Graco 2012 Annual Report Download - page 86

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80
In January 2013, the Company contributed $100 million to its primary U.S. pension plan. The Company expects to make additional
cash contributions of approximately $10 million and $22 million to its domestic and international defined benefit pension plans,
respectively, in 2013.
Plan Assets
Current Allocation
The fair value of each major category of pension plan assets as of December 31, 2012 and 2011 is as follows (in millions):
U.S. International
Quoted Prices
in Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total
% of Total Assets
as of December 31,
Quoted Prices
in Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total
% of Total Assets
as of December 31,
2012 (Level 1) (Level 2) (Level 3) 2012 2011 (Level 1) (Level 2) (Level 3) 2012 2011
Equity (1), (7)
U.S. large cap $ 41.0 $ 108.0 $ — $ 149.0 $ 4.9 $ 6.5 $ — $ 11.4
U.S. small cap 27.0 — — 27.0 5.5 3.2 — 8.7
International 28.7 105.0 — 133.7 8.3 29.5 — 37.8
Total equity 96.7 213.0 — 309.7 44% 40% 18.7 39.2 — 57.9 12% 11%
Fixed income (2), (7)
U.S. Treasury 46.4 10.9 — 57.3 — 2.0 — 2.0
Other government 26.2 28.2 — 54.4 — 59.0 — 59.0
Asset-backed securities — 14.7 — 14.7 — — — —
Corporate bonds 133.0 30.8 — 163.8 — 41.6 — 41.6
Short-term investments 2.8 6.3 — 9.1 — — — —
Total fixed income 208.4 90.9 — 299.3 42 45 — 102.6 — 102.6 20 19
Insurance contracts (3) — 16.6 — 16.6 2 3 — 228.6 — 228.6 46 37
Venture capital and
partnerships (4) — — 47.5 47.5 7 7 — 25.5 0.3 25.8 5 5
Real estate (5) — — 25.0 25.0 4 4 — 3.6 2.7 6.3 1 2
Cash and cash equivalents (6) — 6.0 — 6.0 1 1 32.9 32.5 — 65.4 13 14
Derivatives (8) — — — — — — — (27.8) — (27.8) (6) —
Commodity funds (9) — — — — — — 18.3 4.3 — 22.6 5 —
Other — 3.0 — 3.0 — — — 20.5 — 20.5 4 12
Total $ 305.1 $ 329.5 $ 72.5 $ 707.1 100% 100% $ 69.9 $ 429.0 $ 3.0 $ 501.9 100% 100%
U.S. International
Quoted Prices
in Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total
% of Total Assets
as of December 31,
Quoted Prices
in Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total
% of Total Assets
as of December 31,
2011 (Level 1) (Level 2) (Level 3) 2011 2010 (Level 1) (Level 2) (Level 3) 2011 2010
Equity (1), (7)
U.S. large cap $ 70.8 $ 50.4 $ — $ 121.2 $ 8.2 $ 1.7 $ — $ 9.9
U.S. small cap 23.1 — — 23.1 — — — —
International 25.6 84.0 — 109.6 42.0 3.1 — 45.1
Total equity 119.5 134.4 — 253.9 40% 50% 50.2 4.8 — 55.0 11% 30%
Fixed income (2), (7)
U.S. Treasury 56.3 15.7 — 72.0 — — — —
Other government 16.9 14.1 — 31.0 32.3 — — 32.3
Asset-backed securities — 17.4 — 17.4 — — — —
Corporate bonds 117.0 41.7 — 158.7 52.5 6.1 — 58.6
Short-term investments — 7.2 — 7.2 — — — —
Total fixed income 190.2 96.1 — 286.3 45 36 84.8 6.1 — 90.9 19 21
Insurance contracts (3) — 18.4 — 18.4 3 3 — 178.5 — 178.5 37 24
Venture capital and
partnerships (4) — 1.8 46.0 47.8 7 7 17.6 5.5 0.3 23.4 5 9
Real estate (5) — — 22.7 22.7 4 3 3.5 — 5.6 9.1 2 2
Cash and cash equivalents (6) — 5.8 — 5.8 1 1 68.4 0.1 — 68.5 14 9
Other — — — — — — 18.9 40.2 — 59.1 12 5
Total $ 309.7 $ 256.5 $ 68.7 $ 634.9 100% 100% $ 243.4 $ 235.2 $ 5.9 $ 484.5 100% 100%
(1) Equity securities primarily comprise mutual funds and common/collective trust funds. Investments in mutual funds and common/collective trust funds are valued at the net asset value per share or unit
multiplied by the number of shares or units held as of the measurement date. The common/collective trust funds are generally actively managed investment vehicles.
(2) Fixed income investments primarily comprise mutual funds and common/collective trust funds that invest in corporate and government bonds. Investments in mutual funds and common/collective trust
funds are valued at the net asset value per share or unit multiplied by the number of shares or units held as of the measurement date. The investments in fixed income securities include both actively managed
funds and index funds.
(3) The fair values of insurance contracts are estimated based on the future cash flows to be received under the contracts discounted to the present using a discount rate that approximates the discount rate used
to measure the associated pension plan liabilities.
(4) Venture capital and partnerships are valued at net asset value, which is generally calculated using the most recent partnership financial reports.