Tyson Foods 2013 Annual Report Download - page 71

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NOTE 18: SUPPLEMENTAL CASH FLOWS INFORMATION
The following table summarizes cash payments for interest and income taxes:
in millions
2013 2012 2011
Interest, net of amounts capitalized $ 114 $ 274 $ 174
Income taxes, net of refunds 310 187 311
NOTE 19: TRANSACTIONS WITH RELATED PARTIES
We have operating leases for two wastewater facilities with an entity owned by the Donald J. Tyson Revocable Trust (for which Mr.
John Tyson, Chairman of the Company, is a trustee), Berry Street Waste Water Treatment Plant, LP (90% of which is owned by Tyson
Limited Partnership (“TLP”)), and the sisters of Mr. Tyson. Total payments of approximately $1 million in each of fiscal 2013, 2012
and 2011 were paid to such entity.
In fiscal 2012 and 2011, we had an aircraft lease agreement with Tyson Family Aviation, LLC, of which Mr. Don Tyson (then our
Senior Chairman), Mr. John Tyson and the Randal W. Tyson Testamentary Trust were members. Upon Mr. Don Tyson’s death on
January 6, 2011, his membership interest passed to a trust in which Mr. John Tyson is a trustee. During fiscal 2012, Tyson Family
Aviation, LLC sold the aircraft to a non-related party and we entered into an aircraft lease agreement with the new owner. Total
payments to Tyson Family Aviation, LLC of approximately $0.4 million and $1 million were paid in fiscal 2012 and 2011,
respectively.
As part of the Company's previously approved stock repurchase plan, on September 11, 2013, we purchased one million shares of
Class A common stock from the Tyson Limited Partnership for $29.85 million or $29.85 per share. The Tyson Limited Partnership, of
which John Tyson and director Barbara Tyson are general partners, owns 70 million shares, or 99.981% of Class B Common Stock
and 2 million shares of Class A common stock, giving it control of approximately 72.46% of the total voting power of our outstanding
voting stock.
NOTE 20: COMMITMENTS AND CONTINGENCIES
Commitments
We lease equipment, properties and certain farms for which total rentals approximated $200 million, $193 million and $183 million, in
fiscal 2013, 2012 and 2011, respectively. Most leases have initial terms of up to seven years, some with varying renewal periods. The
most significant obligations assumed under the terms of the leases are the upkeep of the facilities and payments of insurance and
property taxes.
Minimum lease commitments under non-cancelable leases at September 28, 2013, were:
in millions
2014 $ 97
2015 69
2016 46
2017 27
2018 16
2019 and beyond 78
Total $ 333
We guarantee obligations of certain outside third parties, which consists of a lease and grower loans, all of which are substantially
collateralized by the underlying assets. Terms of the underlying debt cover periods up to ten years, and the maximum potential amount
of future payments as of September 28, 2013, was $64 million. We also maintain operating leases for various types of equipment,
some of which contain residual value guarantees for the market value of the underlying leased assets at the end of the term of the
lease. The remaining terms of the lease maturities cover periods over the next seven years. The maximum potential amount of the
residual value guarantees is $58 million, of which $52 million would be recoverable through various recourse provisions and an
additional undeterminable recoverable amount based on the fair value of the underlying leased assets. The likelihood of material
payments under these guarantees is not considered probable. At September 28, 2013, and September 29, 2012, no material liabilities
for guarantees were recorded.