Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 73

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 73
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 credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Following is a summary of activity in the allowance for credit losses (in thousands):202420232022Balance, beginning$4,655 $6,130 $3,254 Additions charged to costs and expenses930 1,125 3,567 Additions (deductions) from reserves (1)(383)(2,711)(633)Other (deductions) additions(2)(229)111 (58)Balance, ending$4,973 $4,655 $6,130 (1)    Additions represents amounts identified in acquisitions. Deductions represent amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves. (2)     Includes effects of foreign currency translation.Inventory Valuation. Inventories are stated at the lower of cost or net realizable value. The last-in, first-out (LIFO) cost method is used for valuing most U.S. inventories. Inventories of most foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method.Other Current Assets. Amounts included in other current assets were (in thousands):20242023Prepaid income taxes$25,097 $14,546 Prepaid expenses and other29,799 20,524 Total$54,896 $35,070 Impairment of Long-Lived Assets. The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment annually in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We completed our annual impairment test of all long-lived assets in the fourth quarter of 2024. No impairment charges were recorded as a result of that review. In 2023, the Company recognized a goodwill impairment related to the reorganization of a business acquired in 2020 that was not material to the consolidated financial statements. There were no impairment charges in 2022.  Property, Plant and Equipment. For financial reporting purposes, plant and equipment are depreciated over their estimated useful lives, primarily by using the straight-line method as follows:Buildings and improvements10 to 30 yearsLeasehold improvementslesser of 5 to 10 years or life of leaseManufacturing