Washington Post 2015 Annual Report Download - page 127

Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio
made up of a relatively small number of stocks and high-quality fixed-income securities that are held by a third-
party trustee. The assets of the Company’s pension plans were allocated as follows:
As of December 31
2015 2014
U.S. equities ......................................... 62% 59%
U.S. fixed income .................................... 13% 13%
International equities .................................. 25% 28%
100% 100%
Essentially all of the assets are actively managed by two investment companies. The goal of the investment
managers is to produce moderate long-term growth in the value of these assets, while protecting them against
large decreases in value. Both of these managers may invest in a combination of equity and fixed-income
securities and cash. The managers are not permitted to invest in securities of the Company or in alternative
investments. The investment managers cannot invest more than 20% of the assets at the time of purchase in the
stock of Berkshire Hathaway or more than 10% of the assets at the time of purchase in the securities of any other
single issuer, except for obligations of the U.S. Government, without receiving prior approval by the Plan
administrator. As of December 31, 2015, the managers can invest no more than 24% of the assets in international
stocks, at the time the investment is made, and no less than 10% of the assets could be invested in fixed-income
securities. None of the assets is managed internally by the Company.
In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan
assets, the historical performance of total plan assets and individual asset classes and economic and other
indicators of future performance. In addition, the Company may consult with and consider the input of financial
and other professionals in developing appropriate return benchmarks.
The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant
concentrations (defined as greater than 10% of plan assets) of credit risk as of December 31, 2015. Types of
concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity,
type of industry, foreign country and individual fund. At December 31, 2015 and 2014, the pension plan held
common stock in two investments that exceeded 10% of total plan assets. These investments were valued at
$562.6 million and $730.6 million at December 31, 2015 and 2014, respectively, or approximately 25% and
30%, respectively, of total plan assets. At December 31, 2015 and 2014, the pension plan held investments in one
foreign country that exceeded 10% of total plan assets. These investments were valued at $332.4 million and
$468.0 million at December 31, 2015 and 2014, respectively, or approximately 15% and 19%, respectively, of
total plan assets.
The Company’s pension plan assets measured at fair value on a recurring basis were as follows:
As of December 31, 2015
(in thousands) Level 1 Level 2 Total
Cash equivalents and other short-term investments ...... $ 256,364 $33,909 $ 290,273
Equity securities
U.S. equities ................................... 1,378,158 – 1,378,158
International equities ........................... 564,263 – 564,263
Total Investments .................................. $2,198,785 $33,909 $2,232,694
Receivables ....................................... 1,574
Total ............................................. $2,234,268
2015 FORM 10-K 112