3 unchanged sentences
(In millions, except per share data)
−Removed: Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Sales $ 13,495 $ 12,478 $ 39,545 $ 34,238
25 unchanged sentences
(In millions)
−Removed: Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Net Income $ 753 $ 753 $ 2,712 $ 1,702
12 unchanged sentences
(In millions, except share and per share data)
−Removed: April 2, 2022 October 2, 2021
+Added: July 2, 2022 October 2, 2021
Current Assets:
26 unchanged sentences
Accumulated other comprehensive gain (loss) ( 255 ) ( 172 )
−Removed: Treasury stock, at cost – 86 million shares at April 2, 2022 and 83 million shares at October 2, 2021 ( 4,516 ) ( 4,138 )
+Added: Treasury stock, at cost – 88 million shares at July 2, 2022 and 83 million shares at October 2, 2021 ( 4,679 ) ( 4,138 )
Total Tyson Shareholders’ Equity 19,355 17,723
6 unchanged sentences
(In millions)
−Removed: Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Shares Amount Shares Amount Shares Amount Shares Amount
33 unchanged sentences
(In millions)
−Removed: Six Months Ended
−Removed: April 2, 2022 April 3, 2021
+Added: Nine Months Ended
+Added: July 2, 2022 July 3, 2021
Cash Flows From Operating Activities:
21 unchanged sentences
Effect of Exchange Rate Changes on Cash ( 18 ) 11
−Removed: Decrease in Cash and Cash Equivalents and Restricted Cash ( 1,422 ) ( 494 )
+Added: (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash ( 1,581 ) 342
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.
−Removed: 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.
+Added: 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 July 2, 2022 and the results of operations for the three and nine months ended July 2, 2022 and July 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.
23 unchanged sentences
ACQUISITIONS AND DISPOSITIONS
+Added: In the fourth quarter of fiscal 2022, we entered into an agreement with Saudi Arabia-based Tanmiah Food Company, through which we will acquire a 60 % equity stake in Supreme Foods Processing Company, a producer and distributor of value-added and cooked chicken and beef products, and a 15 % equity stake in Agricultural Development Company, a fully integrated poultry company, for a total purchase price of approximately $ 70 million.
+Added: The transaction is subject to customary adjustments and government approval and is expected to close in calendar year 2022.
In the third quarter of fiscal 2021, we acquired a 49 % minority interest in a Malaysian producer of feed and poultry products for $ 44 million in addition to future contingent payments of up to approximately $ 65 million.
7 unchanged sentences
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.
−Removed: 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.
+Added: At July 2, 2022, the cost of inventories was determined by either the first-in, first-out 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):
−Removed: April 2, 2022 October 2, 2021
+Added: July 2, 2022 October 2, 2021
Processed products $ 3,079 $ 2,426
4 unchanged sentences
The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions):
−Removed: April 2, 2022 October 2, 2021
+Added: July 2, 2022 October 2, 2021
Land $ 215 $ 210
8 unchanged sentences
Other current liabilities are as follows (in millions):
−Removed: April 2, 2022 October 2, 2021
+Added: July 2, 2022 October 2, 2021
Accrued salaries, wages and benefits $ 879 $ 897
3 unchanged sentences
Total other current liabilities $ 2,309 $ 3,033
−Removed: (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.
+Added: (a) $ 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 Sheet as of October 2, 2021 and no funds were held in the escrow account as of July 2, 2022.
The major components of debt are as follows (in millions):
−Removed: April 2, 2022 October 2, 2021
+Added: July 2, 2022 October 2, 2021
Revolving credit facility $ — $ —
23 unchanged sentences
The facility will mature and the commitments thereunder will terminate in September 2026 with options for two one-year extensions.
−Removed: 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.
−Removed: 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.
+Added: At July 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.
+Added: At July 2, 2022, we had $ 101 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.
−Removed: As of April 2, 2022, we had no commercial paper outstanding .
+Added: As of July 2, 2022, we had no commercial paper outstanding .
Our ability to access commercial paper in the future may be limited or its costs increased.
15 unchanged sentences
and engage in certain consolidations, mergers and sales of assets.
−Removed: We were in compliance with all debt covenants at April 2, 2022.
+Added: We were in compliance with all debt covenants at July 2, 2022.
Share Repurchases
−Removed: As of April 2, 2022, 13.8 million shares remained available for repurchase under our share repurchase program.
+Added: As of July 2, 2022, 12.0 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):
−Removed: Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Shares Dollars Shares Dollars Shares Dollars Shares Dollars
3 unchanged sentences
Total share repurchases 1.9 $ 170 0.2 $ 16 8.1 $ 693 0.7 $ 50
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Unrecognized tax benefits were $ 157 million and $ 152 million at April 2, 2022 and October 2, 2021, respectively.
+Added: Our effective tax rate was 23.6 % and 22.1 % for the third quarter of fiscal 2022 and 2021, respectively and 22.1 % and 22.9 % for the first nine months of fiscal 2022 and 2021, respectively.
+Added: The effective tax rates for the third quarter and first nine 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.
+Added: The effective tax rate for the first nine 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.
+Added: Unrecognized tax benefits were $ 160 million and $ 152 million at July 2, 2022 and October 2, 2021, respectively.
We do not expect material changes to our unrecognized tax benefits during the next twelve months.
5 unchanged sentences
The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data):
−Removed: Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Net income $ 753 $ 753 $ 2,712 $ 1,702
21 unchanged sentences
Class B $ 0.414 $ 0.400 $ 1.256 $ 1.224
−Removed: Approximately 2 million of our stock-based compensation shares were antidilutive for the three and six months ended April 2, 2022.
−Removed: Approximately 5 million of our stock-based compensation shares were antidilutive for the three and six months ended April 3, 2021.
+Added: Approximately 2 million of our stock-based compensation shares were antidilutive for the three and nine months ended July 2, 2022.
+Added: Approximately 2 million and 4 million of our stock-based compensation shares were antidilutive for the three and nine months ended July 3, 2021, respectively.
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.
−Removed: No significant concentrations of credit risk related to our derivative financial instruments existed at April 2, 2022.
+Added: No significant concentrations of credit risk related to our derivative financial instruments existed at July 2, 2022.
We had the following net aggregated outstanding notional amounts related to our derivative financial instruments:
−Removed: in millions, except soybean meal tons Metric April 2, 2022 October 2, 2021
+Added: in millions, except soybean meal tons Metric July 2, 2022 October 2, 2021
Corn Bushels 27 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: As of July 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.
+Added: During the nine months ended July 2, 2022 and July 3, 2021, we did not reclassify significant pretax gains or losses into earnings as a result of the discontinuance of cash flow hedges.
+Added: For the nine months ended July 2, 2022 and July 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.
−Removed: Ineffectiveness related to fair value hedges was not significant for the three and six months ended April 2, 2022, and April 3, 2021.
−Removed: 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):
−Removed: Consolidated Condensed Balance Sheets Classification April 2, 2022 October 2, 2021
+Added: Ineffectiveness related to fair value hedges was not significant for the three and nine months ended July 2, 2022, and July 3, 2021.
+Added: The following table sets forth the carrying amount of fair value hedge (assets) liabilities as of July 2, 2022 and October 2, 2021 (in millions):
+Added: Consolidated Condensed Balance Sheets Classification July 2, 2022 October 2, 2021
Inventory $ ( 4 ) $ ( 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):
−Removed: Consolidated Condensed Statements of Income Classification Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Consolidated Condensed Statements of Income Classification Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Cost of Sales $ 11,884 $ 10,858 $ 34,184 $ 30,188
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):
−Removed: Consolidated Condensed Statements of Income Classification Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Consolidated Condensed Statements of Income Classification Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Cost of Sales Gain (Loss) on cash flow hedges reclassified from OCI to Earnings:
29 unchanged sentences
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):
−Removed: April 2, 2022 Level 1 Level 2 Level 3 Netting (a) Total
+Added: July 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.
−Removed: 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.
+Added: Additionally, at July 2, 2022, and October 2, 2021, we had $ 60 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):
−Removed: Six Months Ended
−Removed: April 2, 2022 April 3, 2021
+Added: Nine Months Ended
+Added: July 2, 2022 July 3, 2021
Balance at beginning of year $ 48 $ 53
5 unchanged sentences
Balance at end of period $ 38 $ 49
−Removed: 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
+Added: Total gains (losses) for the nine 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):
−Removed: April 2, 2022 October 2, 2021
+Added: July 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.
−Removed: 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.
+Added: We recognized no direct write-offs or allowances for credit losses in earnings for the three and nine months ended July 2, 2022, and July 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.
−Removed: 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.
+Added: In the nine months ended July 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.
−Removed: 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.
+Added: 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 nine months ended July 3, 2021.
Other Financial Instruments
1 unchanged sentence
Fair value and carrying value for our debt are as follows (in millions):
−Removed: April 2, 2022 October 2, 2021
+Added: July 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):
−Removed: Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax
31 unchanged sentences
Information on segments and a reconciliation to income before income taxes are as follows (in millions):
−Removed: Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Beef $ 4,959 $ 4,954 $ 14,995 $ 12,987
5 unchanged sentences
Total Sales $ 13,495 $ 12,478 $ 39,545 $ 34,238
−Removed: Three Months Ended Six Months Ended
−Removed: April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021
+Added: Three Months Ended Nine Months Ended
+Added: July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Operating Income (Loss):
4 unchanged sentences
International/Other (c)
−Removed: ( 2 ) ( 15 ) 7 ( 4 )
Total Operating Income 1,033 1,062 3,644 2,487
1 unchanged sentence
Income before Income Taxes $ 986 $ 966 $ 3,483 $ 2,206
−Removed: (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.
−Removed: (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.
−Removed: 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.
−Removed: 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.
−Removed: The accrual was recorded as a reduction to Sales pursuant to FASB guidance related to accounting for revenue from contracts with customers.
−Removed: (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.
+Added: (a) Beef segment results for the three and nine months ended July 2, 2022 included $ 27 million recognized in Cost of Sales of insurance proceeds related to a fire at one of our production facilities in the fourth quarter of fiscal 2019.
+Added: Additionally, Beef segment results for the nine months ended July 3, 2021 included a $ 55 million gain from the recovery of cattle inventory from a cattle supplier that misappropriated Company funds.
+Added: In the fourth quarter of fiscal 2022, a bankruptcy court approved a settlement that awards the Company approximately $ 65 million in additional recoveries.
+Added: We will recognize these additional recoveries in the period they become realizable or realized, which we anticipate will be in the fourth quarter of fiscal 2022.
+Added: (b) Chicken segment results for the three and nine months ended July 2, 2022 included insurance proceeds, net of costs incurred, of $ 8 million and $ 26 million, respectively, recognized in Cost of Sales related to a fire at one of our production facilities in the fourth quarter of fiscal 2021.
+Added: Additionally, Chicken segment results for the three and nine months ended July 3, 2021 included charges of $ 306 million and $ 626 million, respectively, related to the recognition of legal contingency accruals, of which $ 225 million and $ 545 million, respectively, was recorded as a reduction to Sales pursuant to FASB guidance related to accounting for revenue from contracts with customers and $ 81 million was recorded as an increase to Cost of Sales in the three and nine months ended July 3, 2021.
+Added: (c) International/Other results for the three and nine months ended July 3, 2021 included a $ 4 million loss and $ 23 million loss, respectively, 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):
−Removed: Three months ended April 2, 2022
+Added: Three months ended July 2, 2022
Foodservice (b)
9 unchanged sentences
Total $ 5,897 $ 3,939 $ 2,089 $ 1,570 $ — $ 13,495
−Removed: Three months ended April 3, 2021
+Added: Three months ended July 3, 2021
Foodservice (b)
9 unchanged sentences
Total $ 5,724 $ 3,774 $ 1,750 $ 1,230 $ — $ 12,478
−Removed: Six months ended April 2, 2022
+Added: Nine months ended July 2, 2022
Foodservice (b)
9 unchanged sentences
Total $ 17,303 $ 11,673 $ 6,027 $ 4,542 $ — $ 39,545
−Removed: Six months ended April 3, 2021
+Added: Nine months ended July 3, 2021
Foodservice (b)
13 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.
−Removed: 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.
+Added: For the three and nine months ended July 3, 2021, the Chicken segment included a $ 225 million and $ 545 million reduction in Other, respectively, due to the recognition of legal contingency accruals.
COMMITMENTS AND CONTINGENCIES
We guarantee obligations of certain outside third parties, consisting primarily of grower loans, which are substantially collateralized by the underlying assets.
−Removed: 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.
+Added: The remaining terms of the underlying obligations cover periods up to 9 years, and the maximum potential amount of future payments as of July 2, 2022 was no t significant.
The likelihood of material payments under these guarantees is not considered probable.
−Removed: At April 2, 2022 and October 2, 2021, no significant liabilities for guarantees were recorded.
+Added: At July 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.
−Removed: The potential maximum commitment as of April 2, 2022 was approximately $ 295 million.
−Removed: The total receivables under these programs were $ 5 million at April 2, 2022 and October 2, 2021.
+Added: The potential maximum commitment as of July 2, 2022 was approximately $ 295 million.
+Added: The total receivables under these programs were $ 6 million and $ 5 million at July 2, 2022 and October 2, 2021, respectively.
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.
−Removed: 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.
+Added: After analyzing residual credit risks and general market conditions, we have no allowance for these programs’ estimated uncollectible receivables at July 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.
1 unchanged sentence
These funds are generally considered restricted cash, which is reported in the Consolidated Condensed Balance Sheets in Other Assets.
−Removed: We had no deposits at April 2, 2022 and $ 3 million of deposits at October 2, 2021.
+Added: We had no deposits at July 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.
−Removed: At April 2, 2022, the total amount under these types of arrangements totaled $ 717 million.
+Added: At July 2, 2022, the total amount under these types of arrangements totaled $ 709 million.
Contingencies
5 unchanged sentences
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.
−Removed: 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.
+Added: There were no significant changes to our loss contingency accruals reflected in the Company’s Consolidated Condensed Statements of Income for the three and nine months ended July 2, 2022.
Broiler Antitrust Civil Litigation
77 unchanged sentences
The Offices of the Attorney General for multiple states are participating in the investigation and coordinating with the DOJ.
−Removed: 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.
−Removed: We are currently evaluating the scope of the subpoena.
+Added: We 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.
+Added: After we had made an initial production of information, we were unable to agree with the New York Attorney General's office on the appropriate scope of the subpoena and, as of August 3, 2022, the parties are litigating the issue before a New York state court.
Wage Rate Litigation
11 unchanged sentences
We moved to dismiss the claims related to hatchery and feed mill employees.
−Removed: The motion to dismiss is currently pending.
+Added: The court denied the motion to dismiss on July 19, 2022.
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.
19 unchanged sentences
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.