Tyson Foods 2002 Annual Report Download - page 52

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notes to
consolidated
financial
statements
p 50
Note 18: Supplemental Information
in millions
2002 2001 2000
Cash paid during the period for:
Interest $208 $140 $116
Income taxes 90 54 73
Note 19: Quarterly Financial Data (Unaudited)
in millions, except per share data
First Second Third Fourth
Quarter Quarter Quarter Quarter
2002
Sales
$5,865 $5,839 $5,902 $5,761
Gross profit
510 397 464 446
Operating income
273 179 247 188
Net income
127 65 107 84
Basic earnings per share
0.36 0.19 0.31 0.24
Diluted earnings per share
0.36 0.18 0.30 0.24
2001
Sales $1,769 $1,857 $1,917 $5,020
Gross profit 182 137 198 386
Operating income 68 23 58 167
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
The quarterly financial data above has been reclassified for the applications of EITF 00-14 and EITF 00-25 for fiscal 2001.
Third quarter 2002 gross profit includes $30 million received as partial settlement from ongoing vitamin antitrust litigation.
Fourth quarter 2002 operating income includes a $22 million gain related to the sale of Specialty Brands and charges of $27 million
and $26 million related to the Thomas E. Wilson brand write-down and live swine restructuring, respectively.
Note 20: Contingencies
Wage and Hour/Labor Matters In 2000, the Wage and Hour Division of the U.S. Department of Labor (DOL) conducted
an industry-wide investigation of poultry producers, including the Company, to ascertain compliance with various wage and hour
issues. As part of this investigation, the DOL inspected 14 of the Company’s processing facilities. On May 9, 2002, the Secretary
of Labor filed a civil complaint against the Company in the U.S. District Court for the Northern District of Alabama. The complaint
alleges that the Company violated the overtime provisions of the federal Fair Labor Standards Act at the Company’s chicken-
processing facility in Blountsville, Alabama. The complaint does not contain a definite statement of what acts constituted alleged
violations of the statute. The Secretary seeks back wages for all employees at the Blountsville facility for a period of two years prior
to the date of the filing of the Complaint, an additional amount in liquidated damages and an injunction against future violations at
that facility and all other facilities operated by the Company. The Company has filed its initial answer and discovery has commenced.
The Company believes it has substantial defenses to the claims made in this case and intends to vigorously defend the case. However,
neither the likelihood of an unfavorable outcome nor the amount of ultimate liability, if any, with respect to this case can be
determined at this time.
Tyson Foods, Inc. 2002 annual report