Segment Reporting

6 Months Ended

Apr. 02, 2022

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				Six Months Ended
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
Sales:
Beef	$	5,034	$	4,046	$	10,036	$	8,033
Pork	1,565		1,477		3,191		2,916
Chicken	4,086		3,553		7,976		6,384
Prepared Foods	2,393		2,164		4,726		4,277
International/Other	565		487		1,115		956
Intersegment	(526)		(427)		(994)		(806)
Total Sales	$	13,117	$	11,300	$	26,050	$	21,760

	Three Months Ended				Six Months Ended
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
Operating Income (Loss):
Beef(a)	$	638	$	445	$	1,594	$	973
Pork	59		67		223		183
Chicken(b)	198		6		338		(210)
Prepared Foods	263		217		449		483
International/Other(c)	(2)		(15)		7		(4)
Total Operating Income	1,156		720		2,611		1,425
Total Other (Income) Expense	69		96		114		185
Income before Income Taxes	$	1,087	$	624	$	2,497	$	1,240

(a) Beef segment results for the six months ended April 3, 2021 included a $55 million gain from the recovery of cattle inventory from a cattle supplier that misappropriated Company funds.

(b) Chicken segment results for the three months ended April 2, 2022 included $5 million of costs related to a fire at one of our production facilities, net of insurance proceeds. Chicken segment results for the six months ended April 2, 2022 included $18 million of insurance proceeds, net of costs incurred, recognized in Cost of Sales. Additionally, Chicken segment results for the six months ended April 3, 2021 included a $320 million charge related to the recognition of a legal contingency accrual. The accrual was recorded as a reduction to Sales pursuant to FASB guidance related to accounting for revenue from contracts with customers.

(c) International/Other results for the three and six months ended April 3, 2021 included a $19 million loss related to the relocation of a production facility in China.

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

	Three months ended April 2, 2022
	Retail(a)		Foodservice(b)		International(c)		Industrial and Other(d)		Intersegment		Total
Beef	$	2,213	$	1,264	$	808	$	603	$	146	$	5,034
Pork	430		122		267		401		345		1,565
Chicken	1,699		1,590		277		485		35		4,086
Prepared Foods	1,410		897		44		42		—		2,393
International/Other	—		—		565		—		—		565
Intersegment	—		—		—		—		(526)		(526)
Total	$	5,752	$	3,873	$	1,961	$	1,531	$	—	$	13,117

	Three months ended April 3, 2021
	Retail(a)		Foodservice(b)		International(c)		Industrial and Other(d)		Intersegment		Total
Beef	$	2,036	$	945	$	593	$	368	$	104	$	4,046
Pork	410		101		296		361		309		1,477
Chicken	1,576		1,356		166		441		14		3,553
Prepared Foods	1,306		787		30		41		—		2,164
International/Other	—		—		487		—		—		487
Intersegment	—		—		—		—		(427)		(427)
Total	$	5,328	$	3,189	$	1,572	$	1,211	$	—	$	11,300

	Six months ended April 2, 2022
	Retail(a)		Foodservice(b)		International(c)		Industrial and Other(d)		Intersegment		Total
Beef	$	4,431	$	2,500	$	1,664	$	1,165	$	276	$	10,036
Pork	908		258		571		799		655		3,191
Chicken	3,332		3,150		498		933		63		7,976
Prepared Foods	2,735		1,826		90		75		—		4,726
International/Other	—		—		1,115		—		—		1,115
Intersegment	—		—		—		—		(994)		(994)
Total	$	11,406	$	7,734	$	3,938	$	2,972	$	—	$	26,050

	Six months ended April 3, 2021
	Retail(a)		Foodservice(b)		International(c)		Industrial and Other(d)		Intersegment		Total
Beef	$	4,170	$	1,766	$	1,211	$	691	$	195	$	8,033
Pork	842		193		589		703		589		2,916
Chicken	3,012		2,541		318		491		22		6,384
Prepared Foods	2,609		1,527		61		80		—		4,277
International/Other	—		—		956		—		—		956
Intersegment	—		—		—		—		(806)		(806)
Total	$	10,633	$	6,027	$	3,135	$	1,965	$	—	$	21,760

(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 six months ended April 3, 2021, the Chicken segment included a $320 million reduction in Other due to the recognition of a legal contingency accrual.