Tyson Foods 2002 Annual Report Download - page 48

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notes to
consolidated
financial
statements
p 46
The Company applies Accounting Principles Board Opinion No. 25 and related interpretations in accounting for its employee
stock option plans. Accordingly, no compensation expense was recognized for its stock option plans. Had compensation cost for the
employee stock option plans been determined based on the fair value method of accounting for the Company’s stock option plans,
the tax-effected impact would be as follows:
in millions, except per share data
2002 2001 2000
Net Income
As reported $ 383 $ 88 $ 151
Pro forma 379 85 148
Earnings per share
As reported
Basic 1.10 0.40 0.67
Diluted 1.08 0.40 0.67
Pro forma
Basic 1.09 0.38 0.66
Diluted 1.07 0.38 0.65
Pro forma net income reflects only options granted after fiscal 1995. Additionally, the pro forma disclosures are not likely to be
representative of the effects on net income for future years.
Note 13: Benefit Plans
The Company has defined contribution retirement and incentive benefit programs for various groups of Company personnel.
Company contributions totaled $50 million, $35 million and $32 million in 2002, 2001 and 2000, respectively.
Note 14: Transactions with Related Parties
The Company has operating leases for farms, equipment and other facilities with the former Senior Chairman of the Board of
Directors of the Company and certain members of his family, as well as a trust controlled by him, for rentals of $9 million in 2002,
$9 million in 2001 and $7 million in 2000. Other facilities have been leased from other officers and directors for rentals totaling
$2 million in 2002, $2 million in 2001 and $3 million in 2000.
Certain officers and directors are engaged in chicken and swine growout operations with the Company whereby these individuals
purchase animals, feed, housing and other items to raise the animals to market weight. The total value of these transactions amounted
to $10 million in 2002, $10 million in 2001 and $11 million in 2000.
Note 15: Income Taxes
Detail of the provision for income taxes consists of:
in millions
2002 2001 2000
Federal $173 $ 50 $73
State 17 55
Foreign 20 35
$210 $ 58 $83
Current $188 $105 $36
Deferred 22 (47) 47
$210 $ 58 $83
Tyson Foods, Inc. 2002 annual report