Employee Benefits

6 Months Ended

Jun. 30, 2011

Employee Benefits

Employee Benefits

7. Employee Benefits

The components of the estimated pension and postretirement benefits expense for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Pension expense
Service cost	$	21.5		$	20.1		$	42.8		$	40.2
Interest cost		48.9			45.9			97.0			91.9
Expected return on assets		(67.3	)		(64.4	)		(134.4	)		(128.9	)
Amortization, net		12.8			6.4			25.0			12.7
Net pension expense	$	15.9		$	8.0		$	30.4		$	15.9
Postretirement benefits expense
Service cost	$	2.3		$	3.0		$	4.6		$	6.1
Interest cost		6.2			7.1			12.4			14.2
Expected return on assets		(3.8	)		(3.9	)		(7.6	)		(7.8	)
Amortization, net		(1.3	)		(2.3	)		(2.5	)		(4.7	)
Net postretirement benefits expense	$	3.4		$	3.9		$	6.9		$	7.8

As a result of the adoption of the Patient Protection and Affordable Care Act, the Company decided to convert its current prescription drug program for certain medicare-eligible retirees to a group-based Company sponsored Medicare Part D program, or Employer Group Waiver Program ("EGWP"). Beginning January 1, 2013, EGWP subsidies to or for the benefit of this program will be used to reduce the Company's net retiree medical and prescription drug costs until such Company net costs are eliminated, and any EGWP subsidies received in excess of the amount necessary to offset such net costs will be used to reduce the included group of retirees' premiums. This change became effective in the second quarter of 2011 and is accounted for as a plan amendment, which resulted in the Company reducing its postretirement benefits liability by $81.5 million to $220.9 million.