Retirement Benefits

6 Months Ended

Jun. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement benefits

Note 3 – 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 for our pension plans were as follows:

		U.S. Plans		Non-U.S. Plans		Total
(In millions)		2014	2013	2014	2013	2014	2013
Three months ended June 30,
Service cost	$	-	-	3.2	3.8	3.2	3.8
Interest cost on projected benefit obligation		11.3	10.5	4.6	4.8	15.9	15.3
Return on assets – expected		(16.2)	(14.3)	(3.8)	(3.2)	(20.0)	(17.5)
Amortization of losses		7.0	11.4	0.6	1.5	7.6	12.9
Amortization of prior service cost		-	-	0.2	(0.1)	0.2	(0.1)
Settlement loss		-	-	1.1	0.5	1.1	0.5
Net periodic pension cost	$	2.1	7.6	5.9	7.3	8.0	14.9
Six months ended June 30,
Service cost	$	-	-	6.7	7.4	6.7	7.4
Interest cost on projected benefit obligation		22.7	21.1	10.4	9.6	33.1	30.7
Return on assets – expected		(31.6)	(28.5)	(7.6)	(6.4)	(39.2)	(34.9)
Amortization of losses		14.2	22.7	1.1	3.1	15.3	25.8
Amortization of prior service cost		-	-	0.4	0.5	0.4	0.5
Settlement loss		-	-	1.8	0.8	1.8	0.8
Net periodic pension cost	$	5.3	15.3	12.8	15.0	18.1	30.3

In the first six months of 2014, we made $26.2million in cash contributions to our primary U.S. pension plan. We expectto contribute an additional $61.0 million during the second half of 2014.

Retirement benefits other than pensions

We provide retirement healthcare benefits for eligible current and former U.S., Canadian, and Brazilian employees. Retirement benefits related to our former U.S. coal operation include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for UMWA 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)		2014	2013	2014	2013	2014	2013
Three months ended June 30,
Service cost	$	-	-	0.1	0.1	0.1	0.1
Interest cost on accumulated postretirement benefit obligations		4.4	4.9	0.4	0.5	4.8	5.4
Return on assets – expected		(5.6)	(5.2)	-	-	(5.6)	(5.2)
Amortization of losses		2.9	4.8	0.1	0.2	3.0	5.0
Amortization of prior service (credit) cost		(1.2)	-	0.5	0.4	(0.7)	0.4
Net periodic postretirement cost	$	0.5	4.5	1.1	1.2	1.6	5.7
Six months ended June 30,
Service cost	$	-	-	0.1	0.2	0.1	0.2
Interest cost on accumulated postretirement benefit obligations		9.2	9.9	1.0	1.0	10.2	10.9
Return on assets – expected		(11.2)	(10.4)	-	-	(11.2)	(10.4)
Amortization of losses		6.6	9.8	0.3	0.3	6.9	10.1
Amortization of prior service (credit) cost		(2.3)	-	0.9	0.8	(1.4)	0.8
Net periodic postretirement cost	$	2.3	9.3	2.3	2.3	4.6	11.6