Earnings Per Share

9 Months Ended

Jun. 27, 2015

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 27, 2015		June 28, 2014			June 27, 2015		June 28, 2014
Numerator:
Net Income	$	344	$	258		$	965	$	720
Less: Net income (loss) attributable to noncontrolling interests	1		(2		)	3		(7		)
Net income attributable to Tyson	343		260			962		727
Less dividends declared:
Class A	30		21			99		69
Class B	6		5			20		16
Undistributed earnings	$	307	$	234		$	843	$	642

Class A undistributed earnings	$	258	$	190		$	709	$	522
Class B undistributed earnings	49		44			134		120
Total undistributed earnings	$	307	$	234		$	843	$	642
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	335		280			335		275
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		5
Tangible Equity Units	4		—			4		—
Warrants	—		—			—		5
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	414		356			414		355

Net Income Per Share Attributable to Tyson:
Class A Basic	$	0.86	$	0.75		$	2.41	$	2.15
Class B Basic	$	0.78	$	0.68		$	2.20	$	1.94
Diluted	$	0.83	$	0.73		$	2.32	$	2.05

Approximately 5 million of our stock-based compensation shares were antidilutive for the three and nine months ended June 27, 2015. We had no stock-based compensation shares that were anti-dilutive for the three months ended June 28, 2014. Approximately 4 million of our stock-based compensation shares were antidilutive for the nine months ended June 28, 2014. 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.