Earnings Per Share

6 Months Ended

Apr. 02, 2022

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				Six Months Ended
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
Numerator:
Net income	$	833	$	477	$	1,959	$	949
Less: Net income attributable to noncontrolling interests	4		1		9		6
Net income attributable to Tyson	829		476		1,950		943
Less dividends declared:
Class A	134		131		274		269
Class B	29		28		59		58
Undistributed earnings	$	666	$	317	$	1,617	$	616

Class A undistributed earnings	$	547	$	261	$	1,329	$	507
Class B undistributed earnings	119		56		288		109
Total undistributed earnings	$	666	$	317	$	1,617	$	616

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	291		293		291		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		3		2

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





Net income per share attributable to Tyson:
Class A basic	$	2.34	$	1.34	$	5.50	$	2.65
Class B basic	$	2.11	$	1.20	$	4.95	$	2.38
Diluted	$	2.28	$	1.30	$	5.35	$	2.58
Dividends Declared Per Share:
Class A	$	0.460	$	0.445	$	0.935	$	0.915
Class B	$	0.414	$	0.401	$	0.842	$	0.824

Approximately 2 million of our stock-based compensation shares were antidilutive for the three and six months ended April 2, 2022. Approximately 5 million of our stock-based compensation shares were antidilutive for the three and six months ended April 3, 2021. 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.