Tyson Foods 2013 Annual Report Download - page 53

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53
The following table summarizes the activity related to our gross unrecognized tax benefits at September 28, 2013, September 29,
2012, and October 1, 2011:
in millions
2013 2012 2011
Balance as of the beginning of the year $ 168 $ 174 $ 184
Increases related to current year tax positions 334
Increases related to prior year tax positions 15 5 21
Reductions related to prior year tax positions (6)(10) (24)
Reductions related to settlements (2)(1) (9)
Reductions related to expirations of statute of limitations (3)(3) (2)
Balance as of the end of the year $ 175 $ 168 $ 174
The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $149 million and $154 million at
September 28, 2013, and September 29, 2012, respectively. We classify interest and penalties on unrecognized tax benefits as income
tax expense. At September 28, 2013, and September 29, 2012, before tax benefits, we had $63 million and $64 million, respectively,
of accrued interest and penalties on unrecognized tax benefits.
As of September 28, 2013, we are subject to income tax examinations for U.S. federal income taxes for fiscal years 2004 through
2012. We are also subject to income tax examinations by major state and foreign jurisdictions for fiscal years 2003 through 2012 and
2002 through 2012, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax
benefits could decrease by as much as $44 million primarily due to expiration of statutes in various jurisdictions and settlements with
taxing authorities.
NOTE 10: OTHER INCOME AND CHARGES
During fiscal 2013, we recorded a $19 million currency translation adjustment gain recognized in conjunction with the receipt of
proceeds constituting the final resolution of our investment in Canada, which was recorded in the Consolidated Statements of Income
in Other, net.
During fiscal 2012, we recorded $16 million of equity earnings in joint ventures and $4 million in net foreign currency exchange
gains, which were recorded in the Consolidated Statements of Income in Other, net.
During fiscal 2011, we recorded an $11 million gain related to a sale of interests in an equity method investment. This gain was
recorded in the Consolidated Statements of Income in Other, net.