13. Employee Benefit Plans

The Company sponsors a defined contribution plan that provides retirement benefits to eligible employees who elect to participate (the “Dycom Plan”). Under the plan, participating employees may defer up to 75% of their base pre-tax eligible compensation up to the IRS limits. The Company contributes 30% of the first 5% of base eligible compensation that a participant contributes to the plan and may make discretionary matching contributions from time to time. The Company’s contributions were $4.8 million, $4.0 million, and $1.9 million related to the fiscal 2016, 2015, and 2014 periods, respectively.

In connection with the businesses acquired in fiscal 2013, the Company assumed the obligation to make future contributions under an employee benefit plan in effect for certain hourly employees. Contributions for fiscal 2015 and 2014 under this plan were $0.8 million and $1.2 million, respectively. This plan was merged into the Dycom Plan in the fourth quarter of fiscal 2015.

Certain of the Company’s subsidiaries contribute amounts to multiemployer defined benefit pension plans under the terms of collective bargaining agreements (“CBA”) that cover employees represented by unions. Contributions are generally based on fixed amounts per hour per employee for employees covered by the plan. Participating in a multiemployer plan entails risks different from single-employer plans in the following aspects:


•	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 allocated to the remaining participating employers; and


•	if the Company stops participating in the multiemployer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan. This payment is referred to as a withdrawal liability.

The information available to the Company about the multiemployer plans in which it participates is generally dated due to the nature of the reporting cycle of multiemployer plans and legal requirements under the Employee Retirement Income Security Act (“ERISA”) as amended by the Multiemployer Pension Plan Amendments Act (“MPPAA”). Based upon the most recently available annual reports, the Company’s contribution to each of the plans was less than 5% of each plans’ total contributions. The Pension, Hospitalization and Benefit Plan of the Electrical Industry – Pension Trust Fund (“the Plan”) was considered individually significant and is presented separately below. All other plans are presented in the aggregate in the following table (dollars in thousands):



		PPA Zone Status⁽¹⁾			Company Contributions							Expiration Date of CBA
Fund	EIN	2015	2014	FIP/RP Status⁽²⁾	2016		2015		2014		Surcharge Imposed	Expiration Date of CBA
The Plan	13-6123601	Green	Green	No	$	3,057	$	3,852	$	3,044	No	05/05/2016
Other Plans					622		934		635			Various
Total Contributions					$	3,679	$	4,786	$	3,679

⁽¹⁾ The most recent Pension Protection Act (the “PPA”) zone status was provided by the Plan for Plan years ending September 30, 2015 and September 30, 2014, respectively. The zone status is based on information provided by the Plan and is certified by the Plan’s actuary. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded.

⁽²⁾ The “FIR/RP Status” column indicates plans for which a financial improvement plan (FIP) or rehabilitation plan (RP), as required by the Internal Revenue Code, is either pending or has been implemented.

In the fourth quarter of fiscal 2016, one of the Company’s subsidiaries, which previously contributed to the Plan, ceased operations. The Company does not expect to incur a withdrawal liability under the Plan because the Company believes there is a statutory exemption available under ERISA for multiemployer pension plans that primarily cover employees in the building and construction industry. However, there can be no assurance that the Plan will not make a claim for withdrawal liability or that, if made, the Company will be successful in asserting the statutory exemption as a defense.