Waste Management 2014 Annual Report Download - page 186

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(a) Unless otherwise noted in the table, the most recent Pension Protection Act zone status available in 2014 and 2013 is for the plan’s year-
end at December 31, 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. As defined in the Pension Protection Act of 2006, among other factors, plans reported as critical are generally less
than 65% funded and plans reported as endangered are generally less than 80% funded.
(b) The “FIP/RP Status” column indicates plans for which a Funding Improvement Plan (“FIP”) or a Rehabilitation Plan (“RP”) is either
pending or has been implemented.
(c) A multiemployer defined benefit pension plan that has been certified as endangered, seriously endangered or critical may begin to levy a
statutory surcharge on contribution rates. Once authorized, the surcharge is at the rate of 5% for the first 12 months and 10% for any
periods thereafter. Contributing employers, however, may eliminate the surcharge by entering into a collective bargaining agreement that
meets the requirements of the applicable FIP or RP.
(d) The Company was listed in the Form 5500 of the multiemployer plans considered to be individually significant as providing more than
5% of the total contributions for each of the following plans and plan years:
Year Contributions to Plan
Exceeded 5% of Total Contributions
(as of Plan’s Year End)
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund .................... 9/30/2013 and 9/30/2012
Suburban Teamsters of Northern Illinois Pension Plan ................................... 12/31/2013 and 12/31/2012
Teamsters Local 301 Pension Plan ................................................... 12/31/2013 and 12/31/2012
At the date the financial statements were issued, Forms 5500 were not available for the plan years ended in 2014.
(e) The Company believes there are no collective bargaining agreements remaining that require continuing contributions to this plan; however,
this point is the subject of pending litigation with the trustees for the Central States, Southeast and Southwest Areas Pension Plan.
Our portion of the projected benefit obligation, plan assets and unfunded liability of the multiemployer
pension plans is not material to our financial position. However, the failure of participating employers to remain
solvent could affect our portion of the plans’ unfunded liability. Specific benefit levels provided by union
pension plans are not negotiated with or known by the employer contributors.
In connection with our ongoing renegotiations of various collective bargaining agreements, we may discuss
and negotiate for the complete or partial withdrawal from one or more of these pension plans. Further, business
events, such as the discontinuation or nonrenewal of a customer contract, the decertification of a union, or
relocation, reduction or discontinuance of certain operations, which result in the decline of Company
contributions to a multiemployer pension plan could trigger a partial or complete withdrawal. In the event of a
withdrawal, we may incur expenses associated with our obligations for unfunded vested benefits at the time of
the withdrawal. In 2014, 2013 and 2012, we recognized aggregate charges of $4 million, $5 million and
$10 million, respectively, to “Operating” expenses for the withdrawal of certain bargaining units from
multiemployer pension plans. Refer to Note 11 for additional information related to our obligations to
multiemployer plans for which we have withdrawn or partially withdrawn.
Multiemployer Plan Benefits Other Than Pensions — During the years ended December 31, 2014, 2013 and
2012 the Company made contributions of $34 million, $34 million and $36 million, respectively, to
multiemployer health and welfare plans that also provide other postretirement employee benefits. Funding of
benefit payments for plan participants are made at rates as negotiated in the respective collective bargaining
agreements as costs are incurred.
11. Commitments and Contingencies
Financial Instruments — We have obtained letters of credit, surety bonds and insurance policies and have
established trust funds and issued financial guarantees to support tax-exempt bonds, contracts, performance of
landfill final capping, closure and post-closure requirements, environmental remediation and other obligations.
Letters of credit generally are supported by our $2.25 billion revolving credit facility and other credit facilities
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