Tyson Foods 1999 Annual Report Download - page 39

In March 1998, the American Institute of Certified Public Accountants (AICPA) issued Statement of Position 98-1,
Accounting for the Costs of Computer Software Developed or Obtained for Internal Use (SOP 98-1). This statement pro-
vides guidance on the capitalization of certain costs incurred in developing or acquiring internal-use computer software.
The Company believes the adoption of SOP 98-1 in the first quarter of fiscal 2000 will not have a material impact on its
financial position or results of operations.
In April 1998, the AICPA issued Statement of Position 98-5, Reporting on the Costs of Start-up Activities. This state-
ment requires that the costs of start-up activities be expensed as incurred. Start-up activities are defined as one-time
activities related to opening a new facility, introducing a new product or service, conducting business in a new territory,
conducting business with a new class of customer, initiating a new process in an existing facility or beginning some new
operation. This statement is effective beginning in the first quarter of fiscal 2000. Upon adoption any capitalized start-up
costs are to be written off and reported as a cumulative effect of an accounting change. At Oct. 2, 1999, the Company has
no capitalized start-up costs.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION This annual report and other
written reports and oral statements made from time to time by the Company and its representatives may contain for-
ward-looking statements, including forward-looking statements made in this report, with respect to their current views
and estimates of future economic circumstances, industry conditions, company performance and financial results.
These forward-looking statements are subject to a number of factors and uncertainties which could cause the
Company’s actual results and experiences to differ materially from the anticipated results and expectations, expressed
in such forward-looking statements. In light of these risks, uncertainties and assumptions, the Company wishes to
caution readers not to place undue reliance on any forward-looking statements. The Company undertakes no obligation
to publicly update or revise any forward-looking statements based on the occurrence of future events, the receipt of
new information or otherwise.
Among the factors that may affect the operating results of the Company are the following: (i) fluctuations in the cost
and availability of raw materials, such as feed grain costs; (ii) changes in the availability and relative costs of labor and
contract growers; (iii) market conditions for finished products, including the supply and pricing of alternative proteins;
(iv) effectiveness of advertising and marketing programs; (v) the ability of the Company to make effective acquisitions
and to successfully integrate newly acquired businesses into existing operations; (vi) risks associated with leverage,
including cost increases due to rising interest rates; (vii) changes in regulations and laws, including changes in account-
ing standards, environmental laws, occupational, health and safety laws, and laws regulating fishing and seafood
processing activities; (viii) access to foreign markets together with foreign economic conditions, including currency fluc-
tuations; and (ix) the effect of, or changes in, general economic conditions.
Management’s discussion and analysis
TYSON FOODS, INC. 1999 ANNUAL REPORT
37