(d) | Exhibit |
Exhibit Number | Description |
99.1 | Press release, dated August 3, 2015, announcing the unaudited results of operations of Tyson Foods, Inc. for its third quarter and nine months ended June 27, 2015 |
TYSON FOODS, INC. | |||
Date: August 3, 2015 | By: | /s/ Dennis Leatherby | |
Name: | Dennis Leatherby | ||
Title: | Executive Vice President and | ||
Chief Financial Officer |
(in millions, except per share data) | Third Quarter | Nine Months Ended | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Sales | $ | 10,071 | $ | 9,682 | $ | 30,867 | $ | 27,475 | |||||||
Operating Income | 563 | 351 | 1,619 | 1,124 | |||||||||||
Net Income | 344 | 258 | 965 | 720 | |||||||||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 1 | (2 | ) | 3 | (7 | ) | |||||||||
Net Income Attributable to Tyson | $ | 343 | $ | 260 | $ | 962 | $ | 727 | |||||||
Adjusted¹ Operating Income | $ | 568 | $ | 407 | $ | 1,685 | $ | 1,180 | |||||||
Net Income Per Share Attributable to Tyson | $ | 0.83 | $ | 0.73 | $ | 2.32 | $ | 2.05 | |||||||
Adjusted¹ Net Income Per Share Attributable to Tyson | $ | 0.80 | $ | 0.75 | $ | 2.32 | $ | 2.07 |
• | Record cash flows from operations of $864 million |
• | Sales increased 4% to approximately $10.1 billion |
• | Record Adjusted operating income up 40% to $568 million |
• | Record third quarter Adjusted EPS of $0.80, up 7% compared to $0.75 in prior year |
• | Overall adjusted operating margin was 5.6% |
• | Chicken segment operating margin of 11.4% |
• | Record Prepared Foods segment adjusted operating margin of 10.9% |
• | Captured $87 million in total synergies during the third quarter |
Sales | ||||||||||||||||||||
(for the third quarter and nine months ended June 27, 2015, and June 28, 2014) | ||||||||||||||||||||
Third Quarter | Nine Months Ended | |||||||||||||||||||
Volume | Avg. Price | Volume | Avg. Price | |||||||||||||||||
2015 | 2014 | Change | Change | 2015 | 2014 | Change | Change | |||||||||||||
Chicken | $ | 2,757 | $ | 2,829 | 2.9 | % | (5.3 | )% | $ | 8,366 | $ | 8,327 | 1.9 | % | (1.4 | )% | ||||
Beef | 4,305 | 4,189 | (3.9 | )% | 6.9 | % | 12,826 | 11,748 | (2.5 | )% | 11.9 | % | ||||||||
Pork | 1,207 | 1,766 | (4.8 | )% | (28.2 | )% | 3,951 | 4,677 | (2.7 | )% | (13.2 | )% | ||||||||
Prepared Foods | 1,810 | 901 | 77.4 | % | 13.2 | % | 5,814 | 2,669 | 79.2 | % | 21.5 | % | ||||||||
International | 244 | 365 | (25.3 | )% | (10.5 | )% | 771 | 1,020 | (19.8 | )% | (5.8 | )% | ||||||||
Other | — | — | n/a | n/a | — | — | n/a | n/a | ||||||||||||
Intersegment Sales | (252 | ) | (368 | ) | n/a | n/a | (861 | ) | (966 | ) | n/a | n/a | ||||||||
Total | $ | 10,071 | $ | 9,682 | 3.4 | % | 0.6 | % | $ | 30,867 | $ | 27,475 | 4.5 | % | 7.6 | % |
Operating Income (Loss) | ||||||||||||||||||||
(for the third quarter and nine months ended June 27, 2015, and June 28, 2014) | ||||||||||||||||||||
Third Quarter | Nine Months Ended | |||||||||||||||||||
Operating Margin | Operating Margin | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Chicken | $ | 313 | $ | 195 | 11.4 | % | 6.9 | % | $ | 996 | $ | 682 | 11.9 | % | 8.2 | % | ||||
Beef | (7 | ) | 101 | (0.2 | )% | 2.4 | % | (33 | ) | 194 | (0.3 | )% | 1.7 | % | ||||||
Pork | 64 | 128 | 5.3 | % | 7.2 | % | 285 | 356 | 7.2 | % | 7.6 | % | ||||||||
Prepared Foods | 207 | (50 | ) | 11.4 | % | (5.5 | )% | 438 | (13 | ) | 7.5 | % | (0.5 | )% | ||||||
International | 1 | (15 | ) | 0.4 | % | (4.1 | )% | (28 | ) | (73 | ) | (3.6 | )% | (7.2 | )% | |||||
Other | (15 | ) | (8 | ) | n/a | n/a | (39 | ) | (22 | ) | n/a | n/a | ||||||||
Total | $ | 563 | $ | 351 | 5.6 | % | 3.6 | % | $ | 1,619 | $ | 1,124 | 5.2 | % | 4.1 | % |
Adjusted Operating Income (Loss) | ||||||||||||||||||||
(for the third quarter and nine months ended June 27, 2015, and June 28, 2014) | ||||||||||||||||||||
Third Quarter | Nine Months Ended | |||||||||||||||||||
Adjusted Operating Margin | Adjusted Operating Margin | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Chicken | $ | 313 | $ | 195 | 11.4 | % | 6.9 | % | $ | 996 | $ | 682 | 11.9 | % | 8.2 | % | ||||
Beef | (7 | ) | 101 | (0.2 | )% | 2.4 | % | (33 | ) | 194 | (0.3 | )% | 1.7 | % | ||||||
Pork | 64 | 128 | 5.3 | % | 7.2 | % | 285 | 356 | 7.2 | % | 7.6 | % | ||||||||
Prepared Foods | 197 | (1 | ) | 10.9 | % | (0.1 | )% | 465 | 36 | 8.0 | % | 1.3 | % | |||||||
International | 1 | (15 | ) | 0.4 | % | (4.1 | )% | (28 | ) | (73 | ) | (3.6 | )% | (7.2 | )% | |||||
Other | — | (1 | ) | n/a | n/a | — | (15 | ) | n/a | n/a | ||||||||||
Total | $ | 568 | $ | 407 | 5.6 | % | 4.2 | % | $ | 1,685 | $ | 1,180 | 5.5 | % | 4.3 | % |
• | Prepared Foods operating income was adjusted for the following: |
◦ | Decrease of $11 million related to the legacy Hillshire Brands Company ("Hillshire Brands") plant fire insurance proceeds (net of ongoing costs). |
◦ | Increase of $1 million related to merger and integration costs. |
• | Other adjusted operating income increased by $15 million related to merger and integration costs. |
• | Prepared Foods operating income was adjusted for the following: |
◦ | Increase of $17 million of ongoing costs (net of insurance proceeds) related to a legacy Hillshire Brands plant fire. |
◦ | Increase of $10 million related to merger and integration costs. |
• | Other adjusted operating income increased by $39 million related to merger and integration costs. |
• | Prepared Foods operating income was increased by $49 million for an impairment due to closure of three facilities. |
• | Other adjusted operating income increased by $7 million related to merger and integration costs. |
• | Chicken - Sales volumes grew as a result of stronger demand for chicken products and mix of rendered product sales. Average sales price decreased as feed ingredient costs declined, partially offset by mix changes. Operating income increased due to higher sales volume and lower feed ingredient costs, partially offset by disruptions caused by export bans. Feed costs decreased $125 million and $310 million during the third quarter and first nine months of fiscal 2015, respectively. |
• | Beef - Sales volume decreased due to a reduction in live cattle processed. Average sales price increased due to lower domestic availability of beef products. Operating income decreased due to unfavorable market conditions associated with a decrease in supply of approximately 8%, which drove up fed cattle costs, export market disruptions, the relative value of competing proteins and increased operating costs. |
• | Pork - Sales volume decreased due to the divestiture of our Heinold Hog Markets business in the first quarter of fiscal 2015. Excluding the impact of the divestiture, our sales volume grew 2.9% and 2.6% for the third quarter and first nine months of fiscal 2015, respectively, driven by better demand for our pork products. Live hog supplies increased, which drove down livestock cost and average sales price. Operating income decreased due to compressed pork margins during the third quarter of fiscal 2015 caused by a decline in exports and excess domestic availability of pork products. |
• | Prepared Foods - Sales volume increased due to incremental volumes from the acquisition of Hillshire Brands. Average sales price increased primarily due to better product mix which was positively impacted by the acquisition of Hillshire Brands. Operating income improved due to an increase in sales volume and average sales price mainly attributed to Hillshire Brands, as well as lower raw material costs of approximately $170 million and $200 million for the third quarter and first nine months of fiscal 2015, respectively, related to our legacy Prepared Foods business. Additionally, profit improvement initiatives and Hillshire Brands synergies positively impacted Prepared Foods operating income by $79 million and $204 million for the third quarter and first nine months of fiscal 2015, respectively. |
• | International - Sales volume decreased due to the sale of our Brazil operation during the first quarter of fiscal 2015 and weak demand in China, partially offset by stronger demand in Mexico. Average sales price decreased due to supply imbalances associated with weak demand in China and currency devaluation in Mexico. Operating results improved due to the sale of our Brazil operation and better market conditions in Mexico, partially offset by challenging market conditions in China. |
• | Chicken – Current USDA data shows an increase in chicken production around 3% in fiscal 2016 compared to fiscal 2015. However, more recent data indicates a greater increase in supply which could outpace the demand. Based on current futures prices, we anticipate lower feed cost in fiscal 2015 compared to fiscal 2014 of approximately $400 million and anticipate similar feed costs in fiscal 2016 compared to fiscal 2015. Many of our sales contracts are formula based or shorter-term in nature, but there may be a lag time for price changes to take effect. Additionally, we expect disruptions related to export bans to continue into early fiscal 2016. For fiscal 2015, we believe our Chicken segment's operating margin should be approximately 12% based on the strong demand and pricing environment. For fiscal 2016, we believe our Chicken segment's operating margin should be at or above the top end of its normalized range of 7-9%. |
• | Beef – We expect industry fed cattle supplies to increase around 1% in fiscal 2016 compared to fiscal 2015. Although we generally expect adequate supplies in regions we operate our plants, there may be periods of imbalance of fed cattle supply and demand. We believe our Beef segment should be near break-even for fiscal 2015 and profitable but below its normalized range of 2.5%-4.5% for fiscal 2016. |
• | Pork – We expect industry hog supplies to increase around 3% in fiscal 2016 compared to fiscal 2015. For fiscal 2015 and fiscal 2016, we believe our Pork segment's operating margin will be in its normalized range of 6-8%. |
• | Prepared Foods – As we proceed with the integration of Hillshire Brands, we expect to realize synergies of approximately $300 million in fiscal 2015, more than $400 million in fiscal 2016 and more than $600 million in fiscal 2017, from the acquisition as well as our profit improvement plan for our legacy Prepared Foods business. The majority of these benefits will be realized in our Prepared Foods segment. In fiscal 2015, we expect lower raw material costs of approximately $320 million related to our legacy Prepared Foods business. We expect our Prepared Foods segment's adjusted operating margin to be approximately 8% for fiscal 2015. In fiscal 2016, we should reach the low-end of our new range of 10-12% which is a full year earlier than originally planned as we continue to realize the value of our branded portfolio and benefit from synergies from the Hillshire acquisition and operational improvements within our legacy Prepared Foods business. In addition, we expect lower raw material costs of approximately $250 million related to the Prepared Foods segment in fiscal 2016. |
• | International – The sale of the Mexico operation closed on June 29, 2015, in our fourth quarter of fiscal 2015. We received proceeds of $400 million, subject to potential working capital and net debt adjustments. We anticipate we will realize a gain, net of income tax impacts, on sale of approximately $80 million, subject to additional adjustments. We expect the International segment’s adjusted operating loss to improve by more than $25 million compared to fiscal 2014 and expect similar results in fiscal 2016 compared to fiscal 2015. |
• | Sales – We expect sales to approximate $41 billion for fiscal 2015 and fiscal 2016, respectively. |
• | Capital Expenditures – We expect capital expenditures to approximate $900 million for fiscal 2015 and range between $900-$950 million for fiscal 2016. |
• | Net Interest Expense – We expect net interest expense will approximate $280 million and $260 million for fiscal 2015 and fiscal 2016, respectively. |
• | Liquidity – We expect total liquidity, which was $1.7 billion at June 27, 2015, to be above our goal to maintain liquidity in excess of $1.2 billion. |
• | Share Repurchases – In fiscal 2016, we expect to increase share repurchases under our share repurchase program. As of June 27, 2015, 27.9 million shares remain authorized for repurchases. The timing and extent to which we repurchase shares will depend upon, among other things, our working capital needs, market conditions, liquidity targets, our debt obligations and regulatory requirements. |
Three Months Ended | Nine Months Ended | ||||||||||||||
June 27, 2015 | June 28, 2014 | June 27, 2015 | June 28, 2014 | ||||||||||||
Sales | $ | 10,071 | $ | 9,682 | $ | 30,867 | $ | 27,475 | |||||||
Cost of Sales | 9,085 | 9,045 | 27,936 | 25,502 | |||||||||||
Gross Profit | 986 | 637 | 2,931 | 1,973 | |||||||||||
Selling, General and Administrative | 423 | 286 | 1,312 | 849 | |||||||||||
Operating Income | 563 | 351 | 1,619 | 1,124 | |||||||||||
Other (Income) Expense: | |||||||||||||||
Interest income | (3 | ) | (1 | ) | (6 | ) | (6 | ) | |||||||
Interest expense | 73 | 25 | 221 | 78 | |||||||||||
Other, net | (25 | ) | 17 | (32 | ) | 18 | |||||||||
Total Other (Income) Expense | 45 | 41 | 183 | 90 | |||||||||||
Income before Income Taxes | 518 | 310 | 1,436 | 1,034 | |||||||||||
Income Tax Expense | 174 | 52 | 471 | 314 | |||||||||||
Net Income | 344 | 258 | 965 | 720 | |||||||||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 1 | (2 | ) | 3 | (7 | ) | |||||||||
Net Income Attributable to Tyson | $ | 343 | $ | 260 | $ | 962 | $ | 727 | |||||||
Weighted Average Shares Outstanding: | |||||||||||||||
Class A Basic | 335 | 280 | 335 | 275 | |||||||||||
Class B Basic | 70 | 70 | 70 | 70 | |||||||||||
Diluted | 414 | 356 | 414 | 355 | |||||||||||
Net Income Per Share Attributable to Tyson: | |||||||||||||||
Class A Basic | $ | 0.86 | $ | 0.75 | $ | 2.41 | $ | 2.15 | |||||||
Class B Basic | $ | 0.78 | $ | 0.68 | $ | 2.20 | $ | 1.94 | |||||||
Diluted | $ | 0.83 | $ | 0.73 | $ | 2.32 | $ | 2.05 | |||||||
Dividends Declared Per Share: | |||||||||||||||
Class A | $ | 0.100 | $ | 0.075 | $ | 0.325 | $ | 0.250 | |||||||
Class B | $ | 0.090 | $ | 0.068 | $ | 0.293 | $ | 0.226 | |||||||
Sales Growth | 4.0 | % | 12.3 | % | |||||||||||
Margins: (Percent of Sales) | |||||||||||||||
Gross Profit | 9.8 | % | 6.6 | % | 9.5 | % | 7.2 | % | |||||||
Operating Income | 5.6 | % | 3.6 | % | 5.2 | % | 4.1 | % | |||||||
Net Income Attributable to Tyson | 3.4 | % | 2.7 | % | 3.1 | % | 2.6 | % | |||||||
Effective Tax Rate | 33.6 | % | 16.8 | % | 32.8 | % | 30.4 | % |
June 27, 2015 | September 27, 2014 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 471 | $ | 438 | |||
Accounts receivable, net | 1,633 | 1,684 | |||||
Inventories | 3,082 | 3,274 | |||||
Other current assets | 214 | 379 | |||||
Assets held for sale | 189 | 446 | |||||
Total Current Assets | 5,589 | 6,221 | |||||
Net Property, Plant and Equipment | 5,312 | 5,130 | |||||
Goodwill | 6,690 | 6,706 | |||||
Intangible Assets, net | 5,202 | 5,276 | |||||
Other Assets | 650 | 623 | |||||
Total Assets | $ | 23,443 | $ | 23,956 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities: | |||||||
Current debt | $ | 1,205 | $ | 643 | |||
Accounts payable | 1,621 | 1,806 | |||||
Other current liabilities | 1,150 | 1,207 | |||||
Liabilities held for sale | 52 | 141 | |||||
Total Current Liabilities | 4,028 | 3,797 | |||||
Long-Term Debt | 6,029 | 7,535 | |||||
Deferred Income Taxes | 2,447 | 2,450 | |||||
Other Liabilities | 1,256 | 1,270 | |||||
Total Tyson Shareholders’ Equity | 9,667 | 8,890 | |||||
Noncontrolling Interests | 16 | 14 | |||||
Total Shareholders’ Equity | 9,683 | 8,904 | |||||
Total Liabilities and Shareholders’ Equity | $ | 23,443 | $ | 23,956 |
Nine Months Ended | |||||||
June 27, 2015 | June 28, 2014 | ||||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 965 | $ | 720 | |||
Depreciation and amortization | 524 | 382 | |||||
Deferred income taxes | 16 | (64 | ) | ||||
Convertible debt discount | — | (92 | ) | ||||
Other, net | 57 | 76 | |||||
Net changes in operating assets and liabilities | 110 | (479 | ) | ||||
Cash Provided by Operating Activities | 1,672 | 543 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to property, plant and equipment | (636 | ) | (437 | ) | |||
Purchases of marketable securities | (24 | ) | (25 | ) | |||
Proceeds from sale of marketable securities | 43 | 24 | |||||
Acquisitions, net of cash acquired | — | (56 | ) | ||||
Proceeds from sale of businesses | 165 | — | |||||
Other, net | 26 | 44 | |||||
Cash Used for Investing Activities | (426 | ) | (450 | ) | |||
Cash Flows From Financing Activities: | |||||||
Payments on debt | (1,485 | ) | (407 | ) | |||
Proceeds from issuance of long-term debt | 501 | 28 | |||||
Borrowings on revolving credit facility | 1,345 | — | |||||
Payments on revolving credit facility | (1,345 | ) | — | ||||
Purchases of Tyson Class A common stock | (197 | ) | (286 | ) | |||
Dividends | (110 | ) | (76 | ) | |||
Stock options exercised | 71 | 61 | |||||
Other, net | 17 | 26 | |||||
Cash Used for Financing Activities | (1,203 | ) | (654 | ) | |||
Effect of Exchange Rate Changes on Cash | (10 | ) | 3 | ||||
Increase (Decrease) in Cash and Cash Equivalents | 33 | (558 | ) | ||||
Cash and Cash Equivalents at Beginning of Year | 438 | 1,145 | |||||
Cash and Cash Equivalents at End of Period | $ | 471 | $ | 587 |
Nine Months Ended | Fiscal Year Ended | Twelve Months Ended | ||||||||||||
June 27, 2015 | June 28, 2014 | September 27, 2014 | June 27, 2015 | |||||||||||
Net income | $ | 965 | $ | 720 | $ | 856 | $ | 1,101 | ||||||
Less: Interest income | (6 | ) | (6 | ) | (7 | ) | (7 | ) | ||||||
Add: Interest expense | 221 | 78 | 132 | 275 | ||||||||||
Add: Income tax expense | 471 | 314 | 396 | 553 | ||||||||||
Add: Depreciation | 447 | 362 | 494 | 579 | ||||||||||
Add: Amortization (a) | 69 | 15 | 26 | 80 | ||||||||||
EBITDA | $ | 2,167 | $ | 1,483 | $ | 1,897 | $ | 2,581 | ||||||
Adjustments to EBITDA: | ||||||||||||||
Add: Ongoing net costs related to a legacy Hillshire Brands plant fire | 17 | — | 12 | 29 | ||||||||||
Add: Merger and integration costs | 49 | 78 | 197 | 168 | ||||||||||
Add: Brazil impairment | — | — | 42 | 42 | ||||||||||
Add: Hillshire Brands purchase price accounting adjustments | — | — | 19 | 19 | ||||||||||
Less: Gain on sale of equity securities | (21 | ) | — | — | (21 | ) | ||||||||
Total Adjusted EBITDA | $ | 2,212 | $ | 1,561 | $ | 2,167 | $ | 2,818 | ||||||
Pro forma Adjustments to Adjusted EBITDA: | ||||||||||||||
Add: Hillshire Brands adjusted EBITDA (prior to acquisition) (b) | 422 | 49 | ||||||||||||
Total Pro forma Adjusted EBITDA | $ | 2,589 | $ | 2,867 | ||||||||||
Total gross debt | $ | 8,178 | $ | 7,234 | ||||||||||
Less: Cash and cash equivalents | (438 | ) | (471 | ) | ||||||||||
Less: Short-term investments | (1 | ) | (2 | ) | ||||||||||
Total net debt | $ | 7,739 | $ | 6,761 | ||||||||||
Pro forma adjustments net debt: | ||||||||||||||
Less: Cash received from sale of the Mexico operation (c) | $ | — | $ | (400 | ) | |||||||||
Total Pro forma adjusted net debt | $ | 7,739 | $ | 6,361 | ||||||||||
Ratio Calculations: | ||||||||||||||
Gross debt/EBITDA | 4.3x | 2.8x | ||||||||||||
Net debt/EBITDA | 4.1x | 2.6x | ||||||||||||
Gross debt/Adjusted EBITDA | 3.8x | 2.6x | ||||||||||||
Net debt/Adjusted EBITDA | 3.6x | 2.4x | ||||||||||||
Gross debt/Pro forma Adjusted EBITDA | 3.2x | 2.5x | ||||||||||||
Net debt/Pro forma Adjusted EBITDA | 3.0x | 2.4x | ||||||||||||
Pro forma Adjusted net debt/Pro forma Adjusted EBITDA | 3.0x | 2.2x |
(a) | Excludes the amortization of debt discount expense of $8 million and $5 million for the nine months ended June 27, 2015, and June 28, 2014, respectively, $10 million for the fiscal year ended September 27, 2014, and $13 million for the twelve months ended June 27, 2015, as it is included in Interest expense. |
(b) | Represents Hillshire Brands adjusted EBITDA, prior to our acquisition, for the eleven months and two months ended August 28, 2014, respectively. These amounts are added to our Adjusted EBITDA for the fiscal year ended September 27, 2014 and the twelve months ended June 27, 2015, in order for Net debt to Adjusted EBITDA to include a full twelve months of Hillshire Brands results on a pro forma basis for each of the periods presented. The pro forma adjusted EBITDA was derived from Hillshire Brand’s historical financial statements for the periods ended September 28, 2013 and June 28, 2014 as filed with the Securities and Exchange Commission, as well as amounts for the two months ended August 28, 2014, prior to the closing of the acquisition. These amounts were adjusted to remove the impact of deal costs related to Pinnacle Foods, Inc. and Tyson Foods, Inc. transactions, Storm Lake fire, and severance costs. We believe this pro forma presentation is useful and helps management, investors, and rating agencies enhance their understanding of our financial performance and to better highlight future financial trends on a comparable basis with Hillshire Brands results included for the periods presented given the significance of the acquisition to our overall results. |
(c) | Represents the proceeds from the sale of our Mexico poultry operation, which was completed on June 29, 2015, two days subsequent to the end of our third quarter, as though it had occurred on June 27, 2015. We believe this pro forma presentation is useful and helps management, investors, and rating agencies enhance their understanding of our financial performance as we continue to utilize significant cash flows to rapidly deleverage and strengthen our balance sheet. |
Third Quarter | Nine Months Ended | ||||||||||||||||||||||||||||||
Pre-Tax Impact | EPS Impact | Pre-Tax Impact | EPS Impact | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Reported net income per share attributable to Tyson | $ | 0.83 | $ | 0.73 | $ | 2.32 | $ | 2.05 | |||||||||||||||||||||||
Add: Ongoing net costs (insurance proceeds) related to a legacy Hillshire Brands plant fire | $ | (11 | ) | $ | — | (0.02 | ) | — | $ | 17 | $ | — | 0.02 | — | |||||||||||||||||
Add: Merger and integration costs | $ | 16 | $ | 29 | 0.02 | 0.05 | $ | 49 | $ | 29 | 0.07 | 0.05 | |||||||||||||||||||
Add: Impairment due to closure of three facilities | $ | — | $ | 49 | — | 0.08 | $ | — | $ | 49 | — | 0.08 | |||||||||||||||||||
Less: Gain on sale of equity securities | $ | (21 | ) | $ | — | (0.03 | ) | — | $ | (21 | ) | $ | — | (0.03 | ) | — | |||||||||||||||
Less: Recognition of previously unrecognized tax benefit | $ | — | $ | — | — | (0.11 | ) | $ | — | $ | — | (0.06 | ) | (0.11 | ) | ||||||||||||||||
Adjusted net income per share attributable to Tyson | $ | 0.80 | $ | 0.75 | $ | 2.32 | $ | 2.07 |
Third Quarter | Nine Months Ended | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Reported operating income | $ | 563 | $ | 351 | $ | 1,619 | $ | 1,124 | |||||||
Add: Ongoing net costs (insurance proceeds) related to a legacy Hillshire Brands plant fire | (11 | ) | — | 17 | — | ||||||||||
Add: Merger and integration costs | 16 | 7 | 49 | 7 | |||||||||||
Add: Impairment due to closure of three facilities | — | 49 | — | 49 | |||||||||||
Adjusted operating income | $ | 568 | $ | 407 | $ | 1,685 | $ | 1,180 | |||||||
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