OTHER LIABILITIES
Other Accrued Liabilities
A summary of other accrued liabilities as of December 31 is as follows:
|
| | | | | | | |
| 2013 | | 2012 |
Accrued payroll and benefits | $ | 172.7 |
| | $ | 157.1 |
|
Accrued fees and taxes | 121.3 |
| | 124.2 |
|
Self-insurance reserves, current portion | 136.6 |
| | 135.5 |
|
Ceded insurance reserves, current portion | 14.8 |
| | 16.2 |
|
Accrued dividends | 93.7 |
| | 84.9 |
|
Current tax liabilities | — |
| | 2.1 |
|
Restructuring liabilities | 1.8 |
| | 9.0 |
|
Accrued professional fees and legal settlement reserves | 28.3 |
| | 34.6 |
|
Other | 72.1 |
| | 60.0 |
|
Total | $ | 641.3 |
| | $ | 623.6 |
|
Other accrued liabilities includes the fair value of fuel and recycling commodity hedges of $0.7 million and $1.6 million as of December 31, 2013 and 2012, respectively.
Other Long-Term Liabilities
A summary of other long-term liabilities as of December 31 is as follows:
|
| | | | | | | |
| 2013 | | 2012 |
Deferred compensation plan | $ | 67.0 |
| | $ | 50.0 |
|
Pension and other post-retirement liabilities | 6.5 |
| | 12.7 |
|
Legal settlement reserves | 27.3 |
| | 36.4 |
|
Ceded insurance reserves | 46.9 |
| | 59.7 |
|
Withdrawal liability - Central States Pension and Other Funds | 171.4 |
| | 30.7 |
|
Other | 59.9 |
| | 31.4 |
|
Total | $ | 379.0 |
| | $ | 220.9 |
|
Other long-term liabilities includes the fair value of interest rate swaps of $4.4 million as of December 31, 2013.
Self-Insurance Reserves
In general, our self-insurance reserves are recorded on an undiscounted basis. However, our estimate of the self-insurance liabilities assumed in the Allied acquisition have been recorded at fair value, and therefore have been discounted to present value using a rate of 9.75%. Discounted reserves are accreted to non-cash interest expense through the period that they are paid.
Our liabilities for unpaid and incurred but not reported claims as of December 31, 2013 (which include claims for workers’ compensation, general liability, vehicle liability and employee health care benefits) were $431.5 million under our risk management program and are included in other accrued liabilities and self-insurance reserves, net of current portion in our consolidated balance sheets. While the ultimate amount of claims incurred is dependent on future developments, we believe recorded reserves are adequate to cover the future payment of claims; however, it is possible that these recorded reserves may not be adequate to cover the future payment of claims. Adjustments, if any, to estimates recorded resulting from ultimate claim payments will be reflected in our consolidated statements of income in the periods in which such adjustments are known. The following table summarizes the activity in our self-insurance reserves for the years ended December 31:
|
| | | | | | | | | | | |
| 2013 | | 2012 | | 2011 |
Balance at beginning of year | $ | 426.4 |
| | $ | 418.3 |
| | $ | 417.2 |
|
Additions charged to expense | 379.1 |
| | 385.5 |
| | 367.3 |
|
Payments | (377.2 | ) | | (381.6 | ) | | (372.1 | ) |
Accretion expense | 3.2 |
| | 4.2 |
| | 5.9 |
|
Balance at end of year | 431.5 |
| | 426.4 |
| | 418.3 |
|
Less: current portion | (136.6 | ) | | (135.5 | ) | | (114.4 | ) |
Long-term portion | $ | 294.9 |
| | $ | 290.9 |
| | $ | 303.9 |
|
