Note

12:

Earnings Per Share

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

	Three Months Ended				Six Months Ended
	June 2,		June 3,		June 2,		June 3,
(Shares in thousands)	2018		2017		2018		2017
Weighted-average common shares - basic		50,551		50,496		50,511		50,369
Equivalent shares from share-based compensations plans		1,295		1,190		1,361		1,204
Weighted-average common and common equivalent shares - diluted		51,846		51,686		51,872		51,573

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 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.

Share-based compensation awards for

2,223,223

and

6,857

shares for the

three

months ended

June 2, 2018

and

June 3, 2017,

respectively, and

2,410,032

and

132,560

shares for the

six

months ended

June 2, 2018

and

June 3, 2017,

respectively, were excluded from the diluted earnings per share calculations because they were antidilutive.