Graco Inc.

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SEC Filings

10-K
GRACO INC filed this Form 10-K on 02/21/2017
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The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the periods ending December 30, 2016, and December 25, 2015, and a statement of the funded status as of the same dates (in thousands):
 
Pension Benefits
 
Postretirement Medical Benefits
 
2016
 
2015
 
2016
 
2015
Change in benefit obligation
 
 
 
 
 
 
 
Obligation, beginning of year
$
380,672

 
$
389,692

 
$
23,211

 
$
22,764

Service cost
7,834

 
8,406

 
543

 
542

Interest cost
15,684

 
14,790

 
1,084

 
954

Actuarial loss (gain)
11,012

 
(15,465
)
 
2,840

 
14

Plan changes

 
(179
)
 

 

Benefit payments
(20,147
)
 
(12,505
)
 
(1,102
)
 
(1,063
)
Settlements
(6,817
)
 
(2,684
)
 

 

Exchange rate changes
(1,865
)
 
(1,383
)
 

 

Obligation, end of year
$
386,373

 
$
380,672

 
$
26,576

 
$
23,211

Change in plan assets
 
 
 
 
 
 
 
Fair value, beginning of year
$
268,258

 
$
277,208

 
$

 
$

Actual return on assets
11,397

 
4,311

 

 

Employer contributions
4,117

 
1,979

 
1,102

 
1,063

Benefit payments
(20,147
)
 
(12,505
)
 
(1,102
)
 
(1,063
)
Settlements
(6,817
)
 
(2,684
)
 

 

Exchange rate changes
(903
)
 
(51
)
 

 

Fair value, end of year
$
255,905

 
$
268,258

 
$

 
$

Funded status
$
(130,468
)
 
$
(112,414
)
 
$
(26,576
)
 
$
(23,211
)
Amounts recognized in consolidated balance sheets
 
 
 
 
 
 
 
Current liabilities
$
1,030

 
$
1,166

 
$
1,387

 
$
1,282

Non-current liabilities
129,438

 
111,248

 
25,189

 
21,929

Total liabilities
$
130,468

 
$
112,414

 
$
26,576

 
$
23,211


The accumulated benefit obligation as of year-end for all defined benefit pension plans was $360 million for 2016 and $355 million for 2015. Information for plans with an accumulated benefit obligation in excess of plan assets follows (in thousands):
 
2016
 
2015
Projected benefit obligation
$
386,373

 
$
380,672

Accumulated benefit obligation
359,854

 
354,918

Fair value of plan assets
255,905

 
268,258


The components of net periodic benefit cost for the plans for 2016, 2015 and 2014 were as follows (in thousands):
 
Pension Benefits
 
Postretirement Medical Benefits
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost-benefits earned during the period
$
7,834

 
$
8,406

 
$
6,846

 
$
543

 
$
542

 
$
486

Interest cost on projected benefit obligation
15,684

 
14,790

 
15,944

 
1,084

 
954

 
981

Expected return on assets
(18,009
)
 
(19,442
)
 
(21,253
)
 

 

 

Amortization of prior service cost (credit)
269

 
268

 
320

 
(766
)
 
(676
)
 
(658
)
Amortization of net loss (gain)
7,980

 
9,036

 
4,929

 
285

 
323

 
15

Settlement loss (gain)
1,565

 
423

 

 

 

 

Cost of pension plans which are not significant and have not adopted ASC 715
85

 
79

 
80

 
N/A

 
N/A

 
N/A

Net periodic benefit cost
$
15,408

 
$
13,560

 
$
6,866

 
$
1,146

 
$
1,143

 
$
824


49

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