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Postretirement Health Care and Life Insurance Benefits
 12 Months Ended
Dec. 31, 2012
Postretirement Health Care and LIfe Insurance Benefits [Abstract]  
Postretirement Health Care and Life Insurance Benefits
Postretirement Health Care and Life Insurance Benefits
The Company currently provides health care and life insurance benefits to qualifying salaried and hourly retirees and their dependents from benefit plans established by the Company.  Plan coverage for health benefits is provided to future hourly and salaried retirees in accordance with the applicable plan document.  Life insurance benefits are provided to future hourly retirees in accordance with the applicable labor agreement.
Net periodic postretirement benefit cost included the following components:
 
Year Ended December 31,
 
2012
 
2011
 
2010
 
(Dollars in millions)
Service cost for benefits earned
$
14.9

 
$
13.9

 
$
12.9

Interest cost on accumulated postretirement benefit obligation
54.9

 
57.9

 
58.2

Amortization of prior service cost
2.5

 
2.8

 
2.6

Amortization of actuarial loss
32.8

 
26.9

 
24.9

Net periodic postretirement benefit cost
$
105.1

 
$
101.5

 
$
98.6


The following includes pre-tax amounts recorded in "Accumulated other comprehensive income (loss)":
 
Year Ended December 31,
 
2012
 
2011
 
2010
 
(Dollars in millions)
Net actuarial (gain) loss arising during year
$
(68.3
)
 
$
86.0

 
$
45.3

Prior service (credit) cost arising during year
(31.9
)
 
(1.4
)
 
7.9

Amortization:
 

 
 

 
 

Actuarial loss
(32.8
)
 
(26.9
)
 
(24.9
)
Prior service cost
(2.5
)
 
(2.8
)
 
(2.6
)
Total recorded in other comprehensive (income) loss
(135.5
)
 
54.9

 
25.7

Net periodic postretirement benefit cost
105.1

 
101.5

 
98.6

Net periodic postretirement benefit cost, net of amounts recorded in other comprehensive (income) loss
$
(30.4
)
 
$
156.4

 
$
124.3


The Company amortizes actuarial gain and loss using a 0% corridor with an amortization period that covers the average future working lifetime of active employees (11.75 years and 11.70 years at January 1, 2013 and 2012, respectively). The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive income (loss) into net periodic postretirement benefit cost during the year ending December 31, 2013 are $24.1 million and $1.7 million, respectively.
The following table sets forth the plans' funded status reconciled with the amounts shown in the consolidated balance sheets:
 
December 31,
 
2012
 
2011
 
(Dollars in millions)
Change in benefit obligation:
 

 
 

Accumulated postretirement benefit obligation at beginning of period
$
1,121.5

 
$
1,031.2

Service cost
14.9

 
13.9

Interest cost
54.9

 
57.9

Participant contributions
2.3

 
1.9

Plan changes(1)
(31.9
)
 
(1.4
)
Benefits paid
(67.3
)
 
(68.0
)
Actuarial (gain) loss
(68.3
)
 
86.0

Accumulated postretirement benefit obligation at end of period
1,026.1

 
1,121.5

Change in plan assets:
 

 
 

Fair value of plan assets at beginning of period
—

 
—

Employer contributions
65.0

 
66.1

Participant contributions
2.3

 
1.9

Benefits paid and administrative fees (net of Medicare Part D reimbursements)
(67.3
)
 
(68.0
)
Fair value of plan assets at end of period
—

 
—

Funded status at end of year
(1,026.1
)
 
(1,121.5
)
Less current portion (included in "Accounts payable and accrued expenses")
65.4

 
68.4

Noncurrent obligation (included in "Accrued postretirement benefit costs")
$
(960.7
)
 
$
(1,053.1
)
(1) 
Effective January 1, 2013, certain participants for whom the Company pays retiree healthcare liabilities began participation in a Medicare Advantage Program.
The weighted-average assumptions used to determine the benefit obligations as of the end of each year were as follows:
 
December 31,
 
2012
 
2011
Discount rate
4.21
%
 
5.05
%
Rate of compensation increase
N/A

 
N/A

Measurement date
December 31, 2012

 
December 31, 2011


The weighted-average assumptions used to determine net periodic benefit cost during each year were as follows:
 
Year Ended December 31,
 
2012
 
2011
 
2010
Discount rate
5.05
%
 
5.81
%
 
6.14
%
Rate of compensation increase
N/A

 
3.50
%
 
3.50
%
Measurement date
December 31, 2011

 
December 31, 2010

 
December 31, 2009


The following presents information about the assumed health care cost trend rate:
 
Year Ended December 31,
 
2012
 
2011
Health care cost trend rate assumed for next year
6.43
%
 
9.00
%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)
4.67
%
 
5.00
%
Year that the rate reaches the ultimate trend rate
2023

 
2018


Assumed health care cost trend rates have a significant effect on the expense and liability amounts reported for health care plans. A one-percentage-point change in the assumed health care cost trend would have the following effects:
 
One Percentage-
Point Increase
 
One Percentage-
Point Decrease
 
(Dollars in millions)
Effect on total service and interest cost components (1)
$
18.1

 
$
(15.6
)
Effect on total postretirement benefit obligation (1)
$
107.5

 
$
(93.0
)

(1) 
In addition to the effect on total service and interest cost components of expense, changes in trend rates would also increase or decrease the actuarial gain or loss amortization expense component. The impact on actuarial gain or loss amortization would approximate the increase or decrease in the obligation divided by 11.75 years at January 1, 2013.
Plan Assets
The Company’s postretirement benefit plans are unfunded.
Estimated Future Benefit Payments
The following benefit payments (net of retiree contributions), which reflect expected future service, as appropriate, are expected to be paid by the Company:
 
Postretirement
 
Benefits
 
(Dollars in millions)
2013
$
65.4

2014
66.5

2015
67.6

2016
68.8

2017
69.5

Years 2018-2022
355.7