Graco Inc.

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SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/16/2016
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Level 3 assets in the U.S. funded pension plan consist primarily of investments in real estate investment trust funds whose assets are valued at least annually by independent appraisal firms, using market, income and cost approaches. Significant unobservable quantitative inputs used in determining the fair value of each investment include cash flow assumptions, capitalization rates and discount rates. These inputs are subject to change based on changes in economic and market conditions and/or changes in use or timing of exit. Changes in cash flows, discount rates and terminal capitalization rates will result in increases or decreases in the fair values of these investments. It is not possible for us to predict the effect of future economic or market conditions on the estimated fair values of plan assets.

Plan assets by category and fair value measurement level were as follows (in thousands):
 
Total
 
Level 1
 
Level 2
 
Level 3
December 25, 2015
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
U.S. Large Cap
$
77,811

 
$

 
$
77,811

 
$

U.S. Small/Mid Cap
12,759

 

 
12,759

 

International
49,952

 

 
49,952

 

Total Equity
140,522

 

 
140,522

 

Fixed income
42,251

 

 
36,711

 
5,540

Insurance contract
28,080

 

 

 
28,080

Real estate and other
57,405

 
6,578

 
16,048

 
34,779

Total
$
268,258

 
$
6,578

 
$
193,281

 
$
68,399

December 26, 2014
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
U.S. Large Cap
$
92,272

 
$

 
$
92,272

 
$

U.S. Small/Mid Cap
14,948

 

 
14,948

 

International
45,958

 

 
45,958

 

Total Equity
153,178

 

 
153,178

 

Fixed income
53,548

 

 
40,693

 
12,855

Insurance contract
28,899

 

 

 
28,899

Real estate and other
41,583

 
1,356

 
15,008

 
25,219

Total
$
277,208

 
$
1,356

 
$
208,879

 
$
66,973


A reconciliation of the beginning and ending balances of level 3 plan assets follows:
 
2015
 
2014
Balance, beginning of year
$
66,973

 
$
25,844

Transfer from level 2 (insurance contract)

 
31,271

Purchases
7,463

 
12,914

Redemptions
(10,958
)
 
(3,849
)
Change in unrealized gains (losses)
4,921

 
793

Balance, end of year
$
68,399

 
$
66,973



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