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23
MANAGEMENT
’S DISCUSSION AND ANALYSIS
TYSON FOODS, INC. 2001 ANNUAL REPORT
Segment Information
In connection with the IBP acquisition, the Company became the
world’s largest protein provider and as a result, the composition
of its reportable segments changed. The Company operates in
five business segments: Beef, Chicken, Pork, Prepared Foods and
Other. The Company measures segment profit as operating
income. The following information includes nine weeks results
for the period ending September 29, 2001, related to the IBP
acquisition, stated prior to adjustments for minority interest.
Information on segments is as follows with prior periods restated
to conform to the Company’s new segment reporting.
Beef segment is primarily involved in the slaughter of live fed
cattle and fabrication of dressed beef carcasses into primal and
sub-primal meat cuts and case-ready products. It also involves
deriving value from allied products such as hides and variety
meats for sales to further processors and others. The Beef segment
markets its products to food retailers, distributors, wholesalers,
restaurants and hotel chains and other food processors in domes-
tic and international markets. Allied products are also marketed
to manufacturers of pharmaceuticals and technical products.
Chicken segment includes fresh, frozen and value-added chicken
products sold through domestic food service, domestic retail
markets for at-home consumption, wholesale club markets tar-
geted to small foodservice operations, individuals and small
business, specialty and commodity distributors who deliver to
restaurants, schools and international markets throughout the
world. Chicken also includes sales from allied products and its
chicken breeding stock subsidiary.
Pork segment represents the Company’s previously reported
live swine group and IBP’s hog slaughter and fabrication, case-
ready products and related allied product processing activities.
The Pork segment markets its products to food retailers, distrib-
utors, wholesalers, restaurants and hotel chains and other food
processors in domestic and international markets. It also sells
allied products to pharmaceutical and technical products manu-
facturers, as well as live swine to pork processors.
Prepared Foods segment includes the Company’s existing
prepared foods group along with most of IBP’s previously reported
Foodbrands America (Foodbrands) segment. The Prepared Foods
segment produces flour and corn tortilla products and specialty
pasta and meat dishes for restaurants, airlines and other major
customers. With the addition of Foodbrands, the Prepared Foods
segment also manufactures and markets frozen and refrigerated
food products such as pepperoni, beef and pork toppings,
pizza crusts, appetizers, hors d’oeuvres, desserts, prepared meals,
Mexican and Italian foods, soups, sauces, side dishes and branded
and processed meats.
Other segment includes the logistics group and other corpo-
rate groups not identified with specific protein groups.
Sales by Segment
dollars in millions
2001
2000 Change
Beef
$ 2,027
$ – $2,027
Chicken
7,217
6,907 310
Pork
619
157 462
Prepared Foods
846
294 552
Other
42
52 (10)
Total
$10,751
$7,410 $3,341
Operating Income (Loss) by Segment
dollars in millions
2001
2000 Change
Beef
$32
$– $32
Chicken
249
315 (66)
Pork
27
23 4
Prepared Foods
15
78
Other
(8)
3 (11)
Total
$315
$348 $(33)