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 >>

In 2014, the Company paid $65 million cash to acquire a manufacturer of fluid management solutions for environmental monitoring and remediation, markets where Graco had little or no previous exposure. The acquired business expands and complements the Company’s Process segment. The purchase price was allocated based on estimated fair values, including $37 million of goodwill, $22 million of other identifiable intangible assets and $6 million of net tangible assets.

The Company completed other business acquisitions in 2016, 2015 and 2014 that were not material to the consolidated financial statements.

M. Divestiture

In 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. 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 2015, the Company sold the Liquid Finishing business assets for a price of $610 million cash. Held separate investment income included 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 included dividends of $42 million. Net earnings included after-tax gain and dividends totaling $141 million.

N. Quarterly Financial Information (Unaudited)

Unaudited quarterly financial data is summarized below (in thousands, except per share amounts):
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
2016
 
 
 
 
 
 
 
 
Net Sales
$
304,912

 
$
348,126

 
$
327,192

 
$
349,063

 
Gross Profit
161,796

 
185,141

 
176,598

 
184,704

 
Net Earnings (Loss)
39,552

 
50,947

 
54,388

 
(104,213
)
(1) 
Basic Net Earnings (Loss) per Common Share
$
0.71

 
$
0.92

 
$
0.98

 
$
(1.87
)
(1) 
Diluted Net Earnings (Loss) per Common Share
0.70

 
0.89

 
0.95

 
(1.83
)
(1) 
Cash Dividends Declared per Common Share
0.33

 
0.33

 
0.33

 
0.36

 
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

(2) 
50,691

 
53,544

 
Basic Net Earnings per Common Share
$
1.17

 
$
2.96

(2) 
$
0.88

 
$
0.96

 
Diluted Net Earnings per Common Share
1.14

 
2.90

(2) 
0.86

 
0.94

 
Cash Dividends Declared per Common Share
0.30

 
0.30

 
0.30

 
0.33

 
(1)
Net earnings (loss) in the fourth quarter of 2016 included $161 million of after tax loss from non-cash impairment charges in the Company’s ONG reporting unit within the Process Segment.
(2)
Net earnings in the second quarter of 2015 included $141 million of after-tax dividends and gain on the sale of the Liquid Finishing business assets held separately from the Company’s other businesses.


54

 << Previous Page | Next Page >>