Pension and Other Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2012

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 September  30,						Nine Months  Ended September 30,
	2012			2011			2012			2011
(dollars in millions)
Service cost, net of employee contributions	$	7.0		$	6.8		$	20.8		$	20.3
Interest cost		4.9			4.8			14.6			14.2
Expected return on plan assets		(6.2	)		(5.9	)		(17.9	)		(17.6	)
Amortization		2.8			1.9			7.8			5.9
Net periodic pension cost	$	8.5		$	7.6		$	25.3		$	22.8

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 $0.2 million for both quarters ended September 30, 2012 and 2011. The net periodic benefit cost was $0.5 million for both of the nine month periods ended September 30, 2012 and 2011.