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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
88
MULTI-EMPLOYER PLANS
The Company participates in four 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, 2013, 2012 and 2011 (in millions):
For the Year Ended December 31,
2013 2012 2011
Multi-employer Plan Expense
Contributions to individually significant multi-employer plans $ 3 $ 3 $ 2
Contributions to all other multi-employer plans 32 3
Withdrawal charge for individually significant multi-employer plans(1) 56 — —
Withdrawal charge for all other multi-employer plans(2) 1— 1
Total $ 63 $ 5 $ 6
____________________________
(1) During the fourth quarter of 2013, the Company recognized a $56 million withdrawal charge for one of the four multi-employer
pension plans it currently participates in as the Company intends to withdraw from the Soft Drink Industry Local Union 710
Pension Fund ("Local 710") during the upcoming collective bargaining session. 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.
(2) During the second quarter of 2011, a trustee-approved mass withdrawal under one multi-employer plan was triggered. As a
result of this action, the Company paid $1 million for the year ended December 31, 2011. 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.