Note 16 — Multiemployer Plans

Union Plans—Various subsidiaries are signatories to collective bargaining agreements. These agreements require that we participate in and contribute to a number of multiemployer benefit plans for our union employees at rates determined by the agreements. The trustees for each multiemployer plan determine the eligibility and allocations of contributions and benefit amounts, determine the types of benefits and administer the plan.

We contributed $46.9 million, $34.2 million, and $34.3 million, to multiemployer pension plans for the years ended December 31, 2017, 2016 and 2015, respectively. These costs were charged to the related construction contracts in process. Contributions during 2017 increased from the prior years as a result of an increase in the number of man-hours worked by our union labor.

The financial risks of participating in multiemployer plans are different from single-employer plans in the following respects:

Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

If a participating employer chooses to stop participating in the plan, a withdrawal liability may be created based on the unfunded vested benefits for all employees in the plan.

Under U.S. legislation regarding multiemployer pension plans, an employer is required to pay an amount that represents its proportionate share of a plan’s unfunded vested benefits in the event of withdrawal from a plan or upon plan termination.

We participate in a number of multiemployer pension plans, and our potential withdrawal obligation may be significant. Any withdrawal liability would be recorded when it is probable that a liability exists and can be reasonably estimated, in accordance with GAAP. As discussed in Note 13—“Commitments and Contingencies,” in 2011 we withdrew from the Central States Southeast and Southwest Areas Pension Fund multiemployer pension plan. We have no plans to withdraw from any other labor agreements.

During the last three years, we made annual contributions to 78 pension plans. None of the pension plans that we contributed to in 2017 and 2016 listed us in the plan’s Form 5500 as providing more than 5% of the plan’s total contributions. Two of the pension plans that we contributed to in 2015 listed us in the plan’s Form 5500 as providing more than 5% of the plan’s total contributions. The contribution to one plan was $2.2 million and $0.5 million for the second plan.

Our participation in significant plans for the years ended December 31, 2017, 2016 and 2015 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three digit plan number. The “Zone Status” is based on the latest information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. The “Surcharge Imposed” column includes plans in a red zone status that require a payment of a surcharge in excess of regular contributions. The next column lists the expiration date of our collective bargaining agreement related to the plan. The table follows:

Collective

FIP/RP

Bargaining

EIN /

Pension Protection Act

Status

Agreement

Pension Plan

Zone Status

Pending /

Surcharge

Expiration

Contributions of the Company

Pension Fund Name

Number

2017

2016

Implemented

Imposed

Date

2017

2016

2015

Central Pension Fund of the International Union of Operating Engineers and Participating Employers

36-6052390/001

Green as of February 1, 2016

Green as of February 1, 2015

5/31/2020

7,562

5,373

5,659

Pipeline Industry Benefit Fund

73-6146433/001

Green as of January 1, 2016

Green as of January 1, 2015

5/31/2020

6,050

2,740

3,783

Laborers International Union of North America National (Industrial) Pension Fund

52-6074345/001

Red as of January 1, 2016

Red as of January 1, 2015

5/31/2020

4,658

2,415

3,287

Southern California Pipetrades Trust Funds

51-6108443/001

Green as of January 1, 2016

Green as of January 1, 2015

9/30/2022

3,219

2,614

2,180

Laborers Pension Trust Fund for Northern California

94-6277608/001

Yellow as of June 1, 2016

Yellow as of June 1, 2015

6/30/2019

2,945

3,598

3,150

National Pension Fund

52-6152779

Yellow as of July 1 2017

Yellow as of July 1 2016

9/30/2022

2,548

2,161

2,106

Operating Engineer Trust Funds

95-6032478/001

Yellow as of July 1, 2016

6/30/2019

2,448

1,643

1,401

Contributions to significant plans

29,430

20,544

21,566

Contributions to other multiemployer plans

17,505

13,639

12,730

Total contributions made

46,935

34,183

34,296