What changed in this filing

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Item 1. Financial Statements

2022-05-09 compared with 2022-02-07 · 153 added, 100 removed, 622 unchanged (29% of the section changed)

3 unchanged sentences

(In millions, except per share data)

Three Months Ended

January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Sales $ 13,117 $ 11,300 $ 26,050 $ 21,760

25 unchanged sentences

(In millions)

Three Months Ended

January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Net Income $ 833 $ 477 $ 1,959 $ 949

12 unchanged sentences

(In millions, except share and per share data)

January 1, 2022 October 2, 2021

April 2, 2022 October 2, 2021

Current Assets:

26 unchanged sentences

Accumulated other comprehensive gain (loss) ( 144 ) ( 172 )

Treasury stock, at cost – 85 million shares at January 1, 2022 and 83 million shares at October 2, 2021 ( 4,394 ) ( 4,138 )

Treasury stock, at cost – 86 million shares at April 2, 2022 and 83 million shares at October 2, 2021 ( 4,516 ) ( 4,138 )

Total Tyson Shareholders’ Equity 19,014 17,723

6 unchanged sentences

(In millions)

Three Months Ended

January 1, 2022 January 2, 2021

Shares Amount Shares Amount

Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Shares Amount Shares Amount Shares Amount Shares Amount

Class A Common Stock:

4 unchanged sentences

Balance at beginning of period 4,471 4,411 4,486 4,433

Stock-based compensation ( 15 ) ( 22 )

Stock-based compensation and Other 39 32 24 10

Balance at end of period 4,510 4,443 4,510 4,443

18 unchanged sentences

Distributions to noncontrolling interest — — — (2)

Other ( 1 ) ( 5 ) 2 3

Total Equity Attributable to Noncontrolling Interests $ 142 $ 139 $ 142 $ 139

4 unchanged sentences

(In millions)

Three Months Ended

January 1, 2022 January 2, 2021

Six Months Ended

April 2, 2022 April 3, 2021

Cash Flows From Operating Activities:

9 unchanged sentences

Proceeds from sale of marketable securities 18 41

Acquisition of equity investments ( 96 ) —

Other, net 58 49

9 unchanged sentences

Effect of Exchange Rate Changes on Cash 6 10

Increase in Cash and Cash Equivalents and Restricted Cash 491 969

Decrease in Cash and Cash Equivalents and Restricted Cash ( 1,422 ) ( 494 )

Cash and Cash Equivalents and Restricted Cash at Beginning of Year 2,637 1,466

13 unchanged sentences

Actual results could differ from those estimates.

We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of January 1, 2022, and the results of operations for the three months ended January 1, 2022, and January 2, 2021.

We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of April 2, 2022, and the results of operations for the three and six months ended April 2, 2022, and April 3, 2021.

Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.

9 unchanged sentences

Consequently, this may subject us to future risk of material goodwill, intangible and long-lived asset impairments, increased reserves for uncollectible accounts and adjustments for inventory and market volatility for items subject to fair value measurements such as derivatives and investments.

There have been no material changes to the summary of certain accounting estimates and the description of the estimates and the levels of subjectivity and judgment they require found in our Annual Report on Form 10-K for the fiscal year ended October 2, 2021.

There have been no material changes to the summary of certain accounting estimates, the description of the estimates and the levels of subjectivity and judgment they require found in our Annual Report on Form 10-K for the fiscal year ended October 2, 2021.

Recently Issued Accounting Pronouncements

16 unchanged sentences

The business had a net carrying value of approximately $ 411 million, which included $ 44 million of working capital consisting of inventory, accounts receivable and accounts payable, $ 17 million of property, plant and equipment and $ 350 million of goodwill.

The goodwill is not deductible for tax purposes.

The goodwill was not deductible for tax purposes.

The Company concluded the business was not a significant disposal and did not represent a strategic shift, and therefore was not classified as a discontinued operation for any of the periods presented.

1 unchanged sentence

Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, livestock grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories.

At January 1, 2022, the cost of inventories was determined by either the first-in, first-out (“FIFO”) method or the weighted-average method, which is consistent with the methods used at October 2, 2021.

At April 2, 2022, the cost of inventories was determined by either the first-in, first-out (“FIFO”) method or the weighted-average method, which is consistent with the methods used at October 2, 2021.

The following table reflects the major components of inventory (in millions):

January 1, 2022 October 2, 2021

April 2, 2022 October 2, 2021

Processed products $ 2,778 $ 2,426

4 unchanged sentences

The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions):

January 1, 2022 October 2, 2021

April 2, 2022 October 2, 2021

Land $ 219 $ 210

8 unchanged sentences

Other current liabilities are as follows (in millions):

January 1, 2022 October 2, 2021

April 2, 2022 October 2, 2021

Accrued salaries, wages and benefits $ 774 $ 897

3 unchanged sentences

Total other current liabilities $ 2,309 $ 3,033

(a) $ 169 million and $ 127 million of funds held in an escrow account for litigation settlements were included as restricted cash within Other current assets in the Consolidated Condensed Balance Sheets as of January 1, 2022 and October 2, 2021, respectively.

(a) $ 64 million and $ 127 million of funds held in an escrow account for litigation settlements were included as restricted cash within Other current assets in the Consolidated Condensed Balance Sheets as of April 2, 2022 and October 2, 2021, respectively.

The major components of debt are as follows (in millions):

January 1, 2022 October 2, 2021

April 2, 2022 October 2, 2021

Revolving credit facility $ — $ —

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The facility will mature and the commitments thereunder will terminate in September 2026 with options for two one-year extensions.

At January 1, 2022, amounts available for borrowing under this facility totaled $ 2.25 billion and we had no borrowings and no outstanding letters of credit issued under this facility.

At January 1, 2022, we had $ 94 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon.

At April 2, 2022, amounts available for borrowing under this facility totaled $ 2.25 billion and we had no borrowings and no outstanding letters of credit issued under this facility.

At April 2, 2022, we had $ 93 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon.

Our letters of credit are issued primarily in support of workers’ compensation insurance programs and other legal obligations.

3 unchanged sentences

In December 2021, we amended our existing commercial paper program, which increased our maximum borrowing capacity to $ 1.5 billion.

As of January 1, 2022, we had no commercial paper outstanding .

As of April 2, 2022, we had no commercial paper outstanding .

Our ability to access commercial paper in the future may be limited or its costs increased.

June 2022 Notes

On March 15, 2022, we redeemed the $ 1 billion outstanding balance of the Senior Notes due June 2022 using cash on hand.

Debt Covenants

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and engage in certain consolidations, mergers and sales of assets.

We were in compliance with all debt covenants at January 1, 2022.

We were in compliance with all debt covenants at April 2, 2022.

Share Repurchases

As of January 1, 2022, 15.3 million shares remained available for repurchase under our share repurchase program.

As of April 2, 2022, 13.8 million shares remained available for repurchase under our share repurchase program.

The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, our working capital needs, markets, industry conditions, liquidity targets, limitations under our debt obligations and regulatory requirements.

1 unchanged sentence

A summary of share repurchases of our Class A stock is as follows (in millions):

Three Months Ended

January 1, 2022 January 2, 2021

Shares Dollars Shares Dollars

Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Shares Dollars Shares Dollars Shares Dollars Shares Dollars

Shares repurchased:

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Total share repurchases 2.0 $ 175 0.2 $ 17 6.2 $ 523 0.5 $ 34

Our effective tax rate was 20.2 % and 23.4 % for the first quarter of fiscal 2022 and 2021, respectively.

The effective tax rate for the first quarter of fiscal 2022 includes the impact of state taxes, offset by a $ 36 million benefit from the remeasurement of deferred income taxes, primarily due to legislation decreasing state tax rates enacted in the first quarter, and various other tax benefits.

The effective tax rate for the first quarter of fiscal 2021 was higher than the federal statutory tax rate primarily due to state taxes, partially offset by various tax benefits.

Unrecognized tax benefits were $ 152 million at January 1, 2022 and October 2, 2021.

Our effective tax rate was 23.4 % and 23.5 % for the second quarter of fiscal 2022 and 2021, respectively and 21.6 % and 23.5 % for the first six months of fiscal 2022 and 2021, respectively.

The effective tax rates for the second quarter and first six months of fiscal 2022 and 2021 were higher than the federal statutory tax rate primarily due to state taxes, partially offset by various tax benefits.

The effective tax rate for the first six months of fiscal 2022 also includes a $ 36 million benefit from the remeasurement of deferred income taxes, primarily due to legislation decreasing state tax rates enacted in the first quarter.

Unrecognized tax benefits were $ 157 million and $ 152 million at April 2, 2022 and October 2, 2021, respectively.

We do not expect material changes to our unrecognized tax benefits during the next twelve months.

In December 2021, we received an assessment from the Mexican tax authorities related to the 2015 sale of our direct and indirect equity interests in subsidiaries which held our Mexico operations.

The assessment totaled approximately $ 380 million ( 7.8 billion Mexican pesos), which includes tax, inflation adjustment, interest and penalties.

At that time, the assessment totaled approximately $ 380 million ( 7.8 billion Mexican pesos), which includes tax, inflation adjustment, interest and penalties.

We believe the assertions made in the assessment letter have no merit and will defend our positions through the Mexican administrative appeal process and litigation, if necessary.

2 unchanged sentences

The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data):

Three Months Ended

January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Net income $ 833 $ 477 $ 1,959 $ 949

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Class B $ 0.414 $ 0.401 $ 0.842 $ 0.824

Approximately 2 million and 6 million of our stock-based compensation shares were antidilutive for the three months ended January 1, 2022 and January 2, 2021, respectively.

Approximately 2 million of our stock-based compensation shares were antidilutive for the three and six months ended April 2, 2022.

Approximately 5 million of our stock-based compensation shares were antidilutive for the three and six months ended April 3, 2021.

These shares were not included in the diluted earnings per share calculation.

12 unchanged sentences

Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features.

No significant concentrations of credit risk related to our derivative financial instruments existed at January 1, 2022.

No significant concentrations of credit risk related to our derivative financial instruments existed at April 2, 2022.

We had the following net aggregated outstanding notional amounts related to our derivative financial instruments:

in millions, except soybean meal tons Metric January 1, 2022 October 2, 2021

in millions, except soybean meal tons Metric April 2, 2022 October 2, 2021

Corn Bushels 30 37

11 unchanged sentences

For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings.

As of January 1, 2022, we had $ 15 million of realized losses related to treasury rate locks in connection with the issuance of the 2026, 2029 and 2048 Notes, which will be reclassified to earnings over the lives of these notes.

During the three months ended January 1, 2022 and January 2, 2021, we did not reclassify significant pretax gains or losses into earnings as a result of the discontinuance of cash flow hedges.

For the three months ended January 1, 2022 and January 2, 2021, we had no gains or losses recognized in OCI on derivatives designated as cash flow hedges.

As of April 2, 2022, we had $ 14 million of realized losses related to treasury rate locks in connection with the issuance of the 2026, 2029 and 2048 Notes, which will be reclassified to earnings over the lives of these notes.

During the six months ended April 2, 2022 and April 3, 2021, we did not reclassify significant pretax gains or losses into earnings as a result of the discontinuance of cash flow hedges.

For the six months ended April 2, 2022 and April 3, 2021, we had no gains or losses recognized in OCI on derivatives designated as cash flow hedges.

Fair Value Hedges

3 unchanged sentences

We include the gain or loss on the hedged items (e.g., livestock purchase firm commitments) in the same line item, Cost of Sales, as the offsetting gain or loss on the related livestock forward position.

Ineffectiveness related to fair value hedges was not significant for the three months ended January 1, 2022, and January 2, 2021.

The following table sets forth the carrying amount of fair value hedge (assets) liabilities as of January 1, 2022 and October 2, 2021 (in millions):

Consolidated Condensed Balance Sheets Classification January 1, 2022 October 2, 2021

Ineffectiveness related to fair value hedges was not significant for the three and six months ended April 2, 2022, and April 3, 2021.

The following table sets forth the carrying amount of fair value hedge (assets) liabilities as of April 2, 2022 and October 2, 2021 (in millions):

Consolidated Condensed Balance Sheets Classification April 2, 2022 October 2, 2021

Inventory $ 23 $ ( 6 )

5 unchanged sentences

The following table sets forth the total amounts of each income and expense line item presented in the Consolidated Condensed Statements of Income in which the effects of hedges are recorded (in millions):

Consolidated Condensed

Statements of Income Classification Three Months Ended

January 1, 2022 January 2, 2021

Consolidated Condensed Statements of Income Classification Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Cost of Sales $ 11,382 $ 10,047 $ 22,300 $ 19,330

2 unchanged sentences

The following table sets forth the pretax impact of the cash flow, fair value and undesignated derivative instruments in the Consolidated Condensed Statements of Income (in millions):

Consolidated Condensed Statements of Income Classification Three Months Ended

January 1, 2022 January 2, 2021

Consolidated Condensed Statements of Income Classification Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Cost of Sales Gain (Loss) on cash flow hedges reclassified from OCI to Earnings:

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The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions):

January 1, 2022 Level 1 Level 2 Level 3 Netting (a) Total

April 2, 2022 Level 1 Level 2 Level 3 Netting (a) Total

Other Current Assets:

26 unchanged sentences

(a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us.

Additionally, at January 1, 2022, and October 2, 2021, we had $ 23 million and $ 56 million, respectively, of net cash collateral with various counterparties where master netting arrangements exist and held no cash collateral.

Additionally, at April 2, 2022, and October 2, 2021, we had $ 12 million and $ 56 million, respectively, of net cash collateral with various counterparties where master netting arrangements exist and held no cash collateral.

The following table provides a reconciliation between the beginning and ending balance of marketable debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions):

Three Months Ended

January 1, 2022 January 2, 2021

Six Months Ended

April 2, 2022 April 3, 2021

Balance at beginning of year $ 48 $ 53

5 unchanged sentences

Balance at end of period $ 46 $ 53

Total gains (losses) for the three month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period

Total gains (losses) for the six month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

14 unchanged sentences

The following table sets forth our available-for-sale securities’ amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions):

January 1, 2022 October 2, 2021

April 2, 2022 October 2, 2021

Cost Basis Fair

13 unchanged sentences

We consider many factors in determining whether a loss is credit-related, including the financial condition and near-term prospects of the issuer, borrower repayment characteristics for asset-backed securities, and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery.

We recognized no direct write-offs or allowances for credit losses in earnings for the three months ended January 1, 2022, and January 2, 2021.

We recognized no direct write-offs or allowances for credit losses in earnings for the three and six months ended April 2, 2022, and April 3, 2021.

Deferred Compensation Assets

9 unchanged sentences

Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges and, with respect to our equity investments without readily determinable fair values, recorded by applying the measurement alternative for which such investments are recorded at cost and adjusted for an observable price change in an orderly transaction for an identical or similar investment of the same issuer.

In the three months ended January 1, 2022, we recognized a gain of $ 30 million in Other, net in the Consolidated Condensed Statements of Income, based upon an observable price change.

In the six months ended April 2, 2022, we recognized gains of $ 37 million in Other, net in the Consolidated Condensed Statements of Income, based upon observable price changes.

Equity investments without readily determinable fair values are measured using Level 3 inputs and are included in Other Assets in the Consolidated Condensed Balance Sheets.

We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the three months ended January 2, 2021.

We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the six months ended April 3, 2021.

Other Financial Instruments

1 unchanged sentence

Fair value and carrying value for our debt are as follows (in millions):

January 1, 2022 October 2, 2021

April 2, 2022 October 2, 2021

Fair Value Carrying Value Fair Value Carrying Value

2 unchanged sentences

The before and after-tax changes in the components of other comprehensive income (loss) are as follows (in millions):

Three Months Ended

January 1, 2022 January 2, 2021

Before Tax Tax After Tax Before Tax Tax After Tax

Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax

Derivatives accounted for as cash flow hedges:

(Gain) loss reclassified to interest expense $ 1 $ — $ 1 $ 1 $ — $ 1 $ 1 $ — $ 1 $ 1 $ — $ 1

(Gain) loss reclassified to cost of sales — — — — — — — — — 1 — 1

28 unchanged sentences

Information on segments and a reconciliation to income before income taxes are as follows (in millions):

Three Months Ended

January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Beef $ 5,034 $ 4,046 $ 10,036 $ 8,033

5 unchanged sentences

Total Sales $ 13,117 $ 11,300 $ 26,050 $ 21,760

Three Months Ended

January 1, 2022 January 2, 2021

Three Months Ended Six Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Operating Income (Loss):

$ 638 $ 445 $ 1,594 $ 973

Pork 59 67 223 183

198 6 338 ( 210 )

Prepared Foods 263 217 449 483

International/Other 9 11

International/Other (c)

( 2 ) ( 15 ) 7 ( 4 )

Total Operating Income 1,156 720 2,611 1,425

Total other expense 45 89

Total Other (Income) Expense 69 96 114 185

Income before Income Taxes $ 1,087 $ 624 $ 2,497 $ 1,240

(a) Beef segment results for the three months ended January 2, 2021 included a $ 55 million gain from the recovery of cattle inventory from a cattle supplier that misappropriated Company funds.

(b) Chicken segment results for the three months ended January 1, 2022 included $ 23 million of insurance proceeds, net of costs incurred, recognized in Cost of Sales.

Additionally, Chicken segment results for the three months ended January 2, 2021 included a $ 320 million charge related to the recognition of a legal contingency accrual.

(a) Beef segment results for the six months ended April 3, 2021 included a $ 55 million gain from the recovery of cattle inventory from a cattle supplier that misappropriated Company funds.

(b) Chicken segment results for the three months ended April 2, 2022 included $ 5 million of costs related to a fire at one of our production facilities, net of insurance proceeds.

Chicken segment results for the six months ended April 2, 2022 included $ 18 million of insurance proceeds, net of costs incurred, recognized in Cost of Sales.

Additionally, Chicken segment results for the six months ended April 3, 2021 included a $ 320 million charge related to the recognition of a legal contingency accrual.

The accrual was recorded as a reduction to Sales pursuant to FASB guidance related to accounting for revenue from contracts with customers.

(c) International/Other results for the three and six months ended April 3, 2021 included a $ 19 million loss related to the relocation of a production facility in China.

The following tables further disaggregate our sales to customers by major distribution channels (in millions):

Three months ended January 1, 2022

Three months ended April 2, 2022

Foodservice (b)

9 unchanged sentences

Total $ 5,752 $ 3,873 $ 1,961 $ 1,531 $ — $ 13,117

Three months ended January 2, 2021

Three months ended April 3, 2021

Foodservice (b)

9 unchanged sentences

Total $ 5,328 $ 3,189 $ 1,572 $ 1,211 $ — $ 11,300

Six months ended April 2, 2022

Foodservice (b)

International (c)

Industrial and Other (d)

Intersegment Total

Beef $ 4,431 $ 2,500 $ 1,664 $ 1,165 $ 276 $ 10,036

Pork 908 258 571 799 655 3,191

Chicken 3,332 3,150 498 933 63 7,976

Prepared Foods 2,735 1,826 90 75 — 4,726

International/Other — — 1,115 — — 1,115

Intersegment — — — — ( 994 ) ( 994 )

Total $ 11,406 $ 7,734 $ 3,938 $ 2,972 $ — $ 26,050

Six months ended April 3, 2021

Foodservice (b)

International (c)

Industrial and Other (d)

Intersegment Total

Beef $ 4,170 $ 1,766 $ 1,211 $ 691 $ 195 $ 8,033

Pork 842 193 589 703 589 2,916

Chicken 3,012 2,541 318 491 22 6,384

Prepared Foods 2,609 1,527 61 80 — 4,277

International/Other — — 956 — — 956

Intersegment — — — — ( 806 ) ( 806 )

Total $ 10,633 $ 6,027 $ 3,135 $ 1,965 $ — $ 21,760

(a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores and internet-based retailers .

2 unchanged sentences

(d) Includes sales to industrial food processing companies that further process our product to sell to end consumers and any remaining sales not included in the Retail, Foodservice or International categories.

For the three months ended January 2, 2021, the Chicken segment included a $ 320 million reduction in Other due to the recognition of a legal contingency accrual.

For the six months ended April 3, 2021, the Chicken segment included a $ 320 million reduction in Other due to the recognition of a legal contingency accrual.

COMMITMENTS AND CONTINGENCIES

We guarantee obligations of certain outside third parties, consisting primarily of grower loans, which are substantially collateralized by the underlying assets.

The remaining terms of the underlying obligations cover periods up to 10 years, and the maximum potential amount of future payments as of January 1, 2022, was no t significant.

The remaining terms of the underlying obligations cover periods up to 9 years, and the maximum potential amount of future payments as of April 2, 2022, was no t significant.

The likelihood of material payments under these guarantees is not considered probable.

At January 1, 2022 and October 2, 2021, no significant liabilities for guarantees were recorded.

At April 2, 2022 and October 2, 2021, no significant liabilities for guarantees were recorded.

We have cash flow assistance programs in which certain livestock suppliers participate.

3 unchanged sentences

Our maximum commitment associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets.

The potential maximum commitment as of January 1, 2022 was approximately $ 293 million.

The total receivables under these programs were $ 5 million at January 1, 2022 and October 2, 2021.

The potential maximum commitment as of April 2, 2022 was approximately $ 295 million.

The total receivables under these programs were $ 5 million at April 2, 2022 and October 2, 2021.

These receivables are included, net of allowance for uncollectible amounts, in Accounts Receivable in our Consolidated Condensed Balance Sheets.

Even though these programs are limited to the net tangible assets of the participating livestock suppliers, we also manage a portion of our credit risk associated with these programs by obtaining security interests in livestock suppliers’ assets.

After analyzing residual credit risks and general market conditions, we have no allowance for these programs’ estimated uncollectible receivables at January 1, 2022, and October 2, 2021.

After analyzing residual credit risks and general market conditions, we have no allowance for these programs’ estimated uncollectible receivables at April 2, 2022, and October 2, 2021.

When constructing new facilities or making major enhancements to existing facilities, we will occasionally enter into incentive agreements with local government agencies in order to reduce certain state and local tax expenditures.

Certain arrangements may require cash to be deposited into a fund to cover future expenditures.

These funds are generally considered restricted cash, which is reported in the Consolidated Condensed Balance Sheets in Other Assets, and totaled $ 3 million at January 1, 2022 and October 2, 2021.

These funds are generally considered restricted cash, which is reported in the Consolidated Condensed Balance Sheets in Other Assets.

We had no deposits at April 2, 2022 and $ 3 million of deposits at October 2, 2021.

Additionally, under certain agreements, we transfer the related assets to various local government entities and receive Industrial Revenue Bonds.

1 unchanged sentence

The Industrial Revenue Bonds and the associated obligations for the leases of the facilities offset, and the underlying assets remain in property, plant and equipment.

At January 1, 2022, the total amount under these types of arrangements totaled $ 717 million.

At April 2, 2022, the total amount under these types of arrangements totaled $ 717 million.

Contingencies

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Listed below are certain claims made against the Company for which the magnitude of the potential exposure could be material to the Company’s Consolidated Financial Statements.

There were no significant changes to our loss contingency accruals reflected in the Company's Condensed Consolidated Statement of Income for the three months ended January 1, 2022.

There were no significant changes to our loss contingency accruals reflected in the Company’s Condensed Consolidated Statements of Income for the three and six months ended April 2, 2022.

Broiler Antitrust Civil Litigation

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Since the original filing, certain putative class members have opted out of the matter and are proceeding with individual direct actions making similar claims, and others may do so in the future.

On January 19, 2021, we announced that we had reached agreement to settle certain class claims related to the Broiler Antitrust Civil Litigation.

On January 19, 2021, we announced that we had reached agreements to settle certain class claims related to the Broiler Antitrust Civil Litigation.

Settlement terms were reached with the putative Direct Purchaser Plaintiff Class, the putative Commercial and Institutional Indirect Purchaser Plaintiff Class and the putative End-User Plaintiff Class (collectively, the “Classes”).

Under the terms of the settlements, we have agreed to pay the Classes an aggregate amount of $ 221.5 million in settlement of all outstanding claims brought by the Classes.

Under the terms of the settlements, we agreed to pay the Classes an aggregate amount of $ 221.5 million in settlement of all outstanding claims brought by the Classes.

On February 23, 2021, March 22, 2021 and October 15, 2021, the Court granted preliminary approval of the settlements with the putative Direct Purchaser Plaintiff Class, the putative End-User Plaintiff Class and the putative Commercial and Institutional Indirect Purchaser Plaintiff Class, respectively.

On June 29, 2021 and December 20, 2021, the Court granted final approval to the settlements with the Direct Purchaser Plaintiff Class and the End-User Plaintiff Class, respectively.

The settlement with the putative Commercial and Institutional Indirect Purchaser Plaintiff Class remains subject to final court approval.

On June 29, 2021, December 20, 2021 and April 18, 2022, the Court granted final approval to the settlements with the Direct Purchaser Plaintiff Class, the End-User Plaintiff Class and the Commercial and Institutional Indirect Purchaser Plaintiff Class, respectively.

The foregoing settlements do not settle claims made by plaintiffs who opt out of the Classes in the Broiler Antitrust Civil Litigation.

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On June 10, 2020, we announced that we uncovered information in connection with the grand jury subpoena that we had previously self-reported to the DOJ and have been fully cooperating with the DOJ as part of our application for leniency under the DOJ’s Corporate Leniency Program.

Subsequently, the DOJ has announced indictments against additional individuals, as well as other poultry processing companies, and alleging a conspiracy to fix prices and rig bids for broiler chicken products from at least 2012 until at least early 2019.

Subsequently, the DOJ has announced indictments against additional individuals, as well as other poultry processing companies, alleging a conspiracy to fix prices and rig bids for broiler chicken products from at least 2012 until at least early 2019.

In August 2021, the Company was granted conditional leniency by the DOJ for the matters we self-reported, which means that provided the Company continues to fully cooperate with the DOJ, neither the Company nor any of our cooperating employees will face prosecution or criminal fines or penalties.

4 unchanged sentences

The Company has not recorded any liability for the foregoing matters as it does not believe a loss is probable or reasonably estimable at this time because the proceedings are in preliminary stages.

In addition, we are cooperating with various state governmental agencies and officials, including the Offices of the Attorney General for Florida and Louisiana, investigating or otherwise seeking information, testimony and/or documents, regarding the conduct alleged in the Broiler Antitrust Civil Litigation and related matters.

In addition, we are fully cooperating with various state governmental agencies and officials, including the Offices of the Attorney General for Florida and Louisiana, investigating or otherwise seeking information, testimony and/or documents, regarding the conduct alleged in the Broiler Antitrust Civil Litigation and related matters.

Broiler Chicken Grower Litigation

5 unchanged sentences

In June 2021, we reached an agreement to settle with the putative class of broiler chicken farmers all claims raised in this consolidated action on terms not material to the Company for which the Company recorded an accrual in its Consolidated Financial Statements as of October 2, 2021.

On August 23, 2021, the Court granted preliminary approval of the settlement, and a final fairness hearing is scheduled for February 18, 2022.

The Court granted preliminary approval of the settlement on August 23, 2021 and final approval on February 18, 2022.

Pork Antitrust Litigation

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Since the original filing, certain putative class members have opted out of the matter and are proceeding with individual direct actions making similar claims, and others may do so in the future.

The Company has not recorded any liability for this matter as of January 1, 2022 as it does not believe a loss is probable or reasonably estimable because the Company believes that it has valid and meritorious defenses against the allegations and because the classes have not yet been defined or certified by the court.

The Company has not recorded any liability for this matter as it does not believe a loss is probable or reasonably estimable because the Company believes that it has valid and meritorious defenses against the allegations and because the classes have not yet been defined or certified by the court.

The Offices of the Attorney General in New Mexico and Alaska have filed complaints against us and certain of our pork subsidiaries, as well as several other pork processing companies and Agri Stats.

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Beef Antitrust Litigation

On April 23, 2019, a putative class action complaint was filed against us and our beef and pork subsidiary, Tyson Fresh Meats, Inc., as well as other beef packer defendants, in the United States District Court for the Northern District of Illinois.

On April 23, 2019, a putative class action complaint was filed against us and our beef and pork subsidiary, Tyson Fresh Meats, Inc.

(“Tyson Fresh Meats”), as well as other beef packer defendants, in the United States District Court for the Northern District of Illinois.

The plaintiffs allege that the defendants engaged in a conspiracy from January 2015 to the present to reduce fed cattle prices in violation of federal antitrust laws, the Grain Inspection, Packers and Stockyards Act of 1921, and the Commodities Exchange Act by periodically reducing their slaughter volumes so as to reduce demand for fed cattle, curtailing their purchases and slaughters of cash-purchased cattle during those same periods, coordinating their procurement practices for fed cattle settled on a cash basis, importing foreign cattle at a loss so as to reduce domestic demand, and closing and idling plants.

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On February 18, 2021, we moved to dismiss the amended complaints, and on September 23, 2021, the court granted the motion with respect to certain state law claims but denied the motion with respect to the plaintiffs’ federal antitrust claims.

The Company has not recorded any liability for this matter as of January 1, 2022 as it does not believe a loss is probable or reasonably estimable at this time because the Company believes that it has valid and meritorious defenses against the allegations and because the classes have not yet been defined or certified by the court.

The Company has not recorded any liability for this matter as it does not believe a loss is probable or reasonably estimable at this time because the Company believes that it has valid and meritorious defenses against the allegations and because the classes have not yet been defined or certified by the court.

On April 26, 2019, a putative class of indirect purchasers filed a class action complaint against us, other beef packers, and Agri Stats in the United States District Court for the District of Minnesota.

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Additional complaints have been filed on behalf of a putative class of direct purchasers of beef containing allegations of violations of Section 1 of the Sherman Act based on an alleged conspiracy to artificially fix, raise, and stabilize the wholesale price for beef, as well as on behalf of a putative class of commercial and institutional indirect purchasers of beef containing allegations of violations of Section 1 of the Sherman Act, various state antitrust laws and unjust enrichment based on an alleged conspiracy to artificially inflate the price for beef.

On September 28, 2020, the court granted our motion to dismiss the complaint.

On December 28, 2020, the plaintiffs filed amended complaints.

On February 18, 2021, we moved to dismiss the plaintiffs’ amended complaints, and on September 23, 2021, the court granted the motion with respect to certain state law claims but denied the motion with respect to the plaintiffs’ federal antitrust claims.

Since the original filing, certain putative class members have opted out of the matter and are proceeding with individual direct actions making similar claims, and others may do so in the future.

On May 22, 2020, December 23, 2020 and October 29, 2021, we received civil investigative demands ("CIDs") from DOJ's Antitrust Division.

On February 18, 2022, a putative class action was commenced against us, Tyson Fresh Meats, and other beef packer defendants in the Supreme Court of British Columbia styled Bui v.

Cargill, Incorporated et al.

The plaintiff alleges that the defendants conspired to fix, maintain, increase, or control the price of beef, as well as to fix, maintain, control, prevent, or lessen the production or supply of beef by agreeing to reduce the number of cattle slaughtered, reduce slaughter capacity, refrain from increasing slaughter and beef processing capacity, limit purchases of cattle on the cash market, and coordinate purchases of and bids for cattle to lower the supply of fed cattle.

The plaintiff advances causes of action under the Competition Act, civil conspiracy, unjust enrichment, and the Civil Code of Québec.

The plaintiff seeks to certify a class comprised of all persons or entities in Canada who directly or indirectly purchased beef in Canada, either for resale or for their own consumption between January 1, 2015, and the present and seeks declarations regarding the alleged conspiracy, general damages, aggravated, exemplary, and punitive damages, injunctive relief, costs, and interest.

On March 24, 2022, a putative class action was commenced against the same defendants in the Superior Court of Québec styled De Bellefeuille v.

Cargill, Incorporated et al.

The plaintiff is making substantially the same allegations as those made in the British Columbia action.

On behalf of the putative class of persons who purchased beef in Québec since January 1, 2015, the plaintiff is seeking compensatory damages, costs of investigation and interest.

The Company has not recorded any liability for the foregoing matters as it does not believe a loss is probable or reasonably estimable at this time because the proceedings are in preliminary stages.

On May 22, 2020, December 23, 2020 and October 29, 2021, we received civil investigative demands (“CIDs”) from the DOJ’s Civil Antitrust Division.

The CIDs request information related to the fed cattle and beef packing markets.

We have been cooperating with the DOJ’s Antitrust Division with respect to the CIDs.

We have been cooperating with the DOJ with respect to the CIDs.

The Offices of the Attorney General for multiple states are participating in the investigation and coordinating with the DOJ.

We recently received a subpoena dated April 21, 2022 from the New York Attorney General’s Bureau of Consumer Frauds & Protection seeking information regarding our sales, prices and production costs of beef, pork and chicken products.

We are currently evaluating the scope of the subpoena.

Wage Rate Litigation

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The court otherwise denied the defendants’ motions to dismiss and sustained claims based on alleged conspiracies to fix wages and exchange information against five other defendants.

The parties are now conducting discovery.

The plaintiffs filed a second amended consolidated complaint on November 2, 2020.

We moved to dismiss the complaint on December 18, 2020 based on a lack of standing to assert claims on behalf of the purported class.

The court denied the motion to dismiss on March 10, 2021.

On February 16, 2022, the plaintiffs filed a third amended consolidated complaint naming additional poultry processors as defendants and expanding the scope of the claims to include employees at hatcheries and feed mills.

We moved to dismiss the claims related to hatchery and feed mill employees.

The motion to dismiss is currently pending.

In the third quarter of fiscal 2021, the Company recorded an accrual for the estimated probable losses that it expects to incur for this matter in the Company’s Consolidated Financial Statements.

The DOJ’s Antitrust Division has opened a civil investigation into poultry human resources.

We will fully cooperate with the investigation.

Other Matters

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements