Note 7 - Redeemable Non-controlling Interest

6 Months Ended

Jun. 02, 2018

Notes to Financial Statements

Noncontrolling Interest Disclosure [Text Block]

Note

7:

Redeemable Non-Controlling Interest

Prior to the end of the

first

quarter of

2017,

we had a non-controlling interest in H.B. Fuller Kimya Sanayi Ticaret A.S. (“HBF Kimya”) which was accounted for as a redeemable non-controlling interest because both the non-controlling shareholder and H.B. Fuller had 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 made the redemption of the non-controlling ownership shares of HBF Kimya outside of our control, these shares were classified as a redeemable non-controlling interest in temporary equity in the Consolidated Balance Sheets. The non-controlling shareholder was entitled to increase his ownership by

1

percent per year for

5

years up to a maximum of

13

percent ownership based on the achievement of profitability targets in each year. The option was subject to a minimum price of

€3,500.

The results of operations for the HBF Kimya non-controlling interest were consolidated in our financial statements. Both the non-controlling interest and the accretion adjustment to redemption value were included in net income attributable to non-controlling interests in the Consolidated Statements of Income for the

three

months ended

March 4, 2017.

During the

three

months ended

March 4, 2017,

we purchased the remaining shares from the non-controlling shareholder for

€4,206.

The difference between the non-controlling interest balance and the purchase price was recorded in additional paid-in capital for the

three

months ended

March 4, 2017.