Tyson Foods 2015 Annual Report Download - page 23
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Please find page 23 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.EBITDA RECONCILIATIONS
AreconciliationofnetincometoEBITDAisasfollows:
inmillions,exceptratiodata
2015
2014
2013
2012
2011
Netincome $ 1,224
$ 856
$ 778
$ 576
$ 733
Less:Interestincome (9)
(7)
(7)
(12)
(11)
Add:Interestexpense 293
132
145
356
242
Add:Incometaxexpense(a) 697
396
411
351
341
Add:Depreciation 609
494
474
443
433
Add:Amortization(b) 92
26
17
17
29
EBITDA $ 2,906
$ 1,897
$ 1,818
$ 1,731
$ 1,767
Totalgrossdebt $ 6,725
$ 8,178
$ 2,408
$ 2,432
$ 2,182
Less:Cashandcashequivalents (688)
(438)
(1,145)
(1,071)
(716)
Less:Short-terminvestments (2)
(1)
(1)
(3)
(2)
Totalnetdebt $ 6,035
$ 7,739
$ 1,262
$ 1,358
$ 1,464
RatioCalculations:
Grossdebt/EBITDA 2.3x
4.3x
1.3x
1.4x
1.2x
Netdebt/EBITDA 2.1x
4.1x
0.7x
0.8x
0.8x
(a) Includesincometaxexpenseofdiscontinuedoperation.
(b) Excludestheamortizationofdebtdiscountexpenseof$10million,$10million,$28million,$39millionand$44millionforfiscal2015,2014,2013,
2012and2011,respectively,asitisincludedinInterestexpense.
EBITDArepresentsnetincome,netofinterest,incometaxanddepreciationandamortization.NetdebttoEBITDArepresentstheratioofourdebt,netofcashand
short-terminvestments,toEBITDA.EBITDAandnetdebttoEBITDAarepresentedassupplementalfinancialmeasurementsintheevaluationofourbusiness.
Webelievethepresentationofthesefinancialmeasureshelpsinvestorstoassessouroperatingperformancefromperiodtoperiod,includingourabilitytogenerate
earningssufficienttoserviceourdebt,andenhancesunderstandingofourfinancialperformanceandhighlightsoperationaltrends.Thesemeasuresarewidelyused
byinvestorsandratingagenciesinthevaluation,comparison,ratingandinvestmentrecommendationsofcompanies;however,themeasurementsofEBITDAand
netdebttoEBITDAmaynotbecomparabletothoseofothercompanies,whichlimitstheirusefulnessascomparativemeasures.EBITDAandnetdebttoEBITDA
arenotmeasuresrequiredbyorcalculatedinaccordancewithgenerallyacceptedaccountingprinciples(GAAP)andshouldnotbeconsideredassubstitutesfornet
incomeoranyothermeasureoffinancialperformancereportedinaccordancewithGAAPorasameasureofoperatingcashfloworliquidity.EBITDAisauseful
toolforassessing,butisnotareliableindicatorof,ourabilitytogeneratecashtoserviceourdebtobligationsbecausecertainoftheitemsaddedtonetincometo
determineEBITDAinvolveoutlaysofcash.Asaresult,actualcashavailabletoserviceourdebtobligationswillbedifferentfromEBITDA.Investorsshouldrely
primarilyonourGAAPresultsandusenon-GAAPfinancialmeasuresonlysupplementallyinmakinginvestmentdecisions.
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