Annual report pursuant to Section 13 and 15(d)

Multiemployer Pension Plans

v3.7.0.1
Multiemployer Pension Plans
12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Multiemployer Plans [Text Block]
Note 20 - Multiemployer Pension Plans
 
The Company participates in approximately 50 multiemployer pension plans (“MEPPs”) that provide pension benefits to certain union employees in accordance with various collective bargaining agreements (“CBAs”). As of December 31, 2016, approximately 53.6% of the Company’s employees are members of collective bargaining units. As one of many employers who are obligated to contribute to these MEPPs, the Company is responsible with the other participating employers for any unfunded pension liabilities. The Company’s contributions to a particular MEPP are established by the applicable CBAs; however, the Company’s required contributions to a MEPP may increase based on the funded status of the individual MEPP and the legal requirements of the Pension Protection Act of 2006 (the “PPA”), which requires substantially underfunded MEPPs to implement a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) to improve their funded status. Factors that could impact the funded status of a MEPP include, without limitation, investment performance, changes in participant demographics, a decline in the number of actively employed covered employees, a decline in the number of contributing employers, changes in actuarial assumptions and the utilization of extended amortization provisions. If a contributing employer stops contributing to a MEPP, the unfunded obligations of the MEPP may be borne by the remaining contributing employers. Assets contributed to an individual MEPP are pooled with contributions made by other contributing employers; the pooled assets will be used to provide benefits to the Company’s employees and the employees of the other contributing employers.
 
A FIP or RP requires a particular MEPP to adopt measures to correct its underfunded status. These measures may include, but are not limited to an increase in a contributing employer’s contribution rate, or changes to the benefits paid to retirees. In addition, the PPA requires that a 5% surcharge be levied on employer contributions for the first year commencing shortly after the date the employer receives notice that the MEPP is in critical status and a 10% surcharge on each succeeding year until a CBA is in place with terms and conditions consistent with the RP.
 
If a MEPP has unfunded pension liabilities, the Company could be obligated to make additional payments to a MEPP if the Company either ceases to have an obligation to contribute to the MEPP under a CBA or significantly reduces the Company’s contributions to the MEPP because they reduce the number of employees who are covered by the relevant MEPP for various reasons, including, but not limited to, layoffs or closure of a subsidiary. The amount of such payments (known as a complete or partial withdrawal liability) would equal the Company’s proportionate share of the MEPP’s unfunded vested benefits. Based on the information available to the Company from the MEPPs, the Company believes that some of the MEPPs to which they contribute are underfunded and are in “critical” or “endangered” status as those terms are defined by the PPA. Due to uncertainty regarding future factors that could trigger withdrawal liability, as well as the absence of specific information regarding the MEPPs’ current financial situation, the Company is unable to determine (a) the amount and timing of any future withdrawal liability, if any, and (b) whether the Company’s participation in these MEPPs could have a material adverse impact on our financial condition, results of operations or liquidity.
 
The nature and diversity of the Company’s business may result in volatility of the amount of contributions to a particular MEPP for any given period. That is because, in any given market, the Company could be working on a significant project and/or projects, which could result in an increase in the direct labor force and a corresponding increase in contributions to the MEPP(s) dictated by the applicable CBA. When that particular project(s) finishes and is not replaced, the level of direct labor would also decrease, as would the level of contributions to the particular MEPP(s). Additionally, the level of contributions to a particular MEPP could also be affected by the terms of the CBA, which could require at a particular time, an increase in the contribution rate and/or surcharges.
  
Total contributions to the various union construction industry MEPP, welfare, training and other benefits programs in accordance with the CBAs was $16.7 million for the period from January 1, 2016 through July 19, 2016 (Predecessor) and $16.1 million for the period from July 20, 2016 through December 31, 2016 (Successor) and $26.5 million in 2015.
 
The following table lists data related to the MEPPS in which the Company’s contributions exceeded $100 thousand in 2016 or 2015. Additionally, this table also lists all MEPPs to which the Company contributed in excess of $40 thousand in 2016 or 2015 for MEPPs in either the critical or endangered status. Additionally, this table also lists the PPA Zone Status for MEPPS as the critical status (red zone-less than 65% funded), the endangered status (yellow-less than 80% funded) or neither critical or endangered status (green-greater than 80% funded). The zone status represents the most recent available information for the respective MEPP, which is 2015 for the 2016 year. These dates may not correspond with the Company’s calendar year contributions. The zone status is based on information received from the MEPPs and is certified by the MEPPs’ actuaries. The “FIP/RP Status” column indicates MEPPs for which a financial improvement plan (FIP) or rehabilitation plan (RP) has been adopted or implemented. 
 
Pension Fund
 
Operating
Location
 
EIN/Pension
Plan
Number
 
PPA Zone Status 2015
 
FIP/RP Status
 
2016
 
2015
 
Contributions
greater than
5% of total
contributions
 
Surcharge
Imposed
 
Expiration
date of
CBA
Plumbers & Pipefitters Local 189, Local Pension Fund
 
OH
 
31-0894807
 
Green
 
N/A
 
 
700
 
 
 
677
 
 
Yes
 
N/A
 
May-19
Sheet Metal Workers’ Local Union 24 & 98
 
OH
 
31-6171213
 
Yellow
 
Implemented
 
 
550
 
 
 
380
 
 
Yes
 
N/A
 
May-18
Pipefitter Local 537
 
MA
 
51-6030859
 
Green
 
N/A
 
 
778
 
 
 
1025
 
 
No
 
N/A
 
Aug-17
Sheet Metal Local #105 Orange Empire, Sheet Metal Workers Trust Fund
 
CA
 
95-6052257
 
Yellow
 
N/A
 
 
1383
 
 
 
911
 
 
No
 
N/A
 
Jun-20
Local #602 Steamfitters
 
DC
 
52-2187219
 
Green
 
N/A
 
 
767
 
 
 
818
 
 
No
 
N/A
 
Jul-16
Sheet Metal Local #80
 
MI
 
38-6105633
 
Yellow
 
Implemented
 
 
1384
 
 
 
667
 
 
No
 
N/A
 
May-18
Steamfitters Local Union No 420 Pension Fund
 
PA
 
23-2004424
 
Red
 
Implemented
 
 
510
 
 
 
375
 
 
No
 
N/A
 
Apr-17
Plumbers & Pipefitters Local Union No. 333
 
MI
 
38-3545518
 
Yellow
 
Implemented
 
 
645
 
 
 
523
 
 
No
 
N/A
 
May-18
Pipefitters Local #636
 
MI
 
38-3009873
 
Yellow
 
Implemented
 
 
739
 
 
 
374
 
 
No
 
N/A
 
May-22
Pipefitters Local 250, Southern California Pipe Trades
 
CA
 
51-6108443
 
Green
 
N/A
 
 
657
 
 
 
370
 
 
No
 
N/A
 
Jun-18
Plumbers & Pipefitters Local 250 National Pension Fund
 
CA
 
52-6152779
 
Yellow
 
Implemented
 
 
264
 
 
 
158
 
 
No
 
N/A
 
Jun-18
Sheet Metal Workers National Benefit Funds
 
CA
 
52-6112463
 
Yellow
 
 Implemented
 
 
577
 
 
 
399
 
 
No
 
N/A
 
Jun-20
Sheet Metal Workers Local 24 Dayton National Benefit Funds
 
OH
 
52-6112463
 
Yellow
 
 Implemented
 
 
89
 
 
 
0
 
 
No
 
N/A
 
May-20
Sheet Metal Workers Local 24 National Benefit Funds
 
OH
 
52-6112463
 
Yellow
 
 Implemented
 
 
254
 
 
 
164
 
 
No
 
N/A
 
May-18
Sheet Metal Workers' National Benefit Funds
 
PA
 
52-6112463
 
Yellow
 
Implemented
 
 
247
 
 
 
215
 
 
No
 
N/A
 
Jun-19
Plumbers & Pipefitters Local 5 National Pension Fund
 
MD
 
52-6152779
 
Yellow
 
Implemented
 
 
280
 
 
 
341
 
 
No
 
N/A
 
Jul-18
Plumbers Local #98
 
MI
 
38-3031916
 
Red
 
Implemented
 
 
1517
 
 
 
284
 
 
No
 
N/A
 
May-19
Plumbers & Pipefitters Local 189 National Pension Fund
 
OH
 
52-6152779
 
Yellow
 
Implemented
 
 
238
 
 
 
182
 
 
No
 
N/A
 
May-19
Local 26 Electricians, Local 26 IBEW NECA Trust Funds
 
DC
 
52-6117917
 
Green
 
N/A
 
 
170
 
 
 
202
 
 
No
 
N/A
 
May-18
Steamfitters Local #449 Multiple Funds
 
PA
 
25-6032401
 
Green
 
N/A
 
 
168
 
 
 
179
 
 
No
 
N/A
 
May-18
Plumbers & Pipefitters Local 577
 
OH
 
31-6134953
 
Red
 
Implemented
 
 
172
 
 
 
271
 
 
No
 
N/A
 
May-18
Local ARCA Pipe Refrigeration
 
CA
 
95-6035386
 
Green
 
N/A
 
 
99
 
 
 
140
 
 
No
 
N/A
 
Aug-19
Local 27 Plumbers
 
PA
 
25-6034928
 
Green
 
N/A
 
 
74
 
 
 
134
 
 
No
 
N/A
 
May-18
Plumbers & Pipefitters Local #354 Combined Funds
 
PA
 
25-6148991
 
Yellow
 
Implemented
 
 
107
 
 
 
91
 
 
No
 
N/A
 
May-20
Sheet Metal Workers Local Union #7
 
MI
 
38-6234066
 
Yellow
 
Implemented
 
 
58
 
 
 
175
 
 
No
 
N/A
 
Apr-20
Local 596 Electricians, Local 596 IBEW NECA
 
WV
 
55-0675342
 
Green
 
N/A
 
 
12
 
 
 
128
 
 
No
 
N/A
 
May-15
Plumbers & Pipefitters Local 354 National Pension Fund
 
PA
 
52-6152779
 
Yellow
 
Implemented
 
 
84
 
 
 
68
 
 
No
 
N/A
 
May-20
Plumbers & Pipefitters Local 537 National Pension Fund
 
MA
 
52-6152779
 
Yellow
 
Implemented
 
 
40
 
 
 
89
 
 
No
 
N/A
 
Aug-17
Plumbers & Pipefitters Local 577 National Pension Fund
 
OH
 
52-6152779
 
Yellow
 
Implemented
 
 
31
 
 
 
81
 
 
No
 
N/A
 
May-18
Local 307
 
MD
 
52-1057284
 
Green
 
N/A
 
 
105
 
 
 
212
 
 
No
 
N/A
 
May-17
Sheet Metal Workers Local 24 Dayton
 
OH
 
31-6171353
 
Yellow
 
Implemented
 
 
166
 
 
 
0
 
 
No
 
N/A
 
May-20
Plumbers & Pipefitters Local 162
 
OH
 
31-6125999
 
Yellow
 
Implemented
 
 
65
 
 
 
2
 
 
No
 
N/A
 
May-19