Tyson Foods 2009 Annual Report Download - page 32

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32
(4)
Amounts include minimum lease payments under lease agreements.
(5)
Amounts include agreements to purchase goods or services that are enforceable and legally binding and specify all
significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and
the approximate timing of the transaction. The purchase obligations amount included items, such as future purchase
commitments for grains, livestock contracts and fixed grower fees that provide terms that meet the above criteria. We have
excluded future purchase commitments for contracts that do not meet these criteria. Purchase orders have not been included
in the table, as a purchase order is an authorization to purchase and may not be considered an enforceable and legally binding
contract. Contracts for goods or services that contain termination clauses without penalty have also been excluded.
(6)
Amounts include estimated amounts to complete buildings and equipment under construction as of October 3, 2009.
(7)
Amounts include items that meet the definition of a purchase obligation and are recorded in the Consolidated Balance Sheets.
In addition to the amounts shown above in the table, we have unrecognized tax benefits of $233 million and related interest and
penalties of $71 million at October 3, 2009, recorded as liabilities. During fiscal 2010, tax audit resolutions could potentially reduce
these amounts by approximately $30 million, either because tax positions are sustained on audit or because we agree to their
disallowance.
The maximum contractual obligation associated with our cash flow assistance programs at October 3, 2009, based on the estimated
fair values of the livestock supplier’s net tangible assets on that date, aggregated to approximately $250 million, or approximately
$178 million remaining maximum commitment after netting the cash flow assistance related receivables.
The minority partner in our Shandong Tyson Xinchang Foods joint ventures in China has the right to exercise put options to require
us to purchase their entire 40% equity interest at a price equal to the minority partner’s contributed capital plus (minus) its pro-rata
share of the joint venture's accumulated and undistributed net earnings (losses). The put options are exercisable for a five-year term
commencing the later of (i) April 2011 or (ii) the date upon which a shareholder of the minority partner is no longer general manager
of the joint venture operations. At October 3, 2009, the put options, if they had been exercisable, would have resulted in a purchase
price of approximately $74 million for the minority partner’s entire equity interest.
RECENTLY ISSUED/ADOPTED ACCOUNTING PRONOUNCEMENTS
Refer to the discussion under Part II, Item 8, Notes to Consolidated Financial Statements, Note 1: Business and Summary of
Significant Accounting Policies for recently issued accounting pronouncements and Note 2: Change in Accounting Principles for
recently adopted accounting pronouncements.