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 $1.25 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2019, 2022, 2024, 2034 and 2044 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 27, 2014												in millions
	TFI Parent			TFM Parent			Non- Guarantors		Eliminations			Total
Sales	$	228		$	5,809		$	5,325	$	(545	)	$	10,817
Cost of Sales	19			5,662			4,722		(542		)	9,861
Gross Profit	209			147			603		(3		)	956
Selling, General and Administrative	34			61			355		(3		)	447
Operating Income	175			86			248		—			509
Other (Income) Expense:
Interest expense, net	69			—			6		—			75
Other, net	(1		)	—			—		—			(1		)
Equity in net earnings of subsidiaries	(237		)	(38		)	—		275			—
Total Other (Income) Expense	(169		)	(38		)	6		275			74
Income (Loss) before Income Taxes	344			124			242		(275		)	435
Income Tax (Benefit) Expense	35			30			60		—			125
Net Income	309			94			182		(275		)	310
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			1		—			1
Net Income Attributable to Tyson	$	309		$	94		$	181	$	(275	)	$	309

Comprehensive Income (Loss)	332			104			186		(289		)	333
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			1		—			1
Comprehensive Income (Loss) Attributable to Tyson	$	332		$	104		$	185	$	(289	)	$	332




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 (Loss) before Income Taxes	291			159			114			(181		)	383
Income Tax (Benefit) Expense	37			52			42			—			131
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 Balance Sheet as of December 27, 2014										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	12	$	369	$	—		$	381
Accounts receivable, net	1		724		1,052		—			1,777
Inventories	—		1,312		1,880		—			3,192
Other current assets	43		67		301		(36		)	375
Assets held for sale	3		—		210		—			213
Total Current Assets	47		2,115		3,812		(36		)	5,938
Net Property, Plant and Equipment	28		948		4,235		—			5,211
Goodwill	—		881		5,819		—			6,700
Intangible Assets, net	—		14		5,232		—			5,246
Other Assets	160		149		354		—			663
Investment in Subsidiaries	21,153		2,092		—		(23,245		)	—
Total Assets	$	21,388	$	6,199	$	19,452	$	(23,281	)	$	23,758

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	189	$	—	$	407	$	—		$	596
Accounts payable	28		1,148		971		—			2,147
Other current liabilities	5,414		163		859		(5,279		)	1,157
Liabilities held for sale	—		—		54		—			54
Total Current Liabilities	5,631		1,311		2,291		(5,279		)	3,954
Long-Term Debt	6,441		2		488		—			6,931
Deferred Income Taxes	17		101		2,355		—			2,473
Other Liabilities	176		127		960		—			1,263

Total Tyson Shareholders’ Equity	9,123		4,658		13,344		(18,002		)	9,123
Noncontrolling Interest	—		—		14		—			14
Total Shareholders’ Equity	9,123		4,658		13,358		(18,002		)	9,137
Total Liabilities and Shareholders’ Equity	$	21,388	$	6,199	$	19,452	$	(23,281	)	$	23,758



Condensed Consolidating Balance Sheet as of September 27, 2014										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	41	$	397	$	—		$	438
Accounts receivable, net	3		665		1,016		—			1,684
Inventories	—		1,272		2,002		—			3,274
Other current assets	42		78		379		(120		)	379
Assets held for sale	3		—		443		—			446
Total Current Assets	48		2,056		4,237		(120		)	6,221
Net Property, Plant and Equipment	30		932		4,168		—			5,130
Goodwill	—		881		5,825		—			6,706
Intangible Assets, net	—		15		5,261		—			5,276
Other Assets	204		148		326		(55		)	623
Investment in Subsidiaries	20,845		2,049		—		(22,894		)	—
Total Assets	$	21,127	$	6,081	$	19,817	$	(23,069	)	$	23,956

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	240	$	—	$	403	$	—		$	643
Accounts payable	35		755		1,016		—			1,806
Other current liabilities	4,718		235		921		(4,667		)	1,207
Liabilities held for sale	—		—		141		—			141
Total Current Liabilities	4,993		990		2,481		(4,667		)	3,797
Long-Term Debt	7,056		2		532		(55		)	7,535
Deferred Income Taxes	21		96		2,333		—			2,450
Other Liabilities	167		125		978		—			1,270

Total Tyson Shareholders’ Equity	8,890		4,868		13,479		(18,347		)	8,890
Noncontrolling Interest	—		—		14		—			14
Total Shareholders’ Equity	8,890		4,868		13,493		(18,347		)	8,904
Total Liabilities and Shareholders’ Equity	$	21,127	$	6,081	$	19,817	$	(23,069	)	$	23,956



Condensed Consolidating Statement of Cash Flows for the three months ended December 27, 2014												in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations		Total
Cash Provided by (Used for) Operating Activities	$	55		$	325		$	432		$	—	$	812
Cash Flows from Investing Activities:
Additions to property, plant and equipment	—			(40		)	(191		)	—		(231		)
(Purchases of)/Proceeds from marketable securities, net	—			—			(3		)	—		(3		)
Proceeds from sale of businesses	—			—			142			—		142
Other, net	—			—			3			—		3
Cash Provided by (Used for) Investing Activities	—			(40		)	(49		)	—		(89		)
Cash Flows from Financing Activities:
Net change in debt	(667		)	—			(1		)	—		(668		)
Purchases of Tyson Class A common stock	(91		)	—			—			—		(91		)
Dividends	(37		)	—			—			—		(37		)
Stock options exercised	16			—			—			—		16
Other, net	5			—			—			—		5
Net change in intercompany balances	719			(314		)	(405		)	—		—
Cash Provided by (Used for) Financing Activities	(55		)	(314		)	(406		)	—		(775		)
Effect of Exchange Rate Change on Cash	—			—			(5		)	—		(5		)
Increase (Decrease) in Cash and Cash Equivalents	—			(29		)	(28		)	—		(57		)
Cash and Cash Equivalents at Beginning of Year	—			41			397			—		438
Cash and Cash Equivalents at End of Period	$	—		$	12		$	369		$	—	$	381



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