Retirement benefits

9 Months Ended

Sep. 30, 2011

Compensation and Retirement Disclosure [Abstract]

Retirement benefits

Note 4 – Retirement benefits

Pension plans

We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service.

The components of net periodic pension cost (credit) for our pension plans were as follows:

		U.S. Plans		Non-U.S. Plans		Total
(In millions)		2011	2010	2011	2010	2011	2010
Three months ended September 30,
Service cost	$	-	-	2.5	1.5	2.5	1.5
Interest cost on projected benefit obligation		11.6	11.6	4.3	3.2	15.9	14.8
Return on assets – expected		(16.2)	(16.7)	(3.0)	(2.6)	(19.2)	(19.3)
Amortization of losses		7.0	4.9	0.9	0.8	7.9	5.7
Settlement loss		-	-	0.7	-	0.7	-
Net periodic pension cost (credit)	$	2.4	(0.2)	5.4	2.9	7.8	2.7
Nine months ended September 30,
Service cost	$	-	-	7.8	4.6	7.8	4.6
Interest cost on projected benefit obligation		34.7	34.9	12.9	9.8	47.6	44.7
Return on assets – expected		(48.7)	(50.1)	(9.1)	(7.9)	(57.8)	(58.0)
Amortization of losses		21.0	14.6	3.2	2.5	24.2	17.1
Settlement loss		-	-	1.7	-	1.7	-
Net periodic pension cost (credit)	$	7.0	(0.6)	16.5	9.0	23.5	8.4

Based on December 31, 2010, data, assumptions and funding regulations, we are not required to make a contribution to our primary U.S. plan during 2011.

Retirement benefits other than pensions

We provide retirement healthcare benefits for eligible current and former U.S. and Canadian employees, including former employees of our former U.S. coal operation. Retirement benefits related to our former coal operation include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for United Mine Workers of America Represented Employees (the “UMWA plans”) as well as costs related to Black Lung obligations.

The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows:

			UMWA plans		Black lung and other plans		Total
(In millions)			2011	2010	2011	2010	2011	2010
Three months ended September 30,
Interest cost on accumulated postretirement
	benefit obligations	$	5.9	6.8	0.7	0.8	6.6	7.6
Return on assets – expected			(6.4)	(6.3)	-	-	(6.4)	(6.3)
Amortization of losses (gains)			3.8	4.1	0.6	0.6	4.4	4.7
Net periodic pension cost (credit)		$	3.3	4.6	1.3	1.4	4.6	6.0
Nine months ended September 30,
Interest cost on accumulated postretirement
	benefit obligations	$	17.9	20.2	2.1	2.2	20.0	22.4
Return on assets – expected			(19.2)	(19.0)	-	-	(19.2)	(19.0)
Amortization of losses (gains)			11.3	12.1	1.8	1.3	13.1	13.4
Net periodic pension cost (credit)		$	10.0	13.3	3.9	3.5	13.9	16.8