Tyson Foods 2013 Annual Report Download - page 54

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54
NOTE 11: EARNINGS PER SHARE
The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:
in millions, except per share data
2013 2012 2011
Numerator:
Income from continuing operations $ 848 $ 614 $ 738
Less: Net loss from continuing operations attributable to noncontrolling interests —(7) (14)
Net income from continuing operations attributable to Tyson 848 621 752
Less dividends declared:
Class A 87 47 49
Class B 19 10 10
Undistributed earnings $ 742 $ 564 $ 693
Class A undistributed earnings $ 606 $ 464 $ 574
Class B undistributed earnings 136 100 119
Total undistributed earnings $ 742 $ 564 $ 693
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares 282 293 303
Class B weighted average shares, and shares under if-converted method for
diluted earnings per share 70 70 70
Effect of dilutive securities:
Stock options and restricted stock 546
Convertible 2013 Notes 731
Warrants 3——
Denominator for diluted earnings per share – adjusted weighted average shares and
assumed conversions 367 370 380
Net Income Per Share from Continuing Operations Attributable to Tyson:
Class A Basic $ 2.46 $ 1.75 $ 2.05
Class B Basic $ 2.22 $ 1.57 $ 1.84
Diluted $ 2.31 $ 1.68 $ 1.98
Net Income Per Share Attributable to Tyson:
Class A Basic $ 2.26 $ 1.64 $ 2.04
Class B Basic $ 2.04 $ 1.48 $ 1.84
Diluted $ 2.12 $ 1.58 $ 1.97
We had no stock-based compensation shares that were antidilutive for fiscal 2013. Approximately 4 million of our stock-based
compensation shares were antidilutive for fiscal 2012 and 2011. These shares were not included in the dilutive 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 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.