Tyson Foods, Inc., headquartered in Springdale, Arkansas, is ......TYSON VS. THE COMPETITION U.S....

which came first?

TYSON FOODS, INC. 2000 ANNUAL REPORT

Tyson Foods, Inc., headquartered in Springdale, Arkansas, is the number one chicken company in the world. We are the world’s

largest fully integrated producer, processor and marketer of chicken and chicken-based convenience foods, with 68,000 team

members and 7,400 farm families in 100 communities. Tyson has operations in 18 states and 15 countries and exports to 73 countries

worldwide. We are the recognized market leader in almost every retail and foodservice market we serve. Through our Cobb-

Vantress subsidiary, Tyson is also a leading chicken breeding stock supplier. In addition, Tyson is the nation’s second largest

maker of corn and flour tortillas under the Mexican Original brand, as well as a leading provider of live swine.

2 Letter to Shareholders

7 Financial Highlights

8 Taking the LeadThere is more to leadership than selling chicken.

10 Getting There FirstOur strengths are what put us there first and are what keep us in our leadership position today.

12 Taking Our PlaceNot only is Tyson the leading brand of chicken in the United States, it is also the only truly national brand of chicken.

14 Discovering New OpportunitiesNew markets. New ideas. New trends.Tyson is on the leading edge.

16 Leaders Have ResponsibilityTyson is about more than chicken. We feela strong responsibility to the environment, our communities and people less fortunate.

19 Financial Review

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

BONELESS, SKINLESS BREAST HOME-STYLE PEPPER TENDERLOINS

WINGS OF FIRE

GROUND CHICKEN BURGER

John

Ty s o nC

hairman, President and C

hief Executive Officer

Tyson Foods, Inc. is first in the chicken industry. Year in and

year out we outperform

the competition, in good tim

es and

in bad. We are the best in the business, but our perform

ance

in 2000 didn’t meet our expectations or our potential.

In a market already overflow

ing with m

eat proteins,

the industry continued to expand. The results w

ere histori-

cally low prices that had a negative effect on earnings and

ultimately on our stock p

rice. In recognition of the over-

s u pp l y, last fall we announced a 3 percent production cut.

U n f o rt u n a t e l y, the industry did not follow

our lead, and

chicken supplies remained high.

Diluted earnings per share, excluding non-re c u rr i n g

items, w

ere $0.74 compared to $1.20 last year. R

eported sales

w e re $7.2 billion in 2000 com

pared to $7.4 billion in 1999.

R e p o rted diluted earnings per share w

ere $0.67 compared to

$1.00 last year.

It was a tough year, but w

e had several accomplish-

ments w

orth noting. We paid dow

n debt by $262 million.

We reduced inventory by 138 m

illion pounds. We bought

back $69 million of our stock. A

nd we did all this in a year

in which w

e took a $33 million charge on non-re c u rr i n g

items including a bad debt w

riteoff related to Am

eriServe

and growout issues at T

yson de Mexico. W

e are confident

about the year ahead, and our managem

ent team is com

-

mitted to im

proving performance.

STR

EN

GT

HS O

F T

HE

IND

UST

RY

LE

AD

ER

As I look forw

ard and assess the Com

pany’s strengths, I like

our position. Tyson is the best and biggest chicken com

pany

in the world. W

e have great people, and we are ranked as one

of the best companies to w

ork for in the food industry. We

have one of the most recognized brands in the U

nited States

and the number one brand in the chicken industry. W

e have

leading market share in virtually every segm

ent in which

we com

pete. We created and rem

ain today the innovator of

value-added, furt h e r- p rocessed chicken pro ducts. We are the

low-cost pro d u c e r. W

e produce products of the highest

q u a lity. We deliver those products through a state-of-the-art

distribution system. W

e have the most m

odern and pro d u ctive

asset base in the industry. We have a strong cash flow

.

We have a strong balance sheet that w

ill take us through all

market cycles. A

ll our team m

embers are w

orking toward

comm

on goals, and we link m

anagement pay to perform

-

ance through our balanced scorecard system. W

ith these

3

Tyson shareholders:

TY

SO

N V

S. T

HE

CO

MP

ET

ITIO

NU

.S. broiler production based on ready-to-cook pounds

9%Gold K

ist, Inc.

24%Tyson Foods, Inc.

8%Perdue Farms, Inc.

8%ConA

graPoultry C

o.

6%Pilgrim’s

Pride Corp.

45%R

est of Industry

Although, being first often has its price,

Source: Watt Poultry U.S.A., January 2000

strengths and our vision for the future, I believe Tyson

Foods is well positioned to take advantage of im

proving

market conditions.

Our vision at T

yson is to be the world’s first choice for

chicken while m

aximizing shareholder value. O

ur goals:

The capital investm

ent strategy we w

ill use to meet

these goals is based on return on invested capital (RO

IC).

Ou

r finan

ce comm

ittee oversees the strategy to

ensu

re

p ro fit i m p rovem

ent plans have an RO

IC that exceeds our

w e i g h ted

average cost of capital. Capital expenditures a re

do

wn

46

p e rcent from last year. Spending w

as less than

d e p rec i ation,yet significant enough to continue impro v i n g

the quality of our assets.

GR

OW

TH

TH

RO

UG

H IN

NO

VA

T I O N

Some

people m

ight think

research and

development

at

Tyson means searching for the next chicken nugget. W

hile

we’re alw

ays on the lookout for food innovations, that’s not

the only area for potential growth. O

ur R&

D efforts w

ill

lead to new products that w

ill reach less developed countries

as well as create new

opportunities domestically. W

e’re

using science and technology to create alternative uses for

non-prime chicken parts such as oils, proteins and fibers.

We rem

ain comm

itted to leading edge processing tech-

nology. This year, as part of our strategic initiatives, w

e

developed “The C

enter for Operational E

xcellence.” This is

a group of processing engineers and performance specialists

who help our plant m

anagement and equipm

ent suppliers

ensure optimum

equipment perform

ance and operational

best practices. To our know

ledge, we are the only com

pany

in our industry with such a resource.

Our com

mitm

ent to technology reaches much deeper

into the marketplace than just our products and plants. In

April w

e teamed w

ith the nation’s leading protein providers

to form

the

first industry

backed business-to-business

m a rketplace focused on m

eat and poultry. In July we joined

other foodservice industry leaders to develop eFS Netw

ork,

an Internet company that w

ill operate an independent

bu

siness-to

-busin

ess marketp

lace to facilitate su

pply

chain e ff iciencies w

ithin the foodservice business channel.

As a founding m

ember and partner in both com

panies, we

will be instrum

ental in designing the business processes that

will m

eet our customers’ changing needs in the future.

To maintain our com

petitive advantage in the market-

place, we continue to build brand aw

areness and brand

equity w

ith our

customers

and consum

ers, even

during

downturns in industry profits. L

ast spring we launched our

new advertising cam

paign that supports our brand promise

of quality chicken our consumers can trust. “T

yson. It’s

what your fam

ily deserves.”begs the question: W

hy would

you serve your family anything but the best?

Take good care of ou

r peop

le

Fulfill 100 p

ercent of ou

r customers’ n

eeds forchicken products

Continue building the value of the Tyson brand

Continue to grow

and defend our share intargeted m

arkets

Expand the geographic distribution of our products

Increase the international segment of our business

Continue

our leadership

in the

development

ofvalue-added products

Continue cost cutting initiatives

the advantages far outweigh the costs.

5

C R

E AT

ING

SHA

RE

HO

LDE

R VA

L U E

Going forw

ard we are setting financial goals on E

arnings

Per Share (EPS) and R

OIC

. We w

ant to achieve an average

double-digit EPS growth and an R

OIC

of 18 percent by 2003.

Focusing on these financial goals will help us create long-

term shareholder value.

I believe linkin

g managem

ent com

pensation to per-

f o rmance is also crucial to creating shareholder value. O

ur

b a lanced scorecard system com

bines our financial o b j e ct i v e

of R

OIC

w

ith the

business objectives

of our d i v i s i o n s ,

including operational goals, customer satisfaction, our brand

and our people. The balanced scorecard is re-evaluated each

year to reflect current realities, while m

aintaining a focus on

long-term perform

ance.

To meet the goals I’ve outlined in this letter, w

e must

continue to lead and to hold ourselves accountable for our

actions. By treating our people and our com

munities w

ith the

utmost respect and integrity, w

e will run this com

pany the

right way. I expect nothing less from

them, and I know

they

expect nothing less f rom m

e. We are com

mitted to strictly

complying w

ith all laws and regulations and adhering to the

highest ethical standards in the conduct of our business. It is

essential to the long-term interests of T

yson Foods, our team

mem

bers, our shareholders and the comm

unities in which w

e

live and work.

I’ve reviewed our governance structure, and I believe

we have a very strong board of directors – both in its m

em-

bership and in its organization. I do believe, though, that we

needed more independent directors; therefore, w

e have three

new

indepen

dent directo

rs, Jim K

ever, David

Jones and

Barb

ara Allen. Jim

is the CE

O of E

nvoy Corp., D

avid is

the c h a i rman and C

EO

of Rayovac, and B

arbara is the

p re sident and CO

O of Paladin R

esources. We’re proud to

have them w

ith us.

A B

RIG

HT

ER

FU

TU

RE

AH

EA

D

Fiscal 2000 was a challenge. C

onditions aren’t going to

change overnight, but we believe w

e’re taking the right steps

for 2001. We w

ill continue focusing on value-added pro ducts,

which are less susceptible to m

arket fluctuations. We have

the people, the products and the assets, and they are concen-

trated on meeting 100 percent of our custom

ers’ needs. We w

i l l

continue to be the leading strategic partner for our customers

– a partner they can rely on to meet all their chicken needs.

Creating long-term

shareholder value is at the heart of

all our goals, and we can achieve our goals if w

e work our

plan. Our goals are based on our strengths. W

e have the

right people. We have the right products. T

yson is the number

one chicken company in the w

orld. We know

this business

better than anyone. We w

ill be successful.

John TysonC

hairman, President and

Chief Executive O

fficer

Besides, there is only one #

1.

in millions, except per share data

2 0 0 01999

1998

Sales$7,158

$7,363$7,414

Gross profit

1,1141,309

1,154

Operating incom

e348

487204

Income before taxes on incom

e and minority interest

234371

71

Provision for income taxes

83129

46

Net incom

e151

23025

Diluted earnings per share

0.671.00

0.11

Diluted earnings per share before asset im

pairment

and other charges0.74

1.200.79

Asset im

pairment and other charges

2477

215

Shareholders’ equity2,175

2,1281,970

Book value per share

9.679.31

8.53

Total assets4,854

5,0835,243

Depreciation and am

ortization294

291276

Total debt1,542

1,8042,129

Capital expenditures

$196

$363

$310

Shares outstanding225

229231

Diluted average shares outstanding

226231

228

2000 FINA

NC

IAL H

IGH

LIGH

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

S A L E S

dollars in billionsN

ET IN

CO

ME

dollars in millions

DIL

UT

ED E

AR

NIN

GS

PER

SHA

RE

dollars

20001999

19982000

19991998

20001999

1998

7.47.2

7.4277

180167

1.20

1.00

0.67

25

0.790.74

0.11before no

n-recurring charges

7

151

230

Tyson team m

ember W

ilson Winn

shows V

incent Medina the variety

of Tyson

products

and services

available to help him expand his

menu w

ith chicken. As a partner,

Tyson provides

product research,

development, m

arketing and strate-gic planning resources.

CU

ST

OM

ER

SA

T I S F A C

T I O N

Tyson Foods may be the biggest chicken com

pany in the w o r l d ,

but w e ’ re m

ore concerned with being the best. It’s great to

have the number one brand of chicken, but w

e take a bro a de r

view of w

hat it means to be the leader.

Custom

er satisfaction has always been a top priority

and a key to our success. Our goal is to help custom

ers build

their businesses with chicken. A

s a partner, Tyson provides

product research,

development,

marketing

and strategic

planning resources.

Our custom

ers have rewarded us by relying on T

yson.

In the United States, T

yson is the leading chicken supplier

tog ro c e ry stores, club stores, national restaurants, food-

s e rvice distributors, supermarket delis, public school districts

and U.S. m

ilitary comm

issaries. In foodservice, Tyson w

as

named overall industry leader for the 13

t hconsecutive year

and poultry category leader for the 25th

consecutive year in

Institutional Distributor

magazine’s annual survey. In retail,

Tyson w

on the silver aw

ard as the best overall m

eat and

p o u l t ry supplier for the second consecutive year fro m

Progressive G

rocerm

agazine.

SA

FE

TY

We have expanded our leadership role in food safety education

by launching Food Wise, a com

prehensive program for con-

sumers, custom

ers and Tyson team m

embers. To keep t e a m

mem

bers up to date on the latest issues and technolog y,

the C

ompany provides consistent and ongoing training. In

conjunction with the U

niversity of Arkansas, Tyson has

developed a distance learning program that provides team

m e m

bers an o p p o rtunity to receive certification in the U.S.

D e p a rtm

ent of Agriculture ’s H

azard Analysis C

ritical Contro l

Point System and food safety m

anagement and allow

s them

to pursue a degree in food safety.

In addition to food safety, Tyson has strengthened its

com

mitm

ent to

team m

ember safety. T

yson

Total Safety

helps team m

embers to be m

ore aware of safety issues and

to incorporate safe practices as part of their daily lives.

At T

yson, safety is part of who w

e are, not something w

e

have to do.

TH

E E

NV

IRO

NM

EN

T

Tyson is also com

mitted to keeping the environm

ent safe.

Tyson operates its facilities w

ith the latest technology. Our

practices in water p

urification, energy conservation and

residual produ

ct recycling have set the standards in

the

poultry industry. Our com

mitm

ent to the environment also

extends to encouraging independent contract growers to

be good environmental stew

ards. We recognize gro w

e r s

for outstanding stewardship each year at our annual share-

holders meeting w

ith the Tyson Poultry E

nviro n m e n t a l

Stewardship A

wards.

Taking the lead.There is m

ore to leadership than

selling chicken.

9

getting there first

Tyson is

first in

the chicken

industry because we have the

best team m

embers and fam

ilyfarm

ers. They show pride not

only in their work but also in

the compassion they extend to

others. While w

ork is impor-

tant, we recognize those w

hodo m

ore – people who m

ake adifference in the lives of othersand in their com

munities. W

ecall them

Tyson Heroes, and w

erecognize them

at our annualshareholders m

eeting. Whether

they’re feeding the hun

gry, r a i s-ing m

oney for medical research

or h

elpin

g kid

s, Tyson

teamm

embers care.

Tyson is the most w

ell known

and tru

sted brand of chicken

in A

merica. W

ith 85 p

ercent

brand recognition

, the Ty s o nbrand

stands for quality chicken

you can trust. Our brand, like

our customer relationships, is

something com

petitors cannotduplicate.

Tyson Foods is a fully verticallyintegrated

chicken

comp

any.B

y m

anaging

every step

of

the p

rocess – breed

ing sto

ck,eg

gs, chicks, feed

, gro

wou

t,transportation, processing andd

istribu

tion – w

e ensu

re our

produ

cts are

of th

e high

estquality. Tyson chicken containsno horm

ones and no steroids.

It takes our three closest com-

petitors

combined

to

equalTyson’s size. O

ur size gives usth

e ability

and

flexibility to

serve custom

ers like

no one

else. W

hen

a large,

nationalcustom

er plans a chicken pro-m

otion, Tyson

can m

eet the

volume

demand.

We

can be

there first to fulfill 100 percentof

our custom

ers’ needs

forchicken products.

P E O P L E

B R

A N

DQ

U A

L I T YS I Z

E

LOW

-CO

ST

PR

OD

UC

ER

CU

ST

OM

ER

SE

RV

ICE

FINA

NC

IAL

ST

RE

NG

TH

R E S E A

R C H

&D

E V E L O P M

E N T

Tyson is the low-cost producer

in the chicken industry. With

our knowledge, m

odern assetbase,

feed form

ula, efficien

tprocesses,

best-use practices

and use of technology, Tysonleads the industry in efficiency.

Whatever our custom

er needs,it

is ou

r obligation

to m

eetthose needs and to satisfy thecustom

er. In

addition to

thepersonal attention of our cus-tom

er service representatives,Tyson

has

the

trucking

andw

arehousing resources to pro-vide superior custom

er service.W

e were first in

the p

ou

ltryin

dustry w

ith E

lectronic D

ataInterch

ange

to receive

andinvoice custom

er orders. Our

in-line bar code labeling systems

and computer based w

arehousem

anagement

systems

ensure

we

track ou

r p

roduct

fromth

e production line to the cus-tom

er’s warehouse.

Tyson is in a very stron

g finan

-cial p

osition

. With

one o

f the

strong

est balance

sheets in

the industry, our debt to capi-

talization ratio is at its lowest

since 1988. At the sam

e time,

we

have a

strong cash

flowfrom

our focus on value-addedprodu

cts. Although that doesn’t

comp

letely in

sulate u

s from

market fluctuations, w

e are lessaffected than our com

petitorsw

ho sell a higher percentage ofcom

modity products. W

ith oursuperior financial strength, w

eare w

ell positioned for growth

through

out

all cycles

of th

echicken industry.

Tyson

continu

es to

be the

industry’s leading innovator inproduct and process develop-m

ent.

Through

science

andem

erging technology, we focus

on developing

not only

new,

great-tasting chicken productsbut also on finding new

oppor-tunities to extend

the economic

and nutritional uses of chicken.

11

The new advertising cam

paign isdesigned

to boost

brand percep

-tions of quality, safety, value andtrust. The “Tyson. It’s w

hat yourfam

ily deserves.” ads inform con-

sumers that Tyson products contain

no hormones or steroids.

TH

E B

RA

ND

TO

TR

US

T

The them

e of the 1990s was “T

he Brand,” and for the past

five years, our advertising has been focused on building the

Tyson brand. T

oday, not only is Tyson the leading brand of

chicken in the United States, it is also the only truly national

brand of chicken. Whenever custom

ers choose Tyson, they

know they’ve selected the best chicken m

oney can buy.

Tyson has an 85 percent brand aw

areness. That m

eans

when people see the red and orange egg-shaped logo w

ith

the Tyson nam

e, they think “chicken.”

What’s next? W

e believe it is “Trust.” T

rust in the

quality of the product. Trust in the safety of the product.

Trust in the brand. T

rust in the company behind the brand.

The T

yson brand stands for high quality, great-tasting chicken.

Tyson branded chicken is produced w

ith unsurpassed atten-

tion to consistent quality, optimum

variety and food safety.

This translates into our Tyson brand prom

ise, “quality c h i c ken

you can trust.”

N A

TIO

NA

L AD

VE

RT

ISIN

G C

AM

PA

IGN

To continue to strengthen the brand, this year Tyson Foods

launched a new national advertising cam

paign. “Tyson. It’s

what your fam

ily deserves.” is designed to boost brand per-

ceptions of quality, safety, value and trust. The new

ads

a re p a rt of a larger marketing program

called “Ty s o n

for Families” that focuses on com

municating the C

o m p any’s

com

mitm

ent to

families an

d co

mm

un

ities thro u g h

a d v e rt i sing, cause

marketing,

promotions

and public

relations initiatives.

The cam

paign is based on research that consumers

want m

ore information on the food products they buy.

We’ve taken the C

ompany’s previous brand aw

areness and

convenience strategy one step further by focusing directly on

quality. Now

that consumers think “chicken” w

hen they

hear Tyson, the new

advertising will educate consum

ers on

the quality aspects of Tyson chicken.

The new

television spots, print ads and radio spots

inform consum

ers that Tyson chicken is naturally w

hole-

some and raised w

ithout hormones or steroids. E

ach ad

f e atures a different family-oriented them

e, reinforcing that

choosing Tyson chicken m

eans choosing the highest-quality

product for your family.

The new

campaign is not only relevant to our consum

ers

but also

ou

r custom

ers. Ou

r custo

mers share the sam

e

c o nc e rnsas our consum

ers about delivering quality chicken

with no horm

o n e sor steroids.

The “T

yson for Families” cam

paign helps to build u p o n

Ty s o n ’s im

age with b

oth con

sumers and

custom

ers and

reflects the face of Tyson – families. Tyson em

braces traditional

values but is in touch with day-to-day realities, creates t ru s t

and admiration and m

akes our customers and consum

ers

feel confident in their choices.

TY

SO

N IS

QU

ALIT

Y C

HIC

KE

N Y

OU

CA

N T

RU

ST.

Taking our place.Tyson is the first nam

e in chicken.

13

discoveringnew

opportunities

International Objectives/Strategies

NE

W M

AR

KE

TS

Selling fresh chicken in a market increases brand aw

areness

for value-added frozen products. To build a stronger national

brand

presence, Tyson

plan

s to exp

and

fresh chicken

sales

into the western U

nited States. Internationally, w

e will fu

rther

establish Tyson

as the dom

inant global brand. In

addition

to

exporting chicken, we w

ill seek opportunities to grow around

the world through acquisitions, joint ventures and technical

service agreements.

David Toothaker, product m

anager of thenew

refrigerated, ready-to-eat produ

cts.

NE

W T

RE

ND

S

Tyson is on the leading ed

ge of prod

uct innovation. O

ur research

and development is targeted at new

consumption trends such

as diets higher in protein and the consumer’s need for conven-

ience. This year we launched ready-to-eat refrigerated products,

including grilled chicken breast fillets for sandwiches and grilled

breast strips for salads. Our new

dried chicken snack is low in

fat and carbohydrates, is sh

elf-stable and read

y to eat on the

go. In the freezer is Chicken 2G

o, breaded chicken chunks in a

convenient sn

ack pack. The new Extrem

e Chicken lin

e capitalizes

on consumers’ preferences for new

, bold flavors. Chik R

ibs are

hearty portions of bone-in th

igh m

eat trimm

ed to look like r i b s .

These new products offer consum

ers different ways to eat chicken

and can fit into the foodservice, retail and club store segments .

NE

W ID

EA

S

This year Tyson established strategic initiatives for finding w

ays

to improve perform

ance and profits. One initiative is to iden

tify

best practices for everything from deboning thighs to b r e a d i n g

fillets and implem

enting those practices companyw

ide. Another

initiative is iden

tifying and

elimin

ating in

efficiencies in

the

supply chain and purchasing procedures. Research and devel-

opm

ent team

s are workin

g on yet an

other in

itiative to fin

d

profitable uses for non-prime chicken parts.

Judy Perry, Quality A

ssurance microbiologist

15

Sharon Blanchard helps fix up a

youth center during the United W

ayD

ay of Caring.

Adrienne Phillips teaches nutrition

and safe food han

dling p

racticesin

Sh

are Ou

r Stren

gth

Op

eration

Frontline classes.

Tyson team m

embers feel that giving

to their comm

unities is important

and w

orthwhile.

Jonathan M

artingives kids hands-on learning expe-r ien

ces by

showin

g them

how

chicks h a t c h .

First priority.Leaders have a responsibility to others.

John Tyson’s father and grandfather set the exam

ple decades

ago – when you give to your com

munity, you get far m

ore

in return. Today, John continues that tradition w

ith Tyson

philanthropic efforts targeted in three key areas – hunger

relief, children and comm

unities.

HU

NG

ER

RE

LIEF

This year w

e stepped up our eff o rts in the fight against hunger

by establishing a partnership with Share O

ur Strength( S O

S ) ,

one of the nation’s leading anti-hunger org a n i z ations. Over

the next three years, our contributions to SOS w

ill total

more than $10 m

illion, including 6.5 million pounds of

food that

will provide

32.5 million m

eals; Tyson team

m e m

ber local volunteer programs; national sponsorship of

Operation Frontline, SO

S’s nutrition education initiative, as

well as advertising and m

arketing support. Together, w

e will

make a difference by feeding and educating people affected

by hunger.

C H

I L D R

E N

We believe that investing in the future – children – is tim

e

and money w

ell spent. Through our Project A

+ program,

we’re providing funding for schools in need. O

ur mem

ber-

ship in the Family Friendly Program

ming Forum

ensures

that children will be off e red appropriate television program

s.

The H

ospitality Business Alliance encourages school-to-career

p rograms in the foodservice industry. O

ur school lunch

p rogram provides a balanced, nutritious lunch to kids w

h o

need it most. Scholarships th

rough the A

merica’s Junior

Miss Pageant help talented girls reach their goals. T

hese are

just a few w

ays Tyson is helping children, and there are

thousands more exam

ples in our plant comm

unities across

the country.

C O

M M

U N

I T I E S

At T

yson, we live w

here we w

ork and work w

here we live.

That’s w

hy comm

unity outreach is so dear to our team

mem

bers. Our people are involved not only in our national

efforts but also in local causes. For example, in V

ienna, Ga.,

our plant supports Little L

eague. In Wilkesboro, N

.C., our

team m

embers ride m

otorcycles to raise money for the fight

against cancer. In Rogers, A

rk., we participate in health fairs

to promote physical activity. In G

adsden, Ala., our team

mem

bers paint houses for those less fortunate. At T

yson, we

take great pride in our people – not only for their work but

also for their hearts.

We w

ill continue to build on the tradition of giving

established by the Tyson fam

ily and team m

embers. W

hether

it’s hunger, children or comm

unities, we rem

ain comm

itted

to making a difference.

17

The first and last word is ...

FIN

AN

CIA

L RE

VIE

W

20M

anagement’s D

iscussion and Analysis

29C

onsolidated Statements of Incom

e

30C

onsolidated Balance Sheets

31C

onsolidated Statements of Shareholders’ Equity

32C

onsolidated Statements of C

ash Flows

33N

otes to Consolidated Financial Statem

ents

46R

eport of Managem

ent

47R

eport of Independent Auditors

48Eleven-Year Financial Sum

mary

49B

oard of Directors

50C

orporate and Executive Officers

51C

orporate Information

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

RE

SU

LTS

OF

OP

ER

AT

ION

S E

arnings for fiscal 2000 were

$151m

illion or $0.67per share com

pared to $230 million

or $1.00 per share in fiscal1999. E

arnings in fiscal 2000

were adversely affected by an oversupply of chicken and a

$33 million charge on non-recurring item

s including a bad

debt writeoff related to A

meriServe and grow

out issues at

Tyson de Mexico. T

he Com

pany’s accounting cycle resulted

in a 52-week year for both 2000 and

1999 compared to a

53-week year for

1998.

20

00

vs.19

99

Salesfor 2000 decreased 2.8%

from sales for

1999. This

decrease is primarily due to the sale of the seafood business

on July17,

1999, and other divested non-core businesses.

Com

parable sales increased 0.6% on a volum

e increase of

0.3% com

pared to1999. A

dditionally, the operating results

for 2000 were negatively affected by a w

eak domestic m

arket

for chicken and reduced volume by the C

ompany’s M

exican

subsidiary. In response to the oversupply of chicken, the

Com

pany maintained throughout fiscal 2000 a 3%

cut in

the number of chickens produced. M

anagement anticipates

this oversupply of chicken to continue into fiscal 2001.

The C

ompany presently identifies segm

ents based on the

products offered and the nature of customers, resulting in

four reported business segments: Food Service, C

onsumer

Products, International and Swine. T

he Com

pany’s seafood

business, which w

as sold on July17,1999, is listed as a busi-

ness segment for fiscal1999 and

1998.

The follow

ing is an analysis of sales by segment:

dollars in millions

20001999

Change

Food Service$3,312

$3,354$

(42)

Consum

er Products2,250

2,252(2)

International657

64512

Swine

157110

47

Seafood–

189(189)

Other

782813

(31)

Total$7,158

$7,363$(205)

Segment

profit, defined

as gross

profit less

selling

expenses, by segment is as follow

s:

dollars in millions

20001999

Change

Food Service$197

$311$(114)

Consum

er Products145

241(96)

International50

68(18)

Swine

19(63)

82

Seafood–

22(22)

Other

140155

(15)

Total$551

$734$(183)

Food Service

sales decreased

$42 m

illion or

1.3%

compared to

1999, with a

1.4% decrease in average sales

prices partially offset by a 0.2% increase in volum

e. Segment

profit for Food Service decreased $114 million or 36.7%

from1999 prim

arily due to lower m

arket prices, product

mix changes

and higher grain costs. Food Service includes

fresh, frozen and value-added chicken products sold through

domestic foodservice, specialty and com

modity distributors

who deliver to restaurants, schools and other accounts.

Consum

er Products sales decreased $2 million or 0.1%

compared to

1999, with a 0.6%

decrease in average sales prices

partially offset by a 0.6% increase in volum

e. Segment profit

for Consum

er Products decreased $96 million or 39.7%

from

1999 primarily due to low

er market prices and higher grain

costs, which m

ore than offset the improved product m

ix.

Consum

er Products includes fresh, frozen and value-added

chicken products sold through domestic retail m

arkets for

at-home consum

ption and through wholesale club m

arkets

targeted to small foodservice operators, individuals and

small businesses.

International sales increased $12 million or

1.9% over

1999, with a 4.2%

increase in average sales prices partially

offset by a 2.3% decrease in volum

e. International segment

profit decreased $18 million or 26.5%

from1999 prim

arily

due to losses incurred by the Com

pany’s Mexican subsidiary

resulting from the outbreak of E

xotic New

castle disease

and associated decreases in production. The N

ewcastle

20

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

disease had been eradicated from our facilities by fiscal year

end and production volumes had returned to norm

al levels.

The C

ompany’s International segm

ent markets and sells the

full line of Tyson chicken products throughout the world.

Swine sales increased $47

million or 42.7%

over1999,

with a 56.5%

increase in average sales prices partially offset

by an 8.3% decrease in volum

e. Swine segm

ent profit improved

$82 million or130.2%

over1999prim

arily due to the increase

in average sales prices. The C

ompany’s Sw

ine segment includes

feeder pig finishing and marketing of sw

ine to regional and

national packers.

Other sales decreased $31 m

illion or 3.8% from

1999 pri-

marily due to non-core businesses sold during fiscal1999. O

ther

segment profit decreased $15 m

illion or 9.7% from

1999. The

majority of revenue included in the O

ther segment is derived

from the C

ompany’s Specialty Products and Prepared Foods

groups and the Com

pany’s wholly ow

ned subsidiary involved

in supplying chicken breeding stock.

Cost of sales for 2000 decreased 0.2%

as compared to

1999.

This decrease is prim

arily the result of decreased sales. As a

percent of sales, cost of sales was 84.4%

for 2000 compared

to 82.2% for

1999. The increase in cost of sales as a percent

of sales was due to the w

eak domestic m

arket for chicken, the

reduction in volume associated w

ith the Com

pany’s ongoing

production cut, losses incurred by the Com

pany’s Mexican

subsidiary and higher grain costs.

Operating expenses for 2000 decreased 6.8%

from1999,

primarily due to im

pairment and other charges of $7

7m

illion

recorded in1999 partially offset by a $21

million increase in

current year expenses, primarily general and adm

inistrative.

As a percent of sales, selling expense increased to 7.9%

in 2000

compared to 7.8%

in1999, prim

arily due to the decrease in

sales. Selling expense decreased $12 million in 2000 com

pared

to1999 due to a decrease in sales prom

otion expenses. General

and administrative expense, as a percent of sales, w

as 2.4% in

2000 compared to

1.8% in

1999. The increase in general and

administrative expense is prim

arily due to a $24 million bad

debt writeoff related to the January 31, 2000, bankruptcy filing

by Am

eriServe Food Distribution, Inc. and other increases

related to ongoing litigation costs. Am

ortization expense, as

a percent of sales, was 0.5%

in both 2000 and1999.

Interest expense in 2000 decreased 7.3% com

pared to1999.

As a percent of sales, interest expense w

as1.6%

in 2000

compared to

1.7% in

1999. The C

ompany had a low

er level

of borrowing in 2000, w

hich decreased the Com

pany’s aver-

age indebtedness by14.8%

over the same period last year.

The C

ompany’s short-term

interest rates were slightly higher

than the same period last year, and the net average effective

interest rate on total debt was 6.9%

for 2000 compared to

6.2% for

1999.

The effective tax rate for 2000 increased to 35.6% com

pared

to 34.9% for

1999 primarily due to an increase in foreign

subsidiary earnings effective tax rate.

Return on invested capital (R

OIC

), defined as earnings before

interest and taxes divided by average total assets less current

liabilities excluding current debt, was 8.2%

for 2000 com-

pared to10.9%

for1999.

21

’00

’99

’98

7.9%

7.8%

8.0%**

1.8%

1.8%

2.0%*

EXP

ENSES A

S A P

ERC

ENT O

F SALES

general & adm

inistrativeselling

*Excludes $24 million bad debt w

riteoff

**Excludes $48 million im

pairment loss

’00

’99

’984.9%

12.6%10.9%

8.7%9.9%

8.2%

RETU

RN

ON

INV

ESTED C

AP

ITAL

RO

ICR

OIC

excluding bad debt charge of $24 million

in 2000 and impairm

ent and other charges

of $77m

illion in1999 and $211

million in

1998

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

AC

QU

ISIT

ION

SO

n January

9,1998,

the C

ompany

completed the acquisition of H

udson Foods, Inc. (Hudson or

Hudson A

cquisition). At the effective tim

e of the acquisition,

the Class A

and Class B

shareholders of Hudson received

approximately

18.4 million shares of the C

ompany’s C

lass A

comm

on stock valued at approximately $364 m

illion and

approximately $257 m

illion in cash. The C

ompany borrow

ed

funds under its comm

ercial paper program to finance the cash

portion of the Hudson A

cquisition and to repay approxi-

mately $61

million under H

udson’s revolving credit facilities.

The H

udson Acquisition w

as accounted for as a purchase and

the excess of investment over net assets acquired is being

amortized

straight-line over

40 years.

The

Com

pany’s

consolidated results of operations include the operations of

Hudson since the acquisition date.

DIS

PO

SIT

ION

SO

n July17,1999, the C

ompany com

pleted

the sale of the assets of Tyson Seafood Group in tw

o

separate transactions. Under the term

s of the agreements,

the C

ompany

received net

proceeds of

approximately

$165 million, w

hich was used to reduce indebtedness, and

subsequently collected receivables totaling approximately

$16 million. T

he Com

pany recognized a pretax loss of

approximately $19 m

illion on the sale of the seafood assets.

Effective D

ecember 31,1998, the C

ompany sold W

illow

Brook Foods, its integrated turkey production and process-

ing business, and its Albert L

ea, Minn., processing facility

which prim

arily produced sausages, lunch and deli meats.

In addition, on Decem

ber 31,1998, the Com

pany sold its

National E

gg Products Com

pany operations in Social Circle,

Ga. T

hese facilities were sold for am

ounts that approxi-

mated their carrying values. T

hese operations were acquired

as part of the Hudson A

cquisition.

IMP

AIR

ME

NT

A

ND

O

TH

ER

C

HA

RG

ES

In

the fourth

quarter of fiscal1999, the Com

pany recorded a pretax charge

totaling $35 million related to the anticipated loss on the sale

and closure of the Pork Group assets. In the first quarter of

fiscal 2000, the Com

pany ceased negotiations for the sale

of the Pork Group. A

dditionally, in the fourth quarter of

fiscal1999, the Com

pany recorded pretax charges totaling

$23 million for im

pairment of property and equipm

ent and

write-dow

n of related excess of investments over net assets

acquired of Mallard’s Food Products.

In the fourth quarter of fiscal1998, as a result of the

Com

pany’s restructuring

plan, pretax

charges totaling

$215 million w

ere recorded. These charges w

ere classified in

the Consolidated Statem

ents of Income as $142 m

illion asset

impairm

ent and other charges, $48 million in selling expenses,

$21m

illion in cost of sales and $4 million in other expense.

199

9 vs.

199

8

Salesfor

1999 decreased 0.7% from

sales for1998. T

he

operating results for1999 w

ere affected negatively by the

excess supply of chicken and other meats during the last six

months of the fiscal year, partially offset by the volum

e

gained from the H

udson Acquisition and the inclusion of

Tyson de Mexico on a consolidated basis.

22

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

The follow

ing is an analysis of sales by segment:

dollars in millions

19991998

Change

Food Service$3,354

$3,329$

25

Consum

er Products2,252

2,074178

International645

59253

Swine

110161

(51)

Seafood189

214(25)

Other

8131,044

(231)

Total$7,363

$7,414$

(51)

Segment

profit, defined

as gross

profit less

selling

expenses, is as follows:

dollars in millions

19991998

Change

Food Service$311

$232$

79

Consum

er Products241

17962

International68

959

Swine

(63)(21)

(42)

Seafood22

319

Other

155110

45

Total$734

$512$222

Food Service sales for1999 increased $25 million or 0.8%

compared to

1998, with a 2.6%

increase in volume prim

arily

offset by a1.8%

decrease in average sales prices. Segment

profit for Food Service increased $79 million over1998 prim

ar-

ily due to lower grain prices and a change in product m

ix.

Consum

er Products sales for1999 increased $178 million

or 8.6% com

pared to1998. T

his increase was prim

arily due

to a10.5%

increase in volume partially offset by a

1.8%

decrease in average sales prices. Consum

er Products segment

profit increased $62 million resulting from

the increase in

volume and low

er grain costs.

International sales for1999 increased $53 m

illion or 9%

compared to

1998. This increase is prim

arily the result of a

29.6% increase in volum

e partially offset by a15.9%

decrease

in average sales prices. Segment profit for International increased

$59 million. T

he increase in volume and segm

ent profit for

the International segment is prim

arily due to the consolidation

of Tyson de Mexico.

Swine sales for

1999 decreased $51m

illion or 31.7%

compared to

1998. Swine segm

ent loss increased $42 million.

The sw

ine business experienced a significant decrease in mar-

ket prices during1999 com

pared to1998, resulting in a Sw

ine

group net loss of $0.18 per share for1999.

Seafood sales for1999 decreased $25 m

illion or11.7%

compared to

1998. This decrease w

as primarily due to the

sale of the seafood business at the beginning of the fourth

quarter of1999. Segm

ent profit for Seafood increased

$19 million.

Other sales for

1999 decreased $231m

illion or 22.1%

compared to

1998, primarily due to the sale of non-core

businesses at the end of the first quarter of 1999. Other

segment profit increased $45 m

illion.

Cost of sales for

1999 decreased 3.3% com

pared to1998.

This decrease w

as primarily the result of decreased sales and

lower grain costs. A

s a percent of sales, cost of sales was

82.2% for

1999 compared to 84.4%

for1998 prim

arily due

to lower grain costs.

Operating expenses for

1999 decreased13.5%

from1998,

primarily due to im

pairment and other charges of $7

7m

illion

in1999 com

pared to $142 million in

1998. As a percent of

sales, selling expense decreased to 7.8% in

1999 compared to

8.7% in

1998, primarily due to the $48 m

illion charge in1998

for losses in the Com

pany’s export business to Russia. G

eneral

and administrative expense, as a percent of sales, w

as1.8% in

both1999 and

1998. Am

ortization expense, as a percent of

sales, was 0.5%

in1999 com

pared to 0.4% in

1998.

23

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

Interest expense in1999 decreased

10.9% com

pared to1998.

As a percent of sales, interest expense w

as1.7%

in1999

compared to

1.9% in

1998. The C

ompany had a low

er level

of borrowing in

1999, which decreased the C

ompany’s aver-

age indebtedness by 6.4% from

1998. The C

ompany’s short-

term interest rates w

ere slightly lower than in

1998, and the

net average effective interest rate on total debt was 6.2%

for

1999 compared to 6.6%

for1998.

The effective tax rate for1999 was 34.9%

compared to 64.7%

for1998. T

he1998 effective tax rate w

as affected by certain

costs related to asset impairm

ent and foreign losses not

deductible for tax purposes.

Return on invested capital for

1999 was

10.9% com

pared to

4.9% for

1998.

LIQ

UID

ITY

AN

D C

AP

ITA

L R

ES

OU

RC

ES

Cash provided

by operations continues to be the Com

pany’s primary source

of funds to finance operating needs and capital expenditures.

In 2000, net cash of $587m

illion was provided by oper-

ating activities, an increase of $40 million from

1999. The

Com

pany’s foreseeable cash needs for operations and capital

expenditures will continue to be m

et primarily through cash

flows from

operations. At Septem

ber 30, 2000, the Com

pany

had construction projects in progress that will require approx-

imately $121

million to com

plete.

Total debt at September 30, 2000, w

as $1.5 billion, a

decrease of $262 million from

October 2,1999. T

he Com

pany

has an unsecured revolving credit agreement totaling $1

bil-

lion that supports the Com

pany’s comm

ercial paper program.

This $1

billion facility expires in May 2002. A

t September 30,

2000, $260 million in com

mercial paper w

as outstanding

under this $1billion facility. A

dditional outstanding debt at

September 30, 2000, consisted of $880 m

illion of public debt,

$112 million of institutional notes, $155 m

illion of leveraged

equipment loans, $62 m

illion of notes payable and $73 million

of other indebtedness.

The revolving credit agreem

ent and notes contain various

covenants, the more restrictive of w

hich require maintenance

of a minim

um net w

orth, current ratio, cash flow coverage

of interest and a maxim

um total debt-to-capitalization

ratio. The C

ompany is in com

pliance with these covenants

at fiscal year end.

Shareholders’ equity increased 2.2% during 2000 and has

grown at a com

pounded annual rate of 8.2% over the past

five years.

24

’00

’99

’98

547

496

587

CA

SH P

RO

VID

ED B

Y O

PER

ATING

AC

TIVITIES

dollars in millions

’00

’99

’98

2.2

2.1

2.02.1

1.8

1.5

TOTA

L CA

PITA

LIZATIO

Ndollars in billions

debtequity

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

IMP

AC

T O

F Y

EA

R 2

00

0 T

he Com

pany has completed its

Year 2000 Project as scheduled. T

he Com

pany’s products,

computing

and com

munications

infrastructure system

s

have operated without Y

ear 2000 related problems. T

he

Com

pany is not aware that any of its m

ajor customers or

third-party suppliers has experienced significant Year 2000

related problems.

The C

ompany believes all its critical system

s areY

ear 2000

ready; however, there is no guarantee that the C

ompany has

discovered all possible failure points including all systems,

non-ready third parties whose system

s and operations affect

the Com

pany and other uncertainties.

As of Septem

ber 30, 2000, theY

ear 2000 Project was

considered complete and no further actions w

ere required.

MA

RK

ET

RIS

K M

arket risks relating to the Com

pany’s

operations result primarily from

changes in comm

odity

prices, interest rates and foreign exchange rates as well as

credit risk concentrations. To address certain of these risks

the Com

pany enters into various hedging transactions as

described below. Financial instrum

ents that do not qualify

for hedge accounting are marked to fair value and the gains

or losses are recognized currently in earnings.

Com

modities R

isk The C

ompany is a purchaser of certain

comm

odities, primarily corn and soybeans. T

he Com

pany

periodically uses comm

odity futures and options for hedging

purposes to reduce the effect of changing comm

odity prices

and as a mechanism

to procure these grains. Generally,

contract terms of a hedge instrum

ent closely mirror those of

the hedged item providing a high degree of risk reduction and

correlation. Contracts that effectively m

eet this risk reduction

and correlation criteria are recorded using hedge accounting.

Gains and losses on closed hedge transactions are recorded as

a component of the underlying inventory purchase.

The

following

table provides

information

about the

Com

pany’s corn, soybean and other feed ingredient inventory

and financial instruments that are sensitive to changes in

comm

odity prices. The table presents the carrying am

ounts

and fair values at September 30, 2000, and O

ctober 2,1999.

Additionally, for puts and futures contracts, the latest of

which expires or m

atures eight months from

the reporting

date, the table presents the notional amounts in units of

purchase and the weighted average contract prices.

volume and dollars in m

illions, except per unit amounts

Weighted

average strikeVolum

eprice per unit

Fair value

20001999

20001999

20001999

Recorded B

alance Sheet Com

modity Position:

Com

modity inventory (book value of $33 and $34)

––

––

$33$34

Hedging Positions

Corn futures contracts (volum

e in bushels)

Long (buy) positions17

84$2.50

$2.21(9)

(8)

Short (sell) positions–

1–

2.32–

–

Soybean oil futures contracts (volume in cw

t)

Long (buy) positions9

–0.16

––

–

Short (sell) positions6

–0.16

––

–

Trading Positions

Corn puts

–28

–2.10

–(3)

25

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

Interest Rate and Foreign C

urrency Risks T

he Com

pany hedges

exposure to changes in interest rates on certain of its finan-

cial instruments. U

nder the terms of various leveraged equip-

ment loans, the C

ompany enters into interest rate sw

ap

agreements to effectively lock in a fixed interest rate for

these borrowings. T

he maturity dates of these leveraged

equipment loans range from

2005 to 2008 with interest

rates ranging from 4.7%

to 6%.

The C

ompany also periodically enters into foreign exchange

forward contracts and option contracts to hedge som

e of its

foreign currency exposure. At Septem

ber 30, 2000, the

Com

pany did not have any outstanding instruments or trans-

actions that are sensitive to foreign currency exchange rates.

In1999, the C

ompany used such contracts to hedge exposure

to changes in foreign currency exchange rates, primarily the

Mexican peso, associated w

ith debt denominated in U

.S.

dollars held by Tyson de Mexico. A

t October 2,1999, the

notional amount of these forw

ard exchange contracts to sell

Mexican pesos for U

.S. dollars was $7

million due in 2000,

with a w

eighted average strike price of $10.13 and a negative

fair value of $1m

illion. Gains and losses on these contracts

are recognized as an adjustment of the subsequent transaction

when it occurs. Forw

ard and option contracts generally have

maturities or expirations not exceeding

12 months.

The

following

tables provide

information

about the

Com

pany’s derivative financial instruments and other finan-

cial instruments that are sensitive to changes in interest rates.

The tables present the C

ompany’s debt obligations, principal

cash flows and related w

eighted average interest rates by

expected maturity dates and fair values. For interest rate

swaps, the tables present notional am

ounts, weighted average

interest rates or strike rates by contractual maturity dates and

fair values. Notional am

ounts are used to calculate the

contractual cash flows to be exchanged under the contract.

dollars in millions

Fair value2001

20022003

20042005

ThereafterTotal

9/30/00

As of Septem

ber 30, 2000

Liabilities

Long-term debt, including current portion

Fixed rate$123

$31

$178$29

$180$613

$1,154$1,104

Average interest rate

8.23%7.84%

6.18%7.09%

6.80%6.78%

6.88%

Variable rate–

$276–

––

$50

$326

$326


–6.78%

––

–5.64%

6.61%

Interest rate derivative financial instrum

ents related to debt

Interest rate swaps

Pay fixed$

18$

20$

22$21

$16

$13

$110

–

Average pay rate

6.72%6.73%

6.73%6.71%

6.44%6.60%

6.66%

Average receive rate

–U

SD 6 m

onth LIBO

R

26

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

Concentrations

of C

redit R

isk T

he C

ompany’s

financial

instruments that are exposed to concentrations of credit risk

consist primarily of cash equivalents and trade receivables.

The C

ompany’s cash equivalents are in high quality securi-

ties placed with m

ajor banks and financial institutions.

Concentrations of credit risk w

ith respect to receivables are

limited due to the large num

ber of customers and their

dispersion across geographic areas. The C

ompany perform

s

periodic credit

evaluations of

its custom

ers’ financial

condition and generally does not require collateral. No single

group or customer represents greater than

10% of total

accounts receivable.

RE

CE

NT

LY

ISS

UE

D

AC

CO

UN

TIN

G

STA

ND

AR

DS

O

n

October1, 2000, the C

ompany adopted Financial A

ccounting

Standards Board Statem

ent (SFAS) N

o.133, “Accounting for

Derivative Instrum

ents and Hedging A

ctivities,” as amended by

SFAS N

os.137and

138. This statem

ent establishes accounting

and reporting standards, which requires that all derivative

instruments be recorded on the balance sheet at fair value. T

his

statement also establishes “special accounting” for fair value

hedges, cash flow hedges and hedges of foreign currency expo-

sures of net investments in foreign operations. T

he Com

pany

has determined the business processes related to hedging activ-

ities mainly consist of grain procurem

ent and certain financing

activities. The adoption on O

ctober1, 2000, resulted in the

cumulative effect of an accounting change of approxim

ately

$9 million being charged to other com

prehensive loss.

In D

ecember

1999, the

Securities and

Exchange

Com

mission issued Staff A

ccounting Bulletin (SA

B) N

o.101,

which provides guidance on the recognition, presentation

and disclosure of revenue in financial statements filed w

ith

the Com

mission. SA

B101A

was released on M

arch 24,

2000, and delayed for one fiscal quarter the implem

entation

date of SAB

101for registrants w

ith fiscal years beginning

between D

ecember

16,1999, and March

15, 2000. Since the

issuance of SAB

101and SA

B101A

, the staff has continued

to receive requests from a num

ber of groups asking for addi-

tional time to determ

ine the effect, if any, on registrant’s

revenue recognition practices. SAB

101B issued June 26,

2000, further delayed the implem

entation date of SAB

101

until no later than the fourth fiscal quarter of fiscal years

beginning after Decem

ber15,1999. T

he Com

pany believes

the adoption of SAB

101in fiscal 2001

will not have a m

ate-

rial impact on its financial position or results of operations.

dollars in millions

Fair value2000

20012002

20032004

ThereafterTotal

10/2/99

As of O

ctober 2, 1999

Liabilities

Long-term debt, including current portion

Fixed rate$173

$126$

30$178

$29$794

$1,330$1,299


6.82%8.18%

7.83%6.18%

7.08%6.78%

6.87%

Variable rate$

50$

17$291

––

$50

$408

$408


5.51%7.67%

5.85%–

–3.90%

5.65%

Interest rate derivative financial instrum

ents related to debt

Interest rate swaps

Pay fixed$

17$

18$

20$

22$21

$29

$127

$(1)

Average pay rate

6.71%6.69%

6.73%6.73%

6.71%6.50%

6.66%

Average receive rate

–U

SD 6 m

onth LIBO

R

27

MA

NA

GE

ME

NT

’S D

ISC

US

SIO

N A

ND

AN

ALY

SIS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

SU

BS

EQ

UE

NT

EV

EN

T O

n October 17, 2000, a W

ashington

County

(Arkansas)

Chancery

Court

jury aw

arded the

Com

pany approximately $20 m

illion in its lawsuit against

ConA

gra, Inc. and ConA

gra Poultry Com

pany. In its suit,

the Com

pany alleged that ConA

gra, Inc. and ConA

gra

Poultry Com

pany violated the Arkansas T

rade Secrets Act

when they im

properly obtained and implem

ented Tyson’s

confidential feed nutrient profile. The court ruled that the

Com

pany’s feed nutrient profile is a trade secret under the

Arkansas T

rade Secrets Act and that C

onAgra, Inc. and

ConA

gra Poultry Com

pany misappropriated the feed nutri-

ent profile. The court’s ruling and the aw

ard are subject to

appeal; therefore, the Com

pany has not recorded this award

at September 30, 2000.

CA

UT

ION

AR

Y S

TAT

EM

EN

TS

RE

LE

VA

NT

TO

FO

RW

AR

D-

LO

OK

ING

INF

OR

MA

TIO

N T

his annual report and other

written reports and oral statem

ents made from

time to tim

e

by the Com

pany and its representatives contain forward-

looking statements, including forw

ard-looking statements

made in this report, w

ith respect to their current views and

estimates of future econom

ic circumstances, industry condi-

tions, company perform

ance and financial results. These

forward-looking statem

ents are subject to a number of

factors and uncertainties that could cause the Com

pany’s

actual results and experiences to differ materially from

the

anticipated results

and expectations,

expressed in

such

forward-looking statem

ents. In light of these risks, uncer-

tainties and assumptions, the C

ompany w

ishes to caution

readers not to place undue reliance on any forward-looking

statements. T

he Com

pany undertakes no obligation to

publicly update or revise any forward-looking statem

ents

based on the occurrence of future events, the receipt of new

information or otherw

ise.

Am

ong the factors that may affect the operating results

of the Com

pany are the following: (i) fluctuations in the cost

and availability of raw m

aterials, such as feed grain costs;

(ii) changes in the availability and relative costs of labor and

contract growers; (iii) m

arket conditions for finished prod-

ucts, including

the supply

and pricing

of alternative

proteins; (iv) effectiveness of advertising and marketing

programs; (v) the ability of the C

ompany to m

ake effective

acquisitions and to successfully integrate newly acquired

businesses into existing operations; (vi) risks associated with

leverage, including cost increases due to rising interest rates;

(vii) risks associated with effectively evaluating derivatives

and hedging activities; (viii) changes in regulations and laws,

including changes in accounting standards, environmental

laws, occupational, health and safety law

s; (ix) adverse

results from

ongoing

litigation; (x)

access to

foreign

markets together w

ith foreign economic conditions, includ-

ing currency fluctuations; and (xi) the effect of, or changes

in, general economic conditions.

28

CO

NS

OLID

AT

ED

STA

TE

ME

NT

S O

F IN

CO

ME

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT


Three years ended September 30, 2000

20001999

1998

Sales$7,158

$7,363$7,414

Cost of Sales

6,0446,054

6,260

1,1141,309

1,154

Operating Expenses:

Selling563

575642

General and adm

inistrative169

134133

Am

ortization34

3633

Asset im


–77

142

766822

950

Operating Incom

e348

487204

Other Expense (Incom

e):

Interest115

124139

Foreign currency exchange–

(3)–

Other

(1)(5)

(6)

114116

133

Income B

efore Taxes on Income and M

inority Interest234

37171

Provision for Income Taxes

83129

46

Minority Interest in N

et Income of C

onsolidated Subsidiary–

12–

Net Incom

e$

151$

230$

25

Basic Earnings Per Share

$0.67

$1.00

$0.11

Diluted Earnings Per Share

$0.67

$1.00

$0.11

see accompanying notes

29

CO

NS

OLID

AT

ED

BA

LAN

CE

SH

EE

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT


September 30, 2000 and O

ctober 2, 19992000

1999

Assets

Current A

ssets:

Cash and cash equivalents

$43

$30

Accounts receivable

520603

Inventories965

989

Assets held for sale

275

Other current assets

4630

Total Current A

ssets1,576

1,727

Net Property, Plant and Equipm

ent2,141

2,185

Excess of Investments O

ver Net A

ssets Acquired

937962

Other A

ssets200

209

Total Assets

$4,854$5,083

Liabilities and Shareholders’ Equity

Current Liabilities:

Notes payable

$62

$66

Current portion of long-term

debt123

223

Trade accounts payable346

390

Accrued com

pensation and benefits104

105

Other current liabilities

251203

Total Current Liabilities

886987

Long-Term D

ebt1,357

1,515

Deferred Incom

e Taxes385

398

Other Liabilities

5155

Shareholders’ Equity:

Com

mon stock ($0.10 par value):

Class A

-authorized 900 million shares:

Issued138 m

illion shares in 2000 and1999

1414

Class B

-authorized 900 million shares:

Issued103 m

illion shares in 2000 and1999

1010

Capital in excess of par value

735740

Retained earnings

1,7151,599

Accum

ulated other comprehensive loss

(5)(1)

2,4692,362

Less treasury stock, at cost–16 m

illion shares in 2000 and12 m

illion shares in1999

284232

Less unamortized deferred com

pensation10

2

Total Shareholders’ Equity2,175

2,128

Total Liabilities and Shareholders’ Equity$4,854

$5,083


30

CO

NS

OLID

AT

ED

STA

TE

ME

NT

S O

F S

HA

RE

HO

LDE

RS

’ EQ

UIT

YT

YS

ON

FO

OD

S, IN

C. 2

00

0 A

NN

UA

L R

EP

OR

T



Accum

ulatedC

omm

on StockC

apitalU

namortized

Other

TotalC

lass AC

lass Bin Excess of

Retained

Treasury StockD

eferredC

omprehensive

Shareholders’Shares

Am

ountShares

Am

ountPar Value

EarningsShares

Am

ountC

ompensation

Income (Loss)

Equity

Balance

–Septem

ber 27,1997120

$12103

$10$379

$1,3919

$(166)$

(2)$(3)

$1,621

Com

prehensive Income:

Net incom

e25

25

Other com

prehensive incom

e (loss)–net

of tax of $0.7m

illion

Currency translation adjustm

ent2

2

Total Com

prehensive Income

27

Purchase of Treasury Shares1

(22)(22)

Exercise of Options

33

Business A

cquisitions18

2362

364

Dividends Paid

(22)(22)

Balance

–O

ctober 3, 1998138

14103

10741

1,39410

(185)(2)

(1)1,971

Com

prehensive Income:

Net incom

e230

230

Other com

prehensive incom

e (loss)–

–

Total Com

prehensive Income

230


(52)(52)

Exercise of Options

(1)(1)

65

Restricted Shares C

ancelled(1)

(1)

Dividends Paid

(25)(25)

Balance

–O

ctober 2, 1999138

14103

10740

1,59912

(232)(2)

(1)2,128

Com

prehensive Income:

Net incom

e151

151

Other com

prehensive incom

e (loss)–net

of tax of $(1.3) million

Currency translation adjustm

ent(4)

(4)

Total Com

prehensive Income

147


(69)(69)

Exercise of Options

11

Restricted Shares Issued

(5)(1)

16(11)

–

Dividends Paid

(35)(35)

Am

ortization of Deferred

Com

pensation3

3

Balance

–Septem

ber 30, 2000138

$14103

$10$735

$1,71516

$(284)$(10)

$(5)$2,175


31

CO

NS

OLID

AT

ED

STA

TE

ME

NT

S O

F C

AS

H F

LOW

ST

YS

ON

FO

OD

S, IN

C. 2

00

0 A

NN

UA

L R

EP

OR

T

in millions


20001999

1998

Cash Flow

s From O

perating Activities:

Net incom

e$

151$

230$

25

Adjustm

ents to reconcile net income to

cash provided by operating activities:

Depreciation

257255

243

Am

ortization34

3633

Am

ortization of deferred compensation

3–

–

Provision for doubtful accounts25

162

Asset im


–77

215

Deferred incom

e taxes47

(13)(145)

Minority interest

–12

–

Foreign currency exchange loss–

(3)–

Loss (gain) on dispositions of property, plant and equipment

4(1)

(2)

Decrease in accounts receivable

579

31

Decrease (increase) in inventories

84(99)

80

(Decrease) increase in trade accounts payable

(46)21

(7)

Net change in other current assets and liabilities

(29)7

21

Cash Provided by O

perating Activities

587547

496

Cash Flow

s From Investing A

ctivities:

Net cash paid for acquisitions

––

(259)

Additions to property, plant and equipm

ent(196)

(363)(310)

Proceeds from sale of assets

4234

136

Net change in other assets and liabilities

(14)(37)

(13)

Cash U

sed for Investing Activities

(206)(166)

(446)

Cash Flow

s From Financing A

ctivities:

Decrease in notes payable

(4)(19)

(74)

Proceeds from long-term

debt7

761,027

Repaym

ents of long-term debt

(266)(382)

(955)

Purchase of treasury shares(69)

(52)(22)

Other

(34)(18)

(3)

Cash U

sed for Financing Activities

(366)(395)

(27)

Effect of Exchange Rate C

hange on Cash

(2)(2)

–

Increase (Decrease) in C

ash and Cash Equivalents

13(16)

23

Cash and C

ash Equivalents at Beginning of Year

3046

23

Cash and C

ash Equivalents at End of Year$

43$

30$

46


32

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

NO

TE

1: B

US

INE

SS

AN

D S

UM

MA

RY

OF

SIG

NIF

ICA

NT

AC

CO

UN

TIN

G P

OL

ICIE

S

Description of B

usiness: Tyson Foods, Inc., headquartered in

Springdale, Ark., is the w

orld’s largest fully integrated producer,

processor and marketer of chicken and chicken-based conve-

niencefoods, w

ith 68,000 team m

embers and 7,400 contract

growers in

100 comm

unities. Tyson has operations in18 states

and15 countries and exports to 73 countries w

orldwide.

Tyson is the recognized market leader in alm

ost every retail

and foodservice market it serves. T

hrough its Cobb-V

antress

subsidiary, Tyson is also a leading chicken breeding stock

supplier. In addition, Tyson is the nation’s second largest

maker of corn and flour tortillas under the M

exican Original

brand, as well as a leading provider of live sw

ine.

Consolidation: T

he consolidated financial statements include

the accounts

of subsidiaries

including the

Com

pany’s

majority ow

nership in Tyson de Mexico. A

ll significant inter-

company accounts and transactions have been elim

inated in

consolidation.

Fiscal Year: The C

ompany utilizes a 52- or 53-w

eek accounting

period that ends on the Saturday closest to September 30.

Reclassifications:C

ertain reclassifications have been made to

prior periods to conform to current presentations.

Cash and C

ash Equivalents: Cash equivalents consist of invest-

ments in short-term

, highly liquid securities having original

maturities of three m

onths or less, which are m

ade as part of

the Com

pany’s cash managem

ent activity. The carrying values

of these assets approximate their fair m

arket values. As a

result of the Com

pany’s cash managem

ent system, checks

issued, but not presented to the banks for payment, m

ay

create negative cash balances. Checks outstanding in excess of

related cash balances totaling approximately $126 m

illion at

September 30, 2000, and $135 m

illion at October 2,1999, are

included in trade accounts payable, accrued compensation

and benefits and other current liabilities.

Inventories:Live chicken consists of broilers and breeders.

Broilers are stated at the low

er of cost (first-in, first-out) or

market and breeders are stated at cost less am

ortization.

Breeder costs are accum

ulated up to the production stage

and amortized into broiler costs over the estim

ated produc-

tion lives based on historical egg production. Live sw

ine

consist of breeding stock and finishing, which are carried at

lower of cost (first-in, first-out) or m

arket. The cost of live

swine is included in cost of sales w

hen the swine are sold.

Additionally, dressed and further-processed products, hatch-

ery eggs and feed and supplies are valued at the lower of cost

(first-in, first-out) or market. A

t September 30, 2000, live

swine inventory has been reclassified to inventory from

assets held for sale.

in millions

20001999

Dressed and further-processed products

$460$549

Live chickens291

291

Live swine

75–

Hatchery eggs and feed

6767

Supplies72

82

Total inventory$965

$989

Depreciation:

Depreciation

is provided

primarily

by the

straight-line method using estim

ated lives for buildings and

leasehold improvem

ents of 10 to 39 years, machinery and

equipment of three to

12 years and other of three to 20 years.

Excess of Investments O

ver Net A

ssets Acquired: C

osts in excess

of net assets of businesses purchased are amortized on a

straight-line basis over periods ranging from15 to 40 years.

The C

ompany review

s the carrying value of excess of

investments over net assets acquired at each balance sheet

date to assess recoverability from future operations using

undiscounted cash flows based upon historical results and

current projections of earnings before interest and taxes.

33

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

If impairm

ent is indicated by using undiscounted cash flows,

the Com

pany measures im

pairment using discounted cash

flows of future operating results based upon a rate that

corresponds to the Com

pany’s cost of capital. Impairm

ents

are recognized in operating results to the extent that carry-

ing value exceeds fair value. At Septem

ber 30, 2000, and

October 2,

1999, the accumulated am

ortization of excess

of investments over net assets acquired w

as $256 million

and $225 million, respectively.

Other C

urrent Liabilities: Insurance reserves totaling $102 mil-

lion and $95 million at Septem

ber 30, 2000, and October 2,

1999, respectively, are included in other current liabilities.

Capital Stock: H

olders of Class B

comm

on stock (Class B

stock) may convert such stock into C

lass A com

mon stock

(Class

A

stock) on

a share-for-share

basis. H

olders of

Class B

stock are entitled to10 votes per share w

hile holders

of Class A

stock are entitled to one vote per share on matters

submitted to shareholders for approval. C

ash dividends

cannot be paid to holders of Class B

stock unless they are

simultaneously paid to holders of C

lass A stock. T

he per

share amount of the cash dividend paid to holders of C

lass B

stock cannot exceed 90% of the cash dividend sim

ultaneously

paid to holders of Class A

stock. The C

ompany pays quar-

terly cash dividends to Class A

and Class B

shareholders.

The C

ompany paid C

lass A dividends per share of $0.16,

$0.115 and $0.10 and Class B

dividends per share of $0.144,

$0.104 and $0.09 in 2000,1999 and1998, respectively.

Stock-Based Com

pensation: Stock-based compensation is recog-

nized using

the intrinsic

value m

ethod. For

disclosure

purposes, pro forma net incom

e and earnings per share

impacts

are provided

as if

the fair

value m

ethod had

been applied.

Financial Instruments: Periodically, the C

ompany uses deriva-

tive financial instruments to reduce its exposure to various

market risks. T

he Com

pany does not regularly engage in

speculative transactions, nor does the Com

pany regularly

hold or issue financial instruments for trading purposes.

Generally, contract term

s of a hedge instrument closely

mirror those of the hedged item

providing a high degree of

risk reduction and correlation. Contracts that effectively

meet the risk reduction and correlation criteria are recorded

using hedge accounting. Financial instruments that do not

meet the criteria for hedge accounting are m

arked to fair

value with gains or losses reported currently in earnings.

Interest rate swaps are used to hedge exposure to changes

in interest rates under various leveraged equipment loans.

Settlements of interest rate sw

aps are accounted for as an

adjustment to interest expense. C

omm

odity futures and options

are used to hedge a portion of the Com

pany’s purchases

of certain comm

odities for future processing requirements.

Such contracts are accounted for as hedges, with gains and

losses recognized as part of cost of sales, and generally have

terms of less than

15 months. Foreign currency forw

ards and

option contracts are used to hedge sale and debt transactions

denominated in foreign currencies to reduce the currency risk

associated with fluctuating exchange rates. Such contracts

generally have terms of less than

12 months. U

nrealized gains

and losses are deferred as part of the basis of the underlying

transaction.

Revenue R

ecognition: The C

ompany recognizes sales revenue

upon shipm

ent of

product. C

ertain international

sales

revenue and live swine sales revenue are recognized after

transfer of title or delivery of product, which m

ay occur

after shipment.

Advertising and Prom

otion Expenses: Advertising and prom

otion

expenses are charged to operations in the period incurred.

Advertising and prom

otion expenses for 2000,1999 and

1998 were $280 m

illion, $301m

illion and $294 million,

respectively.

Use of Estim

ates: The consolidated financial statem

ents are

prepared in conformity w

ith accounting principles generally

accepted in the United States w

hich require managem

ent to

make estim

ates and assumptions that affect the am

ounts

reported in the consolidated financial statements and accom

-

panying notes. Actual results could differ from

those estimates.

34

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

Recently Issued A

ccounting Standards: On O

ctober1, 2000,

the C

ompany

adopted Financial

Accounting

Standards

Board Statem

ent (SFAS) N

o.133, “Accounting for D

erivative

Instruments and H

edging Activities,” as am

ended, which

is required to be adopted in years beginning after June15,

2000. This Statem

ent requires the Com

pany to recognize all

derivatives on the balance sheet at fair value. Derivatives that

are not hedges must be adjusted to fair value through incom

e.

If the derivative is a hedge, depending on the nature of the

hedge, changes in the fair value of derivatives will be either

offset against the change in fair value of the hedged assets,

liabilities or firm com

mitm

ents through earnings, or recog-

nized in other comprehensive incom

e until the hedged item is

recognized in earnings. The ineffective portion of a deriva-

tive’s change in fair value will be im

mediately recognized

in earnings.

The adoption on O

ctober1, 2000, resulted in the

cumulative effect of an accounting change of approxim

ately

$9 million being charged to other com

prehensive loss. The

Com

pany does not believe the adoption of SFAS N

o.133

will cause a significant change in norm

al business practices.

In D

ecember

1999, the

Securities and

Exchange

Com

mission issued Staff A

ccounting Bulletin (SA

B) N

o.101,

which provides guidance on the recognition, presentation and

disclosure of revenue in financial statements filed w

ith the

Com

mission. SA

B101A

was released on M

arch 24, 2000,

and delayed for one fiscal quarter the implem

entation date of

SAB

101for registrants w

ith fiscal years beginning between

Decem

ber16,1999, and M

arch15, 2000. Since the issuance

of SAB

101and SA

B101A

, the staff has continued to receive

requests from a num

ber of groups asking for additional time

to determine the effect, if any, on registrant’s revenue recog-

nition practices. SAB

101B issued June 26, 2000, further

delayed the implem

entation date of SAB

101 until no later

than the fourth fiscal quarter of fiscal years beginning after

Decem

ber15,1999. T

he Com

pany believes the adoption of

SAB

101in fiscal 2001

will not have a m

aterial impact on its

financial position or results of operations.

NO

TE

2: A

CQ

UIS

ITIO

NS

On January 9,1998, the C

ompany com

pleted the acquisition

of Hudson Foods, Inc. (H

udson or Hudson A

cquisition). At

the effective time of the acquisition, the C

lass A and C

lass B

shareholders of Hudson received approxim

ately18.4 m

illion

shares of the Com

pany’s Class A

comm

on stock valued at

approximately $364 m

illion and approximately $257

million

in cash. The C

ompany borrow

ed funds under its comm

ercial

paper program to finance the cash portion of the H

udson

Acquisition and repay approxim

ately $61m

illion under

Hudson’s revolving credit facilities. T

he Hudson A

cquisition

has been accounted for as a purchase and the excess of invest-

ment over net assets acquired is being am

ortized straight-line

over 40 years. The C

ompany’s consolidated results of operations

include the operations of Hudson since the acquisition date.

The follow

ing unaudited pro forma inform

ation shows the

results of operations as though the purchase of Hudson had

been made at the beginning of fiscal1997.


19981997

Sales$7,831

$8,021

Net incom

e17

140

Basic earnings per share

0.070.60


$0.07

$0.59

The unaudited pro form

a results are not necessarily

indicative of the actual results of operations that would have

occurred had the purchase actually been made at the begin-

ning of 1997, or the results that may occur in the future.

35

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

NO

TE

3: D

ISP

OS

ITIO

NS

On July

17,1999, the C

ompany com

pleted the sale of the

assets of Tyson Seafood Group in tw

o separate transactions.

Under the term

s of the agreements, the C

ompany received

proceeds of approximately $165 m

illion, which w

as used to

reduce indebtedness, and subsequently collected receivables

totaling approximately $16 m

illion. The C

ompany recognized

a pretax loss of approximately $19 m

illion on the sale of the

seafood assets.

Effective D

ecember 31,1998, the C

ompany sold W

illow

Brook Foods, its integrated turkey production and processing

business, and its Albert L

ea, Minn., processing facility w

hich

primarily produced sausages, lunch and deli m

eats. In addi-

tion, on Decem

ber 31,1998, the Com

pany sold its National

Egg Products C

ompany operations in Social C

ircle, Ga. T

hese

facilities were sold for am

ounts that approximated their

carrying values. These operations w

ere acquired as part of the

Hudson A

cquisition.

NO

TE

4: IM

PA

IRM

EN

T A

ND

OT

HE

R C

HA

RG

ES

In the fourth quarter of fiscal1999, the Com

pany recorded

a pretax charge totaling $35 million related to the antici-

pated loss on the sale and closure of the Pork Group assets.

In the first quarter of fiscal 2000, the Com

pany ceased nego-

tiations for the sale of the Pork Group. A

dditionally, in the

fourth quarter of fiscal1999, the Com

pany recorded pretax

charges totaling $23 million for im

pairment of property and

equipment and w

rite-down of related excess of investm

ents

over net assets acquired of Mallard’s Food Products.

In the fourth quarter of fiscal1998, as a result of

the Com

pany’s restructuring plan, pretax charges totaling

$215 million w

ere recorded. These charges w

ere classified in

the Consolidated Statem

ents of Income as $142 m

illion asset

impairm

ent and other charges, $48 million in selling expenses,

$21m

illion in cost of sales and $4 million in other expense.

NO

TE

5: A

LL

OW

AN

CE

FO

R D

OU

BT

FU

L A

CC

OU

NT

S

On January 31, 2000, A

meriServe Food D

istribution, Inc.

(Am

eriServe), a significant distributor of products to fast food

and casual dining restaurant chains, filed for reorganization

in Delaw

are under Chapter

11of the federal B

ankruptcy

Code.

The

Com

pany is

a m

ajor supplier

to several

Am

eriServe customers. In the second quarter of fiscal 2000,

the Com

pany recorded a $24 million bad debt reserve to fully

reserve the Am

eriServe receivable. At Septem

ber 30, 2000,

and October 2,

1999, allowance for doubtful accounts,

excluding the Am

eriServe writeoff, w

as $17m

illion and

$22 million, respectively.

36

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

NO

TE

6: F

INA

NC

IAL

INS

TR

UM

EN

TS

Com

modity and Foreign C

urrency Contracts: A

t September 30, 2000, and O

ctober 2,1999, the Com

pany held the following

comm

odity and foreign currency contracts:

dollars in millions, except per unit contract/strike prices

Notional

Weighted average

amount

contract/strike priceFair value

Units

20001999

20001999

20001999

Hedging positions

Long positions in cornbushels

1784

$2.50$

2.21$(9)

$(8)

Short positions in cornbushels

–1

–2.32

––

Long positions in soybean oilcw

t9

–0.16

––

–

Short positions in soybean oilcw

t6

–0.16

––

–

Foreign forward exchange contracts

dollars–

$7

–$10.13

–$(1)

Trading positions

Short positions in corn putsbushels

–28

–2.10

–(3)

37

Fair Value of Financial Instruments: T

he Com

pany’s significant

financial instruments include cash and cash equivalents,

investments and debt. In evaluating the fair value of signif-

icant financial instruments, the C

ompany generally uses

quoted market prices of the sam

e or similar instrum

ents or

calculates an estimated fair value on a discounted cash flow

basis using the rates available for instruments w

ith the

same rem

aining maturities. A

s of September 30, 2000,

and October 2,1999, the fair value of financial instrum

ents

held by the Com

pany approximated the recorded value

except for long-term debt. Fair value of long-term

debt

including current portion was $1.4 billion and $1.7

billion at

September 30, 2000, and O

ctober 2,1999, respectively.

Concentrations of Credit R

isk: The C

ompany’s financial instru-

ments that are exposed to concentrations of credit risk

consist primarily of cash equivalents and trade receivables.

The C

ompany’s cash equivalents are in high quality securi-

ties placed with m

ajor banks and financial institutions.

Concentrations of credit risk w

ith respect to receivables are

limited due to the large num

ber of customers and their

dispersion across geographic areas. The C

ompany perform

s

periodic credit evaluations of its customers’ financial condi-

tion and generally does not require collateral. No single

group or customer represents greater than

10% of total

accounts receivable.

Interest Rate Instrum

ents: The C

ompany uses interest rate

swap contracts on certain borrow

ing transactions. Interest

rate swaps w

ith notional amounts of $110 m

illion and

$127m

illion were in effect at Septem

ber 30, 2000, and

October 2,

1999, respectively. Fair values of these swaps

were $500,000 and a negative $1 m

illion at September 30,

2000,and October 2,1999, respectively. Fair values of inter-

est rate instruments are estim

ated amounts the C

ompany

would receive or pay to term

inate the agreements at the

reporting dates. These sw

aps mature from

2005 to 2008.

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

NO

TE

7: P

RO

PE

RT

Y, PL

AN

T A

ND

EQ

UIP

ME

NT

The m

ajor categories of property, plant and equipment and

accumulated depreciation, at cost, are as follow

s:

in millions

20001999

Land$

61$

57

Buildings and leasehold im

provements

1,2911,180

Machinery and equipm

ent2,219

2,033

Land improvem

ents and other110

112

Buildings and equipm

ent under construction

103224

3,7843,606

Less accumulated depreciation

1,6431,421

Net property, plant and equipm

ent$2,141

$2,185

The C

ompany capitalized interest costs of $2 m

illion in

2000, $5 million in

1999 and $2 million in

1998 as part of the

cost of major asset construction projects. A

pproximately

$121m

illion will be required to com

plete construction proj-

ects in progress at September 30, 2000.

In fiscal 2000, the Com

pany adopted Am

erican Institute

of Certified Public A

ccountants Statement of Position 98-1,

“Accounting for the C

osts of Com

puter Software D

eveloped

or Obtained for Internal U

se.” This statem

ent provides

guidance on the capitalization of certain costs incurred in

developing or acquiring internal-use computer softw

are. At

September 30, 2000, the C

ompany has capitalized $25 m

illion

in software costs and recorded $3 m

illion of related software

depreciation.

NO

TE

8: C

ON

TIN

GE

NC

IES

The C

ompany is involved in various law

suits and claims

made by third parties on an ongoing basis as a result of its

day-to-day operations. Although the outcom

e of such items

cannot be determined w

ith certainty, the Com

pany’s general

counsel and managem

ent are of the opinion that the final

outcome should not have a m

aterial effect on the Com

pany’s

results of operations or financial position.

On June 22,1999, 11

current and former em

ployees of

the Com

pany filed the case of M.H

. Fox, et al. v. Tyson

Foods, Inc. (Fox v. Tyson)

in the U.S. D

istrict Court for the

Northern

District

of A

labama

claiming

the C

ompany

violated requirements of the Fair L

abor Standards Act. T

he

suit alleges the Com

pany failed to pay employees for all

hours worked and/or im

properly paid them for overtim

e

hours. The suit generally alleges that (i) em

ployees should

be paid for time taken to put on and take off certain w

ork-

ing supplies at the beginning and end of their shifts and

breaks and (ii) the use of “mastercard” or “line” tim

e fails

to pay employees for all tim

e actually worked. Plaintiffs

seek to

represent them

selves and

all sim

ilarly situated

current and former em

ployees of the Com

pany. At filing

159 current and/or former em

ployees consented to join the

lawsuit and, to date, approxim

ately 4,900 consents have

been filed with the court. D

iscovery in this case is ongoing.

A hearing w

as held on March 6, 2000, to consider the

plaintiff’s request for collective action certification and

court-supervised notice. No decision has been rendered.

The C

ompany believes it has substantial defenses to the

claims m

ade and intends to vigorously defend the case;

however, neither the likelihood of unfavorable outcom

e nor

the amount of ultim

ate liability, if any, with respect to this

case can be determined at this tim

e.

Substantially similar suits have been filed against other

integrated poultry companies. In addition, organizing activity

conducted by representatives or affiliates of the United Food

and Com

mercial W

orkers Union against the poultry industry

has encouraged worker participation in Fox v. T

ysonand the

other lawsuits.

On February 9, 2000, the W

age and Hour D

ivision of the

U.S. D

epartment of L

abor (DO

L) began an industry-w

ide

investigation of poultry producers, including the Com

pany,

to ascertain compliance w

ith various wage and hour issues.

As part of this investigation, the D

OL

inspected14 of the

Com

pany’s processing facilities. The C

ompany has begun

preliminary discussions w

ith the DO

L regarding its investi-

gation to discuss a resolution of potential claims that m

ight be

asserted by the DO

L.

The C

ompany has been advised of an investigation by the

Imm

igration and Naturalization Service (IN

S) and the U.S.

Attorney’s O

ffice for the Eastern D

istrict of Tennessee into

possible violations of the Imm

igration and Naturalization A

ct

at several of the Com

pany’s locations. On O

ctober 5, 2000,

the Com

pany was advised that, in addition to a num

ber of its

employees, the C

ompany itself is a subject of the investigation.

The outcom

e of the investigation and any potential liability on

the part of the Com

pany cannot be determined at this tim

e.

38

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

On January 20, 2000, M

cCarty Farm

s, Inc. (McC

arty),

a form

er subsidiary

of the

Com

pany w

hich has

been

merged into the C

ompany, w

as indicted in the U.S. D

istrict

Court for the Southern D

istrict of Mississippi, Jackson

Division, for conspiracy to violate the federal C

lean Water

Act. T

he alleged conspiracy arose out of McC

arty’s partial

ownership of C

entral Industries, Inc. (Central), w

hich oper-

ates a rendering plant in Forest, Miss. O

n Novem

ber 3, 2000,

Central pled to 25 counts of know

ing violations of the Act

and one count of conspiracy pursuant to a plea agreement,

which resulted in a $14 m

illion fine against Central payable

over five years. The conspiracy indictm

ent against McC

arty

and other Central shareholders w

as dismissed. A

related civil

proceeding by the United States arising from

the same

circumstances, and a state environm

ental administrative

complaint w

ere also fully resolved and dismissed as a part of

Central’s Plea A

greement.

The C

ompany’s Sedalia, M

o., facility is currently under

investigation by the U.S. A

ttorney’s office of the Western

District of M

issouri for possible violations of environmental

laws or regulations. N

either the likelihood of an unfavorable

outcome nor the am

ount of ultimate liability, if any, w

ith

respect to this investigation can be determined at this tim

e.

On O

ctober17, 2000, a W

ashington County (A

rkansas)

Chancery C

ourt jury awarded the C

ompany approxim

ately

$20 million in its law

suit against ConA

gra, Inc. and ConA

gra

Poultry Com

pany. In its suit, the Com

pany alleged that

ConA

gra, Inc. and ConA

gra Poultry Com

pany violated the

Arkansas T

rade Secrets Act w

hen they improperly obtained

and implem

ented Tyson’s confidential feed nutrient profile.

The court ruled that the C

ompany’s feed nutrient profile is a

trade secret under the Arkansas T

rade Secrets Act and that

ConA

gra, Inc. and ConA

gra Poultry Com

pany misappropri-

ated the feed nutrient profile. The court’s ruling and the aw

ard

are subject to appeal; therefore, the Com

pany has not recorded

this award at Septem

ber 30, 2000.

NO

TE

9: C

OM

MIT

ME

NT

S

The C

ompany leases certain farm

s and other properties and

equipment for w

hich the total rentals thereon approximated

$66 million in 2000, $64 m

illion in1999 and $47

million

in1998. M

ost farm leases have term

s ranging from one to

10 years with various renew

al periods. The m

ost signifi-

cantobligations assum

ed under the terms of the leases are

the upkeep of the facilities and payments of insurance and

property taxes.

Minim

um lease com

mitm

ents under noncancelable leases

at September 30, 2000, total $124 m

illion composed of

$54 million for 2001,

$34 million for 2002,

$18 million for

2003,$9

million

for 2004,

$5 m

illion for

2005 and

$4 million for later years. T

hese future comm

itments are

expected to be offset by future minim

um lease paym

ents to

be received under subleases of approximately $12 m

illion.

The C

ompany assists certain of its sw

ine and chicken

growers in obtaining financing for grow

out facilities by

providing the growers w

ith extended growout contracts and

conditional operation of the facilities should a grower default

under their growout or loan agreem

ent. The C

ompany also

guarantees debt of outside third parties of $41m

illion.

NO

TE

10: L

ON

G-T

ER

M D

EB

T

The C

ompany has an unsecured revolving credit agreem

ent

totaling $1billion that supports the C

ompany’s com

mercial

paper program. T

his $1billion facility expires in M

ay 2002.

At Septem

ber 30, 2000, $260 million in com

mercial paper

was outstanding under this facility.

At Septem


pany had outstanding

letters of credit totaling approximately $99 m

illion issued

primarily in support of w

orkers’ compensation insurance

programs, industrial revenue bonds and the leveraged equip-

ment loans.

39

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

Under the term

s of the leveraged equipment loans, the

Com

pany had restricted cash totaling approximately $49 m

il-

lion which is included in other assets at Septem

ber 30, 2000.

Under these leveraged loan agreem

ents, the Com

pany entered

into interest rate swap agreem

ents to effectively lock in a fixed

interest rate for these borrowings.

Annual m

aturities of long-term debt for the five years

subsequent to September 30, 2000, are: 2001–

$123 million;

2002–

$307m

illion; 2003–

$178 million; 2004

–$29 m

illion

and 2005–

$180 million.

The revolving credit agreem

ent and notes contain various

covenants, the more restrictive of w

hich require maintenance

of a minim

um net w

orth, current ratio, cash flow coverage

of interest and fixed charges and a maxim

um total debt-to-

capitalization ratio. The C

ompany is in com

pliance with

these covenants at fiscal year end.

Industrial revenue bonds are secured by facilities with a

net book value of $64 million at Septem

ber 30, 2000. The

weighted average interest rate on all outstanding short-term

borrowing w

as 6.8% at Septem

ber 30, 2000, and 5.5% at

October 2,1999.

Long-term

debt consists of the following:

in millions

Maturity

20001999

Com

mercial paper (6.7%

effective rate at 9/30/00)

2002$

260$

291

Debt securities:

6.75% notes

2005149

150

6.625% notes

2006149

150

6.39–

6.41% notes

2001–

50

6% notes

2003149

148

7% notes

2028147

146

7% notes

2018237

236

Institutional notes:

10.61% notes

2001–

53

10.84% notes

2002–200650

50

11.375% notes

1999–20024

8

Leveraged equipment loans

(rates ranging from 4.7%

to 6.0%

)2005–2008

138154

Other

various74

79

Total long-term debt

$1,357$1,515

NO

TE

11

: ST

OC

K O

PT

ION

S

AN

D R

ES

TR

ICT

ED

ST

OC

K

The C

ompany has a nonqualified stock option plan that

provides for granting options for shares of Class A

stock at

a price not less than the fair market value at the date of

grant. The options generally becom

e exercisable ratably over

three to eight years from the date of grant and m

ust be exer-

cised within

10 years of the grant date.

On M

ay 4, 2000, the Com

pany cancelled approximately

4.3 million option shares and granted approxim

ately1

mil-

lion restricted shares of Class A

comm

on stock. The restric-

tionexpires over periods through D

ecember

1, 2003. At

September

30, 2000,

the C

ompany

had outstanding

1,146,900 restricted shares of Class A

comm

on stock with

restrictions expiring over periods through July1, 2020. T

he

unearned portion of the restricted stock is classified on the

Consolidated B

alance Sheets as deferred compensation in

shareholders’ equity.

A sum

mary of the C

ompany’s stock option activity for

the nonqualified stock option plan is as follows:

Weighted

Sharesaverage exercise

under optionprice per share

Outstanding, Septem

ber 27, 19978,342,334

$15.99

Exercised(178,467)

14.18

Canceled

(313,019)15.84

Granted

504,70018.00

Outstanding, O

ctober 3, 19988,355,548

16.15

Exercised(359,999)

14.23

Canceled

(631,717)16.35

Granted

4,722,50015.00

Outstanding, O

ctober 2, 199912,086,332

15.74

Exercised(88,332)

14.23

Canceled

(5,199,995)15.17

Outstanding, Septem

ber 30, 20006,798,005

$16.19

The

number

of options

exercisable w

as as

follows:

September

30, 2000

–2,926,980;

October

2,1999

–

1,870,893 and October 3,1998

–1,202,498. The rem

ainder

of the options outstanding at September 30, 2000, are

exercisable ratably through Novem

ber 2007. The num

ber

of shares available for future grants was 7,568,614 and

2,368,619 at September 30, 2000, and O

ctober 2,1999,

respectively.

40

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

The follow

ing table summ

arizes information about stock options outstanding at Septem

ber 30, 2000:

Options outstanding

Options exercisable

Weighted average

Range of

Sharesrem

aining contractualW

eighted averageShares

Weighted average

exercise pricesoutstanding

life (in years)exercise price

exercisableexercise price

$14.33–

14.502,057,730

3.9$14.40

1,807,110$14.40

14.58–

15.171,566,050

6.015.04

552,82515.04

17.92–

18.003,174,225

6.117.93

567,04517.92

6,798,0052,926,980

The C

ompany did not grant any options during 2000.

The w

eighted average fair value of options granted during

1999 was approxim

ately $5.06. The fair value of each

option grant is established on the date of grant using the

Black-Scholes option-pricing m

odel. Assum

ptions include an

expected life of 5.5 years, risk-free interest rates ranging

from 5.5%

to 6.4%, expected volatility of 0.2%

and divi-

dend yield of 0.5% in

1999.

The

Com

pany applies

Accounting

Principles B

oard

Opinion N

o. 25 and related Interpretations in accounting

for its employee stock option plans. A

ccordingly, no compen-

sation expense was recognized for its stock option plans. H

ad

compensation cost for the em

ployee stock option plans

been determined based on the fair value m

ethod of account-

ing for the Com

pany’s stock option plans, the tax-effected

impact w

ould be as follows:


20001999

1998

Net incom

e

As reported

$151

$230

$25

Pro forma

148226

21

Earnings per share

As reported

Basic

0.671.00

0.11

Diluted

0.671.00

0.11

Pro forma

Basic

0.660.98

0.09

Diluted

0.650.98

0.09

Pro forma net incom

e reflects only options granted after

1997. Additionally, the pro form

a disclosures are not likely

to be representative of the effects on reported net income for

future years.

NO

TE

12

: BE

NE

FIT

PL

AN

S

The C

ompany has defined contribution retirem

ent and incentive

benefit programs for various groups of C

ompany personnel.

Com

pany contributions totaled $32 million, $33 m

illion and

$32 million in 2000,1999 and

1998, respectively.

NO

TE

13

: TR

AN

SA

CT

ION

S W

ITH

RE

LA

TE

D P

AR

TIE

S

The C

ompany has operating leases for farm

s, equipment

and other facilities with the Senior C

hairman of the B

oard

of Directors of the C

ompany and certain m

embers of his

family, as w

ell as a trust controlled by him, for rentals of

$7m

illion in 2000, $7m

illion in1999 and $5 m

illion in

1998. Other facilities have been leased from

other officers

and directors for rentals totaling $3 million in 2000,1999

and1998.

Certain officers and directors are engaged in chicken and

swine grow

out operations with the C

ompany w

hereby these

individuals purchase animals, feed, housing and other item

s

to raise the animals to m

arket weight. T

he total value of these

transactions amounted to $11

million in 2000, $10 m

illion

in1999 and $12 m

illion in1998.

Certain unim

proved real property was sold by the C

ompany

in June 2000 to an entity controlled by the daughter and son-in-

law of the Senior C

hairman of the B

oard for approximately

$5 million. T

he purchase price was in excess of the m

arket

value as determined by a current independent appraisal.

41

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

NO

TE

14: IN

CO

ME

TA

XE

S

Detail of the provision for incom

e taxes consists of:in millions

20001999

1998

Federal$78

$121$

50

State5

8(4)

$83$129

$46

Current

$36$143

$81

Deferred

47(14)

(35)

$83$129

$46

The reasons for the difference betw

een the effective

income tax rate and the statutory U

.S. federal income tax

rate are as follows:

20001999

1998

U.S. federal incom

e tax rate35.0%

35.0%35.0%

Am

ortization of excess of investm

ents over net assets acquired

4.35.3

23.6

State income taxes (benefit)

1.41.6

(3.8)

Foreign (benefit) losses(5.2)

(6.3)10.9

Other

0.1(0.7)

(1.0)

35.6%34.9%

64.7%

The C

ompany follow

s the liability method in accounting

for deferred income taxes w

hich provides that deferred tax

liabilities are recorded at current tax rates based on the

difference between the tax basis of assets and liabilities and

their carrying amounts for financial reporting purposes

referred to as temporary differences.

The tax effects of m

ajor items recorded as deferred tax

assets and liabilities are:

in millions

20001999

Deferred tax

Deferred tax

Assets

LiabilitiesA

ssetsLiabilities

Property, plant and equipm

ent$

5$200

$–

$238

Suspended taxes from

conversion to accrual m

ethod–

121–

128

Inventory2

912

40

Employee benefits

259

317

All other

2682

5371

$58$503

$86$484

Net deferred tax liability

$445$398

Net deferred tax liabilities are included in other current

liabilities and deferred income taxes on the C

onsolidated

Balance Sheets.

The suspended taxes from

conversion to accrual method

represents the1987

change from the cash to accrual m

ethod of

accounting and is currently being paid down over 20 years

through 2017.

42

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

NO

TE

15

: EA

RN

ING

S P

ER

SH

AR

E

The w

eighted average comm

on shares used in the computa-

tion of basic and diluted earnings per share were as follow

s:


20001999

1998

Num

erator:

Net incom

e$

151$

230$

25

Denom

inator:

Denom

inator for basic earnings per share

–w

eighted average shares225

230227

Effect of dilutive securities:

Stock optionsand

restricted stock1

11

Denom

inator for diluted earnings per share

–adjusted w

eighted average shares and assum

ed conversions226

231228


$0.67$1.00

$0.11


$0.67$1.00

$0.11

The C

ompany had approxim

ately seven million option

shares outstanding at September 30, 2000, that w

ere not

included in

the dilutive

earnings per

share calculation

because they would be antidilutive.

NO

TE

16

: SE

GM

EN

T R

EP

OR

TIN

G

The C

ompany presently identifies segm

ents based on the

products offered and the nature of customers, resulting in

four reported business segments: Food Service, C

onsumer

Products, International and Swine. Food Service includes

fresh, frozen and value-added chicken products sold through

domestic foodservice, specialty and com

modity distributors

who deliver to restaurants, schools and other accounts.

Consum

er Products includes fresh, frozen and value-added

chicken products sold through domestic retail m

arkets for

at-home consum

ption and through wholesale club m

arkets

targeted to small foodservice operators, individuals and

small businesses. T

he Com

pany’s International segment

markets and sells the full line of Tyson chicken products

throughout the

world.

The

Com

pany’s Sw

ine segm

ent

includes feeder pig finishing and marketing of sw

ine to regional

and national packers. The C

ompany’s seafood business, w

hich

was sold on July

17,1999, is listed as a business segment for

fiscal1999 and

1998. The C

ompany m

easures segment

profit as gross profit less selling expenses. The m

ajority of

revenue included in the other category is derived from the

Com

pany’s Specialty Products and Prepared Foods groups,

the C

ompany’s

wholly

owned

subsidiaries involved

in

supplying chicken breeding stock and trading agricultural

goods worldw

ide, as well as the C

ompany’s turkey and egg

products facilities, which w

ere sold on Decem

ber 31,1998.

Sales between reportable segm

ents are recorded at cost. The

majority of identifiable assets in the other category include

excess of investments over net assets acquired, investm

ents

and other assets and other corporate unallocated assets.

43

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

Information on segm

ents and a reconciliation to income before taxes on incom

e and minority interest are as follow

s:

in millions

Food C

onsumer

ServiceProducts

InternationalSw

ineSeafood

Other

Consolidated

Fiscal year ended September 30, 2000

Sales$3,312

$2,250$657

$157–

$782

$7,158

Gross profit less selling expenses

197145

5019

–140

551

Other operating expenses

203

Other expense

114


e and m

inority interest234

Depreciation

11365

83

–68

257

Identifiable assets1,745

1,111166

102–

1,7304,854


ent42

688

––

78196

Fiscal year ended October 2, 1999

Sales$3,354

$2,252$645

$110$189

$813

$7,363


311241

68(63)

22155

734


247

Other expense

116


e and m

inority interest371

Depreciation

11457

14

2950

255

Asset im


––

–35

1923

77


1,161194

70–

1,7335,083


ent153

13016

46

54363

Fiscal year ended October 3, 1998

Sales$3,329

$2,074$593

$160$214

$1,044$7,414


232179

9(21)

3110

512


308

Other expense

133


e and m

inority interest71

Depreciation

10862

14

2345

243

Asset im


5139

48–

4730

215


1,038188

128221

1,8455,242


ent154

69–

527

55310

44

NO

TE

S T

O C

ON

SO

LIDA

TE

D F

INA

NC

IAL S

TAT

EM

EN

TS

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

The m

ajority of the Com

pany’s operations are domiciled

in the United States. A

pproximately 97%

of sales to external

customers for the fiscal years ended 2000,

1999 and1998

were sourced from

the United States. A

pproximately $3 bil-

lion of long-lived assets were located in the U

nited States

at fiscal years ended 2000, 1999 and1998. A

pproximately

$74 million, $74 m

illion and $64 million of long-lived assets

were located in foreign countries, prim

arily Mexico, at fiscal

years ended 2000, 1999 and 1998, respectively.

The C

ompany sells certain of its products in foreign

markets, prim

arily China, H

ong Kong, Japan, M

exico,

Puerto Rico and R

ussia. The C

ompany’s export sales for

2000, 1999 and1998 totaled $550 m

illion, $546 million

and $687

million,

respectively. Substantially

all of

the

Com

pany’s export sales are transacted through unaffiliated

brokers, marketing associations and foreign sales staffs.

Foreign sales were less than

10% of total consolidated sales

for 2000, 1999 and1998, respectively.

NO

TE

17

: SU

PP

LE

ME

NT

AL

INF

OR

MA

TIO

N

in millions

20001999

1998

Supplemental C

ash Flow Inform

ation

Cash paid during the period for:

Interest$116

$128$160

Income taxes

73125

197

NO

TE

18

: QU

AR

TE

RLY

FIN

AN

CIA

L

DA

TA

(UN

AU

DIT

ED

)


FirstSecond

ThirdFourth

quarterquarter

quarterquarter

2000

Sales$1,779

$1,791$1,807

$1,781

Gross m

argin313

297269

235

Net incom

e57

3640

18


0.250.16

0.180.08


0.250.16

0.180.08

1999

Sales$1,825

$1,841$1,881

$1,816

Gross m

argin306

322350

331

Net incom

e56

6568

41


0.240.28

0.300.18


0.240.28

0.300.18

45

RE

PO

RT

OF

MA

NA

GE

ME

NT

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

The m

anagement of Tyson Foods, Inc., (the C

ompany) has

the responsibility of preparing the accompanying financial

statements and is responsible for their integrity and objec-

tivity. The statem

ents were prepared in conform

ity with

accounting principles generally accepted in the United States

applied on a consistent basis. Such financial statements are

necessarily based, in part, on best estimates and judgm

ents.

The C

ompany m

aintains a system of internal accounting

controls, and a program of internal auditing designed to

provide reasonable assurance that the Com

pany’s assets are

protected and that transactions are executed in accordance

with proper authorization, and are properly recorded. T

his

system

of internal

accounting controls

is continually

reviewed and m

odified in response to changing business

conditions and operations and to recomm

endations made by

the independent auditors and the internal auditors. The

Com

pany has a code of conduct and an experienced full-

time com

pliance officer. The m

anagement of the C

ompany

believes that the accounting and control systems provide

reasonable assurance that assets are safeguarded and finan-

cial information is reliable.

The A

udit Com

mittee of the B

oard of Directors m

eets

regularly with the C

ompany’s financial m

anagement and

counsel, with the C

ompany’s internal auditors, and w

ith

the independent auditors engaged by the Com

pany. These

meetings include discussions of internal accounting controls

and the quality of financial reporting. The A

udit Com

mittee

has discussed

with

the independent

auditors m

atters

required to be discussed by Statement of A

uditing Standards

No. 61

(Com

munication w

ith Audit C

omm

ittees). In addi-

tion, the Com

mittee has discussed w

ith the independent

auditors, the auditors’ independence from the C

ompany

and its managem

ent, including the matters in the w

ritten

disclosures required by the Independence Standards Board

Standard No.1

(Independence Discussions w

ith Audit C

om-

mittees). T

he independent auditors and the Internal Audit

Departm

ent have

free and

independent access

to the

Audit C

omm

ittee to discuss the results of their audits or

any other matters relating to the C

ompany’s financial affairs.

Ernst &

Young L

LP, independent auditors, have audited

the accompanying consolidated financial statem

ents.

Novem

ber13, 2000

John TysonSteven H

ankins

Chairm

an of the Board,

Executive V

ice President

President and and C

hief Financial Officer

Chief E

xecutive Officer

46

BO

AR

D O

F D

IRE

CT

OR

S A

ND

SH

AR

EH

OL

DE

RS

We have audited the accom

panying consolidated balance

sheets of Tyson Foods, Inc., as of September 30, 2000, and

October 2,1999, and the related consolidated statem

ents of

income, shareholders’ equity, and cash flow

s for each of the

three years in the period ended September 30, 2000. T

hese

financial statements are the responsibility of the C

ompany’s

managem

ent. Our responsibility is to express an opinion on

these financial statements based on our audits.

We conducted our audits in accordance w

ith auditing

standards generally accepted in the United States. T

hose stan-

dards require that we plan and perform

the audit to obtain

reasonable assurance about whether the financial statem

ents

are free of material m

isstatement. A

n audit includes exam-

ining, on a test basis, evidence supporting the amounts and

disclosures in the financial statements. A

n audit also includes

assessing the

accounting principles

used and

significant

estimates m

ade by managem

ent, as well as evaluating the

overall financial statement presentation. W

e believe that our

audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above

present fairly, in all material respects, the consolidated finan-

cial position of Tyson Foods, Inc., at September 30, 2000, and

October 2,1999, and the consolidated results of its operations

and its cash flows for each of the three years in the period

ended September 30, 2000, in conform

ity with accounting

principles generally accepted in the United States.

Ernst &

Young L

LP

Little R

ock, Arkansas

Novem

ber13, 2000

RE

PO

RT

OF

IND

EP

EN

DE

NT

AU

DIT

OR

ST

YS

ON

FO

OD

S, IN

C. 2

00

0 A

NN

UA

L R

EP

OR

T

47

ELE

VE

N-Y

EA

R F

INA

NC

IAL S

UM

MA

RY

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT


20001999

19981997

19961995

19941993

19921991

1990

Summ

ary of Operations

Sales$7,158

$7,363$7,414

$6,356$6,454

$5,511$5,110

$4,707$4,169

$3,922$3,825

Cost of sales

6,0446,054

6,2605,318

5,5064,423

4,1493,797

3,3903,148

3,082

Gross profit

1,1141,309

1,1541,038

9481,088

961911

779775

744

Operating expenses

766822

950638

679616

766535

447441

423

Interest expense115

124139

110133

11586

7377

96129

Provision for income taxes

83129

46144

49131

121129

10197

80

Net incom

e (loss)$ 151

$ 230$ 25

$ 186$ 87

$ 219$ (2)

$ 180$ 161

$ 146$ 120

Year end shares outstanding225

229231

213217

217218

221206

206205

Diluted average shares outstanding

226231

228218

218218

222223

208207

199

Diluted earnings (loss) per share

$ 0.67$ 1.00

$ 0.11$ 0.85

$ 0.40$ 1.01

$ (0.01)$ 0.81

$ 0.77$ 0.70

$ 0.60

Basic earnings (loss) per share

0.671.00

0.110.86

0.401.01

(0.01)0.82

0.780.71

0.61

Dividends per share:

Class A

0.1600.115

0.1000.095

0.0800.053

0.0470.027

0.0270.020

0.013

Class B

0.1440.104

0.0900.086

0.0720.044

0.0390.022

0.0220.017

0.011

Depreciation and am

ortization$

294$

291$

276$

230$

239$

205$

188$

177$

149$

136$

123

Balance Sheet D

ata

Capital expenditures

$196

$363

$310

$291

$214

$347

$232

$225

$108

$214

$164

Total assets4,854

5,0835,242

4,4114,544

4,4443,668

3,2542,618

2,6462,501

Net property, plant and equipm

ent2,141

2,1852,257

1,9251,869

2,0141,610

1,4351,142

1,1621,071

Total debt1,542

1,8042,129

1,6901,975

1,9851,455

1,024826

9841,021

Shareholders’ equity$2,175

$2,128$1,970

$1,621$1,542

$1,468$1,289

$1,361$

980$

823$

663

Other K

ey Financial Measures

Return on sales

2.2%3.1%

0.3%2.9%

1.4%4.0%

0.0%3.8%

3.9%3.7%

3.1%

Annual sales grow

th (decline)(2.8)%

(0.7)%16.7%

(1.5)%17.1%

7.9%8.6%

12.9%6.3%

2.5%50.7%

Gross m

argin15.6%

17.8%15.6%

16.3%14.7%

19.7%18.8%

19.4%18.7%

19.8%19.4%

Return on invested capital

8.2%10.9%

4.9%10.2%

6.8%13.3%

6.5%14.8%

14.8%15.4%

15.0%

Return on beginning shareholders’ equity

7.1%11.7%

1.5%12.1%

5.9%17.0%

(0.2)%18.4%

19.5%22.0%

26.8%

Effective tax rate35.6%

34.9%64.7%

43.6%37.0%

38.1%101.8%

41.8%38.5%

40.0%40.0%

Total debt to capitalization41.5%

45.9%51.9%

51.0%56.2%

57.5%53.0%

42.9%45.7%

54.5%60.6%

Book value per share

$9.67

$9.31

$8.53

$7.60

$7.09

$6.76

$5.92

$6.16

$4.75

$3.99

$3.24

Closing stock price high

18.0025.38

24.4423.63

18.5818.17

16.6718.08

15.0815.58

11.79

Closing stock price low

8.5615.00

16.5017.75

13.8313.83

12.5012.83

10.178.46

7.17

1.Return on invested capital is defined as earnings before interest and taxes divided by average total assets less current liabilities excluding current debt.

2.The results for 2000 include a $24 million pretax charge for bad debt w

riteoff related to the January 31, 2000, bankruptcy filing of Am

eriServe Food Distribution, Inc.

and a $9 million pretax charge related to Tyson de M

exico losses.

3. The results for 1999 include a $77m

illion pretax charge for loss on sale of assets and impairm

ent write-dow

ns.

4.Significant business combinations accounted for as purchases: H

udson Foods, Inc. and Arctic A

laska Fisheries Corporation on January 9, 1998 and O

ctober 5, 1992, respectively. See Footnote 2 to the C

onsolidated Financial Statements for acquisitions during the three-year period ended Septem

ber 30, 2000.

5. The results for 1998 include a $215 million pretax charge for asset im

pairment and other charges.

6. The results for 1997 include a $41 million pretax gain ($4 m

illion aftertax) from the sale of the beef division assets.

7. The results for 1994 include a $214 million pretax charge ($205 m

illion aftertax) due to the write-dow

n of certain long-lived assets of Arctic A

laska Fisheries Corporation.

48

BO

AR

D O

F D

IRE

CT

OR

ST

YS

ON

FO

OD

S, IN

C. 2

00

0 A

NN

UA

L R

EP

OR

T

DO

N T

YS

ON

, 70, seniorchairm

an of the board ofdirectors, served as chair-m

an of the board until April

1995 when he w

as named

senior chairman. M

r. Tysonserved

as chief

executiveofficer

until M

arch1991

and has

been a

mem

ber of the board since1952. 1

JOE

ST

AR

R, 67, a private

investor, served as a vicepresident

of Tyson

until1996. M

r. Starr has been a

mem

ber of

the board

since1969.

NE

ELY

CA

SS

AD

Y, 72, is

chairman of the board and

president of Cassady Invest-m

ents, Inc. and served as a senator in the A

rkansasG

eneral Assem

bly from1983

to1996. M

r. Cassady has

been a mem

ber of the board since1974. 2,3,4

FR

ED

V

OR

SA

NG

ER

, 72,is a private business con-sultant,

manager

of B

udW

alton Arena and vice pres-

ident em

eritus of

financeand adm

inistration at theU

niversity

of

Arkan

sas. M

r. Vorsanger has been a mem

ber of theboard since

1977. 2,3,4

LE

LA

ND

T

OL

LE

TT

, 63,

served as chairman of the

board and chief executiveofficer from

1995 to1998.A

Tyson team m

ember since

1959, Mr. Tollett w

as presi-dent

and chief

executiveofficer from

1991to

1995. He has been a

mem

ber of the board since1984. 1

JOH

N

TY

SO

N,

47, w

asn

amed

chairman

of

theboard of directors in

1998and assum

ed responsibili-ties as president and chiefexecutive officer in April 2000.H

e had served as vice chair-m

an since1997. Previously he w

as president of the beef and pork division and director of governm

ental, media and public relations.

Mr. Tyson has been a m

ember of the board

since1984. 1

SH

EL

BY

MA

SS

EY

, 67, is afarm

er and a private inves-tor. H

e served as senior vicechairm

an of the board ofdirectors from

1985 to1988

and has been a mem

ber ofthe board since

1985. 3,4

BA

RB

AR

A T

YS

ON

, 51, isvice president of the C

om-

pany. She

has served

inrelated

cap

acities sin

ce1988. M

s. Tyson has been a

mem

ber of

the board

since1988.

LL

OY

D H

AC

KL

EY

, 60, ispresident and chief executiveofficer of Lloyd V. H

ackleyan

d A

ssociates, In

c. H

e w

as president of the North

Carolina Comm

unity CollegeSystem

from1995 to

1997and w

as chancellor and a tenured professor ofpolitical science at Fayetteville State U

niversity,Fayetteville, N

.C., from

1988 to1995. M

r. Hackley

has been a mem

ber of the board since1992. 2,4

DO

NA

LD W

RA

Y, 63, retired

as president in March 2000

after 39 years with the Com

-pany. H

e served as presidentand chief operating officerfrom

1995 to1999 after serv-

ing as chief operating officersince

1991. Mr. W

ray has been a mem


1994.

GE

RA

LD

JOH

NS

TO

N, 58,

a p

rivate in

vestor, w

asexecutive

vice p

resident

of finance for Tyson from1981

to1996

when

he

stepped down and becam

ea consultant to the Com

pany.M

r. Johnston has been a mem


1996.JIM K

EV

ER

, 48, is a directorof

Quintiles

Transnationaland has served as C

EO of

Envoy Corporation, a subsid-iary of Q

uintiles, since Envoyw

as acquired by Quintiles in

March

1999. He served as

president and Co-C

EO of Envoy from

August

1995 until March

1999 and as a director fromEnvoy’s incorporation in A

ugust1994 until

March

1999. Mr. K

ever has been a mem

ber ofthe board since

1999. 2

DA

VID

JO

NE

S,

51, has

been

chairm

an

of

the

board and chief executiveofficer

of R

ayovac C

orp.since

1996. Before joining

Rayovac, M

r. Jones servedas president, C

EO and chair-

man of Therm

oscan, Inc. and as president,C

EO and chairm

an of the Regina C

ompany.

He w

as previously with Electrolux C

orporationand G

eneral Electric Co. M

r. Jones was elected

to the board in August 2000. 2

BA

RB

AR

A

AL

LE

N, 48, is

president and CO

O ofPala-

din R

esources. Previously

Ms. A

llen was president of

corporate supplier solutionsfor C

orporate Express. Shew

as with Q

uaker Oats C

o.for 23 years w

here she held several senior posi-tions including executive vice president ofinternational foods, vice president of corporatestrategic planning, president of the frozenfoods division and vice president of m

ar-keting. M

s. Allen w

as elected to the board inN

ovember 2000.

1Executive Com

mittee

2Audit C

omm

ittee3C

ompensation C

omm

ittee4Special C

omm

ittee

49

Mike B

akerPresident, Production Services

Les R. B

aledge

Executive Vice President

and General C

ounsel

James B

ellPresident, C

obb-Vantress, Inc.

LaDo

nn

a Bo

rnh

oft

Senior Vice President,

Asset and R

isk Managem

ent

Ellis B

run

ton


Food Safety and Quality A

ssurance

Wayn

e B. B

utler

President, Prepared Foods Group

Jim C

atePresident, Specialty Products G

roup

Gary D

. Co

op

erV

ice President and C

hief Information O

fficer

Joh

n D

. Co

pelan

dExecutive V

ice President, Ethics and Environm

ental Com

pliance

Bo

b C

orscad

den


Corporate A

dvertising and M

arketing Services

Mich

elle D. E

isner


Hum

an Resources

Lou

is C. G

ottsp

on

er, Jr.A

ssistant Secretary and D

irector of Investor Relations

Steven

Han

kins

Executive Vice President

and Chief Financial O

fficer

R. R

ead H

ud

son

Secretary and Corporate C

ounsel

Greg H

uett

President, International Group

Clark Irw

inSenior V

ice President and G

eneral Manager,

Food Service Distribution

Carl G

. Joh

nso

nExecutive V

ice President, A

dministrative Services

Do

nn

ie Kin

gSenior V

ice President and G

eneral Manager,

Food Service Com

modities

Joh

n S

. LeaExecutive V

ice President and C

hief Marketing O

fficer

Den

nis Leath

erby

Senior Vice President, Finance

and Treasurer

Greg W

. LeeC

hief Operating O

fficer

Bern

ard Leo

nard

Senior Vice President

and General M

anager, Food Service Q

SR C

hain Division

Bo

b E

. Love

Vice President,

Research and D

evelopment

William

W. Lo

vettePresident, Food Service G

roup

Joe M

oran


and General M

anager, Food ServiceR

efrigerated and Deli D

ivision

Wes M

orris


and General M

anager, Wholesale C

lubs

Ro

dn

ey S. P

lessV

ice President, Controller

and Chief A

ccounting Officer

Cary D

. Rich

ardso

nSenior V

ice President and G

eneral Manager, R

etail Division

Do

nn

ie Sm

ithExecutive V

ice President, Supply C

hain Managem

ent

Ran

dy S

mith


and General M

anager, Food Service Q

SR C

hain Division

Joh

n T

ho

mas

President, The Pork Group, Inc.

Joh

n H

. Tyson

Chairm

an, President and C

hief Executive Officer

David

L. Van B

ebb

erSenior V

ice President, Legal Services

William

E. W

hitfield

IIISenior V

ice President and G

eneral Manager of A

ccounting,Poultry O

perations

James Yo

un

gSenior V

ice President, Live Production Services

CO

RP

OR

AT

E A

ND

EX

EC

UT

IVE

OF

FIC

ER

ST

YS

ON

FO

OD

S, IN

C. 2

00

0 A

NN

UA

L R

EP

OR

T

50

CO

RP

OR

AT

E IN

FO

RM

AT

ION

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

51

CL

OS

ING

PR

ICE

OF

CO

MP

AN

Y’S

CO

MM

ON

ST

OC

K

Fiscal Year 2000Fiscal Year1999

High

LowH

ighLow

First Quarter

$18.00$15.25

$25.38$19.56

Second Quarter

17.199.00

21.7518.56

Third Quarter

11.138.56

23.5619.19

Fourth Quarter

10.008.88

23.3115.00

As of Septem


pany had 36,079

Class A

comm

on shareholders of record and17

Class B

comm

on shareholders of record.

DIR

EC

TS

ER

VIC

E™

SH

AR

EH

OL

DE

R

INV

ES

TM

EN

T P

RO

GR

AM

Tyson has authorized First Chicago T

rust Com

pany to

implem

ent its program for dividend reinvestm

ent and direct

purchase of shares for current as well as new

investors of

Tyson Class A

Com

mon Stock. T

his program provides alter-

natives to traditional retail brokerage methods of purchas-

ing, holding and selling Tyson stock. All inquiries concerning

this program should be directed to:

DirectSE

RV

ICE

™ Program

for Shareholders

of Tyson Foods, Inc.

c/o First Chicago T

rust Com

pany

P.O. B

ox 2598

Jersey City, N

J 07303-2598

1-800-317-4445 (current shareholders)

1-800-822-7096 (non-shareholders)

CH

AN

GE

OF

AD

DR

ES

S

If your Tyson stock is registered in your own nam

e(s), send

change of address information to First C

hicago Trust Com

pany.

MU

LTIP

LE

DIV

IDE

ND

CH

EC

KS

AN

D D

UP

LIC

AT

E M

AIL

ING

S

If your Tyson stock is registered in similar but different

names (e.g., Jane A

. Doe and J.A

. Doe) w

e are required to

create separate accounts and mail dividend checks and

proxy materials separately, even if the m

ailing addresses are

the same. To consolidate accounts, contact First C

hicago

Trust C

ompany.

LO

ST

OR

ST

OL

EN

ST

OC

K C

ER

TIF

ICA

TE

S

OR

LE

GA

L T

RA

NS

FE

RS

If your stock certificates are lost, stolen or in some w

ay

destroyed, or if you wish to transfer registration, notify First

Chicago

Trust

Com

pany in

writing.

Include the

exact

name(s) and Social Security or tax identification num

ber(s)

in which the stock is registered and, if possible, the num

bers

and issue dates of the certificates.

ST

OC

K E

XC

HA

NG

E L

IST

ING

S

The C

lass A com

mon stock of the C

ompany is traded on the

New

York Stock E

xchange under the symbol T

SN.

CO

RP

OR

AT

E H

EA

DQ

UA

RT

ER

S

2210 West O

aklawn D

rive

Springdale, AR

72762-6999

Telephone (501) 290-4000

AV

AIL

AB

ILIT

Y O

F F

OR

M10

-K

A copy of the C

ompany’s Form

10-K, as filed w

ith the

Securities and Exchange C

omm

ission for fiscal 2000, may

be obtained by Tyson shareholders by writing to:

Director of Investor R

elations

Tyson Foods, Inc.

P.O. B

ox 2020

Springdale, AR

72765-2020

Telephone (501) 290-4826

Fax (501) 290-6577

E-m

ail: [email protected]

AN

NU

AL

ME

ET

ING

The A

nnual Meeting of Shareholders w

ill be held at10 a.m.

Friday, January

12, 2001,

at the

Walton

Arts

Center,

Fayetteville, Ark. A

live audio webcast w

ill be available at

ww

w.tyson.com

/investorrel. To listen live via telephone, call

(800)450-0785. Outside the U

nited States, call (612)332-0418.

Shareholders who cannot attend the m

eeting are urged to

exercise their right to vote by proxy on the Internet, by phone

or by mail.

DIV

IDE

ND

S

Tyson currently pays dividends four times a year on M

arch15,

June15, Septem

ber15 and Decem

ber15. The dividend is paid

to everyone who holds shares on the record date.

IND

EP

EN

DE

NT

AU

DIT

OR

S

Ernst &

Young L

LP

425 West C

apitol, Suite 3600

Little R

ock, AR

72201

Telephone (501) 370-3000

TR

AN

SF

ER

AG

EN

T

First Chicago T

rust Com

pany of New

York,

a division of EquiServe

P.O. B

ox 2500

Jersey City, N

J 07303

Telephone (800) 317-4445

Hearing Im

paired Telephone TD

D (201) 222-4955

Shareholders also may contact First C

hicago Trust Com

pany via

the Internet at ww

w.equiserve.com

.

INV

ES

TO

R R

EL

AT

ION

S

Financial analysts and others seeking investor-related infor-

mation should contact:

Louis C

. Gottsponer, Jr.

Director of Investor R

elations

Tyson Foods, Inc.

P.O. B

ox 2020

Springdale, AR

72765-2020

Telephone (501) 290-4826

Fax (501) 290-6577

E-m


ME

DIA

RE

LA

TIO

NS

Mem

bers of the news m

edia seeking information about

Tyson Foods should contact:

Ed N

icholson

Director of M

edia & C

omm

unity Relations

Tyson Foods, Inc.

P.O. B

ox 2020

Springdale, AR

72765-2020

Telephone (501) 290-4591

Fax (501) 290-7984

E-m


NE

WS

RE

LE

AS

ES

New

s releases concerning Tyson Foods can be received by fax

by calling PR N

ewsw

ire at (800) 758-5804, ext.113769.

TY

SO

N O

N T

HE

INT

ER

NE

T

Information about Tyson Foods is available on the Internet

at ww

w.tyson.com

.

RE

GIS

TE

RE

D T

RA

DE

MA

RK

S

Tyson®,

Weaver ®,

Mexican

Original ®,

Delightful

Farms ®,

Prospect Farms ®,Tastybird

®,Mallard’s ®,Lady A

ster ®,McC

arty

Foods ®,Wings of Fire

®,Specialties™,C

hicken 2Go™

,Extreme

Chicken™

,Chik R

ibs™,Tyson. It’s w

hat your family deserves.™

,

Tyson For Families™

,Food Wise™

,Cooking Sm

art™

US

E O

F T

ER

MS

The term

“Tyson” and such terms as “the C

ompany,” “our,”

“we” and “us” m

ay refer to Tyson Foods, Inc., to one or

more of its consolidated subsidiaries or to all of them

taken as

a whole. T

hese terms are used for convenience only and are

not intended as a precise description of any of the separate

companies, each of w

hich manages its ow

n affairs.

©2000 Tyson Foods, Inc.

Printed on recycled paper

CO

RP

OR

AT

E IN

FO

RM

AT

ION

TY

SO

N F

OO

DS

, INC

. 20

00

AN

NU

AL

RE

PO

RT

52

Design: Critt Graham + Associates, Atlanta/NYC/Boston. Principal photography: Eric Myer. Food photography: Wans Studio. Page 16 photography: Scott Flanagin. Printing: Hennegan Printing Company.

GR

ILLED B

REA

ST STRIPS

CH

ICK

EN C

OR

DO

N B

LEUR

OA

STED LEG

QU

AR

TER

Tyson

Foo

ds, In

c. 2210 West O

aklawn

Drive

Sp

ringd

ale, Arkan

sas 72762-6999

ww

w.tyso

n.co

m

Tyson Foods, Inc., headquartered in Springdale, Arkansas, is ......TYSON VS. THE COMPETITION U.S....

Documents

Transcript of Tyson Foods, Inc., headquartered in Springdale, Arkansas, is ......TYSON VS. THE COMPETITION U.S....