(d) | Exhibit |
Exhibit Number | Description |
99.1 | Press release, dated November 23, 2015, announcing results of operations of Tyson Foods, Inc. for its fourth quarter and 12 months ended October 3, 2015 |
TYSON FOODS, INC. | |||
Date: November 23, 2015 | By: | /s/ Dennis Leatherby | |
Name: | Dennis Leatherby | ||
Title: | Executive Vice President and | ||
Chief Financial Officer |
(in millions, except per share data) | Fourth Quarter | 12 Months | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Sales | $ | 10,506 | $ | 10,105 | $ | 41,373 | $ | 37,580 | |||||||
Operating Income | 550 | 306 | 2,169 | 1,430 | |||||||||||
Net Income | 259 | 136 | 1,224 | 856 | |||||||||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 1 | (1 | ) | 4 | (8 | ) | |||||||||
Net Income Attributable to Tyson | $ | 258 | $ | 137 | $ | 1,220 | $ | 864 | |||||||
Net Income Per Share Attributable to Tyson | $ | 0.63 | $ | 0.35 | $ | 2.95 | $ | 2.37 | |||||||
Adjusted¹ Sales | $ | 9,756 | $ | 9,780 | $ | 40,623 | $ | 37,255 | |||||||
Adjusted¹ Operating Income | $ | 568 | $ | 469 | $ | 2,253 | $ | 1,649 | |||||||
Adjusted¹ Net Income Per Share Attributable to Tyson | $ | 0.83 | $ | 0.87 | $ | 3.15 | $ | 2.94 |
• | Adjusted operating income up 21% to $568 million |
• | Record fourth quarter adjusted operating margin of 5.8% |
• | Cash flows from operations of $898 million |
• | Captured $98 million in total synergies |
• | Repurchased 5.9 million shares for $250 million, excluding shares repurchased to offset dilution from our equity compensation plan |
• | Record adjusted EPS of $3.15, an increase of 7% over prior year |
• | Record adjusted sales of $40.6 billion, an increase of 9% over prior year |
• | Record adjusted operating income of $2.25 billion, an increase of 37% over prior year |
• | Record cash flows from operations of $2.6 billion |
• | Captured $322 million in total synergies |
Sales | ||||||||||||||||||||
(for the fourth quarter and 12 months ended October 3, 2015, and September 27, 2014) | ||||||||||||||||||||
Fourth Quarter | 12 Months | |||||||||||||||||||
Volume | Avg. Price | Volume | Avg. Price | |||||||||||||||||
2015 | 2014 | Change | Change | 2015 | 2014 | Change | Change | |||||||||||||
Chicken | $ | 3,024 | $ | 2,789 | 10.8 | % | (2.2 | )% | $ | 11,390 | $ | 11,116 | 4.2 | % | (1.6 | )% | ||||
Beef | 4,410 | 4,429 | 6.1 | % | (6.1 | )% | 17,236 | 16,177 | (0.3 | )% | 6.9 | % | ||||||||
Pork | 1,311 | 1,627 | 5.1 | % | (23.3 | )% | 5,262 | 6,304 | (0.8 | )% | (15.8 | )% | ||||||||
Prepared Foods | 2,008 | 1258 | 49.8 | % | 6.5 | % | 7,822 | 3,927 | 70.7 | % | 16.7 | % | ||||||||
Other | 108 | 361 | (67.8 | )% | (7.5 | )% | 879 | 1,381 | (32.2 | )% | (6.2 | )% | ||||||||
Intersegment Sales | (355 | ) | (359 | ) | n/a | n/a | (1,216 | ) | (1,325 | ) | n/a | n/a | ||||||||
Total | $ | 10,506 | $ | 10,105 | 6.8 | % | (2.6 | )% | $ | 41,373 | $ | 37,580 | 5.0 | % | 4.8 | % |
Operating Income (Loss) | ||||||||||||||||||||
(for the fourth quarter and 12 months ended October 3, 2015, and September 27, 2014) | ||||||||||||||||||||
Fourth Quarter | 12 Months | |||||||||||||||||||
Operating Margin | Operating Margin | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Chicken | $ | 370 | $ | 201 | 12.2 | % | 7.2 | % | $ | 1,366 | $ | 883 | 12.0 | % | 7.9 | % | ||||
Beef | (33 | ) | 153 | (0.7 | )% | 3.5 | % | (66 | ) | 347 | (0.4 | )% | 2.1 | % | ||||||
Pork | 95 | 99 | 7.2 | % | 6.1 | % | 380 | 455 | 7.2 | % | 7.2 | % | ||||||||
Prepared Foods | 150 | (47 | ) | 7.5 | % | (3.7 | )% | 588 | (60 | ) | 7.5 | % | (1.5 | )% | ||||||
Other | (32 | ) | (100 | ) | n/a | n/a | (99 | ) | (195 | ) | n/a | n/a | ||||||||
Total | $ | 550 | $ | 306 | 5.2 | % | 3.0 | % | $ | 2,169 | $ | 1,430 | 5.2 | % | 3.8 | % |
Adjusted Sales | ||||||||||||||||||||
(for the fourth quarter and 12 months ended October 3, 2015, and September 27, 2014) | ||||||||||||||||||||
Fourth Quarter | 12 Months | |||||||||||||||||||
Adjusted | Adjusted | Adjusted | Adjusted | |||||||||||||||||
Volume | Avg. Price | Volume | Avg. Price | |||||||||||||||||
2015 | 2014 | Change | Change | 2015 | 2014 | Change | Change | |||||||||||||
Chicken | $ | 2,808 | $ | 2,789 | 2.9 | % | (2.2 | )% | $ | 11,174 | $ | 11,116 | 2.2 | % | (1.6 | )% | ||||
Beef | 4,095 | 4,429 | (1.5 | )% | (6.1 | )% | 16,921 | 16,177 | (2.2 | )% | 6.9 | % | ||||||||
Pork | 1,218 | 1,627 | (2.4 | )% | (23.3 | )% | 5,169 | 6,304 | (2.6 | )% | (15.8 | )% | ||||||||
Prepared Foods | 1,865 | 933 | 73.6 | % | 15.1 | % | 7,679 | 3,602 | 77.8 | % | 19.9 | % | ||||||||
Other | 100 | 361 | (70.1 | )% | (7.5 | )% | 871 | 1,381 | (32.7 | )% | (6.2 | )% | ||||||||
Intersegment Sales | (330 | ) | (359 | ) | n/a | n/a | (1,191 | ) | (1,325 | ) | n/a | n/a | ||||||||
Total | $ | 9,756 | $ | 9,780 | 1.3 | % | (1.5 | )% | $ | 40,623 | $ | 37,255 | 3.7 | % | 5.2 | % |
Adjusted Operating Income (Loss) | ||||||||||||||||||||
(for the fourth quarter and 12 months ended October 3, 2015, and September 27, 2014) | ||||||||||||||||||||
Fourth Quarter | 12 Months | |||||||||||||||||||
Adjusted Operating Margin | Adjusted Operating Margin | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Chicken | $ | 344 | $ | 206 | 12.3 | % | 7.4 | % | $ | 1,340 | $ | 888 | 12.0 | % | 8.0 | % | ||||
Beef | (20 | ) | 153 | (0.5 | )% | 3.5 | % | (53 | ) | 347 | (0.3 | )% | 2.1 | % | ||||||
Pork | 88 | 99 | 7.2 | % | 6.1 | % | 373 | 455 | 7.2 | % | 7.2 | % | ||||||||
Prepared Foods | 171 | 17 | 9.2 | % | 1.8 | % | 636 | 53 | 8.3 | % | 1.5 | % | ||||||||
Other | (15 | ) | (6 | ) | n/a | n/a | (43 | ) | (94 | ) | n/a | n/a | ||||||||
Total | $ | 568 | $ | 469 | 5.8 | % | 4.8 | % | $ | 2,253 | $ | 1,649 | 5.5 | % | 4.4 | % |
• | Chicken - Adjusted sales volume grew as a result of stronger demand for chicken products and mix of rendered product sales. Adjusted average sales price decreased as feed ingredient costs declined, partially offset by mix changes. Adjusted operating income increased due to higher sales volume and lower feed ingredient costs, partially offset by disruptions caused by export bans. Adjusted feed costs decreased $130 million and $440 million during the fourth quarter and 12 months of fiscal 2015, respectively. |
• | Beef - Adjusted sales volume decreased due to a reduction in live cattle processed. Adjusted average sales price decreased in the fourth quarter of fiscal 2015 due to higher domestic availability of fed cattle supplies, which drove down livestock costs. For the 12 months of fiscal 2015, adjusted average sales price increased due to lower domestic availability of beef products. Adjusted operating income decreased due to unfavorable market conditions associated with a decrease in supply which drove up fed cattle costs, export market disruptions, the relative value of competing proteins and increased operating costs. Additionally, we incurred $70 million of losses in the fourth quarter of fiscal 2015 from mark-to-market open derivative positions and lower-of-cost-or-market inventory adjustments as a result of a large and rapid decline in live cattle futures during September. |
• | Pork - Adjusted 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 adjusted sales volume grew 6.5% and 3.5% for the fourth quarter and 12 months of fiscal 2015, respectively, driven by better demand for our pork products. Live hog supplies increased, which drove down livestock cost and adjusted average sales price. While reduced compared to prior year, adjusted operating income remained strong as we maximized our revenues relative to live hog markets, partially attributable to operational and mix performance. |
• | Prepared Foods - Adjusted sales volume increased due to incremental volumes from the acquisition of Hillshire Brands. Adjusted average sales price increased primarily due to better product mix which was positively impacted by the acquisition of Hillshire Brands. Adjusted operating income improved due to an increase in sales volume and average sales price mainly attributed to Hillshire Brands, as well as lower adjusted raw material costs of approximately $85 million and $285 million for the fourth quarter and 12 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 $81 million and $285 million for the fourth quarter and 12 months of fiscal 2015, respectively. |
• | Chicken – USDA data shows an increase in chicken production around 2% 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 expect lower feed costs in fiscal 2016 compared to fiscal 2015 of approximately $100 million. 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. For fiscal 2016, we believe our Chicken segment's operating margin should exceed 10%. |
• | Beef – We expect industry fed cattle supplies to be flat to slightly higher 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 are adjusting our normalized range of the Beef segment to 1.5-3.0% based on our historical performance and future expectations given existing beef fundamentals, tight cattle supplies and an imbalance of processing capacity. For fiscal 2016, we believe our Beef segment's operating margin should approximate the low end of the new range. |
• | Pork – We expect industry hog supplies to increase around 2-3% in fiscal 2016 compared to fiscal 2015. For fiscal 2016, we believe our Pork segment's operating margin will be in its normalized range of 6-8%. |
• | Prepared Foods – We expect lower raw material costs of approximately $350 million in fiscal 2016. As we continue to invest heavily in innovation, new product launches and the strengthening of our brands, we believe our operating margin should be near the low-end of our expected range of 10-12% in fiscal 2016. |
• | Other – In the fourth quarter of fiscal 2015, we began reporting the International segment in Other following the sale of our Mexico and Brazil poultry operations in fiscal 2015. As a result, Other includes our foreign operations related to raising and processing live chickens in China and India. We expect Other adjusted operating loss should be approximately $50 million in fiscal 2016. |
• | Sales – We expect sales to approximate $41 billion for fiscal 2016 as we grow our current businesses to offset the impact of fiscal 2015 divestitures. |
• | Capital Expenditures – We expect capital expenditures to approximate $900 million for fiscal 2016. |
• | Net Interest Expense – We expect net interest expense will approximate $255 million for fiscal 2016. |
• | Liquidity – We expect total liquidity, which was $1.9 billion at October 3, 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 October 3, 2015, 21.1 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. During the first quarter of fiscal 2016 as of November 20, 2015, we have repurchased approximately 4.4 million shares for $200 million, excluding shares repurchased to offset dilution from our equity compensation plans. |
• | Dividends – On November 19, 2015, the Board of Directors increased the quarterly dividend previously declared on July 30, 2015, to $0.15 per share on our Class A common stock and $0.135 per share on our Class B common stock. The increased quarterly dividend is payable on December 15, 2015, to shareholders of record at the close of business on December 1, 2015. The Board also declared a quarterly dividend of $0.15 per share on our Class A common stock and $0.135 per share on our Class B common stock, payable on March 15, 2016, to shareholders of record at the close of business on March 1, 2016. Beginning in fiscal 2017, we anticipate to increase our annual dividends approximately $0.10 per year. |
Three Months Ended | 12 Months | ||||||||||||||
October 3, 2015 | September 27, 2014 | October 3, 2015 | September 27, 2014 | ||||||||||||
Sales | $ | 10,506 | $ | 10,105 | $ | 41,373 | $ | 37,580 | |||||||
Cost of Sales | 9,520 | 9,393 | 37,456 | 34,895 | |||||||||||
Gross Profit | 986 | 712 | 3,917 | 2,685 | |||||||||||
Selling, General and Administrative | 436 | 406 | 1,748 | 1,255 | |||||||||||
Operating Income | 550 | 306 | 2,169 | 1,430 | |||||||||||
Other (Income) Expense: | |||||||||||||||
Interest income | (3 | ) | (1 | ) | (9 | ) | (7 | ) | |||||||
Interest expense | 72 | 54 | 293 | 132 | |||||||||||
Other, net | (4 | ) | 35 | (36 | ) | 53 | |||||||||
Total Other (Income) Expense | 65 | 88 | 248 | 178 | |||||||||||
Income before Income Taxes | 485 | 218 | 1,921 | 1,252 | |||||||||||
Income Tax Expense | 226 | 82 | 697 | 396 | |||||||||||
Net Income | 259 | 136 | 1,224 | 856 | |||||||||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 1 | (1 | ) | 4 | (8 | ) | |||||||||
Net Income Attributable to Tyson | $ | 258 | $ | 137 | $ | 1,220 | $ | 864 | |||||||
Weighted Average Shares Outstanding: | |||||||||||||||
Class A Basic | 333 | 313 | 335 | 284 | |||||||||||
Class B Basic | 70 | 70 | 70 | 70 | |||||||||||
Diluted | 411 | 391 | 413 | 364 | |||||||||||
Net Income Per Share Attributable to Tyson: | |||||||||||||||
Class A Basic | $ | 0.65 | $ | 0.37 | $ | 3.06 | $ | 2.48 | |||||||
Class B Basic | $ | 0.59 | $ | 0.32 | $ | 2.79 | $ | 2.26 | |||||||
Diluted | $ | 0.63 | $ | 0.35 | $ | 2.95 | $ | 2.37 | |||||||
Dividends Declared Per Share: | |||||||||||||||
Class A | $ | 0.100 | $ | 0.075 | $ | 0.425 | $ | 0.325 | |||||||
Class B | $ | 0.090 | $ | 0.068 | $ | 0.383 | $ | 0.294 | |||||||
Sales Growth | 4.0 | % | 10.1 | % | |||||||||||
Margins: (Percent of Sales) | |||||||||||||||
Gross Profit | 9.4 | % | 7.0 | % | 9.5 | % | 7.1 | % | |||||||
Operating Income | 5.2 | % | 3.0 | % | 5.2 | % | 3.8 | % | |||||||
Net Income Attributable to Tyson | 2.5 | % | 1.4 | % | 2.9 | % | 2.3 | % | |||||||
Effective Tax Rate | 46.4 | % | 37.5 | % | 36.3 | % | 31.6 | % |
October 3, 2015 | September 27, 2014 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 688 | $ | 438 | |||
Accounts receivable, net | 1,620 | 1,684 | |||||
Inventories | 2,878 | 3,274 | |||||
Other current assets | 195 | 379 | |||||
Assets held for sale | — | 446 | |||||
Total Current Assets | 5,381 | 6,221 | |||||
Net Property, Plant and Equipment | 5,176 | 5,130 | |||||
Goodwill | 6,667 | 6,706 | |||||
Intangible Assets, net | 5,168 | 5,276 | |||||
Other Assets | 612 | 623 | |||||
Total Assets | $ | 23,004 | $ | 23,956 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities: | |||||||
Current debt | $ | 715 | $ | 643 | |||
Accounts payable | 1,662 | 1,806 | |||||
Other current liabilities | 1,158 | 1,207 | |||||
Liabilities held for sale | — | 141 | |||||
Total Current Liabilities | 3,535 | 3,797 | |||||
Long-Term Debt | 6,010 | 7,535 | |||||
Deferred Income Taxes | 2,449 | 2,450 | |||||
Other Liabilities | 1,304 | 1,270 | |||||
Total Tyson Shareholders’ Equity | 9,691 | 8,890 | |||||
Noncontrolling Interests | 15 | 14 | |||||
Total Shareholders’ Equity | 9,706 | 8,904 | |||||
Total Liabilities and Shareholders’ Equity | $ | 23,004 | $ | 23,956 |
12 Months | |||||||
October 3, 2015 | September 27, 2014 | ||||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 1,224 | $ | 856 | |||
Depreciation and amortization | 711 | 530 | |||||
Deferred income taxes | 38 | (105 | ) | ||||
Convertible debt discount | — | (92 | ) | ||||
Gain on dispositions of businesses | (177 | ) | — | ||||
Impairment of assets | 285 | 107 | |||||
Share-based compensation expense | 69 | 51 | |||||
Other, net | 71 | (20 | ) | ||||
Net changes in operating assets and liabilities | 349 | (149 | ) | ||||
Cash Provided by Operating Activities | 2,570 | 1,178 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to property, plant and equipment | (854 | ) | (632 | ) | |||
Purchases of marketable securities | (38 | ) | (18 | ) | |||
Proceeds from sale of marketable securities | 52 | 33 | |||||
Acquisitions, net of cash acquired | — | (8,193 | ) | ||||
Proceeds from sale of businesses | 539 | — | |||||
Other, net | 31 | 10 | |||||
Cash Used for Investing Activities | (270 | ) | (8,800 | ) | |||
Cash Flows From Financing Activities: | |||||||
Payments on debt | (1,995 | ) | (639 | ) | |||
Proceeds from issuance of long-term debt | 501 | 5,576 | |||||
Borrowings on revolving credit facility | 1,345 | — | |||||
Payments on revolving credit facility | (1,345 | ) | — | ||||
Proceeds from issuance of debt component of tangible equity units | — | 205 | |||||
Proceeds from issuance of common stock, net of issuance costs | — | 873 | |||||
Net proceeds from issuance of equity component of tangible equity units | — | 1,255 | |||||
Purchases of Tyson Class A common stock | (495 | ) | (295 | ) | |||
Dividends | (147 | ) | (104 | ) | |||
Stock options exercised | 84 | 67 | |||||
Other, net | 17 | (23 | ) | ||||
Cash Provided by (Used for) Financing Activities | (2,035 | ) | 6,915 | ||||
Effect of Exchange Rate Changes on Cash | (15 | ) | — | ||||
Increase (Decrease) in Cash and Cash Equivalents | 250 | (707 | ) | ||||
Cash and Cash Equivalents at Beginning of Year | 438 | 1,145 | |||||
Cash and Cash Equivalents at End of Period | $ | 688 | $ | 438 |
12 Months Ended (b) | |||||||
October 3, 2015 | September 27, 2014 | ||||||
Net income | $ | 1,224 | $ | 856 | |||
Less: Interest income | (9 | ) | (7 | ) | |||
Add: Interest expense | 293 | 132 | |||||
Add: Income tax expense | 697 | 396 | |||||
Add: Depreciation | 609 | 494 | |||||
Add: Amortization (a) | 92 | 26 | |||||
EBITDA | $ | 2,906 | $ | 1,897 | |||
Adjustments to EBITDA: | |||||||
Add: China impairment | $ | 169 | $ | — | |||
Add: Merger and integration costs | 57 | — | |||||
Add: Prepared Foods network optimization impairment charges | 59 | — | |||||
Add: Denison plant closure | 12 | — | |||||
Add: Brazil impairment | — | 42 | |||||
Add: Hillshire Brands purchase price accounting adjustments | — | 19 | |||||
Add: Hillshire Brands acquisition, integration and costs associated with our Prepared Foods improvement plan | — | 197 | |||||
Add: Costs (insurance proceeds, net of costs) related to a legacy Hillshire Brands plant fire | (8 | ) | 12 | ||||
Less: Gain on sale of the Mexico operation | (161 | ) | — | ||||
Less: Gain on sale of equity securities | (21 | ) | — | ||||
Total Adjusted EBITDA | $ | 3,013 | $ | 2,167 | |||
Total gross debt | $ | 6,725 | $ | 8,178 | |||
Less: Cash and cash equivalents | (688 | ) | (438 | ) | |||
Less: Short-term investments | (2 | ) | (1 | ) | |||
Total net debt | $ | 6,035 | $ | 7,739 | |||
Ratio Calculations: | |||||||
Gross debt/EBITDA | 2.3x | 4.3x | |||||
Net debt/EBITDA | 2.1x | 4.1x | |||||
Gross debt/Adjusted EBITDA | 2.2x | 3.8x | |||||
Net debt/Adjusted EBITDA | 2.0x | 3.6x |
(a) | Excludes the amortization of debt discount expense of $10 million for the twelve months ended October 3, 2015, and September 27, 2014, respectively, as it is included in Interest expense. |
(b) | Adjusted EBITDA for fiscal 2015 was based on a 53-week year while fiscal 2014 was based on a 52-week year. |
Fourth Quarter | 12 Months Ended | ||||||||||||||||||||||||||||||
Pre-Tax Impact | EPS Impact | Pre-Tax Impact | EPS Impact | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014(a) | 2015 | 2014 | 2015 | 2014(a) | ||||||||||||||||||||||||
Reported net income per share attributable to Tyson | $ | 0.63 | $ | 0.35 | $ | 2.95 | $ | 2.37 | |||||||||||||||||||||||
Add: China impairment | $ | 169 | $ | — | 0.41 | — | $ | 169 | $ | — | 0.41 | — | |||||||||||||||||||
Add: Merger and integration costs | $ | 8 | $ | — | 0.02 | — | $ | 57 | $ | — | 0.09 | — | |||||||||||||||||||
Add: Prepared Foods network optimization impairment charges | $ | 59 | $ | — | 0.09 | — | $ | 59 | $ | — | 0.09 | — | |||||||||||||||||||
Add: Denison plant closure | $ | 12 | $ | — | 0.02 | — | $ | 12 | $ | — | 0.02 | — | |||||||||||||||||||
Add: Brazil impairment / Mexico undistributed earnings tax | $ | — | $ | 42 | — | 0.16 | $ | — | $ | 42 | — | 0.16 | |||||||||||||||||||
Add: Hillshire Brands acquisition, integration and costs associated with our Prepared Foods improvement plan | $ | — | $ | 119 | — | 0.24 | $ | — | $ | 197 | — | 0.37 | |||||||||||||||||||
Add: Hillshire Brands post-closing results, purchase price accounting and costs related to a legacy Hillshire Brands plant fire | $ | — | $ | 40 | — | 0.07 | $ | — | $ | 40 | — | 0.07 | |||||||||||||||||||
Add: Hillshire Brands acquisition financing incremental interest costs and share dilution | $ | — | $ | 27 | — | 0.09 | $ | — | $ | 27 | — | 0.12 | |||||||||||||||||||
Less: Recognition of previously unrecognized tax benefit | $ | — | $ | — | — | (0.04 | ) | $ | — | $ | — | (0.06 | ) | (0.15 | ) | ||||||||||||||||
Less: Insurance proceeds (net of costs) related to a legacy Hillshire Brands plant fire | $ | (25 | ) | $ | — | (0.04 | ) | — | $ | (8 | ) | $ | — | (0.02 | ) | — | |||||||||||||||
Less: Gain on sale of equity securities | $ | — | $ | — | — | — | $ | (21 | ) | $ | — | (0.03 | ) | — | |||||||||||||||||
Less: Gain on sale of the Mexico operation | $ | (161 | ) | $ | — | (0.24 | ) | — | $ | (161 | ) | $ | — | (0.24 | ) | — | |||||||||||||||
Less: Impact of additional week | $ | (39 | ) | $ | — | (0.06 | ) | — | $ | (39 | ) | $ | — | (0.06 | ) | — | |||||||||||||||
Adjusted net income per share attributable to Tyson | $ | 0.83 | $ | 0.87 | $ | 3.15 | $ | 2.94 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the fourth quarter ended October 3, 2015) | ||||||||||||||||||
Chicken | Beef | Pork | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 370 | $ | (33 | ) | $ | 95 | $ | 150 | $ | (32 | ) | $ | 550 | ||||
Add: China impairment | — | — | — | — | 169 | 169 | ||||||||||||
Add: Merger and integration costs | — | — | — | — | 8 | 8 | ||||||||||||
Add: Prepared Foods network optimization impairment charges | — | — | — | 59 | — | 59 | ||||||||||||
Add: Denison plant closure | — | 12 | — | — | — | 12 | ||||||||||||
Less: Insurance proceeds related to a legacy Hillshire Brands plant fire | — | — | — | (25 | ) | — | (25 | ) | ||||||||||
Less: Gain on sale of the Mexico operation | — | — | — | — | (161 | ) | (161 | ) | ||||||||||
Adjusted operating income prior to adjustment for additional week | 370 | (21 | ) | 95 | 184 | (16 | ) | 612 | ||||||||||
Less: Estimated impact of additional week (a) | (26 | ) | 1 | (7 | ) | (13 | ) | 1 | (44 | ) | ||||||||
Adjusted operating income (loss) | $ | 344 | $ | (20 | ) | $ | 88 | $ | 171 | $ | (15 | ) | $ | 568 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the fourth quarter ended September 27, 2014) | ||||||||||||||||||
Chicken | Beef | Pork | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 201 | $ | 153 | $ | 99 | $ | (47 | ) | $ | (100 | ) | $ | 306 | ||||
Add: Brazil impairment | — | — | — | — | 42 | 42 | ||||||||||||
Add: Hillshire Brands acquisition, integration and costs associated with our Prepared Foods improvement plan | 5 | — | — | 24 | 52 | 81 | ||||||||||||
Add: Hillshire Brands post-closing results, purchase price accounting and costs related to a legacy Hillshire Brands plant fire | — | — | — | 40 | — | 40 | ||||||||||||
Adjusted Operating Income (Loss) | $ | 206 | $ | 153 | $ | 99 | $ | 17 | $ | (6 | ) | $ | 469 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the 12 months ended October 3, 2015) | ||||||||||||||||||
Chicken | Beef | Pork | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 1,366 | $ | (66 | ) | $ | 380 | $ | 588 | $ | (99 | ) | $ | 2,169 | ||||
Add: China impairment | — | — | — | — | 169 | 169 | ||||||||||||
Add: Merger and integration costs | — | — | — | 10 | 47 | 57 | ||||||||||||
Add: Prepared Foods network optimization impairment charges | — | — | — | 59 | — | 59 | ||||||||||||
Add: Denison plant closure | — | 12 | — | — | — | 12 | ||||||||||||
Less: Insurance proceeds (net of costs) related to a legacy Hillshire Brands plant fire | — | — | — | (8 | ) | — | (8 | ) | ||||||||||
Less: Gain on sale of the Mexico operation | — | — | — | — | (161 | ) | (161 | ) | ||||||||||
Adjusted operating income prior to adjustment for additional week | 1,366 | (54 | ) | 380 | 649 | (44 | ) | 2,297 | ||||||||||
Less: Estimated impact of additional week (a) | (26 | ) | 1 | (7 | ) | (13 | ) | 1 | (44 | ) | ||||||||
Adjusted operating income (loss) | $ | 1,340 | $ | (53 | ) | $ | 373 | $ | 636 | $ | (43 | ) | $ | 2,253 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the 12 months ended September 27, 2014) | ||||||||||||||||||
Chicken | Beef | Pork | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 883 | $ | 347 | $ | 455 | $ | (60 | ) | $ | (195 | ) | $ | 1,430 | ||||
Add: Brazil impairment | — | — | — | — | 42 | 42 | ||||||||||||
Add: Hillshire Brands acquisition, integration and costs associated with our Prepared Foods improvement plan | 5 | — | — | 73 | 59 | 137 | ||||||||||||
Add: Hillshire Brands post-closing results, purchase price accounting and costs related to a legacy Hillshire Brands plant fire | — | — | — | 40 | — | 40 | ||||||||||||
Adjusted operating income (loss) | $ | 888 | $ | 347 | $ | 455 | $ | 53 | $ | (94 | ) | $ | 1,649 |
Fourth Quarter | 12 Months | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Reported sales | $ | 10,506 | $ | 10,105 | $ | 41,373 | $ | 37,580 | |||||||
Less: Impact of additional week (a) | (750 | ) | — | (750 | ) | — | |||||||||
Less: Hillshire Brands post-closing sales | — | (325 | ) | — | (325 | ) | |||||||||
Adjusted sales | $ | 9,756 | $ | 9,780 | $ | 40,623 | $ | 37,255 | |||||||
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