Pension and Postretirement Benefit Costs

3 Months Ended

Mar. 31, 2014

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Compensation and Employee Benefit Plans [Text Block]

 Pension and Postretirement Benefit Costs

Net periodic pension cost included the following components:

	Three Months Ended March 31,
	2014			2013
	(Dollars in millions)
Service cost for benefits earned	$	0.5		$	0.6
Interest cost on projected benefit obligation	11.3			10.6
Expected return on plan assets	(13.5		)	(14.9		)
Amortization of prior service cost	0.3			0.2
Amortization of actuarial loss	7.6			16.4
Net periodic pension cost	$	6.2		$	12.9

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 March 31, 2014, the Company's qualified plans were expected to be at or above the Pension Protection Act thresholds for 2014 and therefore avoid benefit restrictions and at-risk penalties. During the three months ended March 31, 2014, the Company contributed $0.8 million to its pension plans. The Company expects to contribute approximately $13 million to its pension plans to meet minimum funding requirements for its qualified plans and benefit payments for its non-qualified plans in 2014.

Net periodic postretirement benefit cost included the following components:

	Three Months Ended March 31,
	2014		2013
	(Dollars in millions)
Service cost for benefits earned	$	3.1	$	3.9
Interest cost on accumulated postretirement benefit obligation	9.1		10.5
Amortization of prior service cost (credit)	0.3		(0.4		)
Amortization of actuarial loss	3.6		6.0
Net periodic postretirement benefit cost	$	16.1	$	20.0

During the three months ended March 31, 2014, the Company increased its accumulated postretirement benefit obligation (included in “Accrued postretirement benefit costs”) by $27.6 million, with an offsetting pre-tax prior service cost adjustment recorded directly to “Accumulated other comprehensive loss.” The adjustment was a result of a plan change effective April 1, 2014 for certain plan participants' benefits no longer funded through a Medicare Advantage Program. The plan change will not affect participant benefits, although it is expected to increase future employer contributions including an additional $2.0 million of Company contributions for the year ending December 31, 2014.