Moody's maintains funded and unfunded noncontributory Defined Benefit Pension Plans. The U.S. DBPPs provide defined benefits using a cash balance formula based on years of service and career average salary for its employees or final average pay for selected executives. The Company also provides certain healthcare and life insurance benefits for retired U.S. employees. The post-retirement healthcare plans are contributory with participants' contributions adjusted annually; the life insurance plans are noncontributory. Moody's funded and unfunded U.S. pension plans, the U.S. post-retirement healthcare plans and the U.S. post-retirement life insurance plans are collectively referred to herein as the Post-Retirement Plans.

Effective January 1, 2008, the Company no longer offers DBPPs to U.S. employees hired or rehired on or after January 1, 2008. New U.S. employees will instead receive a retirement contribution of similar benefit value under the Company's Profit Participation Plan. Current participants of the Company's DBPPs continue to accrue benefits based on existing plan formulas.

The components of net periodic benefit expense related to the Post-Retirement Plans are as follows:

		000000			000000			000000		000000
	Three Months Ended September 30,
	Pension Plans						Other Post-Retirement Plans
	2011			2010			2011		2010
Components of net periodic expense
Service cost	$	3.7		$	3.3		$	0.3	$	0.2
Interest cost		3.3			3.1			0.2		0.2
Expected return on plan assets		(3.0	)		(2.7	)		—		—
Amortization of net actuarial loss from earlier periods		1.2			0.7			—		—
Amortization of net prior service costs from earlier periods		0.2			0.2			0.1		0.1
Settlement loss		1.6			—			—		—

Net periodic expense	$	7.0		$	4.6		$	0.6	$	0.5

		000000			000000			000000		000000
	Nine Months Ended September 30,
	Pension Plans						Other Post-Retirement Plans
	2011			2010			2011		2010
Components of net periodic expense
Service cost	$	11.3		$	10.1		$	0.9	$	0.6
Interest cost		9.9			9.1			0.6		0.6
Expected return on plan assets		(9.0	)		(8.0	)		—		—
Amortization of net actuarial loss from earlier periods		3.7			2.1			—		—
Amortization of net prior service costs from earlier periods		0.5			0.5			0.2		0.1
Settlement loss		1.6			—			—		—

Net periodic expense	$	18.0		$	13.8		$	1.7	$	1.3

The settlement loss in 2011 relates to a lump sum pension benefit payment of $6.9 million made from the Company's unfunded pension plan.

In March 2010, the Patient Protection and Affordable Care Act (the "Act") and the related reconciliation measure, which modifies certain provisions of the Act, were signed into law. The Act repeals the current rule permitting deduction of the portion of the drug coverage expense that is offset by the Medicare Part D subsidy. This provision of the Act is effective for taxable years beginning after December 31, 2010 and the reconciliation measure delays the aforementioned repeal of the drug coverage expense reduction by two years to December 31, 2012. The Company has accounted for the enactment of the two laws in the first quarter of 2010, for which the impact to the Company's income tax expense and net income was immaterial.

The Company contributed $13.6 million to its U.S. funded pension plan during the nine months ended September 30, 2011 and has no plan to make any additional contribution for the remainder of 2011. For unfunded plans, the Company made payments of $11.1 million, which includes a lump sum payment of $6.9 million as stated above, to its unfunded U.S. DBPP and $0.3 million to its U.S. other post-retirement plans during the nine months ended September 30, 2011. The Company presently anticipates making additional payments of $0.8 million related to its unfunded U.S. DBPPs and $0.3 million to its U.S. other post-retirement plans during the remainder of 2011.