Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 52

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 52
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ingent consideration— (8.6)Impairment— 7.8 Business reorganization7.7 — Earnings before income taxes, adjusted$597.0 $650.1 Income taxes, as reported$103.2 $102.3 Pension settlement tax effect— 8.8 Other non-recurring tax benefit— 4.8 Excess tax benefit from option exercises14.9 10.3 Business reorganization tax effect1.8 — Income taxes, adjusted$119.9 $126.2 Effective income tax rate   As reported17.5 %16.8 %   Adjusted20.1 %19.4 %Net Earnings, as reported$486.1 $506.5 Pension settlement loss, net— 33.3 Contingent consideration— (8.6)Impairment— 7.8 Other non-recurring tax benefit— (4.8)Excess tax benefit from option exercises(14.9)(10.3)Business reorganization5.9 — Net Earnings, adjusted$477.1 $523.9 Weighted Average Diluted Shares172.4 172.2 Diluted Net Earnings per Share   As reported$2.82 $2.94    Adjusted$2.77 $3.04 

25

Components of Net Earnings as a Percentage of Sales:

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

20242023Net Sales100.0 %100.0 %Cost of products sold46.9 47.1 Gross profit53.1 52.9 Product development4.0 3.7 Selling, marketing and distribution13.0 11.9 General and administrative9.1 7.8 Contingent consideration— (0.4)Impairment— 0.4 Operating earnings27.0 29.5 Interest expense0.1 0.2 Other (income) expense, net(1.0)1.6 Earnings before income taxes27.9 27.7 Income taxes4.9 4.6 Net Earnings23.0 %23.1 %Net Earnings, adjusted (see non-GAAP measurements above