Tyson Foods 2012 Annual Report Download - page 76

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76
NOTE 21: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
TFM Parent, our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. Additionally, TFM Parent has
fully and unconditionally guaranteed the 2022 Notes until such date TFM Parent has been released of its guarantee of both (i) Tyson's
$1.0 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2022 Notes is permanently
released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc.
(TFI Parent); TFM Parent; the Non-Guarantor Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary
to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an
alternative to providing separate financial statements for the guarantor. This presentation has been revised from the financial
presentation disclosed in prior periods to reflect changes in the subsidiary guarantees associated with the permanent release of certain
subsidiary guarantors upon the retirement of the 2014 Notes.
Condensed Consolidating Statement of Income for the year ended September 29, 2012 in millions
TFI
Parent TFM
Parent Non-
Guarantors Eliminations Total
Sales $ 352 $ 18,832 $ 15,375 $ (1,281) $ 33,278
Cost of Sales (4) 18,088 14,314 (1,280) 31,118
Gross Profit 356 744 1,061 (1) 2,160
Operating Expenses:
Selling, general and administrative 59 205 649 (1) 912
Goodwill impairment —————
Operating Income 297 539 412 — 1,248
Other (Income) Expense:
Interest expense, net 49 143 152 — 344
Other, net 1 — (24) — (23)
Equity in net earnings of subsidiaries (427) (43) — 470 —
Total Other (Income) Expense (377) 100 128 470 321
Income before Income Taxes 674 439 284 (470) 927
Income Tax Expense (Benefit) 91 130 130 — 351
Net Income 583 309 154 (470) 576
Less: Net Loss Attributable to Noncontrolling Interest — — (7) — (7)
Net Income Attributable to Tyson $ 583 $ 309 $ 161 $ (470) $ 583
Condensed Consolidating Statement of Income for the year ended October 1, 2011 in millions
TFI
Parent TFM
Parent Non-
Guarantors Eliminations Total
Sales $ 157 $ 18,636 $ 14,700 $ (1,227) $ 32,266
Cost of Sales 29 17,461 13,804 (1,227) 30,067
Gross Profit 128 1,175 896 — 2,199
Operating Expenses:
Selling, general and administrative 52 215 647 — 914
Goodwill impairment —————
Operating Income 76 960 249 — 1,285
Other (Income) Expense:
Interest expense, net (26) 148 109 — 231
Other, net (9) — (11) — (20)
Equity in net earnings of subsidiaries (673) (115) — 788 —
Total Other (Income) Expense (708) 33 98 788 211
Income before Income Taxes 784 927 151 (788) 1,074
Income Tax Expense (Benefit) 34 272 35 — 341
Net Income 750 655 116 (788) 733
Less: Net Loss Attributable to Noncontrolling Interest — — (17) — (17)
Net Income Attributable to Tyson $ 750 $ 655 $ 133 $ (788) $ 750