Tyson Foods 2001 Annual Report Download - page 52

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TYSON FOODS, INC. 2001 ANNUAL REPORT
NOTE 17: SUPPLEMENTAL INFORMATION
in millions
2001 2000 1999
Supplemental Cash Flow
Information
Cash paid during the
period for:
Interest
$ 140 $116 $128
Income taxes 54 73 125
NOTE 18: QUARTERLY FINANCIAL
DATA (UNAUDITED)
in millions, except per share data
First Second Third Fourth
quarter quarter quarter quarter
2001
Sales $1,809 $1,895 $1,959 $5,088
Gross profit 222 174 241 453
Operating income 68 23 57 167
Net income (loss) 27 (6) 19 48
Basic earnings
(loss) per share
0.12 (0.03) 0.09 0.22
Diluted earnings
(loss) per share 0.12 (0.03) 0.09 0.22
2000
Sales $1,843 $1,852 $1,871 $1,844
Gross profit 274 256 230 197
Operating income 123 91 88 46
Net income 57 36 40 18
Basic earnings
per share 0.25 0.16 0.18 0.08
Diluted earnings
per share 0.25 0.16 0.18 0.08
The quarterly financial data above has been reclassified for
shipping and handling expenses as a result of the application of
EITF 00-10.
NOTE 19: CONTINGENCIES
The Company is involved in various lawsuits and claims made by
third parties on an ongoing basis as a result of its day-to-day
operations. Although the outcome of such items cannot be
determined with certainty, the Company’s general counsel and
management are of the opinion that the final outcome should
not have a material effect on the Company’s results of opera-
tions or financial position.
Wage and Hour/Labor Matters On June 22, 1999, 11 current and
former employees of the Company filed the case of M.H. Fox,
et al. v. Tyson Foods, Inc. (Fox v. Tyson) in the U.S. District Court
for the Northern District of Alabama claiming the Company
violated requirements of the Fair Labor Standards Act. The suit
alleges the Company failed to pay employees for all hours
worked and/or improperly paid them for overtime hours. The
suit generally alleges that (1) employees should be paid for time
taken to put on and take off certain working supplies at the
beginning and end of their shifts and breaks and (2) the use of
“mastercard” or “line” time fails to pay employees for all time
actually worked. Plaintiffs seek to represent themselves and all
similarly situated current and former employees of the
Company. At filing 159 current and/or former employees con-
sented to join the lawsuit and, to date, approximately 5,000
consents have been filed with the court. Discovery in this case is
ongoing. A hearing was held on March 6, 2000, to consider the
plaintiffs’ request for collective action certification and court-
supervised notice. No decision has been rendered. The Company
believes it has substantial defenses to the claims made and intends
to vigorously defend the case; however, neither the likelihood of
unfavorable outcome nor the amount of ultimate liability, if any,
with respect to this case can be determined at this time.
Substantially similar suits have been filed against several
other integrated poultry companies. In addition, organizing
activity conducted by representatives or affiliates of the United
Food and Commercial Workers Union against the poultry indus-
try has encouraged worker participation in Fox v. Tyson and the
other lawsuits.