EXHIBIT 11 GRACO INC. AND SUBSIDIARIES COMPUTATION OF NET EARNINGS PER COMMON SHARE (Unaudited) Thirteen Weeks Ended -------------------- Mar. 29, 2002 Mar. 30, 2001 ------------- ------------- (in thousands except per share amounts) Net earnings applicable to common shareholders for basic and diluted earnings per share $15,546 $13,120 Weighted average shares outstanding for basic earnings per share 31,306 30,561 Dilutive effect of stock options computed using the treasury stock method and the average market price 614 568 Weighted average shares outstanding for diluted earnings per share 31,920 31,129 Basic earnings per share $ 0.50 $ 0.43 Diluted earnings per share $ 0.49 $ 0.42