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Table of Contents

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________________________________
FORM 11-K 
_____________________________________________
Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934
(Mark One)
 
 
R
 
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
 
 
For the fiscal year ended: December 31, 2015
 
 
 
OR
 
 
 
o
 
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
 
 
For the transition period from to .
Commission file number 001-16583
_____________________________________________


A.
Full title of the plans and the address of the plans, if different from that of the Issuer named below:
 
 
 
Acuity Brands, Inc. 401(k) Plan
 
Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
 
Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement
B.
Name of issuer of the securities held pursuant to the plans and the address of the Principal executive office:
 
 
 
Acuity Brands, Inc.
 
1170 Peachtree Street, NE
 
Suite 2300
 
Atlanta, Georgia 30309

 


Table of Contents


Acuity Brands, Inc.
Selected 401(k) and Retirement Plans
Audited Financial Statements and Supplemental Schedule
As of December 31, 2015 and 2014 and for the year ended December 31, 2015
Contents
 
 
 
Audited Financial Statements
 
 
 
Supplemental Schedule
 



Table of Contents

Report of Independent Registered Public Accounting Firm
To the Plan Administrator
Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Atlanta, GA

We have audited the accompanying statements of net assets available for benefits of Acuity Brands, Inc. 401(k) Plan, Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees, and Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement (“Plans”) as of December 31, 2015 and 2014, and the related statements of changes in net assets available for benefits for the year ended December 31, 2015. These financial statements are the responsibility of the Plans' management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plans are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plans' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plans as of December 31, 2015 and 2014, and the changes in net assets available for benefits for the year ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America.
 
The accompanying supplemental Schedule H, Line 4i Schedule of Assets (Held at End of Year) as of December 31, 2015 has been subjected to audit procedures performed in conjunction with the audit of the Plans’ financial statements. The supplemental schedule is the responsibility of the Plans’ management. Our audit procedures included determining whether the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedule is fairly stated, in all material respects, in relation to the financial statements as a whole.


/s/ BDO USA, LLP

Atlanta, Georgia
June 28, 2016

1

Table of Contents



Acuity Brands, Inc. Selected 401(k) and Retirement Plans

Statements of Net Assets Available for Benefits

As of December 31, 2015

 
 
Acuity Brands, Inc. 401(k) Plan
 
Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
 
Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement
 Filing Plan No.
 
033
 
067
 
070
Assets:
 
 
 
 
 
 
Plan interest in Acuity DC Trust
 
$
254,534,117

 
$
7,067,058

 
$
17,395,783

Receivables:
 
 
 
 
 
 
Employer contribution
 
236,110

 

 

Notes receivable from participants
 
2,151,109

 
196,762

 
593,462

 Total Assets
 
256,921,336

 
7,263,820

 
17,989,245

 Liabilities:
 
 
 
 
 
 
 Accrued expenses
 
63,735

 
1,802

 
4,463

Net assets available for benefits
 
$
256,857,601

 
$
7,262,018

 
$
17,984,782

 
 
 
 
 
 
 
Plan interest percentage in Acuity DC Trust
 
91.0
%
 
2.6
%
 
6.4
%
The accompanying notes are an integral part of these financial statements.


2

Table of Contents

Acuity Brands, Inc. Selected 401(k) and Retirement Plans

Statements of Net Assets Available for Benefits
As of December 31, 2014
 
 
Acuity Brands, Inc. 401(k) Plan
 
Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
 
Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement
 Filing Plan No.
 
033
 
067
 
070
Assets:
 
 
 
 
 
 
Plan interest in Acuity DC Trust
 
$
247,353,446

 
$
7,204,260

 
$
18,923,603

Receivables:
 
 
 
 
 
 
Employer contribution
 
1,095

 

 
414

Participant contributions
 
363

 
67

 
31

Notes receivable from participants
 
2,358,541

 
156,542

 
469,140

 Total Assets
 
249,713,445

 
7,360,869

 
19,393,188

 Liabilities:
 
 
 
 
 
 
 Accrued expenses
 
63,191

 
1,863

 
4,946

Net assets available for benefits
 
$
249,650,254

 
$
7,359,006

 
$
19,388,242

 
 
 
 
 
 
 
Plan interest percentage in Acuity DC Trust
 
90.4
%
 
2.6
%
 
7.0
%
The accompanying notes are an integral part of these financial statements.


3

Table of Contents

Acuity Brands, Inc. Selected 401(k) and Retirement Plans

Statements of Changes in Net Assets Available for Benefits

Year Ended December 31, 2015
 
 
Acuity Brands, Inc. 401(k) Plan
 
Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
 
Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement
Filing Plan No.
 
033
 
067
 
070
Additions to net assets attributed to:
 
 
 
 
 
 
Net investment gain from Acuity DC Trust
 
$
8,260,789

 
$
191,110

 
$
471,541

Contributions:
 
 
 
 
 
 
Employer
 
5,257,468

 
39,233

 
275,651

Participant
 
15,228,089

 
419,861

 
390,249

Total additions
 
28,746,346

 
650,204

 
1,137,441

 
 
 
 
 
 
 
Deductions from net assets attributed to:
 
 
 
 
 
 
Benefit payments
 
21,301,577

 
696,388

 
2,519,599

Expenses
 
237,055

 
51,171

 
21,302

Total deductions
 
21,538,632

 
747,559

 
2,540,901

 
 
 
 
 
 
 
Net increase (decrease)
 
7,207,714

 
(97,355
)
 
(1,403,460
)
 
 
 
 
 
 
 
Plan transfers in (out), net
 
(367
)
 
367

 

 
 
 
 
 
 
 
Net assets available for benefits:
 
 
 
 
 
 
Beginning of year
 
249,650,254

 
7,359,006

 
19,388,242

End of year
 
$
256,857,601

 
$
7,262,018

 
$
17,984,782

The accompanying notes are an integral part of these financial statements.

4

Table of Contents
Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Notes to Financial Statements



1.
Description of the Plans
General
The financial positions of Acuity Brands, Inc. 401(k) Plan (the "ABI Plan"), Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees (the "ABL Plan"), and Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement (the "Holophane Plan") (collectively, the “Plans”) are included in the accompanying financial statements. The investment assets of the Plans are included in the Acuity Brands, Inc. Defined Contribution Plans Master Trust (the “Acuity DC Trust”). The Plans are subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
Refer to the respective plan agreement for additional information about the Plans' eligibility, funding, allocation, vesting, and benefit provisions.
Eligibility and Forfeitures
Each of the Plans is a defined contribution plan. The Plans cover substantially all domestic salaried, commissioned, union and non-union hourly employees of Acuity Brands, Inc. and its subsidiaries (“Acuity Brands” or the "Company”). Employees of certain unions who have elected not to participate in such Plans are not eligible to participate.
Employees have immediate eligibility upon attaining the age requirement of each respective plan. The Plans provide that forfeitures of Company contributions may be used to pay plan administrative expenses or reduce future Company contributions. At December 31, 2015 and 2014, forfeited nonvested accounts totaled $32,140 and $326,835, respectively. During the year ended December 31, 2015, employer contributions were reduced by forfeited nonvested accounts of $608,286. Employer contributions were not reduced by forfeited nonvested accounts during the year ended December 31, 2014. Plan expenses totaling $89,576 were paid using forfeited nonvested accounts during the year ended December 31, 2015.
In the event of the cessation of operation of a plant or the discontinuance of a component of the Company's business, plan participants identified for separation from the Company shall automatically become fully vested in employer contributions upon termination.
Administration
Administration of the Plans is the responsibility of the Company's Investment Committee, members of which are designated by the Chairman, President, and Chief Executive Officer of Acuity Brands, Inc. Certain administrative expenses of the Plans were paid by either the Company or plan forfeitures during the year ended December 31, 2015. The Investment Committee determines the appropriateness of the Plan's investment offerings and monitors investment performance.
Notes Receivable from Participants
Participant loans are reflected as notes receivable from participants on the Statements of Net Assets Available for Benefits. Participants may borrow the lesser of 50% of their vested balance or $50,000 (reduced by the participant's highest outstanding loan balance from the twelve months prior to the loan request). Participants agree to loan repayment terms upon endorsement of the borrowed funds. Only one outstanding general-purpose loan and one residence loan, a loan issued for the purchase of a primary residence, are permitted during a calendar year. The Holophane Plan is the only plan which allows for residential loans. The loan interest rate is set at one percent above the prime rate, as defined.
Loan repayments must be substantially equal in amount over the term of the loan and must be made by payroll deduction on an after-tax basis. General-purpose loans must be repaid within five years and residential loans must be repaid within ten years.
Loan repayments may be suspended, at the discretion of the Company, for a period of not more than twelve months if a participant is on unpaid leave of absence, disability, or military service. Upon return, the loan will be amortized over the remaining initial loan repayment period.
Plan Termination
Although the Company intends for the Plans to be permanent, the Plan agreements provide the Company the right to discontinue contributions or to terminate the Plans at any time and to terminate the plan subject to the provisions of ERISA.
In the event of a plan termination, each respective participant shall be 100% vested in the balance of his/her account and his/her proportionate share of any future adjustments or forfeitures.

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Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Notes to Financial Statements


Parties-In-Interest Transactions
As of December 31, 2015 and 2014, the percentage of the Acuity DC Trust's net assets invested in the common stock of Acuity Brands, Inc. was 7.1% and 4.6%, respectively. As described in Note 2 Summary of Accounting Policies, the Plans paid certain expenses related to plan operations and investment activity to various service providers. These transactions are party-in-interest transactions under ERISA.
Vesting
Participants are vested immediately in their contributions and the related earnings. Participants in the ABI Plan and the ABL Plan vest in the Company's contributions to their accounts ratably over a five-year service period. Participants in the Holophane Plan vest in the Company's contributions to their accounts immediately upon the third anniversary of their hire date.
Payments of Benefits
On termination of service due to death, disability or retirement, a participant may elect to receive either a lump sum amount equal to the value of the participant's vested interest in his or her account, or annual installments over a 10-year period. For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account as a lump sum distribution.
Participant Accounts
Each participant’s account is credited with the participant’s contributions and Company matching contributions, as well as the applicable portion of net earnings/losses generated by the investment fund(s) selected by the participant. Net earnings/losses for each investment fund consist of both realized and unrealized gross earnings/losses which are adjusted to incorporate fund management expenses specific to each investment fund. Many of the investment funds provide for a revenue sharing arrangement with the Plans that provides for a portion of the fund expenses to be credited to the Plans to pay for certain administrative expenses that are incurred by the Plans. Fees related to the administration of notes receivable from participants are charged directly to the participant's account. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
Contributions
The basis for determining participant and Company contributions is as follows:
Plan Name
Participant Contributions
Employer Contributions
Acuity Brands, Inc. 401(k) Plan
1% to 50% of compensation
Matching contribution of 60% up to 6% of participant compensation contributed.
New hires are automatically enrolled at 3% contribution to the plan.
Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
1% to 25% of compensation
Teamsters Local Union 673 - Through December 14, 2014, Midwest Regional Warehouse employees receive an employer contribution equal to $0.17 per hour worked regardless of whether they made participant deferrals into the plan. Beginning December 15, 2014, Midwest Regional Warehouse employees have a matching contribution of 60% up to 6% of participant compensation contributed.
 
 
Non-union hourly employees have a matching contribution of 60% up to 6% of participant compensation contributed. All other employees at all other locations participating in the plan do not receive an employer contribution.
Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement
1% to 25% of compensation
USW Local Nos. 4, 105 and 525 - Participating employees hired prior to August 5, 2002 receive an employer matching contribution of 30% up to 6% of compensation contributed, plus an additional basic contribution of 5% of annual compensation. Participating employees hired on or after August 5, 2002 receive an employer matching contribution of 60% up to 6% of compensation contributed.
Under all of the Plans, participants direct the investment of their contributions into various investment options offered by the Plans. Additionally, participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants may also contribute amounts representing distributions from other qualified plans. Effective October 2013, an amendment was executed to allow elective Roth contributions in the Plans. Contributions are subject to certain IRS limitations.

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Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Notes to Financial Statements


2.
Summary of Accounting Policies
Basis of Accounting
The accompanying financial statements are prepared on the accrual method of accounting.
Investments
The investments in the Acuity DC Trust are subject to certain administrative guidelines and limitations as to the type and amount of securities held. Fund assets are allocated to selected independent investment managers to invest under these guidelines.
Investments of the Acuity DC Trust are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Refer to Note 3 Acuity DC Trust and Note 5 Fair Value Measurements for further discussion.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the dividend date. Net appreciation includes the Plans' gains and losses on investments bought and sold as well as held during the year.

The Acuity DC Trust holds investments in the Invesco Stable Value Fund, which holds synthetic guaranteed investment contracts (“synthetic GICs” or “wrap contracts”) and a diversified portfolio of investments, including units of collective trust funds held in the name of the Acuity DC Trust. The collective trust funds invest in high-quality bonds, including corporate bonds, mortgage-backed securities, asset-backed securities, and government securities. The synthetic GICs or wrap contracts have features that provide for variable interest crediting rates which are credited to the contract value of the contracts' underlying holdings. The investments in synthetic GICs are deemed to be fully benefit-responsive and are recorded at contract value.
Contract value represents contributions made under the contract, plus earnings, less member withdrawals and administrative expenses. Members may ordinarily direct the withdrawal and transfer of all or a portion of their investment at contract value. The crediting interest rate is based on a mutually agreed upon formula that resets on a monthly basis depending on the performance of the underlying investments being managed. The crediting interest rate will not be less than 0%.
Certain events limit the ability of the Plans to transact at contract value with the issuers. These events include, but are not limited to, the following: (1) amendments to the Plan documents that materially and adversely affect the risk borne by the contract issuer, unless otherwise approved by the issuers, (2) bankruptcy of the Plans' sponsor or other events which cause a significant withdrawal from the Plans, or (3) the failure of the Acuity DC Trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. Acuity Brands does not believe that the occurrence of any event limiting the Plans' ability to transact at contract value with the issuers has occurred or is probable.
The contract issuers can only terminate the contract under very limited circumstances, such as Acuity Brands or the investment fund managers breaching any of their material obligations under the agreement, or upon completion of specified periods of time following notice periods. Acuity Brands does not believe it is likely that the contracts will be terminated.
Notes Receivable from Participants
The notes receivable from participants represent participant loans, which are carried at principal amounts outstanding plus accrued but unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expense and are expensed when they are incurred. No allowance for credit losses has been recorded as of December 31, 2015 and 2014. If a participant ceases to make loan repayments and the Plan Administrator deems the participant loan to be in default, the participant loan balance is reduced and a benefit payment is recorded.
Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
Payments
Benefit payments are recorded when paid.

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Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Notes to Financial Statements


Expenses
Investment related expenses are included in net appreciation of fair value of investments. Many of the investment funds provide for a revenue sharing arrangement with the Plans that provides for a portion of the fund expenses to be credited to the Plans to pay for certain administrative expenses that are incurred by the Plans, such as record keeping and investment advisory fees. Certain expenses of maintaining the Plans are paid directly by the Company and are excluded from these financial statements. Fees related to the administration of notes receivable from participants and certain administrative fees are charged directly to the participant's account and are included in administrative expenses.
Accounting Standards Adopted in 2015
The FASB issued Accounting Standards Update (ASU) No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) ("ASU 2015-07"). It is effective for fiscal years beginning after December 15, 2015, and the Company has early adopted the ASU on a retrospective basis. The amendments apply to reporting entities that elect to measure the fair value of an investment using the net asset value per share (or its equivalent) practical expedient. The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The provisions of ASU 2015-07 did not have a material effect on the Plans' net assets available for benefits or its changes in net assets available for benefits.

The FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts; (Part II) Plan Investment Disclosures; and (Part III) Measurement Date Practical Expedient ("ASU 2015-12"). It is effective for fiscal years beginning after December 15, 2015, and the Company has early adopted the ASU on a retrospective basis. Part I eliminates the requirement to measure the fair value of fully benefit-responsive investment contracts and provide certain disclosures. Part II eliminates the requirement to disclose individual investments that represent five percent or more of net assets available for benefits and the net appreciation or depreciation for investments by general type. It also simplifies the level of disaggregation of investments that are measured using fair value and removes the requirement to disaggregate the investments within a self-directed brokerage account. Part III permits plans to measure investments as of a month-end date that is closest to the plan's fiscal year-end when the fiscal period does not coincide with a month-end. The provisions of ASU 2015-12 did not have a material effect on the Plans' net assets available for benefits or its changes in net assets available for benefits; however, certain disclosures were affected as a result of adopting ASU No. 2015-12.
3.     Acuity DC Trust
The Acuity DC Trust is a collective investment of the assets of the Company's participating employee benefit plans. Trust assets are allocated among participating plans by assigning to each plan certain transactions (primarily contributions and benefit payments which can be specifically identified and distributed among all plans) in proportion to the fair value of the assets assigned to each plan, and income and expenses resulting from the collective investment of the Trust assets. For the year ended December 31, 2015, total interest income and net appreciation in investments were $1,303,347 and $7,620,093, respectively. The fair value of net assets of the Acuity DC Trust as of December 31, 2015 and 2014 is presented below:







8

Table of Contents
Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Notes to Financial Statements


 
 
 
Plans' Percentage Interest
 
2015
 
Plan
 
Plan
 
Plan
 
Value
 
No. 033
 
No. 067
 
No. 070
Mutual Funds
 
 
 
 
 
 
 
Aberdeen Emerging Market
$
458,640

 
89.7
%
 
4.2
%
 
6.1
%
American Beacon Large Cap Value
14,128,196

 
91.9
%
 
2.1
%
 
6.0
%
Invesco International Growth Fund
438,256

 
99.4
%
 
0.6
%
 
%
JP Morgan Core Bond Fund
2,622,475

 
99.3
%
 
0.7
%
 
%
Northern Small Cap Value
8,076,609

 
95.3
%
 
2.6
%
 
2.1
%
T. Rowe Price Growth
14,612,521

 
92.2
%
 
2.1
%
 
5.7
%
T. Rowe Price Mid Cap
22,902,775

 
90.6
%
 
3.1
%
 
6.3
%
Templeton Institutional
8,051,250

 
94.7
%
 
2.0
%
 
3.3
%
Vanguard Explorer Admiral
10,958,637

 
89.1
%
 
2.3
%
 
8.6
%
Vanguard Extended Market Index
2,018,525

 
87.7
%
 
3.5
%
 
8.8
%
Vanguard Institutional Index
35,153,430

 
92.5
%
 
2.9
%
 
4.6
%
Vanguard Selected Value
9,579,910

 
96.4
%
 
2.3
%
 
1.3
%
Vanguard Total International Stock
2,630,362

 
89.0
%
 
3.5
%
 
7.5
%
Wells Fargo Target 2010
744,272

 
94.2
%
 
2.3
%
 
3.5
%
Wells Fargo Target 2015
2,334,953

 
93.7
%
 
3.7
%
 
2.6
%
Wells Fargo Target 2020
5,209,567

 
85.0
%
 
6.3
%
 
8.7
%
Wells Fargo Target 2025
9,424,347

 
90.7
%
 
4.7
%
 
4.6
%
Wells Fargo Target 2030
9,571,805

 
93.8
%
 
2.8
%
 
3.4
%
Wells Fargo Target 2035
6,733,344

 
92.2
%
 
7.0
%
 
0.8
%
Wells Fargo Target 2040
5,331,925

 
96.4
%
 
2.0
%
 
1.6
%
Wells Fargo Target 2045
3,845,011

 
98.5
%
 
1.5
%
 
%
Wells Fargo Target 2050
3,161,978

 
98.9
%
 
1.1
%
 
%
Wells Fargo Target 2055
906,493

 
97.1
%
 
2.7
%
 
0.2
%
Wells Fargo Target 2060
215

 
100.0
%
 
%
 
%
Wells Fargo Target Today
88,407

 
95.3
%
 
0.4
%
 
4.3
%
     Total Mutual Funds
178,983,903

 
 
 
 
 
 
Self-Directed Brokerage Accounts
21,893,148

 
97.3
%
 
%
 
2.7
%
Common Stock
 
 
 
 
 
 
 
Acuity Brands Stock Fund
19,900,875

 
96.0
%
 
1.6
%
 
2.4
%
Common/Collective Trusts
 
 
 
 
 
 
 
State Street US Bond Fund
9,297,831

 
94.3
%
 
2.7
%
 
3.0
%
Total Investments at fair value
230,075,757

 
 
 
 
 
 
Unallocated Cash
125,211

 
 
 
 
 
 
Accrued Investment Income
316

 
 
 
 
 
 
Adjustment for pending trades
300

 
 
 
 
 
 
Acuity DC Trust at fair value
230,201,584

 
 
 
 
 
 
Invesco Stable Value Fund
48,795,374

 
81.4
%
 
2.4
%
 
16.2
%
Plan Interest in Acuity DC Trust
278,996,958

 
 
 
 
 
 
Accrued expenses
(70,000
)
 
 
 
 
 
 
Net Assets
278,926,958

 
 
 
 
 
 
Notes Receivable from participants
2,941,333

 
 
 
 
 
 
Net Assets of the Acuity DC Trust
$
281,868,291

 
 
 
 
 
 

9

Table of Contents
Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Notes to Financial Statements


 
 
 
Plans' Percentage Interest
 
2014
 
Plan
 
Plan
 
Plan
 
Value
 
No. 033
 
No. 067
 
No. 070
Mutual Funds
 
 
 
 
 
 
 
American Beacon Large Cap Value
$
16,111,194

 
92.1
%
 
1.9
%
 
6.0
%
Northern Small Cap Value
11,359,636

 
95.8
%
 
2.6
%
 
1.6
%
T. Rowe Price Growth
13,187,528

 
90.7
%
 
2.0
%
 
7.3
%
T. Rowe Price Mid Cap
23,276,003

 
89.3
%
 
3.1
%
 
7.6
%
Templeton Institutional
12,248,327

 
94.6
%
 
2.1
%
 
3.3
%
Vanguard Explorer Admiral
12,218,000

 
88.2
%
 
2.2
%
 
9.6
%
Vanguard Institutional Index
35,779,576

 
91.9
%
 
2.9
%
 
5.2
%
Vanguard Selected Value
9,160,182

 
95.4
%
 
1.8
%
 
2.8
%
Wells Fargo Target 2010
807,176

 
89.1
%
 
8.1
%
 
2.8
%
Wells Fargo Target 2015
2,852,277

 
92.5
%
 
3.5
%
 
4.0
%
Wells Fargo Target 2020
6,078,412

 
79.7
%
 
7.0
%
 
13.3
%
Wells Fargo Target 2025
9,587,410

 
90.1
%
 
5.0
%
 
4.9
%
Wells Fargo Target 2030
8,574,083

 
93.4
%
 
3.0
%
 
3.6
%
Wells Fargo Target 2035
7,139,840

 
92.4
%
 
6.5
%
 
1.1
%
Wells Fargo Target 2040
5,105,958

 
96.5
%
 
2.1
%
 
1.4
%
Wells Fargo Target 2045
3,705,136

 
96.0
%
 
4.0
%
 
%
Wells Fargo Target 2050
2,599,831

 
98.5
%
 
1.5
%
 
%
Wells Fargo Target 2055
551,216

 
93.8
%
 
6.1
%
 
0.1
%
Wells Fargo Target Today
41,051

 
87.1
%
 
1.0
%
 
11.9
%
     Total Mutual Funds
180,382,836

 
 
 
 
 
 
Self-Directed Brokerage Accounts
19,565,826

 
95.4
%
 
%
 
4.6
%
Common Stock
 
 
 
 
 
 
 
Acuity Brands Stock Fund
12,746,224

 
96.0
%
 
1.7
%
 
2.3
%
Common/Collective Trusts
 
 
 
 
 
 
 
SSGA US Bond Index Fund CL P
9,940,038

 
95.4
%
 
2.2
%
 
2.4
%
Total Investments at fair value
222,634,924

 
 
 
 
 
 
Unallocated Cash
412,595

 
 
 
 
 
 
Accrued Investment Income
314

 
 
 
 
 
 
Adjustment for pending trades
450

 
 
 
 
 
 
Acuity DC Trust at fair value
223,048,283

 
 
 
 
 
 
Invesco Stable Value Fund
50,433,026

 
81.7
%
 
2.6
%
 
15.7
%
Plan Interest in Acuity DC Trust
273,481,309

 
 
 
 
 
 
Accrued expenses and other
(70,000
)
 
 
 
 
 
 
Net Assets
273,411,309

 
 
 
 
 
 
Notes Receivable from participants
2,984,223

 
 
 
 
 
 
Net Assets of the Acuity DC Trust
$
276,395,532

 
 
 
 
 
 


10

Table of Contents
Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Notes to Financial Statements


4.
Stable Value Fund
The following are the contract values of the synthetic investment contracts in the Stable Acuity Fund:
Contract Issuer
 
2015 Contract Value
 
Contract Issuer
 
2014 Contract Value
Synthetic GICs:
 
 
 
Synthetic GICs:
 
 
Voya
 
$
12,030,425

 
Voya
 
$
12,270,319

Mass Mutual
 
6,326,102

 
Mass Mutual
 
6,409,973

Transamerica
 
7,975,316

 
Transamerica
 
8,128,410

Prudential Insurance
 
10,039,683

 
Prudential Insurance
 
10,261,893

Pacific Life Insurance
 
11,135,483

 
Pacific Life Insurance
 
11,309,104

Subtotal
 
47,507,009

 
Subtotal
 
48,379,699

Cash -
 
 
 
Cash -
 
 
Bank of America Merrill Lynch
 
1,288,365

 
Bank of America Merrill Lynch
 
2,053,327

Total
 
$
48,795,374

 
Total
 
$
50,433,026

5.     Fair Value Measurements
In accordance with ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), the Plans determine a fair value measurement using an exit price based on the assumptions a market participant would use in pricing an asset or liability. ASC 820 established a three-tiered hierarchy making a distinction between market participant assumptions based on (i) observable inputs such as quoted prices in active markets (Level 1), (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2), and (iii) unobservable inputs that reflect the Plans' best estimate of what market participants would use in pricing an asset or liability including consideration of the risk inherent in the valuation technique and the risk inherent in the inputs to the model (Level 3).
Level 1 (Quoted market prices in active markets for identical assets)
Acuity Brands Stock Fund - valued at the last sales price in the market where such securities are primarily traded. If the last sales price is not available, the security is generally valued at the closing bid price obtained from the primary exchange.
Mutual Funds - valued using the net asset value of shares held at year end as reported by the fund. Mutual funds held by the Acuity DC Trust are open-end mutual funds that are registered with the Securities and Exchange Commission.
Self-Directed Brokerage Accounts - valued at the closing price reported by the fund or in the market where such investments are primarily traded.
The following tables present information about the Acuity DC Trust's assets as of December 31, 2015 and 2014:
 
 
Fair Value Measurements as of:
 
 
December 31, 2015
 
December 31, 2014
 
 
Total Fair Value
 
Level 1
 
Total Fair Value
 
Level 1
Acuity Brands Stock Fund
 
$
19,900,875

 
$
19,900,875

 
$
12,746,224

 
$
12,746,224

Mutual Funds
 
178,983,903

 
178,983,903

 
180,382,836

 
180,382,836

Self-Directed Brokerage Accounts
 
21,893,148

 
21,893,148

 
19,565,826

 
19,565,826

Common/Collective Trusts (1)
 
9,297,831

 
N/A

 
9,940,038

 
N/A

Total Investments at Fair Value
 
$
230,075,757

 
 
 
$
222,634,924

 
 
 
 
 
 
 
 
 
 
 
(1) There are currently no redemption restrictions or unfunded commitments on these investments. Generally, redemptions of the fund units for investments in this category may be made each business day, based upon a transaction price per unit that is substantially equivalent to net asset value per share as of the close of the previous business day.
No transfers between the levels of the fair value hierarchy occurred during the current plan year. In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized as of the end of the plan year.

11

Table of Contents
Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Notes to Financial Statements


6.
Income Tax Status

The ABI Plan, ABL Plan, and Holophane Plan obtained their latest determination letters on August 12, 2013, July 10, 2013, and May 29, 2014, respectively, in which the IRS stated these plans are qualified under Section 401(a) of Internal Revenue Code ("IRC"). The Plans have been amended since requesting the latest determination letters and the plan administrator believes the Plans are currently designed and being operated in compliance with the applicable requirements of the IRC, and the Plans and related trust continue to be tax-exempt. Therefore, no provision for income taxes is included in these financial statements.
Accounting principles generally accepted in the United States of America require plan management to evaluate uncertain tax positions taken by the Plans. The financial statement impact of a tax position is recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plans, and has concluded that as of December 31, 2015, there are no uncertain positions taken or expected to be taken. The Plans have recognized no interest or penalties related to uncertain tax positions. The Plans are subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.
7.
Benefits Payable
The following Plans had benefit payments that were approved for payment prior to December 31, but were not paid until subsequent to December 31:
Plan No.
 
Plan Name
 
2015
 
2014
033
 
Acuity Brands, Inc. 401(k) Plan
 
$

 
$
297,158

067
 
Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
 
125,211

 

070
 
Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement
 

 
112,437

These benefit payments represent a reconciling item between the financial statements and Form 5500. The Form 5500 has not yet been finalized. As such, the differences may vary from those noted above. However, these differences are not expected to be material.
8.
Risks and Uncertainties
The Plans invest in various investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the Statements of Net Assets Available for Benefits.


12

Table of Contents

Acuity Brands, Inc.
Selected 401(k) and Retirement Plans
Schedule H, Line 4i
Schedule of Assets (Held at End of Year)
December 31, 2015
Plan Name
 
Plan No.
 
EIN #
 
Identity of Issue *
 
Description of Investment Varying Maturity Dates and Interest Rates Ranging from:
 
Cost
 
Current Value
Acuity Brands, Inc. 401(k) Plan
 
033
 
58-2632672
 
Participant Loans
 
4.25% to 9.25%
(various maturity dates)
 
$

 
$
2,151,109

Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
 
067
 
58-2632672
 
Participant Loans
 
4.25% to 5%
(various maturity dates)
 

 
196,762

Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement
 
070
 
58-2632672
 
Participant Loans
 
4.25%
(various maturity dates)
 

 
593,462

___________________________________________
*    Represents a party-in-interest


13

Table of Contents

EXHIBIT INDEX

Exhibit Number
 
Description
23.1

 
Consent of BDO USA, LLP


14

Table of Contents


Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plans) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: June 28, 2016
                        
Acuity Brands, Inc. 401(k) Plan
Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement
 
 
 
By:
 
Acuity Brands, Inc.
 
 
Plan Administrator
 
 
By:
 
/s/ Vernon J. Nagel
Name:
 
Vernon J. Nagel
Title:
 
Chairman, President and Chief Executive Officer


Exhibit


Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
 
Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Atlanta, Georgia
 
We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (File no. 333-74242 and 333-123999) of Acuity Brands, Inc. of our report dated June 28, 2016, relating to the financial statements and supplemental schedule of Acuity Brands, Inc. 401(k) Plan, Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees, and Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement which appear in this Form 11-K for the year ended December 31, 2015.
 
/s/ BDO USA, LLP
Atlanta, GA
 
June 28, 2016