Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 90

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 90
---
 of stock options computed based on the treasury stock method using the average market price3,521 3,757 3,941 Weighted average shares outstanding for diluted earnings per share172,405 172,199 172,893 Basic earnings per share$2.88 $3.01 $2.73 Diluted earnings per share$2.82 $2.94 $2.66 Anti-dilutive stock options excluded from computations of diluted earnings per share totaled 0.9 million shares in 2024, 2.0 million shares in 2023 and 2.2 million shares in 2022.

J. Retirement Benefits

The Company has a defined contribution plan, under Section 401(k) of the Internal Revenue Code, which provides retirement benefits to most U.S. employees. For all employees who choose to participate, the Company matches employee contributions at a 100 percent rate, up to 3 percent of the employee’s compensation. For employees not covered by a defined benefit plan, the Company contributed an amount equal to 2 percent of the employee’s compensation. Employer contributions totaled $12 million in 2024, $12 million in 2023 and $10 million in 2022.The Company’s postretirement medical plan provides certain medical benefits for retired U.S. employees. Employees hired before January 1, 2005, are eligible for these benefits upon retirement and fulfillment of other eligibility requirements as specified by the plan.

55

The Company has both funded and unfunded noncontributory defined benefit pension plans that together cover most U.S. employees hired before January 1, 2006, certain directors and some of the employees of the Company’s non-U.S. subsidiaries. In December of 2023, the Company entered into an agreement under which approximately $147 million of pension obligations of its U.S. funded defined benefit pension plan were transferred to an insurance company. The Company recognized a non-cash pension settlement loss of approximately $42 million as a result of the transaction.For U.S. plans, benefits are based on years of service and the highest 5 consecutive years’ earnings in the 10 years preceding retirement. Plans are funded annually in amounts consistent with minimum funding levels and maximum tax deduction limits, although the Company may make additional voluntary contributions from time to time to improve the funded status of its plans.  Investment policies and strategies of the U.S. funded pension plan are based on participant demographics. As the plan covers active participants and retirees