EX-11 3 exhibit11.htm COMPUTATION OF NET EARNINGS PER COMMON SHARE Exhibit 11

EXHIBIT 11

GRACO INC. AND SUBSIDIARIES
COMPUTATION OF NET EARNINGS PER COMMON SHARE

(Unaudited)

             Thirteen Weeks Ended            Thirty-nine Weeks Ended
  Sept 26, 2003 Sept 27, 2002 Sept 26, 2003 Sept 27, 2002
            (in thousands except per share amounts)
   
Net earnings applicable to common        
    shareholders for basic and        
    diluted earnings per share $22,711 $20,494 $65,368 $57,556
   
Weighted average shares outstanding        
    for basic earnings per share 45,851 47,604 46,249 47,376
   
Dilutive effect of stock options computed        
    using the treasury stock method        
    and the average market price 827 682 744 804
   
Weighted average shares outstanding        
    for diluted earnings per share 46,678 48,286 46,993 48,180
   
Basic earnings per share $    0.50 $    0.43 $    1.41 $    1.21
   
Diluted earnings per share $    0.49 $    0.42 $    1.39 $    1.19