p 35 Tyson Foods, Inc. 2002 annual report The pro forma unaudited results of operations for the years ended September 29, 2001, and September 30, 2000, assuming the purchase of IBP had been consummated as of October 1, 1999, follows. Pro forma adjustments have been made to reflect additional interest from debt associated with the acquisition and additional common shares issued. The unaudited pro forma results are not necessarily indicative of the actual results of operations that would have occurred had the purchase actually been made at the beginning of fiscal 2000, or the results that may occur in the future. In May 2001, the Company increased its ownership in Tyson de Mexico, S.A. de C.V. (TdM) by acquiring common shares of  TdM from existing minority shareholders for cash and by a non-cash transaction whereby TdM exchanged minority shareholders’ common stock for $45 million of TdM redeemable preferred stock with an 8% coupon. In September 2001, the Company acquired the remaining common shares of TdM held by minority shareholders. Upon completion of these transactions, the Company  now owns 100% of the common shares of TdM. The Company has entered into a call agreement with the holders of converted TdM redeemable preferred stock which allows the Company to purchase the converted redeemable preferred stock over five years. Additionally, in May 2001, TdM purchased the poultry assets of Nochistongo S.P.R. de R.L., a fully integrated broiler production operation that markets products under the “Kory” brand. The purchase price of both transactions was allocated based upon the estimated fair market values at the date of purchase. As of September 28, 2002, the Company had purchased $11 million of the convertible redeemable preferred stock. In May 2002, the Company acquired Millard Processing Services, a bacon processing operation, for approximately $73 million  in cash. The acquisition has been accounted for as a purchase and goodwill of approximately $14 million has been recorded. In September 2002, the Company completed the sale of its Specialty Brands, Inc. subsidiary. The subsidiary had been acquired with the IBP acquisition and its results of operations were included in the Company’s prepared foods segment. The Company received cash proceeds of approximately $131 million, which were used to reduce indebtedness, and recognized a pretax gain of $22 million which is included in other income on the consolidated statement of income. Note 3: Disposition in millions, except per share data 2001 2000 Pro Forma Pro Forma Sales $24,975 $24,085 Net income before extraordinary items 82 314 Net income 82 297 Earnings per share before extraordinary items: Basic 0.24 0.89 Diluted 0.24 0.89 Earnings per share: Basic 0.23 0.84 Diluted 0.23 0.84 notes to  consolidated  financial  statements