The company contributes
to multi-employer health, welfare and pension plans for employees covered
by collective bargaining agreements (approximately two thirds of total
employees). The health and welfare plans provide health care and disability
benefits to active employees and retirees. The pension plans provide defined
benefits to retired participants. The company charged to expense and contributed
the following amounts to these plans (in thousands):
Under
current legislation regarding multi-employer pension plans, a termination,
withdrawal or partial withdrawal from any multi-employer plan that is
in an under-funded status would render the company liable for a proportionate
share of such multi-employer plans’ unfunded vested liabilities. This
potential unfunded pension liability also applies to the company’s unionized
competitors who contribute to multi-employer plans. Based on the limited
information available from plan administrators, which the company cannot
independently validate, the company believes that its portion of the
contingent liability would be material to its financial position and
results of operations. The company’s unionized subsidiary has no intention
of taking any action that would subject the company to obligations under
the legislation.
The
company’s employees covered under collective bargaining agreements can
also participate in a contributory 401(k) plan. There are no employer
contributions to this plan.
Certain subsidiaries
also sponsor defined contribution plans, primarily for employees not covered
by collective bargaining agreements. The plans principally consist of
contributory 401(k) savings plans and noncontributory profit sharing plans.
Company contributions to the 401(k) savings plans consist of both a fixed
matching percentage and a discretionary amount. The nondiscretionary company
match is equal to 25 percent of the first six percent of an eligible employees
contributions. The company’s discretionary contributions for both the
401(k) savings plan and profit sharing plans are determined annually by
the Board of Directors of each participating company. Contributions for
each of the three years in the period ended December 31, 1999, were not
material to the operations of the company.
The company and
its operating subsidiaries each provide annual performance incentive awards
to nonunion employees which are based primarily on actual operating results
achieved compared to targeted operating results. Operating results in
1999, 1998 and 1997 include performance incentive accruals for nonunion
employees of $33.1 million,$8.8 million and $25.9 million. Performance
incentive awards for a year are primarily paid in the first quarter of
the following year.
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