Pensions and Postretirement Benefits Other Than Pensions

6 Months Ended

Jun. 30, 2011

Pensions and Postretirement Benefits Other Than Pensions [Abstract]

Pensions and Postretirement Benefits Other Than Pensions

Note 11. Pensions and Postretirement Benefits Other Than Pensions

Pensions

The following table sets forth the components of net periodic benefit cost and the weighted-average assumptions used to determine the net periodic benefit cost. The net periodic benefit cost for divested or discontinued operations retained by the Company is included in the amounts below:

	U.S. Plans						U.K. Plans						Other Plans
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30,						June 30,						June 30,
	2011			2010			2011			2010			2011			2010
	(Dollars in millions)
Service cost	$	12.2		$	11.4		$	4.4		$	3.6		$	2.0		$	1.2
Interest cost		42.5			42.1			10.4			9.5			2.3			1.7
Expected return on plan assets		(52.1	)		(47.9	)		(15.5	)		(12.7	)		(2.2	)		(1.8	)
Amortization of prior service cost		1.4			1.7			(0.2	)		(0.2	)		0.1			0.1
Amortization of actuarial loss		13.2			28.2			(0.4	)		0.7			0.7			0.4
Gross periodic benefit cost		17.2			35.5			(1.3	)		0.9			2.9			1.6
Settlement loss		0.2			—			—			—			—			—
Curtailment loss(1)		1.4			—			—			—			—			—
Net periodic benefit cost	$	18.8		$	35.5		$	(1.3	)	$	0.9		$	2.9		$	1.6
Termination benefit charge(1)	$	4.0		$	—		$	—		$	—		$	—		$	—

	U.S. Plans						U.K. Plans						Other Plans
	Six Months Ended						Six Months Ended						Six Months Ended
	June 30,						June 30,						June 30,
	2011			2010			2011			2010			2011			2010
	(Dollars in millions)
Service cost	$	24.4		$	23.1		$	8.6		$	7.7		$	3.7		$	2.4
Interest cost		85.6			84.3			21.2			19.3			4.3			3.5
Expected return on plan assets		(104.7	)		(93.8	)		(30.9	)		(25.9	)		(4.3	)		(3.5	)
Amortization of prior service cost		3.0			3.5			(0.3	)		(0.3	)		0.2			0.1
Amortization of actuarial loss		28.8			58.4			—			1.3			1.3			0.8
Gross periodic benefit cost		37.1			75.5			(1.4	)		2.1			5.2			3.3
Settlement loss		0.2			—			—			—			—			—
Curtailment loss(1)		1.4			—			—			—			—			—
Net periodic benefit cost	$	38.7		$	75.5		$	(1.4	)	$	2.1		$	5.2		$	3.3
Termination benefit charge(1)	$	4.0		$	—		$	0.7		$	—		$	—		$	—

(1) Due to the approval of a plan to close a U.S. facility, pension assumptions were reevaluated on June 7, 2011 for the remeasurement of a U.S. Wage Plan covering certain union employees. See Note 3, “Business Segment Information”. The facility closure resulted in a curtailment loss of $1.4 million and a contractual termination benefit charge of $4 million.

The following table provides the weighted-average assumptions used to determine the net periodic benefit cost.

	U.S. Plans						U.K. Plans						Other Plans
	Three and Six Months						Three and Six Months						Three and Six Months
	Ended June 30,						Ended June 30,						Ended June 30,
	2011			2010			2011			2010			2011			2010
Discount rate 1/1 — 6/6		5.67	%		5.90	%		5.81	%		5.88	%		5.20	%		5.75	%
Discount rate 6/7 — 6/30		5.63	%		5.90	%		5.81	%		5.88	%		5.20	%		5.75	%
Expected long-term rate of return on assets		8.25	%		8.75	%		8.25	%		8.50	%		8.08	%		8.32	%
Rate of compensation increase		4.10	%		4.10	%		3.75	%		3.75	%		3.42	%		3.38	%

The Company generally amortizes the actuarial gains and losses for our pension plans over the average future service period of the active participants. However, beginning in 2011, the Company is amortizing the actuarial losses in its U.S. salaried plan over the remaining life of the inactive plan participants since almost all of the plan participants are now inactive. This resulted in a reduction in the amortization of actuarial losses from 2010 in the U.S. salaried plan.

Postretirement Benefits Other Than Pensions

The following table sets forth the components of net periodic postretirement benefit cost other than pensions. Other postretirement benefits related to the divested and discontinued operations retained by the Company are included in the amounts below.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
				(Dollars in millions)
Service cost	$	0.2		$	0.2		$	0.5		$	0.6
Interest cost		3.7			4.4			7.9			8.7
Amortization of prior service cost		(0.3	)		(0.1	)		(0.3	)		(0.1	)
Amortization of actuarial (gain) loss		—			—			—			—
Net periodic benefit cost	$	3.6		$	4.5		$	8.1		$	9.2

The following table provides the assumptions used to determine the net periodic postretirement benefit cost.

	Three and Six Months Ended June 30,
	2011		2010
Discount rate		5.29%		5.55%
Healthcare trend rate	7.5% in 2011 to 5% in 2017		7.3% in 2010 to 5% in 2015