Tyson Foods 2015 Annual Report Download - page 14
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Please find page 14 of the 2015 Tyson Foods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Wecannotbesurethattheserights,ifobtained,willnotbeinvalidated,circumventedorchallengedinthefuture.Inaddition,evenifsuchrightsareobtainedinthe
UnitedStates,thelawsofsomeoftheothercountriesinwhichourproductsareormaybesolddonotprotectourintellectualpropertyrightstothesameextentas
thelawsoftheUnitedStates.Ourfailuretoperfectorsuccessfullyassertourintellectualpropertyrightscouldmakeuslesscompetitiveandcouldhaveanadverse
effectonourbusiness,operatingresultsandfinancialcondition.
Tyson Limited Partnership can exercise significant control.
AsofOctober3,2015,TysonLimitedPartnership(theTLP)owns99.985%oftheoutstandingsharesoftheCompany'sClassBCommonStock,$0.10parvalue
(ClassBstock)andtheTLPandmembersoftheTysonfamilyown,intheaggregate,1.79%oftheoutstandingsharesoftheCompany'sClassACommonStock,
$0.10parvalue(ClassAstock),givingthem,collectively,controlofapproximately70.64%ofthetotalvotingpoweroftheCompany'soutstandingvotingstock.
Atthistime,theTLPdoesnothaveamanaginggeneralpartner,assuch,themanagementrightsofthemanaginggeneralpartnermaybeexercisedbyamajorityof
thepercentageinterestsofthegeneralpartners.AsofOctober3,2015,Mr.JohnTyson,ChairmanoftheBoardofDirectors,has33.33%ofthegeneralpartner
percentageinterests,andMs.BarbaraTyson,adirectoroftheCompany,has11.115%generalpartnerpercentageinterests(theremaininggeneralpartnership
interestsareheldbytheTysonPartnershipInterestTrust(44.44%)andHarryC.Erwin,III(11.115%)).Asaresultoftheseholdings,positionsanddirectorships,
thepartnersintheTLPhavetheabilitytoexertsubstantialinfluenceoractualcontroloverourmanagementandaffairsandoversubstantiallyallmattersrequiring
actionbyourstockholders,includingamendmentstoourrestatedcertificateofincorporationandby-laws,theelectionandremovalofdirectors,anyproposed
merger,consolidationorsaleofallorsubstantiallyallofourassetsandothercorporatetransactions.Thisconcentrationofownershipmayalsodelayorpreventa
changeincontrolotherwisefavoredbyourotherstockholdersandcoulddepressourstockprice.Additionally,asaresultoftheTLP'ssignificantownershipofour
outstandingvotingstock,weareeligiblefor“controlledcompany”exemptionsfromcertaincorporategovernancerequirementsoftheNewYorkStockExchange.
We may incur additional tax expense or become subject to additional tax liabilities.
WearesubjecttotaxesintheUnitedStatesandnumerousforeignjurisdictions.Significantjudgmentisrequiredindeterminingourprovisionforincometaxes.
Ourtotalincometaxexpensecouldbeaffectedbychangesintaxratesinvariousjurisdictions,changesinthevaluationofdeferredtaxassetsandliabilitiesor
changesintaxlawsortheirinterpretation.WearealsosubjecttotheexaminationofourtaxreturnsandothertaxmattersbytheInternalRevenueServiceandother
taxauthorities.Therecanbenoassuranceastotheoutcomeoftheseexaminations.Ifataxingauthoritydisagreeswiththepositionswehavetaken,wecouldface
additionaltaxliability,includinginterestandpenalties,whichcouldadverselyaffectourfinancialresults.
We could incur substantial tax liabilities as a result of the DEMB Master Blenders 1753 N.V (“DEMB”) Spin-Off.
OnJune28,2012,HillshireBrandsdivesteditsinternationalcoffeeandteabusinesssegmentthroughthespin-offofDEMB(the“Spin-Off”).HillshireBrands
intendedfortheSpin-Offandcertainrelatedtransactionstoqualifyastax-freeunderSections355,368(a)(1)(D),and361andrelatedprovisionsoftheUnited
StatesInternalRevenueCode,whichwerefertoastheCode,andHillshireBrandsreceivedaprivateletterrulingfromtheIRSsubstantiallytotheeffectthatthe
Spin-Offandcertainrelatedtransactions,includingadebtexchange,willqualifyastax-freetoHillshireBrandsanditsstockholdersforUnitedStatesfederal
incometaxpurposes.AlthoughaprivateletterrulinggenerallyisbindingontheIRS,ifthefactualrepresentationsorassumptionsmadeintheprivateletterruling
requestareuntrueorincompleteinanymaterialrespect,oranymaterialforward-lookingcovenantsorundertakingsarenotcompliedwith,thenHillshireBrands
wouldnotbeabletorelyontheruling.Inaddition,therulingisbasedoncurrentlaw,andcannotberelieduponiftheapplicablelawchangeswithretroactive
effect.AsamatterofpracticetheIRSdoesnotruleoneveryrequirementforatax-freespin-offortax-freedebt-for-debtexchange,andthepartiesreliedsolelyon
theopinionofcounselforcomfortthatsuchadditionalrequirementsshouldbesatisfied.Theopinionofcounselrelieson,amongotherthings,thecontinuing
validityoftherulingandvariousassumptionsandrepresentationsastofactualmattersmadebyHillshireBrandsandDEMBwhich,ifinaccurateorincompletein
anymaterialrespect,wouldjeopardizetheconclusionsreachedbycounselinitsopinion.TheopinionisnotbindingontheIRSorthecourts,andtherecanbeno
assurancethattheIRSorthecourtswillnotchallengetheconclusionsstatedintheopinionorthatanysuchchallengewouldnotprevail.Accordingly,eventhough
HillshireBrandsobtainedarulinganda“should”opinionofcounsel,theIRScouldassertthatHillshireBrandshasnotsatisfiedtherequirementsfortax-free
treatmentandsuchassertion,ifsuccessful,couldresultinsignificantUnitedStatesfederalincometaxliabilitiesforus.
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