Note 12 - Earnings Per Share

3 Months Ended

Mar. 04, 2017

Note

12:

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
	March 4,		February 27,
(Shares in thousands)	2017		2016
Weighted-average common shares - basic		50,243		49,958
Equivalent shares from share-based compensations plans		1,217		1,037
Weighted-average common and common equivalent shares - diluted		51,460		50,995

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, (b) the amount of unearned share-based compensation costs attributed to future services and (c) the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the award. 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.

Options to purchase

632,720

and

1,495,004

shares of common stock at a weighted-average exercise price of

$50.10

and

$42.88

for the quarters ended

March

2017

and

February

27,

2016,

respectively, were excluded from the diluted earnings per share calculations because they were antidilutive.