Tyson Foods 2012 Annual Report Download - page 27

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27
Cash Flows from Investing Activities in millions
2012 2011 2010
Additions to property, plant and equipment $(690) $ (643) $ (550)
Proceeds from sale (purchases) of marketable securities, net (11)(80)(4)
Proceeds from notes receivable — 51 —
Change in restricted cash to be used for investing activities — — 43
Other, net 41 28 11
Net cash used for investing activities $(660) $ (644) $ (500)
• Additions to property, plant and equipment include acquiring new equipment and upgrading our facilities to maintain
competitive standing and position us for future opportunities. In fiscal 2012 and 2011, our capital spending was primarily for
production efficiencies in our operations and for ongoing development of foreign operations. In fiscal 2010, our capital
spending was primarily related to production efficiencies in our operations, construction of Dynamic Fuels’ facility and
development of our foreign operations.
• Capital spending for fiscal 2013 is expected to approximate $550 million, and includes spending on our operations for
production and labor efficiencies, yield improvements and sales channel flexibility, as well as expansion of our foreign
operations. The reduction in planned capital expenditures from fiscal 2012 is primarily a result of an anticipated rise in
working capital needs in fiscal 2013. Once we gain more visibility into our working capital needs, or should forecasted
conditions change, we may raise our capital expenditures target.
• Purchases of marketable securities included funding for our deferred compensation plans.
• Proceeds from notes receivable totaling $51 million in fiscal 2011 related to the collection of notes receivable received in
conjunction with the sale of a business operation in fiscal 2009.
• Change in restricted cash – In fiscal 2009, Dynamic Fuels received $100 million in proceeds from the sale of Gulf Opportunity
Zone tax-exempt bonds made available by the federal government to the regions affected by Hurricanes Katrina and Rita in
2005. The cash received from these bonds was restricted and could only be used towards the construction of the Dynamic
Fuels’ facility. The Dynamic Fuels' facility was complete in October 2010.