Tyson Foods 2010 Annual Report Download - page 28

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28
Cash Flows from Investing Activities in millions
2010 2009 2008
Additions to property, plant and equipment $(550) $(368) $(425)
Proceeds from sale (purchase) of marketable securities, net (4) 19 (3)
Change in restricted cash to be used for investing activities 43 (43) -
Proceeds from sale of discontinued operation - 75 -
Acquisitions, net of cash acquired - (93) (17)
Other, net 11 (17) 46
Net cash used for investing activities $(500) $(427) $(399)
● Additions to property, plant and equipment include acquiring new equipment and upgrading our facilities to maintain
competitive standing and position us for future opportunities. In fiscal 2010, our capital spending included: production
efficiencies in our operations; Dynamic Fuels LLC’s (Dynamic Fuels) facility; and foreign operations. In fiscal 2009, our
capital spending included: improvements made in our prepared foods operations to increase efficiencies; Dynamic Fuels’
facility; and foreign operations. In fiscal 2008, our capital spending included equipment updates in our chicken plants, as
well as packaging equipment upgrades in our Fresh Meats case-ready facilities.
● Capital spending for fiscal 2011 is expected to be approximately $700 million, and includes spending on our
operations for production and labor efficiencies, yield improvements and sales channel flexibility, as well as
expansion of our foreign operations.
● Acquisitions – In October 2008, we acquired three vertically integrated poultry companies in southern Brazil. The
aggregate purchase price was $67 million. In addition, we had $15 million of contingent purchase price based on
production volumes. The joint ventures in China called Shandong Tyson Xinchang Foods received the necessary
government approvals during fiscal 2009. The aggregate purchase price for our 60% equity interest was $21 million,
which excludes $93 million of cash transferred to the joint venture for future capital needs.
● Change in restricted cash – In October 2008, Dynamic Fuels received $100 million in proceeds from the sale of Gulf
Opportunity Zone tax-exempt bonds made available by the federal government to the regions affected by Hurricanes
Katrina and Rita in 2005. The cash received from these bonds was restricted and could only be used towards the
construction of the Dynamic Fuels’ facility.