Earnings Per Share

3 Months Ended

Dec. 29, 2018

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 29, 2018		December 30, 2017
Numerator:
Net income	$	552	$	1,632
Less: Net income attributable to noncontrolling interests	1		1
Net income attributable to Tyson	551		1,631
Less dividends declared:
Class A	133		111
Class B	28		24
Undistributed earnings	$	390	$	1,496

Class A undistributed earnings	$	321	$	1,233
Class B undistributed earnings	69		263
Total undistributed earnings	$	390	$	1,496
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	294		296
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	2		5
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	366		371

Net income per share attributable to Tyson:
Class A basic	$	1.54	$	4.54
Class B basic	$	1.39	$	4.09
Diluted	$	1.50	$	4.40
Dividends Declared Per Share:
Class A	$	0.450	$	0.375
Class B	$	0.405	$	0.338

Approximately 4 million of our stock-based compensation shares were antidilutive for the three months ended December 29, 2018 and approximately 1 million for the three months ended December 30, 2017. 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.