Graco Inc.

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SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/21/2017
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Major Customers - Our Contractor segment depends on a few large customers for a significant portion of its sales. Significant declines in the level of purchases by these customers could reduce our sales and impact segment profitability.

Our Contractor segment derives a significant amount of revenue from a few large customers. Substantial decreases in purchases by these customers, difficulty in collecting amounts due or the loss of their business would adversely affect the profitability of this segment. The business of these customers is dependent upon the economic vitality of the construction and home improvement markets. If these markets decline, the business of our customers could be adversely affected and their purchases of our equipment could decrease.

Variable Industries - Our success may be affected by variations in the construction, automotive, mining and oil and natural gas industries.

Our business may be affected by fluctuations in residential, commercial and institutional building and remodeling activity. Changes in construction materials and techniques may also impact our business. Our business may also be affected by fluctuations of activity in the automotive, mining and oil and natural gas industries.

Personnel - Our success may be affected if we are not able to attract, develop and retain qualified personnel.

Our success depends in large part on our ability to identify, recruit, develop and retain qualified personnel. If we are unable to successfully identify, recruit, develop and retain qualified personnel, it may be difficult for us to meet our strategic objectives and grow our business, which could adversely affect our results of operations and financial condition.

Catastrophic Events - Our operations are at risk of damage, destruction or disruption by natural disasters and other unexpected events.

The loss of, or substantial damage to, one of our facilities or the facilities of our suppliers could make it difficult to supply our customers with product and provide our employees with work. Flooding, tornadoes, typhoons, unusually heavy precipitation or other severe weather events, earthquakes, fire, explosions or acts of war or terrorism could adversely impact our operations.

Item  1B. Unresolved Staff Comments

None.

Item 2. Properties

Our facilities are in satisfactory condition, suitable for their respective uses, and are generally adequate to meet current needs. A description of our principal facilities as of February 21, 2017, is set forth in the chart below.
Facility
 Owned or
Leased
Square
Footage
Facility Activities
Operating Segment
North America
Indianapolis, Indiana, United States
Owned
64,000
Warehouse, office, product development and application laboratory
Industrial segment
Dexter, Michigan, United States
Leased
53,000
Manufacturing, warehouse, office and product development
Process segment
Minneapolis, Minnesota, United States
Owned
141,000
Worldwide headquarters, office and product development
Corporate, Industrial and Process segments
Minneapolis, Minnesota, United States
Owned
42,000
Corporate office
All segments
Minneapolis, Minnesota, United States
Owned
390,000
Manufacturing and office
Industrial and Process segments
Minneapolis, Minnesota, United States
Owned
87,000
Assembly
Industrial and Process segments
Anoka, Minnesota, United States
Owned
208,000
Manufacturing, warehouse, office and product development
Process segment
Rogers, Minnesota, United States
Owned
325,000
Manufacturing, office and product development
Contractor segment
Rogers, Minnesota, United States
Leased
100,000
Warehouse
Contractor segment
Rogers, Minnesota, United States
Leased
225,000
Distribution center and office
All segments

10

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