Multiemployer and Defined Benefit Pension Plans

9 Months Ended

Sep. 30, 2017

Compensation and Retirement Disclosure [Abstract]

Multiemployer and Defined Benefit Pension Plans

MOPP. During the nine months ended September 30, 2017, the Company received notification from the AMOPP that the Company’s withdrawal liability as of September 30, 2016 would have been $28.6 million based on an actuarial valuation performed as of that date. That liability may change in future years based on various factors, primarily employee census. As of September 30, 2017, the Company has no intention to withdraw from the AMOPP and no deficit amounts have been invoiced. Depending upon the results of the future actuarial valuations and the ten-year rehabilitation plan, it is possible that the AMOPP will experience further funding deficits, requiring the Company to recognize additional payroll related operating expenses in the periods invoices are received or contribution levels are increased.

ISH Retirement Plan. ISH sponsored a defined benefit pension plan (the “ISH Plan”) covering non-union employees prior to its acquisition by the Company on July 3, 2017 (see Note 2). The ISH Plan generally provided participants with benefits based on years of service and compensation levels for participants hired prior to September 1, 2006. From that date forward, the benefit was calculated prospectively under a cash balance formula with pay credits based on age plus service years and interest credits based on an as defined U.S. treasury rate. Effective July 3, 2017, in conjunction with the Plan, an amendment was made to the ISH Plan that fully vested all active participants as of January 1, 2017 and froze the retirement benefits effective August 31, 2017. As of August 31, 2017, all retirement benefits earned were fully preserved and will be paid in accordance with the ISH Plan and legal requirements.

The following table sets forth the projected benefit obligation, plan assets and funded status associated with the ISH Plan as of September 30, 2017 (in thousands):



Fair Value of Assets	$	37,464
Projected Benefit Obligation	(37,227		)
Funded Status as of July 3, 2017	237
Net Pension Income July 3, 2017 through August 31, 2017	832
Funded Status as of September 30, 2017⁽¹⁾	$	1,069

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(1)	Included in other assets in the accompanying condensed consolidated balance sheets.

The significant assumptions used in determining the projected benefit obligation and net pension income were as follows:



Discount rate	4.00	%
Rate of increase in compensations levels	4.50	%
CPI	3.00	%
Cash balance interest credits (compounded annually)	4.50	%
Expected long-term rate of return on plan assets	6.75	%

The future benefit payments expected to be paid in each of the next five fiscal years are as follows (in thousands):



2017⁽¹⁾	909
2018	1,711
2019	1,804
2020	1,885
2021	1,982

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(1) July 3, 2017 through December 31, 2017

The following table sets forth the projected benefit obligation, plan assets and funded status associated with the ISH Plan as of September 30, 2017 (in thousands):



Fair Value of Assets	$	37,464
Projected Benefit Obligation	(37,227		)
Funded Status as of July 3, 2017	237
Net Pension Income July 3, 2017 through August 31, 2017	832
Funded Status as of September 30, 2017⁽¹⁾	$	1,069

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(1)	Included in other assets in the accompanying condensed consolidated balance sheets.