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Pension and Postretirement Plans
 6 Months Ended
Jun. 30, 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 June 30,
 
2012
 
2011
 
2012
 
2011
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
0.7

 
$
1.3

 
$
0.1

 
$
0.1

Interest cost on projected benefit obligation
4.6

 
6.2

 
1.2

 
1.8

Expected return on plan assets
(6.1
)
 
(7.3
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)
0.1

 
0.1

 
(3.3
)
 
(3.3
)
Actuarial loss
5.8

 
3.5

 
1.8

 
1.6

Curtailment loss
—

 
4.2

 
—

 
—

Benefit costs
$
5.1

 
$
8.0

 
$
(0.2
)
 
$
0.2


 
Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
1.3

 
$
2.6

 
$
0.2

 
$
0.2

Interest cost on projected benefit obligation
10.7

 
12.4

 
2.8

 
3.6

Expected return on plan assets
(13.0
)
 
(14.6
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)
0.1

 
0.2

 
(6.6
)
 
(6.6
)
Actuarial loss
9.7

 
7.1

 
3.4

 
3.2

Curtailment loss
—

 
4.2

 
—

 
—

Benefit costs
$
8.8

 
$
11.9

 
$
(0.2
)
 
$
0.4




Contributions in 2012 to the Company’s pension and postretirement plans are expected to be approximately $32 million and $22 million, respectively. For the six months ended June 30, 2012, contributions to the pension plans were $12.6 million and contributions to the postretirement plan were $11.4 million.