Tyson Foods 2003 Annual Report Download - page 56

Approximately 8 million, 6 million and 10 million of the
Company’s option shares outstanding at September 27,
2003, September 28, 2002, and September 29, 2001,
respectively, were antidilutive and were not included in the
dilutive earnings per share calculation. 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:
Chicken, Beef, Pork, Prepared Foods and Other. The
Company measures segment profit as operating income.
The following information includes 52 weeks of IBP’s
operating results for the periods ending September 27,
2003, and September 28, 2002, and nine weeks for the
period ending September 29, 2001.
Chicken segment is primarily involved in the processing
of live chickens into fresh, frozen and value-added
chicken products sold through domestic foodservice,
domestic food retailers, wholesale club markets that
service 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
chicken breeding stock subsidiary.
Beef segment is primarily involved in the processing 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 prod-
ucts such as hides and variety meats for sale to further
processors and others. The Beef segment markets its
17
products to food retailers, distributors, wholesalers,
restaurants, hotel chains and other food processors in
domestic and international markets. Allied products are
also marketed to manufacturers of pharmaceuticals and
technical products.
Pork segment is primarily involved in the processing of
live market hogs and fabrication of pork carcasses into
primal and sub-primal cuts and case-ready products.
This segment also represents the Company’s live swine
group and related allied product processing activities.
The Pork segment markets its products to food retailers,
distributors, wholesalers, restaurants, 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. The Prepared Foods segment markets
its products to food retailers, distributors, wholesalers,
restaurants and hotel chains.
Other segment includes the logistics group and other cor-
porate activities not identified with specific protein groups.
This segment also includes proceeds of $167 million
received in fiscal 2003 related to the settlement of the
vitamin antitrust litigation, as compared to $30 million
received in fiscal 2002.
54 Tyson Foods, Inc.
notes to consolidated financial statements
TYSON FOODS, INC. 2003 ANNUAL REPORT