Pension Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2013

Pension And Other Postretirement Benefits Disclosure [Abstract]

Pension Plans and Other Postretirement Benefits

Pension Plans and Other Postretirement Benefits

The Company has defined benefit pension plans and defined contribution plans covering substantially all employees. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company funds the U.S. pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code.

The Company also sponsors several postretirement plans covering certain salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. For the non-collectively bargained plans, the Company maintains the right to amend or terminate the plans at its discretion.

For the three month periods ended September 30, 2013 and 2012, the components of pension expense and components of other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions):

	Pension Benefits						Other Postretirement Benefits
	Three months ended September 30,						Three months ended September 30,
	2013			2012			2013			2012
Service cost - benefits earned during the year	$	10.0		$	8.8		$	0.8		$	0.8
Interest cost on benefits earned in prior years	30.3			33.1			5.6			6.5
Expected return on plan assets	(43.8		)	(45.4		)	(0.1		)	(0.2		)
Amortization of prior service cost (credit)	0.8			1.6			(4.6		)	(4.5		)
Amortization of net actuarial loss	29.2			26.3			4.3			3.6
Total retirement benefit expense	$	26.5		$	24.4		$	6.0		$	6.2

For the nine month periods ended September 30, 2013 and 2012, the components of pension expense and components of other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions):

	Pension Benefits						Other Postretirement Benefits
	Nine months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Service cost - benefits earned during the year	$	30.0		$	26.3		$	2.4		$	2.4
Interest cost on benefits earned in prior years	90.9			99.3			16.8			19.5
Expected return on plan assets	(131.4		)	(136.1		)	(0.3		)	(0.6		)
Amortization of prior service cost (credit)	2.3			4.8			(13.7		)	(13.6		)
Amortization of net actuarial loss	87.6			78.9			12.9			10.9
Total retirement benefit expense	$	79.4		$	73.2		$	18.1		$	18.6

Other postretirement benefit costs for a defined contribution plan were $2.0 million for both the three and nine months ended September 30, 2013.