Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 8

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 8
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60 6,582 $47.16 Granted963 85.93 Exercised(428)29.47 Canceled(53)73.99 Outstanding, June 27, 20259,621 $59.68 6,885 $51.38 The Company recognized year-to-date share-based compensation of $17 million in 2025 and $20 million in 2024. As of June 27, 2025, there was $29 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 2.8 years.

9

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions and results: Six Months Ended June 27,2025June 28,2024Expected life in years6.66.6Interest rate4.4 %4.2 %Volatility26.2 %26.3 %Dividend yield1.3 %1.1 %Weighted average fair value per share$26.80 $28.03 Under the Company’s Employee Stock Purchase Plan, the Company issued 246,000 shares in 2025 and 330,000 shares in 2024. The fair value of the employees’ purchase rights under this plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees’ purchase rights determined using the Black-Scholes option pricing model with the following assumptions and results: Six Months Ended June 27,2025June 28,2024Expected life in years1.01.0Interest rate4.1 %4.9 %Volatility19.6 %24.2 %Dividend yield1.3 %1.1 %Weighted average fair value per share$19.65 $23.16 

6. Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months EndedSix Months Ended June 27,2025June 28,2024June 27,2025June 28,2024Net earnings available to common shareholders$127,623 $