Note 11 - Earnings Per Share

9 Months Ended

Aug. 31, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 11: 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
	August 31,		September 1,		August 31,		September 1,
(Shares in thousands)	2019		2018		2019		2018
Weighted-average common shares - basic		50,939		50,632		50,864		50,551
Equivalent shares from share-based compensations plans		563		1,506		972		1,410
Weighted-average common and common equivalent shares - diluted		51,502		52,138		51,836		51,961

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 and (b) the amount of unearned share-based compensation costs attributed to future services. 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 13,429 and 1,558,690 shares for the three months ended August 31, 2019 and September 1, 2018, respectively, and 152,999 and 2,423,367 shares for the nine months ended August 31, 2019 and September 1, 2018, respectively, were excluded from the diluted earnings per share calculations because they were antidilutive.