Employee Benefits

6 Months Ended

Jun. 30, 2011

Employee Benefits

Employee Benefits

Note 13 – Employee Benefits

In association with the Spin-off, the Company established defined-benefit pension and postretirement medical plans providing coverage to approximately one-quarter of its employees. QEP only retained liability for active employees and all retired employees remained participants in Questar's retirement plans. At the Spin-off, Questar transferred certain assets and liabilities from its defined-benefit pension and postretirement medical plans related to QEP employees into QEP's newly established plans. The transfer resulted in the establishment of liabilities of $54.9 million related to the unfunded portions of the defined-benefit pension plans and other postretirement benefits with corresponding amounts in AOCI. These changes have been reflected in other long-term liabilities, deferred income taxes and AOCI.

During the six months ended June 30, 2011, the Company made contributions of $2.5 million to its retirement plans which increased plan assets. During the remainder of 2011, the Company expects to contribute $12.3 million to its retirement plan. The components of pension and post retirement benefits expense are as follows. The pension expense includes costs of both qualified and nonqualified pension plans:

	Three Months Ended June 30, 2011					Six Months Ended June 30, 2011
	Pension			Post Retirement Benefits		Pension			Post- Retirement Benefits
	(in millions)
Service cost	$	0.7		$	—	$	1.4		$	—
Interest cost		1.1			0.1		2.2			0.2
Expected return on plan assets		(0.6	)		—		(1.2	)		—
Amortization of prior service costs		1.3			0.1		2.6			0.2
Recognized net actuarial loss		—			—		—			—
Periodic expense	$	2.5		$	0.2	$	5.0		$	0.4