Tyson Foods 2015 Annual Report Download - page 3
Download and view the complete annual report
Please find page 3 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.PART I
ITEM 1. BUSINESS
GENERAL
Foundedin1935,TysonFoods,Inc.anditssubsidiaries(collectively,“Company,”“we,”“us”or“our”)isoneoftheworld'slargestfoodcompanieswithleading
brandssuchasTyson®,JimmyDean®,HillshireFarm®,SaraLee®,BallPark®,Wright®,Aidells®andStateFair®.Wearearecognizedmarketleaderin
chicken,beefandporkaswellaspreparedfoods,includingbacon,breakfastsausage,turkey,lunchmeat,hotdogs,pizzacrustsandtoppings,tortillasanddesserts.
Ouroperationsareconductedinfourreportablesegments:Chicken,Beef,PorkandPreparedFoods.Someofthekeyfactorsinfluencingourbusinessarecustomer
demandforourproducts;theabilitytomaintainandgrowrelationshipswithcustomersandintroducenewandinnovativeproductstothemarketplace;accessibility
ofinternationalmarkets;marketpricesforourproducts;thecostandavailabilityoflivecattleandhogs,rawmaterials,grainandfeedingredients;andoperating
efficienciesofourfacilities.
Weoperateafullyverticallyintegratedchickenproductionprocess.Ourintegratedoperationsconsistofbreedingstock,contractgrowers,feedproduction,
processing,further-processing,marketingandtransportationofchickenandrelatedalliedproducts,includinganimalandpetfoodingredients.Throughourwholly-
ownedsubsidiary,Cobb-Vantress,Inc.(Cobb),weareoneoftheleadingpoultrybreedingstocksuppliersintheworld.Investinginbreedingstockresearchand
developmentallowsustobreedintoourflocksthecharacteristicsfoundtobemostdesirable.
Wealsoprocesslivefedcattleandhogsandfabricatedressedbeefandporkcarcassesintoprimalandsub-primalmeatcuts,casereadybeefandporkandfully-
cookedmeats.Inaddition,wederivevaluefromalliedproductssuchashidesandvarietymeatssoldtofurtherprocessorsandothers.
Weproduceawiderangeoffresh,value-added,frozenandrefrigeratedfoodproducts.Ourproductsaremarketedandsoldprimarilybyoursalesstafftogrocery
retailers,grocerywholesalers,meatdistributors,warehouseclubstores,militarycommissaries,industrialfoodprocessingcompanies,chainrestaurantsortheir
distributors,livemarkets,internationalexportcompaniesanddomesticdistributorswhoserverestaurants,foodserviceoperationssuchasplantandschool
cafeterias,conveniencestores,hospitalsandothervendors.Additionally,salestothemilitaryandaportionofsalestointernationalmarketsaremadethrough
independentbrokersandtradingcompanies.
OnAugust28,2014,weacquiredandconsolidatedTheHillshireBrandsCompany("HillshireBrands"),amanufacturerandmarketerofbranded,convenient
foods.HillshireBrandsresultsofoperationsareincludedinthePreparedFoodssegment.Forfurtherdescriptionofthistransaction,refertoPartII,Item8,Notesto
ConsolidatedFinancialStatements,Note3:AcquisitionsandDispositions.
FINANCIAL INFORMATION OF SEGMENTS
Weoperateinfourreportablesegments:Chicken,Beef,PorkandPreparedFoods.FollowingthesaleoftheMexicoandBraziloperationsinfiscal2015,webegan
reportingourinternationaloperation,whichwaspreviouslyreportedastheInternationalsegment,inOther.Othernowincludesourforeignchickenproduction
operationsinChinaandIndiaandthird-partymergerandintegrationcosts.Allperiodspresentedhavebeenreclassifiedtoreflectthischange.Chicken,Beef,Pork
andPreparedFoodsresultswerenotimpactedbythischange.ForfurtherdescriptionofthesaleoftheMexicoandBraziloperations,refertoPartII,Item8,Notes
toConsolidatedFinancialStatements,Note3:AcquisitionsandDispositions.Thecontributionofeachsegmenttonetsalesandoperatingincome(loss),andthe
identifiableassetsattributabletoeachsegment,aresetforthinPartII,Item8,NotestoConsolidatedFinancialStatements,Note17:SegmentReporting.
DESCRIPTION OF SEGMENTS
Chicken: Chickenincludesourdomesticoperationsrelatedtoraisingandprocessinglivechickensintofresh,frozenandvalue-addedchickenproducts,aswellas
salesfromalliedproducts.Productsaremarketeddomesticallytofoodretailers,foodservicedistributors,restaurantoperators,hotelchainsandnoncommercial
foodserviceestablishmentssuchasschools,healthcarefacilities,themilitaryandotherfoodprocessors,aswellastointernationalexportmarkets.Thissegment
alsoincludeslogisticsoperationstomoveproductsthroughourdomesticsupplychainandtheglobaloperationsofourchickenbreedingstocksubsidiary.
Beef: Beefincludesouroperationsrelatedtoprocessinglivefedcattleandfabricatingdressedbeefcarcassesintoprimalandsub-primalmeatcutsandcase-ready
products.Productsaremarketeddomesticallytofoodretailers,foodservicedistributors,restaurantoperators,hotelchainsandnoncommercialfoodservice
establishmentssuchasschools,healthcarefacilities,themilitaryandotherfoodprocessors,aswellastointernationalexportmarkets.Thissegmentalsoincludes
salesfromalliedproductssuchashidesandvarietymeats,aswellaslogisticsoperationstomoveproductsthroughthesupplychain.
2