Note 11 - Earnings Per Share

6 Months Ended

May 30, 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				Six Months Ended
	May 30,		June 1,		May 30,		June 1,
(Shares in thousands)	2020		2019		2020		2019
Weighted-average common shares - basic		51,420		50,902		51,874		50,827
Equivalent shares from share-based compensations plans		609		1,203		431		1,176
Weighted-average common and common equivalent shares diluted		52,029		52,105		52,305		52,003

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 5,102,912 and 2,751,956 shares for the three months ended May 30, 2020 and June 1, 2019, respectively, and 4,461,452 and 3,020,604 shares for the six months ended May 30, 2020 and June 1, 2019, respectively, were excluded from diluted earnings per share calculations because they were antidilutive.