Tyson Foods 2015 Annual Report Download - page 95
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Please find page 95 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.ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Notapplicable.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Anevaluationwasperformed,underthesupervisionandwiththeparticipationofmanagement,includingtheChiefExecutiveOfficer(CEO)andtheChief
FinancialOfficer(CFO),oftheeffectivenessofthedesignandoperationofourdisclosurecontrolsandprocedures(asdefinedinRule13a-15(e)underthe
SecuritiesExchangeActof1934,asamended(the1934Act)).Basedonthatevaluation,theCEOandCFOconcludedthat,asofOctober3,2015,ourdisclosure
controlsandprocedureswereeffective.
Changes in Internal Control Over Financial Reporting
InthequarterendedOctober3,2015,therehavebeennochangesintheCompany’sinternalcontroloverfinancialreportingthathavemateriallyaffected,orare
reasonablylikelytomateriallyaffect,theCompany’sinternalcontroloverfinancialreporting.
Management’s Annual Report on Internal Control Over Financial Reporting
Managementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,asdefinedinRule13a-15(f)ofthe1934Act.Our
internalcontroloverfinancialreportingwasdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationof
financialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Becauseofitsinherentlimitations,internalcontrolover
financialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthat
controlsmaybecomeinadequatebecauseofchangesinconditions,orthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
ManagementconductedanevaluationoftheeffectivenessofourinternalcontroloverfinancialreportingasofOctober3,2015.Inmakingthisassessment,we
usedcriteriasetforthbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO)inInternalControl–IntegratedFramework(2013).
BasedonthisevaluationundertheframeworkinInternalControl–IntegratedFramework(2013)issuedbyCOSO,managementconcludedtheCompany’s
internalcontroloverfinancialreportingwaseffectiveasofOctober3,2015.
TheCompany’sindependentregisteredpublicaccountingfirm,PricewaterhouseCoopersLLP,whohasauditedthefiscal2015financialstatementsincludedinthis
AnnualReportonForm10-KhasalsoauditedtheeffectivenessoftheCompany’sinternalcontroloverfinancialreporting.ItsreportappearsinPartII,Item8of
thisAnnualReportonForm10-K.
ITEM 9B. OTHER INFORMATION
OnNovember19,2015,weenteredintoanewemploymentagreementwithDonnieSmith,ourPresidentandChiefExecutiveOfficer.Thiscontractreplacesthe
previouscontractforMr.SmithenteredintoNovember14,2012.
Mr.Smith’sagreementprovidesforanannualbasesalaryof$1,175,000.Theagreementprovidesforeligibilityfor(i)performanceandincentiveawardsunder
annualandlong-termcashandequityincentiveplansthenineffect,ontermsandinamountsconsistentwiththoseasdeterminedbyandsubjecttothediscretionof
theCompensationandLeadershipDevelopmentCommitteeofourBoardofDirectors,(ii)theCompany’ssupplementalexecutiveretirementplan,(iii)anybenefit
programsgenerallyapplicabletoexecutiveofficersoftheCompany,and(iv)useofCompany-ownedassets,includingaircraftupto50hoursannually,subjectto
theCompany’suseandpolicies,alongwithreimbursementandgross-upforanytaxliabilityassociatedwithsuchuse.
Mr.Smithmayterminatehisemploymentundertheagreement,subjecttoconfidentialityandnon-competeobligationscontainedtherein,upon30days’prior
writtennoticetotheCompany.TheCompanyhastherighttoterminatetheagreementatanytimeuponwrittennoticetoMr.Smith.Anysuchterminationwithout
causeissubjecttotheCompany’sobligationtocontinuetopaybasesalaryfor36monthsfollowingterminationconsistentwiththeSeverancePayPlanfor
ContractedOfficersandsubjecttoprovisionsrelatingtotheearlyvestingofstockoptions,restrictedstockandperformancestockawards.
Upontheoccurrenceofachangeincontrol(asdefinedintheagreement),allpreviouslygrantedrestrictedstock,performancestockandstockoptionawardswill
betreatedinaccordancewiththeapplicableawardagreement.
TheforegoingdescriptionofMr.Smith’semploymentagreementisqualifiedinitsentiretybyreferencetothefulltextofsuchagreement,whichisfiledasExhibit
10.17tothisForm10-Kandincorporatedbyreferenceherein.
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