Tyson Foods 2015 Annual Report Download - page 58
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Please find page 58 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.TheassetsandliabilitiesrelatedtotheBrazilandMexicooperationswereclassifiedasheldforsaleonthebalancesheetatSeptember27,2014.Thefollowing
tablesummarizesthenetassetsandliabilitiesheldforsale:
inmillions
2014
Assetsheldforsale:
Accountsreceivable,net $ 74
Inventories 141
Othercurrentassets 72
Netproperty,plantandequipment 132
Goodwill 16
Otherassets 11
Totalassetsheldforsale $ 446
Liabilitiesheldforsale:
Currentdebt $ 32
Accountspayable 61
Othercurrentliabilities 27
Long-termdebt 9
Deferredincometaxes 12
Totalliabilitiesheldforsale $ 141
Inthefourthquarteroffiscal2015,tobetteralignouroverallproductioncapacitywithcurrentcattlesupplies,weceasedbeefoperationsatourDenison,Iowa
plant.Asaresult,werecorded$12millioninclosureandimpairmentchargesduringthefourthquarteroffiscal2015.ThesechargesimpacttheBeefsegment’s
operatingincomeandarereflectedinCostofSalesinourConsolidatedStatementsofIncome.
Inthefourthquarteroffiscal2015,werecorded$59millionimpairmentandotherrelatedchargesassociatedwithaPreparedFoodsprojectdesignedtooptimize
thecombinedTysonandHillshireBrandsnetworkcapacityandtoenhancemanufacturingefficienciesforthefuture.Asaresultofthisproject,weexpecttoclose
ourChicago,IllinoishospitalityplantandourJefferson,Wisconsinplantinthebackhalfoffiscal2016.ThesechargesarereflectedinthePreparedFoods
segment’soperatingincome,ofwhich$49millionisincludedintheConsolidatedStatementsofIncomeinCostofSalesand$10millionisincludedinthe
ConsolidatedStatementsofIncomeinSelling,GeneralandAdministrative.
Infiscal2015,aspartofourongoingeffortstoincreaseefficienciesinourChickenbusiness,weannouncedtheplannedclosureofourBuenaVista,Georgiaplant.
TheplantclosedinMay2015andtheclosurecostsdidnothaveasignificantimpactontheCompany'soperatingresults.
Infiscal2014,werecordedimpairmentchargesof$52millionrelatedtotheclosureofthreePreparedFoodsplants.TheCompany’sCherokee,Iowaplantclosed
inSeptember2014andtheBuffalo,NewYorkandSantaTeresa,NewMexicoplantseachclosedinJanuary2015.Additionally,inApril2014,HillshireBrands
announcedthatitwoulddiscontinueallproductionatitsFlorence,Alabamaplant.TheplantclosedinDecember2014andtheclosurecostsdidnothavea
significantimpactontheCompany'sfinancialresults.
Infiscal2014,wesoldour50percentownershipinterestofDynamicFuelsLLC(DynamicFuels)for$30millioncashconsiderationatclosingandupto$35
millioninfuturecashpaymentscontingentonDynamicFuels'productionvolumesoveraperiodofupto11.5years.Additionallyaspartofthetermsofthesale,
wewerereleasedfromourguaranteeofthe$100millionGulfOpportunityZonetax-exemptbonds,whichwereissuedinOctober2008tofundaportionofthe
plantconstructioncosts.DynamicFuelspreviouslyqualifiedasavariableinterestentitywhichweconsolidated,asweweretheprimarybeneficiary.Asaresultof
thesale,wedeconsolidatedDynamicFuelsandrecordedagainofapproximately$3million,whichisreflectedinCostofSalesinourConsolidatedStatementsof
Income.Wewillrecognizethefuturecontingentpaymentsinincomeastherequiredvolumesareproduced.
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