Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 82

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 82
---
,402 $79,732 $70,976 State and local6,256 7,282 5,948 Foreign28,481 23,779 38,152 Current income tax expense97,139 110,793 115,076 DeferredDomestic8,344 (6,919)(8,733)Foreign(2,284)(1,583)(1,264)Deferred income tax expense (benefit)6,060 (8,502)(9,997)Total$103,199 $102,291 $105,079 Income taxes paid were $104 million in 2024, $111 million in 2023 and $112 million in 2022.A reconciliation between the U.S. federal statutory tax rate and the effective tax rate follows:202420232022Statutory tax rate21 %21 %21 %Tax effect of international operations1 (1)1 State taxes, net of federal effect1 1 1 U.S. general business tax credits(1)(1)(1)Stock compensation excess tax benefit(2)(1)(1)Foreign Derived Intangible Income (FDII)(2)(2)(2)Effective tax rate18 %17 %19 %Deferred income taxes are provided for temporary differences between the financial reporting and the tax basis of assets and liabilities. The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands):20242023Inventory valuations$3,456 $1,005 Accrued self-insurance retentions1,187 1,390 Accrued warranty and service liabilities2,392 2,290 Vacation accruals3,409 3,450 Customer allowances 4,080 4,137 Excess of tax over book depreciation and amortization(79,728)(44,197)Pension benefit obligation915 10,063 Postretirement medical benefit obligation5,002 5,039 Acquisition costs442 — Stock compensation12,634 12,686 Deferred compensation5,305 2,205 Deferred revenue927 2,024 Research and development31,543 23,324 Prepayments from foreign subsidiaries13,872 27,301 Other3,652 2,449 Net deferred tax assets$9,088 $53,166 Total deferred tax assets were $47 million and $61 million