Graco Inc.

    Print Page | Close Window

SEC Filings

10-Q
GRACO INC filed this Form 10-Q on 04/26/2017
Entire Document
 << Previous Page | Next Page >>

GRACO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.Basis of Presentation

The consolidated balance sheet of Graco Inc. and Subsidiaries (the “Company”) as of March 31, 2017 and the related statements of earnings and comprehensive income for the three months ended March 31, 2017 and March 25, 2016, and cash flows for the three months ended March 31, 2017 and March 25, 2016 have been prepared by the Company and have not been audited.

In the opinion of management, these consolidated financial statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of the Company as of March 31, 2017, and the results of operations and cash flows for all periods presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K.

The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year.

2.Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):
 
Three Months Ended
 
March 31,
2017
 
March 25,
2016
Net earnings available to common shareholders
$
60,732

 
$
39,552

Weighted average shares outstanding for basic earnings per share
55,768

 
55,394

Dilutive effect of stock options computed using the treasury stock
method and the average market price
1,944

 
1,315

Weighted average shares outstanding for diluted earnings per share
57,712

 
56,709

Basic earnings per share
$
1.09

 
$
0.71

Diluted earnings per share
$
1.05

 
$
0.70


Stock options to purchase 885,000 and 1,909,000 shares were not included in the March 31, 2017 and March 25, 2016 computations of diluted earnings per share, respectively, because they would have been anti-dilutive.

3.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):
 
Option
Shares
 
Weighted Average
Exercise Price
 
Options
Exercisable
 
Weighted Average
Exercise Price
Outstanding, December 30, 2016
5,535

 
$
55.26

 
3,672

 
$
45.40

Granted
539

 
91.02

 
 
 
 
Exercised
(387
)
 
48.38

 
 
 
 
Canceled
(11
)
 
77.19

 
 
 
 
Outstanding, March 31, 2017
5,676

 
$
59.09

 
3,769

 
$
48.24



6

 << Previous Page | Next Page >>