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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Table of Contents

Components of other intangible assets were (dollars in thousands):

 

  Estimated
Life
(years)
Cost   Accumulated
Amortization
  Foreign
Currency
Translation
  Book
Value
 

December 26, 2014

                 

Customer relationships

3 - 14 $ 143,144   $ (21,948 $ (7,334 $ 113,862  

Patents, proprietary technology and product documentation

3 - 11   18,268     (7,126   (655   10,487  

Trademarks, trade names and other

5   175     (44   -     131  
     

 

 

    

 

 

   

 

 

   

 

 

 
  161,587     (29,118   (7,989   124,480  

Not Subject to Amortization Brand names

  55,265     -     (3,467   51,798  
     

 

 

    

 

 

   

 

 

   

 

 

 

Total

$ 216,852   $ (29,118 $ (11,456 $ 176,278  
     

 

 

    

 

 

   

 

 

   

 

 

 

December 27, 2013

                 

Customer relationships

3 - 14 $ 121,205   $ (26,377 $ 1,458   $ 96,286  

Patents, proprietary technology and product documentation

3 - 11   16,125     (5,869   118     10,374  

Trademarks, trade names and other

5   175     (9   -     166  
     

 

 

    

 

 

   

 

 

   

 

 

 
  137,505     (32,255   1,576     106,826  

Not Subject to Amortization Brand names

  40,400     -     714     41,114  
     

 

 

    

 

 

   

 

 

   

 

 

 

Total

$ 177,905   $ (32,255 $ 2,290   $ 147,940  
     

 

 

    

 

 

   

 

 

   

 

 

 

Amortization of intangibles was $11.6 million in 2014, $12.5 million in 2013 and $15.0 million in 2012. Estimated future annual amortization is as follows (excluding amounts related to businesses acquired subsequent to the end of 2014): $12.4 million in 2015, $12.1 million in 2016, $11.8 million in 2017, $11.7 million in 2018, $11.6 million in 2019 and $64.9 million thereafter.

Other Assets. Components of other assets were (in thousands):

 

  2014   2013  

Cash surrender value of life insurance

$ 13,187   $ 12,611  

Capitalized software

  3,596     3,448  

Equity method investment

  5,859     5,569  

Deposits and other

  3,565     3,017  
  

 

 

    

 

 

 

Total

$   26,207   $   24,645  
  

 

 

    

 

 

 

The Company paid $1.5 million in 2013 for contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans. These insurance contracts will be used to fund the non-qualified pension and deferred compensation arrangements. The insurance contracts are held in a trust and are available to general creditors in the event of the Company’s insolvency. Changes in cash surrender value are recorded in operating expense and were not significant in 2014 and 2012. In 2013, increases in cash surrender value totaled $1.6 million and were offset by expenses related to the non-qualified pension and deferred compensation plans funded by the insurance contracts.

Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation.

Impairment of Long-Lived Assets. The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. Goodwill and other intangible assets not subject to amortization are also reviewed for impairment annually in the fourth quarter. There were no write-downs of long-lived assets in the periods presented.

 

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