Tyson Foods 2000 Annual Report Download - page 45

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TYSON FOODS, INC. 2000 ANNUAL REPORT
NOTE 15: EARNINGS PER SHARE The weighted average common shares used in the computa- tion of basic and diluted earnings per share were as follows:
in millions, except per share data
2000 1999 1998
Numerator:
Net income $ 151 $ 230 $ 25
Denominator:
Denominator for basic
earnings per share – weighted average shares 225 230 227
Effect of dilutive securities:
Stock options and
restricted stock 111
Denominator for diluted
earnings per share – adjusted weighted average shares and
assumed conversions 226 231 228
Basic earnings per share $0.67 $1.00 $0.11 Diluted earnings per share $0.67 $1.00 $0.11
The Company had approximately seven million option
shares outstanding at September 30, 2000, that were not included in the dilutive earnings per share calculation because they would be antidilutive.
NOTE 16: SEGMENT REPORTING The Company presently 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. Food Service includes fresh, frozen and value-added chicken products sold through domestic foodservice, specialty and commodity distributors who deliver to restaurants, schools and other accounts. Consumer Products includes fresh, frozen and value-added chicken products sold through domestic retail markets for at-home consumption and through wholesale club markets targeted to small foodservice operators, individuals and small businesses. The Company’s International segment markets and sells the full line of Tyson chicken products throughout the world. The Company’s Swine segment includes feeder pig finishing and marketing of swine to regional and national packers. The Company’s seafood business, which was sold on July 17, 1999, is listed as a business segment for fiscal 1999 and 1998. The Company measures segment profit as gross profit less selling expenses. The majority of revenue included in the other category is derived from the Company’s Specialty Products and Prepared Foods groups, the Company’s wholly owned subsidiaries involved in supplying chicken breeding stock and trading agricultural goods worldwide, as well as the Company’s turkey and egg products facilities, which were sold on December 31, 1998. Sales between reportable segments are recorded at cost. The majority of identifiable assets in the other category include excess of investments over net assets acquired, investments and other assets and other corporate unallocated assets.
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