Tyson Foods 2015 Annual Report Download - page 55
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Please find page 55 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.Freight Expense: Freightexpenseassociatedwithproductsshippedtocustomersisrecognizedincostofsales.
Advertising and Promotion Expenses: Advertisingandpromotionexpensesarechargedtooperationsintheperiodincurred.Customerincentiveandtrade
promotionactivitiesarerecordedasareductiontosalesbasedonamountsestimatedasbeingduetocustomers,basedprimarilyonhistoricalutilizationand
redemptionrates,whileotheradvertisingandpromotionalactivitiesarerecordedasselling,generalandadministrativeexpenses.Advertisingandpromotion
expensesforfiscal2015,2014and2013were$966million,$641millionand$555million,respectively.
Research and Development: Researchanddevelopmentcostsareexpensedasincurred.Researchanddevelopmentcoststotaled$75million,$52millionand
$50millioninfiscal2015,2014and2013,respectively.
Use of Estimates: TheconsolidatedfinancialstatementsarepreparedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStates,which
requireustomakeestimatesandassumptionsthataffecttheamountsreportedintheconsolidatedfinancialstatementsandaccompanyingnotes.Actualresults
coulddifferfromthoseestimates.
Reclassification: WereclassifiedShare-basedcompensationexpense,whichwaspreviouslyincludedinOther,netwithinthecashflowsfromoperatingactivities
intheConsolidatedStatementsofCashFlowstoconformtothecurrentperiodpresentation.
NOTE 2: RECENTLY ISSUED ACCOUNTING PRONOUCEMENTS
InMay2014,theFinancialAccountingStandardsBoard(FASB)issuedguidancechangingthecriteriaforrecognizingrevenue.Theguidanceprovidesforasingle
five-stepmodeltobeappliedtoallrevenuecontractswithcustomers.Thestandardalsorequiresadditionalfinancialstatementdisclosuresthatwillenableusersto
understandthenature,amount,timinganduncertaintyofrevenueandcashflowsrelatingtocustomercontracts.Companieshaveanoptiontouseeithera
retrospectiveapproachorcumulativeeffectadjustmentapproachtoimplementthestandard.Thisguidanceiseffectiveforannualreportingperiodsandinterim
periodswithinthoseannualreportingperiodsbeginningafterDecember15,2017,ourfiscal2019.Earlyadoptionispermittedforfiscalyearsbeginningafter
December15,2016.TheCompanyiscurrentlyevaluatingtheimpactthisguidancewillhaveonourconsolidatedfinancialstatements.
InFebruary2015,theFASBissuedguidancechangingtheanalysisproceduresthatareportingentitymustperformtodeterminewhetheritshouldconsolidate
certaintypesoflegalentities.Alllegalentitiesaresubjecttoreevaluationundertherevisedconsolidationmodel.Thenewguidanceaffectsthefollowingareas:(1)
limitedpartnershipsandsimilarlegalentities,(2)evaluatingfeespaidtoadecisionmakeroraserviceproviderasavariableinterest,(3)theeffectoffee
arrangementsontheprimarybeneficiarydetermination,(4)theeffectofrelatedpartiesontheprimarybeneficiarydetermination,and(5)certaininvestmentfunds.
Thisguidanceiseffectiveforannualreportingperiodsandinterimperiodswithinthoseannualreportingperiods,beginningafterDecember15,2015,ourfiscal
2017.Earlyadoptionispermitted.TheCompanyiscurrentlyevaluatingtheimpactthisguidancewillhaveonourconsolidatedfinancialstatements.
InApril2015,theFASBissuedguidancewhichrequiresdebtissuancecoststobepresentedinthebalancesheetasadirectdeductionfromtheassociateddebt
liability.TheguidanceiseffectiveforannualreportingperiodsandinterimperiodswithinthoseannualreportingperiodsbeginningafterDecember15,2015,our
fiscal2017.Earlyadoptionispermitted.Thisnewguidanceisnotexpectedtohaveamaterialimpactonourconsolidatedfinancialstatements.
InApril2015,theFASBissuedguidanceontherecognitionoffeespaidbyacustomerforcloudcomputingarrangements.Thenewguidanceclarifiesthatifa
cloudcomputingarrangementincludesasoftwarelicense,thecustomershouldaccountforthesoftwarelicenseconsistentwiththeacquisitionofothersoftware
licenses.Ifthearrangementdoesnotincludeasoftwarelicense,thecustomershouldaccountforthearrangementasaservicecontract.Theguidanceiseffective
forannualreportingperiodsandinterimperiodswithinthoseannualreportingperiodsbeginningafterDecember15,2015,ourfiscal2017.TheCompanyis
currentlyevaluatingtheimpactthisguidancewillhaveonourconsolidatedfinancialstatements.
InJuly2015,theFASBissuedguidancewhichrequiresmanagementtoevaluateinventoryatthelowerofcostandnetrealizablevalue.Theguidanceiseffective
forannualreportingperiodsandinterimperiodswithinthoseannualreportingperiodsbeginningafterDecember15,2016,ourfiscal2018.Earlyadoptionis
permittedandtheprospectivetransitionmethodshouldbeapplied.TheCompanyiscurrentlyevaluatingtheimpactthisguidancewillhaveonourconsolidated
financialstatements.
InApril2014,theFASBissuedguidancechangingthecriteriaforreportingdiscontinuedoperations.Theguidancealsomodifiestherelateddisclosure
requirements.TheguidanceiseffectiveonaprospectivebasisforannualreportingperiodsbeginningafterDecember15,2014,andinterimperiodswithinannual
periodsbeginningonorafterDecember15,2015.Earlyadoptionispermittedandweadopteditinfiscal2014.Theadoptiondidnothaveasignificantimpacton
ourconsolidatedfinancialstatements.
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