XML 53 R23.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Reporting | 3 Months Ended
--- | ---
Dec. 29, 2018
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. On November 10, 2017, we acquired Original Philly, a valued added protein business. The results from operations of this business are included in the Prepared Foods and Chicken segments. On June 4, 2018, we acquired Tecumseh, a vertically integrated value-added protein business, and on August 20, 2018, we acquired American Proteins, a poultry rendering and blending operation as part of our strategic expansion and sustainability initiatives. The results from operations of these businesses are included in our Chicken segment. On November 30, 2018, we acquired Keystone Foods, our latest investment in furtherance of our growth strategy and expansion of our value-added protein capabilities. The results from operations of this business are included in the Chicken segment and Other. For further description of these transactions, refer to Part I, Item 1, Notes to Consolidated Condensed Financial Statements, Note 2: Acquisitions and Dispositions. On December 30, 2017, we completed the sale of our Kettle business, on July 30, 2018, we completed the sale of Sara Lee® Frozen Bakery and Van’s® businesses, and on September 2, 2018, we completed the sale of our TNT crust business, as part of our strategic focus on protein brands. All of these businesses were part of our Prepared Foods segment. For further description of these transactions, refer to Part I, Item 1, Notes to Consolidated Condensed Financial Statements, Note 2: Acquisitions and Dispositions. Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. Products are marketed domestically to 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 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 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 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 |
| December 29, 2018 |  | December 30, 2017 |
Sales: |  |  |  |
Beef | $ | 3,926 |  |  | $ | 3,886 |  |
Pork | 1,179 |  |  | 1,283 |  |
Chicken | 3,115 |  |  | 2,997 |  |
Prepared Foods | 2,149 |  |  | 2,292 |  |
Other | 143 |  |  | 88 |  |
Intersegment | (319 | ) |  | (317 | ) |
Total sales | $ | 10,193 |  |  | $ | 10,229 |  |
Operating income (loss): |  |  |  |
Beef | $ | 305 |  |  | $ | 256 |  |
Pork | 95 |  |  | 151 |  |
Chicken | 160 |  | (a) | 272 |  |
Prepared Foods | 265 |  |  | 256 |  |
Other | (18 | ) | (b) | (13 | ) | (b)
Total operating income | 807 |  |  | 922 |  |
Total other (income) expense | 94 |  |  | 80 |  |
Income before income taxes | $ | 713 |  |  | $ | 842 |  |
(a) Chicken operating income includes $8 million in Keystone Foods purchase price accounting adjustments for the three months ended December 29, 2018. (b) Other operating loss includes $18 million Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018, 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 December 29, 2018, and December 30, 2017, respectively. The Beef segment had sales of $90 million and $94 million in the first quarter of fiscal 2019 and 2018, respectively, from transactions with other operating segments of the Company. The Pork segment had sales of $215 million and $201 million in the first quarter of fiscal 2019 and 2018, respectively, from transactions with other operating segments of the Company. The Chicken segment had sales of $14 million and $22 million in the first quarter 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 table further disaggregates our sales to customers by major distribution channels (in millions):
| Three Months Ended
| December 29, 2018
| Retail(a) |  | Foodservice(b) |  | International(c) |  | Industrial and Other(d) |  | Intersegment |  | Total
Beef | $ | 1,851 |  |  | $ | 1,017 |  |  | $ | 628 |  |  | $ | 340 |  |  | $ | 90 |  |  | $ | 3,926 |
Pork | 337 |  |  | 91 |  |  | 225 |  |  | 311 |  |  | 215 |  |  | 1,179 |
Chicken | 1,372 |  |  | 1,130 |  |  | 157 |  |  | 442 |  |  | 14 |  |  | 3,115 |
Prepared Foods | 1,275 |  |  | 789 |  |  | 24 |  |  | 61 |  |  | — |  |  | 2,149 |
Other | — |  |  | — |  |  | 143 |  |  | — |  |  | — |  |  | 143 |
Intersegment |  |  |  |  |  |  |  |  | (319 | ) |  | (319 | )
Total | $ | 4,835 |  |  | $ | 3,027 |  |  | $ | 1,177 |  |  | $ | 1,154 |  |  | $ | — |  |  | $ | 10,193 |
(a) Includes sales to 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 consumer and any remaining sales not included in the Retail, Foodservice or International categories.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration