Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 31

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 8
Chunk 31
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28, 2024$(29,379)$(23,500)$(52,879)

Six Months Ended June 28, 2024Balance, December 29, 2023$(31,012)$(3,983)$(34,995)Other comprehensive income (loss) before reclassifications— (19,517)(19,517)Reclassified to pension cost and deferred tax1,633 — 1,633 Balance, June 28, 2024$(29,379)$(23,500)$(52,879)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(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