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 June 28, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	114		$	5,807		$	4,234		$	(473	)	$	9,682
Cost of Sales	14			5,559			3,945			(473		)	9,045
Gross Profit	100			248			289			—			637
Selling, General and Administrative	16			55			215			—			286
Operating Income	84			193			74			—			351
Other (Income) Expense:
Interest expense, net	23			—			1			—			24
Other, net	22			1			(6		)	—			17
Equity in net earnings of subsidiaries	(229		)	(18		)	—			247			—
Total Other (Income) Expense	(184		)	(17		)	(5		)	247			41
Income from Continuing Operations before Income Taxes	268			210			79			(247		)	310
Income Tax Expense	8			62			(18		)	—			52
Income from Continuing Operations	260			148			97			(247		)	258
Loss from Discontinued Operation, Net of Tax	—			—			—			—			—
Net Income	260			148			97			(247		)	258
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(2		)	—			(2		)
Net Income Attributable to Tyson	$	260		$	148		$	99		$	(247	)	$	260

Comprehensive Income (Loss)	265			156			106			(262		)	265
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(2		)	—			(2		)
Comprehensive Income (Loss) Attributable to Tyson	$	265		$	156		$	108		$	(262	)	$	267




Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended June 29, 2013													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	142		$	4,908		$	4,081		$	(400	)	$	8,731
Cost of Sales	8			4,679			3,762			(400		)	8,049
Gross Profit	134			229			319			—			682
Selling, General and Administrative	19			54			190			—			263
Operating Income	115			175			129			—			419
Other (Income) Expense:
Interest expense, net	9			15			10			—			34
Other, net	—			(1		)	1			—			—
Equity in net earnings of subsidiaries	(181		)	(15		)	—			196			—
Total Other (Income) Expense	(172		)	(1		)	11			196			34
Income from Continuing Operations before Income Taxes	287			176			118			(196		)	385
Income Tax Expense	38			56			42			—			136
Income from Continuing Operations	249			120			76			(196		)	249
Loss from Discontinued Operation, Net of Tax	—			—			(4		)	—			(4		)
Net Income	249			120			72			(196		)	245
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(4		)	—			(4		)
Net Income Attributable to Tyson	$	249		$	120		$	76		$	(196	)	$	249

Comprehensive Income (Loss)	216			103			49			(152		)	216
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(4		)	—			(4		)
Comprehensive Income (Loss) Attributable to Tyson	$	216		$	103		$	53		$	(152	)	$	220




Condensed Consolidating Statement of Income and Comprehensive Income for the nine months ended June 28, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	429		$	16,023		$	12,380		$	(1,357	)	$	27,475
Cost of Sales	35			15,338			11,486			(1,357		)	25,502
Gross Profit	394			685			894			—			1,973
Selling, General and Administrative	67			167			615			—			849
Operating Income	327			518			279			—			1,124
Other (Income) Expense:
Interest expense, net	13			49			10			—			72
Other, net	29			—			(11		)	—			18
Equity in net earnings of subsidiaries	(532		)	(30		)	—			562			—
Total Other (Income) Expense	(490		)	19			(1		)	562			90
Income from Continuing Operations before Income Taxes	817			499			280			(562		)	1,034
Income Tax Expense	90			158			66			—			314
Income from Continuing Operations	727			341			214			(562		)	720
Loss from Discontinued Operation, Net of Tax	—			—			—			—			—
Net Income	727			341			214			(562		)	720
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			(7		)	—			(7		)
Net Income Attributable to Tyson	$	727		$	341		$	221		$	(562	)	$	727

Comprehensive Income (Loss)	732			348			220			(568		)	732
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			(7		)	—			(7		)
Comprehensive Income (Loss) Attributable to Tyson	$	732		$	348		$	227		$	(568	)	$	739




Condensed Consolidating Statement of Income and Comprehensive Income for the nine months ended June 29, 2013													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Sales	$	318		$	14,210		$	11,957		$	(1,005	)	$	25,480
Cost of Sales	35			13,696			11,065			(1,005		)	23,791
Gross Profit	283			514			892			—			1,689
Selling, General and Administrative	51			151			528			—			730
Operating Income	232			363			364			—			959
Other (Income) Expense:
Interest expense, net	26			46			32			—			104
Other, net	4			(1		)	(22		)	—			(19		)
Equity in net earnings of subsidiaries	(381		)	(29		)	—			410			—
Total Other (Income) Expense	(351		)	16			10			410			85
Income from Continuing Operations before Income Taxes	583			347			354			(410		)	874
Income Tax Expense	66			109			110			—			285
Income from Continuing Operations	517			238			244			(410		)	589
Loss from Discontinued Operation, Net of Tax	—			—			(70		)	—			(70		)
Net Income	517			238			174			(410		)	519
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			2			—			2
Net Income Attributable to Tyson	$	517		$	238		$	172		$	(410	)	$	517

Comprehensive Income (Loss)	460			202			80			(282		)	460
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	—			—			2			—			2
Comprehensive Income (Loss) Attributable to Tyson	$	460		$	202		$	78		$	(282	)	$	458



Condensed Consolidating Balance Sheet as of June 28, 2014										in millions
	TFI Parent		TFM Parent		Non- Guarantors		Eliminations			Total
Assets
Current Assets:
Cash and cash equivalents	$	—	$	15	$	572	$	—		$	587
Accounts receivable, net	1		713		910		—			1,624
Inventories	1		1,270		1,790		—			3,061
Other current assets	123		49		245		(176		)	241
Total Current Assets	125		2,047		3,517		(176		)	5,513
Net Property, Plant and Equipment	30		922		2,989		—			3,941
Goodwill	—		881		1,044		—			1,925
Intangible Assets	—		17		134		—			151
Other Assets	168		149		269		(61		)	525
Investment in Subsidiaries	12,456		2,070		—		(14,526		)	—
Total Assets	$	12,779	$	6,086	$	7,953	$	(14,763	)	$	12,055

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	—	$	—	$	41	$	—		$	41
Accounts payable	38		699		759		—			1,496
Other current liabilities	4,127		308		866		(4,226		)	1,075
Total Current Liabilities	4,165		1,007		1,666		(4,226		)	2,612
Long-Term Debt	1,771		1		73		(61		)	1,784
Deferred Income Taxes	6		76		322		—			404
Other Liabilities	143		156		246		—			545

Total Tyson Shareholders’ Equity	6,694		4,846		5,630		(10,476		)	6,694
Noncontrolling Interest	—		—		16		—			16
Total Shareholders’ Equity	6,694		4,846		5,646		(10,476		)	6,710
Total Liabilities and Shareholders’ Equity	$	12,779	$	6,086	$	7,953	$	(14,763	)	$	12,055



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 nine months ended June 28, 2014													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Cash Provided by (Used for) Operating Activities	$	12		$	264		$	312		$	(45	)	$	543
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(1		)	(109		)	(327		)	—			(437		)
(Purchases of)/Proceeds from marketable securities, net	—			—			(1		)	—			(1		)
Acquisitions, net of cash acquired	—			—			(56		)	—			(56		)
Other, net	30			1			13			—			44
Cash Provided by (Used for) Investing Activities	29			(108		)	(371		)	—			(450		)
Cash Flows from Financing Activities:
Net change in debt	(370		)	—			(9		)	—			(379		)
Purchases of Tyson Class A common stock	(286		)	—			—			—			(286		)
Dividends	(76		)	—			(45		)	45			(76		)
Stock options exercised	61			—			—			—			61
Other, net	26			—			—			—			26
Net change in intercompany balances	604			(162		)	(442		)	—			—
Cash Provided by (Used for) Financing Activities	(41		)	(162		)	(496		)	45			(654		)
Effect of Exchange Rate Change on Cash	—			—			3			—			3
Increase (Decrease) in Cash and Cash Equivalents	—			(6		)	(552		)	—			(558		)
Cash and Cash Equivalents at Beginning of Year	—			21			1,124			—			1,145
Cash and Cash Equivalents at End of Period	$	—		$	15		$	572		$	—		$	587



Condensed Consolidating Statement of Cash Flows for the nine months ended June 29, 2013													in millions
	TFI Parent			TFM Parent			Non- Guarantors			Eliminations			Total
Cash Provided by (Used for) Operating Activities	$	185		$	196		$	404		$	(13	)	$	772
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(3		)	(82		)	(340		)	—			(425		)
(Purchases of)/Proceeds from marketable securities, net	—			(14		)	(87		)	—			(101		)
Acquisitions, net of cash acquired	—			—			(106		)	—			(106		)
Other, net	(3		)	9			30			—			36
Cash Provided by (Used for) Investing Activities	(6		)	(87		)	(503		)				(596		)
Cash Flows from Financing Activities:
Net change in debt	—			—			(21		)	—			(21		)
Purchases of Tyson Class A common stock	(298		)	—			—			—			(298		)
Dividends	(87		)	—			(13		)	13			(87		)
Stock options exercised	93			—			—			—			93
Other, net	13			—			—			—			13
Net change in intercompany balances	99			(105		)	6			—			—
Cash Provided by (Used for) Financing Activities	(180		)	(105		)	(28		)	13			(300		)
Effect of Exchange Rate Change on Cash	—			—			(4		)	—			(4		)
Increase (Decrease) in Cash and Cash Equivalents	(1		)	4			(131		)	—			(128		)
Cash and Cash Equivalents at Beginning of Year	1			9			1,061			—			1,071
Cash and Cash Equivalents at End of Period	$	—		$	13		$	930		$	—		$	943