Earnings Per Share

6 Months Ended

Apr. 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				Six Months Ended
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Numerator:
Net income	$	477	$	379	$	949	$	888
Less: Net income attributable to noncontrolling interests	1		3		6		7
Net income attributable to Tyson	476		376		943		881
Less dividends declared:
Class A	131		124		269		261
Class B	28		26		58		55
Undistributed earnings	$	317	$	226	$	616	$	565

Class A undistributed earnings	$	261	$	186	$	507	$	465
Class B undistributed earnings	56		40		109		100
Total undistributed earnings	$	317	$	226	$	616	$	565

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





Net income per share attributable to Tyson:
Class A basic	$	1.34	$	1.06	$	2.65	$	2.48
Class B basic	$	1.20	$	0.95	$	2.38	$	2.22
Diluted	$	1.30	$	1.03	$	2.58	$	2.41
Dividends Declared Per Share:
Class A	$	0.445	$	0.420	$	0.915	$	0.885
Class B	$	0.401	$	0.378	$	0.824	$	0.797

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