Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 51

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 51
---
 located in the U.S., Belgium, Switzerland, United Kingdom, P.R.C., Japan, Italy, South Korea, India, Australia and Brazil.

Results of Operations

A summary of financial results follows (in millions except per share amounts):

20242023Net Sales$2,113.3 $2,195.6 Operating Earnings570.1 646.8 Net Earnings486.1 506.5 Diluted Net Earnings per Common Share$2.82 $2.94 Adjusted (non-GAAP)(1):Operating Earnings, adjusted$577.8 $646.0 Net Earnings, adjusted477.1 523.9 Diluted Net Earnings per Common Share, adjusted$2.77 $3.04 

(1)     Excludes impacts of business reorganization charges, excess tax benefits from stock option exercises, impairment charges, contingent consideration fair value adjustments, pension settlement losses and certain non-recurring tax 

23

Table of Contents

provision adjustments. See Financial Results Adjusted for Comparability below for a reconciliation of adjusted non-GAAP financial measures to GAAP.

24

Certain events in the last two years caused fluctuations in financial results. Excess tax benefits related to stock option exercises reduced income taxes by $15 million in 2024 and $10 million in 2023. Business reorganization charges reduced operating earnings in 2024 by $8 million. Other expense for 2023 included a $42 million non-cash pension settlement loss. In 2023, the Company recorded a goodwill impairment and contingent consideration adjustment related to an acquisition that was not material to the financial statements. Other benefits from tax planning activities further reduced income taxes in 2023. Excluding the impacts of those items presents a more consistent basis for comparison of financial results. A calculation of the non-GAAP adjusted measurements of operating earnings, earnings before income taxes, income taxes, effective income tax rates, net earnings and diluted earnings per share follows (in millions except per share amounts):20242023Operating earnings, as reported$570.1 $646.8 Contingent consideration— (8.6)Impairment— 7.8 Business reorganization7.7 — Operating earnings, adjusted$577.8 $646.0 Earnings before income taxes, as reported$589.3 $608.8 Pension settlement loss— 42.1 Cont