Earnings Per Share

6 Months Ended

Apr. 01, 2017

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				Six Months Ended
	April 1, 2017		April 2, 2016		April 1, 2017		April 2, 2016
Numerator:
Net income	$	341	$	434	$	935	$	895
Less: Net income attributable to noncontrolling interests	1		2		2		2
Net income attributable to Tyson	340		432		933		893
Less dividends declared:
Class A	65		46		151		104
Class B	14		9		33		22
Undistributed earnings	$	261	$	377	$	749	$	767

Class A undistributed earnings	$	215	$	314	$	618	$	641
Class B undistributed earnings	46		63		131		126
Total undistributed earnings	$	261	$	377	$	749	$	767
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	295		318		296		321
Class B weighted average shares, and shares under the if-converted method for diluted earnings per share	70		70		70		70
Effect of dilutive securities:
Stock options, restricted stock and performance units	5		5		5		5
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	370		393		371		396

Net income per share attributable to Tyson:
Class A basic	$	0.95	$	1.14	$	2.59	$	2.32
Class B basic	$	0.86	$	1.02	$	2.35	$	2.11
Diluted	$	0.92	$	1.10	$	2.51	$	2.25

Approximately 2 million of our stock-based compensation shares were antidilutive for each of the three and six months ended April 1, 2017. We had no stock-based compensation shares that were antidilutive for the three months ended April 2, 2016. Approximately 2 million of our stock-based compensation shares were antidilutive for the six months ended April 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.