Earnings Per Share

3 Months Ended

Jan. 02, 2021

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
	January 2, 2021		December 28, 2019
Numerator:
Net income	$	472	$	509
Less: Net income attributable to noncontrolling interests	5		4
Net income attributable to Tyson	467		505
Less dividends declared:
Class A	138		137
Class B	30		29
Undistributed earnings	$	299	$	339

Class A undistributed earnings	$	246	$	279
Class B undistributed earnings	53		60
Total undistributed earnings	$	299	$	339

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	293		293
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		4

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	365		367





Net income per share attributable to Tyson:
Class A basic	$	1.31	$	1.42
Class B basic	$	1.18	$	1.27
Diluted	$	1.28	$	1.38
Dividends Declared Per Share:
Class A	$	0.470	$	0.465
Class B	$	0.423	$	0.419

Approximately 6 million and 2 million of our stock-based compensation shares were antidilutive for the three months ended January 2, 2021 and December 28, 2019, 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 1.0 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.