Note 10 - Earnings Per Share

6 Months Ended

Jun. 01, 2024

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 1,		June 3,		June 1,		June 3,
(Shares in thousands)	2024		2023		2024		2023
Weighted-average common shares - basic		54,946		54,269		54,824		54,222
Equivalent shares from share-based compensations plans		1,690		1,448		1,780		1,596
Weighted-average common and common equivalent shares diluted		56,636		55,717		56,604		55,818

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 787,801 and 1,026,155 shares for the three months ended June 1, 2024 and June 3, 2023, respectively, and 1,110,664 and 1,156,557 shares for the six months ended June 1, 2024 and June 3, 2023, respectively, were excluded from diluted earnings per share calculations because they were antidilutive.