CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

TFM Parent, our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. Additionally, TFM Parent has fully and unconditionally guaranteed the 2022 Notes until such date TFM Parent has been released of its guarantee of both (i) Tyson's $1.0 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2022 Notes is permanently released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc. (TFI Parent); TFM Parent; the Non-Guarantors Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor.




Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended March 29, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	148		$	5,168		$	4,159		$	(443	)	$	9,032
Cost of Sales	4			4,953			3,867			(443		)	8,381
Gross Profit	144			215			292			—			651
Selling, General and Administrative	28			57			205			—			290
Operating Income	116			158			87			—			361
Other (Income) Expense:
Interest expense, net	(15		)	34			3			—			22
Other, net	1			—			(3		)	—			(2		)
Equity in net earnings of subsidiaries	(128		)	(6		)	—			134			—
Total Other (Income) Expense	(142		)	28			—			134			20
Income from Continuing Operations before Income Taxes	258			130			87			(134		)	341
Income Tax Expense	45			44			42			—			131
Income from Continuing Operations	213			86			45			(134		)	210
Loss from Discontinued Operation, Net of Tax	—			—			—			—			—
Net Income	213			86			45			(134		)	210
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(3		)	—			(3		)
Net Income Attributable to Tyson	$	213		$	86		$	48		$	(134	)	$	213

Comprehensive Income (Loss)	224			91			51			(143		)	223
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(3		)	—			(3		)
Comprehensive Income (Loss) Attributable to Tyson	$	224		$	91		$	54		$	(143	)	$	226




Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended March 30, 2013													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	101		$	4,552		$	4,008		$	(278	)	$	8,383
Cost of Sales	11			4,479			3,703			(278		)	7,915
Gross Profit	90			73			305			—			468
Selling, General and Administrative	12			45			175			—			232
Operating Income	78			28			130			—			236
Other (Income) Expense:
Interest expense, net	9			15			10			—			34
Other, net	4			—			(23		)	—			(19		)
Equity in net earnings of subsidiaries	(51		)	10			—			41			—
Total Other (Income) Expense	(38		)	25			(13		)	41			15
Income from Continuing Operations before Income Taxes	116			3			143			(41		)	221
Income Tax Expense	21			2			30			—			53
Income from Continuing Operations	95			1			113			(41		)	168
Loss from Discontinued Operation, Net of Tax	—			—			(62		)	—			(62		)
Net Income	95			1			51			(41		)	106
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			11			—			11
Net Income Attributable to Tyson	$	95		$	1		$	40		$	(41	)	$	95

Comprehensive Income (Loss)	87			(22		)	(19		)	41			87
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			11			—			11
Comprehensive Income (Loss) Attributable to Tyson	$	87		$	(22	)	$	(30	)	$	41		$	76




Condensed Consolidating Statement of Income and Comprehensive Income for the six months ended March 29, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	315		$	10,216		$	8,146		$	(884	)	$	17,793
Cost of Sales	21			9,779			7,541			(884		)	16,457
Gross Profit	294			437			605			—			1,336
Selling, General and Administrative	51			112			400			—			563
Operating Income	243			325			205			—			773
Other (Income) Expense:
Interest expense, net	(10		)	49			9			—			48
Other, net	7			(1		)	(5		)	—			1
Equity in net earnings of subsidiaries	(303		)	(12		)	—			315			—
Total Other (Income) Expense	(306		)	36			4			315			49
Income from Continuing Operations before Income Taxes	549			289			201			(315		)	724
Income Tax Expense	82			96			84			—			262
Income from Continuing Operations	467			193			117			(315		)	462
Loss from Discontinued Operation, Net of Tax	—			—			—			—			—
Net Income	467			193			117			(315		)	462
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(5		)	—			(5		)
Net Income Attributable to Tyson	$	467		$	193		$	122		$	(315	)	$	467

Comprehensive Income (Loss)	467			192			114			(306		)	467
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(5		)	—			(5		)
Comprehensive Income (Loss) Attributable to Tyson	$	467		$	192		$	119		$	(306	)	$	472




Condensed Consolidating Statement of Income and Comprehensive Income for the six months ended March 30, 2013													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	176		$	9,302		$	7,876		$	(605	)	$	16,749
Cost of Sales	27			9,017			7,303			(605		)	15,742
Gross Profit	149			285			573			—			1,007
Selling, General and Administrative	32			97			338			—			467
Operating Income	117			188			235			—			540
Other (Income) Expense:
Interest expense, net	17			31			22			—			70
Other, net	4			—			(23		)	—			(19		)
Equity in net earnings of subsidiaries	(200		)	(14		)	—			214			—
Total Other (Income) Expense	(179		)	17			(1		)	214			51
Income from Continuing Operations before Income Taxes	296			171			236			(214		)	489
Income Tax Expense	28			53			68			—			149
Income from Continuing Operations	268			118			168			(214		)	340
Loss from Discontinued Operation, Net of Tax	—			—			(66		)	—			(66		)
Net Income	268			118			102			(214		)	274
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			6			—			6
Net Income Attributable to Tyson	$	268		$	118		$	96		$	(214	)	$	268

Comprehensive Income (Loss)	244			99			31			(130		)	244
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			6			—			6
Comprehensive Income (Loss) Attributable to Tyson	$	244		$	99		$	25		$	(130	)	$	238



Condensed Consolidating Balance Sheet as of March 29, 2014										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	20	$	418	$	—		$	438
Accounts receivable, net	1		636		911		—			1,548
Inventories	—		1,245		1,723		—			2,968
Other current assets	137		46		222		(175		)	230
Total Current Assets	138		1,947		3,274		(175		)	5,184
Net Property, Plant and Equipment	31		906		3,168		—			4,105
Goodwill	—		881		1,044		—			1,925
Intangible Assets	—		18		138		—			156
Other Assets	165		145		265		(59		)	516
Investment in Subsidiaries	12,230		2,046		—		(14,276		)	—
Total Assets	$	12,564	$	5,943	$	7,889	$	(14,510	)	$	11,886

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	—	$	—	$	52	$	—		$	52
Accounts payable	36		650		743		—			1,429
Other current liabilities	4,157		286		822		(4,241		)	1,024
Total Current Liabilities	4,193		936		1,617		(4,241		)	2,505
Long-Term Debt	1,771		1		175		(59		)	1,888
Deferred Income Taxes	26		73		345		—			444
Other Liabilities	138		156		291		—			585

Total Tyson Shareholders’ Equity	6,436		4,777		5,433		(10,210		)	6,436
Noncontrolling Interest	—		—		28		—			28
Total Shareholders’ Equity	6,436		4,777		5,461		(10,210		)	6,464
Total Liabilities and Shareholders’ Equity	$	12,564	$	5,943	$	7,889	$	(14,510	)	$	11,886



Condensed Consolidating Balance Sheet as of September 28, 2013										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	21	$	1,124	$	—		$	1,145
Accounts receivable, net	—		571		926		—			1,497
Inventories	—		1,039		1,778		—			2,817
Other current assets	351		88		117		(411		)	145
Total Current Assets	351		1,719		3,945		(411		)	5,604
Net Property, Plant and Equipment	32		891		3,130		—			4,053
Goodwill	—		881		1,021		—			1,902
Intangible Assets	—		21		117		—			138
Other Assets	895		162		244		(821		)	480
Investment in Subsidiaries	11,975		2,035		—		(14,010		)	—
Total Assets	$	13,253	$	5,709	$	8,457	$	(15,242	)	$	12,177

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	457	$	132	$	251	$	(327	)	$	513
Accounts payable	27		575		757		—			1,359
Other current liabilities	4,625		200		901		(4,588		)	1,138
Total Current Liabilities	5,109		907		1,909		(4,915		)	3,010
Long-Term Debt	1,770		679		241		(795		)	1,895
Deferred Income Taxes	24		93		362		—			479
Other Liabilities	149		155		282		(26		)	560

Total Tyson Shareholders’ Equity	6,201		3,875		5,631		(9,506		)	6,201
Noncontrolling Interest	—		—		32		—			32
Total Shareholders’ Equity	6,201		3,875		5,663		(9,506		)	6,233
Total Liabilities and Shareholders’ Equity	$	13,253	$	5,709	$	8,457	$	(15,242	)	$	12,177



Condensed Consolidating Statement of Cash Flows for the six months ended March 29, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Cash Provided by (Used for) Operating Activities	$	10		$	129		$	171		$	(45	)	$	265
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(1		)	(67		)	(225		)	—			(293		)
(Purchases of)/Proceeds from marketable securities, net	—			—			(3		)	—			(3		)
Acquisitions, net of cash acquired	—			—			(56		)	—			(56		)
Other, net	—			1			7			—			8
Cash Provided by (Used for) Investing Activities	(1		)	(66		)	(277		)	—			(344		)
Cash Flows from Financing Activities:
Net change in debt	(370		)	—			(6		)	—			(376		)
Purchases of Tyson Class A common stock	(275		)	—			—			—			(275		)
Dividends	(50		)	—			(45		)	45			(50		)
Stock options exercised	49			—			—			—			49
Other, net	19			—			—			—			19
Net change in intercompany balances	618			(64		)	(554		)	—			—
Cash Provided by (Used for) Financing Activities	(9		)	(64		)	(605		)	45			(633		)
Effect of Exchange Rate Change on Cash	—			—			5			—			5
Increase (Decrease) in Cash and Cash Equivalents	—			(1		)	(706		)	—			(707		)
Cash and Cash Equivalents at Beginning of Year	—			21			1,124			—			1,145
Cash and Cash Equivalents at End of Period	$	—		$	20		$	418		$	—		$	438



Condensed Consolidating Statement of Cash Flows for the six months ended March 30, 2013													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Cash Provided by (Used for) Operating Activities	$	89		$	76		$	78		$	(13	)	$	230
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(2		)	(54		)	(234		)	—			(290		)
(Purchases of)/Proceeds from marketable securities, net	—			(13		)	(50		)	—			(63		)
Acquisitions, net of cash acquired	—			—			(10		)	—			(10		)
Other, net	(3		)	—			33			—			30
Cash Provided by (Used for) Investing Activities	(5		)	(67		)	(261		)	—			(333		)
Cash Flows from Financing Activities:
Net change in debt	(1		)	—			(17		)	—			(18		)
Purchases of Tyson Class A common stock	(188		)	—			—			—			(188		)
Dividends	(70		)	—			(13		)	13			(70		)
Stock options exercised	69			—			—			—			69
Other, net	2			—			—			—			2
Net change in intercompany balances	103			4			(107		)	—			—
Cash Provided by (Used for) Financing Activities	(85		)	4			(137		)	13			(205		)
Effect of Exchange Rate Change on Cash	—			—			(1		)	—			(1		)
Increase (Decrease) in Cash and Cash Equivalents	(1		)	13			(321		)	—			(309		)
Cash and Cash Equivalents at Beginning of Year	1			9			1,061			—			1,071
Cash and Cash Equivalents at End of Period	$	—		$	22		$	740		$	—		$	762