Earnings Per Share

3 Months Ended

Jan. 02, 2016

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data):



	Three Months Ended
	January 2, 2016		December 27, 2014
Numerator:
Net income	$	461	$	310
Less: Net income attributable to noncontrolling interests	—		1
Net income attributable to Tyson	461		309
Less dividends declared:
Class A	58		38
Class B	13		8
Undistributed earnings	$	390	$	263

Class A undistributed earnings	$	327	$	221
Class B undistributed earnings	63		42
Total undistributed earnings	$	390	$	263
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	325		336
Class B weighted average shares, and shares under the if-converted method for diluted earnings per share	70		70
Effect of dilutive securities:
Stock options, restricted stock and performance units	5		5
Tangible equity units	—		5
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	400		416

Net income per share attributable to Tyson:
Class A basic	$	1.18	$	0.77
Class B basic	$	1.09	$	0.71
Diluted	$	1.15	$	0.74

Approximately 2 million and 6 million of our stock-based compensation shares were antidilutive for the three months ended January 2, 2016, and December 27, 2014, respectively. These shares were not included in the diluted 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.