1,771		678		234		(793		)	1,890
Deferred Income Taxes	20		75		355		—			450
Other Liabilities	142		163		300		(23		)	582

Total Tyson Shareholders’ Equity	6,285		3,834		5,589		(9,423		)	6,285
Noncontrolling Interest	—		—		31		—			31
Total Shareholders’ Equity	6,285		3,834		5,620		(9,423		)	6,316
Total Liabilities and Shareholders’ Equity	$	13,106	$	5,687	$	8,114	$	(15,063	)	$	11,844



Condensed Consolidating Balance Sheet as of September 28, 2013										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	21	$	1,124	$	—		$	1,145
Accounts receivable, net	—		571		926		—			1,497
Inventories	—		1,039		1,778		—			2,817
Other current assets	351		88		117		(411		)	145
Total Current Assets	351		1,719		3,945		(411		)	5,604
Net Property, Plant and Equipment	32		891		3,130		—			4,053
Goodwill	—		881		1,021		—			1,902
Intangible Assets	—		21		117		—			138
Other Assets	895		162		244		(821		)	480
Investment in Subsidiaries	11,975		2,035		—		(14,010		)	—
Total Assets	$	13,253	$	5,709	$	8,457	$	(15,242	)	$	12,177

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	457	$	132	$	251	$	(327	)	$	513
Accounts payable	27		575		757		—			1,359
Other current liabilities	4,625		200		901		(4,588		)	1,138
Total Current Liabilities	5,109		907		1,909		(4,915		)	3,010
Long-Term Debt	1,770		679		241		(795		)	1,895
Deferred Income Taxes	24		93		362		—			479
Other Liabilities	149		155		282		(26		)	560

Total Tyson Shareholders’ Equity	6,201		3,875		5,631		(9,506		)	6,201
Noncontrolling Interest	—		—		32		—			32
Total Shareholders’ Equity	6,201		3,875		5,663		(9,506		)	6,233
Total Liabilities and Shareholders’ Equity	$	13,253	$	5,709	$	8,457	$	(15,242	)	$	12,177



Condensed Consolidating Statement of Cash Flows for the three months ended December 28, 2013												in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations		Total
Cash Provided by (Used for) Operating Activities	$	(4	)	$	284		$	81		$	—	$	361
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(1		)	(35		)	(104		)	—		(140		)
(Purchases of)/Proceeds from marketable securities, net	—			—			(1		)	—		(1		)
Other, net	—			1			(4		)	—		(3		)
Cash Provided by (Used for) Investing Activities	(1		)	(34		)	(109		)	—		(144		)
Cash Flows from Financing Activities:
Net change in debt	(367		)	—			(6		)	—		(373		)
Purchases of Tyson Class A common stock	(159		)	—			—			—		(159		)
Dividends	(25		)	—			—			—		(25		)
Stock options exercised	12			—			—			—		12
Other, net	5			—			—			—		5
Net change in intercompany balances	539			(261		)	(278		)	—		—
Cash Provided by (Used for) Financing Activities	5			(261		)	(284		)	—		(540		)
Effect of Exchange Rate Change on Cash	—			—			3			—		3
Increase (Decrease) in Cash and Cash Equivalents	—			(11		)	(309		)	—		(320		)
Cash and Cash Equivalents at Beginning of Year	—			21			1,124			—		1,145
Cash and Cash Equivalents at End of Period	$	—		$	10		$	815		$	—	$	825



Condensed Consolidating Statement of Cash Flows for the three months ended December 29, 2012												in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations		Total
Cash Provided by (Used for) Operating Activities	$	21		$	234		$	(65	)	$	—	$	190
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(2		)	(24		)	(131		)	—		(157		)
(Purchases of)/Proceeds from marketable securities, net	—			—			1			—		1
Other, net	—			—			4			—		4
Cash Provided by (Used for) Investing Activities	(2		)	(24		)	(126		)	—		(152		)
Cash Flows from Financing Activities:
Net change in debt	—			—			(11		)	—		(11		)
Purchases of Tyson Class A common stock	(115		)	—			—			—		(115		)
Dividends	(53		)	—			—			—		(53		)
Stock options exercised	19			—			—			—		19
Other, net	3			—			(1		)	—		2
Net change in intercompany balances	126			(199		)	73			—		—
Cash Provided by (Used for) Financing Activities	(20		)	(199		)	61			—		(158		)
Effect of Exchange Rate Change on Cash	—			—			—			—		—
Increase (Decrease) in Cash and Cash Equivalents	(1		)	11			(130		)	—		(120		)
Cash and Cash Equivalents at Beginning of Year	1			9			1,061			—		1,071
Cash and Cash Equivalents at End of Period	$	—		$	20		$	931		$	—	$	951