Tyson Foods 2008 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 of the 2008 Tyson Foods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

48 Tyson Foods, Inc.
Notes to Consolidated Financial Statements (continued)
NOTE 11: COMPREHENSIVE INCOME (LOSS)
The components of accumulated other comprehensive income are
as follows:
in millions 2008 2007
Accumulated other comprehensive income:
Currency translation adjustment $ 60 $62
Unrealized net hedging losses, net of taxes (8) (6)
Unrealized net loss on investments, net of taxes (1) –
Postretirement benefi ts reserves adjustments(1) (10) (6)
Total accumulated other comprehensive income $ 41 $50
(1) Fiscal 2007 includes adjustment of $3 million, net of tax, related to the initial adoption
of SFAS No. 158. Refer to Note 13, “Pensions and Other Postretirement Benefi ts.”
The components of other comprehensive income (loss) are as follows:
Before Income After
in millions Tax Tax Tax
Fiscal 2008:
Currency translation adjustment $ (2) $ – $ (2)
Net change in postretirement liabilities (10) 6 (4)
Investments unrealized loss (1) – (1)
Net hedging gain 6 (2) 4
Net hedging gain reclassifi ed
to income statement (10) 4 (6)
Other comprehensive loss – 2008 $(17) $ 8 $ (9)
Fiscal 2007:
Currency translation adjustment $ 24 $ – $ 24
Pension unrealized gain, prior to
adoption of SFAS No. 158 9 (3) 6
Net hedging gain 33 (13) 20
Net hedging gain reclassifi ed
to income statement (33) 13 (20)
Other comprehensive income – 2007 $ 33 $ (3) $ 30
Fiscal 2006:
Currency translation adjustment $ (6) $ – $ (6)
Pension unrealized loss, prior to
adoption of SFAS No. 158 (16) 6 (10)
Investments unrealized gain 1 – 1
Net hedging gain 1 – 1
Net hedging loss reclassifi ed
to income statement 6 (3) 3
Other comprehensive loss – 2006 $ (14) $ 3 $(11)
NOTE 12: STOCK-BASED COMPENSATION
We issue shares under our stock-based compensation plans by issuing Class A stock from treasury. The total number of shares available for
future grant under the Tyson Foods, Inc. 2000 Stock Incentive Plan (Incentive Plan) was 24,823,940 at September 27, 2008.
STOCK OPTIONS
Shareholders approved the Incentive Plan in January 2001. The Incentive Plan is administered by the Compensation Committee of the Board
of Directors (Compensation Committee). The Incentive Plan includes provisions 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. Nonqualifi ed 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
exercisable ratably over two to fi ve years from the date of grant and must be exercised within 10 years from the date of grant. Our policy is
to recognize compensation expense on a straight-line basis over the requisite service period for the entire award.
Weighted Weighted
Average Average Aggregate
Exercise Remaining Intrinsic
Shares Under Price Contractual Value
Option Per Share Life (in Years) (in millions)
Outstanding, September 29, 2007 15,482,915 $ 14.20
Exercised (699,470) 11.98
Canceled (1,157,895) 15.33
Granted 3,280,464 15.06
Outstanding, September 27, 2008 16,906,014 14.38 6.6 $243
Exercisable, September 27, 2008 7,464,489 $12.94 4.8 $ 97