Tyson Foods 2015 Annual Report Download - page 64
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Please find page 64 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.Eachsenioramortizingnotehasaninitialprincipalamountof$6.83andbearsinterestat1.5%perannum.OneachJanuary15,April15,July15andOctober15,
wewillpayequalquarterlycashinstallmentsof$0.59peramortizingnotewhichcashpaymentintheaggregate(principalandinterest)isequivalentto4.75%per
yearwithrespecttothe$50statedamountperTEU.Eachinstallmentconstitutesapaymentofinterestandpartialrepaymentofprincipal.Unlesssettledearlierat
theholder'sortheCompany'soption,eachpurchasecontractwillautomaticallysettleonJuly15,2017,subjecttopostponementincertainlimitedcircumstances.
Wewilldeliverbetweenaminimumof31.8millionsharesandamaximumof39.8millionsharesofourClassAstock,subjecttoadjustment,baseduponthe
ApplicableMarketValue(asdefinedbelow)ofourClassAstockasdescribedbelow:
• IftheApplicableMarketValueisequaltoorgreaterthantheconversionpriceof$47.14pershare,wewilldeliver1.0606sharesofClassAstockper
purchasecontract,oraminimumof31.8millionClassAshares.
•IftheApplicableMarketValueisgreaterthanthereferencepriceof$37.71butlessthantheconversionpriceof$47.14pershare,wewilldelivera
numberofsharesperpurchasecontractequalto$50,dividedbytheApplicableMarketValue.
•IftheApplicableMarketValueislessthanorequaltothereferencepriceof$37.71pershare,wewilldeliver1.3260sharesofClassAstockperpurchase
contract,oramaximumof39.8millionClassAshares.
The"ApplicableMarketValue"meanstheaverageoftheclosingpricesofourClassAstockoneachofthe20consecutivetradingdaysbeginningon,and
including,the23rdscheduledtradingdayimmediatelyprecedingJuly15,2017.
OnSeptember15,2015,wepaidourquarterlydividendtoshareholdersofrecordatSeptember1,2015,equalto$0.10pershareonourClassAstock.Theamount
ofthedistributionexceededthe$0.075persharedividendthresholdamount.Consequently,thesettlementrates,referencepriceandconversionpricewereadjusted
andarereflectedabove.
TheTEUshaveadilutiveeffectonourearningspershare.The31.8millionminimumsharestobeissuedareincludedinthecalculationofClassABasicweighted
averageshares.The8millionsharedifferencebetweentheminimumsharesandthe39.8millionmaximumsharesarepotentiallydilutivesecurities,and
accordingly,areincludedinourdilutedearningspershareonaproratabasistotheextenttheApplicableMarketValueishigherthanthereferencepricebutisless
thantheconversionprice.
NOTE 9: INCOME TAXES
Detailoftheprovisionforincometaxesfromcontinuingoperationsconsistsofthefollowing:
inmillions
2015
2014
2013
Federal $ 564
$ 325
$ 341
State 89
67
38
Foreign 44
4
30
$ 697
$ 396
$ 409
Current $ 659
$ 501
$ 421
Deferred 38
(105)
(12)
$ 697
$ 396
$ 409
Thereasonsforthedifferencebetweenthestatutoryfederalincometaxrateandoureffectiveincometaxratefromcontinuingoperationsareasfollows:
2015
2014
2013
Federalincometaxrate 35.0%
35.0%
35.0%
Stateincometaxes 3.1
2.8
2.4
Unrecognizedtaxbenefits,net (1.8)
(4.7)
(0.2)
Domesticproductiondeduction (3.7)
(4.0)
(3.2)
Foreignratedifferencesandvaluationallowances 3.8
2.8
0.3
Other (0.1)
(0.3)
(1.7)
36.3%
31.6%
32.6%
Duringfiscal2015,thedomesticproductiondeductionandchangesinunrecognizedtaxbenefitsdecreasedtaxexpenseby$72millionand$34million,
respectively,andstatetaxexpense,netoffederaltaxbenefit,was$59million.Additionally,foreignratedifferences,mostlydrivenbytheChinaimpairment,
unfavorablyimpactedtaxexpenseby$73million.ThesaleoftheMexicoandBraziloperationsandrelatedrepatriationofproceedsdidnothaveasignificant
impactontheeffectiveincometaxrate.
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