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SEC Filings

10-K
GRAHAM HOLDINGS CO filed this Form 10-K on 02/23/2018
Entire Document
 


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, 2017. 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, 2017 and 2016, the pension plan held investments in one common stock and one U.S. stock index fund that exceeded 10% of total plan assets. These investments were valued at $1,079.3 million and $978.8 million at December 31, 2017 and 2016, respectively, or approximately 46% and 48%, 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, 2017
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Total
Cash equivalents and other short-term investments
$
73,877

 
$
181,638

 
$

 
$
255,515

Equity securities
 
 
 
 
 
 
 
U.S. equities
1,242,139

 

 

 
1,242,139

International equities
138,640

 

 

 
138,640

U.S. stock index fund

 

 
706,202

 
706,202

Total Investments
$
1,454,656

 
$
181,638

 
$
706,202

 
$
2,342,496

Receivables
 
 
 
 
 
 
975

Total
 
 
 
 
 
 
$
2,343,471

 
As of December 31, 2016
(in thousands)
Level 1
 
Level 2
 
Level 3
 
Total
Cash equivalents and other short-term investments
$
61,438

 
$
162,010

 
$

 
$
223,448

Equity securities
 
 
 
 
 
 
 
U.S. equities
1,074,528

 

 

 
1,074,528

International equities
120,735

 

 

 
120,735

U.S. stock index fund

 

 
622,865

 
622,865

Total Investments
$
1,256,701

 
$
162,010

 
$
622,865

 
$
2,041,576

Receivables
 
 
 
 
 
 
914

Total
 
 
 
 
 
 
$
2,042,490

Cash equivalents and other short-term investments.  These investments are primarily held in U.S. Treasury securities and registered money market funds. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the valuation hierarchy.
U.S. equities.  These investments are held in common and preferred stock of U.S. corporations and American Depositary Receipts (ADRs) traded on U.S. exchanges. Common and preferred shares and ADRs are traded actively on exchanges, and price quotes for these shares are readily available. These investments are classified as Level 1 in the valuation hierarchy.
International equities.  These investments are held in common and preferred stock issued by non-U.S. corporations. Common and preferred shares are traded actively on exchanges, and price quotes for these shares are readily available. These investments are classified as Level 1 in the valuation hierarchy.
U.S. stock index fund. This fund consists of investments held in a diversified mix of securities (U.S. and international stocks, and fixed-income securities) and a combination of other collective funds that together are designed to track the performance of the S&P 500 Index. The fund is valued using the net asset value (NAV) provided by the administrator of the fund and reviewed by the Company. The NAV is based on the value of the underlying assets owned by the fund, minus liabilities and divided by the number of units outstanding. The investment in this fund may be redeemed daily, subjected to the restrictions of the fund. This investment is classified as Level 3 in the valuation hierarchy.

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