Graco Inc.

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SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/21/2017
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The following table summarizes information for options outstanding and exercisable at December 30, 2016 (in thousands, except exercise prices and contractual term amounts):
 
 
Options Outstanding
 
Options Exercisable
Range of  
Prices
 
Options
Outstanding
 
Weighted Average
Remaining
Contractual Term
in Years
 
Weighted Average
Exercise Price
 
Options
Exercisable
 
Weighted Average
Exercise Price
$16 - $30
 
1,109

 
2.6
 
$
23.81

 
1,109

 
$
23.81

$30 - $45
 
902

 
2.7
 
39.51

 
902

 
39.51

$45 - $60
 
1,056

 
5.6
 
54.18

 
933

 
53.57

$60 - $75
 
1,620

 
8.3
 
73.27

 
398

 
74.44

$75 - $84
 
848

 
8.7
 
80.12

 
330

 
75.89

$16 - $84
 
5,535

 
5.8
 
$
55.26

 
3,672

 
$
45.40


The aggregate intrinsic value of exercisable option shares was $138.5 million as of December 30, 2016, with a weighted average contractual term of 4.3 years. There were approximately 5.5 million vested share options and share options expected to vest as of December 30, 2016, with an aggregate intrinsic value of $154.0 million, a weighted average exercise price of $54.98 and a weighted average contractual term of 5.8 years.

Information related to options exercised follows (in thousands):
 
2016
 
2015
 
2014
Cash received
$
21,142

 
$
7,720

 
$
20,343

Aggregate intrinsic value
30,247

 
11,851

 
25,284

Tax benefit realized
9,900

 
3,600

 
8,200


Employee Stock Purchase Plan. Under the Company’s Employee Stock Purchase Plan, the purchase price of the shares is the lesser of 85 percent of the fair market value on the first day or the last day of the plan year. Under this plan, the Company issued 170,144 shares in 2016, 165,897 shares in 2015 and 193,084 shares in 2014.

Authorized Shares. Shares authorized for issuance under the stock option and purchase plans are shown below (in thousands):
 
Total Shares
Authorized
 
Available for Future
Issuance as of December 30, 2016
Stock Incentive Plan (2015)
3,500

 
2,284

Employee Stock Purchase Plan (2006)
7,000

 
4,758

Total
10,500

 
7,042


Amounts available for future issuance exclude outstanding options. Options outstanding as of December 30, 2016, include options granted under two plans that were replaced by subsequent plans. No shares are available for future grants under those plans.

Share-based Compensation. The Company recognized share-based compensation cost as follows (in thousands):
 
2016
 
2015
 
2014
Share-based compensation
$
21,134

 
$
19,224

 
$
17,248

Tax benefit
6,100

 
5,400

 
4,400

Share-based compensation, net of tax
$
15,034

 
$
13,824

 
$
12,848


As of December 30, 2016, there was $13.0 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of approximately 2.5 years.

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