Graco Inc.

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SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/17/2015
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Amounts related to pension and postretirement medical adjustments are reclassified to pension cost, which is allocated to cost of products sold and operating expenses based on salaries and wages, approximately as follows (in thousands):

 

  2014   2013   2012  

Cost of products sold

$ 1,701   $ 3,635   $ 3,900  

Product development

  714     1,699     1,728  

Selling, marketing and distribution

  1,371     2,828     2,886  

General and administrative

  820     2,124     2,032  
  

 

 

    

 

 

    

 

 

 

Total before tax

$ 4,606   $ 10,286   $ 10,546  

Income tax (benefit)

  (1,495   (3,805   (3,611
  

 

 

    

 

 

    

 

 

 

Total after tax

$ 3,111   $ 6,481   $ 6,935  
  

 

 

    

 

 

    

 

 

 

H. Share-Based Awards, Purchase Plans and Compensation Cost

Stock Option and Award Plan. The Company has a stock incentive plan under which it grants stock options and share awards to directors, officers and other employees. Option price is the market price on the date of grant. Options become exercisable at such time, generally over three or four years, and in such installments as set by the Company, and expire ten years from the date of grant.

Restricted share awards have been made to certain key employees under the plan. The market value of restricted stock at the date of grant is charged to operations over the vesting period. Compensation cost charged to operations for restricted share awards was $0.3 million in 2014, $0.5 million in 2013 and $0.4 million in 2012. Individual nonemployee directors of the Company may elect to receive, either currently or deferred, all or part of their annual retainer, and/or payment for attendance at Board or Committee meetings, in the form of shares of the Company’s common stock instead of cash. Under this arrangement, the Company issued 4,867 shares in 2014, 6,079 shares in 2013 and 7,656 shares in 2012. The expense related to this arrangement is not significant. The Company has a stock appreciation plan that provides for payments of cash to eligible foreign employees based on the change in the market price of the Company’s common stock over a period of time. Compensation cost related to this plan was $1.0 million in 2014, $1.9 million in 2013 and $0.5 million in 2012.

Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices):

 

                                                                                           
  Option
Shares
Weighted
Average
Exercise
Price
  Options
Exercisable
Weighted
Average
Exercise
Price

Outstanding, December 30, 2011

  5,478   $ 32.12      3,211    $ 32.27   

Granted

  566     50.33   

Exercised

  (805   27.14   

Canceled

  (47   35.24   
  

 

 

 

  

 

 

    

 

 

 

  

 

 

 

Outstanding, December 28, 2012

  5,192     34.85      3,194      32.99   

Granted

  969     65.97   

Exercised

  (990   33.04   

Canceled

  (22   40.71   
  

 

 

 

  

 

 

    

 

 

 

  

 

 

 

Outstanding, December 27, 2013

  5,149     41.03      3,311      33.20   

Granted

  475     74.62   

Exercised

  (607   35.73   

Canceled

  (42   61.35   
  

 

 

 

  

 

 

    

 

 

 

  

 

 

 

Outstanding, December 26, 2014

  4,975   $ 44.72      3,318    $ 34.86   
  

 

 

 

  

 

 

    

 

 

 

  

 

 

 

 

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