GRACO INC.
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(Exact name of registrant as specified in its charter)
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Minnesota
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41-0285640
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(State of incorporation)
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(I.R.S. Employer Identification Number)
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88 - 11th Avenue N.E.
Minneapolis, Minnesota
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55413
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(Address of principal executive offices)
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(Zip Code)
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(612) 623-6000
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(Registrant’s telephone number, including area code)
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Yes
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X
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No
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Yes
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X
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No
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Large Accelerated Filer
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X
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Accelerated Filer
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Non-accelerated Filer
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Smaller reporting company
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Yes
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No
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X
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Page
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PART I - FINANCIAL INFORMATION
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II - OTHER INFORMATION
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Item 1A.
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Item 2.
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Item 6.
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EXHIBITS
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Three Months Ended
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Six Months Ended
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||||||||||||
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June 30,
2017 |
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June 24,
2016 |
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June 30,
2017 |
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June 24,
2016 |
||||||||
Net Sales
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$
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379,483
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$
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348,126
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$
|
720,073
|
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$
|
653,038
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Cost of products sold
|
175,542
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|
162,985
|
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330,859
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|
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306,101
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|
||||
Gross Profit
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203,941
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|
185,141
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389,214
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|
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346,937
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|
||||
Product development
|
14,901
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15,607
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29,400
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30,293
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||||
Selling, marketing and distribution
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56,060
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56,136
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110,971
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|
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108,837
|
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||||
General and administrative
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34,211
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35,056
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64,253
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68,516
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|
||||
Operating Earnings
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98,769
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78,342
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184,590
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|
139,291
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|
||||
Interest expense
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4,154
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|
|
4,543
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8,209
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|
9,036
|
|
||||
Other expense (income), net
|
(989
|
)
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|
392
|
|
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(798
|
)
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(754
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)
|
||||
Earnings Before Income Taxes
|
95,604
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73,407
|
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|
177,179
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|
|
131,009
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|
||||
Income taxes
|
15,776
|
|
|
22,460
|
|
|
36,619
|
|
|
40,510
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|
||||
Net Earnings
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$
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79,828
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|
$
|
50,947
|
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$
|
140,560
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$
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90,499
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Per Common Share
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Basic net earnings
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$
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1.43
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$
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0.92
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$
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2.52
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$
|
1.63
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Diluted net earnings
|
$
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1.38
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$
|
0.89
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$
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2.43
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|
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$
|
1.59
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Cash dividends declared
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$
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0.36
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$
|
0.33
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$
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0.72
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$
|
0.66
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Three Months Ended
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Six Months Ended
|
||||||||||||
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June 30,
2017 |
|
June 24,
2016 |
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June 30,
2017 |
|
June 24,
2016 |
||||||||
Net Earnings
|
$
|
79,828
|
|
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$
|
50,947
|
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$
|
140,560
|
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$
|
90,499
|
|
Components of other comprehensive
income (loss) |
|
|
|
|
|
|
|
||||||||
Cumulative translation adjustment
|
11,029
|
|
|
(7,635
|
)
|
|
17,347
|
|
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(10,037
|
)
|
||||
Pension and postretirement medical
liability adjustment |
1,784
|
|
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1,777
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3,784
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|
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3,250
|
|
||||
Income taxes - pension and postretirement
medical liability adjustment |
(717
|
)
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(635
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)
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(1,483
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)
|
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(1,204
|
)
|
||||
Other comprehensive income (loss)
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12,096
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(6,493
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)
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19,648
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(7,991
|
)
|
||||
Comprehensive Income
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$
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91,924
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$
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44,454
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$
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160,208
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$
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82,508
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June 30,
2017 |
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December 30,
2016 |
||||
ASSETS
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Current Assets
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Cash and cash equivalents
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$
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75,446
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$
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52,365
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Accounts receivable, less allowances of $13,800 and $12,700
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259,900
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218,365
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Inventories
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221,441
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201,609
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Other current assets
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22,918
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31,023
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Total current assets
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579,705
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503,362
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Property, Plant and Equipment
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||||
Cost
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506,687
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489,642
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Accumulated depreciation
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(313,077
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)
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(300,046
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)
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Property, Plant and Equipment, net
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193,610
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189,596
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Goodwill
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273,098
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259,849
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Other Intangible Assets, net
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183,883
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178,336
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Deferred Income Taxes
|
85,537
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86,653
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Other Assets
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25,944
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25,313
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Total Assets
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$
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1,341,777
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$
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1,243,109
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||
Current Liabilities
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|
||||
Notes payable to banks
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$
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11,066
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$
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8,913
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Current portion of long term debt
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75,000
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|
—
|
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Trade accounts payable
|
44,447
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39,988
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||
Salaries and incentives
|
38,813
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37,109
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Dividends payable
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20,140
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20,088
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Other current liabilities
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74,623
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71,887
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Total current liabilities
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264,089
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|
177,985
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Long-term Debt
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236,015
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305,685
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Retirement Benefits and Deferred Compensation
|
163,552
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|
159,250
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Deferred Income Taxes
|
17,962
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|
|
17,672
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Other Non-current Liabilities
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8,597
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8,697
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|
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Shareholders’ Equity
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|
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|
||||
Common stock
|
55,991
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|
55,834
|
|
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Additional paid-in-capital
|
493,329
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|
|
453,394
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|
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Retained earnings
|
224,822
|
|
|
206,820
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|
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Accumulated other comprehensive income (loss)
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(122,580
|
)
|
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(142,228
|
)
|
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Total shareholders’ equity
|
651,562
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|
|
573,820
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|
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Total Liabilities and Shareholders’ Equity
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$
|
1,341,777
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$
|
1,243,109
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|
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Six Months Ended
|
||||||
|
June 30,
2017 |
|
June 24,
2016 |
||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net Earnings
|
$
|
140,560
|
|
|
$
|
90,499
|
|
Adjustments to reconcile net earnings to net cash
provided by operating activities |
|
|
|
||||
Depreciation and amortization
|
22,362
|
|
|
24,500
|
|
||
Deferred income taxes
|
(2,653
|
)
|
|
(7,397
|
)
|
||
Share-based compensation
|
13,451
|
|
|
12,736
|
|
||
Change in
|
|
|
|
||||
Accounts receivable
|
(35,455
|
)
|
|
(14,826
|
)
|
||
Inventories
|
(17,103
|
)
|
|
(1,744
|
)
|
||
Trade accounts payable
|
3,175
|
|
|
(34
|
)
|
||
Salaries and incentives
|
(1,808
|
)
|
|
(12,336
|
)
|
||
Retirement benefits and deferred compensation
|
6,566
|
|
|
4,217
|
|
||
Other accrued liabilities
|
10,453
|
|
|
(38
|
)
|
||
Other
|
(3,857
|
)
|
|
(2,070
|
)
|
||
Net cash provided by operating activities
|
135,691
|
|
|
93,507
|
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Property, plant and equipment additions
|
(16,621
|
)
|
|
(25,961
|
)
|
||
Acquisition of businesses, net of cash acquired
|
(9,905
|
)
|
|
(49,110
|
)
|
||
Change in restricted assets
|
900
|
|
|
934
|
|
||
Other
|
102
|
|
|
(146
|
)
|
||
Net cash provided by (used in) investing activities
|
(25,524
|
)
|
|
(74,283
|
)
|
||
Cash Flows From Financing Activities
|
|
|
|
||||
Borrowings (payments) on short-term lines of credit, net
|
1,568
|
|
|
(2,616
|
)
|
||
Borrowings on long-term line of credit
|
293,880
|
|
|
416,079
|
|
||
Payments on long-term line of credit
|
(288,550
|
)
|
|
(379,279
|
)
|
||
Common stock issued
|
46,693
|
|
|
27,643
|
|
||
Common stock repurchased
|
(90,160
|
)
|
|
(48,050
|
)
|
||
Taxes paid related to net share settlement of equity awards
|
(10,735
|
)
|
|
(3,165
|
)
|
||
Cash dividends paid
|
(40,115
|
)
|
|
(36,685
|
)
|
||
Net cash provided by (used in) financing activities
|
(87,419
|
)
|
|
(26,073
|
)
|
||
Effect of exchange rate changes on cash
|
333
|
|
|
(1,582
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
23,081
|
|
|
(8,431
|
)
|
||
Cash and Cash Equivalents
|
|
|
|
||||
Beginning of year
|
52,365
|
|
|
52,295
|
|
||
End of period
|
$
|
75,446
|
|
|
$
|
43,864
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Net earnings available to common shareholders
|
$
|
79,828
|
|
|
$
|
50,947
|
|
|
$
|
140,560
|
|
|
$
|
90,499
|
|
Weighted average shares outstanding for basic earnings per share
|
55,801
|
|
|
55,634
|
|
|
55,785
|
|
|
55,514
|
|
||||
Dilutive effect of stock options computed using the treasury stock method and the average market price
|
2,126
|
|
|
1,406
|
|
|
2,035
|
|
|
1,361
|
|
||||
Weighted average shares outstanding for diluted earnings per share
|
57,927
|
|
|
57,040
|
|
|
57,820
|
|
|
56,875
|
|
||||
Basic earnings per share
|
$
|
1.43
|
|
|
$
|
0.92
|
|
|
$
|
2.52
|
|
|
$
|
1.63
|
|
Diluted earnings per share
|
$
|
1.38
|
|
|
$
|
0.89
|
|
|
$
|
2.43
|
|
|
$
|
1.59
|
|
|
Option
Shares
|
|
Weighted Average
Exercise Price
|
|
Options
Exercisable
|
|
Weighted Average
Exercise Price
|
||||||
Outstanding, December 30, 2016
|
5,535
|
|
|
$
|
55.26
|
|
|
3,672
|
|
|
$
|
45.40
|
|
Granted
|
575
|
|
|
92.13
|
|
|
|
|
|
||||
Exercised
|
(985
|
)
|
|
40.68
|
|
|
|
|
|
||||
Canceled
|
(29
|
)
|
|
80.24
|
|
|
|
|
|
||||
Outstanding, June 30, 2017
|
5,096
|
|
|
$
|
62.10
|
|
|
3,217
|
|
|
$
|
50.91
|
|
|
Six Months Ended
|
||||||
|
June 30,
2017 |
|
June 24,
2016 |
||||
Expected life in years
|
7.0
|
|
|
7.0
|
|
||
Interest rate
|
2.2
|
%
|
|
1.4
|
%
|
||
Volatility
|
26.7
|
%
|
|
30.1
|
%
|
||
Dividend yield
|
1.6
|
%
|
|
1.8
|
%
|
||
Weighted average fair value per share
|
$
|
24.23
|
|
|
$
|
19.00
|
|
|
Six Months Ended
|
||||||
|
June 30,
2017 |
|
June 24,
2016 |
||||
Expected life in years
|
1.0
|
|
|
1.0
|
|
||
Interest rate
|
0.9
|
%
|
|
0.7
|
%
|
||
Volatility
|
22.3
|
%
|
|
24.6
|
%
|
||
Dividend yield
|
1.5
|
%
|
|
1.7
|
%
|
||
Weighted average fair value per share
|
$
|
21.97
|
|
|
$
|
19.14
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Pension Benefits
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
1,754
|
|
|
$
|
1,915
|
|
|
$
|
3,815
|
|
|
$
|
3,912
|
|
Interest cost
|
3,673
|
|
|
3,846
|
|
|
7,603
|
|
|
7,863
|
|
||||
Expected return on assets
|
(4,112
|
)
|
|
(4,368
|
)
|
|
(8,464
|
)
|
|
(9,005
|
)
|
||||
Amortization and other
|
2,199
|
|
|
2,619
|
|
|
4,524
|
|
|
4,919
|
|
||||
Net periodic benefit cost
|
$
|
3,514
|
|
|
$
|
4,012
|
|
|
$
|
7,478
|
|
|
$
|
7,689
|
|
Postretirement Medical
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
126
|
|
|
$
|
121
|
|
|
$
|
301
|
|
|
$
|
271
|
|
Interest cost
|
271
|
|
|
280
|
|
|
546
|
|
|
542
|
|
||||
Amortization
|
(55
|
)
|
|
(102
|
)
|
|
(5
|
)
|
|
(240
|
)
|
||||
Net periodic benefit cost
|
$
|
342
|
|
|
$
|
299
|
|
|
$
|
842
|
|
|
$
|
573
|
|
|
Pension and
Postretirement
Medical
|
|
Cumulative
Translation
Adjustment
|
|
Total
|
||||||
Balance, March 25, 2016
|
$
|
(69,018
|
)
|
|
$
|
(36,977
|
)
|
|
$
|
(105,995
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
(7,635
|
)
|
|
(7,635
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income
|
1,142
|
|
|
—
|
|
|
1,142
|
|
|||
Balance, June 24, 2016
|
$
|
(67,876
|
)
|
|
$
|
(44,612
|
)
|
|
$
|
(112,488
|
)
|
Balance, March 31, 2017
|
$
|
(75,192
|
)
|
|
$
|
(59,484
|
)
|
|
$
|
(134,676
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
11,029
|
|
|
11,029
|
|
|||
Amounts reclassified from accumulated other comprehensive income
|
1,067
|
|
|
—
|
|
|
1,067
|
|
|||
Balance, June 30, 2017
|
$
|
(74,125
|
)
|
|
$
|
(48,455
|
)
|
|
$
|
(122,580
|
)
|
Balance, December 25, 2015
|
$
|
(69,922
|
)
|
|
$
|
(34,575
|
)
|
|
$
|
(104,497
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
(10,037
|
)
|
|
(10,037
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income
|
2,046
|
|
|
—
|
|
|
2,046
|
|
|||
Balance, June 24, 2016
|
$
|
(67,876
|
)
|
|
$
|
(44,612
|
)
|
|
$
|
(112,488
|
)
|
Balance, December 30, 2016
|
$
|
(76,426
|
)
|
|
$
|
(65,802
|
)
|
|
$
|
(142,228
|
)
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
17,347
|
|
|
17,347
|
|
|||
Amounts reclassified from accumulated other comprehensive income
|
2,301
|
|
|
—
|
|
|
2,301
|
|
|||
Balance, June 30, 2017
|
$
|
(74,125
|
)
|
|
$
|
(48,455
|
)
|
|
$
|
(122,580
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Cost of products sold
|
$
|
620
|
|
|
$
|
637
|
|
|
$
|
1,328
|
|
|
$
|
1,165
|
|
Product development
|
258
|
|
|
261
|
|
|
556
|
|
|
465
|
|
||||
Selling, marketing and distribution
|
516
|
|
|
569
|
|
|
1,162
|
|
|
1,055
|
|
||||
General and administrative
|
390
|
|
|
310
|
|
|
738
|
|
|
565
|
|
||||
Total before tax
|
$
|
1,784
|
|
|
$
|
1,777
|
|
|
$
|
3,784
|
|
|
$
|
3,250
|
|
Income tax (benefit)
|
(717
|
)
|
|
(635
|
)
|
|
(1,483
|
)
|
|
(1,204
|
)
|
||||
Total after tax
|
$
|
1,067
|
|
|
$
|
1,142
|
|
|
$
|
2,301
|
|
|
$
|
2,046
|
|
6.
|
Segment Information
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Net Sales
|
|
|
|
|
|
|
|
||||||||
Industrial
|
$
|
174,868
|
|
|
$
|
156,997
|
|
|
$
|
331,258
|
|
|
$
|
304,085
|
|
Process
|
73,399
|
|
|
64,706
|
|
|
143,428
|
|
|
128,991
|
|
||||
Contractor
|
131,216
|
|
|
126,423
|
|
|
245,387
|
|
|
219,962
|
|
||||
Total
|
$
|
379,483
|
|
|
$
|
348,126
|
|
|
$
|
720,073
|
|
|
$
|
653,038
|
|
Operating Earnings
|
|
|
|
|
|
|
|
||||||||
Industrial
|
$
|
61,596
|
|
|
$
|
51,052
|
|
|
$
|
115,331
|
|
|
$
|
96,846
|
|
Process
|
13,418
|
|
|
7,634
|
|
|
26,881
|
|
|
14,911
|
|
||||
Contractor
|
33,759
|
|
|
29,364
|
|
|
59,778
|
|
|
46,107
|
|
||||
Unallocated corporate (expense)
|
(10,004
|
)
|
|
(9,708
|
)
|
|
(17,400
|
)
|
|
(18,573
|
)
|
||||
Total
|
$
|
98,769
|
|
|
$
|
78,342
|
|
|
$
|
184,590
|
|
|
$
|
139,291
|
|
|
June 30,
2017 |
|
December 30,
2016 |
||||
Industrial
|
$
|
575,789
|
|
|
$
|
546,366
|
|
Process
|
329,340
|
|
|
318,444
|
|
||
Contractor
|
260,920
|
|
|
208,016
|
|
||
Unallocated corporate
|
175,728
|
|
|
170,283
|
|
||
Total
|
$
|
1,341,777
|
|
|
$
|
1,243,109
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Net Sales (based on customer location)
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
194,619
|
|
|
$
|
186,284
|
|
|
$
|
369,473
|
|
|
$
|
339,285
|
|
Other countries
|
184,864
|
|
|
161,842
|
|
|
350,600
|
|
|
313,753
|
|
||||
Total
|
$
|
379,483
|
|
|
$
|
348,126
|
|
|
$
|
720,073
|
|
|
$
|
653,038
|
|
|
June 30,
2017 |
|
December 30,
2016 |
||||
Long-lived Assets
|
|
|
|
||||
United States
|
$
|
155,271
|
|
|
$
|
151,911
|
|
Other countries
|
38,339
|
|
|
37,685
|
|
||
Total
|
$
|
193,610
|
|
|
$
|
189,596
|
|
|
June 30,
2017 |
|
December 30,
2016 |
||||
Finished products and components
|
$
|
109,798
|
|
|
$
|
113,643
|
|
Products and components in various stages of completion
|
59,049
|
|
|
50,557
|
|
||
Raw materials and purchased components
|
100,357
|
|
|
84,631
|
|
||
Subtotal
|
269,204
|
|
|
248,831
|
|
||
Reduction to LIFO cost
|
(47,763
|
)
|
|
(47,222
|
)
|
||
Total
|
$
|
221,441
|
|
|
$
|
201,609
|
|
|
Finite Life
|
|
Indefinite Life
|
|
|
||||||||||||||
|
Customer
Relationships |
|
Patents and
Proprietary Technology |
|
Trademarks,
Trade Names and Other |
|
Trade
Names |
|
Total
|
||||||||||
As of June 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost
|
$
|
174,884
|
|
|
$
|
17,921
|
|
|
$
|
895
|
|
|
$
|
57,853
|
|
|
$
|
251,553
|
|
Accumulated amortization
|
(47,840
|
)
|
|
(6,994
|
)
|
|
(440
|
)
|
|
—
|
|
|
(55,274
|
)
|
|||||
Foreign currency translation
|
(8,926
|
)
|
|
(660
|
)
|
|
(61
|
)
|
|
(2,749
|
)
|
|
(12,396
|
)
|
|||||
Book value
|
$
|
118,118
|
|
|
$
|
10,267
|
|
|
$
|
394
|
|
|
$
|
55,104
|
|
|
$
|
183,883
|
|
Weighted average life
|
13
|
|
|
10
|
|
|
4
|
|
|
N/A
|
|
|
|
As of December 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost
|
$
|
170,284
|
|
|
$
|
17,321
|
|
|
$
|
895
|
|
|
$
|
57,853
|
|
|
$
|
246,353
|
|
Accumulated amortization
|
(41,599
|
)
|
|
(6,088
|
)
|
|
(337
|
)
|
|
—
|
|
|
(48,024
|
)
|
|||||
Foreign currency translation
|
(13,630
|
)
|
|
(1,055
|
)
|
|
(59
|
)
|
|
(5,249
|
)
|
|
(19,993
|
)
|
|||||
Book value
|
$
|
115,055
|
|
|
$
|
10,178
|
|
|
$
|
499
|
|
|
$
|
52,604
|
|
|
$
|
178,336
|
|
Weighted average life
|
13
|
|
|
10
|
|
|
4
|
|
|
N/A
|
|
|
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
||||||||||||
Estimated Amortization Expense
|
$
|
14,649
|
|
|
$
|
14,511
|
|
|
$
|
14,182
|
|
|
$
|
14,127
|
|
|
$
|
14,083
|
|
|
$
|
64,477
|
|
|
Industrial
|
|
Process
|
|
Contractor
|
|
Total
|
||||||||
Balance, December 30, 2016
|
$
|
150,556
|
|
|
$
|
96,561
|
|
|
$
|
12,732
|
|
|
$
|
259,849
|
|
Additions (adjustments) from business acquisitions
|
7,152
|
|
|
(63
|
)
|
|
—
|
|
|
7,089
|
|
||||
Foreign currency translation
|
5,263
|
|
|
897
|
|
|
—
|
|
|
6,160
|
|
||||
Balance, June 30, 2017
|
$
|
162,971
|
|
|
$
|
97,395
|
|
|
$
|
12,732
|
|
|
$
|
273,098
|
|
9.
|
Other Current Liabilities
|
|
June 30,
2017 |
|
December 30,
2016 |
||||
Accrued self-insurance retentions
|
$
|
7,182
|
|
|
$
|
7,105
|
|
Accrued warranty and service liabilities
|
9,650
|
|
|
8,934
|
|
||
Accrued trade promotions
|
6,821
|
|
|
6,007
|
|
||
Payable for employee stock purchases
|
4,394
|
|
|
9,328
|
|
||
Customer advances and deferred revenue
|
17,788
|
|
|
9,400
|
|
||
Income taxes payable
|
3,562
|
|
|
8,608
|
|
||
Other
|
25,226
|
|
|
22,505
|
|
||
Total
|
$
|
74,623
|
|
|
$
|
71,887
|
|
Balance, December 30, 2016
|
$
|
8,934
|
|
Charged to expense
|
3,733
|
|
|
Margin on parts sales reversed
|
1,298
|
|
|
Reductions for claims settled
|
(4,315
|
)
|
|
Balance, June 30, 2017
|
$
|
9,650
|
|
|
Level
|
|
June 30,
2017 |
|
December 30,
2016 |
||||
Assets
|
|
|
|
|
|
||||
Cash surrender value of life insurance
|
2
|
|
$
|
14,883
|
|
|
$
|
13,785
|
|
Forward exchange contracts
|
2
|
|
—
|
|
|
571
|
|
||
Total assets at fair value
|
|
|
$
|
14,883
|
|
|
$
|
14,356
|
|
Liabilities
|
|
|
|
|
|
||||
Contingent consideration
|
3
|
|
$
|
4,081
|
|
|
$
|
4,081
|
|
Deferred compensation
|
2
|
|
3,527
|
|
|
3,265
|
|
||
Forward exchange contracts
|
2
|
|
272
|
|
|
—
|
|
||
Total liabilities at fair value
|
|
|
$
|
7,880
|
|
|
$
|
7,346
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
%
Change
|
|
June 30,
2017 |
|
June 24,
2016 |
|
%
Change
|
||||||||||
Net Sales
|
$
|
379.5
|
|
|
$
|
348.1
|
|
|
9
|
%
|
|
$
|
720.1
|
|
|
$
|
653.0
|
|
|
10
|
%
|
Operating Earnings
|
98.8
|
|
|
78.3
|
|
|
26
|
%
|
|
184.6
|
|
|
139.3
|
|
|
33
|
%
|
||||
Net Earnings
|
79.8
|
|
|
50.9
|
|
|
57
|
%
|
|
140.6
|
|
|
90.5
|
|
|
55
|
%
|
||||
Diluted Net Earnings per Common Share
|
$
|
1.38
|
|
|
$
|
0.89
|
|
|
55
|
%
|
|
$
|
2.43
|
|
|
$
|
1.59
|
|
|
53
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||
Net Sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of products sold
|
46.3
|
|
|
46.8
|
|
|
45.9
|
|
|
46.9
|
|
Gross Profit
|
53.7
|
|
|
53.2
|
|
|
54.1
|
|
|
53.1
|
|
Product development
|
3.9
|
|
|
4.5
|
|
|
4.1
|
|
|
4.6
|
|
Selling, marketing and distribution
|
14.8
|
|
|
16.1
|
|
|
15.4
|
|
|
16.7
|
|
General and administrative
|
9.0
|
|
|
10.1
|
|
|
9.0
|
|
|
10.5
|
|
Operating Earnings
|
26.0
|
|
|
22.5
|
|
|
25.6
|
|
|
21.3
|
|
Interest expense
|
1.1
|
|
|
1.3
|
|
|
1.1
|
|
|
1.3
|
|
Other expense (income), net
|
(0.3
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Earnings Before Income Taxes
|
25.2
|
|
|
21.1
|
|
|
24.6
|
|
|
20.1
|
|
Income taxes
|
4.2
|
|
|
6.5
|
|
|
5.1
|
|
|
6.2
|
|
Net Earnings
|
21.0
|
%
|
|
14.6
|
%
|
|
19.5
|
%
|
|
13.9
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Americas
(1)
|
$
|
221.4
|
|
|
$
|
207.5
|
|
|
$
|
421.4
|
|
|
$
|
380.9
|
|
EMEA
(2)
|
87.0
|
|
|
80.1
|
|
|
166.1
|
|
|
155.8
|
|
||||
Asia Pacific
|
71.1
|
|
|
60.5
|
|
|
132.6
|
|
|
116.3
|
|
||||
Consolidated
|
$
|
379.5
|
|
|
$
|
348.1
|
|
|
$
|
720.1
|
|
|
$
|
653.0
|
|
(1)
|
North, South and Central America, including the United States
|
(2)
|
Europe, Middle East and Africa
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
Americas
|
7%
|
|
0%
|
|
0%
|
|
7%
|
|
11%
|
|
0%
|
|
0%
|
|
11%
|
EMEA
|
12%
|
|
0%
|
|
(3)%
|
|
9%
|
|
11%
|
|
0%
|
|
(4)%
|
|
7%
|
Asia Pacific
|
20%
|
|
0%
|
|
(2)%
|
|
18%
|
|
16%
|
|
0%
|
|
(2)%
|
|
14%
|
Consolidated
|
10%
|
|
0%
|
|
(1)%
|
|
9%
|
|
12%
|
|
0%
|
|
(2)%
|
|
10%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Net Sales
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
75.9
|
|
|
$
|
69.4
|
|
|
$
|
144.9
|
|
|
$
|
134.5
|
|
EMEA
|
49.9
|
|
|
45.6
|
|
|
94.0
|
|
|
89.8
|
|
||||
Asia Pacific
|
49.1
|
|
|
42.0
|
|
|
92.4
|
|
|
79.8
|
|
||||
Total
|
$
|
174.9
|
|
|
$
|
157.0
|
|
|
$
|
331.3
|
|
|
$
|
304.1
|
|
Operating earnings as a percentage of net sales
|
35
|
%
|
|
33
|
%
|
|
35
|
%
|
|
32
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
Americas
|
9%
|
|
0%
|
|
0%
|
|
9%
|
|
7%
|
|
1%
|
|
0%
|
|
8%
|
EMEA
|
12%
|
|
0%
|
|
(3)%
|
|
9%
|
|
8%
|
|
0%
|
|
(3)%
|
|
5%
|
Asia Pacific
|
19%
|
|
1%
|
|
(3)%
|
|
17%
|
|
18%
|
|
1%
|
|
(3)%
|
|
16%
|
Segment Total
|
13%
|
|
0%
|
|
(2)%
|
|
11%
|
|
10%
|
|
1%
|
|
(2)%
|
|
9%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Net Sales
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
46.6
|
|
|
$
|
41.3
|
|
|
$
|
91.2
|
|
|
$
|
81.3
|
|
EMEA
|
13.9
|
|
|
13.5
|
|
|
28.8
|
|
|
27.4
|
|
||||
Asia Pacific
|
12.9
|
|
|
9.9
|
|
|
23.4
|
|
|
20.3
|
|
||||
Total
|
$
|
73.4
|
|
|
$
|
64.7
|
|
|
$
|
143.4
|
|
|
$
|
129.0
|
|
Operating earnings as a percentage of net sales
|
18
|
%
|
|
12
|
%
|
|
19
|
%
|
|
12
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
Americas
|
13%
|
|
0%
|
|
0%
|
|
13%
|
|
12%
|
|
0%
|
|
0%
|
|
12%
|
EMEA
|
9%
|
|
0%
|
|
(6)%
|
|
3%
|
|
12%
|
|
0%
|
|
(7)%
|
|
5%
|
Asia Pacific
|
33%
|
|
0%
|
|
(3)%
|
|
30%
|
|
17%
|
|
0%
|
|
(2)%
|
|
15%
|
Segment Total
|
15%
|
|
0%
|
|
(2)%
|
|
13%
|
|
13%
|
|
0%
|
|
(2)%
|
|
11%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2017 |
|
June 24,
2016 |
|
June 30,
2017 |
|
June 24,
2016 |
||||||||
Net Sales
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
98.9
|
|
|
$
|
96.8
|
|
|
$
|
185.3
|
|
|
$
|
165.1
|
|
EMEA
|
23.2
|
|
|
21.1
|
|
|
43.3
|
|
|
38.7
|
|
||||
Asia Pacific
|
9.1
|
|
|
8.6
|
|
|
16.8
|
|
|
16.2
|
|
||||
Total
|
$
|
131.2
|
|
|
$
|
126.5
|
|
|
$
|
245.4
|
|
|
$
|
220.0
|
|
Operating earnings as a percentage of net sales
|
26
|
%
|
|
23
|
%
|
|
24
|
%
|
|
21
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
Americas
|
2%
|
|
0%
|
|
0%
|
|
2%
|
|
12%
|
|
0%
|
|
0%
|
|
12%
|
EMEA
|
14%
|
|
0%
|
|
(4)%
|
|
10%
|
|
16%
|
|
0%
|
|
(4)%
|
|
12%
|
Asia Pacific
|
7%
|
|
0%
|
|
(1)%
|
|
6%
|
|
4%
|
|
0%
|
|
0%
|
|
4%
|
Segment Total
|
5%
|
|
0%
|
|
(1)%
|
|
4%
|
|
12%
|
|
0%
|
|
0%
|
|
12%
|
3.1
|
|
|
Restated Articles of Incorporation as amended December 9, 2016.
(Incorporated by reference to Exhibit 3.1 to the Company’s Report on Form 8-K filed December 9, 2016.)
|
|
|
|
|
3.2
|
|
|
Restated Bylaws as amended February 14, 2014.
(Incorporated by reference to Exhibit 3.2 to the Company’s 2013 Annual Report on Form 10-K.)
|
|
|
|
|
10.1
|
|
|
Amendment No. 4 dated as of May 23, 2017 to Note Agreement dated as of March 11, 2011.
|
|
|
|
|
10.2
|
|
|
Amendment No. 4 dated as of May 23, 2017, amending the Credit Agreement among Graco Inc., the borrowing subsidiaries from time to time party thereto, the banks from time to time party thereto and U.S. Bank National Association, as administrative agent.
|
|
|
|
|
10.3
|
|
|
Graco Inc. Incentive Bonus Plan.
(Incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A filed March 15, 2017.)
|
|
|
|
|
31.1
|
|
|
Certification of President and Chief Executive Officer pursuant to Rule 13a-14(a).
|
|
|
|
|
31.2
|
|
|
Certification of Chief Financial Officer and Treasurer pursuant to Rule 13a-14(a).
|
|
|
|
|
32
|
|
|
Certification of President and Chief Executive Officer and Chief Financial Officer and Treasurer pursuant to Section 1350 of Title 18, U.S.C.
|
|
|
|
|
99.1
|
|
|
Press Release Reporting Second Quarter Earnings dated July 26, 2017.
|
|
|
|
|
101
|
|
|
Interactive Data File.
|
|
|
|
|
|
|
|
Date:
|
|
July 26, 2017
|
|
By:
|
|
/s/ Patrick J. McHale
|
|
|
|
|
|
|
Patrick J. McHale
|
|
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|||
Date:
|
|
July 26, 2017
|
|
By:
|
|
/s/ Christian E. Rothe
|
|
|
|
|
|
|
Christian E. Rothe
|
|
|
|
|
|
|
Chief Financial Officer and Treasurer
|
|
|
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|||
Date:
|
|
July 26, 2017
|
|
By:
|
|
/s/ Caroline M. Chambers
|
|
|
|
|
|
|
Caroline M. Chambers
|
|
|
|
|
|
|
Vice President, Corporate Controller
and Information Systems
|
|
|
|
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
Exhibit 31.1
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Graco Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
|
July 26, 2017
|
|
/s/ Patrick J. McHale
|
|
|
|
|
Patrick J. McHale
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
Exhibit 31.2
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Graco Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
|
July 26, 2017
|
|
/s/ Christian E. Rothe
|
|
|
|
|
Christian E. Rothe
|
|
|
|
|
Chief Financial Officer and Treasurer
|
|
|
|
|
Exhibit 32
|
|
|
|
|
|
Date:
|
|
July 26, 2017
|
|
/s/ Patrick J. McHale
|
|
|
|
|
Patrick J. McHale
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
|
July 26, 2017
|
|
/s/ Christian E. Rothe
|
|
|
|
|
Christian E. Rothe
|
|
|
|
|
Chief Financial Officer and Treasurer
|
Exhibit 99.1
|
|
|
GRACO INC.
|
|
|
|
|
P.O. Box 1441
|
|
|
Minneapolis, MN
|
|||
55440-1441
|
||||
NYSE: GGG
|
FOR IMMEDIATE RELEASE:
|
FOR FURTHER INFORMATION:
|
Wednesday, July 26, 2017
|
Financial Contact: Christian Rothe, 612-623-6205
Media Contact: Charlotte Boyd, 612-623-6153
Charlotte_M_Boyd@graco.com
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
|
Jun 30,
2017 |
|
Jun 24,
2016 |
|
%
Change
|
|
Jun 30,
2017 |
|
Jun 24,
2016 |
|
%
Change
|
||||||||||
Net Sales
|
$
|
379.5
|
|
|
$
|
348.1
|
|
|
9
|
%
|
|
$
|
720.1
|
|
|
$
|
653.0
|
|
|
10
|
%
|
Operating Earnings
|
98.8
|
|
|
78.3
|
|
|
26
|
%
|
|
184.6
|
|
|
139.3
|
|
|
33
|
%
|
||||
Net Earnings
|
79.8
|
|
|
50.9
|
|
|
57
|
%
|
|
140.6
|
|
|
90.5
|
|
|
55
|
%
|
||||
Diluted Net Earnings
per Common Share
|
$
|
1.38
|
|
|
$
|
0.89
|
|
|
55
|
%
|
|
$
|
2.43
|
|
|
$
|
1.59
|
|
|
53
|
%
|
•
|
Sales for the quarter and year to date increased in all segments and regions.
|
•
|
Gross profit margin rates for the quarter and year to date increased due to higher production volume and realized pricing.
|
•
|
Solid sales growth combined with improved gross margins and lower operating expenses levered operating earnings to increases of 26 percent and 33 percent for the quarter and year to date, respectively.
|
•
|
Diluted earnings per share include $0.23 for the quarter and $0.28 for the year to date from a required change in accounting for stock compensation.
|
•
|
Increases in diluted earnings per share include $0.01 for the quarter and $0.02 for the year to date from reduced amortization expense resulting from the impairment charge recorded in the fourth quarter of 2016.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
Industrial
|
|
Process
|
|
Contractor
|
|
Industrial
|
|
Process
|
|
Contractor
|
||||||||||||
Net sales (in millions)
|
$
|
174.9
|
|
|
$
|
73.4
|
|
|
$
|
131.2
|
|
|
$
|
331.3
|
|
|
$
|
143.4
|
|
|
$
|
245.4
|
|
Percentage change from last year
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales
|
11
|
%
|
|
13
|
%
|
|
4
|
%
|
|
9
|
%
|
|
11
|
%
|
|
12
|
%
|
||||||
Operating earnings
|
21
|
%
|
|
76
|
%
|
|
15
|
%
|
|
19
|
%
|
|
80
|
%
|
|
30
|
%
|
||||||
Operating earnings as a percentage of sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
35
|
%
|
|
18
|
%
|
|
26
|
%
|
|
35
|
%
|
|
19
|
%
|
|
24
|
%
|
||||||
2016
|
33
|
%
|
|
12
|
%
|
|
23
|
%
|
|
32
|
%
|
|
12
|
%
|
|
21
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
Americas
|
9%
|
|
0%
|
|
0%
|
|
9%
|
|
7%
|
|
1%
|
|
0%
|
|
8%
|
EMEA
|
12%
|
|
0%
|
|
(3)%
|
|
9%
|
|
8%
|
|
0%
|
|
(3)%
|
|
5%
|
Asia Pacific
|
19%
|
|
1%
|
|
(3)%
|
|
17%
|
|
18%
|
|
1%
|
|
(3)%
|
|
16%
|
Consolidated
|
13%
|
|
0%
|
|
(2)%
|
|
11%
|
|
10%
|
|
1%
|
|
(2)%
|
|
9%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
Americas
|
13%
|
|
0%
|
|
0%
|
|
13%
|
|
12%
|
|
0%
|
|
0%
|
|
12%
|
EMEA
|
9%
|
|
0%
|
|
(6)%
|
|
3%
|
|
12%
|
|
0%
|
|
(7)%
|
|
5%
|
Asia Pacific
|
33%
|
|
0%
|
|
(3)%
|
|
30%
|
|
17%
|
|
0%
|
|
(2)%
|
|
15%
|
Consolidated
|
15%
|
|
0%
|
|
(2)%
|
|
13%
|
|
13%
|
|
0%
|
|
(2)%
|
|
11%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
|
Volume and Price
|
|
Acquisitions
|
|
Currency
|
|
Total
|
Americas
|
2%
|
|
0%
|
|
0%
|
|
2%
|
|
12%
|
|
0%
|
|
0%
|
|
12%
|
EMEA
|
14%
|
|
0%
|
|
(4)%
|
|
10%
|
|
16%
|
|
0%
|
|
(4)%
|
|
12%
|
Asia Pacific
|
7%
|
|
0%
|
|
(1)%
|
|
6%
|
|
4%
|
|
0%
|
|
0%
|
|
4%
|
Consolidated
|
5%
|
|
0%
|
|
(1)%
|
|
4%
|
|
12%
|
|
0%
|
|
0%
|
|
12%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Jun 30,
2017 |
|
Jun 24,
2016 |
|
Jun 30,
2017 |
|
Jun 24,
2016 |
||||||||
Net Sales
|
$
|
379,483
|
|
|
$
|
348,126
|
|
|
$
|
720,073
|
|
|
$
|
653,038
|
|
Cost of products sold
|
175,542
|
|
|
162,985
|
|
|
330,859
|
|
|
306,101
|
|
||||
Gross Profit
|
203,941
|
|
|
185,141
|
|
|
389,214
|
|
|
346,937
|
|
||||
Product development
|
14,901
|
|
|
15,607
|
|
|
29,400
|
|
|
30,293
|
|
||||
Selling, marketing and distribution
|
56,060
|
|
|
56,136
|
|
|
110,971
|
|
|
108,837
|
|
||||
General and administrative
|
34,211
|
|
|
35,056
|
|
|
64,253
|
|
|
68,516
|
|
||||
Operating Earnings
|
98,769
|
|
|
78,342
|
|
|
184,590
|
|
|
139,291
|
|
||||
Interest expense
|
4,154
|
|
|
4,543
|
|
|
8,209
|
|
|
9,036
|
|
||||
Other expense (income), net
|
(989
|
)
|
|
392
|
|
|
(798
|
)
|
|
(754
|
)
|
||||
Earnings Before Income Taxes
|
95,604
|
|
|
73,407
|
|
|
177,179
|
|
|
131,009
|
|
||||
Income taxes
|
15,776
|
|
|
22,460
|
|
|
36,619
|
|
|
40,510
|
|
||||
Net Earnings
|
$
|
79,828
|
|
|
$
|
50,947
|
|
|
$
|
140,560
|
|
|
$
|
90,499
|
|
Net Earnings per Common Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.43
|
|
|
$
|
0.92
|
|
|
$
|
2.52
|
|
|
$
|
1.63
|
|
Diluted
|
$
|
1.38
|
|
|
$
|
0.89
|
|
|
$
|
2.43
|
|
|
$
|
1.59
|
|
Weighted Average Number of Shares
|
|
|
|
|
|
|
|
||||||||
Basic
|
55,801
|
|
|
55,634
|
|
|
55,785
|
|
|
55,514
|
|
||||
Diluted
|
57,927
|
|
|
57,040
|
|
|
57,820
|
|
|
56,875
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Jun 30,
2017 |
|
Jun 24,
2016 |
|
Jun 30,
2017 |
|
Jun 24,
2016 |
||||||||
Net Sales
|
|
|
|
|
|
|
|
||||||||
Industrial
|
$
|
174,868
|
|
|
$
|
156,997
|
|
|
$
|
331,258
|
|
|
$
|
304,085
|
|
Process
|
73,399
|
|
|
64,706
|
|
|
143,428
|
|
|
128,991
|
|
||||
Contractor
|
131,216
|
|
|
126,423
|
|
|
245,387
|
|
|
219,962
|
|
||||
Total
|
$
|
379,483
|
|
|
$
|
348,126
|
|
|
$
|
720,073
|
|
|
$
|
653,038
|
|
Operating Earnings
|
|
|
|
|
|
|
|
||||||||
Industrial
|
$
|
61,596
|
|
|
$
|
51,052
|
|
|
$
|
115,331
|
|
|
$
|
96,846
|
|
Process
|
13,418
|
|
|
7,634
|
|
|
26,881
|
|
|
14,911
|
|
||||
Contractor
|
33,759
|
|
|
29,364
|
|
|
59,778
|
|
|
46,107
|
|
||||
Unallocated corporate (expense)
|
(10,004
|
)
|
|
(9,708
|
)
|
|
(17,400
|
)
|
|
(18,573
|
)
|
||||
Total
|
$
|
98,769
|
|
|
$
|
78,342
|
|
|
$
|
184,590
|
|
|
$
|
139,291
|
|