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-Guarantor 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 January 2, 2016												in millions
	TFI Parent			TFM Parent			Non- Guarantors		Eliminations			Total
Sales	$	221		$	4,833		$	4,653	$	(555	)	$	9,152
Cost of Sales	8			4,536			3,960		(553		)	7,951
Gross Profit	213			297			693		(2		)	1,201
Selling, General and Administrative	25			66			336		(2		)	425
Operating Income	188			231			357		—			776
Other (Income) Expense:
Interest expense, net	61			—			4		—			65
Other, net	—			(1		)	—		—			(1		)
Equity in net earnings of subsidiaries	(383		)	(33		)	—		416			—
Total Other (Income) Expense	(322		)	(34		)	4		416			64
Income (Loss) before Income Taxes	510			265			353		(416		)	712
Income Tax (Benefit) Expense	49			83			119		—			251
Net Income	461			182			234		(416		)	461
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			—		—			—
Net Income Attributable to Tyson	$	461		$	182		$	234	$	(416	)	$	461

Comprehensive Income (Loss)	453			177			223		(400		)	453
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			—		—			—
Comprehensive Income (Loss) Attributable to Tyson	$	453		$	177		$	223	$	(400	)	$	453




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 Balance Sheet as of January 2, 2016										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	15	$	1,172	$	—		$	1,187
Accounts receivable, net	—		514		1,000		—			1,514
Inventories	—		953		1,865		—			2,818
Other current assets	16		66		131		(55		)	158
Total Current Assets	16		1,548		4,168		(55		)	5,677
Net Property, Plant and Equipment	25		978		4,181		—			5,184
Goodwill	—		881		5,788		—			6,669
Intangible Assets, net	—		9		5,136		—			5,145
Other Assets	118		132		365		—			615
Investment in Subsidiaries	22,213		2,205		—		(24,418		)	—
Total Assets	$	22,372	$	5,753	$	19,638	$	(24,473	)	$	23,290

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	707	$	1	$	17	$	(8	)	$	717
Accounts payable	20		919		842		—			1,781
Other current liabilities	6,187		200		832		(6,049		)	1,170
Total Current Liabilities	6,914		1,120		1,691		(6,057		)	3,668
Long-Term Debt	5,484		1		503		—			5,988
Deferred Income Taxes	14		106		2,394		—			2,514
Other Liabilities	198		123		1,022		—			1,343

Total Tyson Shareholders’ Equity	9,762		4,403		14,013		(18,416		)	9,762
Noncontrolling Interest	—		—		15		—			15
Total Shareholders’ Equity	9,762		4,403		14,028		(18,416		)	9,777
Total Liabilities and Shareholders’ Equity	$	22,372	$	5,753	$	19,638	$	(24,473	)	$	23,290



Condensed Consolidating Balance Sheet as of October 3, 2015										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	12	$	676	$	—		$	688
Accounts receivable, net	—		578		1,042		—			1,620
Inventories	1		1,009		1,868		—			2,878
Other current assets	43		91		147		(86		)	195
Total Current Assets	44		1,690		3,733		(86		)	5,381
Net Property, Plant and Equipment	26		975		4,175		—			5,176
Goodwill	—		881		5,786		—			6,667
Intangible Assets, net	—		10		5,158		—			5,168
Other Assets	129		146		337		—			612
Investment in Subsidiaries	21,850		2,177		—		(24,027		)	—
Total Assets	$	22,049	$	5,879	$	19,189	$	(24,113	)	$	23,004

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	710	$	1	$	22	$	(18	)	$	715
Accounts payable	28		698		936		—			1,662
Other current liabilities	5,930		152		939		(5,863		)	1,158
Total Current Liabilities	6,668		851		1,897		(5,881		)	3,535
Long-Term Debt	5,498		1		511		—			6,010
Deferred Income Taxes	—		98		2,351		—			2,449
Other Liabilities	192		118		994		—			1,304

Total Tyson Shareholders’ Equity	9,691		4,811		13,421		(18,232		)	9,691
Noncontrolling Interest	—		—		15		—			15
Total Shareholders’ Equity	9,691		4,811		13,436		(18,232		)	9,706
Total Liabilities and Shareholders’ Equity	$	22,049	$	5,879	$	19,189	$	(24,113	)	$	23,004



Condensed Consolidating Statement of Cash Flows for the three months ended January 2, 2016												in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations		Total
Cash Provided by (Used for) Operating Activities	$	174		$	622		$	299		$	—	$	1,095
Cash Flows from Investing Activities:
Additions to property, plant and equipment	—			(33		)	(155		)	—		(188		)
(Purchases of)/Proceeds from marketable securities, net	—			—			(2		)	—		(2		)
Proceeds from sale of businesses	—			—			—			—		—
Other, net	—			—			(1		)	—		(1		)
Cash Provided by (Used for) Investing Activities	—			(33		)	(158		)	—		(191		)
Cash Flows from Financing Activities:
Net change in debt	(19		)	—			(1		)	—		(20		)
Purchases of Tyson Class A common stock	(387		)	—			—			—		(387		)
Dividends	(54		)	—			—			—		(54		)
Stock options exercised	34			—			—			—		34
Other, net	23			—			—			—		23
Net change in intercompany balances	229			(586		)	357			—		—
Cash Provided by (Used for) Financing Activities	(174		)	(586		)	356			—		(404		)
Effect of Exchange Rate Change on Cash	—			—			(1		)	—		(1		)
Increase (Decrease) in Cash and Cash Equivalents	—			3			496			—		499
Cash and Cash Equivalents at Beginning of Year	—			12			676			—		688
Cash and Cash Equivalents at End of Period	$	—		$	15		$	1,172		$	—	$	1,187



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