11-K 2014 401(k) Plan


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 11-K
 
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2014
 
OR
 
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ___________ to ___________
 
COMMISSION FILE NUMBER 001-12307
 
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
 
ZIONS BANCORPORATION PAYSHELTER 401(K) AND
EMPLOYEE STOCK OWNERSHIP PLAN
 
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
 
ZIONS BANCORPORATION
One South Main, 15th Floor
Salt Lake City, Utah 84133









INDEX


 
 
Page
 
 
 
(a)
Financial Statements and Supplemental Schedules –
   Zions Bancorporation Payshelter 401(k) and
   Employee Stock Ownership Plan


F-1
 
 
 
(b)
Signatures
F-2
 
 
 
(c)
Exhibit 23 – Consent of Independent Registered
   Public Accounting Firm

F-3




















Financial Statements and Supplemental Schedules

ZIONS BANCORPORATION PAYSHELTER 401(K) AND
EMPLOYEE STOCK OWNERSHIP PLAN

As of December 31, 2014 and 2013 and for the
Year Ended December 31, 2014

with Report of Independent Registered Public Accounting Firm







F-1



Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Financial Statements and Supplemental Schedules

As of December 31, 2014 and 2013 and for the
Year Ended December 31, 2014







Contents

Report of Independent Registered Public Accounting Firm
 
 
 
Financial Statements
 
 
 
Statements of Net Assets Available for Benefits
1

Statement of Changes in Net Assets Available for Benefits
2

Notes to Financial Statements
3

 
 
Supplemental Schedules
 
 
 
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
15

Schedule H, Line 4j – Schedule of Reportable Transactions
17









Report of Independent Registered Public Accounting Firm

The Benefits Committee
Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan
We have audited the accompanying statements of net assets available for benefits of Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan as of December 31, 2014 and 2013, and the related statement of changes in net assets available for benefits for the year ended December 31, 2014. These financial statements are the responsibility of the Plan’s 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. We were not engaged to perform an audit of the Plan’s 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 Plan’s 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, and 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 Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan at December 31, 2014 and 2013, and the changes in its net assets available for benefits for the year ended December 31, 2014, in conformity with U.S. generally accepted accounting principles.
The accompanying supplemental schedules of assets (held at end of year) as of December 31, 2014, and reportable transactions for the year then ended, have been subjected to audit procedures performed in conjunction with the audit of Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan’s financial statements. The information in the supplemental schedules is the responsibility of the Plan’s management. Our audit procedures included determining whether the 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 schedules. In forming our opinion on the information, we evaluated whether such 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 information is fairly stated, in all material respects, in relation to the financial statements as a whole.
/s/ Ernst & Young LLP
Salt Lake City, Utah
June 24, 2015




Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Statements of Net Assets Available for Benefits

 
December 31,
 
2014
 
2013
Assets
 
 
 
Investments at fair value:
 
 
 
Zions Bancorporation common stock
$
243,032,770

 
$
258,103,397

Common collective trust
78,467,298

 
83,450,878

Shares of registered investment companies
520,754,644

 
471,472,816

Real estate joint venture
87,979

 
89,081

 
842,342,691

 
813,116,172

 
 
 
 
Receivables:
 
 
 
Participant and employer contributions
13,321,815

 
12,767,334

Notes receivable from participants
18,227,352

 
17,360,962

 
31,549,167

 
30,128,296

Net assets reflecting all investments at fair value
873,891,858

 
843,244,468

 
 
 
 
Adjustment from fair value to contract value for fully benefit-responsive investment contracts held in common collective trust
(1,129,340
)
 
(1,174,688
)
Net assets available for benefits
$
872,762,518

 
$
842,069,780

 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to financial statements.
 
 
 






 

1




Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2014


Additions to/(deductions from) net assets attributable to:
 
 
 
Investment income:
 
Net depreciation in fair value of investments
$
(11,766,856
)
Interest and dividends
36,299,615

 
 
Contributions:
 
Participant
48,448,631

Employer
36,257,620

Rollovers
5,577,033

 
 
Benefits paid directly to participants
(84,123,305
)
 
 
Net increase
30,692,738

 
 
Net assets available for benefits:
 
Beginning of year
842,069,780

End of year
$
872,762,518

 
 
 
 
 
 
See accompanying notes to financial statements.






2





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements

December 31, 2014



1.    Description of Plan
The following description of the Zions Bancorporation Payshelter 401(k) and Employee Stock Ownership Plan (“the Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

General
The Plan is a single employer defined contribution plan designed to provide retirement benefits for eligible employees under a pretax salary reduction arrangement with a specified employer matching contribution and a discretionary noncontributory profit sharing feature. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). From time to time, the Plan has been restated and amended. Fidelity Management Trust Company (“Fidelity”) is the trustee of the Plan. Zions Bancorporation (“the Company”) is the Plan sponsor. The Company’s Benefits Committee (“the Benefits Committee”) administers the Plan.

Eligibility
Participation in the Plan is voluntary. Any nonexcluded employee (as defined in the Plan provisions) at least 21 years of age is eligible to participate. To be eligible for the noncontributory profit sharing feature, participants must meet other criteria, including 1,000 hours of service.

Contributions
Participants may contribute from 1% to 5% of their pretax annual compensation for which the Company provides a matching contribution of 100% for the first 3% of the participant’s compensation and 50% for the remaining 2%. Overall, participants may contribute up to 80% of their pretax annual compensation subject to the annual maximum allowed participant contribution, which was $17,500 for 2014. Under applicable law, participants attaining the age of 50 during or prior to 2014 are eligible to make catch-up contributions.


3





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


1.    Description of Plan (continued)
Contributions by the Company under the noncontributory profit sharing feature are discretionary. Contribution rates may range up to 6% of participants’ compensation based on the Company’s return on average common equity, as defined, for the Plan year.

These contributions are approved and made subsequent to the end of the Plan year. For the 2014 Plan year, the Company contributed $11,937,411 under this profit sharing feature, which was made in March 2015 and is included in employer contributions for the year ended December 31, 2014.

Forfeitures used to offset Company contributions were $417,468 in 2014, which was the amount of forfeitures outstanding at December 31, 2013. At December 31, 2014, the amount of forfeitures outstanding was $388,065.

The Plan allows for Roth 401(k) contributions consistent with the requirements of §402A of the Internal Revenue Code (“the Code”). Such contributions include rollovers from other Roth deferral accounts as described in Code §402A(e)(1) and only to the extent the rollovers are permitted under Code §402(c). Roth contributions are treated as elective deferrals at the option of the participant for all purposes under the Plan, including determination and allocation of the Company’s matching contributions.

The Plan allows rollovers by participants from nonaffiliated qualifying plans.

Participant Accounts
Each participant’s fund account is credited with the participant’s contributions and allocations of the Company’s contributions and Plan earnings. Investment income or loss is allocated based on the investment shares held in the participant’s account in relation to the total investment shares of the Plan. However, income or loss from trading of the Company’s common stock, which is done on a real-time basis, is identified and charged directly to the participant’s account without regard to the allocation process.


4





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


1.    Description of Plan (continued)

Vesting and Payment of Benefits
Participant and Company matching contributions plus investment earnings are immediately vested. Company contributions under the noncontributory profit sharing feature vest according to the following schedule:
Years of vesting service
 
Percent vested
 
Years of vesting service
 
Percent vested
 
 
 
 
 
 
 
Less than 2
 
None
 
4
 
60%
2
 
20%
 
5 or more
 
100%
3
 
40%
 
 
 
 
Nonvested amounts forfeited by terminated participants are used first to reduce the Company’s profit sharing contributions. If Company nonelective contributions are not made during a given Plan year, any amounts forfeited may be used at the Company’s election to reduce the Company’s matching contribution, offset administrative expenses, allocate directly to participants’ accounts, or any combination of the foregoing. Participants are 100% vested if employed by the Company when normal retirement age is attained. Benefits are paid upon death, disability, retirement, or termination of employment, or may be paid earlier subject to Plan provisions. Benefits are paid in shares of stock, cash, or a combination of the two, depending on the participant’s investment options.

Investment Options
Participant contributions can be directed subject to Plan provisions into various Plan investment options, including the Company’s common stock. The Company’s matching contributions and amounts contributed under the noncontributory profit sharing feature are invested in the Company’s common stock purchased in the open market. Participants may immediately diversify to other Plan investments up to 100% of their existing investments in the Company’s common stock received as Company matching contributions. However, three years of participation in the Plan is required before participants can diversify their investments in the Company’s common stock resulting from the Company’s profit sharing contributions.


5





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


1.    Description of Plan (continued)

Participant Loans
Participants may borrow from their fund accounts in amounts from $1,000 up to the lesser of $50,000 or 50% of their vested account balance, as defined. Loan terms cannot exceed five years, or ten years if used for the purchase of a primary residence. The loans are secured by the balance in the participants’ accounts and are repaid at a specified rate of interest through direct payroll deductions.

Plan Termination
Although the Company has not expressed any intent to do so, it has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. If the Plan were terminated, each participant would become 100% vested and would receive a distribution of assets equal to the value of the participant’s account.

2.    Significant Accounting Policies
Basis of Presentation
The accompanying financial statements are prepared using the accrual basis of accounting under generally accepted accounting principles (“GAAP”).

Investment Valuation and Income Recognition
Investments are reported at fair value as further described in Note 4. The statements of net assets available for benefits include an adjustment from fair value to contract value for the Plan’s investment in a common collective trust. This investment is through participation in the Fidelity Managed Income Portfolio II – Class 2 fund, which includes investment contracts that are fully benefit-responsive. As such, contract value is considered the more relevant measurement because participants would receive this value if they were to initiate permitted transactions under the terms of the Plan. Contract value of the common collective trust represents contributions plus earnings, less participant withdrawals and administrative expenses.

Purchases and sales of investments are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date.


6





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


2.    Significant Accounting Policies (continued)
Notes Receivable from Participants
Notes receivable from participants represent participant loans recorded at their unpaid principal balance plus any accrued interest. Interest income on notes receivable from participants is recorded when earned. The amount for 2014 was $760,830 and was included in interest and dividends in the statement of changes in net assets available for benefits. Loan documentation and processing fees are charged to the participants’ accounts. No allowance for credit losses was recorded at December 31, 2014 or 2013. If a participant ceases to make loan repayments and the Benefits Committee deems the participant loan to be a distribution, the participant loan balance is reduced and a benefit payment is recorded.

Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Concentration of Investments
The Plan’s net assets available for benefits at December 31, 2014 and 2013 include investments in the Company’s common stock of $243,032,770 (8,510,965 shares) and $258,103,397 (8,589,751 shares), respectively. These investments represent a 4.2% and 4.7% ownership of the Company’s outstanding common stock at December 31, 2014 and 2013, respectively.

New Accounting Pronouncement
In May 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-7, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (a consensus of the Emerging Issues Task Force). This new accounting guidance under Accounting Standards Codification 820, Fair Value Measurement, requires that investments for which fair value is measured at net asset value (or its equivalent) using the practical expedient should not be categorized in the fair value hierarchy. Adoption is retrospective and earlier application is permitted. The Plan will adopt this new guidance when it becomes effective for the Plan year beginning January 1, 2016.


7





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


3.    Investments
As trustee of the Plan, Fidelity holds the Plan’s investments and executes all investment transactions. The fair value of individual investments that represents 5% or more of the fair value of the Plan’s net assets available for benefits is as follows:

 
December 31,
 
2014
 
2013
 
 
 
 
Zions Bancorporation common stock*
$
243,032,770

 
$
258,103,397

Fidelity Managed Income Portfolio II – Class 2
78,467,298

 
83,450,878

Fidelity Contrafund K
56,153,268

 
53,150,404

*Nonparticipant-directed

During 2014, the Plan’s investments (including investments purchased and sold, as well as held during the year) appreciated (depreciated) in fair value as determined by quoted market prices as follows:

Zions Bancorporation common stock
$
(12,929,242
)
Registered investment companies
and real estate joint venture
1,162,386

 
$
(11,766,856
)

The Plan’s investment activity in the Company’s common stock for 2014 includes nonparticipant-directed and participant-directed transactions. Because the investment activity cannot be split between these types of transactions, the entire investment is reflected as nonparticipant-directed.

Significant changes in net assets during 2014 relating to nonparticipant-directed and participant-directed transactions of the Company’s common stock are as follows:

Net depreciation in fair value
$
(12,929,242
)
Interest and dividends
1,413,313

Contributions
39,103,666

Net transfers to other investments
(21,174,529
)
Benefits paid directly to participants
(21,483,835
)
Net decrease in net assets
(15,070,627
)
 
 
Net assets at beginning of year
258,103,397

Net assets at end of year
$
243,032,770


8





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


4.    Fair Value
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows:

Level 1
Quoted prices in active markets for identical assets or liabilities that the Plan has the ability to access. For the Plan, Level 1 includes the Company’s common stock and the shares of registered investment companies.

Level 2
Observable inputs other than Level 1 including quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
•    Quoted prices for similar assets or liabilities in active markets;
•    Quoted prices for identical or similar assets or liabilities in inactive markets;
    Observable inputs other than quoted prices that are used in the valuation of assets or liabilities (e.g., interest rate and yield curve quotes at commonly quoted intervals);
    Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
For the Plan, Level 2 includes the common collective trust.

Level 3
Unobservable inputs for the asset or liability (i.e., supported by little or no market activity) whose value is determined by pricing models, discounted cash flow methodologies, or similar techniques. Level 3 inputs include management’s own assumption about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). For the Plan, Level 3 includes the real estate joint venture.

9





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


4.    Fair Value (continued)
The level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measure in its entirety.

The following describes the assets and the valuation methodologies used to measure their fair value:
Company common stock – Shares of the Company’s common stock are valued at the last reported sales price on the last business day of the Plan year in the active market where individual securities are traded.
Common collective trust – This trust holds the Fidelity Managed Income Portfolio II – Class 2 fund discussed in Note 2. The fund is a stable value fund designed to deliver safety and stability by preserving principal while earning interest income. It invests in investment contracts (wrap contracts) issued by insurance companies and other financial institutions, fixed income securities (e.g., U.S. Treasury and agency bonds, corporate bonds, mortgage- and asset-backed securities, and bond funds), and money market funds. It may also invest in futures contracts, option contracts, and swap agreements. Redemptions prompted by certain events (e.g., termination of the fund, changes in laws or regulations) may be paid at fair value, which may be less than book value. Participation units in the fund are valued at the net asset value (“NAV”) as the practical expedient as determined by the trustee. As further discussed in Note 2, the contract value of the fund differs from fair value and is considered the more relevant measurement.
Shares of registered investment companies – These mutual funds are valued at quoted market prices for shares held by the Plan at year-end.
Real estate joint venture – This joint venture includes commercial and residential real estate properties that are in process of liquidation. Proceeds from the sales are accumulated in a money market investment account. The fair value of this investment is estimated using the NAV provided by the joint venture. While the Plan does not contemplate any redemption for investment purposes, redemption may be required for benefit payment purposes.

10





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


4.    Fair Value (continued)
Assets measured at fair value on a recurring basis within the fair value hierarchy are summarized as follows at December 31, 2014 and 2013:

 
 
December 31, 2014
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
 
 
 
 
 
 
Zions Bancorporation common stock
$
243,032,770

 
$

 
$

 
$
243,032,770

Common collective trust
 
 
 
78,467,298

 
 
 
78,467,298

Shares of registered investment companies:
 
 
 
 
 
 
 
 
Domestic
 
359,247,978

 
 
 
 
 
359,247,978

International
 
39,715,146

 
 
 
 
 
39,715,146

Lifecycle
 
121,791,520

 
 
 
 
 
121,791,520

 
 
520,754,644

 
 
 
 
 
520,754,644

Real estate joint venture
 
 
 
 
 
87,979

 
87,979

 
 
$
763,787,414

 
$
78,467,298

 
$
87,979

 
$
842,342,691


 
 
December 31, 2013
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
 
 
 
 
 
 
 
Zions Bancorporation common stock
$
258,103,397

 
$

 
$

 
$
258,103,397

Common collective trust
 
 
 
83,450,878

 
 
 
83,450,878

Shares of registered investment companies:
 
 
 
 
 
 
 
 
Domestic
 
331,984,408

 
 
 
 
 
331,984,408

International
 
44,605,324

 
 
 
 
 
44,605,324

Lifecycle
 
94,883,084

 
 
 
 
 
94,883,084

 
 
471,472,816

 

 

 
471,472,816

Real estate joint venture
 
 
 
 
 
89,081

 
89,081

 
 
$
729,576,213

 
$
83,450,878

 
$
89,081

 
$
813,116,172


No transfers of investments occurred among Levels 1, 2, or 3 during 2014.

11





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


4.    Fair Value (continued)
The following presents additional information as of December 31, 2014 and 2013 for the common collective trust and real estate joint venture whose fair values are based on NAV per share:

Fair value
at December 31,
 
Investment
 
Unfunded commitments
 
Redemption
 
 
 
 
 
 
 
 
 
2014:
 
$
78,467,298

 
Common collective trust
 
n/a
 
Any business day, subject to certain restrictions; however, actual redemption values may vary from recorded amounts at December 31, 2014 (see previous discussion).
2013:
 
83,450,878

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014:
 
$
87,979

 
Real estate joint venture
 
none
 
Subject to certain restrictions including the consent of joint venture interest holders and time delays in computing NAV, such that actual redemption values may vary from recorded fair values at December 31, 2014 (see previous discussion).
2013:
 
89,081

 
 
 
 
 
 
 
 
 
 
 
 
 

The following reconciles the beginning and ending balances of assets for 2014 that are measured at fair value on a recurring basis using Level 3 inputs:

 
Real estate
joint venture
 
 
 
 
Balance at December 31, 2013
 
$
89,081

 
Net increase included in statement of changes in net assets available for benefits:
 
 
 
Net appreciation in fair value of investments:
 
 
 
Unrealized
 
31

 
Interest and dividends
 
13

 
Benefits paid directly to participants
 
(1,146
)
 
Balance at December 31, 2014
 
$
87,979

 

The Plan does not have fair value quantitative information for the real estate joint venture measured under Level 3. The information provided by the joint venture, as previously described, is included in the annual review process of the Benefits Committee, which has concluded that the related fair values were developed in accordance with GAAP.

12





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


5.    Transactions with Parties-in-Interest
During 2014, the Plan received dividends for the Company’s common stock of $1,347,554. Purchases and sales of the Company’s common stock in 2014 were $54,530,069 and $56,302,174 respectively. The amount of purchases included approximately $13.1 million of exchanges that were made by participants from other investments in the Plan during 2014.

6.    Risks and Uncertainties
The Plan invests 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.

7.    Reconciliation of Financial Statements to Form 5500
The following reconciles net assets available for benefits in the accompanying financial statements to net assets in the Form 5500:

 
 
December 31,
 
 
2014
 
2013
Net assets available for benefits in accompanying financial statements
 
$
872,762,518

 
$
842,069,780

Add adjustment between fair value and contract value related to fully benefit-responsive investment contracts held in common collective trust
 
1,129,340

 
1,174,688

Net assets in Form 5500
 
$
873,891,858

 
$
843,244,468



13





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Notes to Financial Statements (continued)


7.    Reconciliation of Financial Statements to Form 5500 (continued)
The following reconciles the net increase in the statement of changes in net assets available for benefits to net income in the Form 5500 for the year ended December 31, 2014:

Net increase in statement of changes in net assets available
for benefits
 
$
30,692,738

 
 
 
Adjustment between fair value and contract value related to fully benefit-responsive investment contracts held in common collective trust:
 
 
 
 
 
Less: Amount at December 31, 2013
 
(1,174,688
)
Add: Amount at December 31, 2014
 
1,129,340

Net income in Form 5500
 
$
30,647,390


8.    Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service (“IRS”) dated September 17, 2013, stating that the Plan is qualified under Section 401(a) of the Code and therefore, the related trust is exempt from taxation. Subsequent to this determination by the IRS, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualified status. The Plan administrator has indicated that it will take the necessary steps, if any, to bring the Plan’s operations into compliance with the Code.

Plan management evaluates any uncertain tax positions taken by the Plan. The financial statement effects of a tax position are 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 Plan, and has concluded that as of December 31, 2014, there are no uncertain tax positions taken or expected to be taken. The Plan has recognized no interest or penalties related to uncertain tax positions.

The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress for any tax periods. The Plan administrator believes the Plan is no longer subject to income tax examinations for years prior to 2011.



14





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
EIN: 87-0227400 Plan: 006

December 31, 2014

(a)
 
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party
 
(c)
Description of Investment
 
(d)
Cost of Remain-
ing Assets (1)
 
(e)
Current Value
 
 
 
 
 
 
 
 
 
 
 
INVESTMENTS
 
 
 
 
 
 
 
 
Zions Bancorporation common stock
 
 
 
 
*

 
ZIONS BANCORPORATION
 
COMMON STOCK (8,510,965 shares)
 
$
235,065,479

 
$
243,032,770

 
 
 
 
 
 
 
 
 
 
 
Common collective trust
 
 
 
 
 
 
*

 
FIDELITY INVESTMENTS
 
MANAGED INCOME PORTFOLIO II CL 2 (77,337,958 units)
78,467,298

 
 
 
 
 
 
 
 
 
 
 
Shares of registered investment companies
 
 
 
 
 
 
Domestic
 
 
 
 
 
 
 
 
COLUMBIA
 
ACORN USA Y (383,821 shares)
 
 
 
12,205,501

 
 
AMERICAN BEACON FUNDS
 
LARGE CAP VALUE INSTITUTIONAL (1,107,788 shares)
 
32,258,773

 
 
T. ROWE PRICE
 
EMERGING MARKETS STOCK (181,274 shares)
 
5,869,645

 
 
VANGUARD
 
REIT INDEX FUND INSTITUTIONAL (442,433 shares)
 
7,862,035

 
 
PIMCO FUNDS
 
TOTAL RETURN INSTITUTIONAL (1,989,320 shares)
 
21,206,152

 
 
WELLS FARGO ADV
 
SPECIAL SMALL CAP VALUE ADMIRAL (443,922 shares)
 
12,758,309

 
 
VANGUARD
 
MID CAP INDEX INSTITUTIONAL (641,142 shares)
 
21,664,176

 
 
VANGUARD
 
SMALL CAP INDEX INSTITUTIONAL (322,422 shares)
 
18,013,694

 
 
VICTORY FUNDS
 
DIVERSIFIED STOCK I (363,037 shares)
 
7,482,188

 
 
LEGG MASON
 
CLEARBRIDGE AGGRESSIVE GROWTH (54,691 shares)
 
12,171,925

 
 
LOOMIS SAYLES FUNDS
 
BOND INSTITUTIONAL (698,175 shares)
 
 
 
10,353,929

 
 
PIMCO FUNDS
 
COMMODITY REAL RETURN INST (407,397 shares)
 
1,825,140

 
 
VANGUARD
 
INFLATION PROTECTED INSTITUTIONAL (492,784 shares)
 
5,193,944

 
 
VANGUARD
 
SELECTED VALUE (613,649 shares)
 
 
 
17,415,358

 
 
VANGUARD
 
SHORT-TERM INV GRADE ADMIRAL (3,521 shares)
 
37,534

 
 
VANGUARD
 
TARGET RETIREMENT INCOME (236,066 shares)
 
3,047,614

 
 
JANUS
 
ENTERPRISE N FUND (371,378 shares)
 
 
 
32,346,994

*

 
FIDELITY INVESTMENTS
 
CONTRAFUND K (573,578 shares)
 
 
 
56,153,268

*

 
FIDELITY INVESTMENTS
 
CAPITAL & INCOME (1,102,769 shares)
 
 
 
10,674,805

*

 
FIDELITY INVESTMENTS
 
BALANCED K (732,330 shares)
 
 
 
16,675,149

*

 
FIDELITY INVESTMENTS
 
SPARTAN TOTAL MARKET INDEX INST (130,953 shares)
 
7,838,865

*

 
FIDELITY INVESTMENTS
 
SPARTAN 500 INDEX INSTITUTIONAL (525,604 shares)
 
38,295,491

*

 
FIDELITY INVESTMENTS
 
SPARTAN U.S. BOND INDEX (672,699 shares)
 
7,897,489

 
 
 
 
 
 
 
 
359,247,978

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

15





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year) (continued)
EIN: 87-0227400 Plan: 006

December 31, 2014

(a)
 
(b)
Identity of Issue, Borrower,
Lessor, or Similar Party
 
(c)
Description of Investment
 
(d)
Cost of Remain-
ing Assets (1)
 
(e)
Current Value
 
 
 
 
 
 
 
 
 
 
 
International
 
 
 
 
 
 
 
 
OAKMARK
 
INTERNATIONAL I (425,926 shares)
 
 
 
$
9,941,116

 
 
AMERICAN FUNDS
 
EUROPACIFIC GROWTH R6 (91,164 shares)
 
4,292,925

 
 
BLACKROCK FUNDS
 
INTERNATIONAL OPPS INSTITUTIONAL (229,414 shares)
 
7,444,472

 
 
LOOMIS SAYLES FUNDS
 
GLOBAL BOND INSTITUTIONAL (146,825 shares)
 
2,294,878

 
 
MORGAN STANLEY
 
INST INTERNATIONAL REAL ESTATE (128,469 shares)
 
2,547,548

*

 
FIDELITY INVESTMENTS
 
SPARTAN INTERNATIONAL INDEX (354,492 shares)
 
13,194,207

 
 
 
 
 
 
 
 
39,715,146

 
 
Lifecycle
 
 
 
 
 
 
 
 
VANGUARD
 
TARGET RETIREMENT 2010 (364,017 shares)
 
9,580,932

 
 
VANGUARD
 
TARGET RETIREMENT 2015 (612,017 shares)
 
9,357,740

 
 
VANGUARD
 
TARGET RETIREMENT 2020 (946,549 shares)
 
26,938,773

 
 
VANGUARD
 
TARGET RETIREMENT 2025 (896,525 shares)
 
14,819,561

 
 
VANGUARD
 
TARGET RETIREMENT 2030 (715,181 shares)
 
20,768,866

 
 
VANGUARD
 
TARGET RETIREMENT 2035 (487,170 shares)
 
8,691,112

 
 
VANGUARD
 
TARGET RETIREMENT 2040 (571,126 shares)
 
16,996,702

 
 
VANGUARD
 
TARGET RETIREMENT 2045 (382,298 shares)
 
7,129,864

 
 
VANGUARD
 
TARGET RETIREMENT 2050 (208,439 shares)
 
6,173,951

 
 
VANGUARD
 
TARGET RETIREMENT 2055 (41,083 shares)
 
1,313,844

 
 
VANGUARD
 
TARGET RETIREMENT 2060 (715 shares)
 
20,175

 
 
 
 
 
 
 
 
121,791,520

 
 
 
 
 
 
 
 
520,754,644

 
 
Real estate joint venture
 
 
 
 
 
 
 
 
FAIRMONT PARK JOINT VENTURE
Commercial and residential real estate
 
 
 
87,979

 
 
 
 
 
 
 
 
$
842,342,691

 
 
 
 
 
 
 
 
 
 
 
RECEIVABLES
 
 
 
 
 
 
*

 
Notes receivable from participants
Interest rates ranging from 4.25% to 9.25%, with maturities through November 2024
 
 
 
$
18,227,352

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*

 
Indicates party-in-interest to the Plan.
 
 
 
 
(1
)
 
Only provided for nonparticipant-directed investments.
 
 
 
 


16





Zions Bancorporation Payshelter 401(k) and
Employee Stock Ownership Plan

Schedule H, Line 4j – Schedule of Reportable Transactions
EIN: 87-0227400 Plan: 006

Year Ended December 31, 2014




(a)
Identity of Party Involved
 
(b)
Description of Assets
 
(c)
Purchase Price
 
(d)
Selling
Price
 
(g)
Cost of
Asset
 
 (h)
Current Value of Asset on Trans-
action Date
 
(i)
Net Gain (Loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Category 3 – Any transaction within the plan year involving securities of the same issue if within the plan year any series of transactions with respect to such securities amount in the aggregate to more than 5% of the current value of the plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Zions Bancorporation
 
Common Stock
 
$
54,530,069

 
$

 
$
54,530,069

 
 
$
54,530,069

 
 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Zions Bancorporation
 
Common Stock
 

 
56,302,174

 
52,476,854

 
 
56,302,174

 
 
3,825,320

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
No category 1, 2 or 4 reportable transactions occurred during 2014.
Columns (e) and (f) are not applicable.
 
 
 
 
 
 
 
 




17




SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Benefits Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 
ZIONS BANCORPORATION PAYSHELTER 401(K) AND EMPLOYEE STOCK OWNERSHIP PLAN


June 24, 2015
 
By:
/s/ Paul E. Burdiss
 
Name:
PAUL E. BURDISS,
 
 
Executive Vice President and Chief Financial Officer of Zions Bancorporation



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