XML 62 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2012
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Employee Benefit Plans
EMPLOYEE BENEFIT PLANS
The Company sponsors a frozen defined benefit pension plan, which includes both a qualified and non-qualified portion, for eligible employees (the Cash Balance Plan) in North America. The Company recorded a liability of $90.7 and $97.1 as of June 30, 2012 and December 31, 2011, respectively, for the Cash Balance Plan. In addition, the Company sponsors an unfunded defined benefit plan for certain eligible employees in the Philippines. The Company recorded a liability of $18.1 and $14.9 as of June 30, 2012 and December 31, 2011, respectively, for the Philippines plan. Components of pension cost for these plans are as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
Interest cost on projected benefit obligation
$
2.9

 
$
3.0

 
$
5.9

 
$
6.0

Service cost
2.1

 
1.0

 
3.5

 
1.9

Curtailment benefit
(0.2
)
 
—

 
(0.2
)
 
—

Expected return on plan assets
(2.9
)
 
(2.8
)
 
(5.9
)
 
(5.6
)
Amortization and deferrals - net
2.8

 
1.7

 
5.6

 
3.5

Pension cost
$
4.7

 
$
2.9

 
$
8.9

 
$
5.8


The Company recognized a $0.2 curtailment benefit during the second quarter of 2012 related to the impact of the sale of the Information Management business. The Company contributed $10.8 to fund the Cash Balance Plan during the first six months of 2012.
The Company also sponsors a non-qualified, unfunded executive deferred compensation plan and a supplemental, non-qualified, unfunded plan for certain senior executive officers. Components of pension cost for the unfunded executive pension plans are as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
Interest cost on projected benefit obligation
$
0.2

 
$
0.3

 
$
0.4

 
$
0.7

Service cost
—

 
0.2

 
0.1

 
0.3

Curtailment benefit
(0.2
)
 
—

 
(0.2
)
 
(1.5
)
Amortization and deferrals - net
(0.1
)
 
—

 
(0.1
)
 
—

Pension cost
$
(0.1
)
 
$
0.5

 
$
0.2

 
$
(0.5
)

Pension cost for the unfunded executive plans related to discontinued operations included in the table above was immaterial for the three and six months ended June 30, 2012 and 2011. The Company recognized a $0.2 curtailment benefit during the second quarter of 2012 related to the impact of the sale of the Information Management business and a $1.5 curtailment benefit during the first quarter of 2011 related to the resignation of a senior executive.
The Company maintains investments in certain securities, included within short-term investments in the Consolidated Balance Sheets, which are held in a grantor trust for the benefit of participants of the unfunded executive deferred compensation plan. This investment was made in securities reflecting the hypothetical investment balances of plan participants. As of June 30, 2012, the Company maintained investment securities with a fair value of $19.2 classified as trading securities.
The Company sponsors postretirement health and life insurance plans for certain eligible employees. During the second quarter of 2012, the Company recognized a $3.8 curtailment benefit related to these plans as a result of the sale of the Information Management business. Further, during the second quarter of 2011, the Company amended certain components of the postretirement health and life insurance plans to reduce certain benefits. The plan amendments constitute negative amendments. As a result of the plan amendments, the accumulated postretirement benefit obligation decreased approximately $20, the impact of which will be recognized as a reduction to net periodic benefit cost over the remaining future service years of the active participants over a weighted-average period of approximately 3 years.