Tyson Foods 2001 Annual Report Download - page 50

48
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TYSON FOODS, INC. 2001 ANNUAL REPORT
Approximately 10 million shares of the Company’s option
shares outstanding at September 29, 2001, were antidilutive and
were not included in the dilutive earnings per share calculation
for the year ended September 29, 2001. On September 28, 2001,
the Company issued approximately 129 million shares for the
remaining IBP shares. These shares were excluded from the fiscal
2001 weighted average share calculation along with the dilutive
effect of acquired stock options and restricted shares.
NOTE 16: SEGMENT REPORTING
In connection with the IBP acquisition, the Company became
the world’s largest protein provider and as a result, the composi-
tion 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 adjustment for minority interest.
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
targeted 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 pre-
pared 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.
The impact on previously reported unaudited interim periods
of the change in the composition of the reportable segments
discussed above would be to report primarily one single business
segment – chicken; therefore, the previously reported interim
periods have not been restated.