Company: GGG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000042888-25-000014
Chunk: 25

Company: GRACO INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 8
Chunk 25
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iluted earnings per share$0.72 $0.71 Anti-dilutive shares not included in diluted earnings per share computation1,860 940 

8

4.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 Granted959 85.93 Exercised(357)27.87 Canceled(10)56.06 Outstanding, March 28, 20259,731 $59.60 6,907 $51.06 The Company recognized year-to-date share-based compensation of $7 million in 2025 and $11 million in 2024. As of March 28, 2025, there was $37 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 3.0 years.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: Three Months Ended March 28,2025March 29,2024Expected 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 $28.05 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: Three Months Ended March 28,2025March 29,2024Expected life in years1.01.0Interest rate4.1 %4.9 %Volatility19.6 %24.2 %Dividend yield1.