Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 11

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 11
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 $12,439 $11,802 $71,530 Changes in the carrying amount of goodwill for each reportable segment were as follows (in thousands): ContractorIndustrialExpansion MarketsTotalBalance, December 27, 2024$198,038 $217,698 $71,732 $487,468 Adjustments from business acquisitions1,164 — (266)898 Foreign currency translation16,568 11,988 — 28,556 Balance, June 27, 2025$215,770 $229,686 $71,466 $516,922 

12

10. Other Current Liabilities

Components of other current liabilities were as follows (in thousands):June 27,2025December 27,2024Accrued self-insurance retentions$8,263 $8,240 Accrued warranty and service liabilities19,937 18,712 Accrued trade promotions8,455 11,086 Payable for employee stock purchases7,814 16,767 Customer advances and deferred revenue59,980 52,522 Income taxes payable7,876 8,102 Tax payable, other9,408 14,557 Right of return refund liability14,731 15,557 Operating lease liabilities, current 8,271 7,838 Acquisition-related consideration payable— 10,339 Other32,406 48,008 Total$177,141 $211,728 A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors, including evaluating specific product warranty issues. Following is a summary of activity in accrued warranty and service liabilities (in thousands):Balance, December 27, 2024$18,712 Charged to expense6,176 Margin on parts sales reversed1,055 Reductions for claims settled(6,006)Balance, June 27, 2025$19,937 Customer Advances and Deferred RevenueRevenue 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 and six months ended June 27, 2025, we recognized $17 million and $46 million, respectively, that was included in deferred revenue at December 27,