Earnings Per Share

9 Months Ended

Jul. 03, 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				Nine Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Numerator:
Net income	$	753	$	526	$	1,702	$	1,414
Less: Net income attributable to noncontrolling interests	4		—		10		7
Net income attributable to Tyson	749		526		1,692		1,407
Less dividends declared:
Class A	132		124		401		385
Class B	28		27		86		82
Undistributed earnings	$	589	$	375	$	1,205	$	940

Class A undistributed earnings	$	485	$	309	$	992	$	774
Class B undistributed earnings	104		66		213		166
Total undistributed earnings	$	589	$	375	$	1,205	$	940

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	293		292		293		293
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	3		2		2		3

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	366		364		365		366





Net income per share attributable to Tyson:
Class A basic	$	2.11	$	1.48	$	4.76	$	3.96
Class B basic	$	1.89	$	1.33	$	4.27	$	3.55
Diluted	$	2.05	$	1.44	$	4.63	$	3.85
Dividends Declared Per Share:
Class A	$	0.445	$	0.420	$	1.360	$	1.305
Class B	$	0.400	$	0.378	$	1.224	$	1.175

Approximately 2 million and 4 million of our stock-based compensation shares were antidilutive for the three and nine months ended July 3, 2021. Approximately 4 million and 3 million of our stock-based compensation shares were antidilutive for the three and nine months ended June 27, 2020, 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.