Emerging growth company ¨ |
(d) | Exhibits |
TYSON FOODS, INC. | |||
Date: November 13, 2017 | By: | /s/ Dennis Leatherby | |
Name: | Dennis Leatherby | ||
Title: | Executive Vice President and | ||
Chief Financial Officer |
(in millions, except per share data) | Fourth Quarter | Twelve Months Ended | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Sales | $ | 10,145 | $ | 9,156 | $ | 38,260 | $ | 36,881 | |||||||
Operating Income | 681 | 586 | 2,931 | 2,833 | |||||||||||
Net Income | 395 | 392 | 1,778 | 1,772 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 1 | 1 | 4 | 4 | |||||||||||
Net Income Attributable to Tyson | $ | 394 | $ | 391 | $ | 1,774 | $ | 1,768 | |||||||
Net Income Per Share Attributable to Tyson | $ | 1.07 | $ | 1.03 | $ | 4.79 | $ | 4.53 | |||||||
Adjusted¹ Operating Income | $ | 902 | $ | 586 | $ | 3,263 | $ | 2,833 | |||||||
Adjusted¹ Net Income Per Share Attributable to Tyson | $ | 1.43 | $ | 0.96 | $ | 5.31 | $ | 4.39 |
• | Record GAAP EPS of $4.79, up 6% from last year; Record Adjusted EPS of $5.31, up 21% from last year |
• | Record GAAP operating income of $2,931 million; Record Adjusted operating income of $3,263 million |
• | Total company GAAP operating margin at 7.7%; Record Adjusted operating margin at 8.5% |
• | Operating cash flow of $2.6 billion |
• | GAAP EPS of $1.07, up 4% from last year; Adjusted EPS of $1.43, up 49% from last year |
• | GAAP operating income of $681 million; Adjusted operating income of $902 million |
• | Total company GAAP operating margin at 6.7%; Adjusted operating margin at 8.9% |
• | Reduced debt over $600 million |
• | Adjusted1 EPS guidance of $5.70-$5.85, representing an approximate 7-10% increase from fiscal 2017 Adjusted EPS |
Sales | ||||||||||||||||||||
(for the fourth quarter and twelve months ended September 30, 2017 and October 1, 2016) | ||||||||||||||||||||
Fourth Quarter | Twelve Months Ended | |||||||||||||||||||
Volume | Avg. Price | Volume | Avg. Price | |||||||||||||||||
2017 | 2016 | Change | Change | 2017 | 2016 | Change | Change | |||||||||||||
Beef | $ | 3,808 | $ | 3,477 | 3.3 | % | 6.0 | % | $ | 14,823 | $ | 14,513 | 1.8 | % | 0.4 | % | ||||
Pork | 1,362 | 1,235 | (1.2 | )% | 11.7 | % | 5,238 | 4,909 | 0.6 | % | 6.1 | % | ||||||||
Chicken | 3,035 | 2,811 | 4.1 | % | 3.7 | % | 11,409 | 10,927 | 1.2 | % | 3.1 | % | ||||||||
Prepared Foods | 2,263 | 1,837 | 9.5 | % | 12.5 | % | 7,853 | 7,346 | 3.2 | % | 3.6 | % | ||||||||
Other | 92 | 96 | (2.7 | )% | (1.7 | )% | 349 | 380 | (4.9 | )% | (3.4 | )% | ||||||||
Intersegment Sales | (415 | ) | (300 | ) | n/a | n/a | (1,412 | ) | (1,194 | ) | n/a | n/a | ||||||||
Total | $ | 10,145 | $ | 9,156 | 3.2 | % | 7.3 | % | $ | 38,260 | $ | 36,881 | 1.0 | % | 2.7 | % |
Operating Income (Loss) | ||||||||||||||||||||
(for the fourth quarter and twelve months ended September 30, 2017 and October 1, 2016) | ||||||||||||||||||||
Fourth Quarter | Twelve Months Ended | |||||||||||||||||||
Operating Margin | Operating Margin | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Beef | $ | 305 | $ | 139 | 8.0 | % | 4.0 | % | $ | 877 | $ | 347 | 5.9 | % | 2.4 | % | ||||
Pork | 121 | 108 | 8.9 | % | 8.7 | % | 645 | 528 | 12.3 | % | 10.8 | % | ||||||||
Chicken | 263 | 220 | 8.7 | % | 7.8 | % | 1,053 | 1,305 | 9.2 | % | 11.9 | % | ||||||||
Prepared Foods | 11 | 133 | 0.5 | % | 7.2 | % | 462 | 734 | 5.9 | % | 10.0 | % | ||||||||
Other | (19 | ) | (14 | ) | n/a | n/a | (106 | ) | (81 | ) | n/a | n/a | ||||||||
Total | $ | 681 | $ | 586 | 6.7 | % | 6.4 | % | $ | 2,931 | $ | 2,833 | 7.7 | % | 7.7 | % |
Adjusted Operating Income (Loss) (Non-GAAP) | ||||||||||||||||||||
(for the fourth quarter and twelve months ended September 30, 2017 and October 1, 2016) | ||||||||||||||||||||
Fourth Quarter | Twelve Months Ended | |||||||||||||||||||
Adjusted Operating Margin (Non-GAAP) | Adjusted Operating Margin (Non-GAAP) | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Beef | $ | 313 | $ | 139 | 8.2 | % | 4.0 | % | $ | 885 | $ | 347 | 6.0 | % | 2.4 | % | ||||
Pork | 124 | 108 | 9.1 | % | 8.7 | % | 648 | 528 | 12.4 | % | 10.8 | % | ||||||||
Chicken | 322 | 220 | 10.6 | % | 7.8 | % | 1,117 | 1,305 | 9.8 | % | 11.9 | % | ||||||||
Prepared Foods | 152 | 133 | 6.7 | % | 7.2 | % | 675 | 734 | 8.6 | % | 10.0 | % | ||||||||
Other | (9 | ) | (14 | ) | n/a | n/a | (62 | ) | (81 | ) | n/a | n/a | ||||||||
Total | $ | 902 | $ | 586 | 8.9 | % | 6.4 | % | $ | 3,263 | $ | 2,833 | 8.5 | % | 7.7 | % |
• | Beef - Sales volume increased due to improved availability of cattle supply, stronger domestic demand for our beef products and increased exports. Average sales price increased as demand for our beef products and strong exports outpaced the increase in live cattle supplies. Operating income increased due to more favorable market conditions as we maximized our revenues relative to the decline in live fed cattle costs, partially offset by higher operating costs. |
• | Pork - Sales volume increased for fiscal 2017 due to strong demand for our pork products and increased exports. Sales volume decreased in the fourth quarter of fiscal 2017 as a result of balancing our supply with customer demand. Average sales price increased as demand for our pork products and strong exports outpaced the increase in live hog supplies. Operating income increased as we maximized our revenues relative to the live hog markets, partially attributable to stronger export markets and operational and mix performance, which were partially offset by higher operating costs. |
• | Chicken - Sales volume was up due to better demand for our chicken products along with the incremental volume from the AdvancePierre acquisition. Average sales price increased due to sales mix changes. Operating income for fiscal 2017 was below prior year record results due to higher operating costs, which included increased compensation and benefit integration expense of $41 million, $17 million of incremental net costs attributable to two plant fires, in addition to restructuring and related charges of $56 million in the fourth quarter of fiscal 2017. Operating income increased in the fourth quarter of fiscal 2017, despite the $56 million of restructuring and related charges, due to improved operational execution and lower feed ingredient costs. Feed costs decreased $65 million and $80 million for the fourth quarter and fiscal 2017, respectively. |
• | Prepared Foods - Sales volume increased for fiscal 2017 due to improved demand for our retail products and incremental volumes from the AdvancePierre acquisition, partially offset by declines in foodservice. Sales volume increased in the fourth quarter of fiscal 2017 primarily as the result of incremental volumes from the AdvancePierre acquisition, partially offset by declines in foodservice. Average sales price increased due to better product mix which was positively impacted by the acquisition of AdvancePierre as well as higher input costs of $50 million for fiscal 2017 and $105 million in the fourth quarter of fiscal 2017. Operating income for fiscal 2017 decreased due to impairments of $52 million related to our San Diego operation and of $45 million related to the expected sale of a non-protein business, $30 million of compensation and benefit integration expense, $34 million related to AdvancePierre purchase accounting and acquisition related costs, $82 million of restructuring and related charges, in addition to higher operating costs at some of our facilities. Operating income for the fourth quarter of fiscal 2017 decreased due to an impairment of $45 million related to the expected sale of a non-protein business, $82 million of restructuring and related charges, $14 million related to AdvancePierre purchase accounting and acquisition related costs and higher operating costs at some of our facilities. Additionally, Prepared Foods operating income was positively impacted by $137 million in synergies, of which $18 million was incremental synergies in the fourth quarter of fiscal 2017. For the 12 months of fiscal 2017, Prepared Foods operating income was positively impacted by $538 million in synergies, of which $97 million was incremental synergies in fiscal 2017 above the $156 million of synergies realized in fiscal 2016 and $285 million realized in fiscal 2015. The positive impact of these synergies to operating income was partially offset with investments in innovation, new product launches and supporting the growth of our brands. |
• | Sale of Non-Protein Businesses – On April 24, 2017, we announced our intent to sell three non-protein businesses, Sara Lee® Frozen Bakery, Kettle and Van’s®, which are all a part of our Prepared Foods segment, as part of our strategic focus on protein-packed brands. The revenues from these businesses totaled approximately $650 million for fiscal 2017 and the businesses had a net carrying value of $803 million at September 30, 2017. We anticipate we will close the transactions by the end of calendar 2017, or early calendar 2018, and expect to record a net pretax gain as a result of the sale of these businesses. We have excluded these businesses' expected results from our fiscal 2018 outlook. |
• | Beef – We expect industry fed cattle supplies to increase approximately 1-2% in fiscal 2018 as compared to fiscal 2017. We expect ample supplies in regions where we operate our plants. We believe our Beef segment's adjusted operating margin in fiscal 2018 should be above 5%. |
• | Pork – We expect industry hog supplies to increase approximately 3% in fiscal 2018 as compared to fiscal 2017. For fiscal 2018, our Pork segment's adjusted operating margin should be above 9%. |
• | Chicken – AdvancePierre contributed approximately $100 million of revenue in fiscal 2017, and we expect incremental revenue of approximately $250 million in fiscal 2018 for a total of approximately $350 million in the first full fiscal year as part of our operation. We expect to capture Financial Fitness Program net savings in excess of $90 million in fiscal 2018, which is a combination of AdvancePierre net synergies and reduction of non-value added costs. USDA projects an increase in chicken production of approximately 2% in fiscal 2018 as compared to fiscal 2017. Based on current futures prices, we expect similar feed costs in fiscal 2018 compared to fiscal 2017. For fiscal 2018, we believe our Chicken segment sales will grow with around 3% volume growth, and adjusted operating margins should improve to around 11%. |
• | Prepared Foods – AdvancePierre contributed approximately $425 million of revenue in fiscal 2017, and we expect incremental revenue of approximately $950 million in fiscal 2018 for a total of approximately $1.4 billion in the first full fiscal year as part of our operation. We expect to capture Financial Fitness Program net savings in excess of $100 million in fiscal 2018, which is a combination of AdvancePierre net synergies and reduction of non-value added costs. We currently expect input costs to be flat for fiscal 2018 as compared to fiscal 2017. For fiscal 2018, we expect our Prepared Foods segment sales to grow and adjusted operating margin should be between 11-12%. We will continue to evaluate the range as we close the sale of the three non-protein businesses and further integrate AdvancePierre. |
• | Other – Other includes our foreign operations related to raising and processing live chickens in China and India, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC. We expect Other operating loss should be approximately $40 million in fiscal 2018, excluding the impact of merger and integration expense from the acquisition of AdvancePierre and restructuring and related costs. |
• | Sales – We expect fiscal 2018 sales to grow approximately 7% to approximately $41 billion which excludes the revenue of the three non-protein businesses held for sale referenced above. The expected increase in fiscal 2018 sales is attributed to incremental AdvancePierre sales of $1.2 billion, an increase in sales volume in our legacy businesses excluding the impact of sales from the three non-protein businesses, and an increase in pricing predominantly in our Chicken segment. |
• | Capital Expenditures – We expect capital expenditures to approximate $1.4 billion for fiscal 2018. Capital expenditures will include spending for production growth, safety, animal well-being, infrastructure replacements and upgrades, and operational improvements that will result in production and labor efficiencies, yield improvements and sales channel flexibility. |
• | Net Interest Expense – We expect net interest expense to approximate $325 million for fiscal 2018, which includes estimates regarding the timing and net proceeds from the divestiture of our Sara Lee® Frozen Bakery, Kettle and Van’s® businesses as we intend to use the net sales proceeds to pay down debt. |
• | Liquidity – We expect total liquidity, which was approximately $1.0 billion at September 30, 2017, to remain in line with our minimum liquidity target of $1.0 billion. |
• | Share Repurchases – We currently do not plan to repurchase shares, other than to fund obligations under equity compensation programs, until we reach our net debt to EBITDA target of around 2x. We anticipate reaching this goal by the third quarter of fiscal 2018. |
• | Dividends– On November 10, 2017, the Board of Directors increased the quarterly dividend previously declared on August 10, 2017, to $0.30 per share on our Class A common stock and $0.27 per share on our Class B common stock. The increased quarterly dividend is payable on December 15, 2017, to shareholders of record at the close of business on December 1, 2017. The Board also declared a quarterly dividend of $0.30 per share on our Class A common stock and $0.27 per share on our Class B common stock, payable on March 15, 2018, to shareholders of record at the close of business on March 1, 2018. We anticipate the remaining quarterly dividends in fiscal 2018 will be $0.30 and $0.27 per share of our Class A and Class B stock, respectively. This results in an annual dividend rate in fiscal 2018 of $1.20 for Class A shares and $1.08 for Class B shares, or a 33% increase compared to the fiscal 2017 annual dividend rate. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | ||||||||||||
Sales | $ | 10,145 | $ | 9,156 | $ | 38,260 | $ | 36,881 | |||||||
Cost of Sales | 8,794 | 8,067 | 33,177 | 32,184 | |||||||||||
Gross Profit | 1,351 | 1,089 | 5,083 | 4,697 | |||||||||||
Selling, General and Administrative | 670 | 503 | 2,152 | 1,864 | |||||||||||
Operating Income | 681 | 586 | 2,931 | 2,833 | |||||||||||
Other (Income) Expense: | |||||||||||||||
Interest income | (2 | ) | (1 | ) | (7 | ) | (6 | ) | |||||||
Interest expense | 94 | 58 | 279 | 249 | |||||||||||
Other, net | 9 | (2 | ) | 31 | (8 | ) | |||||||||
Total Other (Income) Expense | 101 | 55 | 303 | 235 | |||||||||||
Income before Income Taxes | 580 | 531 | 2,628 | 2,598 | |||||||||||
Income Tax Expense | 185 | 139 | 850 | 826 | |||||||||||
Net Income | 395 | 392 | 1,778 | 1,772 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 1 | 1 | 4 | 4 | |||||||||||
Net Income Attributable to Tyson | $ | 394 | $ | 391 | $ | 1,774 | $ | 1,768 | |||||||
Weighted Average Shares Outstanding: | |||||||||||||||
Class A Basic | 296 | 305 | 296 | 315 | |||||||||||
Class B Basic | 70 | 70 | 70 | 70 | |||||||||||
Diluted | 369 | 381 | 370 | 390 | |||||||||||
Net Income Per Share Attributable to Tyson: | |||||||||||||||
Class A Basic | $ | 1.10 | $ | 1.06 | $ | 4.94 | $ | 4.67 | |||||||
Class B Basic | $ | 0.98 | $ | 0.96 | $ | 4.45 | $ | 4.24 | |||||||
Diluted | $ | 1.07 | $ | 1.03 | $ | 4.79 | $ | 4.53 | |||||||
Dividends Declared Per Share: | |||||||||||||||
Class A | $ | 0.225 | $ | 0.150 | $ | 0.975 | $ | 0.650 | |||||||
Class B | $ | 0.203 | $ | 0.135 | $ | 0.878 | $ | 0.585 | |||||||
Sales Growth | 10.8 | % | 3.7 | % | |||||||||||
Margins: (Percent of Sales) | |||||||||||||||
Gross Profit | 13.3 | % | 11.9 | % | 13.3 | % | 12.7 | % | |||||||
Operating Income | 6.7 | % | 6.4 | % | 7.7 | % | 7.7 | % | |||||||
Net Income Attributable to Tyson | 3.9 | % | 4.3 | % | 4.6 | % | 4.8 | % | |||||||
Effective Tax Rate | 31.9 | % | 26.1 | % | 32.3 | % | 31.8 | % |
September 30, 2017 | October 1, 2016 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 318 | $ | 349 | |||
Accounts receivable, net | 1,675 | 1,542 | |||||
Inventories | 3,239 | 2,732 | |||||
Other current assets | 219 | 265 | |||||
Assets held for sale | 807 | — | |||||
Total Current Assets | 6,258 | 4,888 | |||||
Net Property, Plant and Equipment | 5,568 | 5,170 | |||||
Goodwill | 9,324 | 6,669 | |||||
Intangible Assets, net | 6,243 | 5,084 | |||||
Other Assets | 673 | 562 | |||||
Total Assets | $ | 28,066 | $ | 22,373 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities: | |||||||
Current debt | $ | 906 | $ | 79 | |||
Accounts payable | 1,698 | 1,511 | |||||
Other current liabilities | 1,424 | 1,172 | |||||
Liabilities held for sale | 4 | — | |||||
Total Current Liabilities | 4,032 | 2,762 | |||||
Long-Term Debt | 9,297 | 6,200 | |||||
Deferred Income Taxes | 2,979 | 2,545 | |||||
Other Liabilities | 1,199 | 1,242 | |||||
Total Tyson Shareholders’ Equity | 10,541 | 9,608 | |||||
Noncontrolling Interests | 18 | 16 | |||||
Total Shareholders’ Equity | 10,559 | 9,624 | |||||
Total Liabilities and Shareholders’ Equity | $ | 28,066 | $ | 22,373 |
Twelve Months Ended | |||||||
September 30, 2017 | October 1, 2016 | ||||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 1,778 | $ | 1,772 | |||
Depreciation and amortization | 761 | 705 | |||||
Deferred income taxes | (39 | ) | 84 | ||||
Impairment of assets | 214 | 45 | |||||
Share-based compensation expense | 92 | 81 | |||||
Other, net | (57 | ) | (34 | ) | |||
Net changes in operating assets and liabilities | (150 | ) | 63 | ||||
Cash Provided by Operating Activities | 2,599 | 2,716 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to property, plant and equipment | (1,069 | ) | (695 | ) | |||
Purchases of marketable securities | (79 | ) | (46 | ) | |||
Proceeds from sale of marketable securities | 61 | 37 | |||||
Acquisition, net of cash acquired | (3,081 | ) | — | ||||
Other, net | 4 | 20 | |||||
Cash Used for Investing Activities | (4,164 | ) | (684 | ) | |||
Cash Flows From Financing Activities: | |||||||
Payments on debt | (3,159 | ) | (714 | ) | |||
Proceeds from issuance of long-term debt | 5,444 | 1 | |||||
Borrowings on revolving credit facility | 1,810 | 1,065 | |||||
Payments on revolving credit facility | (2,110 | ) | (765 | ) | |||
Proceeds from issuance of commercial paper | 8,138 | — | |||||
Repayments of commercial paper | (7,360 | ) | — | ||||
Payment of AdvancePierre TRA liability | (223 | ) | — | ||||
Purchases of Tyson Class A common stock | (860 | ) | (1,944 | ) | |||
Dividends | (319 | ) | (216 | ) | |||
Stock options exercised | 154 | 128 | |||||
Other, net | 15 | 68 | |||||
Cash Provided by (Used for) Financing Activities | 1,530 | (2,377 | ) | ||||
Effect of Exchange Rate Changes on Cash | 4 | 6 | |||||
Decrease in Cash and Cash Equivalents | (31 | ) | (339 | ) | |||
Cash and Cash Equivalents at Beginning of Year | 349 | 688 | |||||
Cash and Cash Equivalents at End of Period | $ | 318 | $ | 349 |
Twelve Months Ended | |||||||
September 30, 2017 | October 1, 2016 | ||||||
Net income | $ | 1,778 | $ | 1,772 | |||
Less: Interest income | (7 | ) | (6 | ) | |||
Add: Interest expense | 279 | 249 | |||||
Add: Income tax expense | 850 | 826 | |||||
Add: Depreciation | 642 | 617 | |||||
Add: Amortization (a) | 106 | 80 | |||||
EBITDA | $ | 3,648 | $ | 3,538 | |||
Adjustments to EBITDA: | |||||||
Add: AdvancePierre purchase accounting and acquisition related costs (b) | $ | 103 | $ | — | |||
Add: Impairment related to the expected sale of a non-protein business | 45 | — | |||||
Add: Restructuring and related charges | 150 | — | |||||
Add: San Diego Prepared Foods operation impairment | 52 | — | |||||
Total Adjusted EBITDA | $ | 3,998 | $ | 3,538 | |||
Pro forma Adjustments to EBITDA: | |||||||
Add: AdvancePierre adjusted EBITDA (prior to acquisition) (c) | $ | 193 | n/a | ||||
Total Pro forma adjusted EBITDA | $ | 4,191 | $ | 3,538 | |||
Total gross debt | $ | 10,203 | $ | 6,279 | |||
Less: Cash and cash equivalents | (318 | ) | (349 | ) | |||
Less: Short-term investments | (3 | ) | (4 | ) | |||
Total net debt | $ | 9,882 | $ | 5,926 | |||
Ratio Calculations: | |||||||
Gross debt/EBITDA | 2.8x | 1.8x | |||||
Net debt/EBITDA | 2.7x | 1.7x | |||||
Gross debt/Adjusted EBITDA | 2.6x | 1.8x | |||||
Net debt/Adjusted EBITDA | 2.5x | 1.7x | |||||
Gross debt/Pro forma Adjusted EBITDA | 2.4x | n/a | |||||
Net debt/Pro forma Adjusted EBITDA | 2.4x | n/a |
(a) | Excludes the amortization of debt issuance and debt discount expense of $13 million and $8 million for the twelve months ended September 30, 2017, and October 1, 2016, respectively, as it is included in interest expense. |
(b) | AdvancePierre acquisition and integration costs includes $36 million of purchase accounting adjustments, $49 million acquisition related costs and $18 million of acquisition bridge financing fees. |
(c) | Represents AdvancePierre's pre-acquisition Adjusted EBITDA, for the approximate eight months ended prior to the June 7, 2017, closing of the acquisition. These amounts are added to our Adjusted EBITDA for the twelve months ended September 30, 2017, in order for Net debt to Adjusted EBITDA to include a full twelve months of AdvancePierre results on a pro forma basis for the twelve months ended September 30, 2017. The pro forma adjusted EBITDA was derived from AdvancePierre’s EBITDA from its historical unaudited financial statements for the three months ended December 31, 2016, and April 1, 2017, as filed with the Securities and Exchange Commission, as well as AdvancePierre management unaudited financial information for the period from April 2, 2017, through the June 7, 2017, closing of the acquisition. These amounts were adjusted to remove the impact of its merger, acquisition and public filing expenses as well as related expenses including consultant fees, accelerated stock-based compensation and other deal costs. We believe this pro forma presentation is useful and helps management, investors, and rating agencies enhance their understanding of our financial performance and to better highlight future financial trends on a comparable basis with AdvancePierre results included for the twelve months ended September 30, 2017, given the significance of the acquisition to our overall results. |
Fourth Quarter | Twelve Months Ended | ||||||||||||||||||||||||||||||
Pretax Impact | EPS Impact | Pretax Impact | EPS Impact | ||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
Reported net income per share attributable to Tyson | $ | 1.07 | $ | 1.03 | $ | 4.79 | $ | 4.53 | |||||||||||||||||||||||
Add: AdvancePierre purchase accounting and acquisition related costs (a) | $ | 26 | $ | — | 0.04 | — | $ | 103 | $ | — | 0.18 | — | |||||||||||||||||||
Add: Restructuring and related charges | $ | 150 | $ | — | 0.26 | — | $ | 150 | $ | — | 0.26 | — | |||||||||||||||||||
Add: San Diego Prepared Foods operation impairment | $ | — | $ | — | — | — | $ | 52 | $ | — | 0.09 | — | |||||||||||||||||||
Add/Less: Impairment net of tax benefit related to the expected sale of a non-protein business (b) | $ | 45 | $ | — | 0.06 | — | $ | 45 | $ | — | (0.01 | ) | — | ||||||||||||||||||
Less: Recognition of previously unrecognized tax benefit and audit settlement | $ | — | $ | — | — | (0.07 | ) | $ | — | $ | — | — | (0.14 | ) | |||||||||||||||||
Adjusted net income per share attributable to Tyson | $ | 1.43 | $ | 0.96 | $ | 5.31 | $ | 4.39 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the fourth quarter ended September 30, 2017) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 305 | $ | 121 | $ | 263 | $ | 11 | $ | (19 | ) | $ | 681 | |||||
Add: AdvancePierre purchase accounting and acquisition related costs (a) | — | — | 3 | 14 | 9 | 26 | ||||||||||||
Add: Impairment related to the expected sale of a non-protein business | — | — | — | 45 | — | 45 | ||||||||||||
Add: Restructuring and related charges | 8 | 3 | 56 | 82 | 1 | 150 | ||||||||||||
Adjusted operating income (loss) | $ | 313 | $ | 124 | $ | 322 | $ | 152 | $ | (9 | ) | $ | 902 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the twelve months ended September 30, 2017) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 877 | $ | 645 | $ | 1,053 | $ | 462 | $ | (106 | ) | $ | 2,931 | |||||
Add: AdvancePierre purchase accounting and acquisition related costs (b) | — | — | 8 | 34 | 43 | 85 | ||||||||||||
Add: Impairment related to the expected sale of a non-protein business | — | — | — | 45 | — | 45 | ||||||||||||
Add: Restructuring and related charges | 8 | 3 | 56 | 82 | 1 | 150 | ||||||||||||
Add: San Diego Prepared Foods operation impairment | — | — | — | 52 | — | 52 | ||||||||||||
Adjusted operating income (loss) | $ | 885 | $ | 648 | $ | 1,117 | $ | 675 | $ | (62 | ) | $ | 3,263 |