Earnings Per Share

9 Months Ended

Jul. 01, 2017

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
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Numerator:
Net income	$	448	$	485	$	1,383	$	1,380
Less: Net income attributable to noncontrolling interests	1		1		3		3
Net income attributable to Tyson	447		484		1,380		1,377
Less dividends declared:
Class A	66		45		217		149
Class B	14		9		47		31
Undistributed earnings	$	367	$	430	$	1,116	$	1,197
Class A undistributed earnings	$	302	$	358	$	920	$	999
Class B undistributed earnings	65		72		196		198
Total undistributed earnings	$	367	$	430	$	1,116	$	1,197
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	296		312		296		318
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	4		6		5		6
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	370		388		371		394
Net income per share attributable to Tyson:
Class A basic	$	1.24	$	1.29	$	3.84	$	3.61
Class B basic	$	1.12	$	1.17	$	3.47	$	3.28
Diluted	$	1.21	$	1.25	$	3.72	$	3.50

Approximately 1 million of our stock-based compensation shares were antidilutive for each of the three and nine months ended July 1, 2017. We had no stock-based compensation shares that were antidilutive for the three and nine months ended July 2, 2016.

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.