Earnings Per Share

9 Months Ended

Jun. 29, 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				Nine Months Ended
	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
Numerator:
Net income	$	681	$	542	$	1,663	$	2,490
Less: Net income attributable to noncontrolling interests	5		1		10		3
Net income attributable to Tyson	676		541		1,653		2,487
Less dividends declared:
Class A	110		88		353		289
Class B	25		19		76		61
Undistributed earnings	$	541	$	434	$	1,224	$	2,137

Class A undistributed earnings	$	446	$	358	$	1,008	$	1,762
Class B undistributed earnings	95		76		216		375
Total undistributed earnings	$	541	$	434	$	1,224	$	2,137

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	293		295		293		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	4		4		3		4
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	367		369		366		370

Net income per share attributable to Tyson:
Class A basic	$	1.90	$	1.52	$	4.64	$	6.94
Class B basic	$	1.71	$	1.37	$	4.17	$	6.24
Diluted	$	1.84	$	1.47	$	4.51	$	6.72
Dividends Declared Per Share:
Class A	$	0.375	$	0.300	$	1.200	$	0.975
Class B	$	0.338	$	0.270	$	1.081	$	0.878

Approximately 1 million and 3 million of our stock-based compensation shares were antidilutive for the three and nine months ended June 29, 2019, respectively. Approximately 1 million of our stock-based compensation shares were antidilutive for the three and nine months ended June 30, 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.