10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 1, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 001-09225

H.B. FULLER COMPANY

(Exact name of registrant as specified in its charter)

Minnesota	41-0268370
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1200 Willow Lake Boulevard, St. Paul, Minnesota	55110-5101
(Address of principal executive offices)	(Zip Code)

(651) 236-5900

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

The number of shares outstanding of the Registrant’s Common Stock, par value $1.00 per share, was 50,222,384 as of June 20, 2013.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

H.B. FULLER COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

	13 Weeks Ended						26 Weeks Ended
	June 1,			June 2,			June 1,			June 2,
	2013			2012			2013			2012
Net revenue	$	519,016		$	526,995		$	998,858		$	872,449
Cost of sales		(372,400	)		(390,444	)		(718,866	)		(633,211	)
Gross profit		146,616			136,551			279,992			239,238
Selling, general and administrative expenses		(93,806	)		(92,956	)		(191,446	)		(167,986	)
Special charges, net		(10,843	)		(32,127	)		(16,176	)		(38,609	)
Asset impairment charges		—			(671	)		—			(671	)
Other income (expense), net		(1,814	)		231			(1,436	)		648
Interest expense		(4,884	)		(5,749	)		(10,211	)		(8,367	)
Income from continuing operations before income taxes and income from equity method investments		35,269			5,279			60,723			24,253
Income taxes		(10,864	)		(2,367	)		(17,984	)		(9,930	)
Income from equity method investments		1,643			2,148			4,083			4,344
Income from continuing operations		26,048			5,060			46,822			18,667
Income (loss) from discontinued operations, net of tax		—			(3,053	)		—			(1,330	)
Net income including non-controlling interests		26,048			2,007			46,822			17,337
Net (income) loss attributable to non-controlling interests		(119	)		(71	)		(216	)		(96	)
Net income attributable to H.B. Fuller	$	25,929		$	1,936		$	46,606		$	17,241
Earnings per share attributable to H.B. Fuller common stockholders:
Basic
Income from continuing operations		0.52			0.10			0.93			0.38
Income (loss) from discontinued operations		—			(0.06	)		—			(0.03	)
Basic earnings per share	$	0.52		$	0.04		$	0.93		$	0.35
Diluted
Income from continuing operations		0.51			0.10			0.91			0.37
Income (loss) from discontinued operations		—			(0.06	)		—			(0.03	)
Diluted earnings per share	$	0.51		$	0.04		$	0.91		$	0.34
Weighted-average common shares outstanding:
Basic		49,935			49,652			49,876			49,509
Diluted		51,152			50,722			51,090			50,488
Dividends declared per common share	$	0.100		$	0.085		$	0.185		$	0.160

See accompanying Notes to Condensed Consolidated Financial Statements.

2

H.B. FULLER COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(Unaudited)

	13 Weeks Ended						26 Weeks Ended
	June 1,			June 2,			June 1,			June 2,
	2013			2012			2013			2012
Net income including non-controlling interests	$	26,048		$	2,007		$	46,822		$	17,337
Other comprehensive income
Foreign currency translation		(5,647	)		(27,599	)		(9,109	)		(25,699	)
Defined benefit pension plans adjustment, net of tax		1,965			1,046			3,941			2,176
Interest rate swaps, net of tax		10			10			20			20
Cash-flow hedges, net of tax		(21	)		(855	)		189			(855	)
Other comprehensive income (loss)		(3,693	)		(27,398	)		(4,959	)		(24,358	)
Comprehensive income (loss)		22,355			(25,391	)		41,863			(7,021	)
Less: Comprehensive income attributable to non-controlling interests		73			65			177			96
Comprehensive income (loss) attributable to H.B. Fuller	$	22,282		$	(25,456	)	$	41,686		$	(7,117	)

See accompanying Notes to Condensed Consolidated Financial Statements.

3

H.B. FULLER COMPANY AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

(Unaudited)

	June 1,			December 1,
	2013			2012
Assets
Current assets:
Cash and cash equivalents	$	161,185		$	200,436
Trade receivables (net of allowances—$8,748 and $7,513, for June 1, 2013 and December 1, 2012, respectively)		317,048			320,152
Inventories		222,381			208,531
Other current assets		83,557			70,225
Current assets of discontinued operations		1,865			—
Total current assets		786,036			799,344
Property, plant and equipment		942,995			907,720
Accumulated depreciation		(589,873	)		(578,704	)
Property, plant and equipment, net		353,122			329,016
Goodwill		252,475			254,345
Other intangibles, net		223,630			233,355
Other assets		158,590			168,395
Long-term assets of discontinued operations		—			1,865
Total assets	$	1,773,853		$	1,786,320
Liabilities, redeemable non-controlling interest and total equity
Current liabilities:
Notes payable	$	15,749		$	22,613
Current maturities of long-term debt		7,500			22,500
Trade payables		166,664			163,062
Accrued compensation		59,317			71,400
Income taxes payable		17,928			24,865
Other accrued expenses		43,476			45,605
Current liabilities of discontinued operations		5,000			74
Total current liabilities		315,634			350,119
Long-term debt, excluding current maturities		473,159			475,112
Accrued pension liabilities		98,649			105,220
Other liabilities		65,664			68,190
Long-term liabilities of discontinued operations		—			5,000
Total liabilities		953,106			1,003,641
Commitments and contingencies		—			—
Redeemable non-controlling interest		3,948			3,981
Equity:
H.B. Fuller stockholders’ equity:
Preferred stock (no shares outstanding) Shares authorized – 10,045,900		—			—
Common stock, par value $1.00 per share, Shares authorized – 160,000,000, Shares outstanding – 50,222,838 and 49,903,266, for June 1, 2013 and December 1, 2012, respectively		50,223			49,903
Additional paid-in capital		43,461			37,965
Retained earnings		867,270			830,031
Accumulated other comprehensive income (loss)		(144,546	)		(139,626	)
Total H.B. Fuller stockholders’ equity		816,408			778,273
Non-controlling interests		391			425
Total equity		816,799			778,698
Total liabilities, redeemable non-controlling interest and total equity	$	1,773,853		$	1,786,320

See accompanying Notes to Condensed Consolidated Financial Statements.

4

H.B. FULLER COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Total Equity

(In thousands)

(Unaudited)

	H.B. Fuller Company Shareholders
	Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Non- Controlling Interests			Total
Balance at December 3, 2011	$	49,450		$	23,770		$	720,989		$	(89,005	)	$	373		$	705,577
Net income including non-controlling interests								125,622						233			125,855
Foreign currency translation											(2,985	)		28			(2,957	)
Defined benefit pension plans adjustment, net of tax of $26,075											(47,283	)					(47,283	)
Interest rate swap, net of tax											41						41
Cash-flow hedges, net of tax											(394	)					(394	)
Comprehensive income																	75,262
Dividends								(16,580	)								(16,580	)
Stock option exercises		426			6,975												7,401
Share-based compensation plans other, net		181			10,136												10,317
Excess tax benefit on share-based compensation					1,263												1,263
Repurchases of common stock		(154	)		(4,179	)											(4,333	)
Redeemable non-controlling interest														(209	)		(209	)
Balance at December 1, 2012		49,903			37,965			830,031			(139,626	)		425			778,698
Net income including non-controlling interests								46,606						216			46,822
Foreign currency translation											(9,070	)		(39	)		(9,109	)
Defined benefit pension plans adjustment, net of tax of $(2,126)											3,941						3,941
Interest rate swap, net of tax											20						20
Cash-flow hedges, net of tax											189						189
Comprehensive income																	41,863
Dividends								(9,367	)								(9,367	)
Stock option exercises		236			4,135												4,371
Share-based compensation plans other, net		271			6,249												6,520
Excess tax benefit on share-based compensation					2,029												2,029
Repurchases of common stock		(187	)		(6,917	)											(7,104	)
Redeemable non-controlling interest														(211	)		(211	)
Balance at June 1, 2013	$	50,223		$	43,461		$	867,270		$	(144,546	)	$	391		$	816,799

See accompanying Notes to Condensed Consolidated Financial Statements.

5

H.B. FULLER COMPANY AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	26 Weeks Ended
	June 1, 2013			June 2, 2012
Cash flows from operating activities from continuing operations:
Net income including non-controlling interests	$	46,822		$	17,337
(Income) loss from discontinued operations, net of tax		—			1,330
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities from continuing operations:
Depreciation		18,887			18,030
Amortization		11,101			7,969
Deferred income taxes		(428	)		1,393
(Income) from equity method investments, net of dividends received		4,984			(4,344	)
Share-based compensation		6,215			5,012
Excess tax benefit from share-based compensation		(2,029	)		(1,039	)
Non-cash charge for the sale of inventories revalued at the date of acquisition		—			3,314
Asset impairment charges		—			671
Change in assets and liabilities, net of effects of acquisitions and discontinued operations:
Trade receivables, net		1,152			(19,725	)
Inventories		(16,950	)		(26,764	)
Other assets		(8,959	)		15,944
Trade payables		1,046			11,780
Accrued compensation		(11,951	)		7,467
Other accrued expenses		(1,888	)		(721	)
Income taxes payable		(8,231	)		362
Accrued / prepaid pensions		(1,499	)		(4,188	)
Other liabilities		(4,280	)		4,180
Other		6,719			(3,198	)
Net cash provided by operating activities from continuing operations		40,711			34,810
Cash flows from investing activities from continuing operations:
Purchased property, plant and equipment		(48,039	)		(12,504	)
Purchased businesses		1,625			(404,725	)
Purchased technology		(2,387	)		—
Proceeds from sale of property, plant and equipment		353			352
Net cash used in investing activities from continuing operations		(48,448	)		(416,877	)
Cash flows from financing activities from continuing operations:
Proceeds from long-term debt		95,000			490,000
Repayment of long-term debt		(110,000	)		(103,125	)
Net proceeds (repayments) from notes payable		(5,807	)		(3,774	)
Dividends paid		(9,294	)		(7,968	)
Distribution to redeemable non-controlling interest		(244	)		—
Proceeds from stock options exercised		4,371			6,031
Excess tax benefit from share-based compensation		2,029			1,039
Repurchases of common stock		(7,104	)		(1,295	)
Net cash provided by (used in) financing activities from continuing operations		(31,049	)		380,908
Effect of exchange rate changes		(391	)		(6,030	)
Net change in cash and cash equivalents from continuing operations		(39,177	)		(7,189	)
Cash provided by (used in) operating activities of discontinued operations		(74	)		6,047
Cash provided by investing activities of discontinued operations		—			792
Net change in cash and cash equivalents		(39,251	)		(350	)
Cash and cash equivalents at beginning of period		200,436			154,649
Cash and cash equivalents at end of period	$	161,185		$	154,299
Supplemental disclosure of cash flow information:
Dividends paid with company stock	$	73		$	58
Cash paid for interest, net of amount capitalized of $443 and $13 for the periods ended June 1, 2013 and June 2, 2012, respectively	$	11,999		$	7,338
Cash paid for income taxes, net of refunds	$	20,406		$	2,953

See accompanying Notes to Condensed Consolidated Financial Statements.

6

H.B. FULLER COMPANY AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Amounts in thousands, except share and per share amounts)

(Unaudited)

Note 1: Accounting Policies

The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a fair presentation of results of operations, financial position, and cash flows in conformity with U.S. generally accepted accounting principles. In our opinion, the unaudited interim Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary for the fair presentation of the results for the periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from these estimates. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 1, 2012 as filed with the Securities and Exchange Commission.

Recently Adopted Accounting Pronouncements:

In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05, “Presentation of Comprehensive Income.” These updates require entities to present items of net income and other comprehensive income either in a single continuous statement, or in separate, but consecutive, statements of net income and other comprehensive income. The new requirements do not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. The updates are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retroactively. We adopted the new requirements in the first quarter of our 2013 fiscal year. The adoption of these updates did not have an impact on our condensed consolidated results of operations or financial condition.

New Accounting Pronouncements:

In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income: Reporting of Amounts Reclassified out of AOCI” which further amended the disclosure requirements for comprehensive income. The update requires entities to disclose items reclassified out of accumulated other comprehensive income (AOCI) and into net income in a single location either in the notes to the condensed consolidated financial statements or parenthetically on the face of the condensed consolidated statements of income. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012 which is our fiscal year 2014 and is to be applied prospectively. Since this standard impacts disclosure requirements only, its adoption will not have a material impact on our condensed consolidated results of operations or financial condition.

Note 2: Acquisitions and Divestitures

Acquisitions

Engent, Inc.: On September 10, 2012 we acquired the outstanding shares of Engent, Inc., a provider of manufacturing, research and development services to the electronics industry. The purchase price of $7,881 was funded through existing cash and was recorded in our North America Adhesives operating segment.

In addition to the initial consideration, the former owners of the Engent, Inc. business are entitled to receive a series of annual cash payments based on certain financial performance criteria during the period September 10, 2012 through November 28, 2015 up to a maximum additional consideration of $2,000. We used a probability-weighted present value technique based on expected future cash flows to estimate the fair value of the contingent consideration. The resulting fair value of the contingent consideration was $1,200 which was recorded in other liabilities and increased goodwill. Each reporting period we determine the fair value of the contingent consideration liability and any changes in value are reflected in the Condensed Consolidated Statements of Income.

7

The following table summarizes the final fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition:

	Preliminary Valuation December 1, 2012			Fair Value Adjustments			Final Valuation
Current assets	$	603		$	—		$	603
Property, plant and equipment		1,471			—			1,471
Goodwill		5,434			247			5,681
Other intangibles
Customer relationships		2,300			—			2,300
Noncompetition agreements		400			—			400
Trademarks/trade names		300			—			300
Other assets		325			(305	)		20
Current liabilities		(84	)		(6	)		(90	)
Other liabilities		(1,668	)		64			(1,604	)
Contingent consideration liabilities		(1,200	)		—			(1,200	)
Total purchase price	$	7,881		$	—		$	7,881

The adjustments to the purchase price allocation primarily relate to non-current deferred tax assets and liabilities.

Forbo Industrial Adhesives. On March 5, 2012 we completed the acquisition of the global industrial adhesives and synthetic polymers business of Forbo Holding AG. The purchase price was 368,514 Swiss francs or $403,100 which we financed with the proceeds from our March 5, 2012 note purchase agreement and a term loan.

As of March 5, 2013, we completed our final purchase price allocation including final tax adjustments. The following table summarizes the fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition:

	Preliminary Valuation December 1, 2012			Purchase Price and Fair Value Adjustments			Final Valuation
Current assets	$	172,345		$	—		$	172,345
Property, plant and equipment		92,443			—			92,443
Goodwill		136,658			343			137,001
Other intangibles
Developed technology		42,190			—			42,190
Customer relationships		58,910			—			58,910
Trademarks/trade names		21,880			—			21,880
Other		479			—			479
Other assets		4,605			—			4,605
Current liabilities		(84,251	)		(184	)		(84,435	)
Other liabilities		(40,534	)		(1,784	)		(42,318	)
Total purchase price	$	404,725		$	(1,625	)	$	403,100

The adjustments to the purchase price allocation primarily relate to non-current deferred tax liabilities and purchase price adjustments.

8

Divestitures

Central America Paints. On August 6, 2012 we completed the sale of our Central America Paints business to Compania Global de Pinturas S.A., a company of Inversiones Mundial S.A for cash proceeds of $118,566. In accordance with ASC 205-20 “Discontinued Operations”, we have classified the results of this business as discontinued operations. The operational results of this business are presented in the “Income from discontinued operations, net of tax” line item on the Condensed Consolidated Statements of Income. Also in accordance with ASC 205-20, we have not allocated general corporate charges to this business. The assets and liabilities of this business are presented on the Condensed Consolidated Balance Sheets as assets and liabilities of discontinued operations.

Revenue and income (loss) from discontinued operations for the period ended June 2, 2012 were as follows:

	13 Weeks Ended			26 Weeks Ended
	June 2, 2012			June 2, 2012
Net revenue	$	26,321		$	56,129
Income from operations		3,819			6,662
Income taxes		(6,872	)		(7,992	)
Net income (loss) from discontinued operations	$	(3,053	)	$	(1,330	)

The major classes of assets and liabilities of discontinued operations as of June 1, 2013 and December 1, 2012 were as follows:

	June 1, 2013		December 1, 2012
Other current assets		1,865		—
Current assets of discontinued operations		1,865		—
Other assets		—		1,865
Long-term assets of discontinued operations		—		1,865
Trade payables		—		74
Other accrued expenses		5,000		—
Current liabilities of discontinued operations		5,000		74
Other liabilities		—		5,000
Long-term liabilities of discontinued operations		—		5,000

Note 3: Accounting for Share-Based Compensation

Overview: We have various share-based compensation programs, which provide for equity awards including stock options, restricted stock shares, restricted stock units and deferred compensation. These equity awards fall under several plans and are described in detail in our Annual Report filed on Form 10-K as of December 1, 2012.

Grant-Date Fair Value: We use the Black-Scholes option-pricing model to calculate the grant-date fair value of an award. The fair value of options granted during the 13 weeks and 26 weeks ended June 1, 2013 and June 2, 2012 were calculated using the following weighted average assumptions:

	13 Weeks Ended						26 Weeks Ended
	June 1, 2013			June 2, 2012			June 1, 2013	June 2, 2012
Expected life (in years)		4.75			4.75		4.75	4.75
Weighted-average expected volatility		47.65	%		51.29	%	48.00%	51.76%
Expected volatility		47.65	%		51.29	%	47.65% – 48.02%	51.29% – 51.76%
Risk-free interest rate		0.69	%		0.84	%	0.73%	0.71%
Expected dividend yield		1.04	%		1.02	%	0.87%	1.06%
Weighted-average fair value of grants	$	14.27		$	12.97		$15.09	$11.43

9

Expected life – We use historical employee exercise and option expiration data to estimate the expected life assumption for the Black-Scholes grant-date valuation. We believe that this historical data is currently the best estimate of the expected term of a new option. We use a weighted-average expected life for all awards.

Expected volatility – Volatility is calculated using our historical volatility for the same period of time as the expected life. We have no reason to believe that our future volatility will differ materially from the past.

Risk-free interest rate – The rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the same period of time as the expected life.

Expected dividend yield – The calculation is based on the total expected annual dividend payout divided by the average stock price.

Expense Recognition: We use the straight-line attribution method to recognize share-based compensation expense for option awards with graded vesting and restricted stock share and restricted stock units with graded and cliff vesting. The amount of share-based compensation expense recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest.

Total share-based compensation expense of $2,895 and $2,217 was included in our Condensed Consolidated Statements of Income for the 13 weeks ended June 1, 2013 and June 2, 2012, respectively. Total share-based compensation expense of $6,215 and $5,012 was included in our Condensed Consolidated Statements of Income for the 26 weeks ended June 1, 2013 and June 2, 2012, respectively. All share-based compensation expense was recorded as selling, general and administrative expense. For the 13 weeks ended June 1, 2013 and June 2, 2012 there was $225 and $158 of excess tax benefit recognized, respectively. For the 26 weeks ended June 1, 2013 and June 2, 2012 there was $2,029 and $1,039 of excess tax benefit recognized, respectively.

As of June 1, 2013, there was $9,794 of unrecognized compensation costs related to unvested stock option awards, which is expected to be recognized over a weighted-average period of 1.9 years. Unrecognized compensation costs related to unvested restricted stock shares was $9,364 and unvested restricted stock units was $2,914, both of which are expected to be recognized over a weighted-average period of 1.6 years.

Share-based Activity

A summary of option activity as of June 1, 2013 and changes during the 26 weeks then ended is presented below:

				Weighted-
				Average
	Options			Exercise Price
Outstanding at December 1, 2012		2,429,750		$	21.63
Granted		452,229			39.58
Exercised		(236,277	)		18.50
Forfeited or cancelled		(11,902	)		24.43
Outstanding at June 1, 2013		2,633,800		$	24.98

The total fair values of options granted during the 13 weeks ended June 1, 2013 and June 2, 2012 were $277 and $61, respectively. Total intrinsic values of options exercised during the 13 weeks ended June 1, 2013 and June 2, 2012 were $533 and $549, respectively. Intrinsic value is the difference between our closing stock price on the respective trading day and the exercise price, multiplied by the number of options exercised. The total fair values of options granted during the 26 weeks ended June 1, 2013 and June 2, 2012 were $6,823 and $5,842, respectively. Total intrinsic values of options exercised during the 26 weeks ended June 1, 2013 and June 2, 2012 were $4,770 and $4,087, respectively. Proceeds received from option exercises during the 13 weeks ended June 1, 2013 and June 2, 2012 were $597 and $806, respectively and $4,371 and $6,031 during the 26 weeks ended June 1, 2013 and June 2, 2012, respectively.

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A summary of nonvested restricted stock as of June 1, 2013 and changes during the 26 weeks then ended is presented below:

												Weighted-
										Weighted-		Average
										Average		Remaining
										Grant		Contractual
										Date Fair		Life
	Units			Shares			Total			Value		(in Years)
Nonvested at December 1, 2012		141,184			245,231			386,415		$	25.41		0.9
Granted		62,701			183,752			246,453			39.60		2.1
Vested		(64,112	)		(109,424	)		(173,536	)		37.75		—
Forfeited		(357	)		(1,291	)		(1,648	)		28.76		1.5
Nonvested at June 1, 2013		139,416			318,268			457,684		$	33.57		1.6

Total fair values of restricted stock vested during the 13 weeks ended June 1, 2013 and June 2, 2012 were $278 and $228, respectively. Total fair values of restricted stock vested during the 26 weeks ended June 1, 2013 and June 2, 2012 were $6,550 and $4,439, respectively. The total fair value of nonvested restricted stock at June 1, 2013 was $12,278.

We repurchased 1,972 and 2,331 restricted stock shares during the 13 weeks ended June 1, 2013 and June 2, 2012, respectively and 61,624 and 52,975 restricted stock shares during the 26 weeks ended June 1, 2013 and June 2, 2012, respectively. The repurchases relate to statutory minimum tax withholding.

We have a Directors’ Deferred Compensation plan that allows non-employee directors to defer all or a portion of their retainer and meeting fees in a number of investment choices, including units representing shares of our common stock. We also have a Key Employee Deferred Compensation Plan that allows key employees to defer a portion of their eligible compensation in a number of investment choices, including units, representing shares of our common stock. We provide a 10 percent match on deferred compensation invested into units, representing shares of our common stock. A summary of deferred compensation units as of June 1, 2013, and changes during the 26 weeks then ended is presented below:

	Non-employee
	Directors			Employees			Total
Units outstanding December 1, 2012		338,769			68,662			407,431
Participant contributions		7,258			1,468			8,726
Company match contributions		807			163			970
Payouts		(18,564	)		(4,647	)		(23,211	)
Units outstanding June 1, 2013		328,270			65,646			393,916

Deferred compensation units are fully vested at the date of contribution.

Note 4: Earnings Per Share

A reconciliation of the common share components for the basic and diluted earnings per share calculations follows:

	13 Weeks Ended				26 Weeks Ended
	June 1,		June 2,		June 1,		June 2,
(Shares in thousands)	2013		2012		2013		2012
Weighted-average common shares—basic		49,935		49,652		49,876		49,509
Equivalent shares from share-based compensations plans		1,217		1,070		1,214		979
Weighted-average common and common equivalent shares—diluted		51,152		50,722		51,090		50,488

Basic earnings per share is calculated by dividing net income attributable to H.B. Fuller by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is based upon the weighted-average number of common and common equivalent shares outstanding during the applicable period. The difference between basic and diluted earnings per share is attributable to share-based compensation awards. We use the treasury stock method to calculate the effect of outstanding shares, which computes total employee proceeds as

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the sum of (a) the amount the employee must pay upon exercise of the award, (b) the amount of unearned share-based compensation costs attributed to future services and (c) the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the award. Share-based compensation awards for which total employee proceeds exceed the average market price over the applicable period have an antidilutive effect on earnings per share, and accordingly, are excluded from the calculation of diluted earnings per share.

Our June 1, 2013 and March 2, 2013 stock prices were higher than any of our stock option grant prices at that time, therefore no option shares were excluded from the diluted earnings per share calculations for the first two quarters of 2013. Options to purchase 4,652 shares of common stock at a weighted-average exercise price of $32.32 for the 13 weeks and 26 weeks ended June 2, 2012, were excluded from the diluted earnings per share calculations because they were antidilutive.

Note 5: Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) follow:

	June 1, 2013
	Total			H.B. Fuller Stockholders			Non-controlling Interests
Foreign currency translation adjustment	$	41,693		$	41,684		$	9
Interest rate swap, net of taxes of $45		(115	)		(115	)		—
Cash-flow hedges, net of taxes of $129		(205	)		(205	)		—
Defined benefit pension plans adjustment, net of taxes of $101,535		(185,910	)		(185,910	)		—
Total accumulated other comprehensive income (loss)	$	(144,537	)	$	(144,546	)	$	9

	December 1, 2012
	Total			H.B. Fuller Stockholders			Non-controlling Interests
Foreign currency translation adjustment	$	50,802		$	50,754		$	48
Interest rate swap, net of taxes of $52		(135	)		(135	)		—
Cash-flow hedges, net of taxes of $248		(394	)		(394	)		—
Defined benefit pension plans adjustment, net of taxes of $103,661		(189,851	)		(189,851	)		—
Total accumulated other comprehensive income (loss)	$	(139,578	)	$	(139,626	)	$	48

Note 6: Special Charges, net

The integration of the Forbo industrial adhesives business we acquired in March 2012 involves a significant amount of restructuring and capital investment to optimize the new combined entity. In addition, we are taking a series of actions in our existing EIMEA operating segment to improve the profitability and future growth prospects of this operating segment. We have combined these two initiatives into a single project which we refer to as the “Business Integration Project”. During the 13 weeks ended June 1, 2013 and June 2, 2012, we incurred special charges, net of $10,843 and $32,127, respectively and $16,176 and $38,609 for the 26 weeks ended June 1, 2013 and June 2, 2012, respectively, for costs related to the Business Integration Project.

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The following table provides detail of special charges, net:

	13 Weeks Ended				26 Weeks Ended
	June 1, 2013		June 2, 2012		June 1, 2013		June 2, 2012
Acquisition and transformation related costs:
Professional services	$	1,884	$	11,087	$	4,166	$	19,514
Financing availability costs		—		—		—		4,300
Foreign currency option contract		—		—		—		841
Loss (gain) on foreign currency forward contracts		—		4		—		(11,621	)
Other related costs		1,995		316		2,773		557
Restructuring costs:
Workforce reduction costs		3,697		19,567		4,181		23,522
Facility exit costs		3,267		1,153		5,056		1,496
Special charges, net	$	10,843	$	32,127	$	16,176	$	38,609

Professional services of $1,884 for the 13 weeks ended June 1, 2013 and $11,087 for the 13 weeks ended June 2, 2012, include costs related to organization consulting, investment advisory, financial advisory, legal and valuation services necessary to acquire and integrate the Forbo industrial adhesives business into our existing operating segments. For the 26 weeks ended June 1, 2013 and June 2, 2012 we incurred professional services costs of $4,166 and $19,514, respectively. For the 26 weeks ended 2012, we also incurred other costs related to the acquisition of the Forbo industrial adhesives business including an expense of $4,300 to make a bridge loan available if needed and an expense of $841 related to the purchase of a foreign currency option to hedge a portion of the acquisition purchase price. Also during the first quarter of 2012, we entered into forward currency contracts maturing on March 5, 2012 to purchase 370,000 Swiss francs. Our objective was to economically hedge the purchase price for the pending acquisition of the global industrial adhesives business of Forbo Group after the price was established. The currency contracts were not designated as hedges for accounting purposes. For the 26 weeks ended June 2, 2012, the net gain on the forward currency contracts was $11,621 which partially offset other acquisition and transformation related costs.

During the 13 weeks ended June 1, 2013, we incurred workforce reduction costs of $3,697, other related costs of $1,995, cash facility exit costs of $2,316 and non-cash facility exit costs of $951 related to the Business Integration Project. During the 26 weeks ended June 1, 2013, we incurred workforce reduction costs of $4,181, other related costs of $2,773, cash facility exit costs of $3,714 and non-cash facility exit costs of $1,342 related to the Business Integration Project. During the 13 weeks and 26 weeks ended June 2, 2012, we incurred workforce reduction costs of $19,567 and $23,522, respectively, other related costs of $316 and $557, respectively and non-cash facility exit costs of $1,153 and $1,496, respectively related to the Business Integration Project.

For the 26 weeks ended June 1, 2013, the activity in accrued compensation associated with the Business Integration Project, is as follows:

	Workforce Reduction Costs
Balance at December 1, 2012	$	19,848
Restructuring charges		4,181
Cash payments		(5,994	)
Foreign currency translation adjustment		(92	)
Balance at June 1, 2013	$	17,943

Of the $17,943 in accrued restructuring costs at June 1, 2013, $17,380 was included in accrued compensation and $563 was included in other liabilities on our Condensed Consolidated Balance Sheets as this portion is not expected to be paid within the next year. In Europe, the accrued restructuring charges included statutory minimum amounts for one site for which final agreement has not been reached with the works council and communicated to the affected employees as well as amounts being accrued ratably for four sites in which works council agreements have been reached. At the communication date to employees, final termination benefits will be measured and will be recognized ratably over the service period employees are required to work to be eligible for termination benefits. In North America and Asia, the benefits were accrued based primarily on the formal severance plans in place for the various locations. The restructuring costs are not allocated to our operating segments.

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Note 7: Components of Net Periodic Cost (Benefit) related to Pension and Other Postretirement Benefit Plans

	13 Weeks Ended June 1, 2013 and June 2, 2012
													Other
	Pension Benefits												Postretirement
	U.S. Plans						Non-U.S. Plans						Benefits
Net periodic cost (benefit):	2013			2012			2013			2012			2013			2012
Service cost	$	27		$	22		$	416		$	329		$	156		$	135
Interest cost		3,680			4,024			1,820			2,165			533			617
Expected return on assets		(5,680	)		(5,938	)		(2,318	)		(2,136	)		(931	)		(816	)
Amortization:
Prior service cost		12			12			(1	)		(1	)		(1,034	)		(1,173	)
Actuarial (gain)/ loss		1,685			964			935			634			1,429			1,283
Net periodic cost (benefit)	$	(276	)	$	(916	)	$	852		$	991		$	153		$	46

	26 Weeks Ended June 1, 2013 and June 2, 2012
													Other
	Pension Benefits												Postretirement
	U.S. Plans						Non-U.S. Plans						Benefits
Net periodic cost (benefit):	2013			2012			2013			2012			2013			2012
Service cost	$	54		$	44		$	839		$	589		$	312		$	270
Interest cost		7,360			8,048			3,689			3,894			1,066			1,234
Expected return on assets		(11,360	)		(11,876	)		(4,700	)		(3,936	)		(1,862	)		(1,632	)
Amortization:
Prior service cost		24			24			(2	)		(2	)		(2,068	)		(2,346	)
Actuarial (gain)/ loss		3,370			1,928			1,886			1,263			2,858			2,578
Net periodic cost (benefit)	$	(552	)	$	(1,832	)	$	1,712		$	1,808		$	306		$	104

Note 8: Inventories

The composition of inventories follows:

	June 1,			December 1,
	2013			2012
Raw materials	$	117,932		$	110,820
Finished goods		125,925			119,123
LIFO reserve		(21,476	)		(21,412	)
Total inventories	$	222,381		$	208,531

Note 9: Financial Instruments

As a result of being a global enterprise, our earnings, cash flows and financial position are exposed to foreign currency risk from foreign currency denominated receivables and payables. These items are denominated in various foreign currencies, including the Euro, British pound sterling, Canadian dollar, Chinese renminbi, Japanese yen, Australian dollar, Swiss franc, Argentine peso, Brazilian real, Colombian peso, Mexican peso, Turkish lira, Egyptian pound, Indian rupee and Malaysian ringgit.

Our objective is to balance, where possible, local currency denominated assets to local currency denominated liabilities to have a natural hedge and minimize foreign exchange impacts. We take steps to minimize risks from foreign currency exchange rate fluctuations through normal operating and financing activities and, when deemed appropriate, through the use of derivative instruments. We do not enter into any speculative positions with regard to derivative instruments.

We enter into derivative contracts with a group of investment grade multinational commercial banks. We evaluate the credit quality of each of these banks on a periodic basis as warranted.

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Effective March 5, 2012, we entered into two cross-currency swap agreements to convert a notional amount of $151,598 of foreign currency denominated intercompany loans into US dollars. One of the cross-currency swaps matures in 2014 and the other swap matures in 2015. As of June 1, 2013, the combined fair value of the swaps were an asset of $1,769 and were included in other assets in the Condensed Consolidated Balance Sheets. The swaps were designated as cash-flow hedges for accounting treatment. The lesser amount between the cumulative change in the fair value of the actual swaps and the cumulative change in the fair value of hypothetical swaps is recorded in accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheets. The difference between the cumulative change in the fair value of the actual swaps and the cumulative change in the fair value of hypothetical swaps are recorded as other income (expense), net in the Condensed Consolidated Statements of Income. In a perfectly effective hedge relationship, the two fair value calculations would exactly offset each other. Any difference in the calculation represents hedge ineffectiveness. The ineffectiveness calculations as of June 1, 2013 resulted in additional pre-tax gain of $6 year-to-date as the change in fair value of the cross-currency swaps was more than the change in the fair value of the hypothetical swaps. The amount in accumulated other comprehensive income (loss) related to cross-currency swaps was a loss of $205 at June 1, 2013. The estimated net amount of the existing loss that is reported in accumulated other comprehensive income (loss) at June 1, 2013 that is expected to be reclassified into earnings within the next twelve months is $163. At June 1, 2013, we believe the original forecasted transactions will occur, therefore, we do not believe any gains or losses will be reclassified into earnings as a result of the discontinuance of these cash flow hedges.

The following table summarizes the cross-currency swaps outstanding as of June 1, 2013:

	Fiscal Year of Expiration		Interest Rate			Notional Value		Fair Value
Pay EUR		2014		4.15	%	$	52,860	$	833
Receive USD				4.30	%
Pay EUR		2015		4.30	%	$	98,738	$	936
Receive USD				4.45	%
Total						$	151,598	$	1,769

Except for the two cross currency swap agreements listed above, foreign currency derivative instruments outstanding are not designated as hedges for accounting purposes. The gains and losses related to mark-to-market adjustments are recognized as other income or expense in the income statement during the periods in which the derivative instruments are outstanding. See Note 14 to Condensed Consolidated Financial Statements for fair value amounts of these derivative instruments.

As of June 1, 2013, we had forward foreign currency contracts maturing between June 5, 2013 and November 1, 2013. The mark-to-market effect associated with these contracts, on a net basis, was a gain of $481 at June 1, 2013. These gains were largely offset by the underlying transaction gains and losses resulting from the foreign currency exposures for which these contracts relate.

We have interest rate swap agreements to convert $75,000 of our Senior Notes to variable interest rates. The change in fair value of the Senior Notes, attributable to the change in the risk being hedged, was a liability of $6,909 at June 1, 2013 and was included in long-term debt in the Condensed Consolidated Balance Sheets. The fair values of the swaps in total were an asset of $7,133 at June 1, 2013 and were included in other assets in the Condensed Consolidated Balance Sheets. The swaps were designated for hedge accounting treatment as fair value hedges. The changes in the fair value of the swap and the fair value of the Senior Notes attributable to the change in the risk being hedged are recorded as other income (expense), net in the Condensed Consolidated Statements of Income. In a perfectly effective hedge relationship, the two fair value calculations would exactly offset each other. Any difference in the calculation represents hedge ineffectiveness. The calculation as of June 1, 2013 resulted in additional pre-tax loss of $387 year-to-date as the fair value of the interest rate swaps decreased by more than the change in the fair value of the Senior Notes attributable to the change in the risk being hedged.

Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities in the customer base and their dispersion across many different industries and countries. As of June 1, 2013, there were no significant concentrations of credit risk.

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Note 10: Commitments and Contingencies

Environmental Matters. From time to time, we become aware of compliance matters relating to, or receive notices from, federal, state or local entities regarding possible or alleged violations of environmental, health or safety laws and regulations. We review the circumstances of each individual site, considering the number of parties involved, the level of potential liability or contribution of us relative to the other parties, the nature and magnitude of the hazardous substances involved, the method and extent of remediation, the estimated legal and consulting expense with respect to each site and the time period over which any costs would likely be incurred. Also, from time to time, we are identified as a “potentially responsible party” (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and/or similar state laws that impose liability for costs relating to the clean up of contamination resulting from past spills, disposal or other release of hazardous substances. We are also subject to similar laws in some of the countries where current and former facilities are located. Our environmental, health and safety department monitors compliance with applicable laws on a global basis. To the extent we can reasonably estimate the amount of our probable liabilities for environmental matters, we establish a financial provision.

Currently we are involved in various environmental investigations, clean up activities and administrative proceedings and lawsuits. In particular, we are currently deemed a PRP in conjunction with numerous other parties, in a number of government enforcement actions associated with hazardous waste sites. As a PRP, we may be required to pay a share of the costs of investigation and clean up of these sites. In addition, we are engaged in environmental remediation and monitoring efforts at a number of current and former operating facilities. While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow.

Other Legal Proceedings. From time to time and in the ordinary course of business, we are a party to, or a target of, lawsuits, claims, investigations and proceedings, including product liability, personal injury, contract, patent and intellectual property, environmental, health and safety, tax and employment matters. While we are unable to predict the outcome of these matters, we have concluded, based upon currently available information, that the ultimate resolution of any pending matter, individually or in the aggregate, including the asbestos litigation described in the following paragraphs, will not have a material adverse effect on our results of operations, financial condition or cash flow.

We have been named as a defendant in lawsuits in which plaintiffs have alleged injury due to products containing asbestos manufactured more than 30 years ago. The plaintiffs generally bring these lawsuits against multiple defendants and seek damages (both actual and punitive) in very large amounts. In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable injuries or that the injuries suffered were the result of exposure to products manufactured by us. We are typically dismissed as a defendant in such cases without payment. If the plaintiff presents evidence indicating that compensable injury occurred as a result of exposure to our products, the case is generally settled for an amount that reflects the seriousness of the injury, the length, intensity and character of exposure to products containing asbestos, the number and solvency of other defendants in the case, and the jurisdiction in which the case has been brought.

A significant portion of the defense costs and settlements in asbestos-related litigation is paid by third parties, including indemnification pursuant to the provisions of a 1976 agreement under which we acquired a business from a third party. Currently, this third party is defending and paying settlement amounts, under a reservation of rights, in most of the asbestos cases tendered to the third party.

In addition to the indemnification arrangements with third parties, we have insurance policies that generally provide coverage for asbestos liabilities (including defense costs). Historically, insurers have paid a significant portion of our defense costs and settlements in asbestos-related litigation. However, certain of our insurers are insolvent. We have entered into cost-sharing agreements with our insurers that provide for the allocation of defense costs and, in some cases, settlements and judgments, in asbestos-related lawsuits. Under these agreements, we are required in some cases to fund a share of settlements and judgments allocable to years in which the responsible insurer is insolvent. In addition, to delineate our rights under certain insurance policies, in October 2009, we commenced a declaratory judgment action against one of our insurers in the United States District Court for the District of Minnesota. Additional insurers have been brought into the action to address issues related to the scope of their coverage.

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A summary of the number of and settlement amounts for asbestos-related lawsuits and claims is as follows:

	26 Weeks Ended				3 Years Ended
($ in thousands)	June 1, 2013		June 2, 2012		December 1, 2012
Lawsuits and claims settled		—		8			20
Settlement amounts	$	—	$	490		$	1,535
Insurance payments received or expected to be received	$	—	$	350		$	1,174

We do not believe that it would be meaningful to disclose the aggregate number of asbestos-related lawsuits filed against us because relatively few of these lawsuits are known to involve exposure to asbestos-containing products that we manufactured. Rather, we believe it is more meaningful to disclose the number of lawsuits that are settled and result in a payment to the plaintiff. To the extent we can reasonably estimate the amount of our probable liabilities for pending asbestos-related claims, we establish a financial provision and a corresponding receivable for insurance recoveries.

Based on currently available information, we have concluded that the resolution of any pending matter, including asbestos-related litigation, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow.

Note 11: Operating Segments

We are required to report segment information in the same way that we internally organize our business for assessing performance and making decisions regarding allocation of resources. We evaluate the performance of each of our operating segments based on segment operating income, which is defined as gross profit less selling, general and administrative (SG&A) expenses. Segment operating income excludes special charges, net. Corporate expenses are fully allocated to each operating segment. Corporate assets are not allocated to the segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs. Operating results of each segment are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

The net revenue and segment operating income of the industrial adhesives business acquired in 2012 was recorded in our North America Adhesives, EIMEA, Latin America and Asia Pacific operating segments.

The tables below provide certain information regarding the net revenue and segment operating income of each of our operating segments:

	13 Weeks Ended
	June 1, 2013						June 2, 2012
			Inter-		Segment				Inter-		Segment
	Trade		Segment		Operating		Trade		Segment		Operating
	Revenue		Revenue		Income		Revenue		Revenue		Income
North America Adhesives	$	190,641	$	14,220	$	28,448	$	193,382	$	15,615	$	25,115
Construction Products		42,934		134		4,047		39,679		105		3,148
EIMEA		185,194		2,793		14,145		193,943		2,307		9,485
Latin America		38,132		141		3,377		38,555		289		3,729
Asia Pacific		62,115		3,788		2,793		61,436		4,596		2,118
Total	$	519,016			$	52,810	$	526,995			$	43,595

	26 Weeks Ended
	June 1, 2013						June 2, 2012
			Inter-		Segment				Inter-		Segment
	Trade		Segment		Operating		Trade		Segment		Operating
	Revenue		Revenue		Income		Revenue		Revenue		Income
North America Adhesives	$	362,903	$	26,832	$	51,922	$	311,478	$	29,386	$	42,610
Construction Products		76,965		215		5,411		72,173		210		3,620
EIMEA		362,695		5,469		20,618		304,594		4,356		16,033
Latin America		73,601		214		5,828		74,152		676		6,116
Asia Pacific		122,694		7,279		4,767		110,052		8,050		2,873
Total	$	998,858			$	88,546	$	872,449			$	71,252

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Reconciliation of segment operating income to income from continuing operations before income taxes and income from equity method investments:

	13 Weeks Ended						26 Weeks Ended
	June 1,			June 2,			June 1,			June 2,
	2013			2012			2013			2012
Segment operating income	$	52,810		$	43,595		$	88,546		$	71,252
Special charges, net		(10,843	)		(32,127	)		(16,176	)		(38,609	)
Asset impairment charges		—			(671	)		—			(671	)
Other income (expense), net		(1,814	)		231			(1,436	)		648
Interest expense		(4,884	)		(5,749	)		(10,211	)		(8,367	)
Income from continuing operations before income taxes and income from equity method investments	$	35,269		$	5,279		$	60,723		$	24,253

Note 12: Income Taxes

As of June 1, 2013, we had a $5,301 liability recorded under FASB ASC 740, “Income Taxes” for gross unrecognized tax benefits (excluding interest). As of June 1, 2013, we had accrued $801 of gross interest relating to unrecognized tax benefits. During the second quarter of 2013 our recorded liability for gross unrecognized tax benefits decreased by $95.

Note 13: Goodwill

A summary of goodwill activity for the first six months of 2013 is presented below:

Balance at December 1, 2012	$	254,345
Forbo Industrial Adhesives acquisition (Note 2)		343
Engent, Inc. acquisition (Note 2)		247
Currency impact		(2,460	)
Balance at June 1, 2013	$	252,475

Note 14: Fair Value Measurements

The following tables present information about our financial assets and liabilities that are measured at fair value on a recurring basis as of June 1, 2013 and December 1, 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include data points that are observable such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) such as interest rates and yield curves that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

	June 1,		Fair Value Measurements Using:
Description	2013		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	905	$	905	$	—	$	—
Derivative assets		1,742		—		1,742		—
Interest rate swaps		7,133		—		7,133		—
Cash-flow hedges		1,769		—		1,769		—
Liabilities:
Derivative liabilities	$	1,261	$	—	$	1,261	$	—
Contingent consideration liability, continuing operations		1,638		—		—		1,638
Contingent consideration liability, discontinued operations		5,000		—		—		5,000

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	December 1,		Fair Value Measurements Using:
Description	2012		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	15,499	$	15,499	$	—	$	—
Derivative assets		830		—		830		—
Interest rate swaps		9,473		—		9,473		—
Cash-flow hedges		1,610		—		1,610		—
Liabilities:
Derivative liabilities	$	956	$	—	$	956	$	—
Contingent consideration liability, continuing operations		1,649		—		—		1,649
Contingent consideration liability, discontinued operations		5,000		—		—		5,000

Note 15: Share Repurchase Program

On September 30, 2010, the Board of Directors authorized a share repurchase program of up to $100,000 of our outstanding common shares. Under the program, we are authorized to repurchase shares for cash on the open market, from time to time, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. The timing of such repurchases is dependent on price, market conditions and applicable regulatory requirements. Upon repurchase of the shares, we reduced our common stock for the par value of the shares with the excess being applied against additional paid-in capital.

During the second quarter of 2013 we repurchased shares under this program, with an aggregate value of $4,775. Of this amount, $125 reduced common stock and $4,650 reduced additional paid-in capital. There were no shares repurchased under this program during the first quarter of 2013 or the first six months of 2012.

Note 16: Impairment of Long-lived Asset

During the second quarter of 2012, we determined the fair value of one of our cost basis investments was lower than the investment value on our balance sheet based on investor approval of a buy-out offer from the majority shareholder. As a result, we recorded an impairment charge of $671.

Note 17: Redeemable Non-Controlling Interest

We account for the non-controlling interest in H.B. Fuller Kimya San. Tic A.S. (HBF Kimya) as a redeemable non-controlling interest because both the non-controlling shareholder and H.B. Fuller have an option, exercisable beginning August 1, 2018, to require the redemption of the shares owned by the non-controlling shareholder at a price determined by a formula based on 24 months trailing EBITDA. Since the option makes the redemption of the non-controlling ownership shares of HBF Kimya outside of our control, these shares are classified as a redeemable non-controlling interest in temporary equity in the Condensed Consolidated Balance Sheets. The option is subject to a minimum price of €3,500. The redemption value of the option, if it were currently redeemable, is estimated to be €3,500.

19

HBF Kimya’s results of operations are consolidated in our financial statements. Both the non-controlling interest and the accretion adjustment to redemption value are included in income or loss attributable to non-controlling interests in the Condensed Consolidated Statements of Income and in the carrying value of the redeemable non-controlling interest on the Condensed Consolidated Balance Sheets. HBF Kimya’s functional currency is the Turkish lira and changes in exchange rates will affect the reported amount of the redeemable non-controlling interest. As of June 1, 2013 the redeemable non-controlling interest was:

Balance at December 1, 2012	$	3,981
Net income attributed to redeemable non-controlling interest		161
Accretion adjustment to redemption value		48
Distributions to non-controlling shareholder		(244	)
Foreign currency translation adjustment		2
Balance at June 1, 2013	$	3,948

Note 18: Subsequent Event

On June 6, 2013 we completed the purchase of Plexbond Quimica, S.A., a provider of chemical polyurethane specialties and polyester resins, for approximately $12,000. Plexbond Quimica, S.A. operates a manufacturing facility in Curitiba, Brazil. The acquisition will be recorded in our Latin America operating segment.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

The Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the MD&A included in our Annual Report on Form 10-K for the year ended December 1, 2012 for important background information related to our business.

We completed the acquisition of the Forbo industrial adhesives business on March 5, 2012. The Forbo industrial adhesives business acquired is referred to as the “acquired business” in the MD&A.

Net revenue in the second quarter of 2013 decreased 1.5 percent over the second quarter of 2012. Pricing increased 0.2 percent offset by 1.4 percent decrease in sales volume. The weakening of the Euro for the second quarter of 2013 compared to the second quarter of 2012 were the main drivers of the negative 0.3 percent currency effect compared to the U.S. dollar. Gross profit margin improved by 230 basis points driven by synergies from integrating the acquired business, other profit margin improvement initiatives over the past year and the recognition of the non-cash charge for the sale of inventories revalued at the date of the acquisition which reduced gross profit margin 60 basis points in the second quarter of 2012. We incurred special charges, net of $10.8 million for costs related to the Business Integration Project in the second quarter of 2013 and $32.1 million in the second quarter of 2012.

Net income attributable to H.B. Fuller in the second quarter of 2013 was $25.9 million as compared to $1.9 million in the second quarter of 2012. The 2012 net income attributable to H.B. Fuller includes a loss of $3.1 million from discontinued operations, net of tax or $0.06 diluted per share. On a diluted earnings per share basis, the second quarter of 2013 was $0.51 per share as compared to $0.04 per share for the same period last year.

Net revenue in the first six months of 2013 increased 14.5 percent over the first six months of 2012. Organic growth, which we define as revenue growth due to changes in sales volume and selling prices, was 0.5 percent as compared to the first six months of 2012. The organic growth consisted of 0.5 percent higher pricing with no percentage change in volume. Inclusion of the acquired business increased net revenue by approximately $121.8 million. Gross profit margin improved by 60 basis points driven by synergies from integrating the acquired business. Our SG&A expenses increased by 14.0 percent in the first six months of 2013 compared to the same period last year, however, SG&A expenses as a percentage of net revenue decreased by 10 basis points. The increase in SG&A expense was primarily due to the inclusion of the acquired business. We incurred special charges, net of $16.2 million for costs related to the Business Integration Project in the first six months of 2013 and $38.6 million in the first six months of 2012.

Net income attributable to H.B. Fuller in the first six months of 2013 was $46.6 million as compared to $17.2 million in the first six months of 2012. The 2012 net income attributable to H.B. Fuller includes a $1.3 million loss from discontinued operations, net of tax or $0.03 diluted per share. On a diluted earnings per share basis, the first six months of 2013 was $0.91 per share as compared to $0.34 per share for the same period last year.

Results of Operations

Net revenue:

	13 Weeks Ended							26 Weeks Ended
	June 1,		June 2,		2013 vs			June 1,		June 2,		2013 vs
($ in millions)	2013		2012		2012			2013		2012		2012
Net revenue	$	519.0	$	527.0		(1.5	%)	$	998.9	$	872.4		14.5	%

We review variances in net revenue in terms of changes related to product pricing, sales volume, changes in foreign currency exchange rates and acquisitions. The pricing/sales volume variance and small niche acquisitions including Engent which was acquired in the fourth quarter of 2012 are viewed as organic growth. The following table shows the net revenue variance analysis for the second quarter and six months compared to the same period in 2012:

	13 Weeks Ended			26 Weeks Ended
	June 1, 2013			June 1, 2013
Product pricing		0.2	%		0.5	%
Sales volume		(1.4	%)		0.0	%
Currency		(0.3	%)		0.0	%
Acquisitions		0.0	%		14.0	%
		(1.5	%)		14.5	%

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Product pricing increased 0.2 percent offset by decreased sales volume of 1.4 percent for the second quarter of 2013 as compared to the same period last year. The negative currency effects in the quarter were primarily the result of the weakening of the Euro compared to the U.S dollar.

Year-to-date organic growth was 0.5 percent with increased product pricing of 0.5 percent with no percentage change in volume for the first six months of 2013 as compared to the same period last year. The organic growth was driven by growth in the North America Adhesives, Construction Products, and Asia Pacific operating segments. Currency changes had no year-to-date effects in 2013. The inclusion of the acquired business added $121.8 million to net revenue.

Cost of sales:

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Raw materials	$	295.4		$	308.5			(4.2	%)	$	567.1		$	501.5			13.1	%
Other manufacturing costs		77.0			81.9			(6.0	%)		151.8			131.7			15.3	%
Cost of sales	$	372.4		$	390.4			(4.6	%)	$	718.9		$	633.2			13.5	%
Percent of net revenue		71.8	%		74.1	%					72.0	%		72.6	%

The 4.6 percent decrease in cost of sales in the second quarter of 2013 compared to the second quarter of 2012 was driven by the integration of the acquired business. Cost of sales as a percentage of net revenue decreased 230 basis points primarily driven by synergies from integrating the acquired business and the recognition of the non-cash charge for the sale of inventories revalued at the date of the acquisition which increased cost of sales by 60 basis points in the second quarter of 2012. Raw material costs as a percentage of sales decreased 160 basis points relative to the prior year, reflecting material cost synergies, other profit improvement initiatives undertaken over the last twelve months and the recognition of the non-cash charge which increased raw material costs as a percentage of sales by 60 basis points in the second quarter of 2012. Other manufacturing costs as a percentage of revenue decreased by 70 basis points as benefits of the manufacturing network consolidation projects within the Business Integration Project were realized. We expect raw material costs to remain at or near second quarter exit levels through the end of this year.

The 13.5 percent increase in cost of sales for the first six months of 2013 compared to the first six months of 2012 was driven by the inclusion of the acquired business. Cost of sales as a percentage of net revenue decreased 60 basis points primarily driven by synergies from integrating the acquired business. Raw material costs as a percentage of sales decreased 70 basis points relative to the prior year, reflecting material cost synergies and other profit improvement initiatives undertaken over the last twelve months. Other manufacturing costs as a percentage of revenue increased by 10 basis points compared to last year; this ratio is expected to improve over the next three quarters as the benefits of the manufacturing network consolidation projects within the Business Integration Project are completed.

Gross profit:

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Gross profit	$	146.6		$	136.6			7.4	%	$	280.0		$	239.2			17.0	%
Percent of net revenue		28.2	%		25.9	%					28.0	%		27.4	%

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Gross profit for the second quarter of 2013 increased by $10.0 million compared to the second quarter of 2012 and gross profit margin improved by 230 basis points driven by synergies from integrating the acquired business, other profit margin improvement initiatives over the past year and the recognition of the non-cash charge for the sale of inventories revalued at the date of the acquisition which reduced gross profit margin 60 basis points in the second quarter of 2012.

Gross profit for the first six months of 2013 increased by $40.8 million compared to the first six months of 2012 and gross profit margin improved by 60 basis points. The synergies from integrating the acquired business were the primary reason for the margin improvement.

Selling, general and administrative (SG&A) expenses:

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
SG&A	$	93.8		$	93.0			0.9	%	$	191.4		$	168.0			14.0	%
Percent of net revenue		18.1	%		17.6	%					19.2	%		19.3	%

SG&A expenses increased $0.8 million or 0.9 percent compared to the second quarter of 2012. SG&A expense as a percentage of net revenue increased 50 basis points due to the slight decline in period over period revenue.

SG&A expenses increased $23.4 million or 14.0 percent compared to the first six months of 2012. The lower relative cost structure of the acquired business and the increased net revenue resulted in the 10 basis point decrease in SG&A expense as a percentage of net revenue.

We make SG&A expense plans at the beginning of each fiscal year and barring significant changes in business conditions or our outlook for the future, we maintain these spending plans for the entire year. Management routinely monitors our SG&A spending relative to these fiscal year plans for each operating segment and for the company overall. We feel it is important to maintain a consistent spending program in this area as many of the activities within the SG&A category such as the sales force, technology development, and customer service are critical elements of our business strategy. For the current year we have planned SG&A expenses to increase relative to last year by an amount slightly less than our expected growth in net revenue. Our analysis of the impact of our SG&A spending in the quarter is generally focused on spending variances that are significantly above or below this planned level.

Special charges, net:

	13 Weeks Ended							26 Weeks Ended
	June 1,		June 2,		2013 vs			June 1,		June 2,		2013 vs
($ in millions)	2013		2012		2012			2013		2012		2012
Special charges, net	$	10.8	$	32.1		(66.2	%)	$	16.2	$	38.6		(58.1	%)

The following table provides detail of special charges, net:

	13 Weeks Ended				26 Weeks Ended
($ in millions)	June 1, 2013		June 2, 2012		June 1, 2013		June 2, 2012
Acquisition and transformation related costs	$	1.9	$	11.1	$	4.2	$	13.0
Workforce reduction costs		3.7		19.6		4.2		23.5
Facility exit costs		3.2		1.1		5.0		1.5
Other related costs		2.0		0.3		2.8		0.6
Special charges, net	$	10.8	$	32.1	$	16.2	$	38.6

The integration of the acquired business involves a significant amount of restructuring and capital investment to optimize the new combined entity. In addition to this acquisition, we announced our intentions to take a series of actions in our existing EIMEA operating segment to improve the profitability and future growth prospects of this operating segment. We have combined these two initiatives into a single project which we refer to as the “Business Integration Project”. During the 13 weeks ended June 1, 2013 and June 2, 2012, we incurred special charges, net of $10.8 million and $32.1 million respectively, for costs related to the Business Integration Project. During the 26 weeks ended June 1, 2013 and June 2, 2012, we incurred special charges, net of $16.2 million and $38.6 million respectively, for costs related to the Business Integration Project.

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Acquisition and transformation related costs of $1.9 million for the second quarter of 2013 and $11.1 million for the second quarter of 2012 include costs related to organization consulting, investment advisory, financial advisory, legal and valuation services necessary to acquire and integrate the acquired business into our existing operating segments. We incurred acquisition and transformation related costs of $4.2 million for the first six months of 2013 and $13.0 million for the same period last year. For the 26 weeks ended June 2, 2012, acquisition and transformation related costs included an expense to make a bridge loan available, an expense related to the purchase of a foreign currency option to hedge a portion of the acquisition purchase price and the net gain on the forward currency contracts used to economically hedge the purchase price for the pending acquisition of the global industrial adhesives business of Forbo Group after the price was established.

The Business Integration Project is a broad-based transformation plan involving all major processes in three of our existing operating segments. The integration strategy and execution plan is unique for each operating segment reflecting the differences within operating segments as well as differences within the acquired business in each geographic region. In the North America Adhesives operating segment, the integration work is essentially a consolidation of two similar businesses. The production capacity of the two organizations is being optimized mostly by transferring volume from the acquired business to existing facilities within the North America Adhesives operating segment. In the EIMEA operating segment, the Business Integration Project impacts more aspects of the business and is more complex. The two businesses being combined have similar inefficiencies and opportunities for improved productivity, generally due to excess complexity within the core processes of each of the businesses. This portion of the project will require more capital investment, higher restructuring and severance costs and a longer time frame when compared to the North America Adhesives portion of the project. In the Asia Pacific operating segment, the Business Integration Project is less complex because the acquired business in that region was relatively small. The focus of the integration work in this region is to build a solid foundation for growth in the commercial and technical areas and create a more efficient production network in China.

The benefits of the Business Integration Project are expected to be substantial. We have plans to create annual cash cost savings and other cash pre-tax profit improvement benefits aggregating to $90.0 million when the various integration activities are completed in 2014. By 2015, the Business Integration Project activities are expected to improve the EBITDA margin of the global business from just under 11 percent in 2011 to a target level of 15 percent. The project incorporates many different work streams each of which has a specific timeline for completion and delivery of benefits. Some of the initiatives, such as raw material cost reductions, have delivered immediate benefits while other initiatives, such as facility closures, will take longer to implement and the related cost savings will be achieved later in the project. Taking the expected impact of all initiatives into account, the profit improvement benefits should drive steady annual improvement in EBITDA margin until the target level is achieved in 2015.

The total costs, excluding capital expenditures, to achieve these benefits are expected to be approximately $121.0 million of which $76.2 million have been expensed since inception of the Business Integration Project in 2011. The remaining expected costs of approximately $44.8 million will occur over the next several quarters through the end of 2014. The following table provides detail of costs incurred and future expected costs of the Business Integration Project:

	As of June 1, 2013
($ in millions)	Costs Incurred Inception-to- Date		Expected Costs Remaining		Total Expected Costs
Acquisition and transformation related costs	$	29.9	$	5.1	$	35.0
Work force reduction costs		32.3		20.7		53.0
Cash facility exit costs		4.7		12.3		17.0
Non-cash facility exit costs		4.5		1.5		6.0
Other related costs		4.8		5.2		10.0
Business Integration Project	$	76.2	$	44.8	$	121.0

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The remaining expected Business Integration Project costs of $44.8 million will be incurred as the measures are implemented, and will total approximately $27.8 million in fiscal year 2013 and approximately $17.0 million in fiscal year 2014. The costs associated with the acquisition integration and the cash costs of the restructuring are incremental cash outlays that will be funded with existing cash and cash generated from operations. Non-cash costs are primarily related to accelerated depreciation of long-lived assets.

The capital expenditures related to the Business Integration Project will be significant. In 2012 we spent approximately $36.0 million in capital expenditures. As the project has progressed and the scope of the various projects are more fully defined, we expect capital expenditures to reach $110.0 million in 2013 and the aggregate of spending in the years 2014 and 2015 is expected to be $100.0 million. This capital spending forecast for all projects including the Business Integration Project is consistent with our original forecast. This capital spending program will be funded from the operating cash flows of the business and if necessary, from available cash and short-term borrowing.

Going forward, we plan to report our progress on achieving our profit improvement initiatives each quarter. We will focus on three key metrics which capture the bulk of the Business Integration Project objectives: (1) cost savings achieved through workforce reductions, (2) cost reductions achieved through facility closures and consolidation, and (3) the EBITDA margin of the business relative to our expected trend over the timeframe of the project. In addition, the costs to achieve these benefits will be reported in each reporting period, relative to the $121.0 million total expected cost estimate.

For the quarter ended June 1, 2013, we achieved cost savings of $3.6 million related to workforce reductions and $3.1 million related to facility closures and consolidations. The above cost savings represent benefits from selected activities included in the Business Integration Project. EBITDA margin for the second quarter of 12.9 percent is consistent with our plan.

Other income (expense), net:

	13 Weeks Ended							26 Weeks Ended
	June 1,			June 2,		2013 vs		June 1,			June 2,		2013 vs
($ in millions)	2013			2012		2012		2013			2012		2012
Other income (expense), net	$	(1.8	)	$	0.2		NMP	$	(1.4	)	$	0.6		NMP

NMP = Non-meaningful percentage

Other income (expense), net in the second quarter of 2013 included $1.7 million of currency translation and re-measurement losses and $0.3 million of net financing costs offset by $0.2 million of interest income. Other income (expense), net in the second quarter of 2012 included $0.6 million of currency translation and re-measurement gains and $0.4 million of interest income offset by net financing costs of $0.8 million.

For the first six months of 2013, other income (expense), net included $1.5 million of currency translation and re-measurement losses and $0.3 million of net financing costs offset by $0.4 million of interest income. For the first six months of 2012, other income (expense), net included $0.9 million of interest income and $0.1 million of currency translation and re-measurement gains offset by net financing costs of $0.4 million.

Interest expense:

	13 Weeks Ended							26 Weeks Ended
	June 1,		June 2,		2013 vs			June 1,		June 2,		2013 vs
($ in millions)	2013		2012		2012			2013		2012		2012
Interest expense	$	4.9	$	5.7		(15.0	%)	$	10.2	$	8.4		22.0	%

Interest expense in the second quarter of 2013 as compared to same period last year was lower due to a prepayment of long-term debt with proceeds from the sale of our Central America Paints business in the third quarter of 2012.

Interest expense for first six months of 2013 as compared to same period last year was higher due to increased debt obtained to purchase the acquired business.

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Income taxes:

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Income taxes	$	10.9		$	2.4			359.0	%	$	18.0		$	9.9			81.1	%
Effective tax rate		30.8	%		44.8	%					29.6	%		40.9	%

Income tax expense of $10.9 million in the second quarter of 2013 includes $0.7 million of discrete tax benefits and $2.5 million of tax benefits relating to the special charges for costs related to the Business Integration Project. Excluding the discrete benefits and the effects of items included in special charges, the overall effective tax rate was 30.4 percent. Without discrete tax benefits of $0.7 million and the impact of costs related to the Business Integration Project in the second quarter of 2012, the overall effective tax rate was 29.5 percent.

Income tax expense of $18.0 million year to date in 2013 includes $1.5 million of discrete tax benefits and $3.6 million of tax benefits relating to the special charges for costs related to the Business Integration Project. Excluding the discrete benefits and the effects of items included in special charges, the overall effective tax rate was 30.0 percent. Without discrete tax benefits of $0.8 million and the impact of costs related to the Business Integration Project, the overall effective tax rate was 29.1 percent year to date in 2012.

Income from equity method investments:

	13 Weeks Ended							26 Weeks Ended
	June 1,		June 2,		2013 vs			June 1,		June 2,		2013 vs
($ in millions)	2013		2012		2012			2013		2012		2012
Income from equity method investments	$	1.6	$	2.1		(23.5	%)	$	4.1	$	4.3		(6.0	%)

The income from equity method investments relates to our 50 percent ownership of the Sekisui-Fuller joint venture in Japan.

Income (loss) from discontinued operations, net of tax:

	13 Weeks Ended							26 Weeks Ended
	June 1,		June 2,			2013 vs		June 1,		June 2,			2013 vs
($ in millions)	2013		2012			2012		2013		2012			2012
Income (loss) from discontinued operations, net of tax	$	—	$	(3.1	)		NMP	$	—	$	(1.3	)		NMP

NMP = Non-meaningful percentage

The income (loss) from discontinued operations, net of tax, relates to the results of operations of the Central America Paints business, which we sold August 6, 2012. See Note 2 to the Condensed Consolidated Financial Statements.

Net (income) loss attributable to non-controlling interests:

	13 Weeks Ended								26 Weeks Ended
	June 1,			June 2,			2013 vs		June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012		2013			2012			2012
Net (income) loss attributable to non-controlling interests	$	(0.1	)	$	(0.1	)		NMP	$	(0.2	)	$	(0.1	)		NMP

NMP = Non-meaningful percentage

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Net (income) loss attributable to non-controlling interests relate to a 10 percent redeemable non-controlling interest in HBF Turkey.

Net income attributable to H.B. Fuller:

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Net income attributable to H.B. Fuller	$	25.9		$	1.9			1239.3	%	$	46.6		$	17.2			170.3	%
Percent of net revenue		5.0	%		0.4	%					4.7	%		2.0	%

The net income attributable to H.B. Fuller for the second quarter of 2013 was $25.9 million compared to $1.9 million for the second quarter of 2012. The second quarter of 2013 included $10.8 million of special charges, net ($8.4 million after tax) for costs related to the Business Integration Project. The second quarter of 2012 included $32.1 million of special charges, net ($24.2 million after tax) for costs related to the Business Integration Project. The diluted earnings per share for the second quarter of 2013 was $0.51 per share as compared to $0.04 per share for the second quarter of 2012.

The net income attributable to H.B. Fuller for the first six months of 2013 was $46.6 million compared to $17.2 million for the first six months of 2012. The first six months of 2013 included $16.2 million of special charges, net ($12.6 million after tax) for costs related to the Business Integration Project. The first six months of 2012 included $38.6 million of special charges, net ($31.0 million after tax) for costs related to the Business Integration Project. The diluted earnings per share for the first six months of 2013 was $0.91 per share as compared to $0.34 per share for the first six months of 2012.

Operating Segment Results

Our operations are managed through five reportable segments: North America Adhesives, Construction Products, EIMEA, Latin America and Asia Pacific. Operating results of each of these segments are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

The tables below provide certain information regarding the net revenue and segment operating income of each of our operating segments. The pricing/sales volume variance is viewed as organic growth. For segment evaluation by the chief operating decision maker, segment operating income is defined as gross profit less SG&A expenses and excludes special charges, net.

Net Revenue by Segment:

	13 Weeks Ended										26 Weeks Ended
	June 1, 2013					June 2, 2012					June 1, 2013					June 2, 2012
	Net		% of			Net		% of			Net		% of			Net		% of
($ in millions)	Revenue		Total			Revenue		Total			Revenue		Total			Revenue		Total
North America Adhesives	$	190.7		37	%	$	193.4		37	%	$	362.9		36	%	$	311.5		36	%
Construction Products		42.9		8	%		39.7		7	%		77.0		8	%		72.2		8	%
EIMEA		185.2		36	%		193.9		37	%		362.7		36	%		304.6		35	%
Latin America		38.1		7	%		38.6		7	%		73.6		8	%		74.1		8	%
Asia Pacific		62.1		12	%		61.4		12	%		122.7		12	%		110.0		13	%
Total	$	519.0		100	%	$	527.0		100	%	$	998.9		100	%	$	872.4		100	%

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Segment Operating Income:

	13 Weeks Ended										26 Weeks Ended
	June 1, 2013					June 2, 2012					June 1, 2013					June 2, 2012
($ in millions)	Segment Operating Income		% of Total			Segment Operating Income		% of Total			Segment Operating Income		% of Total			Segment Operating Income		% of Total
North America Adhesives	$	28.5		54	%	$	25.1		58	%	$	51.9		59	%	$	42.6		60	%
Construction Products		4.0		8	%		3.2		7	%		5.4		6	%		3.7		5	%
EIMEA		14.1		27	%		9.5		22	%		20.6		23	%		16.0		22	%
Latin America		3.4		6	%		3.7		8	%		5.8		7	%		6.1		9	%
Asia Pacific		2.8		5	%		2.1		5	%		4.8		5	%		2.9		4	%
Total	$	52.8		100	%	$	43.6		100	%	$	88.5		100	%	$	71.3		100	%

The following table provides a reconciliation of segment operating income to income from continuing operations before income taxes and income from equity method investments, as reported on the Condensed Consolidated Statements of Income.

	13 Weeks Ended						26 Weeks Ended
	June 1,			June 2,			June 1,			June 2,
($ in millions)	2013			2012			2013			2012
Segment operating income	$	52.8		$	43.6		$	88.5		$	71.3
Special charges, net		(10.8	)		(32.1	)		(16.2	)		(38.6	)
Asset impairment charges		—			(0.7	)		—			(0.7	)
Other income (expense), net		(1.8	)		0.2			(1.4	)		0.6
Interest expense		(4.9	)		(5.7	)		(10.2	)		(8.4	)
Income from continuing operations before income taxes and income from equity method investments	$	35.3		$	5.3		$	60.7		$	24.2

North America Adhesives

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Net revenue	$	190.7		$	193.4			(1.4	%)	$	362.9		$	311.5			16.5	%
Segment operating income	$	28.5		$	25.1			13.3	%	$	51.9		$	42.6			21.9	%
Segment profit margin %		14.9	%		13.0	%					14.3	%		13.7	%

The following tables provide details of the North America Adhesives net revenue variances:

	13 Weeks Ended June 1, 2013 vs June 2, 2012			26 Weeks Ended June 1, 2013 vs June 2, 2012
Organic growth		(1.3	%)		0.1	%
Currency		(0.1	%)		0.0	%
Acquisition		0.0	%		16.4	%
Total		(1.4	%)		16.5	%

Net revenue decreased 1.4 percent in the second quarter of 2013 compared to the second quarter of 2012. Pricing increased 0.1 percent offset by a 1.4 percent decrease in sales volume and negative currency effects of 0.1 percent compared to last year. The sales volume decline was driven by changes in product mix combined with a generally sluggish end market demand environment. Segment operating income increased 13.3 percent and segment profit margin increased 190 basis points in the quarter. Raw material cost as a percentage of net revenue was 260 basis points lower driven by synergies from integrating the acquired business and other profit margin improvement initiatives over the past year. The second quarter of 2012 included the recognition of the non-cash charge for the sale of inventories revalued at the date of acquisition which increased cost of sales by 30 basis points. The higher gross margin was offset by higher SG&A expenses as a percentage of net revenue compared to the second quarter of 2012.

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Net revenue increased 16.5 percent in the first six months of 2013 compared to the first six months of 2012. Pricing increased 0.5 percent offset by a 0.4 percent decrease in sales volume compared to last year. The acquired business added approximately $51.0 million to net revenue. The increase in pricing reflected the cumulative impact of price increases implemented over the past year to offset raw material cost inflation. The sales volume decline was the result of changes in product mix combined with a generally sluggish end market demand environment. Segment operating income increased 21.9 percent for the first six months and segment profit margin increased 60 basis points. Raw material cost as a percentage of net revenue decreased 170 basis points as a result of synergies from integrating the acquired business and other profit margin improvement initiatives over the past year. The higher gross margin was offset by slightly higher manufacturing costs and SG&A expenses as a percent of revenue compared to the prior year.

Construction Products

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Net revenue	$	42.9		$	39.7			8.2	%	$	77.0		$	72.2			6.6	%
Segment operating income	$	4.0		$	3.2			28.6	%	$	5.4		$	3.7			49.5	%
Segment profit margin %		9.4	%		7.9	%					7.0	%		5.0	%

The following tables provide details of the Construction Products net revenue variances:

	13 Weeks Ended June 1, 2013 vs June 2, 2012			26 Weeks Ended June 1, 2013 vs June 2, 2012
Organic growth		8.2	%		6.6	%

Net revenue was up 8.2 percent in the second quarter of 2013 driven by an 8.5 percent increase in volume combined with a 0.3 percent decrease in pricing compared to the second quarter last year. The increase in sales volume was primarily attributed to continued market share gains with several key retail partners. The volume increase this year is an encouraging sign that the overall market is continuing to slowly improve. Segment operating income increased by 28.6 percent and segment profit margin increased by 150 basis points in the second quarter compared to the same period last year. Raw material costs as a percentage of net revenue was approximately 120 basis points lower in 2013 relative to the prior year primarily due to changes in the mix of products sold and reformulations. The improvement in segment profit margin was driven by improved gross margins offset by slightly higher manufacturing costs and administrative costs as a percentage of net revenue.

Net revenue was up 6.6 percent in the first six months of 2013 driven by a 6.6 percent increase in volume with no percentage change in pricing compared to last year. The increase in sales volume was primarily attributed to continued market share gains with several key retail partners. Segment operating income increased 49.5 percent and segment profit margin increased 200 basis points in the first six months compared to the same period last year. Raw material costs as a percentage of net revenue was approximately 40 basis points lower in 2013 relative to the prior year primarily due to changes in the mix of products sold. The improvement in segment profit margin was driven by improved gross margins and lower administrative costs as a percentage of net revenue.

EIMEA

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Net revenue	$	185.2		$	193.9			(4.5	%)	$	362.7		$	304.6			19.1	%
Segment operating income	$	14.1		$	9.5			49.1	%	$	20.6		$	16.0			28.6	%
Segment profit margin %		7.6	%		4.9	%					5.7	%		5.3	%

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The following table provides details of the EIMEA net revenue variances:

	13 Weeks Ended June 1, 2013			26 Weeks Ended June 1, 2013
	vs June 2, 2012			vs June 2, 2012
Organic growth		(3.5	%)		(0.3	%)
Currency		(1.0	%)		(0.4	%)
Acquisitions		0.0	%		19.8	%
Total		(4.5	%)		19.1	%

Net revenue decreased 4.5 percent in the second quarter of 2013 compared to the second quarter of 2012. Pricing increased 1.8 percent offset by a 5.3 percent decrease in sales volume. The weaker Euro compared to the U.S. dollar resulted in a 1.0 percent decrease in net revenue. Sales volume was down slightly in core Europe reflecting the generally soft end market conditions across most of the region, especially in the southern region and for durable assembly type products which are associated with more cyclical end markets. Significant volume growth was generated in the emerging markets of the region, especially Turkey and India. Segment operating income increased 49.1 percent and segment profit margin increased 270 basis points compared to the second quarter last year. Raw material cost as a percentage of net revenue decreased 160 basis points in the second quarter. The second quarter of 2012 included the recognition of the non-cash charge for the sale of inventories revalued at the date of acquisition which increased cost of sales by 120 basis points. SG&A expenses as a percentage of net revenue, which declined 70 basis points relative to the prior year, also contributed to the significant increase in segment profit margin.

Net revenue increased 19.1 percent in the first six months of 2013 compared to the first six months of 2012. Pricing increased 2.0 percent offset by a 2.3 percent decrease in sales volume. The weaker Euro compared to the U.S. dollar resulted in a 0.4 percent decrease in net revenue. The acquired business contributed $60.3 million of net revenue. Sales volume was down slightly in core Europe reflecting the generally soft end market conditions across most of the region, especially in the southern region and for durable assembly type products which are associated with more cyclical end markets. Significant volume growth was generated in the emerging markets of the region, especially Turkey and India. Segment operating income increased 28.6 percent and segment profit margin increased 40 basis points compared to the first six months last year. Raw material cost as a percentage of net revenue decreased 50 basis points in the first six months. SG&A expenses as a percentage of net revenue, which declined 30 basis points relative to the prior year, also contributed to the increase in segment profit margin.

Latin America

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Net revenue	$	38.1		$	38.6			(1.1	%)	$	73.6		$	74.1			(0.7	%)
Segment operating income	$	3.4		$	3.7			(9.4	%)	$	5.8		$	6.1			(4.7	%)
Segment profit margin %		8.9	%		9.7	%					7.9	%		8.2	%

The following tables provide details of the Latin America net revenue variances:

	13 Weeks Ended June 1, 2013 vs June 2, 2012			26 Weeks Ended June 1, 2013 vs June 2, 2012
Organic growth		(1.1	%)		(1.7	%)
Acquisition		0.0	%		1.0	%
Total		(1.1	%)		(0.7	%)

Net revenue decreased 1.1 percent in the second quarter of 2013 compared to the second quarter of 2012. Sales volume increased 0.1 percent and product pricing decreased 1.2 percent compared to the same quarter last year. Price levels have declined as raw material costs have declined across the region. Raw material costs as a percentage of net revenue were essentially unchanged relative to the prior quarter and last year. Lower net revenue and a 60 basis points increase in SG&A expenses as a percentage of net revenue caused operating income margin to decrease relative to the prior year.

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Net revenue decreased 0.7 percent in the first six months of 2013 compared to the first six months of 2012. Sales volume decreased 0.8 percent and product pricing decreased 0.9 percent compared to the same period last year. Net revenue increased $0.7 million from the acquired business. Volume declined in certain market segments and geographies, primarily due to erosion of share with certain customers. Raw material costs as a percentage of net revenue increased by 40 basis points relative to last year. SG&A expenses as a percentage of net revenue were flat compared to the first six months of 2012 which caused operating income margin to decrease slightly relative to the prior year.

Asia Pacific

	13 Weeks Ended									26 Weeks Ended
	June 1,			June 2,			2013 vs			June 1,			June 2,			2013 vs
($ in millions)	2013			2012			2012			2013			2012			2012
Net revenue	$	62.1		$	61.4			1.1	%	$	122.7		$	110.0			11.5	%
Segment operating income	$	2.8		$	2.1			31.9	%	$	4.8		$	2.9			65.9	%
Segment profit margin %		4.5	%		3.4	%					3.9	%		2.6	%

The following table provides details of Asia Pacific net revenue variances:

	13 Weeks Ended June 1, 2013			26 Weeks Ended June 1, 2013
	vs June 2, 2012			vs June 2, 2012
Organic growth		0.3	%		1.6	%
Currency		0.8	%		1.0	%
Acquisition		0.0	%		8.9	%
Total		1.1	%		11.5	%

Net revenue in the second quarter of 2013 increased 1.1 percent compared to the second quarter last year. Organic growth was 0.3 percent in the quarter reflecting a 3.2 percent increase in sales volume offset by a 2.9 percent decrease in pricing. Price levels have declined as raw material costs have declined across the region. Volume growth patterns remain consistent with recent quarters with China and Southeast Asia showing growth while Australia markets are relatively flat. In terms of market segments, volume growth continues in consumer goods markets such as packaging while other more cyclical markets are down year over year. Segment operating income increased $0.7 million in the quarter and segment profit margin increased 110 basis points. Raw material costs as a percentage of net revenue were flat compared to both the second quarter of last year and the first quarter of 2013. The second quarter of 2012 included the recognition of the non-cash charge for the sale of inventories revalued at the date of acquisition which increased cost of sales by 30 basis points. Both manufacturing costs and SG&A expenses as a percentage of net revenue decreased compared to the second quarter of last year and the prior quarter.

Net revenue for the first six months of 2013 increased 11.5 percent compared to the first six months of last year. Organic growth was 1.6 percent in the first six months reflecting a 3.7 percent increase in sales volume offset by a 2.1 percent decrease in pricing. Price levels have declined as raw material costs have declined across the region. Volume growth patterns remain consistent with recent quarters with China and Southeast Asia showing growth while Australia markets are relatively flat. In terms of market segments, volume growth continues in consumer goods markets such as hygiene and packaging while other more cyclical markets are down year over year. Net revenue increased $9.8 million from the acquired business. Segment operating income increased $1.9 million and segment profit margin increased 130 basis points in the first six months of 2013 compared to the first six months of 2012. Raw material costs as a percentage of net revenue increased 40 basis points in the first six months relative to the prior year. The year over year change was primarily due to the dilutive effect of the lower margin acquired business. Both manufacturing costs as a percentage of net revenue and SG&A expenses as a percentage of net revenue declined compared to the first six months of last year.

Financial Condition, Liquidity and Capital Resources

Total cash and cash equivalents as of June 1, 2013 were $161.2 million as compared to $200.4 million as of December 1, 2012 and $154.3 million as of June 2, 2012. Of the $161.2 million in cash and cash equivalents as of June 1, 2013, $152.9 million was held outside the United States. Total long and short-term debt was $496.4 million as of June 1, 2013, $520.2 million as of December 1, 2012 and $616.8 million as of June 2, 2012. The total debt to total capital ratio as measured by Total Debt divided by (Total Debt plus Total Equity) was 37.8 percent as of June 1, 2013 as compared to 40.1 percent as of December 1, 2012 and 46.8 percent as of June 2, 2012. The lower ratio as of June 1, 2013 compared to December 1, 2012 and June 2, 2012 was due to lower quarter-end debt levels.

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We believe that cash flows from operating activities will be adequate to meet our ongoing liquidity and capital expenditure needs. In addition, we believe we have the ability to obtain both short-term and long-term debt to meet our financing needs for the foreseeable future. Cash available in the United States has historically been sufficient and we expect it will continue to be sufficient to fund U.S. operations and U.S. capital spending and U.S. pension and other post retirement benefit contributions in addition to funding U.S. acquisitions, dividend payments, debt service and share repurchases as needed. For those international earnings considered to be reinvested indefinitely, we currently have no intention to, and plans do not indicate a need to, repatriate these funds for U.S. operations.

Our credit agreements and note purchase agreements include restrictive covenants that, if not met, could lead to a renegotiation of our credit lines and a significant increase in our cost of financing. At June 1, 2013, we were in compliance with all covenants of our contractual obligations as shown in the following table:

Covenant	Debt Instrument	Measurement	Result as of June 1, 2013
TTM EBITDA / TTM Interest Expense	All Debt Instruments	Not less than 2.5		11.4
Total Indebtedness / TTM EBITDA	All Debt Instruments	Not greater than 3.5		2.0

• TTM = Trailing 12 months

• EBITDA for covenant purposes is defined as consolidated net income, plus (i) interest expense, (ii) taxes, (iii) depreciation and amortization, (iv) non-cash impairment losses, (v) extraordinary non-cash losses incurred other than in the ordinary course of business, (vi) nonrecurring extraordinary non-cash restructuring charges, (vii) cash expenses for advisory services and for arranging financing for the Forbo Acquisition (including the non-cash write-off of deferred financing costs and any loss or expense on foreign exchange transactions intended to hedge the purchase price for the Forbo acquisition) with cash expenses not to exceed $25.0 million, and (viii) cash expenses incurred during fiscal years 2011 through 2014 in connection with facilities consolidation, restructuring and integration, discontinuance of operations, work force reduction, sale or abandonment of assets other than inventory, and professional and other fees incurred in connection with the Forbo acquisition or the restructuring of our EIMEA operations, not to exceed $85.0 million in the aggregate, and (x) not to exceed $65.0 million during fiscal year 2012 and (y) not to exceed $65.0 million during fiscal years 2013 and 2014 combined, minus extraordinary non-cash gains incurred other than in the ordinary course of business. For the Total Indebtedness / TTM EBITDA ratio, TTM EBITDA is adjusted for the pro forma results from Material Acquisitions and Material Divestitures as if the acquisition or divestiture occurred at the beginning of the calculation period. Additional detail is provided in the Current Report on Form 8-K dated March 5, 2012.

We believe we have the ability to meet all of our contractual obligations and commitments in fiscal 2013. Included in these obligations is the following scheduled debt payment:

• $7.5 million payment on term loans, due June 19, 2013, was paid using existing cash.

Selected Metrics of Liquidity

Key metrics we monitor are net working capital as a percent of annualized net revenue, trade account receivable days sales outstanding (DSO), inventory days on hand, free cash flow and debt capitalization ratio.

	June 1,	June 2,
	2013	2012
Net working capital as a percentage of annualized net revenue1	18.0%	16.8%
Accounts receivable DSO2	55 Days	52 Days
Inventory days on hand3	57 Days	51 Days
Free cash flow4	$(16.6) million	$14.3 million
Total debt to total capital ratio5	37.8%	46.8%

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¹ Current quarter net working capital (trade receivables, net of allowance for doubtful accounts plus inventory minus trade payables) divided by annualized net revenue (current quarter multiplied by four).

² Trade receivables net of the allowance for doubtful accounts at the balance sheet date multiplied by 56 (8 weeks) and divided by the net revenue for the last 2 months of the quarter.

³ Total inventory multiplied by 56 and divided by cost of sales (excluding delivery costs) for the last 2 months of the quarter.

⁴  Year-to-date net cash provided by (used in) operations from continuing operations, less purchased property, plant and equipment and dividends paid.

⁵  Total debt divided by (total debt plus total stockholders’ equity).

Another key metric is the return on invested capital, or ROIC. The calculation is represented by total return divided by total invested capital.

• Total return is defined as: gross profit less SG&A expenses, less taxes at the effective tax rate plus income from equity method investments. Total return is calculated using trailing 12 month information.

• Total invested capital is defined as the sum of notes payable, current maturities of long-term debt, long-term debt, redeemable non-controlling interest and total equity.

We believe ROIC provides a true measure of return on capital invested and is focused on the long term. The following table shows the ROIC calculations based on the definition above:

	Trailing 12 months			Trailing 12 months
($ in millions)	as of June 1, 2013			as of June 2, 2012
Gross profit	$	558.0		$	457.8
Selling, general and administrative expenses		(378.2	)		(316.7	)
Income taxes at effective rate		(53.2	)		(40.6	)
Income from equity method investments		9.0			9.0
Total return	$	135.6		$	109.5
Total invested capital		1,317.0			1,322.0
Return on invested capital		10.3	%		8.3	%

Summary of Cash Flows

Cash Flows from Operating Activities from Continuing Operations:

	26 Weeks Ended
	June 1,		June 2,
($ in millions)	2013		2012
Net cash provided by operating activities	$	40.7	$	34.8

Net income including non-controlling interests was $46.8 million in the first six months of 2013 compared to $17.3 million in the first six months of 2012. Depreciation and amortization expense totaled $30.0 million in the first six months of 2013 compared to $26.0 million in the first six months of 2012. The higher depreciation and amortization in 2013 is related to depreciation and amortization of assets related to the acquired business. Accrued compensation was a use of cash of $12.0 million in 2013 compared to a source of cash of $7.5 million last year. The use of cash in 2013 is related to the timing of payments of severance related costs for the Business Integration Project. The source of cash in 2012 is related to the accrual of severance related costs as part of our Business Integration Project that had not been paid at the end of the second quarter. Other assets was a use of cash in 2013 of $9.0 million compared to a source of cash of $15.9 million last year. The use of cash in 2013 was primarily related to the increase in prepaid taxes and expenses. The 2012 source of cash was primarily related to the decrease in prepaid taxes. Income taxes payable was a use of cash of $8.2 million in the first six months of 2013 related to income tax payments.

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Changes in net working capital (trade receivables, inventory and trade payables) accounted for a use of cash of $14.8 million compared to a use of cash of $34.7 million last year. The table below provides the cash flow impact due to changes in the components of net working capital:

	26 Weeks Ended
	June 1,			June 2,
($ in millions)	2013			2012
Trade receivables, net	$	1.2		$	(19.7	)
Inventory		(17.0	)		(26.8	)
Trade payables		1.0			11.8
Total cash flow impact	$	(14.8	)	$	(34.7	)

• Trade Receivables, net – Trade Receivables, net was a source of cash of $1.2 million in 2013 compared to a use of cash of $19.7 million in 2012. The source of cash in 2013 compared to the use of cash in 2012 is related to lower sales activity in the second quarter of 2013 compared to 2012. The DSO was 55 days at June 1, 2013 and 52 days at June 2, 2012.

• Inventory – Inventory was a use of cash of $17.0 million in 2013 and $26.8 million in 2012. The 2013 use of cash is related to the normal seasonal building of inventory and increased inventory to support the manufacturing transitions as part of the Business Integration Project. The 2012 increase is related to the seasonal building of inventory in the first two quarters after the downward management of our inventory in the fourth quarter of 2011. Inventory days on hand were 57 days as of June 1, 2013 and 51 days as of June 2, 2012.

• Trade Payables – For the first six months of 2013 and 2012 trade payables was a source of cash of $1.0 million and $11.8 million, respectively. The lower source of cash in 2013 reflects lower inventory purchases compared to 2012. The source of cash in 2012 was due to the increase in inventory purchases in the first half of 2012.

Cash Flows from Investing Activities from Continuing Operations:

	26 Weeks Ended
	June 1,			June 2,
($ in millions)	2013			2012
Net cash used in investing activities	$	(48.4	)	$	(416.9	)

Purchases of property, plant and equipment were $48.0 million in the first six months of 2013 as compared to $12.5 million for the same period of 2012. The increase in 2013 compared to 2012 was primarily related to capital expenditures for the Business Integration Project. In the second quarter of 2013 we purchased technology for the use in electronics markets for $2.4 million. We acquired the global industrial adhesives business of Forbo Holding AG in 2012 for $404.7 million. In the first quarter of 2013, an adjustment of the purchase price for the Forbo industrial adhesives business acquisition reduced cash used in investing activities by $1.6 million. See Note 2 to Condensed Consolidated Financial Statements.

Cash Flows from Financing Activities from Continuing Operations:

	26 Weeks Ended
	June 1,			June 2,
($ in millions)	2013			2012
Net cash used in financing activities	$	(31.0	)	$	380.9

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Proceeds from long-term debt in the first six months of 2013 were $95.0 million. In the first six months of 2012 proceeds from long-term debt were $490.0 million of which $400.0 million was used for financing the acquisition. Repayments of long-term debt were $110.0 million in the first six months of 2013 compared to $103.1 million for the same period of 2012. Cash generated from the exercise of stock options was $4.4 million and $6.0 million for the first six months of 2013 and 2012, respectively. Repurchases of common stock were $7.1 million in the first six months of 2013 compared to $1.3 million in the same period of 2012. The higher 2013 repurchases of common stock were due to $4.8 million of repurchases from our 2010 share repurchase program and higher repurchases related to statutory minimum tax withholding in conjunction with the vesting of restricted stock.

Cash Flows from Discontinued Operations:

	26 Weeks Ended
	June 1			June 2
($ in millions)	2013			2012
Cash provided by (used in) operating activities of discontinued operations	$	(0.1	)	$	6.0
Cash provided by investing activities of discontinued operations	$	—		$	0.8
Net cash provided by (used in) discontinued operations	$	(0.1	)	$	6.8

Cash flows from discontinued operations includes cash generated from operations and investing activities of the Central America Paints business.

Forward-Looking Statements and Risk Factors

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In this Quarterly Report on Form 10-Q, we discuss expectations regarding our future performance which include anticipated financial performance, savings from restructuring and process initiatives, global economic conditions, liquidity requirements, the impact of litigation and environmental matters, the effect of new accounting pronouncements and one-time accounting charges and credits, and similar matters. This Quarterly Report on Form 10-Q contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of words like “plan,” “expect,” “aim,” “believe,” “project,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could” (including the negative or variations thereof) and other expressions that indicate future events and trends. These plans and expectations are based upon certain underlying assumptions, including those mentioned with the specific statements. Such assumptions are in turn based upon internal estimates and analyses of current market conditions and trends, our plans and strategies, economic conditions and other factors. These plans and expectations and the assumptions underlying them are necessarily subject to risks and uncertainties inherent in projecting future conditions and results. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions and expectations proves to be inaccurate or is unrealized. In addition to the factors described in this report, Part II, Item 1A. Risk Factors in this report and Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 1, 2012, identify some of the important factors that could cause our actual results to differ materially from those in any such forward-looking statements. This list of important factors does not include all such factors nor necessarily present them in order of importance. In order to comply with the terms of the safe harbor, we have identified these important factors which could affect our financial performance and could cause our actual results for future periods to differ materially from the anticipated results or other expectations expressed in the forward-looking statements. Additionally, the variety of products sold by us and the regions where we do business makes it difficult to determine with certainty the increases or decreases in revenues resulting from changes in the volume of products sold, currency impact, changes in geographic and product mix and selling prices. Our best estimates of these changes as well as changes in other factors have been included. References to volume changes include volume, product mix and delivery charges, combined. These factors should be considered, together with any similar risk factors or other cautionary language, which may be made elsewhere in this Quarterly Report on Form 10-Q.

We may refer to Part II, Item 1A. Risk Factors and this section of the Form 10-Q to identify risk factors related to other forward looking statements made in oral presentations, including investor conferences and/or webcasts open to the public.

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This disclosure, including that under “Forward-Looking Statements and Risk Factors,” and other forward-looking statements and related disclosures made by us in this report and elsewhere from time to time, represents our best judgment as of the date the information is given. We do not undertake responsibility for updating any of such information, whether as a result of new information, future events, or otherwise, except as required by law. Investors are advised, however, to consult any further public company disclosures (such as in filings with the Securities and Exchange Commission or in company press releases) on related subjects.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market Risk: We are exposed to various market risks, including changes in interest rates, foreign currency rates and prices of raw materials. Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and cost of raw materials.

Our financial performance may be negatively affected by the unfavorable economic conditions. Recessionary economic conditions may have an adverse impact on our sales volumes, pricing levels and profitability. As domestic and international economic conditions change, trends in discretionary consumer spending also become unpredictable and subject to reductions due to uncertainties about the future. A general reduction in consumer discretionary spending due to recession in the domestic and international economies, or uncertainties regarding future economic prospects, could have a material adverse effect on our results of operations.

Interest Rate Risk: Exposure to changes in interest rates result primarily from borrowing activities used to fund operations. Committed floating rate credit facilities are used to fund a portion of operations. We believe that probable near-term changes in interest rates would not materially affect financial condition, results of operations or cash flows. The annual impact on interest expense of a one-percentage point interest rate change on the outstanding balance of our variable rate debt as of June 1, 2013 would be approximately $1.2 million or $0.02 per diluted share.

Foreign Exchange Risk: As a result of being a global enterprise, there is exposure to market risks from changes in foreign currency exchange rates, which may adversely affect operating results and financial condition. Approximately 58 percent of net revenue was generated outside of the United States for the first six months of 2013. Principal foreign currency exposures relate to the Euro, British pound sterling, Canadian dollar, Chinese renminbi, Japanese yen, Australian dollar, Swiss franc, Argentine peso, Brazilian real, Columbian peso, Mexican peso, Turkish lira, Egyptian pound, Indian rupee and Malaysian ringgit.

Our objective is to balance, where possible, local currency denominated assets to local currency denominated liabilities to have a natural hedge and minimize foreign exchange impacts. We enter into cross border transactions through importing and exporting goods to and from different countries and locations. These transactions generate foreign exchange risk as they create assets, liabilities and cash flows in currencies other than the local currency. This also applies to services provided and other cross border agreements among subsidiaries.

We take steps to minimize risks from foreign currency exchange rate fluctuations through normal operating and financing activities and, when deemed appropriate, through the use of derivative instruments. We do not enter into any speculative positions with regard to derivative instruments.

From a sensitivity analysis viewpoint, based on the financial results of the first six months of 2013, and foreign currency balance sheet positions as of June 1, 2013, a hypothetical overall 10 percent change in the U.S. dollar would have resulted in a change in net income attributable to H.B. Fuller of approximately $3.0 million or $0.06 per diluted share.

Raw Materials: The principal raw materials used to manufacture products include resins, polymers, synthetic rubbers, vinyl acetate monomer and plasticizers. We generally avoid single source supplier arrangements for raw materials. While alternate supplies of most key raw materials are available, unplanned supplier production outages may lead to strained supply-demand situations for several key raw materials such as tackifyers and base polymers. There is also tightness in feed stream chemicals such as ethylene and propylene.

For the six months ended June 1, 2013, our single largest expenditure was the purchase of raw materials. Our objective is to purchase raw materials that meet both our quality standards and production needs at the lowest total cost. Most raw materials are purchased on the open market or under contracts that limit the frequency but not the magnitude of price increases. In some cases, however, the risk of raw material price changes is managed by strategic sourcing agreements which limit price increases to increases in supplier feedstock costs, while requiring decreases as feedstock costs decline. The leverage of having substitute raw materials approved for use wherever possible is used to minimize the impact of possible price increases.

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Item 4. Controls and Procedures

(a) Controls and procedures

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our president and chief executive officer and senior vice president, chief financial officer, of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (Exchange Act)). Based on this evaluation, the president and chief executive officer and the senior vice president, chief financial officer concluded that, as of June 1, 2013, our disclosure controls and procedures were effective (1) to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (2) to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to us, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) Change in internal control over financial reporting

There were no changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected or are reasonably likely to materially affect our internal control over financial reporting, as defined in Rule 13a-15(f) under the Exchange Act.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Environmental Matters. From time to time, we become aware of compliance matters relating to, or receive notices from, federal, state or local entities regarding possible or alleged violations of environmental, health or safety laws and regulations. We review the circumstances of each individual site, considering the number of parties involved, the level of potential liability or contribution of us relative to the other parties, the nature and magnitude of the hazardous substances involved, the method and extent of remediation, the estimated legal and consulting expense with respect to each site and the time period over which any costs would likely be incurred. Also, from time to time, we are identified as a “potentially responsible party” (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and/or similar state laws that impose liability for costs relating to the clean up of contamination resulting from past spills, disposal or other release of hazardous substances. We are also subject to similar laws in some of the countries where current and former facilities are located. Our environmental, health and safety department monitors compliance with applicable laws on a global basis. To the extent we can reasonably estimate the amount of our probable liabilities for environmental matters, we establish a financial provision.

Currently we are involved in various environmental investigations, clean up activities and administrative proceedings and lawsuits. In particular, we are currently deemed a PRP in conjunction with numerous other parties, in a number of government enforcement actions associated with hazardous waste sites. As a PRP, we may be required to pay a share of the costs of investigation and clean up of these sites. In addition, we are engaged in environmental remediation and monitoring efforts at a number of current and former operating facilities. While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow. However, adverse developments and/or periodic settlements could negatively impact the results of operations or cash flows in one or more future periods.

Other Legal Proceedings. From time to time and in the ordinary course of business, we are a party to, or a target of, lawsuits, claims, investigations and proceedings, including product liability, personal injury, contract, patent and intellectual property, environmental, health and safety, tax and employment matters. While we are unable to predict the outcome of these matters, we have concluded, based upon currently available information, that the ultimate resolution of any pending matter, individually or in the aggregate, including the asbestos litigation described in the following paragraphs, will not have a material adverse effect on our results of operations, financial condition or cash flow.

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We have been named as a defendant in lawsuits in which plaintiffs have alleged injury due to products containing asbestos manufactured more than 30 years ago. The plaintiffs generally bring these lawsuits against multiple defendants and seek damages (both actual and punitive) in very large amounts. In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable injuries or that the injuries suffered were the result of exposure to products manufactured by us. We are typically dismissed as a defendant in such cases without payment. If the plaintiff presents evidence indicating that compensable injury occurred as a result of exposure to our products, the case is generally settled for an amount that reflects the seriousness of the injury, the length, intensity and character of exposure to products containing asbestos, the number and solvency of other defendants in the case, and the jurisdiction in which the case has been brought.

A significant portion of the defense costs and settlements in asbestos-related litigation is paid by third parties, including indemnification pursuant to the provisions of a 1976 agreement under which we acquired a business from a third party. Currently, this third party is defending and paying settlement amounts, under a reservation of rights, in most of the asbestos cases tendered to the third party.

In addition to the indemnification arrangements with third parties, we have insurance policies that generally provide coverage for asbestos liabilities (including defense costs). Historically, insurers have paid a significant portion of our defense costs and settlements in asbestos-related litigation. However, certain of our insurers are insolvent. We have entered into cost-sharing agreements with our insurers that provide for the allocation of defense costs and, in some cases, settlements and judgments, in asbestos-related lawsuits. Under these agreements, we are required in some cases to fund a share of settlements and judgments allocable to years in which the responsible insurer is insolvent. In addition, to delineate our rights under certain insurance policies, in October 2009, we commenced a declaratory judgment action against one of our insurers in the United States District Court for the District of Minnesota. Additional insurers have been brought into the action to address issues related to the scope of their coverage.

A summary of the number of and settlement amounts for asbestos-related lawsuits and claims is as follows:

	26 Weeks Ended				3 Years Ended
($ in millions)	June 1, 2013		June 2, 2012		December 1, 2012
Lawsuits and claims settled		—		8		20
Settlement amounts	$	—	$	0.5	$	1.5
Insurance payments received or expected to be received	$	—	$	0.4	$	1.2

We do not believe that it would be meaningful to disclose the aggregate number of asbestos-related lawsuits filed against us because relatively few of these lawsuits are known to involve exposure to asbestos-containing products that we manufactured. Rather, we believe it is more meaningful to disclose the number of lawsuits that are settled and result in a payment to the plaintiff. To the extent we can reasonably estimate the amount of our probable liabilities for pending asbestos-related claims, we establish a financial provision and a corresponding receivable for insurance recoveries.

Based on currently available information, we have concluded that the resolution of any pending matter, including asbestos-related litigation, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow. However, adverse developments and/or periodic settlements could negatively impact the results of operations or cash flows in one or more future periods.

Item 1A. Risk Factors

This Form 10-Q contains forward-looking statements concerning our future programs, products, expenses, revenue, liquidity and cash needs as well as our plans and strategies. These forward-looking statements are based on current expectations and we assume no obligation to update this information. Numerous factors could cause actual results to differ significantly from the results described in these forward-looking statements, including the risk factors identified under Part I, Item 1A. Risk Factors contained in our Annual Report on Form 10-K for the fiscal year ended December 1, 2012. There have been no material changes in the risk factors disclosed by us under Part I, Item 1A. Risk Factors contained in the Annual Report on Form 10-K for the fiscal year ended December 1, 2012.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

Information on our purchases of equity securities during the second quarter follows:

Period	(a) Total Number of Shares Purchased1		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program		(d) Maximum Approximate Dollar Value of Shares that may yet be Purchased Under the Plan or Program (millions)
March 3, 2013 – April 6, 2013		52,346	$	38.69		52,346	$	87.5
April 7, 2013 – May 4, 2013		74,626	$	37.85		72,654	$	84.7
May 5, 2013 – June 1, 2013		—	$	—		—	$	84.7

¹  The total number of shares purchased includes: (i) shares purchased under the board’s authorization described below and (ii) shares withheld to satisfy the employees’ withholding taxes upon vesting of restricted stock.

Repurchases of common stock are made to support our stock-based employee compensation plans and for other corporate purposes. Upon vesting of restricted stock awarded to employees, shares are withheld to cover the employees’ minimum withholding taxes.

On September 30, 2010, the Board of Directors authorized a new share repurchase program of up to $100.0 million of our outstanding common shares. Under the program, we are authorized to repurchase shares for cash on the open market, from time to time, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. The timing of such repurchases is dependent on price, market conditions and applicable regulatory requirements. Upon repurchase of the shares, we reduced our common stock for the par value of the shares with the excess being applied against additional paid-in capital.

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Item 6. Exhibits

31.1	Form of 302 Certification – James J. Owens
31.2	Form of 302 Certification – James R. Giertz
32.1	Form of 906 Certification – James J. Owens
32.2	Form of 906 Certification – James R. Giertz
101	The following materials from the H.B. Fuller Company Quarterly Report on Form 10-Q for the quarter ended June 1, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Total Equity, (v) the Condensed Consolidated Statement of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	H.B. Fuller Company
Dated: June 28, 2013	/s/ James R. Giertz
	James R. Giertz
	Senior Vice President,
	Chief Financial Officer

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Exhibit Index

Exhibits
31.1	Form of 302 Certification – James J. Owens
31.2	Form of 302 Certification – James R. Giertz
32.1	Form of 906 Certification – James J. Owens
32.2	Form of 906 Certification – James R. Giertz
101	The following materials from the H.B. Fuller Company Quarterly Report on Form 10-Q for the quarter ended June 1, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Total Equity, (v) the Condensed Consolidated Statement of Cash Flows and (vi) the Notes to Condensed Consolidated Financial Statements.

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, James J. Owens, certify that:

1. I have reviewed this report on Form 10-Q of H.B. Fuller Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d–15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 28, 2013

/s/ James J. Owens

James J. Owens

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, James R. Giertz, certify that:

1. I have reviewed this report on Form 10-Q of H.B. Fuller Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-115(e) and 15d-115(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d–15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 28, 2013

/s/ James R. Giertz

James R. Giertz

Senior Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

I, James J. Owens, in connection with the Quarterly Report of H.B. Fuller Company on Form 10-Q for the quarter ended June 1, 2013 (the “Report”), hereby certify that:

(a) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)), and

(b) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of H.B. Fuller Company.

Date: June 28, 2013

/s/ James J. Owens

James J. Owens

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

I, James R. Giertz, in connection with the Quarterly Report of H.B. Fuller Company on Form 10-Q for the quarter ended June 1, 2013 (the “Report”), hereby certify that:

(a) the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)), and

(b) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of H.B. Fuller Company.

Date: June 28, 2013

/s/ James R. Giertz

James R. Giertz

Senior Vice President, Chief Financial Officer

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Inventories

6 Months Ended

Jun. 01, 2013

Inventories Abstract

Inventories Disclosure

Note 8: Inventories
The composition of inventories follows:
	June 1,		December 1,
	2013		2012
Raw materials	$	117,932	$	110,820
Finished goods		125,925		119,123
LIFO reserve		(21,476)		(21,412)
Total inventories	$	222,381	$	208,531

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Goodwill (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 01, 2013
Goodwill [Line Items]
Balance at	$ 254,345
Currency Impact	(2,460)
Balance at	252,475
Forbo Industrial Adhesives Acquisition [Member]
Goodwill [Line Items]
Goodwill Acquired During Period	343
Engent Inc Acquisition [Member]
Goodwill [Line Items]
Goodwill Acquired During Period	$ 247

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 01, 2013	Dec. 01, 2012
Current assets:
Cash and cash equivalents	$ 161,185	$ 200,436
Trade receivables, net of allowances	317,048	320,152
Inventories	222,381	208,531
Other current assets	83,557	70,225
Current assets of discontinued operations	1,865	0
Total current assets	786,036	799,344
Property, plant and equipment	942,995	907,720
Accumulated depreciation	(589,873)	(578,704)
Property, plant and equipment, net	353,122	329,016
Goodwill	252,475	254,345
Other intangibles, net	223,630	233,355
Other assets	158,590	168,395
Long-term assets of discontinued operations	0	1,865
Total assets	1,773,853	1,786,320
Current liabilities:
Notes payable	15,749	22,613
Current maturities of long-term debt	7,500	22,500
Trade payables	166,664	163,062
Accrued compensation	59,317	71,400
Income taxes payable	17,928	24,865
Other accrued expenses	43,476	45,605
Current liabilities of discontinued operations	5,000	74
Total current liabilities	315,634	350,119
Long-term debt, excluding current maturities	473,159	475,112
Accrued pension liabilities	98,649	105,220
Other liabilities	65,664	68,190
Long-term liabilities of discontinued operations	0	5,000
Total liabilities	953,106	1,003,641
Commitments and contingencies	0	0
Redeemable non-controlling interest	3,948	3,981
H.B. Fuller stockholders' equity:
Preferred stock (no shares outstanding) Shares authorized 10,045,900
Common stock	50,223	49,903
Additional paid-in capital	43,461	37,965
Retained earnings	867,270	830,031
Accumulated other comprehensive income (loss)	(144,546)	(139,626)
Total H.B. Fuller stockholders' equity	816,408	778,273
Non-controlling interests	391	425
Total equity	816,799	778,698
Total liabilities, redeemable non-controlling interest and total equity	$ 1,773,853	$ 1,786,320

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Accounting Policies

6 Months Ended

Jun. 01, 2013

Accounting Policies [Abstract]

Accounting Policies Disclosure

Note 1: Accounting Policies

The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a fair presentation of results of operations, financial position, and cash flows in conformity with U.S. generally accepted accounting principles. In our opinion, the unaudited interim Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature considered necessary for the fair presentation of the results for the periods presented. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from these estimates. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 1, 2012 as filed with the Securities and Exchange Commission.

Recently Adopted Accounting Pronouncements:

In June 2011, the FASB issued Accounting Standards Update (ASU)No. 2011-05, “Presentation of Comprehensive Income.” These updates require entities to present items of net income and other comprehensive income either in a single continuous statement, or in separate, but consecutive, statements of net income and other comprehensive income. The new requirements do not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. The updates are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retroactively. We adopted the new requirements in the first quarter of our 2013 fiscal year. The adoption of these updates did not have an impact on our condensed consolidated results of operations or financial condition.

New Accounting Pronouncements:

In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income: Reporting of Amounts Reclassified out of AOCI” which further amended the disclosure requirements for comprehensive income. The update requires entities to disclose items reclassified out of accumulated other comprehensive income (AOCI) and into net income in a single location either in the notes to the condensed consolidated financial statements or parenthetically on the face of the condensed consolidated statements of income. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012 which is our fiscal year 2014 and is to be applied prospectively. Since this standard impacts disclosure requirements only, its adoption will not have a material impact on our condensed consolidated results of operations or financial condition.

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Share Repurchase Program

6 Months Ended

Jun. 01, 2013

Share Repurchase Program Disclosure [Abstract]

Share Repurchase Program [Text Block]

Note 15: Share Repurchase Program

On September 30, 2010, the Board of Directors authorized a share repurchase program of up to $100,000 of our outstanding common shares. Under the program, we are authorized to repurchase shares for cash on the open market, from time to time, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. The timing of such repurchases is dependent on price, market conditions and applicable regulatory requirements. Upon repurchase of the shares, we reduced our common stock for the par value of the shares with the excess being applied against additional paid-in capital.

During the second quarter of 2013 we repurchased shares under this program, with an aggregate value of $4,775. Of this amount, $125 reduced common stock and $4,650 reduced additional paid-in capital. There were no shares repurchased under this program during the first quarter of 2013 or the first six months of 2012.

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Impairment of Long-lived Asset (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jun. 02, 2012
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment charge amount	$ 671

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Financial Instruments

6 Months Ended

Jun. 01, 2013

Financial Instruments Abstract

Financial Instruments Disclosure

Note 9: Financial Instruments

As a result of being a global enterprise, our earnings, cash flows and financial position are exposed to foreign currency risk from foreign currency denominated receivables and payables. These items are denominated in various foreign currencies, including the Euro, British pound sterling, Canadian dollar, Chinese renminbi, Japanese yen, Australian dollar, Swiss franc, Argentine peso, Brazilian real, Colombian peso, Mexican peso, Turkish lira, Egyptian pound, Indian rupee and Malaysian ringgit.

Our objective is to balance, where possible, local currency denominated assets to local currency denominated liabilities to have a natural hedge and minimize foreign exchange impacts. We take steps to minimize risks from foreign currency exchange rate fluctuations through normal operating and financing activities and, when deemed appropriate, through the use of derivative instruments. We do not enter into any speculative positions with regard to derivative instruments.

We enter into derivative contracts with a group of investment grade multinational commercial banks. We evaluate the credit quality of each of these banks on a periodic basis as warranted.

Effective March 5, 2012, we entered into two cross-currency swap agreements to convert a notional amount of $151,598 of foreign currency denominated intercompany loans into US dollars. One of the cross-currency swaps matures in 2014 and the other swap matures in 2015. As of June 1, 2013, the combined fair value of the swaps were an asset of $1,769 and were included in other assets in the Condensed Consolidated Balance Sheets. The swaps were designated as cash-flow hedges foraccounting treatment. The lesser amount between the cumulative change in the fair value of the actual swaps and the cumulative change in the fair value of hypothetical swaps is recorded in accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheets. The difference between the cumulative change in the fair value of the actual swaps and the cumulative change in the fair value of hypothetical swaps are recorded as other income (expense), net in the Condensed Consolidated Statements of Income. In a perfectly effective hedge relationship, the two fair value calculations would exactly offset each other. Any difference in the calculation represents hedge ineffectiveness. The ineffectiveness calculations as of June 1, 2013 resulted in additional pre-tax gain of $6year-to-date as the change in fair value of the cross-currency swaps was more than the change in the fair value of the hypothetical swaps. The amount in accumulated other comprehensive income (loss) related to cross-currency swaps was a loss of $205 at June 1, 2013. The estimated net amount of the existing loss that is reported in accumulated other comprehensive income (loss) at June 1, 2013 that is expected to be reclassified into earnings within the next twelve months is $163. At June 1, 2013, we believe the originalforecastedtransactions will occur, therefore, we do not believe any gains or losses will be reclassified into earnings as a result of the discontinuance of these cash flow hedges.

The following table summarizes the cross-currency swaps outstanding as of June 1, 2013:

	Fiscal Year of Expiration	Interest Rate	Notional Value	Fair Value
Pay EUR Receive USD	2014	4.15% 4.30%	$ 52,860	$ 833
Pay EUR Receive USD	2015	4.30% 4.45%	$ 98,738	$ 936
Total			$ 151,598	$ 1,769

Except for the two cross currency swap agreements listed above, foreign currency derivative instruments outstanding are not designated as hedges for accounting purposes. The gains and losses related to mark-to-market adjustments are recognized as other income or expense in the income statement during the periods in which the derivative instruments are outstanding. See Note 14 to Condensed Consolidated Financial Statements for fair value amounts of these derivative instruments.

As of June 1, 2013, we had forward foreign currency contracts maturing between June 5, 2013 and November 1, 2013. The mark-to-market effect associated with these contracts, on a net basis, was a gain of $481 at June 1, 2013. These gains were largely offset by the underlying transaction gains and losses resulting from the foreign currency exposures for which these contracts relate.

We have interest rate swap agreements to convert $75,000 of our Senior Notes to variable interest rates. The change in fair value of the Senior Notes, attributable to the change in the risk being hedged, was a liability of $6,909 at June 1, 2013 and was included in long-term debt in the Condensed Consolidated Balance Sheets. The fair values of the swaps in total were an asset of $7,133 at June 1, 2013 and were included in other assets in the Condensed Consolidated Balance Sheets. The swaps were designated for hedge accounting treatment as fair value hedges. The changes in the fair value of the swap and the fair value of the Senior Notes attributable to the change in the risk being hedged are recorded as other income (expense), net in the Condensed Consolidated Statements of Income. In a perfectly effective hedge relationship, the two fair value calculations would exactly offset each other. Any difference in the calculation represents hedge ineffectiveness. The calculation as of June 1, 2013 resulted in additional pre-tax loss of $387 year-to-date as the fair value of the interest rate swaps decreased by more than the change in the fair value of the Senior Notes attributable to the change in the risk being hedged.

Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities in the customer base and their dispersion across many different industries and countries. As of June 1, 2013, there were no significant concentrations of credit risk.

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Financial Instruments (Details) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended						6 Months Ended
	Jun. 01, 2013 USD ($)	Jun. 02, 2012 USD ($)	Mar. 03, 2012 USD ($)	Jun. 01, 2013 USD ($)	Jun. 02, 2012 USD ($)	Nov. 29, 2014 USD ($)	Dec. 01, 2012 USD ($)	Mar. 03, 2012 CHF	Dec. 03, 2011 USD ($)	Jun. 01, 2013 Interest Rate Swap [Member] USD ($)	Jun. 01, 2013 First Cross Currency Swap [Member] USD ($)	Jun. 01, 2013 Second Cross Currency Swap [Member] USD ($)
Cross Currency Swaps [Abstract]
Notional amount of cross currency swaps	$ 151,598			$ 151,598							$ 52,860	$ 98,738
Fair value of cross currency swaps	1,769			1,769			1,610				833	936
Cross currency hedge ineffectiveness				6
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Cross Currency Swap	(205)			(205)		163	(394)
Fiscal year of expiration											2014	2015
Interest rate minimum											4.15%	4.30%
Interest rate maximum											4.30%	4.45%
Value of hedged item in a fair value hedge										75,000
Foreign currency				481
Change in Fair Value of Senior Notes										(6,909)
The fair values of the swaps (assets) in total										7,133
Hedge ineffectiveness										387
Mark to market gain	0	(4)		0	11,621
Notional Amount of Foreign Currency Derivatives									100,000
Fair value of derivitive expensed			841
Foreign Currency Contract Foreign Currency Amount								370,000

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Redeemable Non-Controlling Interest (Details) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 01, 2013 USD ($)	Jun. 01, 2013 EUR (€)	Dec. 01, 2012 USD ($)	Aug. 27, 2011 EUR (€)
Redeemable Noncontrolling Interest [Line Items]
Redemption option minimum				€ 3,500
Current redemption value of the option		3,500
Net income (loss) attributed to redeemable non-controlling interest	161
Accretion adjustment to redemption value	48
Distributions to non-controlling shareholder	(244)
Foreign currency translation adjustment	2
Balance of redeemable non-controlling interest	$ 3,948		$ 3,981

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Goodwill (Table)

6 Months Ended

Jun. 01, 2013

Goodwill Table [Abstract]

Purchased Goodwill by Segment (Table)

Balance at December 1, 2012		$	254,345
	Forbo Industrial Adhesives acquisition (Note 2)		343
	Engent, Inc. acquisition (Note 2)		247
	Currency impact		(2,460)
Balance at June 1, 2013		$	252,475

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Subsequent Event

6 Months Ended

Jun. 01, 2013

Subsequent Event Abstract

Subsequent Event Disclosure

Note 18: Subsequent Event

On June 6, 2013 we completed the purchase of Plexbond Quimica, S.A., a provider of chemical polyurethane specialties and polyester resins,for approximately $12,000.Plexbond Quimica, S.A. operates a manufacturing facility in Curitiba, Brazil. The acquisition will be recorded in our Latin America operating segment.

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Redeemable Non-Controlling Interest

6 Months Ended

Jun. 01, 2013

Temporary Equity Disclosure [Abstract]

Redeemable Non-Controlling Interest Disclosure

Note 17: Redeemable Non-Controlling Interest

We account for the non-controlling interest in H.B.Fuller Kimya San. Tic A.S. (HBF Kimya) as a redeemable non-controlling interest because both the non-controlling shareholder and H.B. Fuller have an option, exercisable beginning August 1, 2018, to require the redemption of the shares owned by the non-controlling shareholder at a price determined by a formula based on 24 months trailing EBITDA. Since the option makes the redemption of the non-controlling ownership shares of HBF Kimya outside of our control, these shares are classified as a redeemable non-controlling interest in temporary equity in the Condensed Consolidated Balance Sheets. The option is subject to a minimum price of €3,500. The redemption value of the option, if it were currently redeemable, is estimated to be €3,500.

HBF Kimya's results of operations are consolidated in our financial statements. Both the non-controlling interest and the accretion adjustment to redemption value are included in income or loss attributable to non-controlling interests in the Condensed Consolidated Statements of Income and in the carrying value of the redeemable non-controlling interest on the Condensed Consolidated Balance Sheets. HBF Kimya's functional currency is the Turkish lira and changes in exchange rates will affect the reported amount of the redeemable non-controlling interest. As of June 1, 2013 the redeemable non-controlling interest was:

Balance at December 1, 2012	$	3,981
Net income attributed to redeemable non-controlling interest		161
Accretion adjustment to redemption value		48
Distributions to non-controlling shareholder		(244)
Foreign currency translation adjustment		2
Balance at June 1, 2013	$	3,948

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Components of Net Periodic Cost (Benefit) related to Pension and Other Postretirement Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Jun. 01, 2013	Jun. 02, 2012
Pension Benefits US Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 27	$ 22	$ 54	$ 44
Interest cost	3,680	4,024	7,360	8,048
Expected return on assets	(5,680)	(5,938)	(11,360)	(11,876)
Amorization of Prior service cost	12	12	24	24
Amortization of Actuarial (gain)/loss	1,685	964	3,370	1,928
Net periodic cost (benefit)	(276)	(916)	(552)	(1,832)
Pension Benefits Foreign Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	416	329	839	589
Interest cost	1,820	2,165	3,689	3,894
Expected return on assets	(2,318)	(2,136)	(4,700)	(3,936)
Amorization of Prior service cost	(1)	(1)	(2)	(2)
Amortization of Actuarial (gain)/loss	935	634	1,886	1,263
Net periodic cost (benefit)	852	991	1,712	1,808
Other Postretirement [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	156	135	312	270
Interest cost	533	617	1,066	1,234
Expected return on assets	(931)	(816)	(1,862)	(1,632)
Amorization of Prior service cost	(1,034)	(1,173)	(2,068)	(2,346)
Amortization of Actuarial (gain)/loss	1,429	1,283	2,858	2,578
Net periodic cost (benefit)	$ 153	$ 46	$ 306	$ 104

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Inventories (Table)

6 Months Ended

Jun. 01, 2013

Inventories Table [Abstract]

Schedule of Inventory, Current [Table Text Block]

Note 8: Inventories
The composition of inventories follows:
	June 1,		December 1,
	2013		2012
Raw materials	$	117,932	$	110,820
Finished goods		125,925		119,123
LIFO reserve		(21,476)		(21,412)
Total inventories	$	222,381	$	208,531

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Redeemable Non-Controlling Interest (Table)

6 Months Ended

Jun. 01, 2013

Redeemable Noncontrolling Interest Table [Abstract]

Redeemable Non-Controlling Interest [Table Text Block]

Balance at December 1, 2012	$	3,981
Net income attributed to redeemable non-controlling interest		161
Accretion adjustment to redemption value		48
Distributions to non-controlling shareholder		(244)
Foreign currency translation adjustment		2
Balance at June 1, 2013	$	3,948

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Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended		36 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Dec. 01, 2012 Asbestos Related Lawsuits And Claims [Member]
Product Liability Contingency [Line Items]
Lawsuits and claims settled	0	8	20
Settlement amounts	$ 0	$ 490	$ 1,535
Insurance Payments Received Or Expected To Be Received	$ 0	$ 350	$ 1,174

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 01, 2013

Accumulated Other Comprehensive Income Loss Tables [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Note 5: Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) follow:
	June 1, 2013
		Total		H.B. Fuller Stockholders		Non-controlling Interests
Foreign currency translation adjustment	$	41,693	$	41,684	$	9
Interest rate swap, net of taxes of $45		(115)		(115)		-
Cash-flow hedges, net of taxes of $129		(205)		(205)		-
Defined benefit pension plans adjustment, net of taxes of $101,535		(185,910)		(185,910)		-
Total accumulated other comprehensive income (loss)	$	(144,537)	$	(144,546)	$	9
		December 1, 2012
		Total		H.B. Fuller Stockholders		Non-controlling Interests
Foreign currency translation adjustment	$	50,802	$	50,754	$	48
Interest rate swap, net of taxes of $52		(135)		(135)		-
Cash-flow hedges, net of taxes of $248		(394)		(394)		-
Defined benefit pension plans adjustment, net of taxes of $103,661		(189,851)		(189,851)		-
Total accumulated other comprehensive income (loss)	$	(139,578)	$	(139,626)	$	48

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Earnings Per Share (Details) (USD $)	3 Months Ended			6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Mar. 03, 2012	Jun. 01, 2013	Jun. 02, 2012
Earnings Per Share Antidilutive Shares [Line Items]
Antidilutive shares not used in calculating diluted earnings per share calculations	0	4,652	0	0	4,652
Antidilutive Weighted Average Share Price Excluded From Computation Of Earnings Per Share Amount		$ 32.32			$ 32.32
Earnings Per Share Reconciliation [Line Items]
Weighted-average common shares - basic	49,935,000	49,652,000		49,876,000	49,509,000
Equivalent Shares From Share Based Compensations Plans	1,217,000	1,070,000		1,214,000	979,000
Weighted-average common and common equivalent shares - diluted	51,152,000	50,722,000		51,090,000	50,488,000
Stock Options To Purchase Shares At The Weighted Average Exercise Price Of $32.38 [Member]
Earnings Per Share Antidilutive Shares [Line Items]
Antidilutive shares not used in calculating diluted earnings per share calculations	0

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Impairment of Long-lived Asset

6 Months Ended

Jun. 01, 2013

Impairment of Long-lived Asset Disclosure Abstract

Impairment of Long-lived Asset Disclosure

Note 16: Impairment of Long-lived Asset

During the second quarter of 2012, we determined the fair value of one of our cost basis investments was lower than the investment value on our balance sheetbased on investor approval of a buy-out offer from the majority shareholder. As a result, we recorded an impairment charge of $671.

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Consolidated Statements of Total Equity (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]
Balance at, at Dec. 03, 2011	$ 705,577	$ 49,450	$ 23,770	$ 720,989	$ (89,005)	$ 373
Net income including non-controlling interests	125,855			125,622		233
Foreign currency translation	(2,957)				(2,985)	28
Defined benefit pension plans adjustment, net of tax	(47,283)				(47,283)
Interest rate swap, net of tax	41				41
Cash-flow hedges, net of taxes	(394)				(394)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	75,262
Dividends	(16,580)			(16,580)
Stock option exercises	7,401	426	6,975
Share-based compensation plans other, net	10,317	181	10,136
Tax benefit on share-based compensation plans	1,263		1,263
Repurchase of common stock	(4,333)	(154)	(4,179)
Redeemable non-controlling interest	(209)					(209)
Balance at, at Dec. 01, 2012	778,698	49,903	37,965	830,031	(139,626)	425
Net income including non-controlling interests	46,822			46,606		216
Foreign currency translation	(9,109)				(9,070)	(39)
Defined benefit pension plans adjustment, net of tax	3,941				3,941
Interest rate swap, net of tax	20				20
Cash-flow hedges, net of taxes	189				189
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	41,863
Dividends	(9,367)			(9,367)
Stock option exercises	4,371	236	4,135
Share-based compensation plans other, net	6,520	271	6,249
Tax benefit on share-based compensation plans	2,029		2,029
Repurchase of common stock	(7,104)	(187)	(6,917)
Redeemable non-controlling interest	(211)					(211)
Balance at, at Jun. 01, 2013	$ 816,799	$ 50,223	$ 43,461	$ 867,270	$ (144,546)	$ 391

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012
Cash flows from operating activities from continuing operations:
Net income including non-controlling interests	$ 46,822	$ 17,337
(Income) loss from discontinued operations, net of tax	0	1,330
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities from continuing operations:
Depreciation	18,887	18,030
Amortization	11,101	7,969
Deferred income taxes	(428)	1,393
(Income) from equity method investments, net of dividends received	4,984	(4,344)
Share-based compensation	6,215	5,012
Excess tax benefit from share-based compensation	(2,029)	(1,039)
Non cash charge for the sale of inventories revalued at the date of acquisition	0	3,314
Asset impairment charges	0	671
Change in assets and liabilities, net of effects of acquisitions and discontinued operations:
Trade receivables, net	1,152	(19,725)
Inventories	(16,950)	(26,764)
Other assets	(8,959)	15,944
Trade payables	1,046	11,780
Accrued compensation	(11,951)	7,467
Other accrued expenses	(1,888)	(721)
Income taxes payable	(8,231)	362
Accrued / prepaid pensions	(1,499)	(4,188)
Other liabilities	(4,280)	4,180
Other	6,719	(3,198)
Net cash provided by (used in) operating activities from continuing operations	40,711	34,810
Cash flows from investing activities from continuing operations:
Purchased property, plant and equipment	(48,039)	(12,504)
Purchased business	1,625	(404,725)
Purchased technology	(2,387)	0
Proceeds from sale of property, plant and equipment	353	352
Net cash provided by (used in) investing activities from continuing operations	(48,448)	(416,877)
Cash flows from financing activities from continuing operations:
Proceeds from long-term debt	95,000	490,000
Repayment of long-term debt	(110,000)	(103,125)
Net proceeds (repayments) from notes payable	(5,807)	(3,774)
Dividends paid	(9,294)	(7,968)
Distribution to redeemable non-controlling interest	(244)	0
Proceeds from stock options exercised	4,371	6,031
Excess tax benefit from share-based compensation	2,029	1,039
Repurchases of common stock	(7,104)	(1,295)
Net cash provided by (used in) financing activities from continuing operations	(31,049)	380,908
Effect of exchange rate changes	(391)	(6,030)
Net change in cash and cash equivalents from continuing operations	(39,177)	(7,189)
Cash provided by (used in) operating activities of discontinued operations	(74)	6,047
Cash provided by (used in) investing activities of discontinued operations, including proceeds from sale of business	0	792
Net change in cash and cash equivalents	(39,251)	(350)
Cash and cash equivalents at beginning of period	200,436	154,649
Cash and cash equivalents at end of period	161,185	154,299
Supplemental disclosure of cash flow information:
Dividends paid with company stock	73	58
Cash paid for interest	11,999	7,338
Cash paid for income taxes	$ 20,406	$ 2,953

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Acquisitions and Divestitures

6 Months Ended

Jun. 01, 2013

Acquisitions and Divestitures Abstract

Acquisitions and Divestitures Disclosure

Note 2: Acquisitions and Divestitures

Acquisitions

Engent, Inc.: On September 10, 2012 we acquired the outstanding shares of Engent, Inc., a provider of manufacturing, research and development services to the electronics industry. The purchase price of $7,881 was funded through existing cash and was recorded in our North America Adhesives operating segment.

In addition to the initial consideration, the former owners of the Engent, Inc. business are entitled to receive a series of annual cash payments based on certain financial performance criteria during the period September 10, 2012 through November 28, 2015 up to a maximum additional consideration of $2,000. We used a probability-weighted present value technique based on expected future cash flows to estimate the fair value of the contingent consideration. The resulting fair value of the contingent consideration was $1,200 which was recorded in other liabilities and increased goodwill. Each reporting period we determine the fair value of the contingent consideration liability and any changes in value are reflected in the Condensed Consolidated Statements of Income.

The following table summarizes the final fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition:

	Preliminary Valuation December 1, 2012		Fair Value Adjustments		Final Valuation
Current assets	$	603	$	-	$	603
Property, plant and equipment		1,471		-		1,471
Goodwill		5,434		247		5,681
Other intangibles
Customer relationships		2,300		-		2,300
Noncompetition agreements		400		-		400
Trademarks/trade names		300		-		300
Other assets		325		(305)		20
Current liabilities		(84)		(6)		(90)
Other liabilities		(1,668)		64		(1,604)
Contingent consideration liabilities		(1,200)		-		(1,200)
Total purchase price	$	7,881	$	-	$	7,881
The adjustments to the purchase price allocation primarily relate to non-current deferred tax assets and liabilities.

Forbo Industrial Adhesives. On March 5, 2012 we completed the acquisition of the global industrial adhesives and synthetic polymers business of Forbo Holding AG. The purchase price was 368,514 Swiss francs or $403,100 which we financed with the proceeds from our March 5, 2012 note purchase agreement and a term loan.

As of March 5, 2013, we completed our final purchase price allocation including final tax adjustments. The following table summarizes the fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition:

	Preliminary Valuation December 1, 2012		Purchase Price and Fair Value Adjustments		Final Valuation
Current assets	$	172,345	$	-	$	172,345
Property, plant and equipment		92,443		-		92,443
Goodwill		136,658		343		137,001
Other intangibles
Developed technology		42,190		-		42,190
Customer relationships		58,910		-		58,910
Trademarks/trade names		21,880		-		21,880
Other		479		-		479
Other assets		4,605		-		4,605
Current liabilities		(84,251)		(184)		(84,435)
Other liabilities		(40,534)		(1,784)		(42,318)
Total purchase price	$	404,725	$	(1,625)	$	403,100
The adjustments to the purchase price allocation primarily relate to non-current deferred tax liabilities and purchase price adjustments.

Divestitures

Central America Paints.On August 6, 2012 we completed the sale of our Central America Paints business to Compania Global de Pinturas S.A., a company of Inversiones Mundial S.A for cash proceeds of $118,566. In accordance with ASC 205-20 “Discontinued Operations”, we have classified the results of this business as discontinued operations. The operational results of this business are presented in the “Income from discontinued operations, net of tax” line item on the Condensed Consolidated Statements of Income. Also in accordance with ASC 205-20, we have not allocated general corporate charges to this business. The assets and liabilities of this business are presented on the Condensed Consolidated Balance Sheets as assets and liabilities of discontinued operations.

Revenue and income (loss) from discontinued operations for the period ended June 2, 2012were as follows:

	13 Weeks Ended		26 Weeks Ended
	June 2, 2012		June 2, 2012
Net revenue	$	26,321	$	56,129
Income from operations		3,819		6,662
Income taxes		(6,872)		(7,992)
Net income (loss) from discontinued operations	$	(3,053)	$	(1,330)

The major classes of assets and liabilities of discontinued operations as of June 1, 2013 and December 1, 2012 were as follows:

	June 1, 2013		December 1, 2012
Other current assets		1,865		-
Current assets of discontinued operations		1,865		-
Other assets		-		1,865
Long-term assets of discontinued operations		-		1,865
Trade payables		-		74
Other accrued expenses		5,000		-
Current liabilities of discontinued operations		5,000		74
Other liabilities		-		5,000
Long-term liabilities of discontinued operations		-		5,000

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Consolidated Statements of Cash Flows (Parentheticals) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012
Statement of Cash Flows Parentheticals [Abstract]
Capitalized interest	$ 443	$ 13

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Acquistions and Divestitures (Details) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 01, 2013 USD ($)	Sep. 01, 2012 USD ($)	Jun. 02, 2012 USD ($)	Jun. 01, 2013 USD ($)	Jun. 02, 2012 USD ($)	Aug. 31, 2013 USD ($)	Dec. 01, 2012 USD ($)	Jun. 01, 2013 Forbo Industrial Adhesive Business [Member] USD ($)	Dec. 01, 2012 Forbo Industrial Adhesive Business [Member] USD ($)	Jun. 02, 2012 Forbo Industrial Adhesive Business [Member] USD ($)	Jun. 02, 2012 Forbo Industrial Adhesive Business [Member] CHF	Jun. 01, 2013 Forbo Industrial Adhesive Business [Member] Intellectual property [Member] USD ($)	Dec. 01, 2012 Forbo Industrial Adhesive Business [Member] Intellectual property [Member] USD ($)	Jun. 01, 2013 Forbo Industrial Adhesive Business [Member] Customer relationships [Member] USD ($)	Dec. 01, 2012 Forbo Industrial Adhesive Business [Member] Customer relationships [Member] USD ($)	Jun. 01, 2013 Forbo Industrial Adhesive Business [Member] Trademarks [Member] USD ($)	Dec. 01, 2012 Forbo Industrial Adhesive Business [Member] Trademarks [Member] USD ($)	Jun. 01, 2013 Forbo Industrial Adhesive Business [Member] Other intangibles [Member] USD ($)	Dec. 01, 2012 Forbo Industrial Adhesive Business [Member] Other intangibles [Member] USD ($)	Jun. 01, 2013 Engent Inc [Member] USD ($)	Dec. 01, 2012 Engent Inc [Member] USD ($)	Jun. 01, 2013 Engent Inc [Member] Customer relationships [Member] USD ($)	Dec. 01, 2012 Engent Inc [Member] Customer relationships [Member] USD ($)	Jun. 01, 2013 Engent Inc [Member] Trademarks [Member] USD ($)	Dec. 01, 2012 Engent Inc [Member] Trademarks [Member] USD ($)	Jun. 01, 2013 Engent Inc [Member] Non-competition agreements [Member] USD ($)	Dec. 01, 2012 Engent Inc [Member] Non-competition agreements [Member] USD ($)
Business Acquisition [Line Items]
Total acquisition cost						$ 12,000		$ 403,100	$ 404,725	$ 403,100	368,514									$ 7,881	$ 7,881
Total purchase price net of cash acquired				(1,625)	404,725
Maximum additional consideration																					2,000
Contingent consideration																				1,200	1,200
Purchase price allocation [Abstract]
Current assets								172,345	172,345											603	603
Property, plant and equipment								92,443	92,443											1,471	1,471
Goodwill								137,001	136,658											5,681	5,434
Other intangibles, net								123,459	123,459			42,190	42,190	58,910	58,910	21,880	21,880	479	479	3,000	3,000	2,300	2,300	300	300	400	400
Other assets acquired								4,605	4,605											20	325
Current liabilities								(84,435)	(84,251)											(90)	(84)
Other liabilities								(42,318)	(40,534)											(1,604)	(1,668)
Contingent consideration liabilities																				1,200	1,200
Total purchase price						12,000		403,100	404,725	403,100	368,514									7,881	7,881
Current assets purchase price adjustment								0												0
Property, plant and equipment purchase price adjustment								0												0
Goodwill purchase price adjustment								343												247
Other intangibles purchase price adjustment								0												0
Other assets purchase price adjustment								0												(305)
Current liabilities purchase price adjustment								(184)												(6)
Other liabilities purchase price adjustment								(1,784)												64
Contingent consideration liabilities purchase price adjustment																				0
Total purchase price adjustment								(1,625)												0
Acquisition Related Financing [Abstract]
Proceeds from long-term debt				95,000	490,000
Net revenue of acquired business	519,016		526,995	998,858	872,449
Segment operating income	52,810		43,595	88,546	71,252
Acquisition and integration special charges	10,843		32,127	16,176	38,609
Discontinued Operations Information [Line Items]
Cash proceeds		118,566
Discontinued operations income statement items [Abstract]
Net revenue			26,321		56,129
Income from operations			3,819		6,662
Income taxes			(6,872)		(7,992)
Net Income (loss) from discontinued operations			(3,053)		(1,330)
Discontinued operations balance sheet items
Other current assets	1,865			1,865			0
Current assets of discontinued operations	1,865			1,865			0
Other assets	0			0			1,865
Long-term assets of discontinued operations	0			0			1,865
Trade payables	0			0			74
Other accrued expenses	5,000			5,000			0
Current liabilities of discontinued operations	5,000			5,000			74
Other liabilities	0			0			5,000
Long-term liabilities of discontinued operations	$ 0			$ 0			$ 5,000

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Aquisitions and Divestitures (Table)

6 Months Ended

Jun. 01, 2013

Divestures [Abstract]

Discontinued operations income statement and balance sheet items (Table)

	13 Weeks Ended		26 Weeks Ended
	June 2, 2012		June 2, 2012
Net revenue	$	26,321	$	56,129
Income from operations		3,819		6,662
Income taxes		(6,872)		(7,992)
Net income (loss) from discontinued operations	$	(3,053)	$	(1,330)

	June 1, 2013		December 1, 2012
Other current assets		1,865		-
Current assets of discontinued operations		1,865		-
Other assets		-		1,865
Long-term assets of discontinued operations		-		1,865
Trade payables		-		74
Other accrued expenses		5,000		-
Current liabilities of discontinued operations		5,000		74
Other liabilities		-		5,000
Long-term liabilities of discontinued operations		-		5,000

Purchase price allocation [Abstract]

Acquisition Purchase Price Allocation (Table)

	Preliminary Valuation December 1, 2012		Fair Value Adjustments		Final Valuation
Current assets	$	603	$	-	$	603
Property, plant and equipment		1,471		-		1,471
Goodwill		5,434		247		5,681
Other intangibles
Customer relationships		2,300		-		2,300
Noncompetition agreements		400		-		400
Trademarks/trade names		300		-		300
Other assets		325		(305)		20
Current liabilities		(84)		(6)		(90)
Other liabilities		(1,668)		64		(1,604)
Contingent consideration liabilities		(1,200)		-		(1,200)
Total purchase price	$	7,881	$	-	$	7,881
The adjustments to the purchase price allocation primarily relate to non-current deferred tax assets and liabilities.

	Preliminary Valuation December 1, 2012		Purchase Price and Fair Value Adjustments		Final Valuation
Current assets	$	172,345	$	-	$	172,345
Property, plant and equipment		92,443		-		92,443
Goodwill		136,658		343		137,001
Other intangibles
Developed technology		42,190		-		42,190
Customer relationships		58,910		-		58,910
Trademarks/trade names		21,880		-		21,880
Other		479		-		479
Other assets		4,605		-		4,605
Current liabilities		(84,251)		(184)		(84,435)
Other liabilities		(40,534)		(1,784)		(42,318)
Total purchase price	$	404,725	$	(1,625)	$	403,100
The adjustments to the purchase price allocation primarily relate to non-current deferred tax liabilities and purchase price adjustments.

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Special Charges (Tables)

6 Months Ended

Jun. 01, 2013

Special Charges Table [Abstract]

Special Charges [Table Text Block]

		13 Weeks Ended				26 Weeks Ended
		June 1, 2013		June 2, 2012		June 1, 2013		June 2, 2012
Acquisition and transformation related costs:
	Professional services	$	1,884	$	11,087	$	4,166	$	19,514
	Financing availability costs		-		-		-		4,300
	Foreign currency option contract		-		-		-		841
	Loss (gain) on foreign currency forward contracts		-		4		-		(11,621)
	Other related costs		1,995		316		2,773		557
Restructuring costs:
	Workforce reduction costs		3,697		19,567		4,181		23,522
	Facility exit costs		3,267		1,153		5,056		1,496
Special charges, net		$	10,843	$	32,127	$	16,176	$	38,609

Accrued Compensation Restructuring Charges (Table)

		Workforce Reduction Costs
Balance at December 1, 2012		$	19,848
	Restructuring charges		4,181
	Cash payments		(5,994)
	Foreign currency translation adjustment		(92)
Balance at June 1, 2013		$	17,943

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Operating Segments (Tables)

6 Months Ended

Jun. 01, 2013

Operating Segments Abstract

Segment Reporting

	13 Weeks Ended
	June 1, 2013						June 2, 2012
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	190,641	$	14,220	$	28,448	$	193,382	$	15,615	$	25,115
Construction Products		42,934		134		4,047		39,679		105		3,148
EIMEA		185,194		2,793		14,145		193,943		2,307		9,485
Latin America		38,132		141		3,377		38,555		289		3,729
Asia Pacific		62,115		3,788		2,793		61,436		4,596		2,118
Total	$	519,016			$	52,810	$	526,995			$	43,595
	26 Weeks Ended
	June 1, 2013						June 2, 2012
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	362,903	$	26,832	$	51,922	$	311,478	$	29,386	$	42,610
Construction Products		76,965		215		5,411		72,173		210		3,620
EIMEA		362,695		5,469		20,618		304,594		4,356		16,033
Latin America		73,601		214		5,828		74,152		676		6,116
Asia Pacific		122,694		7,279		4,767		110,052		8,050		2,873
Total	$	998,858			$	88,546	$	872,449			$	71,252

Reconciliation of operating income to income before income taxes and income from equity method investments

Reconciliation of segment operating income to income from continuing operations before income taxes and income from equity method investments:
		13 Weeks Ended				26 Weeks Ended
		June 1,		June 2,		June 1,		June 2,
		2013		2012		2013		2012
Segment operating income	$	52,810	$	43,595	$	88,546	$	71,252
Special charges, net		(10,843)		(32,127)		(16,176)		(38,609)
Asset impairment charges		-		(671)		-		(671)
Other income (expense), net		(1,814)		231		(1,436)		648
Interest expense		(4,884)		(5,749)		(10,211)		(8,367)
Income from continuing operations before income taxes and income from equity method investments	$	35,269	$	5,279	$	60,723	$	24,253

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Share Repurchase Program (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Jun. 01, 2013	Mar. 02, 2013	Nov. 27, 2010
Share Repurchase Program [Line Items]
Stock Repurchase Program, Authorized Amount			$ 100,000
Total Value Of Repurchased Shares	4,775	0
Decreased Value Of Common Stock Shares Repurchased	125
Decreased Value Of Additional Paid In Capital For Shares Repurchased	$ 4,650

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Operating Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Jun. 01, 2013	Jun. 02, 2012
Segment Reporting [Line Items]
Net revenue	$ 519,016	$ 526,995	$ 998,858	$ 872,449
Segment operating income	52,810	43,595	88,546	71,252
North America Adhesives [Member]
Segment Reporting [Line Items]
Net revenue	190,641	193,382	362,903	311,478
Inter-Segment Revenue	14,220	15,615	26,832	29,386
Segment operating income	28,448	25,115	51,922	42,610
Construction Products [Member]
Segment Reporting [Line Items]
Net revenue	42,934	39,679	76,965	72,173
Inter-Segment Revenue	134	105	215	210
Segment operating income	4,047	3,148	5,411	3,620
EIMEA [Member]
Segment Reporting [Line Items]
Net revenue	185,194	193,943	362,695	304,594
Inter-Segment Revenue	2,793	2,307	5,469	4,356
Segment operating income	14,145	9,485	20,618	16,033
Latin America Adhesives [Member]
Segment Reporting [Line Items]
Net revenue	38,132	38,555	73,601	74,152
Inter-Segment Revenue	141	289	214	676
Segment operating income	3,377	3,729	5,828	6,116
Asia Pacific [Member]
Segment Reporting [Line Items]
Net revenue	62,115	61,436	122,694	110,052
Inter-Segment Revenue	3,788	4,596	7,279	8,050
Segment operating income	$ 2,793	$ 2,118	$ 4,767	$ 2,873

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Special Charges (Details) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 01, 2013 USD ($)	Jun. 02, 2012 USD ($)	Jun. 01, 2013 USD ($)	Jun. 02, 2012 USD ($)	Mar. 03, 2012 CHF	Jun. 01, 2013 Cash [Member] USD ($)	Jun. 02, 2012 Cash [Member] USD ($)	Jun. 01, 2013 Cash [Member] USD ($)	Jun. 02, 2012 Cash [Member] USD ($)	Jun. 01, 2013 Noncash [Member] USD ($)	Jun. 02, 2012 Noncash [Member] USD ($)	Jun. 01, 2013 Noncash [Member] USD ($)	Jun. 02, 2012 Noncash [Member] USD ($)
Special Charges [Line Items]
Professional Services	$ 1,884	$ 11,087	$ 4,166	$ 19,514
Financing availability costs	0	0	0	4,300
Foreign currency option contract	0	0	0	841
Loss (gain) on foreign currency forward contract	0	4	0	(11,621)
Other related costs	1,995	316	2,773	557
Workforce reduction costs	3,697	19,567	4,181	23,522
Facility exit costs	3,267	1,153	5,056	1,496
Special charges, net	10,843	32,127	16,176	38,609
Acquisition Purchase Price Hedging (Abstract)
Foreign Currency Contract Foreign Currency Amount					370,000
Restructuring costs [Line Items]
Facility shut down costs						2,316	1,153	3,714	1,153	951	1,496	1,342	1,496
Restructuring Charges [Line Items]
Restructuring Reserve			19,848
Restructuring charges			4,181
Cash payments			(5,994)
Foreign currency translation adjustment			(92)
Restructuring Reserve	17,943		17,943
Restructuring Costs Included In Accrued Compensation	17,380		17,380
Restructuring Costs Included In Other Liabilities	$ 563		$ 563

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Jun. 01, 2013	Jun. 02, 2012
Consolidated Statements of Comprehensive Income [Abstract]
Net income including non-controlling interests	$ 26,048	$ 2,007	$ 46,822	$ 17,337
Other comprehensive income
Foreign currency translation	(5,647)	(27,599)	(9,109)	(25,699)
Defined benefit pension plans adjustment, net of tax	1,965	1,046	3,941	2,176
Interest rate swap, net of tax	10	10	20	20
Cash-flow hedges, net of taxes	(21)	(855)	189	(855)
Other comprehensive income (loss)	(3,693)	(27,398)	(4,959)	(24,358)
Comprehensive income (loss)	22,355	(25,391)	41,863	(7,021)
Comprehensive income attributable to non-controlling interests	73	65	177	96
Comprehensive income (loss) attributable to H.F. Fuller	$ 22,282	$ (25,456)	$ 41,686	$ (7,117)

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 01, 2013

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income Loss Disclosure [Text Block]

Note 5: Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) follow:
	June 1, 2013
		Total		H.B. Fuller Stockholders		Non-controlling Interests
Foreign currency translation adjustment	$	41,693	$	41,684	$	9
Interest rate swap, net of taxes of $45		(115)		(115)		-
Cash-flow hedges, net of taxes of $129		(205)		(205)		-
Defined benefit pension plans adjustment, net of taxes of $101,535		(185,910)		(185,910)		-
Total accumulated other comprehensive income (loss)	$	(144,537)	$	(144,546)	$	9
		December 1, 2012
		Total		H.B. Fuller Stockholders		Non-controlling Interests
Foreign currency translation adjustment	$	50,802	$	50,754	$	48
Interest rate swap, net of taxes of $52		(135)		(135)		-
Cash-flow hedges, net of taxes of $248		(394)		(394)		-
Defined benefit pension plans adjustment, net of taxes of $103,661		(189,851)		(189,851)		-
Total accumulated other comprehensive income (loss)	$	(139,578)	$	(139,626)	$	48

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Consolidated Balance Sheets (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 01, 2013	Dec. 01, 2012
Statement of Financial Position Parentheticals [Abstract]
Allowance for Doubtful Accounts	$ 8,748	$ 7,513
Preferred Stock Shares Authorized	10,045,900
Common Stock Par Value	$ 1.00
Common Stock Authorized	160,000,000
Common Stock Outstanding	50,222,838	49,903,266

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Subsequent Events (Details) (USD $) In Thousands, unless otherwise specified	Aug. 31, 2013
Subsequent Event Abstract
Total acquisition cost	$ 12,000

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Jun. 01, 2013	Jun. 02, 2012
Consolidated Statements of Income
Net revenue	$ 519,016	$ 526,995	$ 998,858	$ 872,449
Cost of sales	(372,400)	(390,444)	(718,866)	(633,211)
Gross profit	146,616	136,551	279,992	239,238
Selling, general and administrative expenses	(93,806)	(92,956)	(191,446)	(167,986)
Special charges, net	(10,843)	(32,127)	(16,176)	(38,609)
Asset impairment charges	0	(671)	0	(671)
Other income (expense), net	(1,814)	231	(1,436)	648
Interest expense	(4,884)	(5,749)	(10,211)	(8,367)
Income from continuing operations before income taxes and income from equity method investments	35,269	5,279	60,723	24,253
Income taxes	(10,864)	(2,367)	(17,984)	(9,930)
Income from equity method investments	1,643	2,148	4,083	4,344
Income from continuing operations	26,048	5,060	46,822	18,667
(Income) loss from discontinued operations, net of tax	0	(3,053)	0	(1,330)
Net income including non-controlling interests	26,048	2,007	46,822	17,337
Net (income) loss attributable to non-controlling interests	(119)	(71)	(216)	(96)
Net income attributable to H.B. Fuller	$ 25,929	$ 1,936	$ 46,606	$ 17,241
Earnings per share attributable to H.B. Fuller common stockholders:
Income from continuing operations, basic share	$ 0.52	$ 0.10	$ 0.93	$ 0.38
Income (loss) from discontinued operations, basic share	$ 0	$ (0.06)	$ 0	$ (0.03)
Basic earnings per share	$ 0.52	$ 0.04	$ 0.93	$ 0.35
Income from continuing operations, diluted share	$ 0.51	$ 0.10	$ 0.91	$ 0.37
Income (loss) from discontinued operations, diluted share	$ 0	$ (0.06)	$ 0	$ (0.03)
Diluted earnings per share	$ 0.51	$ 0.04	$ 0.91	$ 0.34
Weighted-average common shares outstanding:
Basic	49,935	49,652	49,876	49,509
Diluted	51,152	50,722	51,090	50,488
Dividends declared per common share	$ 0.100	$ 0.085	$ 0.185	$ 0.160

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Operating Segments (Details) 2 (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Jun. 01, 2013	Jun. 02, 2012
Operating Segments Abstract
Segment operating income	$ 52,810	$ 43,595	$ 88,546	$ 71,252
Special charges, net	(10,843)	(32,127)	(16,176)	(38,609)
Asset impairment charges	0	(671)	0	(671)
Other Operating Income (Expense), Net	(1,814)	231	(1,436)	648
Interest expense	(4,884)	(5,749)	(10,211)	(8,367)
Income from continuing operations before income taxes and income from equity method investments	$ 35,269	$ 5,279	$ 60,723	$ 24,253

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Accounting for Sharebased Compensation (Tables)

6 Months Ended

Jun. 01, 2013

Share-based Compensation [Abstract]

Fair value of options granted [TableText Block]

	13 Weeks Ended		26 Weeks Ended
	June 1, 2013	June 2, 2012	June 1, 2013	June 2, 2012
Expected life (in years)	4.75	4.75	4.75	4.75
Weighted-average expected volatility	47.65%	51.29%	48.00%	51.76%
Expected volatility	47.65%	51.29%	47.65% - 48.02%	51.29% - 51.76%
Risk-free interest rate	0.69%	0.84%	0.73%	0.71%
Expected dividend yield	1.04%	1.02%	0.87%	1.06%
Weighted-average fair value of grants	$14.27	$12.97	$15.09	$11.43

Schedule of Share-based compensation stock options activity [TableText Block]

			Weighted-
			Average
	Options		Exercise Price
Outstanding at December 1, 2012	2,429,750	$	21.63
Granted	452,229		39.58
Exercised	(236,277)		18.50
Forfeited or cancelled	(11,902)		24.43
Outstanding at June 1, 2013	2,633,800	$	24.98

Summary of nonvested restricted stock [Table Text Block]

						Weighted-
					Weighted-	Average
					Average	Remaining
					Grant	Contractual
					Date Fair	Life
	Units	Shares	Total		Value	(in Years)
Nonvested at December 1, 2012	141,184	245,231	386,415	$	25.41	0.9
Granted	62,701	183,752	246,453		39.60	2.1
Vested	(64,112)	(109,424)	(173,536)		37.75	-
Forfeited	(357)	(1,291)	(1,648)		28.76	1.5
Nonvested at June 1, 2013	139,416	318,268	457,684	$	33.57	1.6

Summary of deferred compensation units [Table Text Block]

	Non-employee
	Directors	Employees	Total
Units outstanding December 1, 2012	338,769	68,662	407,431
Participant contributions	7,258	1,468	8,726
Company match contributions	807	163	970
Payouts	(18,564)	(4,647)	(23,211)
Units outstanding June 1, 2013	328,270	65,646	393,916

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Fair Value Measurements

6 Months Ended

Jun. 01, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements Disclosure

Note 14: Fair Value Measurements

The following tables present information about our financial assets and liabilities that are measured at fair value on a recurring basis as of June 1, 2013 and December 1, 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include data points that are observable such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) such as interest rates and yield curves that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

				Fair Value Measurements Using:
		June 1,
Description		2013		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	905	$	905	$	-	$	-
Derivative assets		1,742		-		1,742		-
Interest rate swaps		7,133		-		7,133		-
Cash-flow hedges		1,769		-		1,769		-
Liabilities:
Derivative liabilities	$	1,261	$	-	$	1,261	$	-
Contingent consideration liability, continuing operations		1,638		-		-		1,638
Contingent consideration liability, discontinued operations		5,000		-		-		5,000
				Fair Value Measurements Using:
		December 1,
Description		2012		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	15,499	$	15,499	$	-	$	-
Derivative assets		830		-		830		-
Interest rate swaps		9,473		-		9,473		-
Cash-flow hedges		1,610		-		1,610		-
Liabilities:
Derivative liabilities	$	956	$	-	$	956	$	-
Contingent consideration liability, continuing operations		1,649		-		-		1,649
Contingent consideration liability, discontinued operations		5,000		-		-		5,000

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Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	Nov. 29, 2014	Jun. 01, 2013	Dec. 01, 2012
Accumulated Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment		$ 41,693	$ 50,802
Cash-flow hedges, net of taxes	163	(205)	(394)
Interest rate swap, net of taxes		(115)	(135)
Defined benefit pension plans adjustment, net of taxes		(185,910)	(189,851)
Total accumulated other comprehensive income (loss)		(144,537)	(139,578)
Parent [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment		41,684	50,754
Cash-flow hedges, net of taxes		(205)	(394)
Interest rate swap, net of taxes		(115)	(135)
Defined benefit pension plans adjustment, net of taxes		(185,910)	(189,851)
Total accumulated other comprehensive income (loss)		(144,546)	(139,626)
Tax on interest rate swap		45	52
Tax on defined benefit pension plans adjustment		101,535	103,661
Tax on cash-flow hedges		129	248
Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment		9	48
Cash-flow hedges, net of taxes		0	0
Interest rate swap, net of taxes		0	0
Defined benefit pension plans adjustment, net of taxes		0	0
Total accumulated other comprehensive income (loss)		$ 9	$ 48

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Jun. 01, 2013	Jun. 02, 2012	Dec. 01, 2012
Assets
Marketable securities	$ 905		$ 905		$ 15,499
Derivative assets	1,742		1,742		830
Interest rate swaps	7,133		7,133		9,473
Cash-flow hedges	1,769		1,769		1,610
Liabilities [Abstract]
Derivative liabilities	1,261		1,261		956
Contingent consideration liability, continuing operations	1,638		1,638		1,649
Contingent consideration liability, discontinued operations	5,000		5,000		5,000
Fair Value Of Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
Asset impairment charges	0	671	0	671
Fair Value, Inputs, Level 1 [Member]
Assets
Marketable securities	905		905		15,499
Derivative assets	0		0		0
Interest rate swaps	0		0		0
Cash-flow hedges	0		0		0
Liabilities [Abstract]
Derivative liabilities	0		0		0
Contingent consideration liability, continuing operations	0		0		0
Contingent consideration liability, discontinued operations	0		0		0
Fair Value, Inputs, Level 2 [Member]
Assets
Marketable securities	0		0		0
Derivative assets	1,742		1,742		830
Interest rate swaps	7,133		7,133		9,473
Cash-flow hedges	1,769		1,769		1,610
Liabilities [Abstract]
Derivative liabilities	1,261		1,261		956
Contingent consideration liability, continuing operations	0		0		0
Contingent consideration liability, discontinued operations	0		0		0
Fair Value, Inputs, Level 3 [Member]
Assets
Marketable securities	0		0		0
Derivative assets
Interest rate swaps	0		0		0
Cash-flow hedges	0		0		0
Liabilities [Abstract]
Derivative liabilities	0		0		0
Contingent consideration liability, continuing operations	1,638		1,638		1,649
Contingent consideration liability, discontinued operations	$ 5,000		$ 5,000		$ 5,000

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Fair Value Measurements (Table)

6 Months Ended

Jun. 01, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements [Table Text Block]

				Fair Value Measurements Using:
		June 1,
Description		2013		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	905	$	905	$	-	$	-
Derivative assets		1,742		-		1,742		-
Interest rate swaps		7,133		-		7,133		-
Cash-flow hedges		1,769		-		1,769		-
Liabilities:
Derivative liabilities	$	1,261	$	-	$	1,261	$	-
Contingent consideration liability, continuing operations		1,638		-		-		1,638
Contingent consideration liability, discontinued operations		5,000		-		-		5,000
				Fair Value Measurements Using:
		December 1,
Description		2012		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	15,499	$	15,499	$	-	$	-
Derivative assets		830		-		830		-
Interest rate swaps		9,473		-		9,473		-
Cash-flow hedges		1,610		-		1,610		-
Liabilities:
Derivative liabilities	$	956	$	-	$	956	$	-
Contingent consideration liability, continuing operations		1,649		-		-		1,649
Contingent consideration liability, discontinued operations		5,000		-		-		5,000

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Financial Instruments (Table)

6 Months Ended

Jun. 01, 2013

Cross Currency Swaps [Abstract]

Foreign Currency Cash Flow Hedges [Table Text Block]

	Fiscal Year of Expiration	Interest Rate	Notional Value	Fair Value
Pay EUR Receive USD	2014	4.15% 4.30%	$ 52,860	$ 833
Pay EUR Receive USD	2015	4.30% 4.45%	$ 98,738	$ 936
Total			$ 151,598	$ 1,769

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 01, 2013

Commitments And Contingencies [Abstract]

Product Liability Contingencies [Table Text Block]

	26 Weeks Ended				3 Years Ended
($ in thousands)	June 1, 2013		June 2, 2012		December 1, 2012
Lawsuits and claims settled		-		8		20
Settlement amounts	$	-	$	490	$	1,535
Insurance payments received or expected to be received	$	-	$	350	$	1,174

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Earnings Per Share

6 Months Ended

Jun. 01, 2013

Earnings per Share Abstract

Earnings Per Share Disclosure

Note 4: Earnings Per Share
A reconciliation of the common share components for the basic and diluted earnings per share calculations follows:
	13 Weeks Ended		26 Weeks Ended
	June 1,	June 2,	June 1,	June 2,
(Shares in thousands)	2013	2012	2013	2012
Weighted-average common shares - basic	49,935	49,652	49,876	49,509
Equivalent shares from share-based compensations plans	1,217	1,070	1,214	979
Weighted-average common and common equivalent shares - diluted	51,152	50,722	51,090	50,488

Basic earnings per share is calculated by dividing net income attributable to H.B.Fuller by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is based upon the weighted-average number of common and common equivalent shares outstanding during the applicable period. The difference between basic and diluted earnings per share is attributable to share-based compensation awards. We use the treasury stock method to calculate the effect of outstanding shares, which computes total employee proceeds asthe sum of (a) the amount the employee must pay upon exercise of the award, (b) the amount of unearned share-based compensation costs attributed to future services and (c) the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the award. Share-based compensation awards for which total employee proceeds exceed the average market price over the applicable period have an antidilutive effect on earnings per share, and accordingly, are excluded from the calculation of diluted earnings per share.

Our June 1, 2013 and March 2, 2013 stock prices were higher than any of our stock option grant prices at that time, therefore no option shares were excluded from the diluted earnings per share calculations for the first two quarters of 2013.Options to purchase 4,652 shares of common stock at a weighted-average exercise price of $32.32 for the 13 weeks and 26 weeks ended June 2, 2012, were excluded from the diluted earnings per share calculations because they were antidilutive.

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Earnings Per Share (Table)

6 Months Ended

Jun. 01, 2013

Earnings Per Share Table [Abstract]

Earnings Per Share [Table Text Block]

Note 4: Earnings Per Share
A reconciliation of the common share components for the basic and diluted earnings per share calculations follows:
	13 Weeks Ended		26 Weeks Ended
	June 1,	June 2,	June 1,	June 2,
(Shares in thousands)	2013	2012	2013	2012
Weighted-average common shares - basic	49,935	49,652	49,876	49,509
Equivalent shares from share-based compensations plans	1,217	1,070	1,214	979
Weighted-average common and common equivalent shares - diluted	51,152	50,722	51,090	50,488

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Accounting for Sharebased Compensation (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended							12 Months Ended
	Jun. 01, 2013	Jun. 02, 2012	Jun. 01, 2013	Jun. 02, 2012	Jun. 01, 2013 Non Employee Directors [Member]	Jun. 01, 2013 Employees [Member]	Jun. 01, 2013 Nonvested restricted stock units [Member]	Jun. 01, 2013 Nonvested restricted stock shares [Member]	Jun. 01, 2013 Weighted-Average Grant Date Fair Value [Member]	Dec. 01, 2012 Weighted-Average Grant Date Fair Value [Member]	Jun. 01, 2013 Nonvested restricted stock weighted-average remaining contractual life (in years) [Member]	Dec. 01, 2012 Nonvested restricted stock weighted-average remaining contractual life (in years) [Member]
Assumptions to calculate fair value options [Abstract]
Expected life	4 years 9 months	4 years 9 months	4 years 9 months	4 years 9 months
Weighted-average expected volatility	47.65%	51.29%	48.00%	51.76%
Expected volatility	47.65%	51.29%
Expected volatility (Low)			47.65%	51.29%
Expected volatility (High)			48.02%	51.76%
Risk-free interest rate	0.69%	0.84%	0.73%	0.71%
Expected dividend yield	1.04%	1.02%	0.87%	1.06%
Weighted-average fair value of grants	$ 14.27	$ 12.97	$ 15.09	$ 11.43
Nonvested Restricted Activity [Line Items]
Nonvested beginning balance			386,415				141,184	245,231
Granted			246,453				62,701	183,752
Vested			(173,536)				(64,112)	(109,424)
Forfeited			(1,648)				(357)	(1,291)
Nonvested ending balance	457,684		457,684				139,416	318,268
Weighted Average Remaining Contractual Life Beginning											1 year 7 months 6 days	10 months 24 days
Weighted Average Remaining Contractual Life Granted											2 years 1 month 6 days
Weighted Average Remaining Contractual Life Forfeited											1 year 6 months
Weighted Average Remaining Contractual Life Vested											0 years
Weighted Average Remaining Contractual Life Ending											1 year 7 months 6 days	10 months 24 days
Total Nonvested Restricted Stock Weighted Average Beginning									$ 33.57	$ 25.41
Granted weighted average grant date fair value									$ 39.60
Vested weighted average grant date fair value									$ 37.75
Forfeited weighted average grant date fair value									$ 28.76
Total Nonvested Restricted Stock Weighted Average Ending									$ 33.57	$ 25.41
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value	$ 278	$ 228	$ 6,550	$ 4,439
Total fair value of nonvested restricted stock	12,278		12,278
Schedule Of Share Based Compensation Nonemployee Director Stock Award Plan Activity Units [Line Items]
Units outstanding beginning			407,431		338,769	68,662
Participant contributions			8,726		7,258	1,468
Company match contributions			970		807	163
Payouts			(23,211)		(18,564)	(4,647)
Units outstanding ending	393,916		393,916		328,270	65,646
Other Share Based Activity [Abstract]
Fair values of options granted	277	61	6,823	5,842
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value	533	549	4,770	4,087
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options	597	806	4,371	6,031
Repurchased restricted stock shares	1,972	2,331	61,624	52,975
Share-based compensation expense recognition [Abstract]
Share-based compensation expense	2,895	2,217	6,215	5,012
Excess tax benefit recognized	225	158	2,029	1,039
Unrecognized compensation costs related to unvested stock option awards	9,794		9,794
The weighted average period over which unrecognized share-based compensation costs are expected to be reported.	1 year 10 months 24 days
Unrecognized compensation costs related to unvested restricted stock awards	9,364		9,364
The weighted average period over which unrecognized compensation costs related to unvested restricted stock awards	1 year 7 months 6 days
Restricted Unit Unrecognized Costs	$ 2,914		$ 2,914
Summary of option activity [Roll Forward]
Outstanding beginning balance			2,429,750
Granted			452,229
Exercised			(236,277)
Forfeited or Cancelled			(11,902)
Outstanding ending balance	2,633,800		2,633,800
Weighted-average exercise price activity [Abstract]
Outstanding beginning balance			$ 21.63
Granted			$ 39.58
Exercised			$ 18.50
Forfeited or Cancelled			$ 24.43
Outstanding ending balance	$ 24.98		$ 24.98

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Components of Net Periodic Cost (Benefit) related to Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 01, 2013

Components of Net Periodic Cost (Benefit) Related to Pension and Other Postretirement Benefit Plans Abstract

Components of Net Periodic Cost (Benefit) Related to Pension and Other Postretirement Benefit Plans Disclosure

Note 7: Components of Net Periodic Cost (Benefit) related to Pension and Other Postretirement Benefit Plans
		13 Weeks Ended June 1, 2013 and June 2, 2012
										Other
		Pension Benefits								Postretirement
		U.S. Plans				Non-U.S. Plans				Benefits
Net periodic cost (benefit):		2013		2012		2013		2012		2013		2012
Service cost	$	27	$	22	$	416	$	329	$	156	$	135
Interest cost		3,680		4,024		1,820		2,165		533		617
Expected return on assets		(5,680)		(5,938)		(2,318)		(2,136)		(931)		(816)
Amortization:
Prior service cost		12		12		(1)		(1)		(1,034)		(1,173)
Actuarial (gain)/ loss		1,685		964		935		634		1,429		1,283
Net periodic cost (benefit)	$	(276)	$	(916)	$	852	$	991	$	153	$	46
		26 Weeks Ended June 1, 2013 and June 2, 2012
										Other
		Pension Benefits								Postretirement
		U.S. Plans				Non-U.S. Plans				Benefits
Net periodic cost (benefit):		2013		2012		2013		2012		2013		2012
Service cost	$	54	$	44	$	839	$	589	$	312	$	270
Interest cost		7,360		8,048		3,689		3,894		1,066		1,234
Expected return on assets		(11,360)		(11,876)		(4,700)		(3,936)		(1,862)		(1,632)
Amortization:
Prior service cost		24		24		(2)		(2)		(2,068)		(2,346)
Actuarial (gain)/ loss		3,370		1,928		1,886		1,263		2,858		2,578
Net periodic cost (benefit)	$	(552)	$	(1,832)	$	1,712	$	1,808	$	306	$	104

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Accounting for Sharebased Compensation

6 Months Ended

Jun. 01, 2013

Disclosure Of Share Based Compensation [Abstract]

Share Based Compensation Note

Note 3: Accounting for Share-Based Compensation

Overview: We have various share-based compensation programs, which provide for equity awards including stock options, restricted stock shares, restricted stock units and deferred compensation. These equity awards fall under several plans and are described in detail in our Annual Report filed on Form 10-K as of December 1, 2012.

Grant-DateFair Value: We use the Black-Scholes option-pricing model to calculate the grant-date fair value of an award. The fair value of options granted during the 13weeks and 26 weeks ended June 1, 2013and June 2, 2012were calculated using the following weighted average assumptions:

	13 Weeks Ended		26 Weeks Ended
	June 1, 2013	June 2, 2012	June 1, 2013	June 2, 2012
Expected life (in years)	4.75	4.75	4.75	4.75
Weighted-average expected volatility	47.65%	51.29%	48.00%	51.76%
Expected volatility	47.65%	51.29%	47.65% - 48.02%	51.29% - 51.76%
Risk-free interest rate	0.69%	0.84%	0.73%	0.71%
Expected dividend yield	1.04%	1.02%	0.87%	1.06%
Weighted-average fair value of grants	$14.27	$12.97	$15.09	$11.43

Expected life – We use historical employee exercise and option expiration data to estimate the expected life assumption for the Black-Scholes grant-date valuation. We believe that this historical data is currently the best estimate of the expected term of a new option. We use a weighted-average expected life for all awards.

Expected volatility – Volatility is calculated using our historical volatility for the same period of time as the expected life. We have no reason to believe that our future volatility will differ materially from the past.

Risk-free interest rate – The rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the same period of time as the expected life.

Expected dividend yield – The calculation is based on the total expected annual dividend payout divided by the average stock price.

Expense Recognition: We use the straight-line attribution method to recognize share-based compensation expense for option awards with graded vesting and restricted stock share and restricted stock units with graded and cliff vesting. The amount of share-based compensation expense recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest.

Total share-based compensation expense of $2,895 and $2,217 was included in ourCondensed Consolidated Statements of Income for the 13weeks ended June 1, 2013 and June 2, 2012, respectively.Total share-based compensation expenseof $6,215 and $5,012 was included in ourCondensed Consolidated Statements of Income for the 26weeks ended June 1, 2013 and June 2, 2012, respectively.All share-based compensation expense was recorded as selling, general and administrative expense. For the 13 weeks ended June 1, 2013 and June 2, 2012 there was $225 and $158 of excess tax benefit recognized, respectively. For the 26 weeks ended June 1, 2013 and June 2, 2012 there was $2,029 and $1,039 of excess tax benefit recognized, respectively.

As of June 1, 2013, there was $9,794 of unrecognized compensation costs related to unvested stock option awards, which is expected to be recognized over a weighted-average period of 1.9 years. Unrecognized compensation costs related to unvested restricted stock shares was $9,364 and unvested restricted stock units was $2,914, both of which are expected to be recognized over a weighted-average period of 1.6 years.

Share-based Activity

A summary of option activity as of June 1, 2013 and changes during the 26 weeksthen ended is presented below:

			Weighted-
			Average
	Options		Exercise Price
Outstanding at December 1, 2012	2,429,750	$	21.63
Granted	452,229		39.58
Exercised	(236,277)		18.50
Forfeited or cancelled	(11,902)		24.43
Outstanding at June 1, 2013	2,633,800	$	24.98

The total fair values of options granted during the 13 weeks ended June 1, 2013 and June 2, 2012 were $277 and $61, respectively. Total intrinsic values of options exercised during the 13 weeks ended June 1, 2013 and June 2, 2012 were $533 and $549, respectively. Intrinsic value is the difference between our closing stock price on the respective trading day and the exercise price, multiplied by the number of options exercised. The total fair values of options granted during the 26 weeks ended June 1, 2013 and June 2, 2012 were $6,823 and $5,842, respectively. Total intrinsic values of options exercised during the 26 weeks ended June 1, 2013 and June 2, 2012 were $4,770 and $4,087, respectively. Proceeds received from option exercises during the 13 weeks ended June 1, 2013 and June 2, 2012 were $597 and $806, respectively and $4,371 and $6,031during the 26 weeks ended June 1, 2013 and June 2, 2012, respectively.

A summary of nonvested restricted stock as of June 1, 2013 and changes during the 26 weeks then ended is presented below:

						Weighted-
					Weighted-	Average
					Average	Remaining
					Grant	Contractual
					Date Fair	Life
	Units	Shares	Total		Value	(in Years)
Nonvested at December 1, 2012	141,184	245,231	386,415	$	25.41	0.9
Granted	62,701	183,752	246,453		39.60	2.1
Vested	(64,112)	(109,424)	(173,536)		37.75	-
Forfeited	(357)	(1,291)	(1,648)		28.76	1.5
Nonvested at June 1, 2013	139,416	318,268	457,684	$	33.57	1.6

Total fair values of restricted stock vested during the 13 weeks ended June 1, 2013 and June 2, 2012 were $278 and $228, respectively. Total fair values of restricted stock vested during the 26 weeks ended June 1, 2013 and June 2, 2012 were $6,550 and $4,439, respectively. The total fair value of nonvested restricted stock at June 1, 2013 was $12,278.

We repurchased 1,972 and 2,331restricted stock shares during the 13 weeks ended June 1, 2013 and June 2, 2012, respectively and 61,624 and 52,975 restricted stock shares during the 26 weeks ended June 1, 2013 and June 2, 2012, respectively. The repurchases relate to statutory minimum tax withholding.

We have a Directors' Deferred Compensation plan that allows non-employee directors to defer all or a portion of their retainer and meeting fees in a number of investment choices, including units representing shares of our common stock. We also have a Key Employee Deferred Compensation Plan that allows key employees to defer a portion of their eligible compensation in a number of investment choices, including units, representing shares of our common stock. We provide a 10 percent match on deferred compensation invested into units, representing shares of our common stock. A summary of deferred compensation units as of June 1, 2013, and changes during the 26 weeks then ended is presented below:

	Non-employee
	Directors	Employees	Total
Units outstanding December 1, 2012	338,769	68,662	407,431
Participant contributions	7,258	1,468	8,726
Company match contributions	807	163	970
Payouts	(18,564)	(4,647)	(23,211)
Units outstanding June 1, 2013	328,270	65,646	393,916

Deferred compensation units are fully vested at the date of contribution.

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Consolidated Statements of Total Equity (Parentheticals) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 01, 2013	Dec. 01, 2012
Statement Of Shareholders Equity Parentheticals [Abstract]
Tax on defined benefit pension plans adjustment	$ (2,126)	$ 26,075

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 01, 2013
Income Taxes [Line Items]
Gross unrecognized tax benefits liability	$ 5,301
Net interest and penalties relating to unrecognized tax benefits	801
Recorded liability for unrecognized tax benefits, net, increased	$ 95

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Jun. 01, 2013	Dec. 01, 2012
Inventory, Net [Abstract]
Raw materials	$ 117,932	$ 110,820
Fiinished goods	125,925	119,123
LIFO reserve	(21,476)	(21,412)
Total Inventory	$ 222,381	$ 208,531

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Components of Net Periodic Cost (Benefit) related to Pension and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 01, 2013

Components of Net Periodic Cost (Benefit) related to Pension and Other Postretirement Benefit Plans [Abstract]

Schedule of Pension Benefit Plans and Other Postretirement Benefit Plans Disclosure

Note 7: Components of Net Periodic Cost (Benefit) related to Pension and Other Postretirement Benefit Plans
		13 Weeks Ended June 1, 2013 and June 2, 2012
										Other
		Pension Benefits								Postretirement
		U.S. Plans				Non-U.S. Plans				Benefits
Net periodic cost (benefit):		2013		2012		2013		2012		2013		2012
Service cost	$	27	$	22	$	416	$	329	$	156	$	135
Interest cost		3,680		4,024		1,820		2,165		533		617
Expected return on assets		(5,680)		(5,938)		(2,318)		(2,136)		(931)		(816)
Amortization:
Prior service cost		12		12		(1)		(1)		(1,034)		(1,173)
Actuarial (gain)/ loss		1,685		964		935		634		1,429		1,283
Net periodic cost (benefit)	$	(276)	$	(916)	$	852	$	991	$	153	$	46
		26 Weeks Ended June 1, 2013 and June 2, 2012
										Other
		Pension Benefits								Postretirement
		U.S. Plans				Non-U.S. Plans				Benefits
Net periodic cost (benefit):		2013		2012		2013		2012		2013		2012
Service cost	$	54	$	44	$	839	$	589	$	312	$	270
Interest cost		7,360		8,048		3,689		3,894		1,066		1,234
Expected return on assets		(11,360)		(11,876)		(4,700)		(3,936)		(1,862)		(1,632)
Amortization:
Prior service cost		24		24		(2)		(2)		(2,068)		(2,346)
Actuarial (gain)/ loss		3,370		1,928		1,886		1,263		2,858		2,578
Net periodic cost (benefit)	$	(552)	$	(1,832)	$	1,712	$	1,808	$	306	$	104

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Commitments and Contingencies

6 Months Ended

Jun. 01, 2013

Commitments and Contingencies Abstract

Commitments and Contingencies Disclosure

Note 10: Commitments and Contingencies

Environmental Matters. From time to time, we become aware of compliance matters relating to, or receive notices from, federal, state or local entities regarding possible or alleged violations of environmental, health or safety laws and regulations. We review the circumstances of each individual site, considering the number of parties involved, the level of potential liability or contribution of us relative to the other parties, the nature and magnitude of the hazardous substances involved, the method and extent of remediation, the estimated legal and consulting expense with respect to each site and the time period over which any costs would likely be incurred. Also, from time to time, we are identified as a "potentially responsible party" (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and/or similar state laws that impose liability for costs relating to the clean up of contamination resulting from past spills, disposal or other release of hazardous substances. We are also subject to similar laws in some of the countries where current and former facilities are located. Our environmental, health and safety department monitors compliance with applicable laws on a global basis. To the extent we can reasonably estimate the amount of our probable liabilities for environmental matters, we establish a financial provision. 

Currently we are involved in various environmental investigations, clean up activities and administrative proceedings and lawsuits. In particular, we are currently deemed a PRP in conjunction with numerous other parties, in a number of government enforcement actions associated with hazardous waste sites. As a PRP, we may be required to pay a share of the costs of investigation and clean up of these sites. In addition, we are engaged in environmental remediation and monitoring efforts at a number of current and former operating facilities. While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow.

Other Legal Proceedings. From time to time and in the ordinary course of business, we are a party to, or a target of, lawsuits, claims, investigations and proceedings, including product liability, personal injury, contract, patent and intellectual property, environmental, health and safety, tax and employment matters. While we are unable to predict the outcome of these matters, we have concluded, based upon currently available information, that the ultimate resolution of any pending matter, individually or in the aggregate, including the asbestos litigation described in the following paragraphs, will not have a material adverse effect on our results of operations, financial condition or cash flow.

We have been named as a defendant in lawsuits in which plaintiffs have alleged injury due to products containing asbestos manufactured more than 30 years ago. The plaintiffs generally bring these lawsuits against multiple defendants and seek damages (both actual and punitive) in very large amounts. In many cases, plaintiffs are unable to demonstrate that they have suffered any compensable injuries or that the injuries suffered were the result of exposure to products manufactured by us. We are typically dismissed as a defendant in such cases without payment. If the plaintiff presents evidence indicating that compensable injury occurred as a result of exposure to our products, the case is generally settled for an amount that reflects the seriousness of the injury, the length, intensity and character of exposure to products containing asbestos, the number and solvency of other defendants in the case, and the jurisdiction in which the case has been brought.

A significant portion of the defense costs and settlements in asbestos-related litigation is paid by third parties, including indemnification pursuant to the provisions of a 1976 agreement under which we acquired a business from a third party. Currently, this third party is defending and paying settlement amounts, under a reservation of rights, in most of the asbestos cases tendered to the third party.

In addition to the indemnification arrangements with third parties, we have insurance policies that generally provide coverage for asbestos liabilities (including defense costs).  Historically, insurers have paid a significant portion of our defense costs and settlements in asbestos-related litigation. However, certain of our insurers are insolvent.  We have entered into cost-sharing agreements with our insurers that provide for the allocation of defense costs and, in some cases, settlements and judgments, in asbestos-related lawsuits.  Under these agreements, we are required in some cases to fund a share of settlements and judgments allocable to years in which the responsible insurer is insolvent. In addition, to delineate our rights under certain insurance policies, in October 2009, we commenced a declaratory judgment action against one of our insurers in the United States District Court for the District of Minnesota. Additional insurers have been brought into the action to address issues related to the scope of their coverage.

A summary of the number of and settlement amounts for asbestos-related lawsuits and claims is as follows:

	26 Weeks Ended				3 Years Ended
($ in thousands)	June 1, 2013		June 2, 2012		December 1, 2012
Lawsuits and claims settled		-		8		20
Settlement amounts	$	-	$	490	$	1,535
Insurance payments received or expected to be received	$	-	$	350	$	1,174

We do not believe that it would be meaningful to disclose the aggregate number of asbestos-related lawsuits filed against us because relatively few of these lawsuits are known to involve exposure to asbestos-containing products that we manufactured. Rather, we believe it is more meaningful to disclose the number of lawsuits that are settled and result in a payment to the plaintiff. To the extent we can reasonably estimate the amount of our probable liabilities for pending asbestos-related claims, we establish a financial provision and a corresponding receivable for insurance recoveries. 

Based on currently available information, we have concluded that the resolution of any pending matter, including asbestos-related litigation, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial condition or cash flow. 

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Special Charges, net

6 Months Ended

Jun. 01, 2013

Special Charges [Abstract]

Special Charges Disclosure [Text Block]

Note 6: Special Charges, net

The integration of the Forbo industrial adhesives business we acquired in March 2012 involves a significant amount of restructuring and capital investment to optimize the new combined entity. In addition, we are taking a series of actions in our existing EIMEA operating segment to improve the profitability and future growth prospects of this operating segment. We have combined these two initiatives into a single project which we refer to as the “Business Integration Project”.During the 13 weeks ended June 1, 2013 and June 2, 2012, we incurred special charges, net of $10,843 and $32,127, respectively and $16,176 and $38,609 for the 26 weeks ended June 1, 2013 and June 2, 2012, respectively, for costs related to the Business Integration Project.

The following table provides detail of special charges, net:

		13 Weeks Ended				26 Weeks Ended
		June 1, 2013		June 2, 2012		June 1, 2013		June 2, 2012
Acquisition and transformation related costs:
	Professional services	$	1,884	$	11,087	$	4,166	$	19,514
	Financing availability costs		-		-		-		4,300
	Foreign currency option contract		-		-		-		841
	Loss (gain) on foreign currency forward contracts		-		4		-		(11,621)
	Other related costs		1,995		316		2,773		557
Restructuring costs:
	Workforce reduction costs		3,697		19,567		4,181		23,522
	Facility exit costs		3,267		1,153		5,056		1,496
Special charges, net		$	10,843	$	32,127	$	16,176	$	38,609

Professional services of $1,884 for the 13 weeks ended June 1, 2013 and $11,087 for the 13 weeks ended June 2, 2012,include costs related to organization consulting, investment advisory, financial advisory, legal and valuation services necessary to acquire and integrate the Forbo industrial adhesives business into our existing operating segments. For the 26 weeks ended June 1, 2013 and June 2, 2012 we incurred professional services costs of $4,166 and $19,514, respectively. For the 26 weeks ended 2012, we also incurred other costs related to the acquisition of the Forbo industrial adhesives business including an expense of $4,300 to make a bridge loan available if needed and an expense of $841 related to the purchase of a foreign currency option to hedge a portion of the acquisition purchase price. Also during the first quarter of 2012, we entered into forward currency contracts maturing on March 5, 2012 to purchase 370,000 Swiss francs. Our objective was to economically hedge the purchase price for the pending acquisition of the global industrial adhesives business of Forbo Group after the price was established. The currency contracts were not designated as hedges for accounting purposes. For the 26 weeks ended June 2, 2012, the net gain on the forward currency contracts was $11,621 which partially offset other acquisition and transformation related costs.

During the 13 weeks ended June 1, 2013, we incurred workforce reduction costs of $3,697, other related costs of $1,995, cash facility exit costs of $2,316and non-cash facility exit costs of $951 related to the Business Integration Project. During the 26 weeks ended June 1, 2013, we incurred workforce reduction costs of $4,181, other related costs of $2,773, cash facility exit costs of $3,714and non-cash facility exit costs of $1,342 related to the Business Integration Project. During the 13 weeks and 26 weeks ended June 2, 2012, we incurred workforce reduction costs of $19,567 and $23,522, respectively, other related costs of $316 and $557, respectivelyand non-cash facility exit costs of $1,153 and $1,496, respectively related to the Business Integration Project.

For the 26 weeks ended June 1, 2013, the activity in accrued compensation associated with the Business Integration Project, is as follows:

		Workforce Reduction Costs
Balance at December 1, 2012		$	19,848
	Restructuring charges		4,181
	Cash payments		(5,994)
	Foreign currency translation adjustment		(92)
Balance at June 1, 2013		$	17,943

Of the $17,943 in accrued restructuring costs at June 1, 2013, $17,380 was included in accrued compensation and $563 was included in other liabilities on our Condensed Consolidated Balance Sheets as this portion is not expected to be paid within the next year. In Europe, the accrued restructuring charges included statutory minimum amounts for one site for which final agreement has not been reached with the works council and communicated to the affected employees as well as amounts being accrued ratably for four sites in which works council agreements have been reached. At the communication date to employees, final termination benefits will be measured and will be recognized ratably over the service period employees are required to work to be eligible for termination benefits. In North America and Asia, the benefits were accrued based primarily on the formal severance plans in place for the various locations. The restructuring costs are not allocated to our operating segments.

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Goodwill

6 Months Ended

Jun. 01, 2013

Goodwill Disclosure [Abstract]

Goodwill Disclosure

Note 13: Goodwill

A summary of goodwill activity for the first six months of 2013 is presented below:

Balance at December 1, 2012		$	254,345
	Forbo Industrial Adhesives acquisition (Note 2)		343
	Engent, Inc. acquisition (Note 2)		247
	Currency impact		(2,460)
Balance at June 1, 2013		$	252,475

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Operating Segments

6 Months Ended

Jun. 01, 2013

Operating Segments Abstract

Segment Reporting Disclosure

Note 11: Operating Segments

We are required to report segment information in the same way that we internally organize our business for assessing performance and making decisions regarding allocation of resources. We evaluate the performance of each of our operating segments based on segment operating income, which is defined as gross profit less selling, general and administrative (SG&A) expenses. Segment operating income excludes special charges, net. Corporate expenses are fully allocated to each operating segment. Corporate assets are not allocated to the segments. Inter-segment revenues are recorded at cost plus a markup for administrative costs. Operating results of each segment are regularly reviewed by our chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

The net revenue and segment operating income of the industrial adhesives business acquired in 2012 was recorded in our North America Adhesives, EIMEA, Latin America and Asia Pacific operating segments.

The tables below provide certain information regarding the net revenue and segment operating incomeof each of our operating segments:

	13 Weeks Ended
	June 1, 2013						June 2, 2012
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	190,641	$	14,220	$	28,448	$	193,382	$	15,615	$	25,115
Construction Products		42,934		134		4,047		39,679		105		3,148
EIMEA		185,194		2,793		14,145		193,943		2,307		9,485
Latin America		38,132		141		3,377		38,555		289		3,729
Asia Pacific		62,115		3,788		2,793		61,436		4,596		2,118
Total	$	519,016			$	52,810	$	526,995			$	43,595
	26 Weeks Ended
	June 1, 2013						June 2, 2012
				Inter-		Segment				Inter-		Segment
		Trade	Segment			Operating		Trade	Segment			Operating
		Revenue	Revenue			Income		Revenue	Revenue			Income
North America Adhesives	$	362,903	$	26,832	$	51,922	$	311,478	$	29,386	$	42,610
Construction Products		76,965		215		5,411		72,173		210		3,620
EIMEA		362,695		5,469		20,618		304,594		4,356		16,033
Latin America		73,601		214		5,828		74,152		676		6,116
Asia Pacific		122,694		7,279		4,767		110,052		8,050		2,873
Total	$	998,858			$	88,546	$	872,449			$	71,252

Reconciliation of segment operating income to income from continuing operations before income taxes and income from equity method investments:
		13 Weeks Ended				26 Weeks Ended
		June 1,		June 2,		June 1,		June 2,
		2013		2012		2013		2012
Segment operating income	$	52,810	$	43,595	$	88,546	$	71,252
Special charges, net		(10,843)		(32,127)		(16,176)		(38,609)
Asset impairment charges		-		(671)		-		(671)
Other income (expense), net		(1,814)		231		(1,436)		648
Interest expense		(4,884)		(5,749)		(10,211)		(8,367)
Income from continuing operations before income taxes and income from equity method investments	$	35,269	$	5,279	$	60,723	$	24,253

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Document and Entity Information	3 Months Ended
	Jun. 01, 2013	Jun. 20, 2013
Document And Entity Information [Abstract]
Document type	10-Q
Document period end date	Jun. 01, 2013
Amendment flag	false
Entity registrant name	FULLER H B CO
Entity central index key	0000039368
Entity current reporting status	Yes
Entity voluntary filers	No
Current fiscal year end date	--11-30
Entity filer category	Large Accelerated Filer
Entity well known seasoned issuer	Yes
Entity common stock shares outstanding		50,222,384
Document fiscal year focus	2013
Document fiscal period focus	Q2

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Income Taxes

6 Months Ended

Jun. 01, 2013

Income Taxes Abstract

Income Taxes Disclosure

Note 12: Income Taxes

As of June 1, 2013, we had a $5,301 liability recorded under FASB ASC 740, “Income Taxes” for gross unrecognized tax benefits (excluding interest). As of June 1, 2013, we had accrued $801 of gross interest relating to unrecognized tax benefits. During the second quarter of 2013 our recorded liability for gross unrecognized tax benefits decreased by $95.