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Pension and Postretirement Plans
 9 Months Ended
Sep. 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 September 30,
 
2012
 
2011
 
2012
 
2011
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
0.7

 
$
1.2

 
$
0.2

 
$
0.1

Interest cost on projected benefit obligation
5.3

 
6.2

 
1.4

 
1.7

Expected return on plan assets
(6.6
)
 
(7.4
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)
—

 
0.1

 
(3.2
)
 
(3.3
)
Actuarial loss
4.8

 
3.6

 
1.6

 
1.7

Benefit costs
$
4.2

 
$
3.7

 
$
—

 
$
0.2


 
Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
2.0

 
$
3.8

 
$
0.4

 
$
0.3

Interest cost on projected benefit obligation
16.0

 
18.6

 
4.2

 
5.3

Expected return on plan assets
(19.6
)
 
(22.0
)
 
—

 
—

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)
0.1

 
0.3

 
(9.8
)
 
(9.9
)
Actuarial loss
14.5

 
10.7

 
5.0

 
4.9

Curtailment loss
—

 
4.2

 
—

 
—

Benefit costs
$
13.0

 
$
15.6

 
$
(0.2
)
 
$
0.6




Contributions in 2012 to the Company’s pension and postretirement plans are expected to be approximately $26 million and $22 million, respectively. For the nine months ended September 30, 2012, contributions to the pension plans were $22.5 million and contributions to the postretirement plan were $16.0 million.