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Over 60 years ago, graco booster seat invented the first portable airless paint sprayer and we’ve been innovating ever since to deliver the high performance and maximum productivity you need to grow your business. Whether you’re a contractor focused on small residential or a large contractor tackling the biggest projects every day, we have a configuration that’s designed to meet your needs. Graco airless paint sprayers are designed and built in the United States of America using the highest-quality parts and backed by the industry’s leading warranty. All Graco sprayers are 100% factory-tested and field-proven so you can be sure your money is going toward the best professional paint sprayer you can purchase.
Supply chain constraints such as logistics capacity and component availability had an unfavorable impact in the quarter and will likely persist for the rest of the year. On a sequential basis, gross margin rates were down 250 basis points as we saw cost pressures such as material, labor, freight and volume-based costs increased throughout the quarter. The majority of these cost increase impact the Contractor segment as that is our highest volume business.
This increase is due to the improvement in earnings in the quarter, partially offset by increases in accounts receivable and inventories that reflect the growth in business activities. Significant uses of cash are dividend payments of $63 million and capital expenditures of $55 million, including $21 million for facility expansion projects. At current cost and volume, we are estimating that realized price, strong factory performance and current production activity will offset the higher product costs on a full year basis. Our operating teams are working diligently to minimize the disruptions and have been effective at keeping pace with our incoming order rates. Mix was favorable in the quarter due to the strong sales in the higher margin Industrial segment. We love that the Graco 4Ever 4-in-1 car seat complies with all Federal Aviation Administration guidelines and can be used on an airplane in the rear or forward-facing positions with the five-point harness.
Due to the extraordinary circumstances surrounding COVID-19, some of the remedies identified in recall press releases may not be available at this time. Consumers should check with recalling firms for further details. Graco King units are designed to withstand the harshest environmental conditions and easily handle the toughest protective coatings and corrosion control applications. Ready to move up to a faster solution from brushing and rolling?
We are optimistic that incoming order rates will remain good in all regions during the second half of the year. However, from a growth rate perspective, our comparisons become much more difficult due to the large increases experienced in the second half of last year. A few comments as we look forward to the rest of the year. We expect unallocated corporate expense to be approximately $30 million and can vary by quarter. Cash flows from operations are at $220 million for the year compared to $143 million last year.
Consumers can continue to use the play yard portion of the product as well as other components included with the play yard. Inclined sleepers run counter to safe sleep recommendations from the American Academy of Pediatrics. The organization states that babies should be put to bed on their backs, alone, unrestrained, and on a firm, flat surface that is free of bumpers and other soft bedding. This is graco travel system’s second inclined sleeper recall; the first was therecall of about 111,000 Graco Little Lounger Rocking Seatsalmost a year ago, in January 2020. We reserve the right to change prices without notice and to correct errors.
As a — I guess, as a former operating person, I would say that the challenge to the current process is of course we’re willing to move forward. On the capex side, yes, the company, as you know, has been aggressively investing in really new facilities and plant and equipment to improve productivity, etc, for several years now. We announced our investment in a new manufacturing facility next to Rogers, Minnesota. And we’re in the process of breaking ground on that.