management’s  discussion  and analysis p 19 Tyson Foods, Inc. 2002 annual report The effective tax rate was 35.5% in 2002 compared to 35.4% in 2001. The Company adopted SFAS No. 142, “Goodwill and Other Intangible Assets” (SFAS 142), at the beginning of 2002. Under SFAS 142 the Company no longer amortized goodwill which resulted in a decrease in the effective tax rate for 2002, offset primarily by a reduction in the foreign sales benefit. Tyson Foods operates in five business segments: Beef, Chicken, Pork, Prepared Foods and Other. The Company measures segment profit as operating income. For the periods ending September 28, 2002, and September 29, 2001, the following information includes 100% of IBP results for 52 weeks and nine weeks, respectively. Information on segments is as follows. Beef segment is primarily involved in the slaughter of live fed cattle and fabrication of dressed beef carcasses into primal and  sub-primal meat cuts and case-ready products. It also involves deriving value from allied products such as hides and variety meats for sale to further processors and others. The beef segment markets its products to food retailers, distributors, wholesalers, restaurants and hotel chains and other food processors in domestic and international markets. Allied products are also marketed  to manufacturers of pharmaceuticals and technical products. Chicken segment includes fresh, frozen and value-added chicken products sold through domestic foodservice, domestic  retail markets for at-home consumption, wholesale club markets targeted to small foodservice operations, small businesses  and individuals, as well as specialty and commodity distributors who deliver to restaurants, schools and international markets throughout the world. The chicken segment also includes sales from allied products and the chicken breeding stock subsidiary. Pork segment represents the Company’s live swine group, hog slaughter and fabrication operations, case-ready products and related allied product processing activities. The pork segment markets its products to food retailers, distributors, wholesalers, restaurants and hotel chains and other food processors in domestic and international markets. It also sells allied products to pharmaceutical and technical products manufacturers, as well as live swine to pork processors and producers. Prepared Foods segment includes the Company’s operations that manufacture and market frozen and refrigerated food products. Products include pepperoni, beef and pork toppings, pizza crusts, flour and corn tortilla products, appetizers, hors d’oeuvres, desserts, prepared meals, ethnic foods, soups, sauces, side dishes, specialty pasta and meat dishes as well as branded and processed meats.  Other segment includes the logistics group and other corporate groups not identified with specific protein groups. in millions Sales by Segment 2002 2001 Change Beef $10,488 $ 2,027 $ 8,461 Chicken 7,222 7,057 165 Pork 2,503 619 1,884 Prepared Foods 3,072 818 2,254 Other 82 42 40 Total $23,367 $10,563 $12,804 in millions Operating Income (Loss) by Segment 2002 2001 Change Beef $220 $ 32 $188 Chicken 428 250 178 Pork 25 27 (2) Prepared Foods 158 15 143 Other 56 (8) 64 Total $887 $316 $571 Segment Information