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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Income tax expense consists of (in thousands):

 

  2014   2013   2012  

Current

Domestic

Federal

$ 73,584   $ 64,753   $ 61,989  

State and local

  2,775     2,470     5,180  

Foreign

  12,263     11,569     11,218  
  

 

 

    

 

 

    

 

 

 
  88,622     78,792     78,387  
  

 

 

    

 

 

    

 

 

 

Deferred

Domestic

  2,497     (553   (5,431

Foreign

  (1,619   (239   (4,756
  

 

 

    

 

 

    

 

 

 
  878     (792   (10,187
  

 

 

    

 

 

    

 

 

 

Total

$ 89,500   $ 78,000   $ 68,200  
  

 

 

    

 

 

    

 

 

 

Income taxes paid were $92.1 million, $78.0 million and $71.7 million in 2014, 2013 and 2012.

A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows:

 

  2014   2013   2012  

Statutory tax rate

  35   35   35

Tax effect of international operations

  (1   (1   (1

State taxes, net of federal effect

  1      1      1  

U.S. general business tax credits

  (1   (2   -    

Domestic production deduction

  (3   (3   (2

Dividends from Liquid Finishing

  (3   (3   (2
  

 

 

   

 

 

   

 

 

 

Effective tax rate

  28   27   31
  

 

 

   

 

 

   

 

 

 

Deferred income taxes are provided for temporary differences between the financial reporting and the tax basis of assets and liabilities. The deferred tax assets (liabilities) resulting from these differences are as follows (in thousands):

 

  2014   2013  

Inventory valuations

$ 9,163   $ 8,825  

Self-insurance retention accruals

  2,098     1,887  

Warranty reserves

  2,074     2,089  

Vacation accruals

  3,023     2,740  

Bad debt reserves

  2,409     1,961  

Other

  1,202     1,325  
  

 

 

    

 

 

 

Deferred income taxes, current

  19,969     18,827  

Included in other current liabilities

  (1,743   (1,095
  

 

 

    

 

 

 

Total Current

  18,226     17,732  
  

 

 

    

 

 

 

Unremitted earnings of consolidated foreign subsidiaries

  (7,316   (6,316

Excess of tax over book depreciation

  (50,664   (42,322

Pension liability

  35,247     20,798  

Postretirement medical

  7,743     8,097  

Acquisition costs

  3,369     3,644  

Stock compensation

  16,657     14,401  

Deferred compensation

  1,350     1,193  

Other

  142     (64
  

 

 

    

 

 

 

Total Non-current

  6,528     (569
  

 

 

    

 

 

 

Net deferred tax assets

$ 24,754   $ 17,163  
  

 

 

    

 

 

 

 

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