Segment Reporting

9 Months Ended

Jul. 03, 2021

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, Malaysia, Mexico, the Netherlands, South Korea and Thailand, 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				Nine Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Sales:
Beef	$	4,954	$	3,653	$	12,987	$	11,470
Pork	1,715		1,115		4,631		3,760
Chicken	3,476		3,112		9,860		9,801
Prepared Foods	2,323		2,035		6,600		6,255
International/Other	488		402		1,444		1,365
Intersegment	(478)		(295)		(1,284)		(926)
Total sales	$	12,478	$	10,022	$	34,238	$	31,725

	Three Months Ended				Nine Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Operating income (loss):
Beef(a)	$	1,120	$	649	$	2,093	$	1,114
Pork	67		107		250		391
Chicken(b)	(279)		(120)		(489)		36
Prepared Foods	150		145		633		494
International/Other(c)	4		(8)		—		11
Total operating income	1,062		773		2,487		2,046
Total other expense	96		108		281		219
Income before income taxes	$	966	$	665	$	2,206	$	1,827

(a) Beef segment results for the nine months ended July 3, 2021 included a $55 million gain from the recovery of cattle inventory from a cattle supplier that misappropriated Company funds as compared to results for the three and nine months ended June 27, 2020, which included a $2 million loss and $56 million loss, respectively, as further described in Note 1: Accounting Policies.

(b) Chicken segment results for the three and nine months ended July 3, 2021 included charges of $306 million and $626 million, respectively, related to the recognition of legal contingency accruals, of which $225 million and $545 million, respectively, was recorded as a reduction to Sales pursuant to FASB guidance related to accounting for revenue from contracts with customers and $81 million was recorded as an increase to Cost of Sales in the three and nine months ended July 3, 2021.

(c) International/Other results included a $4 million loss and a $23 million loss related to the relocation of a production facility in China for the three and nine months ended July 3, 2021, respectively.

The following tables further disaggregate our sales to customers by major distribution channels (in millions):

	Three months ended July 3, 2021
	Retail(a)		Foodservice(b)		International(c)		Industrial and Other(d)		Intersegment		Total
Beef	$	2,365	$	1,264	$	704	$	491	$	130	$	4,954
Pork	500		141		324		419		331		1,715
Chicken	1,500		1,492		197		270		17		3,476
Prepared Foods	1,359		877		37		50		—		2,323
International/Other	—		—		488		—		—		488
Intersegment	—		—		—		—		(478)		(478)
Total	$	5,724	$	3,774	$	1,750	$	1,230	$	—	$	12,478

	Three months ended June 27, 2020
	Retail(a)		Foodservice(b)		International(c)		Industrial and Other(d)		Intersegment		Total
Beef	$	2,192	$	650	$	444	$	279	$	88	$	3,653
Pork	408		85		214		215		193		1,115
Chicken	1,481		1,046		151		420		14		3,112
Prepared Foods	1,322		651		24		38		—		2,035
International/Other	—		—		402		—		—		402
Intersegment	—		—		—		—		(295)		(295)
Total	$	5,403	$	2,432	$	1,235	$	952	$	—	$	10,022

	Nine months ended July 3, 2021
	Retail(a)		Foodservice(b)		International(c)		Industrial and Other(d)		Intersegment		Total
Beef	$	6,535	$	3,030	$	1,915	$	1,182	$	325	$	12,987
Pork	1,342		334		913		1,122		920		4,631
Chicken	4,512		4,033		515		761		39		9,860
Prepared Foods	3,968		2,404		98		130		—		6,600
International/Other	—		—		1,444		—		—		1,444
Intersegment	—		—		—		—		(1,284)		(1,284)
Total	$	16,357	$	9,801	$	4,885	$	3,195	$	—	$	34,238

	Nine months ended June 27, 2020
	Retail(a)		Foodservice(b)		International(c)		Industrial and Other(d)		Intersegment		Total
Beef	$	5,956	$	2,699	$	1,563	$	967	$	285	$	11,470
Pork	1,191		301		768		900		600		3,760
Chicken	4,420		3,592		479		1,269		41		9,801
Prepared Foods	3,758		2,275		95		127		—		6,255
International/Other	—		—		1,365		—		—		1,365
Intersegment	—		—		—		—		(926)		(926)
Total	$	15,325	$	8,867	$	4,270	$	3,263	$	—	$	31,725

(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 for 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 Retail, Foodservice or International categories. For the three and nine months ended July 3, 2021, the Chicken segment included a $225 million and $545 million reduction in Other, respectively, due to the recognition of legal contingency accruals.