Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2011

Pension and Other Postretirement Benefit Plans

Pension and Other Postretirement Benefit Plans

10. Pension and Other Postretirement Benefit Plans

Defined Benefit Pension Plans - The company has both tax-qualified and nonqualified, noncontributory defined benefit pension plans that together cover certain domestic and foreign employees. These plans provide benefits based upon a participant's compensation and years of service.

The components of net periodic pension cost are as follows:

	Quarter Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
(dollars in millions)
Service cost, net of employee contributions	$	6.8		$	6.1		$	13.5		$	12.3
Interest cost		4.7			4.8			9.4			9.5
Expected return on plan assets		(5.9	)		(5.5	)		(11.7	)		(11.0	)
Amortization		2.0			1.7			4.0			3.4
Net periodic pension cost	$	7.6		$	7.1		$	15.2		$	14.2

Other Postretirement Benefit Plan - The company does not provide subsidized postretirement healthcare benefits and life insurance coverage except for a limited number of former employees. As this plan is unfunded, contributions are made as benefits are incurred. The net periodic benefit expense was $0.1 million and $0.2 million for the quarters ended June 30, 2011 and 2010, respectively. The net periodic benefit expense was $0.3 million and $0.4 million for the six months ended June 30, 2011 and 2010, respectively.