Employee Benefit Plans

6 Months Ended

Jun. 30, 2011

Employee Benefit Plans

Employee Benefit Plans

(6) EMPLOYEE BENEFIT PLANS

The Company sponsors a frozen defined benefit pension plan, which included both a qualified and non-qualified portion, for eligible employees (the Cash Balance Plan) in North America. The Company has recorded a liability of $79.4 and $80.6 as of June 30, 2011 and December 31, 2010, 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 has recorded a liability of $12.0 and $9.5 as of June 30, 2011 and December, 31, 2010, 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,
	2011			2010			2011			2010
Interest cost on projected benefit obligation	$	3.0		$	3.1		$	6.0		$	6.2
Service cost		1.0			0.6			1.9			1.3
Expected return on plan assets		(2.8	)		(3.1	)		(5.6	)		(6.1	)
Amortization and deferrals - net		1.7			1.7			3.5			3.2
Pension cost	$	2.9		$	2.3		$	5.8		$	4.6

The Company contributed $3.8 to fund the Cash Balance Plan during the first six months of 2011 and expects to contribute an additional $6.8 during the third quarter of 2011.

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,
	2011		2010			2011			2010
Service cost	$	0.2	$	0.3		$	0.3		$	0.7
Interest cost on projected benefit obligation		0.3		0.5			0.7			1.0
Curtailment loss		—		—			(1.5	)		2.3
Amortization and deferrals - net		—		(0.1	)		—			(0.1	)
Pension cost	$	0.5	$	0.7		$	(0.5	)	$	3.9

The Company recognized a $1.5 curtailment benefit during the first quarter of 2011 related to the resignation of a senior executive. The Company recognized a $2.3 curtailment loss during the first quarter of 2010 related to the termination of the employment of the former President and Chief Executive Officer of the Company.

The Company sponsors postretirement health and life insurance plans for certain eligible employees. The plan provides eligible employees and retirees with the opportunity to direct an amount of their compensation or pension benefits to cover medical, dental and life insurance programs of their choice for their benefit and the benefit of their dependents. The plan covers both active and retired eligible employees of the Company and its subsidiaries. Employees' eligibility to participate in the plan is based upon their date of hire. 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 has decreased approximately $20 from December 31, 2010, 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.