Earnings Per Share

9 Months Ended

Jul. 02, 2016

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
	July 2, 2016		June 27, 2015		July 2, 2016		June 27, 2015
Numerator:
Net income	$	485	$	344	$	1,380	$	965
Less: Net income attributable to noncontrolling interests	1		1		3		3
Net income attributable to Tyson	484		343		1,377		962
Less dividends declared:
Class A	45		30		149		99
Class B	9		6		31		20
Undistributed earnings	$	430	$	307	$	1,197	$	843

Class A undistributed earnings	$	358	$	258	$	999	$	709
Class B undistributed earnings	72		49		198		134
Total undistributed earnings	$	430	$	307	$	1,197	$	843
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	312		335		318		335
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, restricted stock and performance units	6		5		6		5
Tangible equity units	—		4		—		4
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	388		414		394		414

Net income per share attributable to Tyson:
Class A basic	$	1.29	$	0.86	$	3.61	$	2.41
Class B basic	$	1.17	$	0.78	$	3.28	$	2.20
Diluted	$	1.25	$	0.83	$	3.50	$	2.32

We had no stock-based compensation shares that were antidilutive for each of the three and nine months ended July 2, 2016. Approximately 5 million of our stock-based compensation shares were antidilutive for each of the three and nine months ended June 27, 2015. 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.