Tyson Foods 2015 Annual Report Download - page 63
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Please find page 63 of the 2015 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.Dividends
CashdividendscannotbepaidtoholdersofClassBstockunlesstheyaresimultaneouslypaidtoholdersofClassAstock.Thepershareamountofthecash
dividendpaidtoholdersofClassBstockcannotexceed90%ofthecashdividendsimultaneouslypaidtoholdersofClassAstock.Wepayquarterlycash
dividendstoClassAandClassBshareholders.WepaidClassAdividendspershareof$0.40,$0.30,and$0.30infiscal2015,2014,and2013,respectively.We
paidClassBdividendspershareof$0.36,$0.27,and$0.27infiscal2015,2014,and2013,respectively.Fiscal2013includedaspecialdividendof$0.10per
shareforClassAstockand$0.09pershareforClassB.OnNovember19,2015,theBoardofDirectorsincreasedthequarterlydividendpreviouslydeclaredon
July30,2015,to$0.15pershareonourClassAstockand$0.135pershareonourClassBstock.TheincreasedquarterlydividendispayableonDecember15,
2015,toshareholdersofrecordatthecloseofbusinessonDecember1,2015.
ShareRepurchases
Infiscal2014,ourBoardofDirectorsapprovedanincreaseof25millionsharesauthorizedforrepurchaseunderoursharerepurchaseprogram.AsofOctober3,
2015,21.1millionsharesremainedavailableforrepurchase.Thesharerepurchaseprogramhasnofixedorscheduledterminationdateandthetimingandextentto
whichwerepurchaseshareswilldependupon,amongotherthings,ourworkingcapitalneeds,marketconditions,liquiditytargets,ourdebtobligationsand
regulatoryrequirements.Inadditiontothesharerepurchaseprogram,wepurchasesharesontheopenmarkettofundcertainobligationsunderourequity
compensationplans.
AsummaryofcumulativesharerepurchasesofourClassAStockisasfollows:
inmillions
October3,2015
September27,2014
September28,2013
Shares
Dollars
Shares
Dollars
Shares
Dollars
Sharesrepurchased:
Undersharerepurchaseprogram
11.0
$ 455
7.1
$ 250
21.1
$ 550
Tofundcertainobligationsunderequitycompensationplans
0.9
40
1.2
45
2.8
64
Totalsharerepurchases
11.9
$ 495
8.3
$ 295
23.9
$ 614
SubsequenttoOctober3,2015,wehaverepurchasedapproximately5.7millionsharesofourcommonstockunderoursharerepurchaseprogram.Theseshares
wererepurchasedfor$257million.
ShareIssuance
Infiscal2014,weissued23.8millionsharesofourClassAstock,toprovidefundingfortheHillshireBrandsacquisition.Totalproceeds,netofunderwriting
discountsandotherofferingrelatedfeesandexpenseswere$873million.
TangibleEquityUnits
Infiscal2014,wecompletedthepublicissuanceof30million,4.75%tangibleequityunits(TEUs).Totalproceeds,netofunderwritingdiscountsandother
expenses,were$1,454million.EachTEU,whichhasastatedamountof$50,iscomprisedofaprepaidstockpurchasecontractandasenioramortizingnotedue
July15,2017.WeallocatedtheproceedsfromtheissuanceoftheTEUstoequityanddebtbasedontherelativefairvaluesoftherespectivecomponentsofeach
TEU.Thefairvalueoftheprepaidstockpurchasecontracts,whichwas$1,295million,wasrecordedinCapitalinExcessofParValue,netofissuancecosts.The
fairvalueofthesenioramortizingnotes,whichwas$205million,wasrecordedindebt.IssuancecostsassociatedwiththeTEUdebtwererecordedasdeferred
financingcostsintheConsolidatedBalanceSheetsinOtherAssetsandareamortizedoverthetermoftheinstrumenttoJuly15,2017.
TheaggregatevaluesassigneduponissuanceofeachcomponentoftheTEU's,basedontherelativefairvalueoftherespectivecomponentsofeachTEU,wereas
follows:
inmillions,exceptpriceperTEU
EquityComponent
DebtComponent
Total
PriceperTEU $ 43.17
$ 6.83
$ 50.00
GrossProceeds 1,295
205
1,500
Issuancecost (40)
(6)
(46)
Netproceeds $ 1,255
$ 199
$ 1,454
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