TYSON FOODS INC
For the period ended Mar 29, 2025. Filed May 5, 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.
Mar 29, 2025 · Filed May 5, 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 2024-12-28; filed 2025-02-03.
0000100493-25-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-29; filed 2025-05-05.
0000100493-25-000056
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 142 previous paragraphs and 181 current paragraphs.
66 unchanged; 52 reworded; 51 added; 23 removed; 1 previous and 12 current paragraphs rearranged.
Tables are not compared: 20 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 (51)
Current report
Sales were relatively flat in the second quarter and increased 1.2%, or $306 million, in the first six months of fiscal 2025, driven by increased sales in our Beef and Chicken segments, partially offset by decreased sales in our Pork and Prepared Foods segments. Sales were negatively impacted in the second quarter and the first six months by 2.6% and 1.3%, respectively, from the recognition of $343 million of legal contingency accruals. Operating income of $100 million for the second quarter of fiscal 2025 was down 68% as compared to the second quarter of fiscal 2024, as we experienced lower operating income in our Beef and Pork segments, partially offset by higher operating income in our Chicken and Prepared Foods segments and International/Other.
Current report
We are subject to changes in import and export policies, including trade restrictions, new or increased tariffs or quotas, and customs restrictions through our international sales and operations. Our exports account for less than 10% of our business, primarily composed of chicken leg quarters and paws, boxed beef and variety meats of all proteins. As a result of the recent changes in trade policies and tariffs both domestically and internationally, we may experience some sales disruptions and other impacts associated with tariffs. There is uncertainty regarding the impact the current changes will have on the price and demand of our products in the affected countries, commodity pricing and other general economic conditions, and uncertainty in future changes that may have a material impact. We will continue to analyze the impact of supply chain and tariff impacts in the upcoming months.
Current report
•Beef – (5.0)%
Current report
•Pork – (15.7)%
Current report
•Chicken – 6.3%
Current report
•Prepared Foods – 10.2%
Current report
•Sales Volume – Volumes were essentially flat, accounting for a $3 million decrease in sales as increased sales volume in our Chicken segment was offset by decreased sales volume in our Beef, Pork and Prepared Foods segments.
Current report
◦The above changes in average sales price exclude a $343 million reduction of Sales for the recognition of legal contingency accruals recorded in the second quarter of fiscal 2025.
Current report
◦The above changes in average sales price exclude a $343 million reduction of Sales from the recognition of legal contingency accruals recorded in the second quarter of fiscal 2025.
Current report
•Increase of $43 million related to network optimization plan charges.
Current report
•Decrease due to net derivative losses of $24 million in the second quarter of fiscal 2025, compared to net derivative losses of $46 million in the second quarter of fiscal 2024 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.
Current report
•Decrease of $16 million due to lower plant closures and disposal charges.
Current report
•Cost of sales increased $300 million. Higher sales volume increased cost of sales by $192 million while higher input cost per pound increased cost of sales by $108 million.
Current report
•The $108 million impact of higher input cost per pound was impacted by:
Current report
•Increase of $114 million related to network optimization plan charges.
Current report
•Decrease of $91 million due to lower plant closures and disposal charges.
Current report
•Decrease of $80 million in International/Other from costs recognized in fiscal 2024 related to a production facility fire in the Netherlands and the subsequent decision to sell the facility.
Current report
•Decrease due to net derivative losses of $31 million in the first six months of fiscal 2025, compared to net derivative losses of $51 million in the first six months of fiscal 2024 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.
Current report
•Decrease of $17 million in professional fees.
Current report
•Decrease of $35 million in employee costs primarily from performance-based compensation.
Current report
•Decrease of $22 million in professional fees.
Current report
Second quarter and six months – Fiscal 2025
Current report
Second quarter and six months – Fiscal 2024
Current report
•The percentage impacts of items on the effective tax rate were greater in the second quarter of fiscal 2025 due to the level of pretax income in the second quarter of fiscal 2025 compared to the second quarter of fiscal 2024.
Current report
•The second quarter of fiscal 2025 was increased by the impact of net unfavorable permanent book-to-tax differences and changes in unrecognized tax benefits.
Current report
•The second quarter of fiscal 2024 was impacted by increased foreign losses for which a tax benefit cannot be recognized.
Current report
Second quarter – Fiscal 2025 –Net income attributable to Tyson included the following items:
Current report
•$343 million pretax, or ($0.73) per diluted share, related to the recognition of legal contingency accruals.
Current report
•$43 million pretax, or ($0.10) per diluted share, related to network optimization plan charges.
Current report
•$23 million pretax, or ($0.05) per diluted share, of plant closures and disposal charges.
Current report
Six months – Fiscal 2025 –Net income attributable to Tyson included the following items:
Current report
•$343 million pretax, or ($0.73) per diluted share, related to the recognition of legal contingency accruals.
Current report
•$116 million pretax, or ($0.26) per diluted share, related to network optimization plan charges.
Current report
•$23 million pretax, or ($0.05) per diluted share, of plant closures and disposal charges.
Current report
Second quarter – Fiscal 2024 –Net income attributable to Tyson included the following items:
Current report
•$39 million pretax, or ($0.06) per diluted share, of plant closures and disposal charges.
Current report
Six months – Fiscal 2024 –Net income attributable to Tyson included the following items:
Current report
•$114 million pretax, or ($0.22) per diluted share, of plant closures and disposal charges.
Current report
•$80 million pretax, or ($0.22) per diluted share, of charges related to a production facility fire in the Netherlands and our subsequent decision to sell the facility.
Current report
•Sales Volume- Sales volume decreased in the second quarter of fiscal 2025 primarily due to lower head harvested, partially offset by higher average carcass weights. Sales volume for the first six months increased primarily due to higher average carcass weights.
Showing the first 40 of 51 passages. Open the source sections for the rest.
Removed paragraphs (23)
Previous report
•Beef – (1.2)%
Previous report
•Pork – 3.6%
Previous report
•Chicken – 8.6%
Previous report
•Prepared Foods – 8.5%
Previous report
•Decrease of $75 million due to plant closures and disposal charges.
Previous report
•Increase of $71 million related to network optimization plan charges.
Previous report
•Decrease of $7 million in donations.
Previous report
First quarter – Fiscal 2025
Previous report
First quarter – Fiscal 2024
Previous report
First quarter – Fiscal 2025 –Net income attributable to Tyson included the following items:
Previous report
First quarter – Fiscal 2024 –Net income attributable to Tyson included the following items:
Previous report
•$75 million pretax, or ($0.16) per diluted share, of plant closures and disposal charges.
Previous report
•Sales Volume- Sales volume increased due to higher average carcass weights and increased head harvested.
Previous 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.
Previous report
•Sales Volume - Sales volume increased primarily due to improved foodservice and export channels partially offset by a reduction in the retail channel.
Previous report
•Sales Volume – Sales volume decreased due to a challenging consumer environment primarily impacting our retail channel.
Previous report
•Average Sales Price – Average sales price increased slightly.
Previous 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.
Previous report
•Sales– Sales were relatively flat as increased volumes were mostly offset by foreign exchange translation impacts.
Previous 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.
Previous 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.
Previous report
•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 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.
Reworded paragraphs (52)
Previous 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.
Current wording
Operating income of $680 million for the first six months of fiscal 2025 was up 25% compared to the first six months of fiscal 2024 as we experienced higher operating income in our Chicken segment and International/Other, partially offset by lower operating income for our Beef, Pork and Prepared Foods segments. In the first six months of fiscal 2025, our operating income was impacted by $343 million of legal contingency accruals, $116 million in network optimization plan charges, $23 million of plant closures and disposal charges and $12 million in brand discontinuation charges. In the first six months ended March 30, 2024, our operating income was impacted by $114 million of plant closures and disposal charges, $80 million of costs related to a production facility fire in the Netherlands and our subsequent decision to sell the facility, $73 million in legal contingency accruals and $31 million of restructuring and related charges, partially offset by the benefit of $24 million of insurance proceeds, net of costs incurred related to facility fires.
Previous 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.
Current wording
According to the United States Department of Agriculture, domestic protein production (beef, pork, chicken and turkey) was flat in the second quarter of fiscal 2025 as compared to the same period in fiscal 2024. The Beef segment continues to experience limited supply of market-ready cattle 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 4.3% in the first quarter of fiscal 2025. Operating margins by segment were as follows:
Current wording
Our total operating margin was 0.8% in the second quarter of fiscal 2025. Operating margins by segment were as follows:
Previous wording
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 wording
In the first quarter of fiscal 2025, the Company initiated a network optimization plan to optimize our global operations and logistics network. We expect to incur costs related to the network optimization plan over a multi-year period. We recognized charges of $43 million and $116 million in the second quarter and first six months of fiscal 2025, respectively, related to the network optimization plan, which 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 segment and International/Other. All estimated charges related to actions approved through March 29, 2025 have been recognized and included $47 million that have resulted or will result in cash outflows and $69 million of non-cash for the first six months of fiscal 2025. We expect to incur additional charges in the future as additional actions are approved. In April 2025, following a strategic review of our domestic logistics and storage network, the Company approved a plan to execute various long-term cold storage service agreements and the sale of multiple Tyson-owned and operated distribution centers. For further description refer to Part I, Item I, Notes to the Consolidated Condensed Financial Statements, Note 5: Restructuring and Related Charges.
Previous 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.
Current wording
•Average Sales Price – Sales were positively impacted by higher average sales prices, which accounted for an increase of $348 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
•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.
Current wording
•Sales Volume – Sales were positively impacted by an increase in sales volume, which accounted for a $205 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
•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.
Current wording
•Cost of sales increased $268 million. Lower sales volume decreased cost of sales $3 million while higher input cost per pound increased cost of sales by $271 million.
Previous wording
•The $163 million impact of lower input cost per pound was impacted by:
Current wording
•The $271 million impact of higher input cost per pound was impacted by:
Previous wording
•Increase in cattle costs of approximately $40 million in our Beef segment.
Current wording
•Increase in cattle costs of approximately $470 million in our Beef segment.
Previous wording
•Increase in hog costs of approximately $60 million in our Pork segment.
Current wording
•Increase in hog costs of approximately $100 million in our Pork segment.
Previous wording
•Decrease of approximately $155 million in our Chicken segment related to decreased feed ingredient costs.
Current wording
•Decrease of approximately $110 million in our Chicken segment related to decreased feed ingredient costs.
Previous 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.
Current wording
•Decrease of $54 million in International/Other from costs recognized in fiscal 2024 related to a production facility fire in the Netherlands and the subsequent decision to sell the facility.
Previous wording
•Decrease in freight and transportation costs of approximately $40 million.
Current wording
•Decrease in freight and transportation costs of approximately $30 million.
Previous wording
•Remaining increase in costs across all of our segments primarily driven by net impacts on average cost per pound from mix changes.
Current wording
•Remaining decrease in costs across all of our segments primarily driven by net impacts on average cost per pound from mix changes and lower operating costs.
Previous wording
•Decrease of $73 million related to the recognition of legal contingency accruals in our Beef and Pork segments.
Current wording
•Decrease of $73 million related to the recognition of legal contingency accruals in our Beef and Pork segments in fiscal 2024.
Previous wording
•Decrease of $77 million in selling, general and administrative was primarily driven by:
Current wording
•Decrease of $54 million in selling, general and administrative was primarily driven by:
Previous wording
•Decrease of $23 million in marketing, advertising and promotion expenses.
Current wording
•Decrease of $18 million in marketing, advertising and promotion expenses.
Previous wording
•Decrease of $18 million in employee costs.
Current wording
•Decrease of $17 million in employee costs primarily from performance-based compensation.
Previous wording
•Decrease of $27 million in restructuring and related costs.
Current wording
•Decrease of $31 million in restructuring and related costs.
Previous wording
•The increase in interest income for the three months ended December 28, 2024 was primarily due to higher cash and cash equivalents held.
Current wording
•The increase in interest income for the second quarter and six months ended March 29, 2025 was primarily due to higher cash and cash equivalents held during the quarter.
Previous 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.
Current wording
•The increase in interest expense for the six months ended March 29, 2025 was primarily due to interest expense related to our 5.40% 2029 Notes and 5.70% 2034 Notes, partially offset by lower interest expense related to the repayment of the term loan due May 2026 in the second quarter of fiscal 2025 and the repayment of the August 2024 senior notes in the fourth quarter of fiscal 2024.
Previous 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.
Current wording
•Included $15 million of joint venture earnings and $6 million of foreign exchange gains in the second quarter of fiscal 2025. Included $27 million of joint venture earnings and $7 million of production facilities fire insurance proceeds, partially offset by $18 million of foreign exchange losses in the first six months of fiscal 2025.
Previous wording
•Included $19 million of foreign exchange gains and $10 million related to an amendment of a postretirement benefit plan.
Current wording
•Included $15 million of foreign exchange losses in the second quarter of fiscal 2024. Included $10 million of income related to an amendment of a postretirement benefit plan in the first six months of fiscal 2024.
Previous wording
•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 wording
•The effective tax rate for the first six months of fiscal 2025 was increased by changes in unrecognized tax benefits and decreased by the release of a $9 million valuation allowance on certain losses in the Netherlands due to tax legislation enacted in the first quarter of fiscal 2025.
Previous wording
•$6 million pretax, or ($0.01) per diluted share, of brand discontinuation charges.
Current wording
•$6 million pretax, or ($0.02) per diluted share, of brand discontinuation charges.
Previous wording
•$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 wording
•$54 million pretax, or ($0.15) per diluted share, of charges related to a production facility fire in the Netherlands and our subsequent decision to sell the facility.
Previous wording
•$30 million pretax, or ($0.06) per diluted share, of restructuring and related charges.
Current wording
•$31 million pretax, or ($0.06) per diluted share, of restructuring and related charges.
Previous 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.
Current wording
(a) Beef segment results for the three and six months ended March 29, 2025 included $16 million and $48 million, respectively, of network optimization plan charges and a $93 million legal contingency accrual. Beef segment results for the six months ended March 30, 2024 included a $45 million legal contingency accrual and $41 million of plant closures and disposal charges.
Previous wording
(b) Pork segment results for the three months ended December 30, 2023 included a $28 million legal contingency accrual.
Current wording
(b) Pork segment results for the three and six months ended March 29, 2025 included a $250 million legal contingency accrual. Pork segment results for the three and six months ended March 30, 2024 included $34 million of plant closures and disposal charges. Pork segment results for the six months ended March 30, 2024 included a $28 million legal contingency accrual.
Previous wording
(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 wording
(c) Chicken segment results for the three and six months ended March 29, 2025 included $21 million and $32 million, respectively, of network optimization plan charges, $6 million and $12 million, respectively, of brand discontinuation charges and $23 million of plant closures and disposal charges. Chicken segment results for the six months ended March 30, 2024 included $39 million of plant closures and disposal charges and $24 million of insurance proceeds, net of costs incurred.
Previous wording
(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 wording
(d) Prepared Foods segment results for the six months ended March 29, 2025 included $25 million of network optimization plan charges. Prepared Foods segment results for the six months ended March 30, 2024 included $24 million of restructuring and related charges.
Previous 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.
Current wording
(e) International/Other results for the three and six months ended March 29, 2025 included $6 million and $11 million, respectively, of network optimization plan charges. International/Other results for the three and six months ended March 30, 2024 included $54 million and $80 million, respectively, of costs, net of insurance proceeds, related to a fire at our production facility in the Netherlands and subsequent decision to sell.
Previous wording
•Average Sales Price - Average sales price increased primarily due to increased input costs and strong demand.
Current wording
•Average Sales Price - Average sales price increased in the second quarter and first six months of fiscal 2025 primarily due to increased input costs and strong demand. The change in average sales price excludes a $93 million reduction of Sales from the recognition of a legal contingency accrual recorded in the second quarter of fiscal 2025.
Previous wording
•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 wording
•Sales Volume- Sales volume decreased in the second quarter and first six months of fiscal 2025 due to production decreases associated with a plant closure in 2024 which were partly offset by production increases at other facilities and higher average carcass weights.
Previous wording
•Average Sales Price - Average sales price increased as demand for our pork products remained strong.
Current wording
•Average Sales Price - Average sales price increased in the second quarter and first six months of fiscal 2025 as demand for our pork products remained strong. The change in average sales price excludes a $250 million reduction of Sales from the recognition of a legal contingency accrual recorded in the second quarter of fiscal 2025.
Previous wording
•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 wording
•Operating Income (Loss) - Operating income (loss) decreased in the second quarter and first six months of fiscal 2025 due to compressed pork margins and the recognition of a legal contingency accrual in the second quarter of fiscal 2025, partially offset by lower operating costs, improved results in our live hog operations and lapping the impacts of plant closures and disposals recorded in the second quarter of fiscal 2024.
Previous wording
•Average Sales Price - Average sales price decreased due to the impact of lower input costs.
Current wording
•Average Sales Price - Average sales price decreased in the second quarter and first six months of fiscal 2025 primarily due to the impact of lower input costs.
Previous wording
•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 wording
•Operating Income - Operating income increased in the second quarter and first six months of fiscal 2025 driven by operational execution, improved volumes and $110 million and $265 million of net decreases in feed ingredient costs, respectively, which was partially offset by associated decreases in average sales price. Additionally, operating income in the second quarter was impacted by charges related to prior plant closures and disposals as well as network optimization plan charges. Operating income in the first six months of fiscal 2025 was impacted by reduced insurance proceeds, net of costs and network optimization plan charges, partially offset by lower plant closures and disposal charges.
Previous 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.
Current wording
•Operating Income (Loss) – Operating income increased in the second quarter and first six months of fiscal 2025 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, partly offset by network optimization charges.
Previous 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.
Current wording
•Non-cash items in net income primarily included depreciation and amortization of $700 million and $722 million for the six months ended March 29, 2025 and March 30, 2024, respectively.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
Additionally, in the second quarter of fiscal 2025, our operating income was impacted by $343 million of legal contingency accruals, $43 million in network optimization plan charges, $23 million of plant closures and disposal charges and $6 million in brand discontinuation charges. In the second quarter of fiscal 2024, our operating income was impacted by $54 million of costs related to a production facility fire in the Netherlands and our subsequent decision to sell the facility and $39 million of plant closures and disposal charges.
Current report — wording carried from elsewhere
•Average Sales Price – Sales were positively impacted by higher average sales prices, which accounted for an increase of $444 million, driven by increased pricing in our Beef, Pork and Prepared Foods segments, partially offset by lower average sales prices in our Chicken segment.
Current report — wording carried from elsewhere
•Increase in cattle costs of approximately $510 million in our Beef segment.
Current report — wording carried from elsewhere
•Increase in hog costs of approximately $160 million in our Pork segment.
Current report — wording carried from elsewhere
•Increase in raw material and other input costs of approximately $160 million in our Prepared Foods segment.
Current report — wording carried from elsewhere
•Decrease of approximately $265 million in our Chicken segment related to decreased feed ingredient costs.
Current report — wording carried from elsewhere
•Decrease in freight and transportation costs of approximately $70 million.
Current report — wording carried from elsewhere
•Remaining decrease in costs across all of our segments primarily driven by net impacts on average cost per pound from mix changes and lower operating costs.
Current report — wording carried from elsewhere
•Decrease of $131 million in selling, general and administrative was primarily driven by:
Current report — wording carried from elsewhere
•Decrease of $41 million in marketing, advertising and promotion expenses.
Current report — wording carried from elsewhere
•Increased foreign losses in fiscal 2024 resulted in a higher effective tax rate compared to fiscal 2025.
Current report — wording carried from elsewhere
•$12 million pretax, or ($0.03) per diluted share, of brand discontinuation charges.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•$73 million pretax, or ($0.16) per diluted share, related to network optimization plan charges.