(1) Acquisition project costs include costs related to evaluating, acquiring 
and integrating business acquisitions. Acquisition project costs include 
$8,037 in transaction costs (primarily consulting and professional fees, 
representations and warranties, insurance premiums and employee acquisition 
related travel expenses), $740 in purchase accounting costs (primarily 
professional fees for valuation services, inventory step-up cost and the 
impact of changes to contingent consideration liabilities after the completion 
of the purchase price allocation) and $577 in business integration costs 
(primarily costs of transition services agreements and, for the three month 
ended March 2, 2024, retention bonuses paid to employees of the acquired 
entities) for the year ended November 30, 2024. 
(2) Organizational realignment includes costs incurred as a direct result of 
the organizational realignment program, including professional fees related to 
legal entity and business structure changes, employee retention and severance 
costs, and facility rationalization costs related to the closure of production 
facilities and consolidation of business activities. Facility rationalization 
costs include plant closure costs, the impact of accelerated depreciation, 
and, for the three months ended March 2, 2024, operational inefficiencies. 
Organizational realignment includes $9,084 in professional fees related to 
legal entity and business structure changes, $16,553 in employee severance and 
other related costs and $14,359 related to facility rationalization costs for 
the year ended November 30, 2024. 
(3) Project One includes non-capitalizable project costs related to 
implementing our global Enterprise Resource Planning system, including 
upgrading to SAP S/4HANA$(R)$, which will upgrade and standardize our 
information system. 
(4) Business divestiture includes impairment losses for goodwill and 
long-lived assets, and project costs incurred as a direct result of the 
pending sale of the North America Flooring business, which is a component of 
our Construction Adhesives operating segment. Impairment losses represent the 
difference between the book value of the assets held for sale and their net 
realizable value. 
(5) Other includes a gain from insurance recoveries and a loss from the 
write-off of a cost method investment for the year ended November 30, 2024. 
(6) Discrete tax items for the year ended November 30, 2024 are related to 
various foreign tax matters as well as excess tax benefit related to U.S. 
stock compensation. 
(7) The income tax effect on adjustments represents the difference between 
income taxes on net income before income taxes and income from equity method 
investments reported in accordance with U.S. GAAP and adjusted net income 
before income taxes and income from equity method investments. 
(8) Adjusted net income attributable to H.B. Fuller, adjusted diluted income 
per common share attributable to H.B. Fuller and adjusted EBITDA are non-GAAP 
financial measures. Adjusted net income attributable to H.B. Fuller is defined 
as net income before the specific adjustments shown above. Adjusted diluted 
income per common share is defined as adjusted net income attributable to H.B. 
Fuller divided by the number of diluted common shares. Adjusted EBITDA is 
defined as net income before interest, income taxes, depreciation, 
amortization and the specific adjustments shown above. The table above 
provides a reconciliation of adjusted net income attributable to H.B. Fuller, 
adjusted diluted income per common share attributable to H.B. Fuller and 
adjusted EBITDA to net income attributable to H.B. Fuller, the most directly 
comparable financial measure determined and reported in accordance with U.S. 
GAAP. 
(9) Depreciation and amortization expense added back for EBITDA is adjusted 
for amounts already included in adjusted net income attributable to H.B. 
Fuller totaling ($4,137) for the year ended November 30, 2024. 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250102275912/en/

 
    CONTACT:    Steven Brazones 

Investor Relations Contact

651-236-5060

(END) Dow Jones Newswires

January 02, 2025 08:30 ET (13:30 GMT)