Note 9 - Earnings Per Share

9 Months Ended

Aug. 27, 2022

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				Nine Months Ended
	August 27,		August 28,		August 27,		August 28,
(Shares in thousands)	2022		2021		2022		2021
Weighted-average common shares - basic		53,644		53,049		53,498		52,794
Equivalent shares from share-based compensations plans		1,486		1,597		1,703		1,299
Weighted-average common and common equivalent shares diluted		55,130		54,646		55,201		54,093

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 of 573,914 and 93,876 shares for the three months ended August 27, 2022 and August 28, 2021, respectively, and 691,856 and 1,655,852 shares for the nine months ended August 27, 2022 and August 28, 2021, respectively, were excluded from diluted earnings per share calculations because they were antidilutive.