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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies  
Commitments and Contingencies

Note 14—Commitments and Contingencies

 

Leases—The Company leases certain property and equipment under non-cancelable operating leases which expire at various dates through 2019.  The leases require the Company to pay all taxes, insurance, maintenance, and utilities and are classified as operating leases in accordance with ASC Topic 840 “Leases”.  Leases identified below as related party leases represent property with entities related through common ownership by stockholders, officers, and directors of the Company.

 

The future minimum lease payments required under non-cancelable operating leases are as follows:

 

For the Years Ending
December 31,

 

Real
Property

 

Real
Property
(Related
Party)

 

Equipment

 

Total
Commitments

 

2013

 

$

2,728

 

$

1,597

 

$

7,207

 

$

11,532

 

2014

 

2,001

 

1,563

 

6,041

 

9,605

 

2015

 

1,829

 

941

 

4,539

 

7,309

 

2016

 

1,465

 

775

 

2,418

 

4,658

 

2017

 

1,392

 

786

 

483

 

2,661

 

Thereafter

 

2,944

 

2,308

 

—

 

5,252

 

 

 

$

12,359

 

$

7,970

 

$

20,688

 

$

41,017

 

 

Total lease expense during the years ended December 31, 2012, 2011 and 2010 amounted to approximately $10,684, $9,530 and $9,856, respectively, including amounts paid to related parties of $1,342, $1,278 and $1,151, respectively.

 

Withdrawal liability for multiemployer pension plan—In November 2011, Rockford, ARB and Q3C, along with other members of the Pipe Line Contractors Association (“PLCA”), withdrew from the Central States Southeast and Southwest Areas Pension Fund multiemployer pension plan (the “Plan”). In connection with the withdrawal, the Company has recorded an estimated liability of $7,500 based on information provided by the Plan. The Company withdrew from the Plan in order to mitigate its liability in connection with the Plan, which is significantly underfunded. The Plan has asserted that the PLCA members did not affect a withdrawal in 2011, although the Company believes that a legally effective withdrawal occurred in November 2011 and has recorded the withdrawal liability on that basis. If the Plan were to prevail in its assertion and the withdrawal of the Company were deemed to occur after 2011, the amount of any withdrawal liability would be expected to increase

 

Letters of credit—As of December 31, 2012 and 2011 the Company had total letters of credit outstanding of approximately $6,168 and $11,798, respectively.  The outstanding amounts include the U.S. dollar equivalents for letters of credit issued in Canadian dollars.

 

Litigation—The Company is subject to claims and legal proceedings arising out of its business. Management believes that the Company has meritorious defenses to the claims. Although management is unable to ascertain the ultimate outcome of such matters, after review and consultation with counsel and taking into consideration relevant insurance coverage and related deductibles, management believes that the outcome of these matters will not have a materially adverse effect on the consolidated financial position of the Company.

 

Bonding—As of December 31, 2012, 2011 and 2010, the Company had bid and completion bonds issued and outstanding totaling approximately $1,298,589, $1,105,933 and $849,288, respectively.

 

Contingent Consideration—Earnouts related to acquisitions as discussed in Note 4