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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
88
MULTI-EMPLOYER PLANS
The Company participates in three trustee-managed multi-employer defined benefit pension plans for union-represented
employees under certain collective bargaining agreements. The risks of participating in these multi-employer plans are different
from single-employer plans due to the following:
• 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 the Company chooses to stop participating in some of its multi-employer plans, the Company may be required to pay
those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
Contributions paid into the multi-employer plans are expensed as incurred. Multi-employer plan expense was as follows for
the years ended December 31, 2014, 2013 and 2012 (in millions):
For the Year Ended December 31,
2014 2013 2012
Multi-employer Plan Expense
Contributions to individually significant multi-employer plans(1) $ 3 $ 3 $ 3
Contributions to all other multi-employer plans 33 2
Withdrawal charge for individually significant multi-employer plans(2) —56 —
Withdrawal charge for all other multi-employer plans(3) —1 —
Total $ 6 $ 63 $ 5
____________________________
(1) Contributions to individually significant multi-employer plans for the year ended December 31, 2014 include amounts
contributed to the Soft Drink Industry Local Union 710 Pension Fund ("Local 710") which the Company fully withdrew and
ceased participation in the plan as of December 31, 2014. Local 710 was considered an individually significant multi-employer
when the contributions were made to the plan prior to the withdrawal and for the years ended December 31, 2014, 2013 and
2012.
(2) During the fourth quarter of 2013, the Company recognized a $56 million withdrawal charge for the withdrawal from the
Local 710. This item was presented as a multi-employer pension plan withdrawal in the Consolidated Statements of Income.
As the withdrawal charge represents the Company's best estimate of the potential amount of the quarterly assessment by Local
710 and the anticipated timing of those assessed payments, actual costs may differ from amounts recorded.
(3) During the second quarter of 2013, the Company recognized a $1 million withdrawal charge for one of the collective bargaining
units under a multi-employer pension plan based on the trustees' assessment. These charges were recorded as a component of
SG&A expenses in the Consolidated Statements of Income.