AutoZone 2014 Annual Report Download - page 135

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65
The fair values of investments by level and asset category and the weighted-average asset allocations of the
Company’s pension plans at the measurement date are presented in the following table:
August 30, 2014
Fair
Value
Asset Allocation Fair Value Hierarchy
(in thousands) Actual Target Level 1 Level 2 Level 3
U.S. equities .........................
.
$ 70,021 28.8% 25.8% $ – $ 70,021 $ –
International equities ............
.
45,521 18.7 17.2 – 45,521 –
Emerging equities ................
.
24,187 9.9 8.5 – 24,187 –
High yield securities.............
.
22,647 9.3 8.5 – 22,647 –
Alternative investments ........
.
803 0.3 – – – 803
Fixed income securities ........
.
67,652 27.8 40.0 – 67,652 –
Cash and cash equivalents ....
.
12,576 5.2 – – 12,576 –
$ 243,407 100.0% 100.0% $ – $ 242,604 $ 803
August 31, 2013
Fair
Value
Asset Allocation Fair Value Hierarchy
(in thousands) Actual Target Level 1 Level 2 Level 3
U.S. equities .........................
.
$ 57,931 27.9% 30.0% $ – $ 57,931 $ –
International equities ............
.
38,145 18.3 20.0 – 38,145 –
Emerging equities ................
.
19,030 9.1 10.0 – 19,030 –
High yield securities.............
.
19,858 9.5 10.0 – 19,858 –
Alternative investments ........
.
1,226 0.6 – – –
1,226
Fixed income securities ........
.
59,500 28.6 30.0 – 59,500 –
Cash and cash equivalents ....
.
12,430 6.0 – – 12,430 –
$ 208,120 100.0% 100.0% $ – $ 206,894 $ 1,226
The asset allocations in the charts above include $12.6 million and $11.0 million in cash contributions made prior
to the balance sheet date of August 30, 2014, and August 31, 2013, respectively. Subsequent to August 30, 2014,
and August 31, 2013, these cash contributions were allocated to the pension plan investments in accordance with
the targeted asset allocation.
In August 2014, the Company’s Investment Committee approved a revised asset allocation target for the
investments held by the pension plan. Based on the revised asset allocation target, the expected long-term rate of
return on plan assets changed from 7.5% for the year ended August 30, 2014, to 7.0% for the year ending August
29, 2015.
The change in fair value of Level 3 assets that use significant unobservable inputs is presented in the following
table:
(in thousands)
Level 3
Assets
Beginning balance – August 31, 2013 ......................................................................................... $ 1,226
Actual return on plan assets:
Assets held at August 30, 2014 ................................................................................................ (25)
Assets sold during the year ....................................................................................................... (11)
Sales and settlements ................................................................................................................... (387)
Ending balance – August 30, 2014 .............................................................................................. $ 803
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