Pension and Postretirement Benefit Costs

Net periodic pension cost included the following components:



	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(Dollars in millions)
Service cost for benefits earned	$	0.5		$	0.5		$	1.0		$	1.1
Interest cost on projected benefit obligation	11.3			10.5			22.7			21.1
Expected return on plan assets	(13.5		)	(14.8		)	(27.1		)	(29.7		)
Amortization of prior service cost and net actuarial loss	7.8			16.7			15.7			33.3
Net periodic pension cost	$	6.1		$	12.9		$	12.3		$	25.8

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%). The Company currently expects its qualified plans to be at or above the Pension Protection Act thresholds and will therefore avoid benefit restrictions and at-risk penalties for 2014. During the three and six months ended June 30, 2014, the Company contributed $1.6 million and $2.4 million, respectively, to its pension plans. The Company expects to contribute approximately $13 million to its pension plans in 2014 to meet minimum funding requirements for its qualified plans and benefit payments for its non-qualified plans.

Net periodic postretirement benefit cost included the following components:



	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Dollars in millions)
Service cost for benefits earned	$	3.0	$	3.9	$	6.1	$	7.8
Interest cost on accumulated postretirement benefit obligation	9.1		10.4		18.2		20.9
Amortization of prior service cost and net actuarial loss, and special termination benefits	4.0		7.1		7.9		12.7
Net periodic postretirement benefit cost	$	16.1	$	21.4	$	32.2	$	41.4

During the six months ended June 30, 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.