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 March 28, 2015													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	221		$	5,252		$	4,977		$	(471	)	$	9,979
Cost of Sales	17			5,122			4,321			(470		)	8,990
Gross Profit	204			130			656			(1		)	989
Selling, General and Administrative	32			59			352			(1		)	442
Operating Income	172			71			304			—			547
Other (Income) Expense:
Interest expense, net	64			1			5			—			70
Other, net	(1		)	(2		)	(3		)	—			(6		)
Equity in net earnings of subsidiaries	(247		)	(50		)	—			297			—
Total Other (Income) Expense	(184		)	(51		)	2			297			64
Income (Loss) before Income Taxes	356			122			302			(297		)	483
Income Tax (Benefit) Expense	46			24			102			—			172
Net Income	310			98			200			(297		)	311
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			1			—			1
Net Income Attributable to Tyson	$	310		$	98		$	199		$	(297	)	$	310

Comprehensive Income (Loss)	288			72			176			(249		)	287
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			1			—			1
Comprehensive Income (Loss) Attributable to Tyson	$	288		$	72		$	175		$	(249	)	$	286




Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended March 29, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	148		$	5,168		$	4,159		$	(443	)	$	9,032
Cost of Sales	4			4,953			3,867			(443		)	8,381
Gross Profit	144			215			292			—			651
Selling, General and Administrative	28			57			205			—			290
Operating Income	116			158			87			—			361
Other (Income) Expense:
Interest expense, net	(15		)	34			3			—			22
Other, net	1			—			(3		)	—			(2		)
Equity in net earnings of subsidiaries	(128		)	(6		)	—			134			—
Total Other (Income) Expense	(142		)	28			—			134			20
Income (Loss) before Income Taxes	258			130			87			(134		)	341
Income Tax (Benefit) Expense	45			44			42			—			131
Net Income	213			86			45			(134		)	210
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(3		)	—			(3		)
Net Income Attributable to Tyson	$	213		$	86		$	48		$	(134	)	$	213

Comprehensive Income (Loss)	224			91			51			(143		)	223
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(3		)	—			(3		)
Comprehensive Income (Loss) Attributable to Tyson	$	224		$	91		$	54		$	(143	)	$	226




Condensed Consolidating Statement of Income and Comprehensive Income for the six months ended March 28, 2015													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	449		$	11,061		$	10,302		$	(1,016	)	$	20,796
Cost of Sales	36			10,784			9,043			(1,012		)	18,851
Gross Profit	413			277			1,259			(4		)	1,945
Selling, General and Administrative	66			120			707			(4		)	889
Operating Income	347			157			552			—			1,056
Other (Income) Expense:
Interest expense, net	133			1			11			—			145
Other, net	(2		)	(2		)	(3		)	—			(7		)
Equity in net earnings of subsidiaries	(484		)	(88		)	—			572			—
Total Other (Income) Expense	(353		)	(89		)	8			572			138
Income (Loss) before Income Taxes	700			246			544			(572		)	918
Income Tax (Benefit) Expense	81			54			162			—			297
Net Income	619			192			382			(572		)	621
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			2			—			2
Net Income Attributable to Tyson	$	619		$	192		$	380		$	(572	)	$	619

Comprehensive Income (Loss)	620			176			362			(538		)	620
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			2			—			2
Comprehensive Income (Loss) Attributable to Tyson	$	620		$	176		$	360		$	(538	)	$	618




Condensed Consolidating Statement of Income and Comprehensive Income for the six months ended March 29, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	315		$	10,216		$	8,146		$	(884	)	$	17,793
Cost of Sales	21			9,779			7,541			(884		)	16,457
Gross Profit	294			437			605			—			1,336
Selling, General and Administrative	51			112			400			—			563
Operating Income	243			325			205			—			773
Other (Income) Expense:
Interest expense, net	(10		)	49			9			—			48
Other, net	7			(1		)	(5		)	—			1
Equity in net earnings of subsidiaries	(303		)	(12		)	—			315			—
Total Other (Income) Expense	(306		)	36			4			315			49
Income (Loss) before Income Taxes	549			289			201			(315		)	724
Income Tax (Benefit) Expense	82			96			84			—			262
Net Income	467			193			117			(315		)	462
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(5		)	—			(5		)
Net Income Attributable to Tyson	$	467		$	193		$	122		$	(315	)	$	467

Comprehensive Income (Loss)	467			192			114			(306		)	467
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(5		)	—			(5		)
Comprehensive Income (Loss) Attributable to Tyson	$	467		$	192		$	119		$	(306	)	$	472



Condensed Consolidating Balance Sheet as of March 28, 2015										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	30	$	193	$	—		$	223
Accounts receivable, net	—		587		1,045		—			1,632
Inventories	—		1,405		1,857		—			3,262
Other current assets	35		62		280		(31		)	346
Assets held for sale	3		—		202		—			205
Total Current Assets	38		2,084		3,577		(31		)	5,668
Net Property, Plant and Equipment	27		965		4,286		—			5,278
Goodwill	—		881		5,808		—			6,689
Intangible Assets, net	—		13		5,210		—			5,223
Other Assets	162		154		352		—			668
Investment in Subsidiaries	21,365		2,115		—		(23,480		)	—
Total Assets	$	21,592	$	6,212	$	19,233	$	(23,511	)	$	23,526

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	827	$	1	$	409	$	(1	)	$	1,236
Accounts payable	32		761		901		—			1,694
Other current liabilities	5,259		148		804		(5,139		)	1,072
Liabilities held for sale	—		—		49		—			49
Total Current Liabilities	6,118		910		2,163		(5,140		)	4,051
Long-Term Debt	5,932		1		505		—			6,438
Deferred Income Taxes	12		98		2,342		—			2,452
Other Liabilities	175		118		922		—			1,215

Total Tyson Shareholders’ Equity	9,355		5,085		13,286		(18,371		)	9,355
Noncontrolling Interest	—		—		15		—			15
Total Shareholders’ Equity	9,355		5,085		13,301		(18,371		)	9,370
Total Liabilities and Shareholders’ Equity	$	21,592	$	6,212	$	19,233	$	(23,511	)	$	23,526



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 six months ended March 28, 2015													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Cash Provided by (Used for) Operating Activities	$	113		$	33		$	672		$	(10	)	$	808
Cash Flows from Investing Activities:
Additions to property, plant and equipment	—			(86		)	(349		)	—			(435		)
(Purchases of)/Proceeds from marketable securities, net	—			—			(2		)	—			(2		)
Proceeds from sale of businesses	—			—			142			—			142
Other, net	—			2			2			—			4
Cash Provided by (Used for) Investing Activities	—			(84		)	(207		)	—			(291		)
Cash Flows from Financing Activities:
Net change in debt	(539		)	—			(1		)	—			(540		)
Purchases of Tyson Class A common stock	(150		)	—			—			—			(150		)
Dividends	(75		)	—			(10		)	10			(75		)
Stock options exercised	34			—			—			—			34
Other, net	4			—			6			—			10
Net change in intercompany balances	613			40			(653		)	—			—
Cash Provided by (Used for) Financing Activities	(113		)	40			(658		)	10			(721		)
Effect of Exchange Rate Change on Cash	—			—			(11		)	—			(11		)
Increase (Decrease) in Cash and Cash Equivalents	—			(11		)	(204		)	—			(215		)
Cash and Cash Equivalents at Beginning of Year	—			41			397			—			438
Cash and Cash Equivalents at End of Period	$	—		$	30		$	193		$	—		$	223



Condensed Consolidating Statement of Cash Flows for the six months ended March 29, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Cash Provided by (Used for) Operating Activities	$	10		$	129		$	171		$	(45	)	$	265
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(1		)	(67		)	(225		)	—			(293		)
(Purchases of)/Proceeds from marketable securities, net	—			—			(3		)	—			(3		)
Acquisitions, net of cash acquired	—			—			(56		)	—			(56		)
Other, net	—			1			7			—			8
Cash Provided by (Used for) Investing Activities	(1		)	(66		)	(277		)	—			(344		)
Cash Flows from Financing Activities:
Net change in debt	(370		)	—			(6		)	—			(376		)
Purchases of Tyson Class A common stock	(275		)	—			—			—			(275		)
Dividends	(50		)	—			(45		)	45			(50		)
Stock options exercised	49			—			—			—			49
Other, net	19			—			—			—			19
Net change in intercompany balances	618			(64		)	(554		)	—			—
Cash Provided by (Used for) Financing Activities	(9		)	(64		)	(605		)	45			(633		)
Effect of Exchange Rate Change on Cash	—			—			5			—			5
Increase (Decrease) in Cash and Cash Equivalents	—			(1		)	(706		)	—			(707		)
Cash and Cash Equivalents at Beginning of Year	—			21			1,124			—			1,145
Cash and Cash Equivalents at End of Period	$	—		$	20		$	418		$	—		$	438