TYSON FOODS INC
For the period ended Dec 28, 2024. Filed Feb 3, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 28, 2024 · Filed Feb 3, 2025
TSN$59.68-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-29; filed 2024-08-05.
0000100493-24-000103
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-28; filed 2025-02-03.
0000100493-25-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 192 previous paragraphs and 142 current paragraphs.
56 unchanged; 48 reworded; 36 added; 75 removed; 13 previous and 2 current paragraphs rearranged.
Tables are not compared: 23 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
•Beef – (1.2)%
Current report
•Pork – 3.6%
Current report
•Chicken – 8.6%
Current report
•Prepared Foods – 8.5%
Current report
In the first quarter of fiscal 2025, the Company initiated a network optimization plan to optimize our global operations and logistics network. As of December 28, 2024, we expect to incur $93 million of charges related to actions approved to date, which include an estimated $39 million of cash charges and $54 million of non-cash charges. We recognized charges of $73 million in the first quarter of fiscal 2025, which included $29 million of charges that have resulted or will result in cash outflows and $44 million of non-cash charges. We expect to incur costs related to the network optimization plan over a multi-year period. For further description refer to Part I, Item I, Notes to the Consolidated Condensed Financial Statements, Note 5: Restructuring and Related Charges.
Current report
•Decrease of $75 million due to plant closures and disposal charges.
Current report
•Increase of $24 million in our Chicken segment from reduced insurance proceeds, net of costs, related to a production facility fire in the fourth quarter of fiscal 2021.
Current report
•Increase of $71 million related to network optimization plan charges.
Current report
•Decrease of $18 million in employee costs.
Current report
First quarter – Fiscal 2025
Current report
First quarter – Fiscal 2024
Current report
•The effective tax rates for both periods were increased by state taxes and net unfavorable permanent book-to-tax differences, partially offset by various tax benefits; however, the relatively lower level of pretax income in the first quarter of fiscal 2024 resulted in a higher effective tax rate compared to the first quarter of fiscal 2025. Additionally, the effective tax rate for the first quarter of fiscal 2025 was decreased by the release of a $9 million valuation allowance on certain losses in the Netherlands due to newly enacted tax legislation.
Current report
Net Income Attributable to Tyson
Current report
First quarter – Fiscal 2025 –Net income attributable to Tyson included the following items:
Current report
•$73 million pretax, or ($0.16) per diluted share, related to network optimization plan charges.
Current report
•$9 million post tax, or $0.03 per diluted share, of benefit due to newly enacted tax legislation that resulted in the release of a valuation allowance on losses related to a production facility fire in the Netherlands and our subsequent decision to sell the facility.
Current report
First quarter – Fiscal 2024 –Net income attributable to Tyson included the following items:
Current report
•$75 million pretax, or ($0.16) per diluted share, of plant closures and disposal charges.
Current report
•$73 million pretax, or ($0.16) per diluted share, related to the recognition of a legal contingency accrual.
Current report
•$26 million pretax, or ($0.07) per diluted share, of charges related to a production facility fire in the Netherlands and our subsequent decision to sell the facility.
Current report
(b) Pork segment results for the three months ended December 30, 2023 included a $28 million legal contingency accrual.
Current report
(c) Chicken segment results for the three months ended December 28, 2024 included $11 million of network optimization plan charges and $6 million of brand discontinuation charges. Chicken segment results for the three months ended December 30, 2023 included $35 million of plant closures and disposal charges and $24 million of insurance proceeds, net of costs incurred.
Current report
(d) Prepared Foods segment results for the three months ended December 28, 2024 included $25 million of network optimization plan charges. Prepared Foods segment results for the three months ended December 30, 2023 included $21 million of restructuring and related charges.
Current report
•Operating Income (Loss) - Beef margins remained compressed, but operating income increased due to improved operational execution, lapping of a $56 million inventory lower of cost or net realizable value adjustment, plant closure and disposal charges and recognition of a legal contingency accrual in the first quarter of fiscal 2024, partially offset by network optimization plan charges in the first quarter of fiscal 2025.
Current report
•Sales Volume- Sales volume decreased slightly as production decreases associated with a plant closure in 2024 were partly offset by production increases at other facilities and higher average carcass weights.
Current report
•Average Sales Price - Average sales price increased as demand for our pork products remained strong.
Current report
•Operating Income - Operating income increased due to lower operating costs and the recognition of a legal contingency accrual in the first quarter of fiscal 2024, partially offset by compressed spreads.
Current report
•Sales Volume - Sales volume increased primarily due to improved foodservice and export channels partially offset by a reduction in the retail channel.
Current report
•Operating Income - Operating income increased driven by operational execution, improved volumes and $155 million of net decreases in feed ingredient costs which was partially offset by associated decreases in average sales price. Additionally, we experienced reduced insurance proceeds, net of costs and lower plant closures and disposal charges, partially offset by network optimization plan charges.
Current report
•Sales Volume – Sales volume decreased due to a challenging consumer environment primarily impacting our retail channel.
Current report
•Average Sales Price – Average sales price increased slightly.
Current report
•Operating Income – Operating income decreased as increased raw material costs were partially offset by reduced marketing, advertising and promotional spend. Additionally, operating income was impacted by network optimization plan charges and restructuring and related charges in the first quarter of fiscal 2025 and fiscal 2024, respectively.
Current report
•Sales– Sales were relatively flat as increased volumes were mostly offset by foreign exchange translation impacts.
Current report
•A decrease of $121 million due to a decrease in inventory of $57 million in the first three months of fiscal 2025, compared to a decrease of $178 million in the first three months of fiscal 2024, as the average value of inventory decreased less during the first three months of fiscal 2025 than the first three months of fiscal 2024.
Current report
•A decrease of $132 million due to a decrease in accounts receivable of $88 million in the first three months of fiscal 2025, compared to a decrease of $220 million in the first three months of fiscal 2024 as days sales outstanding decreased less during the first three months of fiscal 2025 than the first three months of fiscal 2024.
Current report
•On January 29, 2025, subsequent to the end of our first quarter of fiscal 2025, we repaid the $750 million term loan that matures in May 2026 using cash on hand.
Removed paragraphs (75)
Previous report
Sales increased in the third quarter and in the first nine months of fiscal 2024 driven by increased sales in our Beef, Pork and Prepared Foods segments, partially offset by decreased sales in our Chicken segment. We recorded operating income of $341 million for the third quarter of fiscal 2024 as compared to an operating loss of $350 million in the third quarter of fiscal 2023 primarily driven by higher operating income in our Chicken segment and International/Other, partially offset by lower operating income in our Beef segment. During the third quarter and first nine months of fiscal 2024, we incurred higher performance-based compensation costs of $89 million and $308 million, respectively, driven by improved consolidated results. Due to the nature of our performance-based compensation plans, our segments were primarily impacted based on their relative number of eligible team members, and thus, our Chicken and Prepared Foods segments incurred a greater proportion of the total costs.
Previous report
The Federal Reserve has increased interest rates, and may continue to increase interest rates or maintain elevated interest rates in the near term. Our direct exposure to elevated interest rates is somewhat tempered given our strong liquidity position in addition to our current debt structure in which most of our borrowings have fixed interest rates. At June 29, 2024, we had $4.8 billion of liquidity and our current debt was $1.3 billion, which we intend to repay with the remaining proceeds from our $1.5 billion of senior notes issued in March 2024. Should we need to issue additional debt or borrow under our existing revolving credit facility, we may be exposed to higher interest rates than our current outstanding borrowings.
Previous report
•Beef – (1.3)%
Previous report
•Pork – (4.2)%
Previous report
•Chicken – 6.0%
Previous report
•Prepared Foods – 8.3%
Previous report
In the fourth quarter of fiscal 2022, the Company approved a restructuring program, the 2022 Program, which is expected to improve business performance, increase collaboration, enhance team member agility, enable faster decision-making and reduce redundancies. We recognized $50 million of pretax charges in the three months ended July 1, 2023, and $31 million and $93 million of pretax charges in the nine months ended June 29, 2024 and July 1, 2023, respectively, associated with the 2022 Program consisting of severance related costs, relocation and related costs, accelerated depreciation, contract and lease termination and professional and other fees. The Company currently anticipates the 2022 Program will result in cumulative pretax charges of approximately $225 million. As the Company continues to evaluate its business strategies and long-term growth targets, additional restructuring activities may occur. The following tables set forth the pretax impact of restructuring and related charges in the Consolidated Condensed Statements of Income and the pretax impact by our reportable segments. For further description refer to Part I, Item 1, Notes to the Consolidated Condensed Financial Statements, Note 6: Restructuring and Related Charges (in millions).
Previous report
◦The above changes in average sales price exclude a $45 million and $38 million reduction of Sales from the recognition of legal contingency accruals in the third quarter of fiscal 2024 and 2023, respectively.
Previous report
◦The above changes in average sales price exclude a $45 million and $38 million reduction of Sales from the recognition of legal contingency accruals for the nine months ended June 29, 2024 and July 1, 2023, respectively.
Previous report
•Decrease due to net derivative gains of $6 million in the third quarter of fiscal 2024, compared to net derivative losses of $89 million in the third quarter of fiscal 2023 due to our risk management activities. These amounts exclude offsetting impacts from related physical purchase transactions, which are included in the change in live cattle and hog costs and raw material and feed ingredient costs described herein.
Previous report
•Decrease of $19 million in restructuring and related costs.
Previous report
•Increase of $56 million related to the recognition of a legal contingency accrual in our Chicken segment.
Previous report
•Increase in performance-based compensation costs of $27 million.
Previous report
•Increase of $26 million due to costs associated with plant closures.
Previous report
•Cost of sales decreased $184 million. Lower sales volume decreased cost of sales by $51 million while lower input cost per pound decreased cost of sales by $133 million.
Previous report
•Decrease due to net derivative losses of $45 million in the first nine months of fiscal 2024, compared to net derivative losses of $98 million in the first nine months of fiscal 2023 due to our risk management activities. These amounts exclude offsetting impacts from related physical purchase transactions, which are included in the change in live cattle and hog costs and raw material and feed ingredient costs described herein.
Previous report
•Increase in performance-based compensation costs of $140 million.
Previous report
•Increase of $48 million due to costs associated with plant closures.
Previous report
•Increase of $42 million in our Beef segment from insurance proceeds received in the first quarter of fiscal 2023 related to the fire at our production facility in the fourth quarter of fiscal 2019.
Previous report
•Decrease of $31 million in restructuring and related costs.
Previous report
•Increase of $51 million in team member costs including $62 million in performance-based compensation partially offset by a decrease of $11 million in all other team member costs.
Previous report
•Increase of $125 million in team member costs including $168 million in performance-based compensation partially offset by a decrease of $43 million in all other team member costs.
Previous report
•Decrease of $39 million in restructuring and related costs.
Previous report
Goodwill Impairment
Previous report
•We recorded a $448 million goodwill impairment charge in the third quarter of fiscal 2023.
Previous report
Third quarter and nine months – Fiscal 2024
Previous report
Third quarter and nine months– Fiscal 2023
Previous report
•The third quarter of fiscal 2024 was impacted by increased foreign losses, offset by a $9 million benefit related to the remeasurement of deferred income taxes, primarily due to legislation decreasing state tax rates enacted in the third quarter.
Previous report
•In both periods, the effective tax rates were impacted by state taxes and various tax benefits; however, tax benefits increase the effective tax rate in a period of pretax loss and decrease the effective tax rate in a period of pretax income.
Previous report
•The fiscal 2023 third quarter effective tax rate was impacted by a $448 million non-deductible goodwill impairment.
Previous report
•The first nine months of fiscal 2024 was impacted by increased foreign losses, partially offset by a $9 million benefit related to the remeasurement of deferred income taxes, primarily due to legislation decreasing state tax rates enacted in the third quarter.
Previous report
•The percentage impacts of items on the effective tax rate were greater in fiscal 2023 due to the level of pretax income (loss) in fiscal 2023 compared to fiscal 2024.
Previous report
•In both periods, the effective tax rates were impacted by state taxes and various tax benefits; however, tax benefits increase the effective tax rate in a period of pretax loss and decrease the effective tax rate in a period of pretax income.
Previous report
•The effective tax rate for the first nine months of fiscal 2023 was impacted by a $448 million non-deductible goodwill impairment.
Previous report
Net Income (Loss) Attributable to Tyson
Previous report
Third quarter – Fiscal 2024 –Net income (loss) attributable to Tyson included the following items:
Previous report
•$101 million pretax, or ($0.22) per diluted share, related to the recognition of legal contingency accruals.
Previous report
•$41 million pretax, or ($0.09) per diluted share, of charges related to plant closures.
Previous report
Nine months – Fiscal 2024 –Net income (loss) attributable to Tyson included the following items:
Previous report
•$174 million pretax, or ($0.38) per diluted share, related to the recognition of legal contingency accruals.
Showing the first 40 of 75 passages. Open the source sections for the rest.
Reworded paragraphs (48)
Previous wording
We are one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under four generations of family leadership, the Company has a broad portfolio of products and brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Some of the key factors influencing our business are customer demand for our products; the ability to maintain and grow relationships with customers and introduce new and innovative products to the marketplace; accessibility of international markets; market prices for our products; the cost and availability of live cattle and hogs, raw materials and feed ingredients; availability of team members to operate our production facilities; and operating efficiencies of our facilities.
Current wording
We are a world-class food company and recognized leader in protein. Founded in 1935 by John W. Tyson, it has grown under four generations of family leadership. The Company is unified by this purpose: Tyson Foods. We Feed the World Like Family TM and has a broad portfolio of iconic products and brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Aidells® and ibp®. Tyson Foods is dedicated to bringing high-quality food to every table in the world, safely, sustainably, and affordably, now and for future generations. Some of the key factors influencing our business are customer demand for our products; the ability to maintain and grow relationships with customers and introduce new and innovative products to the marketplace; accessibility of international markets; market prices for our products; the cost and availability of live cattle and hogs, raw materials and feed ingredients; availability of team members to operate our production facilities; and operating efficiencies of our facilities.
Previous wording
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, Thailand and the Kingdom of Saudi Arabia, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC.
Current wording
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 China, Malaysia, Mexico, South Korea, Thailand and the Kingdom of Saudi Arabia, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC.
Previous wording
Additionally, in the third quarter of fiscal 2024, our operating income was impacted by $101 million in legal contingency accruals and $41 million in plant closure charges. In the third quarter of fiscal 2023, our operating income was impacted by $448 million of goodwill impairment charges, $50 million of restructuring and related charges, $15 million in plant closures charges, a $38 million legal contingency accrual, and benefited from $22 million of insurance proceeds, net of costs incurred associated with a production facility fire. We recorded operating income of $884 million for the first nine months of fiscal 2024 as compared to operating income of $68 million for the first nine months of fiscal 2023 primarily driven by higher operating income in our Chicken and Pork segments and International/Other, partially offset by lower operating income in our Beef segment. In the first nine months of fiscal 2024, our operating income was impacted by $174 million in legal contingency accruals, $155 million of plant closure charges, $83 million of costs related to a production facility fire in the Netherlands and the subsequent decision to sell the facility and $31 million of restructuring and related charges, partially offset by the benefit of $19 million of insurance proceeds, net of costs incurred related to facility fires. In the nine months ended July 1, 2023, our operating income was impacted by $448 million of goodwill impairment charges, $107 million in plant closures charges, $93 million of restructuring and related charges, and a $38 million legal contingency accrual and benefited from $57 million of insurance proceeds net of costs, related to facility fires.
Current wording
Sales increased $304 million in the first quarter of fiscal 2025 driven by increased sales in our Beef, Pork and Chicken segments, partially offset by decreased sales in our Prepared Foods segment. Operating income of $580 million for the first quarter of fiscal 2025 was up 151% as we experienced higher operating income in our Beef, Pork and Chicken segments, partially offset by lower operating income in our Prepared Foods segment. In the first quarter of fiscal 2025, our operating income was impacted by $73 million in network optimization plan charges and $6 million in brand discontinuation charges. In the first quarter of fiscal 2024, our operating income was impacted by $75 million in plant closures and disposal charges, $73 million in legal contingency accruals, $30 million of restructuring and related charges, $26 million related to a production facility fire in the Netherlands and our subsequent decision to sell the facility, and benefited from $24 million of production facility fire insurance proceeds, net of costs incurred, related to a production facility fire in the fourth quarter of fiscal 2021.
Previous wording
According to the United States Department of Agriculture, domestic protein production (beef, pork, chicken and turkey) increased slightly in the third quarter of fiscal 2024 as compared to the same period in fiscal 2023. The Beef segment experienced limited supply of market-ready cattle in the third quarter of fiscal 2024 as well as increased cattle costs. Additionally, uncertainty exists regarding the timing of the anticipated cattle herd rebuilding. The Pork segment experienced sufficient supply and increased hog costs. The Chicken segment experienced reduced feed ingredient costs. The Prepared Foods segment is currently experiencing increased raw material costs primarily due to higher meat costs. Additionally, the conflict between Ukraine and Russia has led to economic sanctions against Russia and certain regions of Ukraine and Belarus. However, the conflict is still ongoing and there are many risks and uncertainties in relation to the conflict that are outside of our control. Furthermore, during fiscal 2024, the ongoing conflict in the Middle East escalated and created economic and political uncertainty within the region. As of June 29, 2024, the impact of these conflicts have not had a material direct impact on our financial performance. If these conflicts escalate further, impact additional regions or countries, or have additional economic sanctions imposed, it could have a material impact on our business operations and financial performance.
Current wording
According to the United States Department of Agriculture, domestic protein production (beef, pork, chicken and turkey) increased approximately 1% in the first quarter of fiscal 2025 as compared to the same period in fiscal 2024. The Beef segment continued to experience limited supply of market-ready cattle in the first quarter of fiscal 2025 as well as increased cattle costs. Additionally, uncertainty exists regarding the timing of the anticipated cattle herd rebuilding. The Pork segment experienced sufficient supply of market-ready hogs and increased hog costs. The Chicken segment experienced reduced feed ingredient costs. The Prepared Foods segment is currently experiencing increased raw material costs primarily due to higher meat costs.
Previous wording
Our total operating margin was 2.6% in the third quarter of fiscal 2024. Operating margins by segment were as follows:
Current wording
Our total operating margin was 4.3% in the first quarter of fiscal 2025. Operating margins by segment were as follows:
Previous wording
•Sales Volume – Sales were positively impacted by an increase in sales volume, which accounted for a $142 million increase in sales driven by increased sales volume in our Beef, Pork and Prepared Foods segments, partially offset by decreased sales volume in our Chicken segment.
Current wording
•Sales Volume – Sales were positively impacted by an increase in sales volume, which accounted for a $208 million increase in sales driven by increased sales volume in our Beef and Chicken segments, partially offset by decreased sales volume in our Pork and Prepared Foods segments.
Previous wording
•Average Sales Price – Sales were positively impacted by higher average sales prices, which accounted for an increase of $78 million, driven by increased pricing in our Beef and Pork segments, partially offset by lower average sales prices in our Chicken segment.
Current wording
•Average Sales Price – Sales were positively impacted by higher average sales prices, which accounted for an increase of $96 million, driven by increased pricing in our Beef, Pork and Prepared Foods segments, partially offset by lower average sales prices in our Chicken segment.
Previous wording
•Cost of sales increased $12 million. Higher sales volume increased cost of sales by $133 million while lower input cost per pound decreased cost of sales by $121 million.
Current wording
•Cost of sales increased $32 million. Higher sales volume increased cost of sales by $195 million while lower input cost per pound decreased cost of sales by $163 million.
Previous wording
•The $121 million impact of lower input cost per pound was impacted by:
Current wording
•The $163 million impact of lower input cost per pound was impacted by:
Previous wording
•Decrease of approximately $305 million in our Chicken segment related to decreased feed ingredient costs.
Current wording
•Decrease of approximately $155 million in our Chicken segment related to decreased feed ingredient costs.
Previous wording
•Increase of $129 million related to the recognition of legal contingency accruals in our Beef, Pork and Chicken segments.
Current wording
•Decrease of $73 million related to the recognition of legal contingency accruals in our Beef and Pork segments.
Previous wording
•Decrease in freight and transportation costs of approximately $60 million.
Current wording
•Decrease in freight and transportation costs of approximately $40 million.
Previous wording
•Increase of $83 million in International/Other from costs related to a production facility fire in the Netherlands and subsequent decision to sell the facility.
Current wording
•Decrease of $26 million in International/Other from costs related to a production facility fire in in the Netherlands and the subsequent decision to sell the facility.
Previous wording
•Increase in raw material and other input costs of approximately $35 million in our Prepared Foods segment.
Current wording
•Increase in raw material and other input costs of approximately $80 million in our Prepared Foods segment.
Previous wording
•Increase in cattle costs of approximately $240 million in our Beef segment.
Current wording
•Increase in cattle costs of approximately $40 million in our Beef segment.
Previous wording
•Increase in hog costs of approximately $110 million in our Pork segment.
Current wording
•Increase in hog costs of approximately $60 million in our Pork segment.
Previous wording
•Remaining decrease in costs across all of our segments primarily driven by net impacts on average cost per pound from mix changes in addition to savings from our productivity program.
Current wording
•Remaining increase in costs across all of our segments primarily driven by net impacts on average cost per pound from mix changes.
Previous wording
•Decrease of $42 million in selling, general and administrative was primarily driven by:
Current wording
•Decrease of $77 million in selling, general and administrative was primarily driven by:
Previous wording
•Increase of $27 million in our Chicken segment from insurance proceeds, net of costs, related to a production facility fire in the fourth quarter of fiscal 2021.
Current wording
•Decrease of $27 million in restructuring and related costs.
Previous wording
•Decrease of $45 million in marketing, advertising and promotion expenses.
Current wording
•Decrease of $23 million in marketing, advertising and promotion expenses.
Previous wording
•Decrease of $7 million in rent expense.
Current wording
•Decrease of $7 million in donations.
Previous wording
•The increase in interest income for the three and nine months ended June 29, 2024 was primarily due to higher cash and cash equivalents held and increased interest rates.
Current wording
•The increase in interest income for the three months ended December 28, 2024 was primarily due to higher cash and cash equivalents held.
Previous wording
•The increase in interest expense for the three and nine months ended June 29, 2024 was primarily due to interest expense related to our recently issued 5.40% 2029 Notes and 5.70% 2034 Notes and interest expense on the balance of our term loan facilities.
Current wording
•The increase in interest expense for the three months ended December 28, 2024 was primarily due to interest expense related to our 5.40% 2029 Notes and 5.70% 2034 Notes.
Previous wording
•Included $22 million of production facilities fire insurance proceeds offset by $7 million of foreign exchange losses in the third quarter of fiscal 2023. Included $22 million of foreign exchange gains and $16 million of joint venture earnings in the first nine months of fiscal 2023.
Current wording
•Included $24 million of foreign exchange losses, partially offset by $12 million of joint venture earnings and $7 million of production facilities fire insurance proceeds.
Previous wording
•Included $19 million and $22 million of joint venture earnings in the third quarter and the first nine months of fiscal 2024, respectively, offset by $9 million and $4 million of foreign exchange losses in the third quarter and the first nine months of fiscal 2024, respectively. Additionally, included $14 million of income related to an amendment of a postretirement benefit plan in the first nine months of fiscal 2024.
Current wording
•Included $19 million of foreign exchange gains and $10 million related to an amendment of a postretirement benefit plan.
Previous wording
•$5 million pretax, or ($0.01) per diluted share, of production facilities fire costs incurred, net of insurance proceeds.
Current wording
•$7 million pretax, or $0.01 per diluted share, of production facilities fire insurance proceeds, net of costs incurred.
Previous wording
•$31 million pretax, or ($0.06) per diluted share, of restructuring and related charges.
Current wording
•$30 million pretax, or ($0.06) per diluted share, of restructuring and related charges.
Previous wording
(a) Beef segment results for the nine months ended June 29, 2024 included a $45 million legal contingency accrual and $41 million of costs related to plant closures. Beef segment results for the nine months ended July 1, 2023 included $42 million of insurance proceeds, net of costs incurred.
Current wording
(a) Beef segment results for the three months ended December 28, 2024 included $32 million of network optimization plan charges. Beef segment results for the three months ended December 30, 2023 included a $45 million legal contingency accrual and $40 million of plant closures and disposal charges.
Previous wording
(d) International/Other results for the three and nine months ended June 29, 2024 included $3 million and $83 million, respectively, of costs, net of insurance proceeds, related to a fire at our production facility in the Netherlands and subsequent decision to sell.
Current wording
(e) International/Other results for the three months ended December 28, 2024 included $5 million of network optimization plan charges. International/Other results for the three months ended December 30, 2023 included $26 million of costs, net of insurance proceeds, related to a fire at our production facility in the Netherlands and subsequent decision to sell.
Previous wording
•Sales Volume- Sales volume increased in the third quarter and the first nine months of fiscal 2024 primarily due to higher average carcass weights.
Current wording
•Sales Volume- Sales volume increased due to higher average carcass weights and increased head harvested.
Previous wording
•Average Sales Price - Average sales price increased in the third quarter due to increased demand, and in the first nine months of fiscal 2024 due to increased input costs and increased demand.
Current wording
•Average Sales Price - Average sales price increased primarily due to increased input costs and strong demand.
Previous wording
•Average Sales Price - Average sales price decreased in the third quarter and the first nine months of fiscal 2024 due to the impact of lower input costs. The change in average sales price excludes a $38 million reduction of Sales from the recognition of a legal contingency accrual recorded in the third quarter of fiscal 2023.
Current wording
•Average Sales Price - Average sales price decreased due to the impact of lower input costs.
Previous wording
•Operating Income (Loss) – Operating income increased primarily due to a goodwill impairment charge recorded in the third quarter of fiscal 2023 partially offset by charges related to a production facility fire in the first quarter of fiscal 2024 and the subsequent decision to sell the facility.
Current wording
•Operating Income (Loss) – Operating income increased primarily due to improved performance and lapping the impacts of a production facility fire in the first quarter of fiscal 2024 and the subsequent decision to sell the facility.
Previous wording
•Non-cash items in net income primarily included depreciation and amortization of $1,082 million and $943 million for the nine months ended June 29, 2024 and July 1, 2023, respectively, and a $448 million goodwill impairment for the nine months ended July 1, 2023.
Current wording
•Non-cash items in net income primarily included depreciation and amortization of $348 million and $373 million for the three months ended December 28, 2024 and December 30, 2023, respectively.
Previous wording
•Cash provided by operating activities for the first nine months of fiscal 2024 was $2.0 billion, an increase of $544 million compared to the first nine months of fiscal 2023, due to $377 million of higher earnings, net of non-cash items, and a $167 million increase in cash provided by the net changes in operating assets and liabilities which was primarily impacted by:
Current wording
•Cash provided by operating activities for the first three months of fiscal 2025 was $1.0 billion, a decrease of $269 million compared to the first three months of fiscal 2024, as the $188 million of higher earnings, net of non-cash items, was more than offset by a $457 million decrease in cash provided by the net changes in operating assets and liabilities which was primarily impacted by:
Previous wording
•An increase of $469 million due to an increase of $215 million in the net changes in other operating assets and liabilities in the first nine months of fiscal 2024, compared to a decrease of $254 million in fiscal 2023, primarily driven by performance-based compensation.
Current wording
•A decrease of $373 million due to a decrease of $165 million in the net changes in other operating assets and liabilities in the first three months of fiscal 2025, compared to an increase of $208 million in fiscal 2024, primarily driven by an increase in performance-based compensation payouts.
Previous wording
•A decrease of $145 million due to a decrease in accounts payable of $252 million during the first nine months of fiscal 2024, compared to a decrease of $107 million in the first nine months of fiscal 2023, primarily due to lower input costs and decrease in days payables outstanding.
Current wording
•An increase of $120 million due to an increase in accounts payable of $161 million during the first three months of fiscal 2025, compared to an increase of $41 million in the first three months of fiscal 2024, primarily due to an increase in days payables outstanding and higher input costs.
Previous wording
•We expect capital expenditures between $1.2 billion and $1.3 billion for fiscal 2024. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair. This includes completion of capacity expansion projects as well as new equipment, automation technology and processes for product innovation.
Current wording
•We expect capital expenditures between $1 billion and $1.2 billion for fiscal 2025. Capital expenditures include investments in profit improvement projects as well as projects for maintenance and repair. This includes completion of capacity expansion projects as well as new equipment, automation technology and processes for product innovation.
Previous wording
•During the first nine months of fiscal 2024, proceeds from issuance of debt included $750 million of proceeds from the term loan facility due May 2028, $600 million of proceeds from the 5.40% 2029 Notes, and $900 million from the 5.70% 2034 Notes.
Current wording
•During the first three months of fiscal 2024, proceeds from issuance of debt included $750 million of proceeds from the term loan facility due May 2028.
Previous wording
•Dividends paid during the nine months ended June 29, 2024 reflected a 2% increase to our fiscal 2023 quarterly dividend rate.
Current wording
•Dividends paid during the three months ended December 28, 2024 reflected a 2% increase to our fiscal 2024 quarterly dividend rate.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•$6 million pretax, or ($0.01) per diluted share, of brand discontinuation charges.
Current report — wording carried from elsewhere
•$27 million pretax, or $0.06 per diluted share, of production facilities fire insurance proceeds, net of costs incurred.
Rearranged previous paragraphs (13)
Previous report — wording carried elsewhere
•Sales Volume – Sales were negatively impacted by a decrease in sales volume, which accounted for a $53 million decrease in sales driven by decreased sales volume in our Chicken segment, partially offset by increased sales volume in our Beef, Pork and Prepared Foods segments.
Previous report — wording carried elsewhere
•Average Sales Price – Sales were positively impacted by higher average sales prices, which accounted for an increase of $271 million, driven by increased pricing in our Beef and Pork segments, partially offset by lower average sales prices in our Chicken and Prepared Foods segments.
Previous report — wording carried elsewhere
•The $133 million impact of lower input cost per pound was impacted by:
Previous report — wording carried elsewhere
•Decrease of approximately $665 million in our Chicken segment related to decreased feed ingredient costs.
Previous report — wording carried elsewhere
•Decrease in freight and transportation costs of approximately $230 million.
Previous report — wording carried elsewhere
•Decrease in hog costs of approximately $70 million in our Pork segment.
Previous report — wording carried elsewhere
•Decrease in raw material and other input costs of approximately $40 million in our Prepared Foods segment.
Previous report — wording carried elsewhere
•Decrease of $23 million in restructuring and related costs.
Previous report — wording carried elsewhere
•Increase in cattle costs of approximately $1,140 million in our Beef segment.
Previous report — wording carried elsewhere
•Remaining decrease in costs across all of our segments primarily driven by net impacts on average cost per pound from mix changes in addition to savings from our productivity program.
Previous report — wording carried elsewhere
•Increase of $27 million in selling, general and administrative was primarily driven by:
Previous report — wording carried elsewhere
•Decrease of $53 million in marketing, advertising and promotion expenses.
Previous report — wording carried elsewhere
•$3 million pretax, or ($0.01) per diluted share, of charges related to a production facility fire in the Netherlands and our subsequent decision to sell the facility.