Tyson Foods 2000 Annual Report Download
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TYSON FOODS, INC. 2000 ANNUAL REPORT
Tyson Foods, Inc., headquartered in Springdale, Arkansas, is the number one chicken company in the world. We are the world’s
largest fully integrated producer, processor and marketer of chicken and chicken-based convenience foods, with 68,000 team
members and 7,400 farm families in 100 communities. Tyson has operations in 18 states and 15 countries and exports to 73 countries
worldwide. We are the recognized market leader in almost every retail and foodservice market we serve. Through our Cobb-
Vantress subsidiary, Tyson is also a leading chicken breeding stock supplier. In addition, Tyson is the nation’s second largest
maker of corn and flour tortillas under the Mexican Original brand, as well as a leading provider of live swine.
2 Letter to Shareholders
7 Financial Highlights
8 Taking the Lead
There is more to leadership than selling chicken.
10 Getting There First
Our strengths are what put us there first and are
what keep us in our leadership position today.
12 Taking Our Place
Not only is Tyson the leading brand of chicken
in the United States, it is also the only truly
national brand of chicken.
14 Discovering New Opportunities
New markets. New ideas. New trends.
Tyson is on the leading edge.
16 Leaders Have Responsibility
Tyson is about more than chicken. We feel
a strong responsibility to the environment,
our communities and people less fortunate.
19 Financial Review
TYSON FOODS, INC. 2000 ANNUAL REPORT
Table of contents
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Page 1
...Springdale, Arkansas, is the number one chicken company in the world. We are the world's largest fully integrated producer, processor and marketer of chicken and chicken-based convenience foods, with 68,000 team which came first? TYSON FOODS, INC. 2000 ANNUAL REPORT members and 7,400 farm families... -
Page 2
GROUND CHICKEN BURGER BONELESS, SKINLESS BREAST HOME-STYLE PEPPER TENDERLOINS WINGS OF FIRE -
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John Ty s o n Chairman, President and Chief Executive Officer -
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Tyson shareholders: Tyson Foods, Inc. is first in the chicken industry. Year in and year out we outperform the competition, in good times and in bad. We are the best in the business, but our performance in 2000 didn't meet our expectations or our potential. In a market already overflowing with meat... -
Page 6
Although, being first often has its price, 24% Tyson Foods, Inc. 45% Rest of Industry 9% Gold Kist, Inc. 8% Perdue Farms, Inc. 8% 6% ConAgra Pilgrim's Pride Corp. Poultry Co. TYSON VS. THE COMPETITION U.S. broiler production based on ready-to-cook pounds Source: Watt Poultry U.S.A., January 2000 -
Page 7
...our share in targeted markets Expand the geographic distribution of our products Increase the international segment of our business Continue our leadership in the development of value-added products Continue cost cutting initiatives The capital investment strategy we will use to meet these goals is... -
Page 8
... goals if we work our plan. Our goals are based on our strengths. We have the right people. We have the right products. Tyson is the number one chicken company in the world. We know this business better than anyone. We will be successful. John Tyson Chairman, President and Chief Executive Officer -
Page 9
... share data 2000 1999 1998 Sales Gross profit Operating income Income before taxes on income and minority interest Provision for income taxes Net income Diluted earnings per share Diluted earnings per share before asset impairment and other charges Asset impairment and other charges Shareholders... -
Page 10
Tyson team member Wilson Winn shows Vincent Medina the variety of Tyson products and services available to help him expand his menu with chicken. As a partner, Tyson provides product research, development, marketing and strategic planning resources. -
Page 11
... to our success. Our goal is to help customers build their businesses with chicken. As a partner, Tyson provides product research, development, marketing and strategic planning resources. Our customers have rewarded us by relying on Tyson. In the United States, Tyson is the leading chicken supplier... -
Page 12
... Tyson's size. Our size gives us the ability and flexibility to serve customers like no one else. When a large, national customer plans a chicken promotion, Tyson can meet the volume demand. We can be there first to fulfill 100 percent of our customers' needs for chicken products. BRAND QUALITY... -
Page 13
... and computer based warehouse management systems ensure we track our product from the production line to the customer's warehouse. 11 CUSTOMER SERVICE Tyson is in a very strong financial position. With one of the strongest balance sheets in the industry, our debt to capitalization ratio is at its... -
Page 14
The new advertising campaign is designed to boost brand perceptions of quality, safety, value and trust. The "Tyson. It's what your family deserves." ads inform consumers that Tyson products contain no hormones or steroids. -
Page 15
... and trust. The new ads a re p a rt of a larger marketing program called "Ty s o n for Families" that focuses on communicating the Company's commitm ent t o families and communiti es t hro u g h a d v e rt i sing, cause marketing, promotions and public relations initiatives. The campaign is based... -
Page 16
... Objectives/Strategies discovering NEW MARKETS Selling fresh chicken in a market increases brand awareness for value-added frozen products. To build a stronger national brand presence, Tyson plans to expand fresh chicken sales into the western United States. Internationally, we will further... -
Page 17
... different ways to eat chicken David Toothaker, product manager of the new refrigerated, ready-to-eat products. 15 and can fit into the foodservice, retail and club store segments. NEW IDEAS This year Tyson established strategic initiatives for finding ways to improve performance and profits... -
Page 18
.... Jonathan Martin gives kids hands-on learning experiences by showing them how chicks hatch. Sharon Blanchard helps fix up a youth center during the United Way Day of Caring. Adrienne Phillips teaches nutrition and safe food handling practices in Share Our Strength Operation Frontline classes... -
Page 19
... country. COMMUNITIES At Tyson, we live where we work and work where we live. That's why community outreach is so dear to our team members. Our people are involved not only in our national efforts but also in local causes. For example, in Vienna, Ga., our plant supports Little League. In Wilkesboro... -
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The first and last word is ... -
Page 21
... Balance Sheets Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Management Report of Independent Auditors Eleven-Year Financial Summary Board of Directors Corporate and Executive Officers Corporate Information -
Page 22
... identifies segments based on the products offered and the nature of customers, resulting in four reported business segments: Food Service, Consumer Products, International and Swine. The Company's seafood business, which was sold on July 17, 1999, is listed as a business segment for fiscal 1999 and... -
Page 23
MANAGEMENT'S DISCUSSION AND ANALYSIS TYSON FOODS, INC. 2000 ANNUAL REPORT disease had been eradicated from our facilities by fiscal year end and production volumes had returned to normal levels. The Company's International segment markets and sells the full line of Tyson chicken products throughout... -
Page 24
MANAGEMENT'S DISCUSSION AND ANALYSIS TYSON FOODS, INC. 2000 ANNUAL REPORT A C Q U I S I T I O N S On January 9, 1998, the Company completed the acquisition of Hudson Foods, Inc. (Hudson or Hudson Acquisition). At the effective time of the acquisition, the Class A and Class B shareholders of Hudson ... -
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MANAGEMENT'S DISCUSSION AND ANALYSIS TYSON FOODS, INC. 2000 ANNUAL REPORT The following is an analysis of sales by segment: dollars in millions 1999 1998 Change Food Service Consumer Products International Swine Seafood Other Total $7,363 $7,414 $ (51) 813 1,044 (231) 189 214 (25) 110 161 (51) 645... -
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... of a minimum net worth, current ratio, cash flow coverage of interest and a maximum total debt-to-capitalization ratio. The Company is in compliance with these covenants at fiscal year end. Shareholders' equity increased 2.2% during 2000 and has grown at a compounded annual rate of 8.2% over... -
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MANAGEMENT'S DISCUSSION AND ANALYSIS TYSON FOODS, INC. 2000 ANNUAL REPORT IMPACT OF YEAR 2000 The Company has completed its Year 2000 Project as scheduled. The Company's products, computing and communications infrastructure systems have operated without Year 2000 related problems. The Company is ... -
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... AND ANALYSIS TYSON FOODS, INC. 2000 ANNUAL REPORT Interest Rate and Foreign Currency Risks The Company hedges exposure to changes in interest rates on certain of its financial instruments. Under the terms of various leveraged equipment loans, the Company enters into interest rate swap agreements... -
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... ANALYSIS TYSON FOODS, INC. 2000 ANNUAL REPORT dollars in millions 2000 2001 2002 2003 2004 Thereafter Total Fair value 10/2/99 As of October 2, 1999 Liabilities Long-term debt, including current portion Fixed rate Average interest rate Variable rate Average interest rate Interest rate derivative... -
Page 30
... 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... -
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CONSOLIDATED STATEMENTS OF INCOME TYSON FOODS, INC. 2000 ANNUAL REPORT in millions, except per share data Three years ended September 30, 2000 2000 1999 1998 Sales Cost of Sales 1,114 1,309 575 134 36 77 822 487 124 (3) (5) 116 371 129 12 $ 230 $ 1.00 $ 0.67 $ 1.00 $ 142 950 204 139 - (6) 133 71... -
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... SHEETS TYSON FOODS, INC. 2000 ANNUAL REPORT in millions, except per share data September 30, 2000 and October 2, 1999 2000 1999 Assets Current Assets: Cash and cash equivalents Accounts receivable Inventories Assets held for sale Other current assets Total Current Assets Net Property, Plant and... -
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...SHAREHOLDERS' EQUITY TYSON FOODS, INC. 2000 ANNUAL REPORT Three years ended September 30, 2000 in millions, except per share data Common Stock Class A Class B Shares Amount Shares Amount Capital in Excess of Par Value Retained Earnings Shares Amount Treasury Stock Unamortized Deferred Compensation... -
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... TYSON FOODS, INC. 2000 ANNUAL REPORT in millions Three years ended September 30, 2000 2000 1999 1998 Cash Flows From Operating Activities: Net income Adjustments to reconcile net income to cash provided by operating activities: Depreciation Amortization Amortization of deferred compensation... -
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...2000 ANNUAL REPORT NOTE 1: BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business: Tyson Foods, Inc., headquartered in Springdale, Ark., is the world's largest fully integrated producer, processor and marketer of chicken and chicken-based convenience foods, with 68,000 team... -
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...: The Company recognizes sales revenue upon shipment of product. Certain international sales revenue and live swine sales revenue are recognized after transfer of title or delivery of product, which may occur after shipment. Advertising and Promotion Expenses: Advertising and promotion expenses are... -
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TYSON FOODS, INC. 2000 ANNUAL REPORT Recently Issued Accounting Standards: On October 1, 2000, the Company adopted Financial Accounting Standards Board Statement (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended, ... -
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... Brook Foods, its integrated turkey production and processing business, and its Albert Lea, Minn., processing facility which primarily produced sausages, lunch and deli meats. In addition, on December 31, 1998, the Company sold its National Egg Products Company operations in Social Circle, Ga. These... -
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS TYSON FOODS, INC. 2000 ANNUAL REPORT NOTE 6: FINANCIAL INSTRUMENTS Commodity and Foreign Currency Contracts: At September 30, 2000, and October 2, 1999, the Company held the following commodity and foreign currency contracts: dollars in millions, except ... -
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...'s Office for the Eastern District of Tennessee into possible violations of the Immigration and Naturalization Act at several of the Company's locations. On October 5, 2000, the Company was advised that, in addition to a number of its employees, the Company itself is a subject of the investigation... -
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...2000 ANNUAL REPORT On January 20, 2000, McCarty Farms, Inc. (McCarty), a former subsidiary of the Company which has been merged into the Company, was indicted in the U.S. District Court for the Southern District of Mississippi, Jackson Division, for conspiracy to violate the federal Clean Water Act... -
Page 42
... compensation in shareholders' equity. A summary of the Company's stock option activity for the nonqualified stock option plan is as follows: Shares under option Weighted average exercise price per share in millions Maturity 2000 1999 Outstanding, September 27, 1997 Exercised Canceled Granted... -
Page 43
... contribution retirement and incentive benefit programs for various groups of Company personnel. Company contributions totaled $32 million, $33 million and $32 million in 2000, 1999 and 1998, respectively. Net income As reported Pro forma Earnings per share As reported Basic Diluted Pro forma... -
Page 44
... rate are as follows: 2000 1999 1998 U.S. federal income tax rate Amortization of excess of investments over net assets acquired 4.3 5.3 1.6 (6.3) (0.7) 34.9% 64.7% (1.0) 10.9 (3.8) 23.6 1.4 (5.2) 0.1 35.6% State income taxes (benefit) Foreign (benefit) losses Other 35.0% 35.0% 35.0% The Company... -
Page 45
... of customers, resulting in four reported business segments: Food Service, Consumer Products, International and Swine. Food Service includes fresh, frozen and value-added chicken products sold through domestic foodservice, specialty and commodity distributors who deliver to restaurants, schools and... -
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... STATEMENTS TYSON FOODS, INC. 2000 ANNUAL REPORT Information on segments and a reconciliation to income before taxes on income and minority interest are as follows: in millions Food Service International Swine Seafood Other Consolidated Consumer Products Fiscal year ended September 30, 2000 Sales... -
Page 47
... long-lived assets were located in foreign countries, primarily Mexico, at fiscal years ended 2000, 1999 and 1998, respectively. The Company sells certain of its products in foreign markets, primarily China, Hong Kong, Japan, Mexico, Puerto Rico and Russia. The Company's export sales for 2000, 1999... -
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... auditors engaged by the Company. These November 13, 2000 John Tyson Chairman of the Board, President and Chief Executive Officer Steven Hankins Executive Vice President and Chief Financial Officer meetings include discussions of internal accounting controls and the quality of financial reporting... -
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REPORT OF INDEPENDENT AUDITORS TYSON FOODS, INC. 2000 ANNUAL REPORT BOARD OF DIRECTORS AND SHAREHOLDERS We have audited the accompanying consolidated balance sheets of Tyson Foods, Inc., as of September 30, 2000, and October 2, 1999, and the related consolidated statements of income, shareholders'... -
Page 50
... pretax charge related to Tyson de Mexico losses. 3. The results for 1999 include a $77 million pretax charge for loss on sale of assets and impairment write-downs. 4. Significant business combinations accounted for as purchases: Hudson Foods, Inc. and Arctic Alaska Fisheries Corporation on January... -
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... executive vice president of international foods, vice president of corporate strategic planning, president of the frozen foods division and vice president of marketing. Ms. Allen was elected to the board in November 2000. 1 Executive Committee 2 Audit Committee Committee Committee 3 Compensation... -
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... Lovette President, Food Service Group Donnie Smith Executive Vice President, Supply Chain Management Randy Smith Senior Vice President and General Manager, Food Service QSR Chain Division John Thomas President, The Pork Group, Inc. John H. Tyson Chairman, President and Chief Executive Officer David... -
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... 2000, may be obtained by Tyson shareholders by writing to: Director of Investor Relations Tyson Foods, Inc. P.O. Box 2020 Springdale, AR 72765-2020 Telephone (501) 290-4826 Fax (501) 290-6577 E-mail: [email protected] If your Tyson stock is registered in your own name(s), send change of address... -
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... seeking information about Tyson Foods should contact: Ed Nicholson Director of Media & Community Relations Tyson Foods, Inc. P.O. Box 2020 Springdale, AR 72765-2020 Telephone (501) 290-4591 Fax (501) 290-7984 E-mail: [email protected] NEWS RELEASES DIVIDENDS Tyson currently pays dividends four... -
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GRILLED BREAST STRIPS CHICKEN CORDON BLEU ROASTED LEG QUARTER -
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Tyson Foods, Inc. 2210 West Oaklawn Drive Springdale, Arkansas 72762-6999 www.tyson.com