Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 16

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 16
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$309.7 $305.5 Income taxes, as reported$30.6 $32.2 $58.0 $50.3 Excess tax benefit from option exercises0.7 0.8 4.4 10.4 Income taxes, adjusted$31.3 $33.0 $62.4 $60.7 Effective income tax rate   As reported19.3 %19.5 %18.7 %16.5 %   Adjusted19.8 %20.0 %20.1 %19.9 %Net Earnings, as reported$127.6 $133.0 $251.7 $255.2 Excess tax benefit from option exercises(0.7)(0.8)(4.4)(10.4)Net Earnings, adjusted$126.9 $132.2 $247.3 $244.8 Weighted Average Diluted Shares168.6 172.5 170.1 172.5 Diluted Earnings per Share   As reported$0.76 $0.77 $1.48 $1.48    Adjusted$0.75 $0.77 $1.45 $1.42 

17

The following table presents an overview of components of net earnings as a percentage of net sales:

Three Months Ended   Six Months EndedJune 27,2025June 28,2024June 27,2025June 28,2024Net Sales100.0 %100.0 %100.0 %100.0 %Cost of products sold47.6 45.6 47.5 45.8 Gross Profit52.4 54.4 52.5 54.2 Product development3.6 4.0 3.6 4.1 Selling, marketing and distribution12.0 12.5 12.3 13.0 General and administrative9.3 8.8 9.2 8.9 Operating Earnings27.5 29.2 27.4 28.2 Interest expense0.1 0.1 0.1 0.1 Other income, net(0.2)(0.8)(0.9)(1.