What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-17 compared with 2025-02-18 · 111 added, 69 removed, 895 unchanged (17% of the section changed)

22 unchanged sentences

Retirement Benefits – U.S.

Pension Benefit Obligation – Refer to Note J to the financial statements

Pension Benefit Obligation – Refer to Note 10 to the financial statements

Critical Audit Matter Description

2 unchanged sentences

The Company establishes the discount rate assumptions for the U.S.

pension plans by reference to a yield curve published by an actuary and projected plan cash flows.

pension plans by reference to a yield curve published by an actuary based on yields of highly rated corporate bonds and projected plan cash flows.

Given the significance of the U.S.

40 unchanged sentences

Net Earnings $ 521,839 $ 486,084 $ 506,511

Components of other comprehensive (loss) income

Components of other comprehensive income (loss)

Cumulative translation adjustment 84,429 ( 32,446 ) 25,661

1 unchanged sentence

Income taxes - pension and postretirement medical liability ( 729 ) ( 5,397 ) ( 2,704 )

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

Other comprehensive income (loss) 87,079 ( 14,579 ) 34,383

Comprehensive Income $ 608,918 $ 471,505 $ 540,894

21 unchanged sentences

Notes payable to banks $ 23,072 $ 28,537

Current portion of long-term debt 1,624 —

Trade accounts payable 78,573 60,816

7 unchanged sentences

Other Non-current Liabilities 11,060 18,788

Commitments and Contingencies (Note K)

Commitments and Contingencies (Note 11)

Shareholders’ Equity

5 unchanged sentences

Retained earnings 1,456,710 1,509,264

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

Accumulated other comprehensive income (loss) 37,505 ( 49,574 )

Total shareholders’ equity 2,653,931 2,584,135

13 unchanged sentences

Share-based compensation 34,333 31,892 30,229

Gain on sale of building ( 4,737 ) ( 1,216 ) —

Pension settlement loss — — 42,129

11 unchanged sentences

Property, plant and equipment additions ( 45,669 ) ( 106,737 ) ( 184,775 )

Proceeds from sale of building 11,182 5,630 —

Acquisition of businesses, net of cash acquired ( 135,262 ) ( 241,767 ) —

2 unchanged sentences

Cash Flows From Financing Activities

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) borrowings on short-term lines of credit, net ( 6,588 ) ( 766 ) 9,725

Borrowings (payments) on long-term debt and lines of credit 25 — ( 75,000 )

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

5 unchanged sentences

Effect of exchange rate changes on cash 14,007 ( 1,637 ) 1,022

Net increase (decrease) in cash and cash equivalents 137,385 198,755 ( 285,106 )

Net (decrease) increase in cash and cash equivalents ( 51,253 ) 137,385 198,755

Cash and Cash Equivalents

17 unchanged sentences

— — ( 161,152 ) — ( 161,152 )

Other comprehensive income (loss) — — — 10,791 10,791

Other comprehensive income — — — 34,383 34,383

Balance December 29, 2023 167,946 863,336 1,227,938 ( 34,995 ) 2,224,225

5 unchanged sentences

— — ( 175,856 ) — ( 175,856 )

Other comprehensive income (loss) — — — 34,383 34,383

Other comprehensive loss — — — ( 14,579 ) ( 14,579 )

Balance December 27, 2024 169,394 955,051 1,509,264 ( 49,574 ) 2,584,135

2 unchanged sentences

Stock compensation cost — 32,517 — — 32,517

Restricted stock issued — ( 724 ) — — ( 724 )

Net earnings — — 521,839 — 521,839

1 unchanged sentence

— — ( 185,499 ) — ( 185,499 )

Other comprehensive income (loss) — — — ( 14,579 ) ( 14,579 )

Other comprehensive income — — — 87,079 87,079

Balance December 26, 2025 $ 165,150 $ 994,566 $ 1,456,710 $ 37,505 $ 2,653,931

10 unchanged sentences

The consolidated financial statements include the accounts of the parent company and its subsidiaries after elimination of intercompany balances and transactions.

As of December 27, 2024, all subsidiaries are 100 percent controlled by the Company.

Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year presentation.

29 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).

In the third quarter of 2025, the Company recognized a $ 14 million gain from the reduction in the fair value of the contingent consideration related to an acquisition.

Disclosures related to other fair value measurements are included below in Impairment of Long-Lived Assets, in Note 6 (Debt), in Note 10 (Retirement Benefits) and in Note 12 (Acquisitions).

Cash Equivalents .

11 unchanged sentences

Additions charged to costs and expenses 584 930 1,125

Additions (deductions) from reserves (1)

(Deductions) additions from reserves (1)

( 539 ) ( 383 ) ( 2,711 )

Other (deductions) additions (2)

Other additions (deductions) (2)

246 ( 229 ) 111

16 unchanged sentences

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.

In connection with the reorganization of a business acquired in 2020, impairment charges of $ 7.8 million were recorded in 2023.

There were no additional impairment charges in 2024 and 2023.

Property, Plant and Equipment .

7 unchanged sentences

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

Contractor Industrial Process Total

Contractor Industrial Expansion Markets Total

Balance, December 29, 2023 $ 77,542 $ 224,605 $ 68,081 $ 370,228

Impairment — — ( 7,800 ) ( 7,800 )

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

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

Balance, December 27, 2024 198,038 217,698 71,732 487,468

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

Adjustments from business acquisitions 23,030 44,092 ( 266 ) 66,856

Foreign currency translation 17,507 13,473 — 30,980

35 unchanged sentences

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.

The cash surrender value increased $ 4 million in 2025, increased $ 2 million in 2024 and increased $ 3 million in 2023.

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

61 unchanged sentences

Sales taxes related to revenue producing transactions collected from the customer for a governmental authority are excluded from the transaction price.

Revenue standard requirements are applied to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio.

recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio.

Promised goods or services are not assessed as performance obligations if they are immaterial in the context of the contract with the customer.

26 unchanged sentences

Liabilities ( 268 ) ( 20 )

Net Assets (Liabilities) $ 116 $ ( 422 )

Net (Liabilities) Assets $ ( 268 ) $ 116

Segment Information

The Company has five operating segments which are aggregated into three reportable segments:

Contractor, Industrial and Process.

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.

Effective January 1, 2025, the Company began to classify its business into three reportable segments:

Contractor, Industrial and Expansion Markets.

The Industrial segment consists of the newly formed Industrial Division and the Powder Division.

The Company’s former Industrial and Lubrication Equipment Divisions, along with the Process Transfer Equipment business that was part of the Company’s former Process Division, were combined to form the new global Industrial Division.

The Powder Division remains unchanged.

The Expansion Markets segment consists of the Expansion Markets Division.

The Company’s environmental, semiconductor, high-pressure valves and electric motors businesses, together with select future ventures and acquisitions, reside within this division.

The Contractor segment, consisting of the Contractor Division, remains unchanged as a reportable segment relative to prior periods.

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

The Company has four operating segments which are aggregated into three reportable segments:

Contractor, Industrial and Expansion Markets.

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, markings on roads, parking lots, athletic fields and floors and high-performance volumetric and gravimetric dispense, mixing, and shaking equipment.

The Industrial segment includes our Industrial and Powder divisions.

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

The Industrial division designs and manufactures liquid finishing and advanced fluid dispensing equipment;

pumps to move chemicals, petroleum, food, and other fluids;

and systems, components, and accessories for the automatic lubrication of bearings, gears, and generators.

The Industrial division also manufactures and supplies equipment for equipment maintenance and vehicle servicing applications, including supply pumps, hose reels, meters, valves, and accessories used by fast oil change facilities, service garages, fleet service centers, automobile dealerships, auto parts stores, truck builders, and heavy equipment service centers.

The Powder division makes powder finishing products and complete powder finishing systems that coat powder on metals.

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.

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.

The Expansion Markets segment markets and manufactures pumps for use in the semiconductor industry;

high pressure and ultra-high pressure valves used in the oil and natural gas industry;

and environmental monitoring and remediation equipment that is used to conduct ground water sampling, ground water remediation, and for landfill liquid and gas management.

This segment also provides product design and licensing services for the development of high torque electric motors used in a variety of applications, including heating, ventilation, and air conditioning equipment, pumps, sprayers and other material handling equipment.

Markets served include oil and natural gas, environmental, electronics, industrial, renewable energy, semiconductor fabrication and wastewater.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

22 unchanged sentences

Industrial Operating Earnings $ 334,586 $ 311,710 $ 355,994

Expansion Markets

Net Sales $ 167,912 $ 166,428 $ 191,788

2 unchanged sentences

Operating Expenses 48,072 48,905 54,518

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

Expansion Markets Operating Earnings $ 41,496 $ 31,510 $ 43,333

Reportable Segment Operating Earnings Total $ 646,390 $ 613,364 $ 684,721

27 unchanged sentences

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.

In 2025, certain inventory quantities were reduced, resulting in liquidation of LIFO inventory quantities, although increases in current product costs, including tariffs, offset the impact of the decrement.

The impact on net earnings was not significant.

23 unchanged sentences

Foreign ( 8,995 ) ( 2,284 ) ( 1,583 )

Deferred income tax expense (benefit) 6,060 ( 8,502 ) ( 9,997 )

Deferred income tax (benefit) expense ( 4,536 ) 6,060 ( 8,502 )

Total $ 119,361 $ 103,199 $ 102,291

Income taxes paid were $ 104 million in 2024, $ 111 million in 2023 and $ 112 million in 2022.

In the current year, we adopted a new income tax disclosure accounting standard.

The disclosure was retrospectively applied to all periods presented.

Income taxes paid were as follows (in thousands):

2025 2024 2023

Federal $ 76,000 $ 68,000 $ 65,000

State 5,921 6,665 7,112

Foreign 29,370 29,569 39,174

Total $ 111,291 $ 104,234 $ 111,286

Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:

Foreign 2025 2024 2023

Belgium * * $ 8,732

China * * $ 7,806

Switzerland * * $ 6,230

*Jurisdiction below the threshold for the period presented.

A reconciliation between the U.S.

federal statutory tax rate and the effective tax rate follows:

federal statutory tax rate and the effective tax rate follows (dollars in thousands):

2025 2024 2023

Amount Percent Amount Percent Amount Percent

Statutory tax rate $ 134,652 21.0 % $ 123,750 21.0 % $ 127,848 21.0 %

Tax effect of international operations 1 ( 1 ) 1

State taxes, net of federal effect 6,285 1.0 5,756 1.0 5,897 1.0

general business tax credits ( 1 ) ( 1 ) ( 1 )

Stock compensation excess tax benefit ( 2 ) ( 1 ) ( 1 )

Foreign Derived Intangible Income (FDII) ( 2 ) ( 2 ) ( 2 )

Tax effect of international operations ( 326 ) ( 0.1 ) 4,106 0.7 ( 5,204 ) ( 0.9 )

Cross-border tax law effects

Foreign-derived intangible income ( 10,842 ) ( 1.7 ) ( 10,523 ) ( 1.8 ) ( 13,068 ) ( 2.1 )

Other 996 0.2 1,589 0.3 ( 523 ) ( 0.1 )

Tax credits ( 4,150 ) ( 0.7 ) ( 4,972 ) ( 0.8 ) ( 4,781 ) ( 0.8 )

Nontaxable or nondeductible items

Share-based payment awards ( 6,068 ) ( 0.9 ) ( 14,888 ) ( 2.5 ) ( 10,315 ) ( 1.7 )

Other ( 1,186 ) ( 0.2 ) ( 1,619 ) ( 0.4 ) 2,437 0.4

Effective tax rate $ 119,361 18.6 % $ 103,199 17.5 % $ 102,291 16.8 %

Deferred income taxes are provided for temporary differences between the financial reporting and the tax basis of assets and liabilities.

The deferred tax assets (liabilities) resulting from these differences were as follows (in thousands):

The deferred tax (liabilities) assets resulting from these differences were as follows (in thousands):

Inventory valuations $ 5,605 $ 3,456

9 unchanged sentences

Deferred compensation 2,911 5,305

Net operating loss carryforward 3,511 —

Deferred revenue 7,073 927

Interest expenses 5,132 —

Research and development 34,985 31,543

1 unchanged sentence

Other 4,868 3,652

Net deferred tax assets $ 9,088 $ 53,166

Net deferred tax (liabilities) assets $ ( 733 ) $ 9,088

Total deferred tax assets were $ 36 million and $ 47 million, and total deferred tax liabilities were $ 37 million and $ 38 million on December 26, 2025 and December 27, 2024, respectively.

16 unchanged sentences

Unsecured revolving credit facility - offshore renminbi denominated 2.74 % N/A 22,820 27,375

Long-term loan issued by Intesa Sanpaolo S.p.A.

2.18 % 2026 1,624 —

Notes payable to banks — % 2026 252 1,162

54 unchanged sentences

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

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

See Note 10 for additional details regarding pension and postretirement medical plans.

Share-Based Awards, Purchase Plans and Compensation Cost

7 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 an expense of $ 2 million in 2024 and $ 2 million in 2023 and a benefit of $ 0.2 million in 2022.

Compensation cost related to the

stock appreciation plan was an expense of $ 2 million in 2025 and $ 2 million in 2024 and a benefit of $ 2 million in 2023.

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.

101 unchanged sentences

subsidiaries.

In December of 2023, the Company entered into an agreement under which approximately $147 million of pension obligations of its U.S.

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

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

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

22 unchanged sentences

Investments categorized in fair value hierarchy 39,485 32,581

Large Cap N/A 64,645 40,726

International N/A 16,444 17,554

Total equity 81,089 58,280

Equity N/A 79,622 81,089

Fixed income N/A 82,650 64,331

6 unchanged sentences

Redemptions ( 937 ) ( 4,133 )

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

Unrealized gains (losses) 5,081 ( 1,883 )

Balance, end of year $ 39,319 $ 32,466

6 unchanged sentences

Interest cost 9,444 9,194 1,138 1,148

Actuarial (gain) loss ( 19,973 ) 32,763 ( 2,153 ) ( 237 )

Actuarial loss (gain) 3,897 ( 19,973 ) 311 ( 2,153 )

Benefit payments ( 3,678 ) ( 3,117 ) ( 1,330 ) ( 1,658 )

17 unchanged sentences

Net $ 12,128 $ 14,763 $ 20,759 $ 20,335

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.

Changes in discount rates used to value pension obligations were the main drivers of actuarial losses in 2025 and gains in 2024.

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

qualified defined benefit plans.

12 unchanged sentences

Amortization of net loss 835 3,255 5,999 ( 272 ) — ( 133 )

Curtailment (gain) loss ( 223 ) — — — — —

Settlement loss — 346 42,169 — — —

2 unchanged sentences

Net periodic benefit cost is disaggregated between service cost presented as operating expense and other components of pension cost presented as non-operating expense.

Other components of pension cost and changes in cash surrender value of insurance contracts intended to fund certain non-qualified pension and deferred compensation arrangements included in non-operating expenses totaled $ 3 million in 2024, $ 44 million in 2023 and $ 1 million in 2022.

Other components of pension cost and changes in cash surrender value of insurance contracts intended to fund certain non-qualified pension and deferred compensation arrangements included in non-operating (income) expenses totaled income of $ 5 million in 2025, and expense of $ 3 million and $ 44 million in 2024 and 2023, respectively.

In December of 2023, the Company entered into an agreement under which approximately $ 147 million of pension obligations of its U.S.

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

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

Amounts recognized in other comprehensive income (loss) in 2025 and 2024 were as follows (in thousands):

1 unchanged sentence

2025 2024 2025 2024

Net (loss) gain arising during the period $ 17,506 $ ( 37,132 ) $ 2,153 $ 237

Net gain (loss) arising during the period $ 3,672 $ 17,506 $ ( 311 ) $ 2,153

Amortization of net loss (gain) 835 3,255 ( 272 ) —

Prior service credit (cost) arising during the period 285 250 — —

Prior service (cost) credit arising during the period ( 42 ) 285 — —

Curtailment (gain) loss ( 223 ) — — —

Settlement loss — 346 — —

5 unchanged sentences

Prior service cost $ 1,975 $ 2,026 $ — $ —

Net gain (loss) ( 22,954 ) ( 44,195 ) 4,148 1,995

Net gain (loss) before income taxes ( 20,928 ) ( 42,032 ) 4,148 1,995

Net (loss) gain ( 18,988 ) ( 22,954 ) 3,564 4,148

Net (loss) gain before income taxes ( 17,013 ) ( 20,928 ) 3,564 4,148

Income taxes 3,393 4,549 ( 439 ) ( 914 )

72 unchanged sentences

("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 first twelve-month performance period did not result in an earn-out payment.

The purchase price allocation was completed in the fourth quarter of 2025.

Measurement period adjustments related to the finalization of income taxes resulted in a $ 3 million decrease in goodwill and deferred income taxes, net.

The adjustments were recorded retrospectively, and prior period financial information has been revised accordingly.

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

Cash paid $ 276,188

Acquisition-related consideration payable 10,339

Contingent consideration 14,498

Total purchase consideration $ 290,686

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

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

20 unchanged sentences

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.

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 1.

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):

10 unchanged sentences

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

In the third quarter of 2025, the Company completed the acquisition of Color Service s.r.l for approximately $ 77 million of purchase consideration, and its results have been included within the Powder Division in the Industrial Segment.

In the fourth quarter of 2025, the Company completed the acquisition of Red Devil Equipment Company, known in the market as Radia, for approximately $ 74 million of purchase consideration, and its results have been included with the Contractor Division and Segment.

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

1 unchanged sentence

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