MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS

9 Months Ended

Sep. 30, 2014

MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS

MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS

NOTE 15.MULTI-EMPLOYER DEFINED BENEFIT PENSION PLANS

Certain of the Company’s wholly-owned subsidiaries, acquired with the acquisition of EQ on June 17, 2014, participate in seven multi-employer defined benefit pension plans under the terms of collective bargaining agreements covering most of the subsidiaries’ union employees. Contributions are determined in accordance with the provisions of negotiated labor contracts and are generally based on stipulated rates per hours worked. Benefits under these plans are generally based on compensation levels and years of service.

The financial risks of participating in multi-employer plans are different from single employer defined benefit pension plans in the following respects:

· Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.

· If a participating employer discontinues contributions to a plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

· If a participating employer chooses to stop participating in a plan, a withdrawal liability may be created based on the unfunded vested benefits for all employees in the plan.

Information regarding significant multi-employer pension benefit plans in which the Company participates is shown in the following table:

			Pension Protection Act		Contribution Made by EQ (1)
	Plan Employer	Plan	Certified Zone Status		$s in thousands
Name of Plan	ID Number	Number	2013	2012	2013		2012
Operating Engineers Local 324 Pension Fund	38-1900637	001	Red	Red	$	1,061	$	874
Contributions to multi-employer plans not individually significant					320		249
Total contributions made by EQ (1)					$	1,381	$	1,123

(1)  Represents contributions made prior to the Company’s acquisition of EQ on June 17, 2014.

Based on information as of April 30, 2013 and 2012, the year end of the Operating Engineers Local 324 Pension Fund (the “Local 324 Plan”), the Company’s contributions made to the Local 324 Plan represented less than 5 percent of total contributions received by the Local 324 Plan during the 2013 and 2012 plan years.

The certified zone status in the table above is defined by the Department of Labor and the Pension Protection Act of 2006 and represents the level at which the plan is funded. Plans in the red zone are 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 certified zone status is as of the Local 324 Plan’s year end of April 30, 2013 and 2012.

A financial improvement or rehabilitation plan, as defined under ERISA, was adopted by the Local 324 Plan on March 17, 2011 and the Rehabilitation Period began May 1, 2013.

As of September 30, 2014, approximately 30% of the EQ workforce was employed under union collective bargaining agreements with the Local 324 Operating Engineers union. On September 30, 2014, a collective bargaining agreement covering 113 employees at the Taylor, MI facility expired without being renewed, although renewal negotiations are ongoing. The remaining collective bargaining agreements expire on November 30, 2015, and April 30, 2017.