Tyson Foods 2014 Annual Report Download - page 90

NOTE 17: SEGMENT REPORTING
We operate in five segments: Chicken, Beef, Pork, Prepared Foods and International. We measure segment profit as operating income (loss).
During the second quarter of fiscal 2014, we began reporting our International operation as a separate segment, which was previously included
in our Chicken segment. Our International segment became a separate reportable segment as a result of changes to our internal financial
reporting to align with previously announced executive leadership changes. All periods presented have been reclassified to reflect this change.
Beef, Pork, Prepared Foods and Other results were not impacted by this change.
Chicken: Chicken includes our domestic operations related to raising and processing live chickens into fresh, frozen and value-added chicken
products, as well as sales from allied products. Products are marketed domestically to food retailers, foodservice distributors, restaurant
operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food
processors, as well as to international export markets. This segment also includes logistics operations to move products through our domestic
supply chain and the global operations of our chicken breeding stock subsidiary.
Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat
cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains
and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to
international export markets. This segment also includes sales from allied products such as hides and variety meats, as well as logistics
operations to move products through the supply chain.
Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and
case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and
noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to
international export markets. This segment also includes our live swine group, related allied product processing activities and logistics
operations to move products through the supply chain.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and
logistics operations to move products through the supply chain. Products primarily include pepperoni, bacon, sausage, beef and pork pizza
toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes,
breadsticks and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel
chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to
international export markets.
On August 28, 2014, we completed the acquisition of Hillshire Brands, a manufacturer and marketer of branded, convenient foods which
includes brands such as Jimmy Dean®, Ball Park®, Hillshire Farm®, State Fair®, Van's®, Sara Lee® frozen bakery and Chef Pierre® pies as
well as artisanal brands Aidells®, Gallo Salame®, and Golden Island® premium jerky. Hillshire Brands' one month results from operations for
fiscal 2014 are included in the Prepared Foods segment.
International: International includes our foreign operations primarily related to raising and processing live chickens into fresh, frozen and
value-added chicken products in Brazil, China, India and Mexico. Products are marketed in each respective country to food retailers,
foodservice distributors, restaurant operators, hotel chains, noncommercial foodservice establishments and live markets, as well as to other
international export markets.
On July 28, 2014, we announced our plan to sell our Brazil and Mexico operations, part of our International segment, to JBS for $575 million
in cash. We expect to complete the sale of our Brazil operation in the first quarter of fiscal 2015. The sale of our Mexico operation is pending
the necessary government approvals and is expected to close in the first half of fiscal 2015.
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