Earnings Per Share

9 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

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 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
Numerator:
Net income	$	73		$	188		$	395		$	638
Less: Net loss attributable to noncontrolling interest	(3		)	(8		)	(3		)	(15		)
Net income attributable to Tyson	76			196			398			653
Less Dividends:
Class A ($0.040/share/quarter)	12			12			36			37
Class B ($0.036/share/quarter)	3			3			8			8
Undistributed earnings	$	61		$	181		$	354		$	608
Class A undistributed earnings	$	50		$	150		$	292		$	504
Class B undistributed earnings	11			31			62			104
Total undistributed earnings	$	61		$	181		$	354		$	608
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	291			304			294			305
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 and restricted stock	5			6			5			6
Convertible 2013 Notes	3			3			4			1
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	369			383			373			382
Net Income Per Share Attributable to Tyson:
Class A Basic	$	0.21		$	0.53		$	1.11		$	1.77
Class B Basic	$	0.19		$	0.48		$	1.00		$	1.60
Diluted	$	0.21		$	0.51		$	1.07		$	1.71

Approximately 4 million of our stock-based compensation shares were antidilutive for both the three and nine months ended June 30, 2012, and approximately 4 million of our stock-based compensation shares were antidilutive for both the three and nine months ended July 2, 2011. 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.