Multiemployer Pension Plans

12 Months Ended

Dec. 31, 2021

Multiemployer Plan, Pension, Significant [Abstract]

Multiemployer Pension Plans

MULTIEMPLOYER PENSION PLANS

Five of our 247 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, subject to certain limits, referred to as a withdrawal liability.

Both of the multiemployer pension plans in which we participate are designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in these plans for the year ended December 31, 2021, 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 2021 and 2020 is based on information that we received from the plans and is certified by each 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 plans are subject. A rehabilitation plan has been implemented for each plan. There have been no significant changes that affect the comparability of 2021, 2020, and 2019 contributions.

		Pension Protection Act Zone Status		Contributions of AutoNation ($ in millions) (1)							Expiration Date of Collective-Bargaining Agreement
Pension Fund	EIN/Pension PlanNumber	2021	2020	2021		2020		2019		Surcharge Imposed (2)
Automotive Industries Pension Plan	94-1133245 - 001	Red	Red	$	1.2	$	1.4	$	1.6	Yes	(3)
IAM National Pension Fund	51-6031295- 002	Red	Red	0.2		0.2		0.2		Yes	(4)
Other funds				0.1		0.1		0.1
Total contributions				$	1.5	$	1.7	$	1.9

(1)    Our stores were not listed in the Automotive Industries Pension Plan’s or IAM National Pension Fund’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2020 or 2019.

(2)    We paid surcharges to the Automotive Industries Pension Plan of $0.5 million, $0.6 million, and $0.8 million in 2021, 2020, and 2019 respectively. Surcharges to the IAM National Pension Fund were de minimis.

(3)    We are party to three collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One agreement has an expiration date of December 31, 2022, and one agreement has an expiration date of May 31, 2024. One agreement expired on December 31, 2021, and is currently extended during collective bargaining for a new agreement.

(4)    We are party to two collective-bargaining agreements that require contributions to the IAM National Pension Fund. Both agreements have an expiration date of August 30, 2023.

In the event that we cease participating in these plans, we could be assessed withdrawal liabilities, which we estimate are approximately $16 million for the Automotive Industries Pension Plan and approximately $4 million for the IAM National Pension Fund.