Tyson Foods 2013 Annual Report Download - page 31

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CONTRACTUAL OBLIGATIONS
The following table summarizes our contractual obligations as of September 28, 2013:
in millions
Payments Due by Period
2014 2015-2016 2017-2018 2019 and
thereafter Total
Debt and capital lease obligations:
Principal payments (1) $ 514 $ 657 $ 124 $ 1,119 $ 2,414
Interest payments (2) 112 202 115 205 634
Guarantees (3) 37 37 17 31 122
Operating lease obligations (4) 97 115 43 78 333
Purchase obligations (5) 1,482 102 57 74 1,715
Capital expenditures (6) 369 49 — — 418
Other long-term liabilities (7) 6 5 4 38 53
Total contractual commitments $ 2,617 $ 1,167 $ 360 $ 1,545 $ 5,689
(1) In the event of a default on payment, acceleration of the principal payments could occur.
(2) Interest payments include interest on all outstanding debt. Payments are estimated for variable rate and variable term debt
based on effective rates at September 28, 2013, and expected payment dates.
(3) Amounts include guarantees of debt of outside third parties, which consist of a lease and grower loans, all of which are
substantially collateralized by the underlying assets, as well as residual value guarantees covering certain operating leases for
various types of equipment. The amounts included are the maximum potential amount of future payments.
(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. For certain grain purchase
commitments with a fixed quantity provision, we have assumed the future obligations under the commitment based on
available commodity futures prices as published in observable active markets as of September 28, 2013. We have excluded
future purchase commitments for contracts that do not meet these criteria. Purchase orders are not included in the table, as a
purchase order is an authorization to purchase and is cancelable. 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 September 28, 2013.
(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 $175 million and related interest and
penalties of $63 million at September 28, 2013, recorded as liabilities.
The maximum contractual obligation associated with our cash flow assistance programs at September 28, 2013, based on the
estimated fair values of the livestock supplier’s net tangible assets on that date, aggregated to approximately $340 million, or
approximately $296 million remaining maximum commitment after netting the cash flow assistance related receivables.
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: Changes in Accounting Principles for
recently adopted accounting pronouncements.