Tyson Foods 2004 Annual Report Download - page 52

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50
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE TWELVE : COMPREHENSIVE INCOME (LOSS)
The components of accumulated comprehensive income (loss) are
as follows:
in millions 2004 2003
Accumulated other comprehensive income (loss):
Currency translation adjustment $21 $(2)
Unrealized net hedging losses, net of taxes (30) (9)
Unrealized net gain on investment, net of taxes 11
Minimum pension liability adjustment, net of taxes (4) (5)
Total accumulated comprehensive loss $(12) $(15)
NOTE THIRTEEN : STOCK OPTIONS AND RESTRICTED STOCK
The shareholders approved the Tyson Foods, Inc. 2000 Stock Incentive
Plan (Incentive Plan) in January 2001. The Incentive Plan is administered
by the Compensation Committee of the Board of Directors and
permits awards of shares of Class A stock, awards of derivative
securities related to the value of Class A stock and tax reimbursement
payments to eligible persons. The Incentive Plan provides for the
award of a variety of equity-based incentives such as incentive
stock options, nonqualified stock options, stock appreciation rights,
dividend equivalent rights, performance unit awards and phantom
shares. The Incentive Plan provides for granting incentive stock options
for shares of Class A stock at a price not less than the fair market
value at the date of grant. Nonqualified stock options may be granted
at a price equal to, less than or more than the fair market value of
Class A stock on the date that the option is granted. Stock options
under the Incentive Plan generally become exercisable ratably over
three to eight years from the date of grant and must be exercised
within 10 years from the date of grant.
A summary of the Company’s stock option activity is as follows:
Weighted Average
Shares Under Exercise Price
Option Per Share
Outstanding, September 29, 2001 16,318,203 $12.27
Exercised (800,596) 9.50
Canceled (997,816) 12.97
Granted 2,509,695 9.45
Outstanding, September 28, 2002 17,029,486 12.01
Exercised (775,682) 8.99
Canceled (1,697,581) 13.38
Granted 6,316,704 11.69
Outstanding, September 27, 2003 20,872,927 11.94
Exercised (3,329,555) 11.49
Canceled (704,928) 12.41
Granted 3,526,137 15.96
Outstanding, October 2, 2004 20,364,581 $12.72
The number of options exercisable was as follows: October 2,
2004 –7,921,321, September 27, 2003 – 9,135,306 and September 28,
2002 – 9,373,360. The remainder of the options outstanding at
October 2, 2004, are exercisable ratably through September 2009.
The number of shares available for future grants was 17,703,157 and
21,327,929 at October 2, 2004, and September 27, 2003, respectively.
The following table summarizes information about stock options outstanding at October 2, 2004:
Options Outstanding Options Exercisable
Weighted Average Weighted Weighted
Range of Remaining Average Average
Exercise Shares Contractual Exercise Shares Exercise
Prices Outstanding Life (in Years) Price Exercisable Price
$ 5.43 – 8.03 825,661 3.6 $ 6.23 817,572 $ 6.23
8.13 – 10.73 5,287,821 6.3 9.59 2,156,710 9.69
10.75 – 13.33 7,374,422 7.7 12.18 1,643,999 11.48
13.41 – 15.17 1,017,140 1.1 14.95 1,017,140 14.95
15.96 – 18.00 5,859,537 6.9 16.74 2,285,900 17.92
20,364,581 7,921,321