Changes In Accounting Principles

12 Months Ended

Oct. 01, 2011

Changes In Accounting Principles [Abstract]

Changes In Accounting Principles

NOTE 2: CHANGES IN ACCOUNTING PRINCIPLES

In December 2007, the FASB issued guidance to establish accounting and reporting standards for a noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This guidance clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity and may be reported as equity in the consolidated financial statements, rather than in the liability or mezzanine section between liabilities and equity. This guidance also requires consolidated net income be reported at amounts that include the net income attributable to both Tyson (the parent) and the noncontrolling interest. We adopted the presentation and disclosure requirements retrospectively at the beginning of fiscal 2010. Accordingly, "attributable to Tyson" refers to operating results exclusive of any noncontrolling interest. In conjunction with this adoption, we also adopted guidance applicable for all noncontrolling interests in which we are or may be required to repurchase an interest in a consolidated subsidiary from the noncontrolling interest holder under a put option or other contractual redemption requirement. Because we had certain redeemable noncontrolling interests, noncontrolling interests were presented in both the equity section and the mezzanine section of the balance sheet between liabilities and equity.

In May 2008, the FASB issued guidance which specifies issuers of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) should separately account for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. The amount allocated to the equity component represents a discount to the debt, which is amortized into interest expense using the effective interest method over the life of the debt. We adopted this guidance in the first quarter of fiscal 2010 and applied it retrospectively. Upon retrospective adoption, our effective interest rate on our 3.25% Convertible Senior Notes due 2013 issued in September 2008 was determined to be 8.26%, which resulted in the recognition of a $92 million discount to these notes with the offsetting after tax amount of $56 million recorded to capital in excess of par value. This discount is being accreted over the five-year term of the convertible notes at the effective interest rate.

The following table presents the effects of the retrospective application of new accounting guidance on our consolidated financial statements (in millions, except per share data):

	Previously Reported		Adjustments: Convertible Debt		Adjustments: Noncontrolling Interest		As Adjusted
October 3, 2009 – Income Statement:
Interest Expense		$310		$17		$0		$327
Income (Loss) from Continuing Operations before Income Taxes		(526)		(17)		0		(543)
Income Tax Expense		14		(7)		0		7
Income (Loss) from Continuing Operations		(540)		(10)		0		(550)
Minority Interest		(4)		0		4		0
Net Income (Loss)		(537)		(10)		(4)		(551)
Less: Net Loss Attributable to Noncontrolling Interest		0		0		(4)		(4)
Net Income (Loss) Attributable to Tyson		0		0		0		(547)
Net Income (Loss) Per Share from Continuing Operations Attributable to Tyson:
Class A Basic		$(1.47)		$(0.02)		$0.00		$(1.49)
Class B Basic		$(1.32)		$(0.03)		$0.00		$(1.35)
Diluted		$(1.44)		$(0.03)		$0.00		$(1.47)
Net Income (Loss) Per Share Attributable to Tyson:
Class A Basic		$(1.47)		$(0.02)		$0.00		$(1.49)
Class B Basic		$(1.32)		$(0.03)		$0.00		$(1.35)
Diluted		$(1.44)		$(0.03)		$0.00		$(1.47)

In December 2008, the FASB issued guidance requiring additional disclosures about assets held in an employer's defined benefit pension or other postretirement plan. This guidance is effective for fiscal years ending after December 15, 2009, with early adoption permitted. We adopted the disclosure requirements in fiscal 2010. See Note 14: Pensions and Other Postretirement Benefits for required disclosures.

In June 2009, the FASB issued guidance removing the concept of a qualifying special-purpose entity. This guidance also clarifies the requirements for isolation and limitations on portions of financial assets eligible for sale accounting. This guidance is effective for fiscal years beginning after November 15, 2009. We adopted this guidance at the beginning of fiscal year 2011. The adoption did not have a significant impact on our consolidated financial statements.

In June 2009 and December 2009, the FASB issued guidance requiring an analysis to determine whether a variable interest gives the entity a controlling financial interest in a variable interest entity. This guidance requires an ongoing assessment and eliminates the quantitative approach previously required for determining whether an entity is the primary beneficiary. This guidance is effective for fiscal years beginning after November 15, 2009. We adopted this guidance at the beginning of fiscal year 2011. The adoption did not have a significant impact on our consolidated financial statements.