Multiemployer Pension Plans

12 Months Ended

Dec. 31, 2013

Multiemployer Plans [Abstract]

Multiemployer Pension Plans

MULTIEMPLOYER PENSION PLANS

Five of our 228 stores participate in multiemployer pension plans. We contribute to these multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:

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

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

c. If we choose to stop participating in a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

One of the multiemployer pension plans in which we participate is designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in this plan for the year ended December 31, 2013, 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 most recent PPA zone status available in 2013 and 2012 is for the plan’s year end at December 31, 2012, and December 31, 2011, respectively. The zone status is based on 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. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject. A rehabilitation plan has been implemented for this plan. There have been no significant changes that affect the comparability of 2013, 2012, and 2011 contributions.

		Pension Protection Act Zone Status		Contributions of AutoNation ($ in millions) (1)							Expiration Date of Collective-Bargaining Agreement
Pension Fund	EIN/Pension PlanNumber	2013	2012	2013		2012		2011		Surcharge Imposed
Automotive Industries Pension Plan	94-1133245 - 001	Red	Red	$	0.7	$	0.6	$	0.5	No	(2)
Other funds				0.4		0.3		0.2
Total contributions				$	1.1	$	0.9	$	0.7

⁽¹⁾  Our stores were not listed in the Automotive Industries Pension Plan’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2012 or 2011.

⁽²⁾  We are party to two collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One expired May 31, 2011, and one expired June 30, 2011, and both are currently extended during collective bargaining for new agreements.

In the event that we decide to cease participating in this plan, we could be assessed a withdrawal liability. We currently do not have any plans that would trigger the withdrawal liability under this multiemployer pension plan.