Tyson Foods 2013 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2013 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 96

  • 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
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

63
As of September 28, 2013, we had $25 million of total unrecognized compensation cost related to stock option plans that will be
recognized over a weighted average period of 1.2 years.
Restricted Stock
We issue restricted stock at the market value as of the date of grant, with restrictions expiring over periods through fiscal 2016.
Unearned compensation is recognized over the vesting period for the particular grant using a straight-line method.
Number of Shares
Weighted
Average Grant-
Date Fair Value
Per Share
Weighted Average
Remaining
Contractual Life
(in Years)
Aggregate
Intrinsic Value
(in millions)
Nonvested, September 29, 2012 2,371,570 $ 15.29
Granted 185,804 20.64
Dividends 21,010 24.68
Vested (1,368,834) 14.74
Forfeited (70,851) 17.43
Nonvested, September 28, 2013 1,138,699 $ 16.86 1.0 $ 33
As of September 28, 2013, we had $8 million of total unrecognized compensation cost related to restricted stock awards that will be
recognized over a weighted average period of 1.0 year.
We recognized stock-based compensation expense related to restricted stock, net of income taxes, of $5 million, $7 million and $7
million for fiscal 2013, 2012 and 2011, respectively. The related tax benefit for fiscal 2013, 2012 and 2011 was $3 million, $4 million
and $5 million, respectively. We had 1.4 million, 1.2 million and 0.9 million restricted stock awards vest in fiscal 2013, 2012 and
2011, respectively, with a grant date fair value of $20 million, $17 million and $14 million, respectively.
Performance-Based Shares
We award performance-based shares of our Class A stock to certain senior executives. These awards are typically granted once a year.
Performance-based shares vest based upon the passage of time and the achievement of performance or market performance criteria,
ranging from 0% to 200%, as determined by the Compensation Committee prior to the date of the award. Vesting periods for these
awards are generally three years. We review progress toward the attainment of the performance criteria each quarter during the vesting
period. When it is probable the minimum performance criteria for an award will be achieved, we begin recognizing the expense equal
to the proportionate share of the total fair value of the Class A stock price on the grant date. The total expense recognized over the
duration of performance awards will equal the Class A stock price on the date of grant multiplied by the number of shares ultimately
awarded based on the level of attainment of the performance criteria. For grants with market performance criteria, the total expense
recognized over the duration of the award will equal the fair value as determined on the grant date, regardless if the market
performance criteria is met.
The following table summarizes the performance-based shares at the maximum award amounts based upon the respective performance
share agreements. Actual shares that will vest depend on the level of attainment of the performance-based criteria.
Number of Shares
Weighted
Average Grant-
Date Fair Value
Per Share
Weighted Average
Remaining
Contractual Life
(in Years)
Nonvested, September 29, 2012 174,062 $ 14.24
Granted 924,651 21.35
Vested (32,468) 12.35
Forfeited (64,935) 12.35
Nonvested, September 28, 2013 1,001,310 $ 20.99 2.0
We recognized stock-based compensation expense related to performance shares, net of income taxes, of $2.4 million, $0.2 million
and $0.3 million for fiscal 2013, 2012 and 2011, respectively. The related tax benefit for fiscal 2013, 2012 and 2011 was $1.5 million,
$0.1 million and $0.2 million, respectively. As of September 28, 2013, we had $10 million of total unrecognized compensation based
upon our progress toward the attainment of criteria related to performance-based share awards that will be recognized over a weighted
average period of 2.0 years.