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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)
 
 
þ
 
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
 
 
For the fiscal year ended: December 31, 2017
 
 
 
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, 2017 and 2016 and for the year ended December 31, 2017
Contents
 
 
 
Audited Financial Statements
 
 
 
Supplemental Schedule
 
 
 



Table of Contents

Report of Independent Registered Public Accounting Firm
To the Plan Administrator and Participants,
Acuity Brands, Inc. Selected 401(k) and Retirement Plans
Atlanta, GA
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of the Acuity Brands, Inc. 401(k) Plan, the Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees and the Holophane Division of Acuity Brands Lighting 401(k) Plan for Hourly Employees Covered by a Collective Bargaining Agreement (the “Plans”) as of December 31, 2017 and 2016, the related statements of changes in net assets available for benefits for the year ended December 31, 2017, and the related notes (collectively, the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plans as of December 31, 2017 and as of December 31, 2016, and the changes in net assets available for benefits for the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plans’ management. Our responsibility is to express an opinion on the Plans financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plans in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plans are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.
Our audits included performing procedures to assess the risk of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by the Plans’ management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Supplemental Information
The supplemental information in the accompanying Schedule H, Line 4i Schedule of Assets (Held at End of Year) as of December 31, 2017, has been subjected to audit procedures performed in conjunction with the audit of the Plans’ financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but included supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plans’ management. Our audit procedures included determining whether the supplemental information 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 information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, 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 information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ BDO USA, LLP
We have served as the Plans’ auditor since 2012.
Atlanta, Georgia
June 29, 2018

1

Table of Contents



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

Statements of Net Assets Available for Benefits

As of December 31, 2017

 
 
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
 
$
316,579,745

 
$
15,662,439

 
$
18,103,564

Receivables:
 
 
 
 
 
 
Employer contributions
 
337,365

 
11,742

 
14,121

Participant contributions
 
925,120

 
41,635

 
22,017

Notes receivable from participants
 
3,491,519

 
1,281,480

 
393,914

 Total Assets
 
321,333,749

 
16,997,296

 
18,533,616

 Liabilities:
 
 
 
 
 
 
 Accrued expenses
 
64,834

 
3,428

 
3,738

Net assets available for benefits
 
$
321,268,915

 
$
16,993,868

 
$
18,529,878

 
 
 
 
 
 
 
Plan interest percentage in Acuity DC Trust
 
90.0
%
 
4.8
%
 
5.2
%
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, 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
 Filing Plan No.
 
033
 
067
 
070
Assets:
 
 
 
 
 
 
Plan interest in Acuity DC Trust
 
$
276,844,496

 
$
14,389,218

 
$
17,937,818

Receivables:
 
 
 
 
 
 
Employer contributions
 
245,566

 

 

Notes receivable from participants
 
2,858,544

 
1,010,548

 
462,701

 Total Assets
 
279,948,606

 
15,399,766

 
18,400,519

 Liabilities:
 
 
 
 
 
 
 Accrued expenses
 
69,598

 
3,828

 
4,574

Net assets available for benefits
 
$
279,879,008

 
$
15,395,938

 
$
18,395,945

 
 
 
 
 
 
 
Plan interest percentage in Acuity DC Trust
 
89.2
%
 
4.9
%
 
5.9
%
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, 2017
 
 
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
 
$
38,648,956

 
$
1,936,180

 
$
1,770,029

Contributions:
 
 
 
 
 
 
Employer
 
6,256,412

 
298,341

 
292,479

Participant
 
17,608,916

 
1,060,099

 
459,454

Total additions
 
62,514,284

 
3,294,620

 
2,521,962

Deductions from net assets attributed to:
 
 
 
 
 
 
Benefit payments
 
20,798,062

 
1,603,414

 
2,316,897

Expenses
 
399,950

 
71,974

 
18,799

Total deductions
 
21,198,012

 
1,675,388

 
2,335,696

Net increase
 
41,316,272


1,619,232


186,266

Plan transfers in (out), net
 
73,635

 
(21,302
)
 
(52,333
)
Net assets available for benefits:
 
 
 
 
 
 
Beginning of year
 
279,879,008

 
15,395,938

 
18,395,945

End of year
 
$
321,268,915


$
16,993,868


$
18,529,878

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

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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 the Acuity Brands, Inc. 401(k) Plan (the "ABI Plan"), the Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees (the "ABL Plan"), and the 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, and 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, 2017 and 2016, forfeited nonvested accounts totaled $180,233 and $45,488, respectively. Employer contributions were reduced by forfeited nonvested accounts of $580,675 and $400,403 during the years ended December 31, 2017 and 2016, respectively. Plan expenses totaling $598 were paid using forfeited nonvested accounts during the year ended December 31, 2017.
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, 2017. 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. Participants within the ABI and ABL Plans may have up to two outstanding general-purpose loans during a calendar year, and participants within the Holophane Plan may have outstanding one general-purpose loan and one residential loan issued for the purchase of a primary residence during a calendar year. 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.

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


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 subject to the provisions of ERISA.
In the event of a plan termination, participants shall be 100% vested in the balance of their accounts and their proportionate share of any future adjustments or forfeitures.
Parties-In-Interest Transactions
As of December 31, 2017 and 2016, the percentage of the Acuity DC Trust's net assets invested in the common stock of Acuity Brands, Inc. was 3.4% and 5.5%, 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, participants may elect to receive either a lump sum amount equal to the value of the vested interest in their accounts, or annual installments over a ten year period. For termination of service for other reasons, participants may receive the value of the vested interest in their accounts 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. Certain 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. 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 are charged directly to the participant's account. Participants are entitled to the benefits that can be provided from their vested accounts.

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


Contributions
The basis for determining participant and Company contributions is outlined in the following table:
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 - Midwest Regional Warehouse and IBEW Local 481 - Sunoptics employees have a matching contribution of 60% up to 6% of participant compensation contributed.
 
 
CMRJB - Des Plaines facility employees have a matching contribution of 50% up to 5% of participant compensation contributed.
 
 
IBEW Local 481 - Fishers facility employees have a matching contribution of 100% up to 3% 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.
2.
Summary of Accounting Policies
Basis of Accounting
The accompanying financial statements are prepared on the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
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, except for fully benefit-responsive investment contracts, which are recorded at contract 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") 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 have features that provide for variable interest crediting rates that 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

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


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 that would 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, 2017 and 2016. 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 U.S. GAAP 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.
Expenses
Investment related expenses are included within Net investment gain from Acuity DC Trust on the Statements of Changes in Net Assets Available for Benefits. Certain 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. 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 Yet to Be Adopted
In February 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2017-06, Employee Benefit Plan Master Trust Reporting ("ASU 2017-06"). It is effective for fiscal years beginning after December 15, 2018. The amendments require reporting entities to report a plan's interest in a master trust and the change in the value of that interest as separate line items on the statement of net assets available for benefits and the statement of changes in net assets available for benefits, respectively. Additionally, the master trust's investments and other assets and liabilities, as well as the dollar amount of its interest in these balances, must be disclosed. Lastly, investments measured at fair value must be disaggregated by general type of investment. The Company is currently evaluating the impact of the provisions of ASU 2017-06 and intends to implement the standard as required in fiscal 2019.

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


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 that can be specifically identified and distributed among all plans) in proportion to the fair value of the assets assigned to each plan, as well as income and expenses resulting from the collective investment of the Trust assets. For the year ended December 31, 2017, total interest income, dividend income, and net appreciation in investments were $1,301,214, $12,997,563, and $28,056,388, respectively. The fair values of the net assets of the Acuity DC Trust as of December 31, 2017 and 2016 are presented below:

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


 
 
 
Plans' Percentage Interest
 
2017
 
Plan
 
Plan
 
Plan
 
Value
 
No. 033
 
No. 067
 
No. 070
Mutual Funds
 
 
 
 
 
 
 
Aberdeen Emerging Market
$
1,172,546

 
93.5
%
 
3.5
%
 
3.0
%
American Beacon Large Cap Value
15,635,708

 
90.6
%
 
1.9
%
 
7.5
%
Invesco International Growth Fund
867,245

 
99.9
%
 
0.1
%
 
%
JP Morgan Core Bond Fund
7,596,006

 
96.5
%
 
1.5
%
 
2.0
%
Northern Small Cap Value
10,959,480

 
95.8
%
 
2.3
%
 
1.9
%
T. Rowe Price Growth
18,680,418

 
93.4
%
 
1.3
%
 
5.3
%
T. Rowe Price Mid Cap
28,159,032

 
90.5
%
 
2.5
%
 
7.0
%
Templeton Institutional
8,230,917

 
95.0
%
 
1.6
%
 
3.4
%
Vanguard 2015 Target Retirement
2,076,958

 
70.5
%
 
26.9
%
 
2.6
%
Vanguard 2020 Target Retirement
8,272,220

 
79.3
%
 
17.9
%
 
2.8
%
Vanguard 2025 Target Retirement
15,498,237

 
76.7
%
 
19.4
%
 
3.9
%
Vanguard 2030 Target Retirement
16,614,047

 
83.7
%
 
13.6
%
 
2.7
%
Vanguard 2035 Target Retirement
11,843,931

 
86.4
%
 
13.0
%
 
0.6
%
Vanguard 2040 Target Retirement
9,613,639

 
93.2
%
 
5.6
%
 
1.2
%
Vanguard 2045 Target Retirement
7,715,958

 
96.6
%
 
3.4
%
 
%
Vanguard 2050 Target Retirement
6,420,287

 
98.6
%
 
1.4
%
 
%
Vanguard 2055 Target Retirement
3,251,007

 
97.8
%
 
1.4
%
 
0.8
%
Vanguard 2060 Target Retirement
371,083

 
98.0
%
 
2.0
%
 
%
Vanguard 2065 Target Retirement
37

 
%
 
100.0
%
 
%
Vanguard Target Income Retirement
671,843

 
56.2
%
 
40.1
%
 
3.7
%
Vanguard Explorer Admiral
13,860,791

 
89.1
%
 
2.1
%
 
8.8
%
Vanguard Extended Market Index
4,146,873

 
93.0
%
 
2.4
%
 
4.6
%
Vanguard Institutional Index
44,072,982

 
92.7
%
 
2.4
%
 
4.9
%
Vanguard Selected Value
12,344,966

 
96.4
%
 
2.2
%
 
1.4
%
Vanguard Total International Stock
5,633,286

 
92.4
%
 
3.3
%
 
4.3
%
     Total Mutual Funds
253,709,497

 
 
 
 
 
 
Self-Directed Brokerage Accounts
33,676,492

 
98.0
%
 
%
 
2.0
%
Common Stock
 
 
 
 
 
 
 
Acuity Brands Stock Fund
12,065,578

 
95.1
%
 
2.2
%
 
2.7
%
Common/Collective Trust
 
 
 
 
 
 
 
State Street US Bond Fund
7,217,442

 
93.2
%
 
4.0
%
 
2.8
%
Total Investments at fair value
306,669,009

 
 
 
 
 
 
Unallocated Cash
16,030

 
 
 
 
 
 
Accrued Investment Income
450

 
 
 
 
 
 
Adjustment for pending trades
1,649

 
 
 
 
 
 
Acuity DC Trust at fair value
306,687,138

 
 
 
 
 
 
Invesco Stable Value Fund at contract value
43,658,610

 
81.9
%
 
3.1
%
 
15.0
%
Plan Interest in Acuity DC Trust
350,345,748

 
 
 
 
 
 
Accrued expenses
(72,000
)
 
 
 
 
 
 
Net Assets
350,273,748

 
 
 
 
 
 
Employer contributions receivable
363,228

 
 
 
 
 
 
Employee contributions receivable
988,772

 
 
 
 
 
 
Notes receivable from participants
5,166,913

 
 
 
 
 
 
Net Assets of the Acuity DC Trust
$
356,792,661

 
 
 
 
 
 

10

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


 
 
 
Plans' Percentage Interest
 
2016
 
Plan
 
Plan
 
Plan
 
Value
 
No. 033
 
No. 067
 
No. 070
Mutual Funds
 
 
 
 
 
 
 
Aberdeen Emerging Market
$
875,530

 
92.8
%
 
3.9
%
 
3.3
%
American Beacon Large Cap Value
13,826,026

 
90.9
%
 
1.8
%
 
7.3
%
Invesco International Growth Fund
840,965

 
98.6
%
 
1.4
%
 
%
JP Morgan Core Bond Fund
4,516,693

 
99.2
%
 
0.7
%
 
0.1
%
Northern Small Cap Value
10,837,279

 
95.0
%
 
2.5
%
 
2.5
%
T. Rowe Price Growth
14,274,056

 
92.8
%
 
1.3
%
 
5.9
%
T. Rowe Price Mid Cap
23,551,307

 
91.1
%
 
2.4
%
 
6.5
%
Templeton Institutional
7,006,271

 
95.0
%
 
1.7
%
 
3.3
%
Vanguard Explorer Admiral
11,957,582

 
89.1
%
 
2.4
%
 
8.5
%
Vanguard Extended Market Index
2,536,840

 
87.9
%
 
2.6
%
 
9.5
%
Vanguard Institutional Index
38,870,619

 
92.7
%
 
2.6
%
 
4.7
%
Vanguard Selected Value
10,247,934

 
95.9
%
 
2.5
%
 
1.6
%
Vanguard Total International Stock
3,762,936

 
91.5
%
 
3.3
%
 
5.2
%
Wells Fargo Target 2010
1,118,343

 
70.3
%
 
26.2
%
 
3.5
%
Wells Fargo Target 2015
2,692,086

 
73.4
%
 
24.8
%
 
1.8
%
Wells Fargo Target 2020
8,004,028

 
75.9
%
 
17.8
%
 
6.3
%
Wells Fargo Target 2025
13,793,989

 
75.7
%
 
20.7
%
 
3.6
%
Wells Fargo Target 2030
14,291,806

 
84.1
%
 
13.3
%
 
2.6
%
Wells Fargo Target 2035
9,517,676

 
85.7
%
 
13.6
%
 
0.7
%
Wells Fargo Target 2040
7,592,137

 
92.8
%
 
6.0
%
 
1.2
%
Wells Fargo Target 2045
5,581,685

 
96.2
%
 
3.8
%
 
%
Wells Fargo Target 2050
4,421,669

 
98.6
%
 
1.4
%
 
%
Wells Fargo Target 2055
1,896,324

 
96.6
%
 
2.9
%
 
0.5
%
Wells Fargo Target 2060
93,653

 
96.8
%
 
3.0
%
 
0.2
%
Wells Fargo Target Today
210,298

 
21.4
%
 
75.8
%
 
2.8
%
     Total Mutual Funds
212,317,732

 
 
 
 
 
 
Self-Directed Brokerage Accounts
24,868,448

 
96.8
%
 
%
 
3.2
%
Common Stock
 
 
 
 
 
 
 
Acuity Brands Stock Fund
17,361,835

 
95.4
%
 
1.7
%
 
2.9
%
Common/Collective Trust
 
 
 
 
 
 
 
State Street US Bond Fund
9,061,384

 
93.9
%
 
2.8
%
 
3.3
%
Total Investments at fair value
263,609,399

 
 
 
 
 
 
Unallocated Cash
782,807

 
 
 
 
 
 
Accrued Investment Income
313

 
 
 
 
 
 
Adjustment for pending trades
750

 
 
 
 
 
 
Acuity DC Trust at fair value
264,393,269

 
 
 
 
 
 
Invesco Stable Value Fund at contract value
44,778,263

 
80.8
%
 
2.7
%
 
16.5
%
Plan Interest in Acuity DC Trust
309,171,532

 
 
 
 
 
 
Accrued expenses and other
(78,000
)
 
 
 
 
 
 
Net Assets
309,093,532

 
 
 
 
 
 
Employer contributions receivable
245,566

 
 
 
 
 
 
Notes receivable from participants
4,331,793

 
 
 
 
 
 
Net Assets of the Acuity DC Trust
$
313,670,891

 
 
 
 
 
 


11

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 GICs in the Stable Acuity Fund:
Contract Issuer
 
2017 Contract Value
 
Contract Issuer
 
2016 Contract Value
Synthetic GICs:
 
 
 
Synthetic GICs:
 
 
Voya
 
$
7,264,213

 
Voya
 
$
7,577,586

Life Ins Company SW
 
7,579,089

 
Life Ins Company SW
 
7,895,074

Mass Mutual
 
5,601,404

 
Mass Mutual
 
5,819,206

Transamerica
 
7,007,102

 
Transamerica
 
7,309,999

Prudential Insurance
 
7,119,863

 
Prudential Insurance
 
7,449,566

Pacific Life Insurance
 
7,245,606

 
Pacific Life Insurance
 
7,523,646

Subtotal
 
41,817,277

 
Subtotal
 
43,575,077

Cash:
 
 
 
Cash:
 
 
Bank of America Merrill Lynch
 
1,841,333

 
Bank of America Merrill Lynch
 
1,203,186

Total
 
$
43,658,610

 
Total
 
$
44,778,263

5.     Fair Value Measurements
In accordance with Accounting Standards Codification 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)
Mutual Funds - valued using the net asset value ("NAV") 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.
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.
Common/Collective Trust
The common/collective trust held by the Acuity DC Trust is valued using the NAV provided by the trustee, which is based on the fair value of the underlying investments held by the fund less its liabilities. The trust's NAV is used as a practical expedient to estimate fair value since it is not probable that the fund will sell the investment for an amount different than the reported NAV. 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.
The following tables present information about the Acuity DC Trust's assets that are carried at fair value as of December 31, 2017 and 2016:

12

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


 
 
Fair Value Measurements as of:
 
 
December 31, 2017
 
December 31, 2016
 
 
Total Fair Value
 
Level 1
 
Total Fair Value
 
Level 1
Mutual Funds
 
$
253,709,497

 
$
253,709,497

 
$
212,317,732

 
$
212,317,732

Self-Directed Brokerage Accounts
 
33,676,492

 
33,676,492

 
24,868,448

 
24,868,448

Acuity Brands Stock Fund
 
12,065,578

 
12,065,578

 
17,361,835

 
17,361,835

Common/Collective Trust
 
7,217,442

 
N/A

 
9,061,384

 
N/A

Total Investments at Fair Value
 
$
306,669,009

 
 
 
$
263,609,399

 
 
 
 
 
 
 
 
 
 
 
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.
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 Internal Revenue Service ("IRS") stated these plans are qualified under Section 401(a) of the 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.
U.S. GAAP requires 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, 2017, 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
 
2017
 
2016
033
 
Acuity Brands, Inc. 401(k) Plan
 
$
15,779

 
$
782,807

067
 
Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
 
251

 

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.

13

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, 2017
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)
 
$

 
$
3,491,519

Acuity Brands Lighting, Inc. 401(k) Plan for Hourly Employees
 
067
 
58-2632672
 
Participant Loans
 
4.25% to 4.5%
(various maturity dates)
 

 
1,281,480

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% - 9.25%
(various maturity dates)
 

 
393,914

___________________________________________
*Represents a party-in-interest


14

Table of Contents

EXHIBIT INDEX

Exhibit Number
 
Description
23.1

 


15

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 29, 2018
                        
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


16