Tyson Foods 2002 Annual Report Download - page 40

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notes to
consolidated
financial
statements
p 38
Note 7: Property, Plant and Equipment
The major categories of property, plant and equipment and accumulated depreciation, at cost, are as follows:
in millions
2002 2001
Land $ 111 $ 114
Buildings and leasehold improvements 2,154 2,085
Machinery and equipment 3,419 3,218
Land improvements and other 185 174
Buildings and equipment under construction 414 379
6,283 5,970
Less accumulated depreciation 2,245 1,885
Net property, plant and equipment $4,038 $4,085
The Company capitalized interest costs of $9 million in 2002, $3 million in 2001 and $2 million in 2000 as part of the cost of
major asset construction projects. Approximately $137 million will be required to complete construction projects in progress at
September 28, 2002.
Note 8: Other Current Liabilities
Other current liabilities at September 28, 2002 and September 29, 2001 include:
in millions
2002 2001
Accrued salaries, wages and benefits $ 308 $270
Self insurance reserves 225 189
Income taxes payable 202 109
Property and other taxes 52 63
Other 297 226
Total other current liabilities $1,084 $857
Note 9: Commitments
The Company leases certain farms and other properties and equipment for which the total rentals thereon approximated $105 million
in 2002, $76 million in 2001 and $66 million in 2000. Most farm leases have terms ranging from one to 10 years with various renewal
periods. The most significant obligations assumed under the terms of the leases are the upkeep of the facilities and payments of
insurance and property taxes.
Minimum lease commitments under non-cancelable leases at September 28, 2002, total $197 million composed of $72 million
for 2003, $41 million for 2004, $31 million for 2005, $25 million for 2006, $17 million for 2007 and $11 million for later years. These
future commitments are expected to be offset by future minimum lease payments to be received under subleases of approximately
$5 million.
The Company assists certain of its swine and chicken growers in obtaining financing for growout facilities by providing the
growers with extended growout contracts and conditional operation of the facilities should a grower default under their growout
or loan agreement. The Company also guarantees debt of outside third parties of $66 million.
The Company enters into various future purchase commitments for finished live cattle and hogs. These purchase commitments
are at a market-derived price at the time of delivery or were fully hedged if the price was determined at an earlier date. The
commitments deliverable in any year is less than the operating requirements of that year.
Tyson Foods, Inc. 2002 annual report