Earnings Per Share

6 Months Ended

Mar. 28, 2020

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
	March 28, 2020		March 30, 2019		March 28, 2020		March 30, 2019
Numerator:
Net income	$	367	$	430	$	928	$	982
Less: Net income attributable to noncontrolling interests	3		4		7		5
Net income attributable to Tyson	364		426		921		977
Less dividends declared:
Class A	124		110		261		243
Class B	26		23		55		51
Undistributed earnings	$	214	$	293	$	605	$	683

Class A undistributed earnings	$	176	$	241	$	498	$	562
Class B undistributed earnings	38		52		107		121
Total undistributed earnings	$	214	$	293	$	605	$	683

Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	293		294		293		294
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	2		2		3		2
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	365		366		366		366

Net income per share attributable to Tyson:
Class A basic	$	1.03	$	1.20	$	2.59	$	2.74
Class B basic	$	0.92	$	1.07	$	2.32	$	2.46
Diluted	$	1.00	$	1.17	$	2.52	$	2.67
Dividends Declared Per Share:
Class A	$	0.420	$	0.375	$	0.885	$	0.825
Class B	$	0.378	$	0.338	$	0.797	$	0.743

Approximately 3 million and 2 million of our stock-based compensation shares were antidilutive for the three and six months ended March 28, 2020, respectively. Approximately 3 million and 4 million of our stock-based compensation shares were antidilutive for the three and six months ended March 30, 2019, 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.