Note 9 - Earnings Per Share

6 Months Ended

May 28, 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				Six Months Ended
	May 28,		May 29,		May 28,		May 29,
(Shares in thousands)	2022		2021		2022		2021
Weighted-average common shares - basic		53,497		52,839		53,425		52,666
Equivalent shares from share-based compensations plans		1,581		1,455		1,812		1,151
Weighted-average common and common equivalent shares diluted		55,078		54,294		55,237		53,817

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 658,511 and 208,888 shares for the three months ended May 28, 2022 and May 29, 2021, respectively, and 744,479 and 2,107,062 shares for the six months ended May 28, 2022 and May 29, 2021, respectively, were excluded from diluted earnings per share calculations because they were antidilutive.