Note 15 — 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 $48.8 million, $46.9 million, and $34.2 million, to multiemployer pension plans for the years ended December 31, 2018, 2017 and 2016, respectively. These costs were charged to the related construction contracts in process. Contributions during 2017 increased from 2016 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 12—“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 38 pension plans. Based upon the most recent and available plan financial information, none of the significant pension plans we contributed to below listed us in the plan’s Form 5500 as providing more than 5.0% of the plan’s total contributions during the years ended December 31, 2018, 2017, and 2016.

Our participation in significant plans for the years ended December 31, 2018, 2017 and 2016 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

2018

2017

Implemented

Imposed

Date

2018

2017

2016

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

36-6052390/001

Green as of

February 1, 2017

Green as of
February 1, 2016

5/31/2020

6,643

7,562

5,373

Southern California Pipetrades Trust Funds

51-6108443/001

Green as of January 1, 2017

Green as of January 1, 2016

9/30/2022

5,122

3,219

2,614

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

52-6074345/001

Red as of January 1, 2017

Red as of January 1, 2016

5/31/2020

3,967

4,658

2,415

Laborers Pension Trust Fund for Northern California

94-6277608/001

Green as of June 1, 2017

Yellow as of

June 1, 2016

6/30/2019

3,793

2,945

3,598

Plumbers & Pipefitters National Pension Fund

52-6152779

Yellow as of

July 1 2017

Yellow as of July 1 2017

9/30/2022

3,686

2,548

2,161

Construction Laborers Pension Trust for Southern California

43-6159056/001

Green as of January 1, 2017

Green as of January 1, 2016

6/30/2022

2,873

2,393

2,742

Minnesota laborers Pension Fund

41-6159599/001

Green as of January 1, 2017

Green as of January 1, 2016

6/01/2019

2,565

2,137

2,018

Operating Engineer Trust Funds

95-6032478/001

Yellow as of

July 1, 2017

Yellow as of

July 1, 2016

6/30/2019

2,363

2,448

1,643

Pipeline Industry Benefit Fund

73-6146433/001

Green as of

January 1, 2017

Green as of

January 1, 2016

5/31/2020

1,988

6,050

2,740

Contributions to significant plans

33,000

33,960

25,304

Contributions to other multiemployer plans

15,790

12,975

8,879

Total contributions made

48,790

46,935

34,183