Note 11 - Earnings Per Share

3 Months Ended

Feb. 29, 2020

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
	February 29,		March 2,
(Shares in thousands)	2020		2019
Weighted-average common shares - basic		51,295		50,752
Equivalent shares from share-based compensations plans		1,285		1,149
Weighted-average common and common equivalent shares - diluted		52,580		51,901

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 3,606,776 and 3,002,073 shares for the three months ended February 29, 2020 and March 2, 2019, respectively, were excluded from diluted earnings per share calculations because they were antidilutive.