Tyson Foods 2014 Annual Report Download - page 97

Third quarter fiscal 2014 net income included a $29 million pretax expense related to the Hillshire Brands acquisition fees paid to third parties,
a $49 million pretax expense related to the closure of three Prepared Foods facilities and a $40 million unrecognized tax benefit gain.
Fourth quarter fiscal 2014 net income included a $42 million pretax impairment and other costs related to the sale of our Brazil operation and
Mexico's undistributed earnings tax, $119 million pretax expense related to the Hillshire Brands acquisition, integration and costs associated
with our Prepared Foods improvement plan, $40 million pretax expense related to the Hillshire Brands post-closing results, purchase price
accounting adjustments and ongoing costs related to a legacy Hillshire Brands plant fire, $27 million pretax expense related to the Hillshire
Brands acquisition financing incremental interest cost and a $12 million unrecognized tax benefit gain.
Second quarter fiscal 2013 net income included a $19 million currency translation adjustment gain recognized in conjunction with the receipt
of proceeds constituting the final resolution of our investment in Canada and included a $56 million non-cash charge, reported as a
discontinued operation, related to the impairment of Weifang.
NOTE 22: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
TFM Parent, our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. Additionally, TFM Parent has fully and
unconditionally guaranteed the 2022 Notes until such date TFM Parent has been released of its guarantee of both (i) Tyson's $1.25 billion
revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2019, 2022, 2024, 2034 and 2044 Notes is
permanently released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods,
Inc. (TFI Parent); TFM Parent; the Non-Guarantor Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to
consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative
to providing separate financial statements for the guarantor.
89
Condensed Consolidating Statement of Income and Comprehensive Income for the year ended September 27, 2014
in millions
TFI
Parent
TFM
Parent
Non-
Guarantors
Eliminations
Total
Sales
$
579
$
21,924
$
16,926
$
(1,849
)
$
37,580
Cost of Sales
74
20,971
15,689
(1,839
)
34,895
Gross Profit
505
953
1,237
(10
)
2,685
Selling, General and Administrative
141
240
884
(10
)
1,255
Operating Income
364
713
353
—
1,430
Other (Income) Expense:
Interest expense, net
63
49
13
—
125
Other, net
67
(1
)
(13
) —
53
Equity in net earnings of subsidiaries
(731
)
(43
) —
774
—
Total Other (Income) Expense
(601
)
5
—
774
178
Income from Continuing Operations before Income Taxes
965
708
353
(774
)
1,252
Income Tax Expense
101
227
68
—
396
Income from Continuing Operations
864
481
285
(774
)
856
Loss from Discontinued Operation, Net of Tax —
— — — —
Net Income
864
481
285
(774
)
856
Less: Net Loss Attributable to Noncontrolling Interests —
— (
8
) — (
8
)
Net Income Attributable to Tyson
$
864
$
481
$
293
$
(774
)
$
864
Comprehensive Income (Loss)
$
817
$
449
$
243
$
(692
)
$
817
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest —
— (
8
) — (
8
)
Comprehensive Income (Loss) Attributable to Tyson
$
817
$
449
$
251
$
(692
)
$
825