Tyson Foods 2002 Annual Report Download - page 50

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Note 16: Earnings Per Share
The weighted average common shares used in the computation of basic and diluted earnings per share were as follows:
in millions, except per share data
2002 2001 2000
Numerator:
Net Income $ 383 $ 88 $ 151
Denominator:
Denominator for basic earnings per share –weighted average shares 348 221 225
Effect of dilutive securities:
Stock options and restricted stock 711
Denominator for diluted earnings per share – adjusted weighted
average shares and assumed conversions 355 222 226
Basic earnings per share $1.10 $0.40 $0.67
Diluted earnings per share $1.08 $0.40 $0.67
Approximately 6 million shares of the Company’s option shares outstanding at September 28, 2002, were antidilutive and were
not included in the dilutive earnings per share calculation for the year ended September 28, 2002. 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 17: Segment Reporting
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 52 weeks and nine weeks of IBP’s operating results for
the periods ending September 28, 2002, and September 29, 2001, respectively.
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 sale 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 domestic 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 foodservice, domestic retail
markets for at-home consumption, wholesale club markets targeted to small foodservice operations, small businesses and individuals,
as well as specialty and commodity distributors who deliver to restaurants, schools and international markets throughout the world.
The chicken segment also includes sales from allied products and the Company’s chicken breeding stock subsidiary.
Pork segment represents the Company’s live swine group, hog slaughter and fabrication operations, case-ready products and
related allied product processing activities. The pork segment markets its products to food retailers, distributors, wholesalers,
restaurants and hotel chains and other food processors in domestic and international markets. It also sells allied products to
pharmaceutical and technical products manufacturers, as well as live swine to pork processors.
Prepared Foods segment includes the Company’s operations that manufacture and market frozen and refrigerated food products.
Products include pepperoni, beef and pork toppings, pizza crusts, flour and corn tortilla products, appetizers, hors d’oeuvres, desserts,
prepared meals, ethnic foods, soups, sauces, side dishes, specialty pasta and meat dishes as well as branded and processed meats.
Other segment includes the logistics group and other corporate groups not identified with specific protein groups.
Tyson Foods, Inc. 2002 annual report