Company: GGG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0000042888-25-000047
Chunk: 32

Company: GRACO INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 8
Chunk 32
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classified to pension cost and deferred tax(202)— (202)Balance, September 27, 2024$(29,581)$(4,009)$(33,590)

Nine Months Ended September 27, 2024Balance, December 29, 2023$(31,012)$(3,983)$(34,995)Other comprehensive income (loss) before reclassifications— (26)(26)Reclassified to pension cost and deferred tax1,431 — 1,431 Balance, September 27, 2024$(29,581)$(4,009)$(33,590)Amounts related to pension and post-retirement medical adjustments are reclassified to non-service components of pension cost that are included within other income, net. 

5. Share-Based Awards

Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices):OptionSharesWeighted AverageExercise PriceOptionsExercisableWeighted AverageExercise PriceOutstanding, December 27, 20249,139 $55.60 6,582 $47.16 Granted963 85.93 Exercised(533)30.99 Canceled(85)75.44 Outstanding, September 26, 20259,484 $59.87 6,786 $51.64 The Company recognized year-to-date share-based compensation of $25 million in 2025 and $27 million in 2024. As of September 26, 2025, there was $22 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 2.6 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: Nine Months Ended September 26,2025September 27,2024Expected 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 257,000 shares in 2025 and 330,000 shares in 2024. The fair value of the employees’