Tyson Foods, Inc. 2002 annual report notes to  consolidated  financial  statements p 46 The Company applies Accounting Principles Board Opinion No. 25 and related interpretations in accounting for its employee stock option plans. Accordingly, no compensation expense was recognized for its stock option plans. Had compensation cost for the employee stock option plans been determined based on the fair value method of accounting for the Company’s stock option plans, the tax-effected impact would be as follows: Pro forma net income reflects only options granted after fiscal 1995. Additionally, the pro forma disclosures are not likely to be representative of the effects on net income for future years. The Company has defined contribution retirement and incentive benefit programs for various groups of Company personnel. Company contributions totaled $50 million, $35 million and $32 million in 2002, 2001 and 2000, respectively. The Company has operating leases for farms, equipment and other facilities with the former Senior Chairman of the Board of Directors of the Company and certain members of his family, as well as a trust controlled by him, for rentals of $9 million in 2002, $9 million in 2001 and $7 million in 2000. Other facilities have been leased from other officers and directors for rentals totaling  $2 million in 2002, $2 million in 2001 and $3 million in 2000. Certain officers and directors are engaged in chicken and swine growout operations with the Company whereby these individuals purchase animals, feed, housing and other items to raise the animals to market weight. The total value of these transactions amounted to $10 million in 2002, $10 million in 2001 and $11 million in 2000. Detail of the provision for income taxes consists of: Note 15: Income Taxes Note 14: Transactions with Related Parties Note 13: Benefit Plans in millions 2002 2001 2000 Federal $173 $ 50 $73 State 17 5 5 Foreign 20 3 5 $210 $ 58 $83 Current $188 $105 $36 Deferred 22 (47) 47 $210 $ 58 $83 in millions, except per share data 2002 2001 2000 Net Income As reported $ 383 $ 88 $ 151 Pro forma 379 85 148 Earnings per share As reported Basic 1.10 0.40 0.67 Diluted 1.08 0.40 0.67 Pro forma Basic 1.09 0.38 0.66 Diluted 1.07 0.38 0.65