Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 12

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 12
---
2024. During the three and six months ended June 28, 2024, we recognized $13 million and $42 million, respectively, that was included in deferred revenue at December 29, 2023.

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   June 27,2025December 27,2024AssetsCash surrender value of life insurance2$26,283 $24,411 Forward exchange contracts2— 116 Total assets at fair value$26,283 $24,527 LiabilitiesContingent consideration3$16,281 $14,647 Deferred compensation27,562 8,196 Forward exchange contracts2207 — Total liabilities at fair value$24,050 $22,843 

13

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 June 27, 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 finalization of post-close price adjustments as reported from March 28, 2025.The total purchase consideration consisted of the following (in thousands):Cash paid$276,188 Contingent consideration14,498 Total purchase consideration$290,686 Preliminary purchase consideration was allocated