Note 10 - Earnings Per Share

6 Months Ended

Jun. 03, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 10: 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
	June 3,		May 28,		June 3,		May 28,
(Shares in thousands)	2023		2022		2023		2022
Weighted-average common shares - basic		54,269		53,497		54,222		53,425
Equivalent shares from share-based compensations plans		1,448		1,581		1,596		1,812
Weighted-average common and common equivalent shares diluted		55,717		55,078		55,818		55,237

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 1,026,155 and 658,511 shares for the three months ended June 3, 2023 and May 28, 2022, respectively, and 1,156,557 and 744,479 shares for the six months ended June 3, 2023 and May 28, 2022, respectively, were excluded from diluted earnings per share calculations because they were antidilutive.