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Pension and Postretirement Plans
3 Months Ended
Mar. 31, 2012
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 approximately 8%.
Effective January 1, 2012 and pursuant to a new labor agreement ratified in 2011, pension credits have been curtailed for certain bargained employees.
Pension and postretirement benefit costs are as follows:
 
Three Months Ended March 31,
 
2012
 
2011
 
2012
 
2011
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
0.6

 
$
1.3

 
$
0.1

 
$
0.1

Interest cost on projected benefit obligation
6.1

 
6.2

 
1.6

 
1.8

Expected return on plan assets
(6.9
)
 
(7.3
)
 

 

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)

 
0.1

 
(3.3
)
 
(3.3
)
Actuarial loss
3.9

 
3.6

 
1.6

 
1.6

Benefit costs
$
3.7

 
$
3.9

 
$

 
$
0.2



Contributions in 2012 to the Company’s pension and postretirement plans are expected to be approximately $32.1 million and $21.6 million, respectively. For the three months ended March 31, 2012, contributions to the pension and postretirement plans were $6.1 million each.