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Segment Reporting
3 Months Ended
Dec. 28, 2019
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
We operate in four reportable segments: Beef, Pork, Chicken, and Prepared Foods. We measure segment profit as operating income (loss). International/Other primarily includes our foreign operations in Australia, China, South Korea, Malaysia, Mexico, the Netherlands, Thailand and the United Kingdom, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC.
Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain.
Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain.
Chicken: Chicken includes our domestic operations related to raising and processing live chickens into, and purchasing raw materials for, fresh, frozen and value-added chicken products, as well as sales from allied products. Our value-added chicken products primarily include breaded chicken strips, nuggets, patties, tenders, wings and other ready-to-fix or fully cooked chicken parts. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary.
Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. This segment includes brands such as Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, as well as artisanal brands Aidells®, and Gallo Salame®. Products primarily include ready-to-eat sandwiches, sandwich components such as flame-grilled hamburgers and Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets.
We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC, which are included in International/Other. Intersegment transactions, which were at market prices, are included in the segment sales in the table below.
Information on segments and a reconciliation to income before income taxes are as follows (in millions): 
 
Three Months Ended
 
 
December 28, 2019
 
December 29, 2018
 
Sales:
 
 
 
 
Beef
$
3,838

 
$
3,926

 
Pork
1,379

 
1,179

 
Chicken
3,292

 
3,115

 
Prepared Foods
2,140

 
2,149

 
International/Other
498

 
143

 
Intersegment
(332
)
 
(319
)
 
Total sales
$
10,815

 
$
10,193

 

 
Three Months Ended
 
 
December 28, 2019
 
December 29, 2018
 
Operating income (loss):
 
 
 
 
Beef
$
410

 
$
305

 
Pork
191

 
95

 
Chicken
57

 
160

(a) 
Prepared Foods
158

 
265

 
International/Other
10

(b) 
(18
)
(b) 
Total operating income
826

 
807

 
 
 
 
 
 
Total other expense
101

 
94

 
 
 
 
 
 
Income before income taxes
$
725

 
$
713

 
(a) Chicken operating income included $8 million in Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018.
(b) International/Other operating results included $18 million in Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018, and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $4 million for each of the three months ended December 28, 2019, and December 29, 2018.
The following tables further disaggregate our sales to customers by major distribution channels (in millions):
 
Three Months Ended
 
December 28, 2019
 
Consumer Products(a)
 
Foodservice(b)
 
International(c)
 
Industrial and Other(d)
 
Intersegment
 
Total
Beef
$
1,857

 
$
1,045

 
$
514

 
$
326

 
$
96

 
$
3,838

Pork
400

 
117

 
280

 
360

 
222

 
1,379

Chicken
1,389

 
1,307

 
161

 
421

 
14

 
3,292

Prepared Foods
1,211

 
846

 
37

 
46

 

 
2,140

International/Other

 

 
498

 

 

 
498

Intersegment

 

 

 

 
(332
)
 
(332
)
Total
$
4,857


$
3,315


$
1,490

 
$
1,153

 
$

 
$
10,815

 
Three Months Ended
 
December 29, 2018
 
Consumer Products(a)
 
Foodservice(b)
 
International(c)
 
Industrial and Other(d)
 
Intersegment
 
Total
Beef
$
1,851

 
$
1,017

 
$
628

 
$
340

 
$
90

 
$
3,926

Pork
337

 
91

 
225

 
311

 
215

 
1,179

Chicken
1,372

 
1,130

 
157

 
442

 
14

 
3,115

Prepared Foods
1,275

 
789

 
24

 
61

 

 
2,149

Other

 

 
143

 

 

 
143

Intersegment

 

 

 

 
(319
)
 
(319
)
Total
$
4,835

 
$
3,027

 
$
1,177

 
$
1,154

 
$

 
$
10,193

(a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores and internet-based retailers.
(b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military.
(c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products.
(d) Includes sales to industrial food processing companies that further process our product to sell to end consumers and any remaining sales not included in the Consumer Products, Foodservice or International categories.