Employee Benefits

9 Months Ended

Sep. 30, 2012

Employee Benefits

7. Employee Benefits

The components of net pension and postretirement benefits (income) expense for the three and nine months ended September 30, 2012 and 2011 were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Pension (income) expense
Service cost	$	1.7		$	21.3		$	5.2		$	64.1
Interest cost		47.5			48.4			142.3			145.4
Expected return on assets		(65.9	)		(67.2	)		(197.5	)		(201.6	)
Amortization, net		6.7			12.4			20.6			37.4
Net pension (income) expense	$	(10.0	)	$	14.9		$	(29.4	)	$	45.3
Postretirement benefits (income) expense
Service cost	$	1.7		$	1.8		$	5.0		$	6.4
Interest cost		4.7			5.2			13.9			17.6
Expected return on assets		(3.6	)		(3.6	)		(10.5	)		(11.2	)
Amortization, net		(5.0	)		(5.0	)		(14.9	)		(7.5	)
Net postretirement benefits (income) expense	$	(2.2	)	$	(1.6	)	$	(6.5	)	$	5.3

On July 6, 2012, the Surface Transportation Extension Act of 2012 (the “Act”) was signed into law. The Act includes certain pension-related provisions designed to stabilize interest rates used to calculate the minimum required annual contributions for defined benefit pension plans. The Company anticipates that provisions in the Act will significantly reduce the minimum required annual contributions related to its defined benefit pension plans over the next few years though these contributions are dependent on many factors, including returns on invested assets and discount rates used to determine pension obligations. The Company expects to make contributions of approximately $143 million to its pension plans and $9 million to its postretirement plans for the full year 2012, of which $135.8 million and $6.8 million, respectively, were made during the nine months ended September 30, 2012. The Company estimates that it will make cash contributions totaling approximately $40 million to its pension and postretirement benefit plans in 2013.

On November 2, 2011, the Company announced a freeze on further benefit accruals under all U.S. pension plans as of December 31, 2011. Beginning January 1, 2012, participants ceased earning additional benefits under the plans and no new participants will enter these plans. Additionally, on February 1, 2012, the Company announced a freeze on further benefit accruals under its Canadian pension plans as of March 31, 2012.

The Company recognized expense of $7.2 million and $23.3 million for matching contributions under its reinstated 401(k) match for the three and nine months ended September 30, 2012, respectively.