Tyson Foods 2005 Annual Report Download - page 48

>> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
TYSON FOODS, INC. 2005 ANNUAL REPORT
Tyson Foods, Inc. >> 46
The following table summarizes information about stock options outstanding at October 1, 2005:
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
$ 8.54 –10.33 4,904,813 5.2 $ 9.31 3,068,838 $ 9.18
11.23 –11.63 3,634,804 6.1 11.43 2,150,714 11.46
13.33 –15.96 6,605,727 8.0 14.79 1,581,187 13.81
17.03 –18.00 2,197,950 1.1 17.92 2,188,950 17.92
17,343,294 8,989,689
No options were granted during the year ended October 1, 2005.
COMPREHENSIVE INCOME (LOSS)
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The components of accumulated comprehensive income (loss) are
as follows:
in millions 2005 2004
Accumulated other comprehensive income (loss):
Currency translation adjustment $ 44 $21
Unrealized net hedging losses, net of taxes (10) (30)
Unrealized net gain (loss) on investment,
net of taxes (1) 1
Minimum pension liability adjustment,
net of taxes (5) (4)
Total accumulated comprehensive income (loss) $ 28 $(12)
STOCK OPTIONS AND RESTRICTED STOCK
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Shareholders approved the Tyson Foods, Inc. 2000 Stock Incentive
Plan (Incentive Plan) in January 2001. The Incentive Plan is adminis-
tered 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 reimburse-
ment 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 the option is granted.
Stock options under the Incentive Plan generally become exercis-
able 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 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
Exercised (2,475,565) 11.27
Canceled (545,722) 13.23
Granted ––
Outstanding, October 1, 2005 17,343,294 $12.93
The number of options exercisable was as follows:
October 1, 2005 – 8,989,689, October 2, 2004 – 7,921,321 and
September 27, 2003 – 9,135,306. The remainder of the options
outstanding at October 1, 2005, are exercisable ratably through
September 2014. The number of shares available for future
grants was 16,228,525 and 17,703,157 at October 1, 2005, and
October 2, 2004, respectively.