Earnings Per Share

6 Months Ended

Mar. 30, 2019

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
	March 30, 2019		March 31, 2018		March 30, 2019		March 31, 2018
Numerator:
Net income	$	430	$	316	$	982	$	1,948
Less: Net income attributable to noncontrolling interests	4		1		5		2
Net income attributable to Tyson	426		315		977		1,946
Less dividends declared:
Class A	110		90		243		201
Class B	23		18		51		42
Undistributed earnings	$	293	$	207	$	683	$	1,703

Class A undistributed earnings	$	241	$	171	$	562	$	1,404
Class B undistributed earnings	52		36		121		299
Total undistributed earnings	$	293	$	207	$	683	$	1,703

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	294		296		294		296
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	2		4		2		5
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	366		370		366		371

Net income per share attributable to Tyson:
Class A basic	$	1.20	$	0.88	$	2.74	$	5.42
Class B basic	$	1.07	$	0.78	$	2.46	$	4.87
Diluted	$	1.17	$	0.85	$	2.67	$	5.25
Dividends Declared Per Share:
Class A	$	0.375	$	0.300	$	0.825	$	0.675
Class B	$	0.338	$	0.270	$	0.743	$	0.608

Approximately 3 million and 4 million of our stock-based compensation shares were antidilutive for the three and six months ended March 30, 2019, respectively. Approximately 1 million of our stock-based compensation shares were antidilutive for the three and six months ended March 31, 2018. 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.