Earnings Per Share

3 Months Ended

Dec. 28, 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
	December 28, 2019		December 29, 2018
Numerator:
Net income	$	561	$	552
Less: Net income attributable to noncontrolling interests	4		1
Net income attributable to Tyson	557		551
Less dividends declared:
Class A	137		133
Class B	29		28
Undistributed earnings	$	391	$	390

Class A undistributed earnings	$	322	$	321
Class B undistributed earnings	69		69
Total undistributed earnings	$	391	$	390

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	293		294
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	4		2
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	367		366

Net income per share attributable to Tyson:
Class A basic	$	1.56	$	1.54
Class B basic	$	1.40	$	1.39
Diluted	$	1.52	$	1.50
Dividends Declared Per Share:
Class A	$	0.465	$	0.450
Class B	$	0.419	$	0.405

Approximately 2 million and 4 million of our stock-based compensation shares were antidilutive for the three months ended December 28, 2019 and December 29, 2018, respectively. 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.