Tyson Foods 2014 Annual Report Download - page 60

Recently Issued Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (FASB) issued guidance changing
the criteria for recognizing revenue. The guidance also modifies the related disclosure requirements, clarifies guidance for multiple-element
arrangements and provides guidance for transactions that were not addressed fully in previous guidance. The guidance is effective for annual
reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016, our fiscal 2018. Early adoption
is not permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
NOTE 2: CHANGES IN ACCOUNTING PRINCIPLES
In December 2011 and February 2013, the FASB issued guidance enhancing disclosures related to offsetting of certain assets and liabilities.
This guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods.
We adopted this guidance in the first quarter of fiscal 2014. The adoption did not have a significant impact on our consolidated financial
statements.
In April 2014, the FASB issued guidance changing the criteria for reporting discontinued operations. The guidance also modifies the related
disclosure requirements. The guidance is effective on a prospective basis for annual reporting periods beginning after December 15, 2014, and
interim periods within annual periods beginning on or after December 15, 2015. Early adoption is permitted and we adopted it in the third
quarter of fiscal 2014. The adoption did not have a significant impact on our consolidated financial statements.
NOTE 3: ACQUISITIONS AND DISPOSITIONS
Acquisitions
On August 28, 2014, we acquired all of the outstanding stock of The Hillshire Brands Company ("Hillshire Brands") as part of our strategic
expansion initiative. The purchase price was equal to $63.00 per share for Hillshire Brands' outstanding common stock, or $8,081 million . In
addition, we paid $163 million in cash for breakage costs incurred by Hillshire Brands related to a previously announced acquisition. We
funded the acquisition with existing cash on hand, net proceeds from the issuance of new senior notes, Class A common stock (Class A stock),
and tangible equity units as well as borrowings under a new term loan facility (refer to Note 7: Debt and Note 8: Equity). Hillshire Brands'
results from operations subsequent to the acquisition closing are included in the Prepared Foods segment.
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date. Certain
estimated values for the acquisition, including goodwill, intangible assets, plant property and equipment, and deferred taxes, are not yet
finalized and the preliminary purchase price allocations are subject to change as we complete our analysis of the fair value at the date of
acquisition.
52
in millions
Cash and cash equivalents
$
72
Accounts receivable
236
Inventories
421
Other current assets
344
Property, Plant and Equipment
1,306
Goodwill
4,804
Intangible Assets
5,141
Other Assets
45
Accounts payable
(347
)
Other current liabilities
(324
)
Long-Term Debt
(868
)
Deferred Income Taxes
(2,069
)
Other Liabilities
(517
)
Net asset acquired
$
8,244