2.2.0.7falsePension and Other Postretirement Benefits0214 - Disclosure - Pension and Other Postretirement Benefitstruefalsefalsefalse1USDfalsefalseUSDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0$20us-gaap_PensionAndOtherPostretirementBenefitExpenseAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalsexbrli:stringItemTypestringNo definition available.false31us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabelfalse1falsefalsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>14.</b>          <b>Pension and Other Postretirement Benefits</b>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">NiSource provides defined contribution plans and noncontributory defined benefit retirement plans
that cover its employees. Benefits under the defined benefit retirement plans reflect the
employees’ compensation, years of service and age at retirement. Additionally, NiSource provides
health care and life insurance benefits for certain retired employees. The majority of employees
may become eligible for these benefits if they reach retirement age while working for NiSource.
The expected cost of such benefits is accrued during the employees’ years of service. Current
rates of rate-regulated companies include postretirement benefit costs, including amortization of
the regulatory assets that arose prior to inclusion of these costs in rates. For most plans, cash
contributions are remitted to grantor trusts.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">NiSource expects to make contributions of approximately $161.0 million to its pension plans and
approximately $49.1 million to its postretirement medical and life plans in 2010, which could
change depending on market conditions. For the six months ended June 30, 2010, NiSource has
contributed $1.7 million to its pension plans and $28.0 million to its other postretirement benefit
plans.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">The following table provides the components of the plans’ net periodic benefits cost for the three
and six months ended June 30, 2010 and 2009:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="56%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Other Postretirement</b></td>
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000"><b>Pension Benefits</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000"><b>Benefits</b></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left">Three Months Ended June 30, <i>(in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2">2009</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 2px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Components of Net Periodic Benefit Cost</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left"> <b>$</b></td>
<td align="right"><b>9.8</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9.0</td>
<td> </td>
<td> </td>
<td align="left"> <b>$</b></td>
<td align="right"><b>2.4</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>31.4</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>10.9</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Expected return on assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(35.9</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(30.4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(5.8</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Amortization of transitional obligation
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>-</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Amortization of prior service cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>0.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Recognized actuarial loss
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>14.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>1.5</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 2px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Net Periodic Benefit Costs</b>
</div></td>
<td> </td>
<td align="left"> <b>$</b></td>
<td align="right"><b>20.3</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">31.8</td>
<td> </td>
<td> </td>
<td align="left"> <b>$</b></td>
<td align="right"><b>10.1</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td> </td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Other Postretirement</b></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000"><b>Pension Benefits</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000"><b>Benefits</b></td>
</tr>
<tr style="font-size: 10pt" valign="bottom">
<td nowrap="nowrap" align="left">Six Months Ended June 30, <i>(in millions)</i></td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2">2009</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2"><b>2010</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right" colspan="2">2009</td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 2px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Components of Net Periodic Benefit Cost</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Service cost
</div></td>
<td> </td>
<td align="left"> <b>$</b></td>
<td align="right"><b>19.5</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18.0</td>
<td> </td>
<td> </td>
<td align="left"> <b>$</b></td>
<td align="right"><b>4.8</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4.4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>62.8</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>21.3</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Expected return on assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(71.8</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(60.9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"><b>(11.7</b></td>
<td nowrap="nowrap"><b>)</b></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8.4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Amortization of transitional obligation
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>-</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.6</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Amortization of prior service cost
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>1.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>0.7</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Recognized actuarial loss
</div></td>
<td> </td>
<td> </td>
<td align="right"><b>29.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>3.0</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.8</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 2px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Total Net Periodic Benefit Costs</b>
</div></td>
<td> </td>
<td align="left"> <b>$</b></td>
<td align="right"><b>40.5</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">63.5</td>
<td> </td>
<td> </td>
<td align="left"> <b>$</b></td>
<td align="right"><b>18.7</b></td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">For the quarters ended June 30, 2010 and 2009, pension and other postretirement benefit cost of
approximately $4.0 million and $12.3 million, respectively, was capitalized as a component of plant
or recognized as a regulatory asset or liability consistent with regulatory orders for certain of
NiSource’s regulated businesses. For the six months ended June 30, 2010 and 2009, pension and
other postretirement benefit cost of approximately $7.1 million and
$24.6 million, respectively,
was capitalized as a component of plant or recognized as a regulatory asset or liability consistent
with regulatory orders for certain NiSource’s regulated businesses.
</div>
<div align="justify" style="font-size: 10pt; margin-top: 10pt">A provision of the 2010 Health Care Act requires the elimination, effective January 1, 2011, of
lifetime and restrictive annual benefit limits from certain medical plans. The NiSource Life and
Medical Benefits Program covers both active and retired individuals and caps lifetime benefits to
certain retirees. NiSource examined the provisions of the 2010 Health Care Act and determined the
enactment of the law in the first quarter of 2010 qualified as a significant event requiring
remeasurement of the other postretirement benefit obligation and plan assets as of March 31, 2010.
The remeasurement resulted in an increase to the other postretirement benefit obligation, net of
plan assets, of $39.7 million and corresponding increases to regulatory assets and AOCI of $35.7
million and $4.0 million, respectively. Net periodic postretirement benefit cost for 2010 will
increase by approximately $4.0 million, $1.3 million of which was recognized during second quarter
2010. All significant actuarial assumptions used in the remeasurement remained the same as the
December 31, 2009 valuation. During second quarter 2010 the Department of the Treasury, the
Department of Labor, and the Department of Health and
Human Services provided clarification of the provisions of the 2010 Health Care Act which indicated
the legislation does not apply to retiree-only medical plans. NiSource continues to evaluate the
structure of its medical plan in light of the new guidance. See Note 13, Income Taxes, for a
discussion of the legislation’s impact on NiSource’s accounting for income taxes.
</div>
</div>
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