Earnings Per Share

12 Months Ended

Oct. 03, 2020

EARNINGS PER SHARE

The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:


	in millions, except per share data
	2020		2019		2018
Numerator:
Net income	$	2,071	$	1,993	$	2,973
Less: Net income attributable to noncontrolling interests	10		13		3
Net income attributable to Tyson	2,061		1,980		2,970
Less dividends declared:
Class A	508		465		378
Class B	108		99		80
Undistributed earnings	$	1,445	$	1,416	$	2,512

Class A undistributed earnings	$	1,189	$	1,166	$	2,070
Class B undistributed earnings	256		250		442
Total undistributed earnings	$	1,445	$	1,416	$	2,512

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	293		293		295
Class B weighted average shares, and shares under if-converted method for diluted earnings per share	70		70		70
Effect of dilutive securities:
Stock options and restricted stock	2		3		4


Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	365		366		369

Net Income Per Share Attributable to Tyson:
Class A Basic	$	5.79	$	5.56	$	8.29
Class B Basic	$	5.21	$	4.99	$	7.46
Diluted	$	5.64	$	5.40	$	8.04
Dividends Declared Per Share:
Class A	$	1.725	$	1.575	$	1.275
Class B	$	1.553	$	1.418	$	1.148

Approximately 2 million of our stock-based compensation shares were antidilutive for fiscal 2020 and approximately 1 million for fiscal 2019 and 2018. These shares were not included in the dilutive 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.