Napa Auto Parts 2014 Annual Report Download - page 66

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Genuine Parts Company and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)
December 31, 2014
The benefit obligations for the Company’s U.S. pension plans included in the above were $2,135,827,000
and $1,838,810,000 at December 31, 2014 and 2013, respectively. The total accumulated benefit obligation for
the Company’s defined benefit pension plans was approximately $2,328,489,000 and $2,017,619,000 at
December 31, 2014 and 2013, respectively.
The assumptions used to measure the pension benefit obligations for the plans at December 31, 2014 and
2013, were:
2014 2013
Weighted-average discount rate ............................................ 4.26% 5.10%
Rate of increase in future compensation levels ................................. 3.07% 3.04%
Changes in plan assets for the years ended December 31, 2014 and 2013 were:
2014 2013
(In Thousands)
Changes in plan assets
Fair value of plan assets at beginning of year ....................... $1,933,063 $1,595,679
Actual return on plan assets .................................... 174,652 336,151
Foreign currency exchange rate changes .......................... (17,616) (12,155)
Employer contributions ........................................ 53,296 74,347
Acquired plan ............................................... —8,684
Plan participants’ contributions .................................. 3,526 3,543
Benefits paid ................................................ (125,084) (73,186)
Fair value of plan assets at end of year ............................ $2,021,837 $1,933,063
The fair values of plan assets for the Company’s U.S. pension plans included in the above were
$1,819,747,000 and $1,745,769,000 at December 31, 2014 and 2013, respectively.
The asset allocations for the Company’s funded pension plans at December 31, 2014 and 2013, and the tar-
get allocation for 2015, by asset category were:
Target
Allocation
2015
Percentage of
Plan Assets at
December 31
2014 2013
Asset Category
Equity securities ............................................... 71% 70% 76%
Debt securities ................................................ 29% 30% 24%
100% 100% 100%
The Company’s benefit plan committees in the U.S. and Canada establish investment policies and strategies
and regularly monitor the performance of the funds. The pension plan strategy implemented by the Company’s
management is to achieve long-term objectives and invest the pension assets in accordance with the applicable
pension legislation in the U.S. and Canada, as well as fiduciary standards. The long-term primary objectives for
the pension plans are to provide for a reasonable amount of long-term growth of capital, without undue exposure
to risk, protect the assets from erosion of purchasing power, and provide investment results that meet or exceed
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