Tyson Foods 2012 Annual Report Download - page 22

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22
Effective Tax Rate
2012 2011 2010
37.9% 31.8% 36.4%
The effective tax rate on continuing operations was impacted by a number of items which result in a difference between our effective
tax rate and the U.S. statutory rate of 35%. The table below reflects significant items impacting the rate as indicated.
2012 –
• Domestic production activity deduction reduced the rate 1.9%.
• General business credits reduced the rate 0.8%.
• State income taxes increased the rate 1.6%.
• Foreign rate differences and valuation allowances increased the rate 3.3%.
2011 –
• Domestic production activity deduction reduced the rate 2.3%.
• Net decrease in unrecognized tax benefits reduced the rate 1.7%.
• General business credits reduced the rate 0.9%.
• State income taxes increased the rate 1.6%.
2010 –
• Domestic production activity deduction reduced the rate 2.0%.
• Decrease in unrecognized tax benefits reduced the rate 1.4%.
• Decrease in state valuation allowances reduced the rate 1.0%.
• State income taxes increased the rate 3.4%.
SEGMENT RESULTS
We operate in four segments: Chicken, Beef, Pork and Prepared Foods. The following table is a summary of sales and operating
income (loss), which is how we measure segment income (loss).
in millions
Sales Operating Income (Loss)
2012 2011 2010 2012 2011 2010
Chicken $ 11,591 $ 11,017 $ 10,062 $ 446 $ 164 $ 519
Beef 13,755 13,549 11,707 218 468 542
Pork 5,510 5,460 4,552 417 560 381
Prepared Foods 3,237 3,215 2,999 181 117 124
Other 167 127 — (14)(24)(10)
Intersegment Sales (982) (1,102) (890) — — —
Total $ 33,278 $ 32,266 $ 28,430 $ 1,248 $ 1,285 $ 1,556