Graco Inc.

    Print Page | Close Window

SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/21/2017
Entire Document
 << Previous Page | Next Page >>

Goodwill and Other Intangible Assets. Goodwill has been assigned to reporting units. Changes in the carrying amounts of goodwill for each reportable segment were (in thousands):
 
Industrial
 
Process
 
Contractor
 
Total
Balance, December 26, 2014
$
150,853

 
$
128,989

 
$
12,732

 
$
292,574

Additions from business acquisitions
4,230

 
102,864

 

 
107,094

Foreign currency translation
(1,800
)
 
(3,380
)
 

 
(5,180
)
Balance, December 25, 2015
153,283

 
228,473

 
12,732

 
394,488

Additions from business acquisitions

 
28,130

 

 
28,130

Impairment

 
(146,669
)
 

 
(146,669
)
Foreign currency translation
(2,727
)
 
(13,373
)
 

 
(16,100
)
Balance, December 30, 2016
$
150,556

 
$
96,561

 
$
12,732

 
$
259,849


Components of other intangible assets were (dollars in thousands):
 
Finite Life
 
Indefinite Life
 
 
 
Customer
Relationships
 
Patents and
Proprietary
Technology
 
Trademarks,
Trade Names
and Other
 

Trade Names
 
Total
As of December 30, 2016
 
 
 
 
 
 
 
 
 
Cost, net of impairment
$
170,284

 
$
17,321

 
$
895

 
$
57,853

 
$
246,353

Accumulated amortization
(41,599
)
 
(6,088
)
 
(337
)
 

 
(48,024
)
Foreign currency translation
(13,630
)
 
(1,055
)
 
(59
)
 
(5,249
)
 
(19,993
)
Book value
$
115,055

 
$
10,178

 
$
499

 
$
52,604

 
$
178,336

Weighted average life (years)
13

 
10

 
4

 
N/A

 
 
As of December 25, 2015
 
 
 
 
 
 
 
 
 
Cost
$
197,900

 
$
20,400

 
$
495

 
$
69,514

 
$
288,309

Accumulated amortization
(36,852
)
 
(8,952
)
 
(132
)
 

 
(45,936
)
Foreign currency translation
(9,738
)
 
(658
)
 
(94
)
 
(3,896
)
 
(14,386
)
Book value
$
151,310

 
$
10,790

 
$
269

 
$
65,618

 
$
227,987

Weighted average life (years)
13

 
10

 
5

 
N/A

 
 

Amortization of intangibles was $17.8 million in 2016, $17.2 million in 2015 and $11.6 million in 2014. Estimated future annual amortization expense based on the current carrying amount of other intangible assets is as follows (in thousands):
 
2017
 
2018
 
2019
 
2020
 
2021
 
Thereafter
Estimated Amortization Expense
$
13,727

 
$
13,426

 
$
13,097

 
$
13,043

 
$
13,000

 
$
59,439


Other Assets. Components of other assets were (in thousands):
 
2016
 
2015
Cash surrender value of life insurance
$
13,785

 
$
12,856

Capitalized software
1,812

 
2,599

Equity method investment
6,366

 
6,129

Deposits and other
3,350

 
2,863

Total
$
25,313

 
$
24,447


The Company has entered into contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans. These insurance contracts are 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 2016, 2015 and 2014.

37

 << Previous Page | Next Page >>