Graco Inc.

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SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/16/2016
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M. Divestiture

In April 2012, the Company purchased the finishing businesses of Illinois Tool Works Inc. The acquisition included finishing equipment operations, technologies and brands of the Powder Finishing and Liquid Finishing businesses. Results of the Powder Finishing businesses have been included in the Industrial segment since the date of acquisition.

Under terms of a hold separate order from the Federal Trade Commission, the Company did not have the power to direct the activities of the Liquid Finishing businesses that most significantly impacted the economic performance of those businesses. Consequently, we reflected our investment in the Liquid Finishing businesses as a cost-method investment on our balance sheet, and their results of operations were not consolidated with those of the Company.

In April 2015, the Company sold the Liquid Finishing business assets for a price of $610 million cash. Held separate investment income includes the pre-tax gain on sale of $150 million, net of transaction and other related expenses, including a $7 million contribution to the Company’s charitable foundation. Held separate investment income also includes dividends of $42 million. Net earnings include after-tax gain and dividends totaling $141 million. Dividends received from after-tax earnings of Liquid Finishing included in investment income totaled $28 million in 2014 and $28 million in 2013. No further Liquid Finishing dividends will be received.

N. Quarterly Financial Information (unaudited)
(In thousands, except per share amounts)
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
2015
 
 
 
 
 
 
 
Net Sales
$
306,453

 
$
335,489

 
$
318,986

 
$
325,557

Gross Profit
162,129

 
180,623

 
170,196

 
171,752

Net Earnings
68,841

 
172,637

 
50,691

 
53,544

Basic Net Earnings per Common Share
$
1.17

 
$
2.96

 
$
0.88

 
$
0.96

Diluted Net Earnings per Common Share
1.14

 
2.90

 
0.86

 
0.94

Cash Dividends Declared per Common Share
0.30

 
0.30

 
0.30

 
0.33

2014
 
 
 
 
 
 
 
Net Sales
$
289,962

 
$
322,549

 
$
302,614

 
$
306,005

Gross Profit
159,312

 
176,850

 
165,814

 
164,760

Net Earnings
50,745

 
66,236

 
59,551

 
49,041

Basic Net Earnings per Common Share
$
0.83

 
$
1.10

 
$
0.99

 
$
0.83

Diluted Net Earnings per Common Share
0.81

 
1.07

 
0.97

 
0.80

Cash Dividends Declared per Common Share
0.28

 
0.28

 
0.28

 
0.30



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