Graco Inc.

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SEC Filings

10-Q
GRACO INC filed this Form 10-Q on 10/25/2017
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7.Inventories

Major components of inventories were as follows (in thousands):
 
September 29,
2017
 
December 30,
2016
Finished products and components
$
111,481

 
$
113,643

Products and components in various stages of completion
59,961

 
50,557

Raw materials and purchased components
98,720

 
84,631

Subtotal
270,162

 
248,831

Reduction to LIFO cost
(47,284
)
 
(47,222
)
Total
$
222,878

 
$
201,609


8.Intangible Assets

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 September 29, 2017
 
 
 
 
 
 
 
 
 
Cost
$
176,065

 
$
18,322

 
$
1,070

 
$
57,853

 
$
253,310

Accumulated amortization
(51,312
)
 
(7,448
)
 
(472
)
 

 
(59,232
)
Foreign currency translation
(9,029
)
 
(703
)
 
(57
)
 
(3,181
)
 
(12,970
)
Book value
$
115,724

 
$
10,171

 
$
541

 
$
54,672

 
$
181,108

Weighted average life in years
13

 
10

 
4

 
N/A

 
 
As of December 30, 2016
 
 
 
 
 
 
 
 
 
Cost
$
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 in years
13

 
10

 
4

 
N/A

 
 

Amortization of intangibles for the quarter was $3.8 million in 2017 and $4.6 million in 2016 and for the year to date was $11.0 million in 2017 and $14.3 million in 2016. Estimated 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
$
14,834

 
$
14,959

 
$
14,630

 
$
14,448

 
$
14,279

 
$
64,311


Changes in the carrying amount of goodwill for each reportable segment were (in thousands): 
 
Industrial    
 
Process    
 
Contractor    
 
Total    
Balance, December 30, 2016
$
150,556

 
$
96,561

 
$
12,732

 
$
259,849

Additions (adjustments) from business acquisitions
7,152

 
(63
)
 

 
7,089

Foreign currency translation
4,480

 
1,440

 

 
5,920

Balance, September 29, 2017
$
162,188

 
$
97,938

 
$
12,732

 
$
272,858



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