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Segment Reporting
 12 Months Ended
Oct. 03, 2020
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). International/Other primarily includes our foreign operations in Australia, China, Malaysia, Mexico, the Netherlands, South Korea and Thailand, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC.
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 specialty 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 specialty 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 specialty products. Our value-added chicken products primarily include breaded chicken strips, nuggets, patties 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® and Gallo Salame®. 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 of $5 million, $36 million, and $26 million in fiscal 2020, 2019 and 2018, respectively, which are included in International/Other. Assets and additions to property, plant and equipment relating to corporate activities remain in International/Other. Additionally, as of September 28, 2019, we allocated approximately $342 million of goodwill to International/Other as a result of our Keystone Foods and Thai and European operations acquisitions. Refer to Note 5: Goodwill and Intangible Assets for further description.
Information on segments and a reconciliation to income from continuing operations before income taxes are as follows (in millions):
 
Beef

 
Pork

 
Chicken

 
Prepared
Foods

 
International/Other

 
Intersegment
Sales

 
Consolidated

Fiscal 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
15,742

 
$
5,128

 
$
13,234

 
$
8,532

 
$
1,856

 
$
(1,307
)
 
$
43,185

Operating Income (Loss)
1,686

 
565

 
122

 
743

 
(2
)
 
 
 
3,114

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
344

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,770

Depreciation and amortization
106

 
56

 
553

 
398

 
65

 
 
 
1,178

Total Assets
3,508

 
1,516

 
11,028

 
14,883

 
3,806

 
 
 
34,741

Additions to property, plant and equipment
219

 
117

 
577

 
211

 
75

 
 
 
1,199

Fiscal 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
15,828

 
$
4,932

 
$
13,300

 
$
8,418

 
$
1,289

 
$
(1,362
)
 
$
42,405

Operating Income (Loss)
1,107

 
263

 
621

 
843

 
(7
)
 
 
 
2,827

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
396

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,431

Depreciation and amortization
97

 
47

 
513

 
397

 
32

 
 
 
1,086

Total Assets
3,137

 
1,372

 
10,807

 
15,138

 
2,643

 
 
 
33,097

Additions to property, plant and equipment
133

 
128

 
637

 
246

 
115

 
 
 
1,259

Fiscal 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
15,473

 
$
4,879

 
$
12,044

 
$
8,668

 
$
305

 
$
(1,317
)
 
$
40,052

Operating Income (Loss)
1,013

 
361

 
866

 
845

 
(53
)
 
 
 
3,032

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
287

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
2,745

Depreciation and amortization
103

 
42

 
368

 
410

 
10

 
 
 
933

Total Assets
3,061

 
1,265

 
8,794

 
15,063

 
926

 
 
 
29,109

Additions to property, plant and equipment
107

 
150

 
570

 
228

 
145

 
 
 
1,200


The Beef segment had sales of $390 million, $411 million and $420 million for fiscal 2020, 2019 and 2018, respectively, from transactions with other operating segments. The Pork segment had sales of $865 million, $893 million and $817 million for fiscal 2020, 2019 and 2018, respectively, from transactions with other operating segments. The Chicken segment had sales of $52 million, $58 million and $80 million for fiscal 2020, 2019 and 2018, respectively, from transactions with other operating segments. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table.
Our largest customer, Walmart Inc., accounted for 18.7%, 16.9% and 17.3% of consolidated sales in fiscal 2020, 2019 and 2018, respectively. Sales to Walmart Inc. were included in all the segments. Any extended discontinuance of sales to this customer could, if not replaced, have a material impact on our operations.
The majority of our operations are domiciled in the United States. Approximately 95%, 96% and 99% of sales to external customers for fiscal 2020, 2019 and 2018, respectively, were sourced from the United States. Approximately $25.6 billion and $24.8 billion of long-lived assets were located in the United States at October 3, 2020, and September 28, 2019, respectively. Excluding goodwill and intangible assets, long-lived assets located in the United States totaled approximately $8.5 billion and $7.5 billion at October 3, 2020, and September 28, 2019, respectively. Approximately $1,287 million and $1,107 million of long-lived assets were located in foreign locations, primarily Brazil, China, the European Union, New Zealand and Thailand at October 3, 2020, and September 28, 2019, respectively. Excluding goodwill and intangible assets, long-lived assets in foreign countries totaled approximately $648 million and $506 million at October 3, 2020, and September 28, 2019, respectively.
We sell certain products in foreign markets, primarily Australia, Canada, Central America, Chile, China, the European Union, the United Kingdom, Japan, Mexico, Malaysia, the Middle East, South Korea, Taiwan and Thailand. Our export sales from the United States totaled $4.0 billion, $4.1 billion and $4.2 billion for fiscal 2020, 2019 and 2018, respectively. Substantially all of our export sales are facilitated through unaffiliated brokers, marketing associations and foreign sales staffs. Sales of products produced in a country other than the United States were less than 10% of consolidated sales for each of fiscal 2020, 2019 and 2018.
The following tables further disaggregate our sales to customers by major distribution channels (in millions):
 
Twelve months ended October 3, 2020
 
 
Retail(a)

 
Foodservice(b)

 
International(c)

 
Industrial and Other(d)

 
Intersegment

 
Total

Beef
$
8,155

 
$
3,669

 
$
2,183

 
$
1,345

 
$
390

 
$
15,742

Pork
1,590

 
403

 
1,026

 
1,244

 
865

 
5,128

Chicken
5,935

 
4,892

 
642

 
1,713

 
52

 
13,234

Prepared Foods
5,137

 
3,090

 
126

 
179

 
—

 
8,532

International/Other
—

 
—

 
1,856

 
—

 
—

 
1,856

Intersegment
—

 
—

 
—

 
—

 
(1,307
)
 
(1,307
)
Total
$
20,817

 
$
12,054

 
$
5,833

 
$
4,481

 
$
—

 
$
43,185

 
Twelve months ended September 28, 2019
 
 
Retail(a)

 
Foodservice(b)

 
International(c)

 
Industrial and Other(d)

 
Intersegment

 
Total

Beef
$
7,420

 
$
4,151

 
$
2,426

 
$
1,420

 
$
411

 
$
15,828

Pork
1,415

 
400

 
890

 
1,334

 
893

 
4,932

Chicken
5,637

 
5,138

 
690

 
1,777

 
58

 
13,300

Prepared Foods
4,793

 
3,270

 
104

 
251

 
—

 
8,418

International/Other
—

 
—

 
1,289

 
—

 
—

 
1,289

Intersegment
—

 
—

 
—

 
—

 
(1,362
)
 
(1,362
)
Total
$
19,265

 
$
12,959

 
$
5,399

 
$
4,782

 
$
—

 
$
42,405

(a) Includes sales to consumer products and 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 consumers and any remaining sales not included in the Retail, Foodservice or International categories.