Tyson Foods Inc.

Company Overview

Business Model: Tyson Foods, Inc. is a world-class food company and a recognized leader in protein, operating a fully vertically-integrated chicken production process that includes breeding stock, contract farming, feed production, processing, further-processing, marketing, and transportation. The Company also processes live fed cattle and hogs, fabricating dressed beef and pork carcasses into primal and sub-primal cuts, case-ready products, and fully-cooked meats. Tyson Foods, Inc. produces a wide range of fresh, value-added, frozen, and refrigerated food products, marketed and sold to grocery retailers, wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, and various foodservice operations. Revenue is primarily generated through the sale of these protein-based food products.

Market Position: Tyson Foods, Inc. holds a leading market position for its products, supported by a broad portfolio of iconic brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Aidells®, and ibp®. The Company's competitive strategy focuses on identifying target markets for value-added products, concentrating production, sales, and marketing efforts, and leveraging national distribution systems and customer support services. Through its wholly-owned subsidiary, Cobb-Vantress, Tyson Foods, Inc. is one of the leading poultry breeding stock suppliers globally.

Recent Strategic Developments: In fiscal 2025, Tyson Foods, Inc. initiated a network optimization plan to enhance its global operations and logistics network, aiming to drive efficiencies and streamline inventory flow. This plan involved the closure of two Prepared Foods segment facilities and one non-harvesting Beef segment facility, as well as the sale and leaseback of multiple Company-owned cold storage facilities. Additionally, Tyson New Ventures, LLC, a subsidiary, is focused on investing in companies developing breakthrough technologies, business models, and products to transform the food industry, including innovative protein forms, animal welfare, water management, packaging, and land stewardship initiatives.

Geographic Footprint: Tyson Foods, Inc. sold products in approximately 140 countries and regions in fiscal 2025. Major sales markets include Canada, Central America, China, the European Union, the United Kingdom, Japan, Mexico, Malaysia, the Middle East, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. Approximately 95% of sales to external customers were sourced from the United States in fiscal 2025. The Company has foreign operations, including vertically-integrated chicken production in Thailand, multi-protein further-processing in Malaysia, and value-added chicken and beef product production and distribution in the Kingdom of Saudi Arabia. Cobb-Vantress has business interests across Argentina, Brazil, China, the Dominican Republic, India, New Zealand, Peru, the Philippines, Spain, Tanzania, Turkey, and the United Kingdom. Long-lived assets located in foreign locations totaled approximately $0.7 billion at September 27, 2025.

Financial Performance

Revenue Analysis

Profitability Metrics (Fiscal 2025):

• Gross Margin: 6.5%
• Operating Margin: 2.0%
• Net Margin: 0.9%

Investment in Growth (Fiscal 2025):

• R&D Expenditure: $0.13 billion (0.2% of revenue)
• Capital Expenditures: $0.98 billion
• Strategic Investments: In fiscal 2023, Tyson Foods, Inc. acquired Williams Sausage Company for $220 million and a 60% equity stake in Supreme Foods Processing Company and a 15% equity stake in Agricultural Development Company for $75 million. The Company also acquired a minority interest in a global insect-based ingredients company in fiscal 2023.

Business Segment Analysis

Beef

Financial Performance:

• Revenue: $21.6 billion (+5.6% YoY)
• Operating Margin: (5.2)% (vs. (1.9)% in 2024)
• Key Growth Drivers: Average sales price increased by 9.0% due to increased input costs and strong demand.
• Special Items (2025): Included $343 million of goodwill and intangible impairments, $318 million of legal contingency accruals, and $48 million of restructuring and related charges.

Product Portfolio:

• Processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products.
• Specialty products include hides, rendered products, and variety meats.

Market Dynamics:

• Domestically marketed to food retailers, foodservice distributors, restaurant operators, hotel chains, noncommercial foodservice establishments, and international export markets.
• The U.S. cattle market is experiencing limited supply of market-ready cattle and increased cattle costs, with uncertainty regarding herd rebuilding.

Pork

Financial Performance:

• Revenue: $5.8 billion (-2.1% YoY)
• Operating Margin: (3.4)% (vs. (0.7)% in 2024)
• Key Growth Drivers: Average sales price increased by 5.3% due to increased input costs and strong demand for pork products.
• Special Items (2025): Included $380 million of legal contingency accruals.

Product Portfolio:

• Processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products.
• Includes live swine group and related specialty product processing activities.

Market Dynamics:

• Domestically marketed to food retailers, foodservice distributors, restaurant operators, hotel chains, noncommercial foodservice establishments, and international export markets.
• Experienced sufficient supply of market-ready hogs and increased hog costs.

Chicken

Financial Performance:

• Revenue: $16.8 billion (+2.5% YoY)
• Operating Margin: 8.5% (vs. 6.0% in 2024)
• Key Growth Drivers: Sales volume increased by 2.6% primarily due to increased domestic production. Operating income improved due to operational execution and $340 million net decrease in feed ingredient costs.
• Special Items (2025): Included $23 million related to brand and product line discontinuations, $23 million of plant closure and disposal charges, and $9 million of restructuring and related charges.

Product Portfolio:

• Fresh, frozen, and value-added chicken products, including breaded chicken strips, nuggets, patties, and other ready-to-fix or fully cooked chicken parts.
• Specialty products and global operations of chicken breeding stock subsidiary, Cobb-Vantress.

Market Dynamics:

• Domestically marketed to food retailers, foodservice distributors, restaurant operators, convenience stores, hotel chains, noncommercial foodservice establishments, and international export markets.
• Experienced reduced feed ingredient costs, which began to stabilize in the latter half of fiscal 2025.

Prepared Foods

Financial Performance:

• Revenue: $9.9 billion (+0.8% YoY)
• Operating Margin: 9.0% (vs. 8.9% in 2024)
• Key Growth Drivers: Average sales price increased by 3.3% primarily due to the pass-through of increased raw material costs. Operating income increased due to higher average sales price, improved operational execution, and lower selling, general, and administrative costs.
• Special Items (2025): Included $41 million of charges related to a product recall and a net benefit of $26 million related to restructuring and related charges, including a gain from the sale of storage facilities.

Product Portfolio:

• Frozen and refrigerated food products under brands such as Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Aidells®, and Gallo Salame®.
• Products include ready-to-cook and ready-to-eat sandwiches, sandwich components, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, and breadsticks.

Market Dynamics:

• Domestically marketed to food retailers, foodservice distributors, restaurant operators, convenience stores, hotel chains, noncommercial foodservice establishments, and international export markets.
• Currently experiencing increased raw material costs, primarily due to higher meat costs. Sales volume decreased due to a challenging consumer environment and the impact from a product recall.

Capital Allocation Strategy

Shareholder Returns (Fiscal 2025):

• Share Repurchases: $196 million (3.5 million shares)
• Dividend Payments: $697 million
• Future Capital Return Commitments: The Board of Directors increased the quarterly dividend to $0.51 per share on Class A common stock and $0.459 per share on Class B common stock, effective November 7, 2025, representing a 2% increase in the annual dividend rate for fiscal 2026. The Company has paid uninterrupted quarterly dividends since 1977. As of September 27, 2025, 47.2 million shares remained available for repurchase under the existing program, which has no fixed termination date.

Balance Sheet Position (as of September 27, 2025):

• Cash and Equivalents: $1.2 billion
• Total Debt: $8.8 billion
• Net Cash Position: ($7.6 billion) (Net Debt)
• Credit Rating: S&P: "BBB", Moody's: "Baa2"
• Debt Maturity Profile: Annual maturities of debt for the five fiscal years subsequent to September 27, 2025, are: 2026 - $909 million; 2027 - $1,400 million; 2028 - $499 million; 2029 - $1,626 million; 2030 - $22 million.

Cash Flow Generation (Fiscal 2025):

• Operating Cash Flow: $2.2 billion
• Free Cash Flow: Not explicitly defined or calculated in the filing, but operating cash flow was $2.2 billion and capital expenditures were $0.98 billion.

Operational Excellence

Production & Service Model: Tyson Foods, Inc. operates a fully vertically-integrated chicken production process, encompassing breeding stock, contract farming, feed production, processing, further-processing, marketing, and transportation. For beef and pork, the Company processes live animals and fabricates carcasses into various cuts and products. The operational philosophy emphasizes high-quality food, safety, affordability, and stewardship of animals, land, and the environment. The Company operates feed mills to produce scientifically-formulated feeds for its chicken operations.

Supply Chain Architecture: Key Suppliers & Partners:

• Live Animals: Independent feed yards and public auctions for live cattle; independent producers for live hogs (majority through procurement relationships).
• Feed Ingredients: Corn and soybean meal, representing approximately 53% of the cost of growing a live chicken domestically in fiscal 2025.
• Contract Farmers: Independent contract farmers raise live chickens and turkeys according to Company standards.
• Raw Materials: Commodity-based raw materials for Prepared Foods, including beef, pork, chicken, turkey, flour, vegetables, cheese, eggs, seasonings, and other cooking ingredients, sourced internally and from numerous external suppliers.

Facility Network (as of September 27, 2025):

• Manufacturing:
  • Beef Segment: 11 owned facilities (capacity: 155,000 head/week)
  • Pork Segment: 6 owned facilities (capacity: 451,000 head/week)
  • Chicken Segment: 162 owned, 5 leased facilities (total 167, capacity: 42 million head/week)
  • Prepared Foods Segment: 35 owned facilities (capacity: 72 million pounds/week)
  • International Operations: 21 chicken processing facilities, 3 feed mills, and 1 broiler hatchery across Asia-Pacific, China, and South Korea.
• Research & Development: Discovery Center in Springdale, Arkansas (40,000+ sq ft USDA/FDA pilot plant space, sensory areas, packaging lab, research kitchens). Manufacturing Automation Center in Springdale, Arkansas. R&D capabilities in several international locations.
• Distribution: Owned or leased domestic cold storage warehouses, public cold storage facilities, and a transportation system. International distribution utilizes rail and truck refrigerated transportation to domestic ports for foreign destinations.

Operational Metrics: Capacity utilization varies by facility based on product type and demand. The Company regularly engages in capital improvement projects to expand capacity and improve efficiency.

Market Access & Customer Relationships

Go-to-Market Strategy: Tyson Foods, Inc.'s principal marketing objective is to be the preferred provider of beef, pork, chicken, and prepared foods products. The Company builds its iconic brands through distinctive brand and product advertising, promotion, and public relations efforts targeting specific consumer needs. It identifies growth opportunities through consumer and customer insights, strong analytics, and enhancing digital marketing acumen to deliver personalized brand experiences. A national distribution system and customer support services are utilized to achieve leading market positions.

Distribution Channels:

• Direct Sales: Primary sales staff directly to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, and live markets.
• Channel Partners: Independent brokers and trading companies for sales to the military and a portion of international markets.
• Digital Platforms: Online sales channels and e-commerce initiatives are continually enhanced.

Customer Portfolio:

• Customer Concentration: Walmart Inc. accounted for approximately 18.7% of Tyson Foods, Inc.'s fiscal 2025 consolidated sales, impacting all segments. No other single customer or customer group represented more than 10% of fiscal 2025 consolidated sales.
• Geographic Revenue Distribution:
  • United States: Approximately 95% of total revenue (fiscal 2025).
  • Export Sales from the United States: $4.8 billion (fiscal 2025).
  • Growth Markets: International operations in China, Malaysia, Mexico, South Korea, Thailand, and the Kingdom of Saudi Arabia, with continued evaluation of growth opportunities in foreign locations.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The food industry is intensely competitive and subject to changing consumer trends, demands, and preferences. Domestic protein production (beef, pork, chicken, and turkey) decreased slightly in fiscal 2025 compared to fiscal 2024. The U.S. cattle market is experiencing limited supply of market-ready cattle and increased costs, with uncertainty regarding herd rebuilding.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Tyson Foods, Inc. competes with other global and domestic food producers and processors and certain prepared food manufacturers. The filing does not name specific competitors.

Emerging Competitive Threats: The Company acknowledges competition from alternative proteins and the need to identify and react to consumer trends.

Competitive Response Strategy: Tyson Foods, Inc. seeks to achieve a leading market position through identifying target markets for value-added products, concentrating production, sales, and marketing efforts, utilizing national distribution systems, and enhancing consumer insights and strong analytics. The Company also invests in advertising, consumer and trade promotions, and new product innovation.

Risk Assessment Framework

Strategic & Market Risks

• Market Dynamics: Fluctuations in commodity prices (live cattle, hogs, feed grains like corn and soybean meal) and raw material availability directly impact gross margin and profitability. Consumer preference changes and negative perceptions of food safety or health implications of products could reduce demand.
• Technology Disruption: Reliance on information technology systems makes the Company vulnerable to cyber attacks, security breaches, and other disruptions, which could lead to transaction errors, loss of sales, liability, and reputational damage. New technologies like AI and quantum computing may present new vulnerabilities.
• Customer Concentration: Walmart Inc. accounted for 18.7% of fiscal 2025 consolidated sales. Loss of or significant changes in terms with large customers could materially impact operations. Consolidation among customers increases their buying power and demand for lower pricing or private label products.

Operational & Execution Risks

• Supply Chain Vulnerabilities: Disease outbreaks (e.g., African swine fever, highly pathogenic avian influenza) can adversely impact livestock supply, demand for products, and operational continuity. Limited supply of market-ready cattle and uncertainty in herd rebuilding pose risks to the Beef segment.
• Labor Shortages: Labor shortages, increased turnover, or labor inflation can lead to increased operating costs (overtime, wage rates) and negatively affect production facility efficiency or capacity.
• Capacity Constraints: Plant closures and network optimization initiatives, while strategic, involve charges and potential disruptions.

Financial & Regulatory Risks

• Market & Financial Risks: Deterioration of economic conditions (inflation, interest rates, access to capital markets, consumer spending) can adversely affect demand, customer/supplier financial health, raw material costs, and financing availability. High indebtedness levels could limit future financing and restrict dividend payments.
• Goodwill & Intangible Impairment: Goodwill and indefinite life intangible assets, totaling $13.5 billion (37% of total assets) at September 27, 2025, are subject to impairment risk if fair value estimates decline due to market conditions or operational performance. A $343 million goodwill impairment was recognized in the Beef segment in fiscal 2025.
• Regulatory & Compliance Risks: Stringent and evolving environmental laws, food safety regulations (USDA, FDA), and other government regulations can impose material compliance costs, restrict operations, or lead to penalties and adverse publicity from product liability claims or regulatory actions.

Geopolitical & External Risks

• Geopolitical Exposure: International sales and operations in approximately 140 countries expose the Company to risks from currency exchange rate fluctuations, political and economic conditions, and difficulties complying with diverse legal and regulatory requirements.
• Trade Relations: Changes in import/export policies, trade restrictions, tariffs, or quotas could increase costs, reduce demand, and adversely affect general economic conditions.
• Climate Change: The effects of climate change (changing weather patterns, natural disasters) could limit availability or increase costs of agricultural commodities and manufacturing inputs, impair production, disrupt supply chains, or impact demand. Legal and regulatory responses to climate change could also increase costs.

Innovation & Technology Leadership

Research & Development Focus: Tyson Foods, Inc. conducts continuous research and development activities focused on new product innovation, product improvements, ingredient simplification, manual process automation in processing facilities and grow-out operations, and chicken breeding stock improvements. Key R&D facilities include the Discovery Center in Springdale, Arkansas, which features USDA and FDA pilot plant space, consumer sensory areas, a packaging lab, and research kitchens. The Company also operates a Manufacturing Automation Center in Springdale, Arkansas, for developing new manufacturing solutions and team member training on new technology. International R&D capabilities are also present.

Intellectual Property Portfolio: The Company has filed numerous patent applications related to its processes and products. Protection of its trademarks, including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Aidells®, and ibp®, is considered important to marketing efforts, with regular registration and application for trademarks. Tyson Foods, Inc. also develops non-public proprietary information regarding production processes and product-related matters, protected through internal procedures and safeguards.

Technology Partnerships: The filing does not explicitly detail specific technology partnerships beyond internal R&D efforts and the Tyson New Ventures, LLC subsidiary's investment focus.

Leadership & Governance

Executive Leadership Team (as of September 27, 2025)

Leadership Continuity: The Tyson Limited Partnership (TLP) and members of the Tyson family collectively control approximately 71.94% of the total voting power of the Company's outstanding voting stock, providing substantial influence over management and affairs.

Board Composition: The Board of Directors has delegated risk management oversight for information security, data privacy, and cybersecurity to the Governance and Nominating Committee. Beginning in fiscal 2025, a special Technology Committee was appointed to oversee technology-related strategies, investments, risks, and innovations, including the Company’s cybersecurity framework. Certain board members have backgrounds or experience in risk management and/or information technology.

Human Capital Strategy

Workforce Composition (as of September 27, 2025):

• Total Employees: Approximately 133,000 globally.
• Geographic Distribution: Approximately 116,000 team members in the United States (110,000 at non-corporate sites) and approximately 17,000 in other countries (primarily Thailand and China).
• Skill Mix: Not explicitly detailed, but comprehensive training programs are emphasized for newly hired and all team members, covering safety, food safety, and other vital areas.

Talent Management:

• Acquisition & Retention: The Company's talent strategy focuses on attracting, hiring, retaining, and developing key team members. The domestic workforce experienced a 3.5% increased retention rate from fiscal 2024.
• Employee Value Proposition: Efforts include operating health clinics near production facilities for easier access to healthcare for team members and their families. Compensation philosophy, benefits, and culture are designed to enable team member success.

Diversity & Development:

• Diversity Metrics: The Company strives to create a workforce where every team member contributes to collective success, rooted in varied experiences. Policies and practices underscore a commitment to a work environment free from discrimination and harassment, with Equal Opportunity Employer statements.
• Development Programs: The Upward Academy Onsite Program operates at 40 Company locations, offering English as a second language, high-school equivalency, citizenship, financial literacy, and digital literacy training. The Upward Academy online program provides frontline career development, including college degrees, job skills training, and workforce certifications at no cost up to $5,250 per year.

Environmental & Social Impact

Environmental Commitments:

• Climate Strategy: Tyson Foods, Inc. is committed to serving as stewards of people, land, animals, and resources. The Company collects and monitors greenhouse gas emissions data to inform reduction and removal interventions across operations and the supply chain. It evaluates climate-related goals and initiatives, supports agricultural practices and business operations that strengthen the U.S. agricultural system, and is refreshing its climate strategy.
• Supply Chain Sustainability: The Company takes a comprehensive approach to managing natural resources and continuously works to increase operational efficiencies and reduce greenhouse gas emissions across the supply chain.
• Responsible Sourcing: Not explicitly detailed beyond general natural resource management and animal welfare mentioned in the business description.

Social Impact Initiatives:

• Community Investment: The Company's commitment to its team is rooted in creating working environments that enable team members to succeed while supporting the growth of communities.
• Product Impact: Tyson Foods, Inc. is dedicated to bringing high-quality food to every table in the world, safely and affordably.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Demand for beef, chicken, pork, and certain prepared foods (e.g., hot dogs, smoked sausage) generally increases during spring, summer, and key holiday periods, and is softer in winter. Other prepared foods (e.g., prepared meals, meat dishes, appetizers, bacon, breakfast sausage) generally experience increased demand during winter and key holiday seasons, with softer demand in spring and summer.
• Economic Sensitivity: The business can be adversely affected by changes in economic conditions, including inflation, interest rates, consumer spending rates, and energy costs, which can impact demand for products and the financial health of customers and suppliers.
• Industry Cycles: The U.S. cattle market is currently experiencing limited supply of market-ready cattle, and uncertainty exists regarding the timing of anticipated cattle herd rebuilding.

Planning & Forecasting: Fluctuations in inventories, production, and utilization may occur based on seasonal or other changes in demand. The Company uses demand forecasting and inventory management to align with capacity needs.

Regulatory Environment & Compliance

Regulatory Framework:

• Industry-Specific Regulations: Tyson Foods, Inc.'s facilities and products are subject to extensive international, federal, state, and local environmental laws and regulations (air, land, water), as well as food safety and quality inspections primarily by the USDA and FDA. The Company participates in USDA's Hazard Analysis and Critical Control Points (HACCP) program or FDA's Hazard Analysis and Risk-Based Prevention Controls (HARPC) program.
• International Compliance: Foreign operations are subject to various other food safety and quality assurance oversight and review.
• Regulatory Changes: New or more stringent domestic and international government regulations, including those for raw material sourcing, supply chain due diligence, product labeling, and greenhouse gas emissions, could impose material costs.

Trade & Export Controls:

• Export Restrictions: The Company is subject to changes in import and export policies, including trade restrictions, new or increased tariffs or quotas, and customs restrictions, which could require business changes, increase costs, and reduce demand.
• Sanctions Compliance: Not explicitly detailed, but international activities are subject to political and economic conditions, including ongoing conflicts and political tensions.

Legal Proceedings: Tyson Foods, Inc. is involved in various claims, lawsuits, investigations, and legal proceedings, for which it accrues probable and estimable losses.

• Broiler Antitrust Civil Litigation: The Company settled all class claims for an aggregate of $221.5 million. It was granted conditional leniency by the DOJ for self-reported matters and continues to cooperate with the ongoing federal antitrust investigation. Accrual for remaining opt-out claims was $64 million at September 27, 2025.
• Broiler Chicken Grower Litigation: The Company settled with the putative class of broiler chicken farmers in June 2021 for an immaterial amount. No remaining accrual at September 27, 2025.
• Pork Antitrust Litigation: The Company reached an agreement in principle to settle with direct purchaser class plaintiffs for $50 million and with consumer indirect purchaser class for $85 million, both subject to court approval. Accrual was $268 million at September 27, 2025.
• Beef Antitrust Litigation: The Company recorded a legal contingency accrual of $318 million in fiscal 2025. An agreement was reached with the consumer indirect purchaser plaintiff class to settle their claims for $55 million, subject to court approval.
• Wage Rate Litigation: The Company reached an agreement in principle to settle the poultry wage rate litigation for $115.5 million and the fresh meats wage rate litigation for $72.5 million. Both settlements were paid in fiscal 2025, resulting in no remaining accrual at September 27, 2025.
• Oklahoma Environmental Case: The District Court entered Findings of Fact and Conclusions of Law in favor of the State of Oklahoma in January 2023, with remedies pending.
• Mexico Tax Assessment: A $40 million liability was recorded in fiscal 2025 for estimated probable loss related to indemnification provisions with a purchaser following a $499 million tax assessment from Mexican authorities related to the 2015 sale of its Mexico operation.

Tax Strategy & Considerations

Tax Profile (Fiscal 2025):

• Effective Tax Rate: 34.1% (vs. 24.8% in 2024). The increase was primarily due to a non-deductible goodwill impairment in fiscal 2025.
• Geographic Tax Planning: The Company has accumulated undistributed earnings of foreign subsidiaries aggregating approximately $689 million at September 27, 2025, generally expected to be indefinitely reinvested outside the United States.
• Tax Reform Impact: The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, making permanent key elements of the Tax Cuts and Jobs Act. It did not materially impact fiscal 2025 effective tax rate or consolidated financial statements but is expected to result in lower cash tax payments in fiscal 2026.

Insurance & Risk Transfer

Risk Management Framework: Tyson Foods, Inc. utilizes a combination of insurance and self-insurance mechanisms to mitigate potential liabilities for health and welfare, workers’ compensation, auto liability, and general liability risks. Liabilities for retained risks are estimated using claims experience, demographic factors, severity factors, and actuarial assumptions. The Company also uses derivative financial instruments (futures and options) to reduce exposure to market risks from commodity prices, interest rates, and foreign exchange rates. Credit risks associated with derivative contracts are minimized by dealing with credit-worthy counterparties and using exchange-traded instruments.