Tyson Foods 2001 Annual Report Download - page 46

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TYSON FOODS, INC. 2001 ANNUAL REPORT
Condensed Consolidating Statement of Cash Flows for the year ended September 29, 2001
in millions
Tyson IBP Adjustments Consolidated
Cash Flows From Operating Activities:
Net income $70 $18 $ – $ 88
Net changes in working capital 130 (14) 116
Depreciation 264 30 294
Amortization 39 2 41
Deferred income taxes (73) 26 (47)
Other 415 19
Cash Provided by Operating Activities 434 77 511
Cash Flows From Investing Activities:
Additions to property, plant and equipment
(214) (47) (261)
Proceeds from sale of assets 32 1 33
Net cash paid for IBP acquisition (1,707) 37 (1,670)
Purchase of Tyson de Mexico minority interest (19) – (19)
Net change in other assets and liabilities (95) (6) (101)
Cash Used for Investing Activities (2,003) (15) (2,018)
Cash Flows From Financing Activities:
Net change in debt
1,656 (72) 1,584
Purchase of treasury shares (48) – (48)
Proceeds from exercise of IBP stock options –34 34
Dividends and other (34) (1) (35)
Cash Provided by (Used for) Financing Activities 1,574 (39) 1,535
Effect of Exchange Rate Change on Cash (1) – (1)
Increase (Decrease) in Cash and Cash Equivalents 423 27
Cash and Cash Equivalents at Beginning of Year 43 – 43
Cash and Cash Equivalents at End of Year $47 $23 $ – $ 70
NOTE 11: STOCK OPTIONS
AND RESTRICTED STOCK
The shareholders approved the 2000 Stock Incentive Plan
(Incentive Plan) in January 2001. The Incentive Plan is admin-
istered by the Compensation Subcommittee of the Board of
Directors and permits awards of shares of Class A stock, awards
of derivative securities related to the value of Class A stock and
tax reimbursement payments to eligible persons. The Incentive
Plan provides for the award of a variety of equity-based incentives
such as incentive stock options, nonqualified stock options, stock
appreciation rights, dividend equivalent rights, performance
unit awards and phantom shares. The Incentive Plan provides for
granting incentive stock options for shares of Class A stock at a
price not less than the fair market value at the date of grant.
Nonqualified stock options may be granted at a price equal to,
less than or more than the fair market value of Class A stock on
the date that the option is granted. Stock options under the
Incentive Plan generally become exercisable ratably over three to
eight years from the date of grant and must be exercised within
10 years from the date of grant.
In May 2000, the Company cancelled approximately four million
option shares and granted approximately one million restricted
shares of Class A stock. The restriction expires over periods through
December 1, 2003. At September 29, 2001, the Company had
outstanding approximately 800,000 restricted shares of Class A
stock with restrictions expiring over periods through July 1, 2020.
The unearned portion of the restricted stock is classified on the
Consolidated Balance Sheets as deferred compensation in share-
holders’ equity. Additionally, the Company assumed the IBP offi-
cer long-term stock plan, subject to certain restrictions, which
could result in delivery of approximately two million shares of
Class A stock. The vested liability at September 29, 2001, has
been classified as other liabilities.