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				Nine Months Ended
	September 1,		September 2,		September 1,		September 2,
(Shares in thousands)	2018		2017		2018		2017
Weighted-average common shares - basic		50,632		50,384		50,551		50,374
Equivalent shares from share-based compensations plans		1,506		1,221		1,410		1,210
Weighted-average common and common equivalent shares - diluted		52,138		51,605		51,961		51,584

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

1,558,690

and

27,942

shares for the

three

months ended

September 1, 2018

and

September 2, 2017,

respectively, and

2,423,367

and

97,687

shares for the

nine

months ended

September 1, 2018

and

September 2, 2017,

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