Tyson Foods 2012 Annual Report Download - page 59

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59
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair
value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level
input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value
measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following
tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring
basis according to the valuation techniques we used to determine their fair values (in millions):
September 29, 2012 Level 1 Level 2 Level 3 Netting (a) Total
Assets:
Commodity Derivatives $ — $ 53 $ — $ (40) $ 13
Foreign Exchange Forward Contracts — 1 — (1) —
Available for Sale Securities:
Debt securities — 27 86 — 113
Equity securities 6 1 — — 7
Deferred Compensation Assets 31 149 — — 180
Total Assets $ 37 $ 231 $ 86 $ (41) $ 313
Liabilities:
Commodity Derivatives $ — $ 102 $ — $ (100) $ 2
Foreign Exchange Forward Contracts — 3 — — 3
Interest Rate Swap —————
Total Liabilities $ — $ 105 $ — $ (100) $ 5
October 1, 2011 Level 1 Level 2 Level 3 Netting (a) Total
Assets:
Commodity Derivatives $ — $ 24 $ — $ (21) $ 3
Foreign Exchange Forward Contracts — 17 — (2) 15
Available for Sale Securities:
Debt securities — 34 83 — 117
Equity securities 7——— 7
Deferred Compensation Assets 28 122 — — 150
Total Assets $ 35 $ 197 $ 83 $ (23) $ 292
Liabilities:
Commodity Derivatives $ — $ 162 $ — $ (135) $ 27
Foreign Exchange Forward Contracts — 1 — (1) —
Interest Rate Swap — 2 — — 2
Total Liabilities $ — $ 165 $ — $ (136) $ 29
(a) Our derivative assets and liabilities are presented in our Consolidated Balance Sheets on a net basis. We net derivative assets
and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the
counterparty to a derivative contract and us. At September 29, 2012, and October 1, 2011, we had posted with various
counterparties $59 million and $113 million, respectively, of cash collateral and held no cash collateral.