Pension and Postretirement Benefit Costs

9 Months Ended

Sep. 30, 2012

Compensation and Retirement Disclosure [Abstract]

Pension and Postretirement Benefit Costs

Pension and Postretirement Benefit Costs

Net periodic pension costs included the following components:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
	(Dollars in millions)
Service cost for benefits earned	$	0.5		$	0.4		$	1.5		$	1.3
Interest cost on projected benefit obligation	11.7			12.4			35.1			37.3
Expected return on plan assets	(15.9		)	(16.1		)	(47.8		)	(48.3		)
Amortization of prior service cost	0.3			0.3			0.8			0.8
Amortization of actuarial loss	12.1			7.5			36.4			22.5
Net periodic pension costs	$	8.7		$	4.5		$	26.0		$	13.6

Annual contributions to the qualified plans are made in accordance with minimum funding standards and the Company's agreement with the Pension Benefit Guaranty Corporation (PBGC). Funding decisions also consider certain funded status thresholds defined by the Pension Protection Act of 2006 (generally 80%). As of January 1, 2012, the Company's qualified plans were above the Pension Protection Act thresholds and will therefore avoid benefit restrictions and at-risk penalties for 2012. On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21), a highway reauthorization and student loan bill that includes both pension funding stabilization provisions and PBGC premium increases, was signed into law. The pension funding stabilization provisions temporarily increased the interest rates used to determine pension liabilities for purposes of minimum funding requirements. MAP-21 is not expected to change the Company's total required cash contributions over the long term, but is expected to reduce the Company's required cash contributions through 2015 relative to prior law if current interest rate levels persist. Based upon revised minimum funding requirements in accordance with MAP-21, the Company has no further funding requirements to its qualified plans for the remainder of 2012. Prior to the enactment of MAP-21, the Company intended to contribute $5.0 million in 2012 to meet minimum contribution requirements for its qualified plans. The Company expects to make contributions to its non-qualified plans during 2012 totaling less than $2.0 million.

Net periodic postretirement benefit costs included the following components:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(Dollars in millions)
Service cost for benefits earned	$	3.6	$	3.5	$	10.9	$	9.8
Interest cost on accumulated postretirement benefit obligation	13.7		14.5		41.2		43.4
Amortization of prior service cost	0.7		0.8		1.7		1.6
Amortization of actuarial loss	8.1		6.7		24.5		20.2
Net periodic postretirement benefit costs	$	26.1	$	25.5	$	78.3	$	75.0