Company: GGG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0000042888-25-000047
Chunk: 33

Company: GRACO INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 8
Chunk 33
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 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: Nine Months Ended September 26,2025September 27,2024Expected 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 EndedNine Months Ended September 26,2025September 27,2024September 26,2025September 27,2024Net earnings available to common shareholders$137,628 $122,197 $389,352 $377,376 Weighted average shares outstanding for basic earnings per share165,733 168,810 166,693 168,800 Dilutive effect of stock options computed using the treasury stock method and the average market price2,890 3,301 2,896 3,548 Weighted average shares outstanding for diluted earnings per share168,623 172,111 169,589 172,348 Basic earnings per share$0.83 $0.72 $2.34 $2.24 Diluted earnings per share$0.82 $0.71 $2.30 $2.19 Anti-dilutive shares not included in diluted earnings per share computation1,825 1,154 1,827 3,293 

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7. Retirement Benefits

The components of net periodic benefit cost for retirement benefit plans were as follows (in thousands): Three Months EndedNine Months Ended September 26,2025September 27,2024September 26,2025September 27,2024Pension BenefitsService cost$1,162 $1,102 $3,454 $3,822 Interest cost2,375 2,256 7,086 6,890 Expected return on assets