What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-02-18 compared with 2024-02-20 · 132 added, 89 removed, 832 unchanged (21% of the section changed)

70 unchanged sentences

Net Earnings $ 486,084 $ 506,511 $ 460,645

Components of other comprehensive income (loss)

Components of other comprehensive (loss) income

Cumulative translation adjustment ( 32,446 ) 25,661 ( 9,582 )

1 unchanged sentence

Income taxes - pension and postretirement medical liability ( 5,397 ) ( 2,704 ) ( 5,257 )

Other comprehensive income 34,383 10,791 43,996

Other comprehensive (loss) income ( 14,579 ) 34,383 10,791

Comprehensive Income $ 471,505 $ 540,894 $ 471,436

26 unchanged sentences

Total current liabilities 405,808 395,200

Long-term Debt — 75,000

Retirement Benefits and Deferred Compensation 80,381 80,347

10 unchanged sentences

Retained earnings 1,509,264 1,227,938

Accumulated other comprehensive income (loss) ( 34,995 ) ( 69,378 )

Accumulated other comprehensive loss ( 49,574 ) ( 34,995 )

Total shareholders’ equity 2,584,135 2,224,225

30 unchanged sentences

Cash Flows From Financing Activities

Borrowings on short-term lines of credit, net 9,725 ( 18,252 ) 20,497

Payments on long-term debt ( 75,000 ) ( 75,000 ) ( 70 )

Borrowings (payments) on short-term lines of credit, net ( 766 ) 9,725 ( 18,252 )

Payments on long-term debt and lines of credit — ( 75,000 ) ( 75,000 )

Payments of debt issuance costs ( 1,707 ) ( 1,025 ) —

20 unchanged sentences

Shares issued 946 33,454 — — 34,400

Shares repurchased ( 3,552 ) ( 15,481 ) ( 214,393 ) — ( 233,426 )

Stock compensation cost — 24,216 — — 24,216

Restricted stock canceled (issued) — ( 2,337 ) — — ( 2,337 )

Net earnings — — 460,645 — 460,645

27 unchanged sentences

and Subsidiaries (the Company) is 52- or 53-weeks, ending on the last Friday in December.

The year ended December 31, 2021 was a 53-week year whereas the years ended December 29, 2023 and December 30, 2022 were 52-week years.

The years ended December 27, 2024, December 29, 2023, and December 30, 2022 were 52-week years.

Basis of Statement Presentation .

7 unchanged sentences

dollar is the functional currency for all other foreign subsidiaries.

Accordingly, gains and losses from the translation of foreign currency balances and transactions of those subsidiaries are included in other expense, net.

Accordingly, gains and losses from the translation of foreign currency balances and transactions of those subsidiaries are included in other (income) expense, net.

Accounting Estimates .

11 unchanged sentences

Cash surrender value of life insurance 2 $ 24,411 $ 22,255

Forward exchange contracts 2 116 —

Total assets at fair value $ 24,527 $ 22,255

Contingent consideration 3 $ 14,647 $ 1,375

7 unchanged sentences

Contingent consideration liability represents 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.

Disclosures related to other fair value measurements are included below in Impairment of Long-Lived Assets, in Note F (Debt) and in Note J (Retirement Benefits).

Disclosures related to other fair value measurements are included below in Impairment of Long-Lived Assets, in Note F

(Debt) and in Note J (Retirement Benefits).

Cash Equivalents .

10 unchanged sentences

Balance, beginning $ 4,655 $ 6,130 $ 3,254

Additions (reversals) charged to costs and expenses 1,125 3,567 ( 27 )

Deductions from reserves (1)

Additions charged to costs and expenses 930 1,125 3,567

Additions (deductions) from reserves (1)

( 383 ) ( 2,711 ) ( 633 )

Other additions (deductions) (2)

Other (deductions) additions (2)

( 229 ) 111 ( 58 )

Balance, ending $ 4,973 $ 4,655 $ 6,130

(1) Represents amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves.

(1) Additions represents amounts identified in acquisitions.

Deductions represent amounts determined to be uncollectible and charged against reserves, net of collections on accounts previously charged against reserves.

(2) Includes effects of foreign currency translation.

2 unchanged sentences

The last-in, first-out (LIFO) cost method is used for valuing most U.S.

Inventories of foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method.

Inventories of most foreign subsidiaries are valued using the first-in, first-out (FIFO) cost method.

Other Current Assets.

5 unchanged sentences

The Company evaluates long-lived assets (including property and equipment, goodwill and other intangible assets) for impairment annually in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

In the third quarter of 2023, the Company recognized a goodwill impairment related to the reorganization of a business acquired in 2020 that is not material to the consolidated financial statements.

We completed our annual impairment test of all long-lived assets in the fourth quarter of 2024.

No additional impairment charges were recorded as a result of that review.

There were no impairment charges in 2022 or 2021.

No impairment charges were recorded as a result of that review.

In 2023, the Company recognized a goodwill impairment related to the reorganization of a business acquired in 2020 that was not material to the consolidated financial statements.

There were no impairment charges in 2022.

Property, Plant and Equipment .

7 unchanged sentences

Changes in the carrying amounts of goodwill for each reportable segment were (in thousands):

Industrial Process Contractor Total

Balance, January 1, 2022 $ 137,155 $ 141,304 $ 77,796 $ 356,255

Additions, adjustments from business acquisitions — 16,994 — 16,994

Contractor Industrial Process Total

Balance, December 30, 2022 $ 77,034 $ 134,771 $ 156,366 $ 368,171

Impairment — — ( 7,800 ) ( 7,800 )

Foreign currency translation 508 8,361 988 9,857

1 unchanged sentence

Additions, adjustments from business acquisitions 126,101 — 4,022 130,123

Impairment — ( 7,800 ) — ( 7,800 )

Foreign currency translation ( 5,605 ) ( 6,907 ) ( 371 ) ( 12,883 )

23 unchanged sentences

Estimated Amortization Expense $ 23,838 $ 16,996 $ 13,627 $ 11,490 $ 10,875 $ 63,507

In 2022 and 2021 the Company completed acquisitions that were not material to the consolidated financial statements.

Other Assets.

3 unchanged sentences

Equity method investment 10,140 9,661

Prepaid pension 37,888 —

Deposits and other 7,461 3,332

3 unchanged sentences

The insurance contracts are held in a trust and are available to general creditors in the event of the Company’s insolvency.

Changes in cash surrender value are recorded in other expense, net.

The cash surrender value increased $ 3.1 million in 2023, decreased $ 4.0 million in 2022 and increased $ 3.3 million in 2021.

Changes in cash surrender value are recorded in other (income) expense, net.

The cash surrender value increased $ 2 million in 2024 and $ 3 million in 2023 and decreased $ 4 million in 2022.

Capitalized software is amortized over its estimated useful life (generally 2 to 5 years) beginning at date of implementation.

10 unchanged sentences

Right of return refund liability 15,557 17,826

Acquisition-related consideration payable 10,339 —

Other 48,008 30,574

16 unchanged sentences

Revenue Recognition .

Revenue is recognized at a single point in time upon the satisfaction of performance obligations, which occurs when control of the good or service transfers to the customer.

Revenue is recognized at a single point in time upon the satisfaction of performance obligations, which occurs when control of the goods or service transfers to the customer.

This is generally on the date of shipment for product sales;

4 unchanged sentences

Variable consideration is accounted for as a price adjustment (sales adjustment).

Following are examples of variable consideration that affect the Company’s reported revenue.

The following are examples of variable consideration that affect the Company’s reported revenue.

Early payment discounts are provided to certain customers and within certain regions.

17 unchanged sentences

This is also the case for services associated with certain product sales.

The balance in the deferred revenue and customer advances was $ 51.6 million as of December 29, 2023 and $ 50.7 million as of December 30, 2022.

Net sales for 2023 included $ 49.6 million that was in deferred revenue and customer advances as of December 30, 2022.

Net sales for 2022 included $ 60.4 million that was in deferred revenue and customer advances as of December 31, 2021.

The balance of customer advances and deferred revenue was $ 53 million as of December 27, 2024 and $ 52 million as of December 29, 2023.

Net sales for 2024 included $ 50 million that was in customer advances and deferred revenue as of December 29, 2023.

Net sales for 2023 included $ 50 million that was in customer advances and deferred revenue as of December 30, 2022.

Shipping and handling activities that occur after control of the related good transfers are accounted for as fulfillment activities instead of assessing such activities as performance obligations.

20 unchanged sentences

The Company enters into forward contracts or options, or borrows in various currencies, in order to hedge its net monetary positions.

These instruments are recorded at fair value and the gains and losses are included in other expense, net.

These instruments are recorded at fair value and the gains and losses are included in other (income) expense, net.

The notional amounts of contracts outstanding as of December 27, 2024, totaled $ 51 million.

10 unchanged sentences

Contractor, Industrial and Process.

Beginning with the first quarter of 2022, our high performance coatings and foam product offerings previously included within the Applied Fluid Technologies division of the Industrial segment were realigned and are now managed under the Contractor segment.

This change aligns the types of products offered and markets served within the segments.

Prior year segment information has been restated to conform to the current organizational structure.

The Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture to walls and ceilings, insulation to building walls and other items, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors.

The Industrial segment includes our Industrial and Powder divisions.

The Industrial segment markets equipment and solutions for moving and applying paints, coatings, sealants, adhesives and other fluids.

The Industrial segment markets equipment and solutions for moving and applying paints, powder coatings, sealants, adhesives and other fluids.

Markets served include automotive and vehicle assembly and components production, including Electro or e-mobility, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries.

The Process segment includes our Process and Lubrication divisions.

The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food,

lubricants and other fluids.

The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids.

Markets served include food and beverage, dairy, oil and natural gas, pharmaceutical, cosmetics, electronics, semiconductor fabrication, wastewater, mining, fast oil change facilities, service garages, fleet service centers, automobile dealerships and industrial lubrication applications.

2 unchanged sentences

Depreciation expense is charged to the manufacturing or operating cost center that utilizes the asset and is then allocated to segments on the same basis as other expenses within that cost center.

Reportable segments are defined by product.

Segments are responsible for development, manufacturing, marketing and sales of their products.

1 unchanged sentence

The segments share common purchasing, certain manufacturing, distribution and administration functions.

The Company’s chief operating decision maker is the chief executive officer.

The Company’s chief operating decision maker uses operating earnings excluding unallocated corporate expense to assess the operating performance of each segment.

Operating earnings is used to make resource allocation decisions amongst segments and to determine compensation for certain employees.

Gross profit is additionally used to evaluate product pricing and operating performance.

Unallocated corporate expenses include such items as stock compensation, certain acquisition transaction costs, bad debt expense, charitable contributions and certain facility expenses.

Asset information by segment is not reported to the chief operating decision maker and therefore is not disclosed.

Segment information follows (in thousands):

2024 2023 2022

Contractor $ 985,675 $ 999,060 $ 987,606

Industrial 662,785 649,347 602,376

Process 547,146 495,114 397,626

Total $ 2,195,606 $ 2,143,521 $ 1,987,608

Operating Earnings

Contractor $ 285,394 $ 249,833 $ 266,204

Industrial 234,054 231,298 199,856

Process 165,273 122,344 91,037

Net Sales $ 988,865 $ 985,675 $ 999,060

Cost of products sold 484,926 493,857 555,622

Gross Profit 503,939 491,818 443,438

Operating Expenses 233,795 206,424 193,605

Contractor Operating Earnings $ 270,144 $ 285,394 $ 249,833

Net Sales $ 619,653 $ 662,785 $ 649,347

Cost of products sold 260,856 279,160 274,660

Gross Profit 358,797 383,625 374,687

Operating Expenses 157,309 149,571 143,389

Industrial Operating Earnings $ 201,488 $ 234,054 $ 231,298

Net Sales $ 504,798 $ 547,146 $ 495,114

Cost of products sold 238,195 255,375 250,832

Gross Profit 266,603 291,771 244,282

Operating Expenses 124,871 126,498 121,938

Process Operating Earnings $ 141,732 $ 165,273 $ 122,344

Reportable Segment Operating Earnings Total $ 613,364 $ 684,721 $ 603,475

Unallocated corporate expense 43,266 38,678 30,775

1 unchanged sentence

Impairment — 7,800 —

Total $ 646,843 $ 572,700 $ 531,323

Contractor $ 712,224 $ 752,729

Industrial 640,487 578,302

Process 554,753 564,539

Unallocated corporate 814,543 543,330

Total $ 2,722,007 $ 2,438,900

Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses and asset impairments.

Unallocated corporate (expense) includes such items as stock compensation, certain acquisition transaction costs, bad debt expense, charitable contributions and certain facility expenses.

Unallocated assets include cash, allowances and valuation reserves, deferred income taxes, certain capital and other assets.

Operating Earnings 570,098 646,843 572,700

Interest expense 2,828 5,191 9,897

Other (income) expense, net ( 22,013 ) 32,850 ( 2,921 )

Earnings Before Income Taxes $ 589,283 $ 608,802 $ 565,724

Geographic information follows (in thousands):

18 unchanged sentences

Inventories valued under the LIFO method were $ 179 million in 2024 and $ 211 million in 2023.

All other inventory was valued on the FIFO method.

Most other inventory was valued on the FIFO method.

In 2024, certain inventory quantities were reduced, resulting in liquidation of LIFO inventory quantities, although increases in current product costs offset the impact of the decrement.

47 unchanged sentences

Postretirement medical benefit obligation 5,002 5,039

Acquisition costs 442 —

Stock compensation 12,634 12,686

6 unchanged sentences

Total deferred tax assets were $ 47 million and $ 61 million, and total deferred tax liabilities were $ 38 million and $ 8 million on December 27, 2024 and December 29, 2023, respectively.

The difference between the deferred income tax provision and the change in net deferred income taxes is due to the changes in other comprehensive income (loss) items.

The difference between the deferred income tax provision and the change in net deferred income taxes is due to the changes in other comprehensive income (loss) items and acquisition purchase accounting.

The Company files income tax returns in the U.S.

3 unchanged sentences

income tax examinations by tax authorities for years before 2018.

The Company continues to assert that it will indefinitely reinvest earnings of foreign subsidiaries to support expansion of its international business.

The Company continues to assert that it will indefinitely reinvest earnings of foreign subsidiaries to support the expansion of its international business.

No additional income or withholding taxes have been provided for any remaining undistributed foreign earnings, as these amounts continue to be indefinitely reinvested in foreign operations.

6 unchanged sentences

December 27, 2024 Maturity 2024 2023

Private placement unsecured fixed-rate notes

Series D 5.35 % July 2023 — 75,000

Unsecured revolving credit facility N/A December 2026 — —

Unsecured revolving credit facility N/A October 2029 — —

Unsecured revolving credit facility - offshore renminbi denominated 4.36 % N/A 27,375 28,099

1 unchanged sentence

Total debt $ 28,537 $ 30,036

The estimated fair value of the fixed interest rate Series D private placement debt was $ 75 million on December 30, 2022.

This debt was repaid in July of 2023.

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.

On May 23, 2023 and June 8, 2023, the Company executed amendments to its amended and restated credit agreement that amended, superseded and restated in its entirety the Company's existing credit agreement with U.S.

On October 25, 2024, the Company executed an amendment to its amended and restated credit agreement, extending the expiration date to October 25, 2029, that amended, superseded and restated in its entirety the Company's existing credit agreement with U.S.

Bank National Association, as administrative agent and a lender, and the other lenders that are parties thereto.

The first amendment removed references to LIBOR for calculating rates and replaced them with SOFR and its equivalent benchmark rates such as EURIBOR, TIBOR and RFR loans.

The second amendment increased, from $ 500 million to $ 750 million, the amount of availability under an unsecured revolving credit facility, as well as increased, from $ 200 million to $ 375 million, the maximum amount of outstanding loans in currencies other than U.S.

The amendment also increased, from $ 250 million to $ 375 million, the amount by which the size of the credit facility may be increased upon exercise of an accordion feature.

The accordion feature may be exercised by means of an increase in the revolving commitments or the addition of term loans.

In addition, the second amendment increased the applicable margin percentages used for purposes of calculating the interest rates applicable to base rate loans and non-base rate loans (e.g., SOFR, EURIBOR, TIBOR and RFR loans).

Under the amendment, the applicable margin percentages for base rate loans (which ranged from 0.000 % to 0.750 % under the prior credit agreement) range from 0.125 % to 0.875 %, and the applicable margin percentages for non-base rate loans (which ranged from 1.000 % to 1.750 % under the prior credit agreement) range from 1.125 % to 1.875 %.

The amended agreement with a syndicate of lenders provides up to $750 million of committed credit, available for general corporate purposes, working capital needs, share repurchases and acquisitions.

The Company may borrow up to $ 50 million under the swingline portion of the facility for daily working capital needs.

Borrowings under the amended and restated credit agreement may be denominated in U.S.

10 unchanged sentences

Loans denominated in Chinese renminbi (offshore) bear interest at a HIBOR-based rate based on the Chinese offshore rate.

Other terms of this revolving credit agreement are substantially similar to those of the Company’s amended and restated credit agreement that expires in March 2026.

Other terms of this revolving credit agreement are substantially similar to those of the Company’s amended and restated credit agreement that expires in October 2029.

On December 16, 2022, the Company entered into an amendment to its master note agreement that extends the period in which the Company may issue, and affiliates of the lender may purchase, the Company’s senior notes from January 29, 2023 to December 16, 2027.

34 unchanged sentences

Amounts related to pension and postretirement medical adjustments are classified to non-service components of pension cost that are included within other non-operating expenses .

Included in the 2023 and 2021 reclassifications were $ 42 million and $ 12 million, respectively, of pension settlement losses.

Included in the 2023 reclassifications were $ 42 million of pension settlement losses.

See Note J for additional details regarding pension and postretirement medical plans.

8 unchanged sentences

The Company has a stock appreciation plan that provides for payments of cash to eligible foreign employees based on the change in the market price of the Company’s common stock over a period of time.

Compensation cost related to the stock appreciation plan was expense of $ 2.0 million in 2023, a benefit of $ 0.2 million in 2022 and expense of $ 3.1 million in 2021.

Compensation cost related to the stock appreciation plan was an expense of $ 2 million in 2024 and $ 2 million in 2023 and a benefit of $ 0.2 million in 2022.

Individual nonemployee directors of the Company may elect to receive, either currently or deferred, all or part of their retainer in the form of shares of the Company’s common stock instead of cash.

35 unchanged sentences

There were approximately 9.1 million vested share options and share options expected to vest as of December 27, 2024 with an aggregate intrinsic value of $ 265 million, a weighted average exercise price of $ 55.60 and a weighted average contractual term of 5.2 years.

Information related to options exercised follows (in thousands):

Information related to options exercised as follows (in thousands):

2024 2023 2022

52 unchanged sentences

Diluted earnings per share $ 2.82 $ 2.94 $ 2.66

Anti-dilutive stock options excluded from computations of diluted earnings per share totaled 2.0 million shares in 2023, 2.2 million shares in 2022 and 0.4 million 2021.

Anti-dilutive stock options excluded from computations of diluted earnings per share totaled 0.9 million shares in 2024, 2.0 million shares in 2023 and 2.2 million shares in 2022.

Retirement Benefits

10 unchanged sentences

funded defined benefit pension plan were transferred to an insurance company.

Under the agreement, the Company purchased a group annuity contract for approximately 651 plan participants that provides for an irrevocable commitment to make annuity payments to the affected participants.

The payment obligation and administration thereof for the affected participants was transferred from the pension plans to the insurance company.

The transfer did not change the amount of the monthly pension benefits received by the affected participants.

This arrangement is part of the Company’s effort to reduce the overall size and volatility of its pension plan obligations.

The purchase of the group annuity contract was funded through existing plan assets.

The Company recognized a non-cash pension settlement loss of approximately $ 42 million as a result of the transaction.

This charge represents the acceleration of deferred charges currently accrued in accumulated other comprehensive income (loss).

plans, benefits are based on years of service and the highest 5 consecutive years’ earnings in the 10 years preceding retirement.

23 unchanged sentences

Large Cap N/A 64,645 40,726

Small/Mid Cap N/A — 5,191

International N/A 16,444 17,554

8 unchanged sentences

Redemptions ( 4,133 ) ( 2,833 )

Unrealized gains (losses) 4,228 ( 525 )

Unrealized (losses) gains ( 1,883 ) 4,228

Balance, end of year $ 32,466 $ 36,151

26 unchanged sentences

Net $ 14,763 $ 52,724 $ 20,335 $ 22,654

Changes in discount rates used to value pension obligations were the main drivers of actuarial losses in 2023 and gains in 2022.

Changes in discount rates used to value pension obligations were the main drivers of actuarial gains in 2024 and losses in 2023.

In 2024 and 2023, the Company made a $ 20 million voluntary contribution each year to one of its U.S.

78 unchanged sentences

The Company generally uses its incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments.

Supplemental information related to the Company's lease activities is as follows (in thousands):

Supplemental information related to the Company's lease activities were as follows (in thousands):

Operating lease expense $ 10,464 $ 11,688

1 unchanged sentence

Non-cash additions to operating lease assets 511 6,141

Additional information related to operating leases is as follows:

Additional information related to operating leases were as follows:

Weighted average remaining lease term (years) 2.2 3.1

19 unchanged sentences

The Company is actively pursuing and defending these matters and has recorded an estimate of the probable costs where appropriate.

Management does not expect that resolution of these matters will have a material adverse effect on the Company, although the ultimate outcome cannot be determined based on available information.

Management does not expect that the resolution of these matters will have a material adverse effect on the Company, although the ultimate outcome cannot be determined based on available information.

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.

Corob is a global leader in the design and manufacturing of high-performance volumetric and gravimetric dispense, mixing, and shaking equipment used in mission-critical tinting applications.

The acquired business expands and complements the Company’s Contractor segment.

Results of Corob's operations, including $ 16 million of sales and $ 3 million of operating losses, have been included in the Company’s Contractor segment starting from the date of acquisition.

As of December 27, 2024, the purchase price allocation remains preliminary as the Company completes its assessment, principally related to income taxes and the finalization of post-closing purchase price adjustments.

The financial results of the Corob acquisition are not expected to have a material impact on the consolidated financial statements.

The contingent consideration is related to the sellers' eligibility to receive cash earn out payments, calculated based on qualified revenue performance metrics for two individual twelve-month periods.

The earn out payments are capped at € 15.0 million for both periods.

The fair value of the earn out payments was initially valued using a probability-weighted expected return approach of future payments to be made to previous owners based on future revenues.

The total purchase consideration consisted of the following (in thousands):

Cash paid $ 265,301

Acquisition-related consideration payable 10,339

Contingent consideration 14,607

Total purchase consideration $ 290,247

Preliminary purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands):

Cash and cash equivalents $ 30,899

Accounts receivable 28,120

Inventories 26,375

Other current assets 17,915

Property, plant and equipment 16,619

Other non-current assets 5,854

Identifiable intangible assets 131,564

Goodwill 126,101

Current liabilities ( 52,544 )

Deferred income taxes, net ( 33,166 )

Other non-current liabilities ( 7,490 )

Total net assets acquired $ 290,247

Goodwill recognized from the Corob acquisition primarily reflects an intangible asset that does not qualify for separate recognition.

None of the goodwill acquired with Corob is deductible for tax purposes.

Identifiable intangible assets and estimated useful life are as follows (in thousands):

Estimated Life (years)

Trade name $ 32,458 Indefinite

Customer relationship 76,493 15

Developed technology 20,557 10

Backlog 2,056 0.5

Total identifiable intangibles assets $ 131,564

The fair values of the trade name and developed technology acquired in the acquisition were determined using a relief-from-royalty method, and customer relationships and backlog acquired were determined using an excess earnings method.

These methods utilize unobservable inputs that are significant to these fair value measurements and thus classified as Level 3 of the fair value hierarchy described in Note A.

The following unaudited pro forma information provides the results of operations for the years ended December 27, 2024 and December 29, 2023, as if the acquisition had been completed at the beginning of fiscal year 2023 (in thousands, except per share amounts):

Net sales $ 2,218,982 $ 2,316,030

Net earnings 489,109 501,114

Earnings per share

Basic $ 2.90 $ 2.97

Diluted $ 2.84 $ 2.91

The unaudited pro forma information includes the impact of intangible asset amortization of approximately $ 8 million in 2024 and $ 11 million in 2023.

The year ended December 27, 2024 excludes the impact of $ 4 million of transaction-related expenses and non-recurring expense related to the fair value adjustment to acquisition-date inventory.

The year ended December 29, 2023 was adjusted to include transaction-related expenses and non-recurring expenses related to the fair value adjustment to acquisition-date inventory.

The information also reflects the pro forma cost of foregone interest income but does not reflect the effect of any synergies or integration costs that may result from the acquisition.

Unaudited pro forma information has been provided for comparative purposes only and the information does not necessarily reflect what the combined company's results of operations would have been had the acquisition occurred at the beginning of 2023.

It also may not be useful in predicting the future results of operations of the combined company.

The Company completed another acquisition in 2024 that was not material to the consolidated financial statements.

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data