Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 89

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 89
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177 2,319 Share-based compensation, net of tax$28,597 $27,052 $22,376 As of December 27, 2024, there was $16 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of approximately 2.2 years.

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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:202420232022Expected life in years6.66.76.4Interest rate4.2 %4.0 %2.7 %Volatility26.3 %26.3 %26.2 %Dividend yield1.1 %1.3 %1.2 %Weighted average fair value per share$28.03 $21.76 $19.10 Expected life is estimated based on vesting terms and exercise and termination history. Interest rate is based on the U.S. Treasury rate on zero-coupon issues with a remaining term equal to the expected life of the option. Expected volatility is based on historical volatility over a period commensurate with the expected life of options.The fair value of employees’ purchase rights under the Employee Stock Purchase 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:202420232022Expected life in years1.01.01.0Interest rate4.9 %5.1 %0.9 %Volatility24.2 %26.4 %20.5 %Dividend yield1.1 %1.4 %1.2 %Weighted average fair value per share$23.16 $18.04 $16.01 

I. Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):202420232022Net earnings available to common shareholders$486,084 $506,511 $460,645 Weighted average shares outstanding for basic earnings per share168,884 168,442 168,952 Dilutive effect