Earnings Per Share

3 Months Ended

Dec. 31, 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
	December 31, 2016		January 2, 2016
Numerator:
Net income	$	594	$	461
Less: Net income attributable to noncontrolling interests	1		—
Net income attributable to Tyson	593		461
Less dividends declared:
Class A	86		58
Class B	19		13
Undistributed earnings	$	488	$	390

Class A undistributed earnings	$	403	$	327
Class B undistributed earnings	85		63
Total undistributed earnings	$	488	$	390
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	297		325
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	6		5
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	373		400

Net income per share attributable to Tyson:
Class A basic	$	1.64	$	1.18
Class B basic	$	1.49	$	1.09
Diluted	$	1.59	$	1.15

Approximately 2 million of our stock-based compensation shares were antidilutive for the three months ended December 31, 2016, and January 2, 2016. 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.