Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2012

Pension and Other Postretirement Benefit Plans

9. 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,
	2012			2011			2012			2011
(dollars in millions)
Service cost, net of employee contributions	$	6.9		$	6.8		$	13.8		$	13.5
Interest cost		4.9			4.7			9.7			9.4
Expected return on plan assets		(5.9	)		(5.9	)		(11.7	)		(11.7	)
Amortization		2.5			2.0			5.0			4.0
Net periodic pension cost	$	8.4		$	7.6		$	16.8		$	15.2

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 cost was $0.1 million for both quarters ended June 30, 2012 and 2011. The net periodic benefit cost was $0.3 million for both of the six month periods ended June 30, 2012 and 2011.