Note 10 - Earnings Per Share

9 Months Ended

Aug. 31, 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				Nine Months Ended
	August 31,		September 2,		August 31,		September 2,
(Shares in thousands)	2024		2023		2024		2023
Weighted-average common shares - basic		54,975		54,394		54,874		54,279
Equivalent shares from share-based compensations plans		1,675		1,639		1,746		1,611
Weighted-average common and common equivalent shares diluted		56,650		56,033		56,620		55,890

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 517,442 and 1,025,337 shares for the three months ended August 31, 2024 and September 2, 2023, respectively, and 957,127 and 1,164,870 shares for the nine months ended August 31, 2024 and September 2, 2023, respectively, were excluded from diluted earnings per share calculations because they were antidilutive.