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Restructuring and Related Activities
 12 Months Ended
Sep. 27, 2025
Restructuring and Related Activities [Abstract]  
Restructuring and Related Charges RESTRUCTURING AND RELATED CHARGES
Network Optimization Plan
During fiscal 2025, the Company initiated a network optimization plan to optimize our global operations and logistics network. We are reporting on actions approved through the end of fiscal 2025 as we are currently unable to make an estimate of the cost of the entire network optimization plan. We anticipate recognizing total pretax charges of $86 million related to the actions approved through September 27, 2025, which include $99 million of charges that have resulted or will result in cash outflows and $94 million of non-cash charges, partially offset by $107 million gain recognized from the sale of storage facilities. Additionally, we have received $252 million in proceeds associated with the sale of storage facilities during fiscal 2025. We expect to incur costs related to the network optimization plan over a multi-year period and anticipate additional charges in the future as further actions are approved.
In fiscal 2025, we recognized net charges of $45 million related to the network optimization plan, which included a gain of $107 million from the sale of storage facilities. The charges primarily included the closure of two facilities in the Prepared Foods segment, a non-harvesting facility closure in the Beef segment, and asset write-offs in the Chicken and Prepared Foods segments and International/Other, as well as severance and related costs and contract and lease termination costs. Additionally, in fiscal 2025, we executed various long-term cold storage service agreements and sold multiple Tyson-owned and operated storage facilities which primarily support our Chicken and Prepared Foods segments. As part of the sale agreements, we leased back the storage facilities for various periods ranging from approximately one to three years, and entered into long-term cold storage service agreements associated with several fully automated cold storage facilities. We expect this will reduce network complexity, streamline inventory flow, simplify processes and reduce operating expenses.
The following table reflects pretax (income) expense related to the network optimization plan during fiscal 2025 (in millions):
BeefPorkChickenPrepared FoodsInternational/OtherTotal
Cost of Sales:
Severance and related costs$6 $— $8 $2 $2 $18 
Accelerated depreciation38 — 1 — — 39 
Asset write-offs3 — 33 34 12 82 
Contract and lease terminations1 — 3 7 — 11 
Gain on sale of storage facilities— — (38)(69)— (107)
Total Cost of Sales$48 $— $7 $(26)$14 $43 
Selling, General and Administrative:
Severance and related costs— — 2 — — 2 
Total Selling, General and Administrative$— $— $2 $— $— $2 
Total$48 $— $9 $(26)$14 $45 
As of September 27, 2025, there was $34 million of network optimization plan liability, net of $19 million of payments during fiscal 2025 in addition to a receivable of $43 million for the deferred purchase price from the sale of storage facilities, which is expected to be received in fiscal 2026.
2022 Program
The Company approved a restructuring program in fiscal 2022 (the "2022 Program"), to improve business performance, increase collaboration, enhance team member agility, enable faster decision-making and reduce redundancies. In conjunction with the 2022 Program, the Company relocated all its corporate team members from its former Chicago, Downers Grove and Dakota Dunes area corporate locations to its world headquarters in Springdale, Arkansas. The 2022 Program and associated expenses were completed in our fiscal 2024, and accordingly, disclosures for certain years have been omitted as they have been deemed to be immaterial.
The following table reflects the pretax impact of the 2022 Program's restructuring and related charges during fiscal 2024 and 2023, respectively, by reportable segment (in millions):
BeefPorkChickenPrepared FoodsInternational/OtherTotal
Severance costs$1 $— $2 $1 $— $4 
Relocation and related costs3 1 — 4 — 8 
Accelerated depreciation— — — — — — 
Contract and lease terminations— — — 19 — 19 
Professional and other fees— — — — — — 
2024 Total$4 $1 $2 $24 $— $31 
BeefPorkChickenPrepared FoodsInternational/OtherTotal
Severance costs$8 $2 $14 $16 $15 $55 
Relocation and related costs18 6 2 16 — 42 
Accelerated depreciation5 2 — 12 — 19 
Contract and lease terminations— — — 2 — 2 
Professional and other fees2 1 — 3 — 6 
2023 Total$33 $11 $16 $49 $15 $124 
Included in the above results are cash charges of $21 million and $108 million in fiscal 2024 and 2023, respectively. Included in the above results are non-cash charges of $10 million and $16 million in fiscal 2024 and 2023, respectively.
The following table reflects the pretax impact of the 2022 Program's restructuring and related charges as reflected in our Consolidated Statements of Income (in millions):
20242023
Cost of Sales$— $29 
Selling, General and Administrative31 95 
Total$31 $124 
Plant Closures and Disposals
During fiscal 2023, to optimize asset utilization, the Company approved the closure of six Chicken segment processing facilities and during fiscal 2024, approved the closure of two case ready value-added plants in our Beef segment and a processing facility in our Pork segment. We ceased operations and shifted production to other facilities throughout fiscal 2023 and fiscal 2024.
During fiscal 2024 and 2023, as a result of the plant closures and disposals, we recorded charges of $198 million and $322 million, respectively, primarily related to grower contract terminations, accelerated depreciation, severance, retention and related costs, and recorded a gain of $16 million during fiscal 2024 related to the sale of a Chicken segment facility. During fiscal 2025, we recorded $23 million of additional charges related to contract termination costs, partially offset by $6 million of proceeds received related to a China plant relocation, which will collectively result in cash flows. Additionally, during fiscal 2023, we recorded an impairment charge of $17 million related to the discontinuation of a product line in the Prepared Foods segment. These charges, net of gains, are reflected in the Consolidated Statements of Income in Cost of Sales. Included in the results for fiscal 2024 are $24 million of charges that have resulted or will result in cash outflows and $174 million in non-cash charges. Included in the results for fiscal 2023 are $201 million of charges that have resulted or will result in cash outflows and $138 million of non-cash charges.
The following table reflects our liability related to plant closures as of September 27, 2025 (in millions):
Balance at September 28, 2024Plant Closure ChargesPaymentsBalance at September 27, 2025
Contract termination$98 $23 $(49)$72 
Severance and retention5 — (5)— 
Total$103 $23 $(54)$72 
During fiscal 2024, we experienced a fire at a production facility in the Netherlands which is included in International/Other for segment presentation, and subsequently approved the sale of the facility. For fiscal 2024, charges totaled $86 million primarily related to property, plant and equipment impairments, severance costs, inventory write-offs and clean-up costs, partially offset by insurance proceeds. The net charges are reflected in the Consolidated Statements of Income in Cost of Sales and, for fiscal 2024, included $31 million of charges that have resulted or will result in cash outflows and $64 million of non-cash charges, offset by $9 million of insurance proceeds. In fiscal 2025, we recognized additional net insurance proceeds of $18 million.
We continue to strategically evaluate optimization of such items as network capacity, manufacturing efficiencies and business technology. If we have a significant change in strategies, outlook, or a manner in which we plan to use these assets, we may experience future charges.