Earnings Per Share

12 Months Ended

Oct. 01, 2016

EARNINGS PER SHARE

The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:



	in millions, except per share data
	2016		2015		2014
Numerator:
Net income	$	1,772	$	1,224	$	856
Less: Net income (loss) attributable to noncontrolling interests	4		4		(8		)
Net income attributable to Tyson	1,768		1,220		864
Less dividends declared:
Class A	192		129		94
Class B	41		26		21
Undistributed earnings	$	1,535	$	1,065	$	749

Class A undistributed earnings	$	1,279	$	896	$	612
Class B undistributed earnings	256		169		137
Total undistributed earnings	$	1,535	$	1,065	$	749

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	315		335		284
Class B weighted average shares, and shares under if-converted method for diluted earnings per share	70		70		70
Effect of dilutive securities:
Stock options and restricted stock	5		5		5
Tangible Equity Units	—		3		1
Warrants	—		—		4
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	390		413		364

Net Income Per Share Attributable to Tyson:
Class A Basic	$	4.67	$	3.06	$	2.48
Class B Basic	$	4.24	$	2.79	$	2.26
Diluted	$	4.53	$	2.95	$	2.37

We had no stock-based compensation shares that were antidilutive for fiscal 2016. We had approximately 5 million and 4 million of our stock-based compensation shares that were antidilutive for fiscal 2015 and fiscal 2014, respectively. These shares were not included in the dilutive earnings per share calculation.

We have two classes of capital stock, Class A stock and Class B stock. Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of cash dividends paid to holders of Class B stock cannot exceed 90% of the cash dividends paid to holders of Class A stock.

We allocate undistributed earnings based upon a 1 to 0.9 ratio per share to Class A stock and Class B stock, respectively. We allocate undistributed earnings based on this ratio due to historical dividend patterns, voting control of Class B shareholders and contractual limitations of dividends to Class B stock.