Other Post Retirement Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Other Post Retirement Employee Benefit Plans [Abstract]

Other Post Retirement Employee Benefit Plans

(12) OTHER POST RETIREMENT EMPLOYEE BENEFIT PLANS:

In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for some of its retired employees in the United States. Certain employees may become eligible for these benefits as they reach normal retirement age while working for the Company. The following sets forth the funded status of the domestic plans as of the most recent actuarial valuations using measurement dates of December 31, 2011 and 2010 ($ in millions):

	Post Retirement Medical Benefits
	2011			2010
Change in benefit obligation:
Benefit obligation at beginning of year	$	123.7		$	104.8
Service cost		1.6			0.9
Interest cost		9.5			6.3
Amendments, curtailments and other		2.0			0.5
Actuarial loss		16.0			23.8
Acquisitions		125.1			—
Retiree contributions		6.6			1.8
Benefits paid		(19.7	)		(14.4	)
Benefit obligation at end of year		264.8			123.7
Change in plan assets:
Fair value of plan assets		—			—
Funded status /accrued benefit cost	$	(264.8	)	$	(123.7	)
Attributable to discontinued operations		2.5			2.5
Funded status /accrued benefit cost – continuing operations		(262.3	)		(121.2	)

At December 31, 2011, $245 million of the total underfunded status of the plan was recognized as long-term accrued post retirement liability since it is not expected to be funded within one year. At December 31, 2010, $111 million of the total underfunded status of the plan was recognized as long-term accrued post-retirement liability.

Weighted average assumptions used to determine benefit obligations at date of measurement:

	2011			2010
Discount rate		4.50	%		5.20	%
Medical trend rate – initial		7.70	%		7.90	%
Medical trend rate – grading period		17 years			18 years
Medical trend rate – ultimate		4.50	%		4.50	%

Effect of a one-percentage-point change in assumed health care cost trend rates ($ in millions):

	1% Increase		1% Decrease
Effect on the total of service and interest cost components	$	1.0	$	(0.9	)
Effect on post retirement medical benefit obligation		24.4		(21.2	)

The medical trend rate used to determine the post retirement benefit obligation was 7.70% for 2011. The rate decreases gradually to an ultimate rate of 4.5% in 2028, and remains at that level thereafter. The trend is a significant factor in determining the amounts reported.

Components of net periodic benefit cost ($ in millions):

	Post Retirement Medical Benefits
	2011			2010
Service cost	$	1.6		$	0.9
Interest cost		9.5			6.3
Amortization of loss		4.0			2.3
Amortization of prior service credit		(5.9	)		(7.9	)
Curtailment loss		3.0			—
Net periodic benefit cost	$	12.2		$	1.6

Included in accumulated other comprehensive income at December 31, 2011 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service credits of $16 million ($10 million, net of tax) and unrecognized actuarial losses of $54 million ($34 million, net of tax). The unrecognized losses and prior service credits, net, is calculated as the difference between the actuarially determined projected benefit obligation and the value of the plan assets less accrued benefit costs as of December 31, 2011. The prior service credits and actuarial loss included in accumulated comprehensive income and expected to be recognized in net periodic benefit costs during the year ending December 31, 2012 is $6 million ($4 million, net of tax) and $4 million ($2 million, net of tax), respectively.

The following table sets forth benefit payments, which reflect expected future service, as appropriate, expected to be paid in the periods indicated ($ in millions):

	Amount
2012	$	21.8
2013		21.7
2014		21.8
2015		22.1
2016		22.4
2017-2021		109.7