Note 9 - Earnings Per Share

6 Months Ended

May 29, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 9: 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 29,		May 30,		May 29,		May 30,
(Shares in thousands)	2021		2020		2021		2020
Weighted-average common shares - basic		52,839		51,420		52,666		51,874
Equivalent shares from share-based compensations plans		1,455		609		1,151		431
Weighted-average common and common equivalent shares diluted		54,294		52,029		53,817		52,305

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 208,888 and 5,102,912 shares for the three months ended May 29, 2021 and May 30, 2020, respectively, and 2,107,062 and 4,461,452 for the six months ended May 29, 2021 and May 30, 2020, respectively, were excluded from diluted earnings per share calculations because they were antidilutive.