Tyson Foods 2015 Annual Report Download - page 17
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Please find page 17 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.Inaddition,ourforeignchickenoperationsinChinaandIndiaincludefourprocessingplants,tworenderingplants,threefeedmillsandfivebroilerhatcheries.The
processingplantsincludevariousphasesofslaughtering,dressing,cutting,packaging,deboningandfurther-processingchicken.Thefeedmillsandbroiler
hatcheriesgenerallyhavesufficientcapacitytomeettheneedsoftheforeignchickengrowoutoperations.
Webelieveourpresentfacilitiesaregenerallyadequateandsuitableforourcurrentpurposes;however,seasonalfluctuationsininventoriesandproductionmay
occurasareactiontomarketdemandsforcertainproducts.Weregularlyengageinconstructionandothercapitalimprovementprojectsintendedtoexpand
capacityandimprovetheefficiencyofourprocessingandsupportfacilities.Wealsoconsidertheefficienciesofouroperationsandmayfromtimetotime
considerchangingthenumberortypeofplantsweoperatetoalignwithourcapacityneeds.
ITEM 3. LEGAL PROCEEDINGS
RefertothedescriptionofcertainlegalproceedingspendingagainstusunderPartII,Item8,NotestoConsolidatedFinancialStatements,Note20:Commitments
andContingencies,whichdiscussionisincorporatedhereinbyreference.ListedbelowarecertainadditionallegalproceedingsinvolvingtheCompanyand/orits
subsidiaries.
OnJune17,2014,theMissouriattorneygeneralfiledacivillawsuitagainstusinthecircuitcourtofBarryCounty,Missouri,concerninganincidentthatoccurred
inMay2014inwhichsomefeedsupplementwasdischargedfromourplantinMonett,Missouri,totheCityofMonett’swastewatertreatmentplantallegedly
leadingtoafishkillinalocalstreamandodorissuesaroundtheplant.Thatlawsuitallegessixviolationsstemmingfromtheincidentandseekspenaltiesagainst
us,compensationfordamagetothestream,andreimbursementfortheStateofMissouri’scostsininvestigatingthematter.InJanuary2015,aconsentjudgment
wasenteredthatresolvedthelawsuit.Thejudgmentrequiredpaymentof$540,000,whichincludesamountsforpenalties,costrecoveryandsupplemental
environmentalprojects.TheUnitedStatesEnvironmentalProtectionAgencyhasalsoindicatedtousthatithasbegunacriminalinvestigationintotheincident.If
webecomesubjecttocriminalcharges,wemaybesubjecttoafineandotherrelief,aswellasgovernmentcontractsuspensionanddebarment.Wearecooperating
withtheEnvironmentalProtectionAgencybutcannotpredicttheoutcomeofitsinvestigationatthistime.Itisalsopossiblethatotherregulatoryagenciesmay
commenceinvestigationsandallegeadditionalviolations.
OnJune19,2005,theAttorneyGeneralandtheSecretaryoftheEnvironmentoftheStateofOklahomafiledacomplaintintheUnitedStatesDistrictCourtforthe
NorthernDistrictofOklahomaagainstTysonFoods,Inc.,threesubsidiariesandsixotherpoultryintegrators.Thecomplaint,whichwassubsequentlyamended,
assertsanumberofstateandfederalcausesofactionincluding,butnotlimitedto,countsundertheComprehensiveEnvironmentalResponse,Compensation,and
LiabilityAct,ResourceConservationandRecoveryAct,andstate-lawpublicnuisancetheories.Oklahomaallegesthatthedefendantsandcertaincontractgrowers
whowerenotjoinedinthelawsuitpollutedthesurfacewaters,groundwaterandassociateddrinkingwatersuppliesoftheIllinoisRiverWatershedthroughtheland
applicationofpoultrylitter.Oklahoma’sclaimswerenarrowedthroughvariousrulingsissuedbeforeandduringtrialanditsclaimsfornaturalresourcedamages
weredismissedbythedistrictcourtinarulingissuedonJuly22,2009,whichwassubsequentlyaffirmedonappealbytheTenthCircuitCourtofAppeals.Anon-
jurytrialoftheremainingclaimsincludingOklahoma’srequestforinjunctivereliefbeganonSeptember24,2009.ClosingargumentswereheldonFebruary11,
2010.Thedistrictcourthasnotyetrendereditsdecisionfromthetrial.
Other Matters: Wecurrentlyhaveapproximately113,000employeesand,atanytime,havevariousemploymentpracticesmattersoutstanding.Intheaggregate,
thesemattersaresignificanttotheCompany,andwedevotesignificantresourcestomanagingemploymentissues.Additionally,wearesubjecttootherlawsuits,
investigationsandclaims(someofwhichinvolvesubstantialamounts)arisingoutoftheconductofourbusiness.Whiletheultimateresultsofthesematterscannot
bedetermined,theyarenotexpectedtohaveamaterialadverseeffectonourconsolidatedresultsofoperationsorfinancialposition.
ITEM 4. MINE SAFETY DISCLOSURES
Notapplicable.
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