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Employee Retirement Benefits
 9 Months Ended
Sep. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
Employee Retirement Benefits
Employee Retirement Benefits
The following table sets forth the net periodic pension and postretirement (including health care, life insurance and auto) expense (in millions of dollars):
 
Pension Benefits
 
Postretirement
Benefits (U.S.)
 
U.S.
 
Non-U.S.
 
 
Three Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
5.2

 
$
6.6

 
$
0.3

 
$
(0.5
)
 
$
—

 
$
0.1

Interest cost
7.3

 
6.6

 
2.2

 
2.9

 
0.2

 
0.2

Expected return on plan assets
(8.3
)
 
(7.7
)
 
(3.0
)
 
(3.5
)
 
—

 
—

Net amortizations
2.9

 
1.1

 
—

 
0.1

 
—

 
(0.1
)
Settlement loss
—

 
1.5

 
—

 
—

 
—

 
—

Curtailment gain
—

 
—

 
—

 
—

 
—

 
—

Net pension /
 
 
 
 
 
 
 
 
 
 
 
postretirement expense
$
7.1

 
$
8.1

 
$
(0.5
)
 
$
(1.0
)
 
$
0.2

 
$
0.2

 
Pension Benefits
 
Postretirement
Benefits (U.S.)
 
U.S.
 
Non-U.S.
 
 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Components of Net Periodic
 
 
 
 
 
 
 
 
 
 
 
Benefit Cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
18.5

 
$
19.7

 
$
0.9

 
$
3.0

 
$
0.2

 
$
0.2

Interest cost
21.2

 
20.6

 
6.8

 
8.5

 
0.6

 
0.7

Expected return on plan assets
(23.6
)
 
(22.9
)
 
(9.0
)
 
(9.7
)
 
—

 
—

Net amortizations
8.9

 
5.4

 
(0.1
)
 
(0.5
)
 
—

 
—

Settlement loss
—

 
2.2

 
—

 
—

 
—

 
—

Curtailment gain
—

 
—

 
—

 
(13.1
)
 
—

 
—

Net pension /
 
 
 
 
 
 
 
 
 
 
 
postretirement expense
$
25.0

 
$
25.0

 
$
(1.4
)
 
$
(11.8
)
 
$
0.8

 
$
0.9


Our policy for funded plans is to contribute annually, at a minimum, amounts required by applicable laws, regulations and union agreements. From time to time we make contributions beyond those legally required. For the three and nine months ended September 30, 2012, we contributed $14.5 million and $46.7 million, respectively, to our worldwide pension plans, including discretionary contributions of $0 and $3.2 million, respectively, to our United Kingdom, or "U.K.," defined benefit pension plan and benefit payments made through unfunded plans. For the three and nine months ended September 30, 2011, we contributed $16.6 million and $73.7 million, respectively, to our worldwide pension plans, including discretionary contributions of $0.5 million and $13.7 million, respectively, to our U.K. defined benefit pension plan and benefit payments made through unfunded plans. The level of future contributions will vary, and is dependent on a number of factors including investment returns, interest rate fluctuations, plan demographics, funding regulations and the results of the final actuarial valuation.
On June 30, 2011, we approved an agreement with the trustees of our U.K. defined benefit pension plan to cease all future benefit accruals to existing members and to close the plan to new members. Effective July 1, 2011, we introduced a defined contribution plan with company matching contributions to replace the U.K. defined benefit pension plan. The company matching contributions are generally 100% of the employee contributions, up to 8% of pay, except that former members of the defined benefit pension plan receive an enhanced match for five years. In the year ended December 31, 2011, we recognized a gain of $13.1 million for the U.K. plan that represented unamortized prior service cost from a 2010 amendment that eliminated discretionary pension increases related to pre-1997 service primarily for inactive employees.
We also sponsor postretirement health care and life insurance benefits for a limited number of employees with hire dates prior to January 1, 1990. The postretirement health care plan is contributory with participants' contributions adjusted annually. An unfunded liability is recorded. We also have a key officer postretirement car benefit plan that provides the use of a vehicle from our fleet and insurance for the participants' benefit for retired Senior Vice Presidents and above who have a minimum of 20 years of service and who retire at age 58 or above. The assigned car benefit is available for 15 years post-retirement or until the participant reaches the age of 80, whichever occurs last.
We participate in various "multiemployer" pension plans. In the event that we withdraw from participation in one of these plans, then applicable law could require us to make an additional lump-sum contribution to the plan, and we would have to reflect that as an expense in our consolidated statement of operations and as a liability on our condensed consolidated balance sheet. Our withdrawal liability for any multiemployer plan would depend on the extent of the plan's funding of vested benefits. At least one multiemployer plan in which we participate is reported to have, and other of our multiemployer plans could have, significant underfunded liabilities. Such underfunding may increase in the event other employers become insolvent or withdraw from the applicable plan or upon the inability or failure of withdrawing employers to pay their withdrawal liability. In addition, such underfunding may increase as a result of lower than expected returns on pension fund assets or other funding deficiencies. The occurrence of any of these events could have a material adverse effect on our consolidated financial position, results of operations or cash flows.