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Pension and Postretirement Plans
9 Months Ended
Sep. 30, 2011
General Discussion of Pension and Other Postretirement Benefits [Abstract] 
Pension and Postretirement Plans
Pension and Postretirement Plans
The Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan. A portion of these costs is capitalized as a component of internal labor costs incurred for network construction in the Wireline segment, historically averaging about 9%.
In the second quarter of 2011, the Company ratified a new labor agreement with its employees who participate in the Communication Workers of America union, which curtails future pension service credits for certain employees effective January 1, 2012. As a result of this event, the Company remeasured its projected benefit obligation for its non-management pension plan. A curtailment loss of $4.2 million was recognized in the nine month period ended September 30, 2011.
Pension and postretirement benefit costs are as follows:
 
Three Months Ended September 30,
 
2011
 
2010
 
2011
 
2010
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
1.2

 
$
1.3

 
$
0.1

 
$
—

Interest cost on projected benefit obligation
6.2

 
6.7

 
1.7

 
2.0

Expected return on plan assets
(7.4
)
 
(7.7
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)
0.1

 
0.2

 
(3.3
)
 
(3.2
)
Actuarial loss
3.6

 
2.4

 
1.7

 
1.3

Benefit costs
$
3.7

 
$
2.9

 
$
0.2

 
$
0.1


 
Nine Months Ended September 30,
 
2011
 
2010
 
2011
 
2010
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
3.8

 
$
3.9

 
$
0.3

 
$
0.2

Interest cost on projected benefit obligation
18.6

 
20.1

 
5.3

 
6.0

Expected return on plan assets
(22.0
)
 
(22.7
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)
0.3

 
0.4

 
(9.9
)
 
(9.8
)
Actuarial loss
10.7

 
7.0

 
4.9

 
3.9

Curtailment loss
4.2

 
—

 
—

 
—

Benefit costs
$
15.6

 
$
8.7

 
$
0.6

 
$
0.3



Contributions in 2011 to the Company’s pension and postretirement plans are expected to be approximately $20.1 million and $22.1 million, respectively. For the nine months ended September 30, 2011, contributions to the pension plans were $16.6 million and contributions to the postretirement plan were $18.3 million.