Employee Benefit Plans

Profit Sharing and 401(k) Plan: The Profit Sharing and 401(k) Plan (the “401(k) Plan”) is a defined contribution plan covering all employees except employees covered by collective bargaining agreements and employees of our consolidated construction joint ventures. Each employee’s combined before-tax and Roth 401(k) after- tax contributions cannot exceed 50% of their eligible pay or the 2014 IRS annual contribution limit of $17,500. Our 401(k) matching contributions can be up to 6% of an employee’s gross pay and are available at the discretion of the Board of Directors.

Profit sharing contributions from the Company may be made to the 401(k) Plan in an amount determined by the Board of Directors. We made no profit sharing contributions during the years ended December 31, 2014, 2013 and 2012. Our 401(k) matching contributions to the 401(k) Plan for the years ended December 31, 2014, 2013 and 2012 were $5.0 million, $4.1 million and $2.8 million, respectively. During the year ended December 31, 2013, eligible Kenny employees that had at least 1,000 hours of service as of March 1, 2013 and were actively employed on March 28, 2013 received a one-time profit sharing contribution of approximately $0.1 million in total, which was equivalent to the Company match during the period they were unable to contribute to the Plan.

Non-Qualified Deferred Compensation Plan: We offer a Non-Qualified Deferred Compensation Plan (“NQDC Plan”) to a select group of our highly compensated employees. The NQDC Plan provides participants the opportunity to defer payment of certain compensation as defined in the NQDC Plan. In October 2008, a Rabbi Trust was established to fund our NQDC Plan obligation and was fully funded as of December 31, 2014. The assets held by the Rabbi Trust at December 31, 2014 and 2013 are substantially in the form of Company-owned life insurance and are included in other noncurrent assets on the consolidated balance sheets. As of December 31, 2014, there were 52 active participants in the NQDC Plan. NQDC Plan obligations were $21.7 million and $23.6 million as of December 31, 2014 and 2013, respectively.

Multi-employer Pension Plans: Four of our wholly-owned subsidiaries, Granite Construction Company, Granite Construction Northeast, Inc., Granite Infrastructure Constructors, Inc., and Kenny Construction Company contribute to various multi-employer pension plans on behalf of union employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:


•	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 stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.


•	If we chose to stop participating in some of the multi-employer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

The following table presents our participation in these plans (dollars in thousands):



	Pension Plan Employer Identification Number	Pension Protection Act (“PPA”) Certified Zone Status¹		FIP / RP Status Pending / Implemented²	Contributions						Surcharge Imposed	Expiration Date of Collective Bargaining Agreement³
Pension Trust Fund	Pension Plan Employer Identification Number	2014	2013	FIP / RP Status Pending / Implemented²	2014		2013		2012		Surcharge Imposed	Expiration Date of Collective Bargaining Agreement³
Locals 302 and 612 Operating Engineers-Employers Retirement Fund	91-6028571	Green	Green	No	$	3,043	$	3,260	$	2,368	No	5/31/2015 12/31/2015 12/31/2016
Operating Engineers Pension Trust Fund	95-6032478	Red	Red	Yes	3,001		2,768		2,285		No	6/30/2016
Pension Trust Fund for Operating Engineers Pension Plan	94-6090764	Red	Orange	Yes	9,590		8,193		8,030		No	6/15/2015 6/30/2015 10/31/2015 6/30/2016 9/30/2016 5/15/2017 6/30/2017 1/31/2018
Laborers Pension Trust Fund for Northern California	94-6277608	Yellow	Yellow	Yes	2,682		2,500		2,320		No	6/30/2019
Laborers Pension Fund	36-2514514	Green	Green	No	2,230		1,608		—		No	5/31/2017
All other funds (49)					8,876		8,836		7,720
			Total Contributions:		$	29,422	$	27,165	$	22,723

¹The most recent PPA zone status available in 2014 and 2013 is for the plan’s year-end during 2013 and 2012, 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, plans in the orange zone are less than 80 percent funded and have an Accumulated Funding Deficiency in the current year or projected into the next six years, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded.

²The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented.

³Lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. Pension trust funds with a range of expiration dates have various collective bargaining agreements.

We currently have no intention of withdrawing from any of the multi-employer pension plans in which we participate that would result in a significant withdrawal liability.