Company: GGG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000042888-25-000014
Chunk: 29

Company: GRACO INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 8
Chunk 29
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892 Customer Advances and Deferred Revenue

Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. During the three months ended March 28, 2025, we recognized $30 million that was included in deferred revenue at December 27, 2024. During the three months ended March 29, 2024, we recognized $29 million that was included in deferred revenue at December 29, 2023.  

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11.Fair Value

Assets and liabilities measured at fair value on a recurring basis and fair value measurement level were as follows (in thousands):Level   March 28,2025December 27,2024AssetsCash surrender value of life insurance2$24,313 $24,411 Forward exchange contracts223 116 Total assets at fair value$24,336 $24,527 LiabilitiesContingent consideration3$15,048 $14,647 Deferred compensation27,489 8,196 Total liabilities at fair value$22,537 $22,843 Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds.Contingent consideration liabilities represent the estimated value (using a probability-weighted expected return approach) of future payments to be made to previous owners of certain acquired businesses based on future revenues. The fair value of variable rate borrowings approximates carrying value. The Company uses significant other observable inputs to estimate fair value (level 2 of the fair value hierarchy) based on the present value of future cash flows and rates that would be available for issuance of debt with similar terms and remaining maturities.

12.     Acquisitions

On November 4, 2024, the Company acquired Corob S.p.A. ("Corob") for €230 million in cash, subject to normal post-closing purchase price adjustments, with up to €30 million in additional contingent consideration. As of March 28, 2025, the purchase price allocation remains preliminary as the Company completes its assessment, principally related to income taxes. Amounts within the tables below are revised related to the final