PENSION AND POSTRETIREMENT PLANS

12 Months Ended

Dec. 31, 2012

Postemployment Benefits [Abstract]

PENSION AND POSTRETIREMENT PLANS

PENSION AND POSTRETIREMENT PLANS

Pension Plans

In October 2009, the Company received approval from its Board of Directors to freeze any additional service-based credits for any years of service after December 31, 2009 on the defined benefit retirement plan (the "Company Plan") and the nonqualified supplemental retirement plan (the “PEP”). Both plans have been closed to new participants. Employees participating in the Company Plan and the PEP no longer earn service-based credits, but continue to earn interest credits. In addition, effective January 1, 2010, all employees eligible for the defined contribution retirement plan (the “401K Plan”) receive a minimum 3% non-elective contribution (“NEC”) concurrent with each payroll period. The NEC replaces the Company match, which has been discontinued. Employees are not required to make a contribution to the 401K Plan to receive the NEC. The NEC is non-forfeitable and vests immediately. The 401K Plan also permits discretionary contributions by the Company of 1% to 3% of pay for eligible employees based on service.

The Company believes these changes to the Company Plan, the PEP and its 401K Plan align the Company’s retirement plan strategy with prevailing industry practices and reduce the impact of market volatility on the Company Plan.

The Company’s 401K Plan covers substantially all employees. Prior to 2010, Company contributions to the plan were based on a percentage of employee contributions. In 2012, 2011 and 2010, the Company made non-elective and discretionary contributions to the plan. The cost of this plan was $49.0, $44.3 and $40.6 in 2012, 2011 and 2010, respectively.

In addition, the Company Plan covers substantially all employees hired prior to December 31, 2009. The benefits to be paid under the Company Plan are based on years of credited service through December 31, 2009, interest credits and average compensation. The Company’s policy is to fund the Company Plan with at least the minimum amount required by applicable regulations. The Company made contributions to the Company Plan of $11.3, $0.0 and $0.0 in 2012, 2011 and 2010, respectively.

The PEP covers the Company’s senior management group. Prior to 2010, the PEP provided for the payment of the difference, if any, between the amount of any maximum limitation on annual benefit payments under the Employee Retirement Income Security Act of 1974 and the annual benefit that would be payable under the Company Plan but for such limitation. Effective January 1, 2010, employees participating in the PEP no longer earn service-based credits. The PEP is an unfunded plan.

Projected pension expense for the Company Plan and the PEP is expected to remain at$12.1 in 2013. The Company plans to make contributions of $6.5 to the Company Plan during 2013.

The effect on operations for both the Company Plan and the PEP are summarized as follows:

	Year ended December 31,
	2012			2011			2010
Service cost for benefits earned	$	2.4		$	2.6		$	2.6
Interest cost on benefit obligation	14.9			17.1			18.1
Expected return on plan assets	(17.3		)	(18.9		)	(18.5		)
Net amortization and deferral	12.1			7.8			7.4
Curtailment cost	—			—			—
Defined benefit plan costs	$	12.1		$	8.6		$	9.6

Amounts included in accumulated other comprehensive earnings consist of unamortized net loss of $143.0. The accumulated other comprehensive earnings that are expected to be recognized as components of the defined benefit plan costs during 2013 are $10.8 related to amortization of net loss.

A summary of the changes in the projected benefit obligations of the Company Plan and the PEP are summarized as follows:

	2012			2011
Balance at January 1	$	383.2		$	348.2
Service cost	2.4			2.6
Interest cost	14.9			17.1
Actuarial loss	5.8			39.8
Benefits and administrative expenses paid	(25.6		)	(24.5		)
Balance at December 31	$	380.7		$	383.2

The Accumulated Benefit Obligation was $380.7 and $383.2 at December 31, 2012 and 2011, respectively.

A summary of the changes in the fair value of plan assets follows:

	2012			2011
Fair value of plan assets at beginning of year	$	244.5		$	264.4
Actual return on plan assets	25.0			3.5
Employer contributions	12.9			1.1
Benefits and administrative expenses paid	(25.6		)	(24.5		)
Fair value of plan assets at end of year	$	256.8		$	244.5

The net funded status of the Company Plan and the PEP at December 31:

Funded status	$	123.9	$	138.7
Recorded as:
Accrued expenses and other	$	1.4	$	1.2
Other liabilities	122.5		137.5
	$	123.9	$	138.7

Weighted average assumptions used in the accounting for the Company Plan and the PEP are summarized as follows:

	2012		2011		2010
Discount rate	4.0	%	4.0	%	5.1	%
Expected long term rate of return	7.0	%	7.3	%	7.5	%

The Company maintains an investment policy for the management of the Company Plan’s assets. The objective of this policy is to build a portfolio designed to achieve a balance between investment return and asset protection by investing in indexed funds that are comprised of equities of high quality companies and in high quality fixed income securities which are broadly balanced and represent all market sectors. The target allocations for plan assets are 50% equity securities, 45% fixed income securities and 5% in other assets. Equity securities primarily include investments in large-cap, mid-cap and small-cap companies located in the United States and to a lesser extent international equities in developed and emerging countries. Fixed income securities primarily include U.S. Treasury securities, mortgage-backed bonds and corporate bonds of companies from diversified industries. Other assets include investments in commodities. The weighted average expected long-term rate of return for the Company Plan’s assets is as follows:

	Target Allocation		Weighted Average Expected Long-Term Rate of Return
Equity securities	50.0	%	5.5	%
Fixed income securities	45.0	%	1.2	%
Other assets	5.0	%	0.3	%

The fair values of the Company Plan’s assets at December 31, 2012 and 2011, by asset category are as follows:

			Fair Value Measurements as of
			December 31, 2012
	Fair Value as of December 31, 2012		Using Fair Value Hierarchy
Asset Category			Level 1		Level 2		Level 3
Cash	$	6.9	$	6.9	$	—	$	—
Equity securities:
U.S. large cap - blend (a)	58.1		—		58.1		—
U.S. mid cap - blend (b)	23.2		—		23.2		—
U.S. small cap - blend (c)	6.8		—		6.8		—
International equity - blend (d)	39.4		—		39.4		—
Commodities index (e)	11.5		—		11.5		—
Fixed income securities:
U.S. fixed income (f)	110.9		—		110.9		—
Total fair value of the Company Plan’s assets	$	256.8	$	6.9	$	249.9	$	—

			Fair Value Measurements as of
			December 31, 2011
	Fair Value as of December 31, 2011		Using Fair Value Hierarchy
Asset Category			Level 1		Level 2		Level 3
Cash	$	3.7	$	3.7	$	—	$	—
Equity securities:
U.S. large cap - blend (a)	58.6		—		58.6		—
U.S. mid cap - blend (b)	21.9		—		21.9		—
U.S. small cap - blend (c)	7.2		—		7.2		—
International equity - blend (d)	33.0		—		33.0		—
Commodities index (e)	10.2		—		10.2		—
Fixed income securities:
U.S. fixed income (f)	109.9		—		109.9		—
Total fair value of the Company Plan’s assets	$	244.5	$	3.7	$	240.8	$	—

a) This category represents an equity index fund not actively managed that tracks the S&P 500 Index.

b) This category represents an equity index fund not actively managed that tracks the S&P mid-cap 400 Index.

c) This category represents an equity index fund not actively managed that tracks the Russell 2000 Index.

d) This category represents an equity index fund not actively managed that tracks the MSCI ACWI ex USA Index.

e) This category represents a commodities index fund not actively managed that tracks the Dow Jones - UBS Commodity Index.

f) This category primarily represents bond index funds not actively managed that track the Barclays Capital U.S. Aggregate Index and Barclays Capital U.S. TIPS Index.

The following assumed benefit payments under the Company Plan and PEP, which were used in the calculation of projected benefit obligations, are expected to be paid as follows:

2013	$	24.0
2014	23.2
2015	23.3
2016	23.5
2017	23.4
Years 2018-2022	119.1

Post-retirement Medical Plan

The Company assumed obligations under a subsidiary's post-retirement medical plan. Coverage under this plan is restricted to a limited number of existing employees of the subsidiary. This plan is unfunded and the Company’s policy is to fund benefits as claims are incurred. The effect on operations of the post-retirement medical plan is shown in the following table:

	Year ended December 31,
	2012		2011			2010
Service cost for benefits earned	$	0.4	$	0.3		$	0.3
Interest cost on benefit obligation	2.3		2.2			2.3
Net amortization and deferral	0.3		(0.2		)	(0.9		)
Post-retirement medical plan costs	$	3.0	$	2.3		$	1.7

Amounts included in accumulated other comprehensive earnings consist of unamortized net loss of $12.3. The accumulated other comprehensive earnings that are expected to be recognized as components of the post-retirement medical plan costs during 2013 are $0.9 related to amortization of net loss.

A summary of the changes in the accumulated post-retirement benefit obligation follows:

	2012			2011
Balance at January 1	$	52.7		$	42.0
Service cost for benefits earned	0.4			0.3
Interest cost on benefit obligation	2.3			2.2
Participants contributions	0.4			0.4
Actuarial loss	6.9			9.8
Benefits paid	(2.0		)	(2.0		)
Balance at December 31	$	60.7		$	52.7
Recorded as:
Other liabilities	$	60.7		$	52.7

The weighted-average discount rates used in the calculation of the accumulated post-retirement benefit obligation were 4.2% and 4.3% as of December 31, 2012 and 2011, respectively. The health care cost trend rate was assumed to be 7.5% and 7.0% as of December 31, 2012 and 2011, respectively, declining gradually to 5.0% in the year 2020. The health care cost trend rate has a significant effect on the amounts reported. The impact of a percentage point change each year in the assumed health care cost trend rates would change the accumulated post-retirement benefit obligation as of December 31, 2012 by an increase of $8.9 or a decrease of $7.4. The impact of a percentage point change on the aggregate of the service cost and interest cost components of the 2012 post-retirement benefit costs results in an increase of $0.4 or decrease of $0.4.

The following assumed benefit payments under the Company's post-retirement benefit plan, which reflect expected future service, as appropriate, and were used in the calculation of projected benefit obligations, are expected to be paid as follows:

2013	$	2.1
2014	2.2
2015	2.4
2016	2.6
2017	2.7
Years 2018-2022	15.5