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Pension and Postretirement Plans
9 Months Ended
Sep. 30, 2013
General Discussion of Pension and Other Postretirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block]
Pension and Postretirement Plans
The Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan. During the third quarter of 2013, the Board approved several amendments to the postretirement plan that required a remeasurement of the associated benefit obligations. As a result, the Company recorded a $26.1 million reduction to the postretirement liability in the third quarter of 2013. Pension plan amendments were approved by the Board in the second quarter of 2013, and the Company remeasured the associated pension obligations. As a result of the pension plan amendment, the Company recorded a curtailment gain of $0.6 million and a $10.3 million reduction to the associated pension obligations in the three months ended June 30, 2013. For the three and nine months ended September 30, 2013 and 2012, pension and postretirement benefit costs were as follows:
 
Three Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
0.3

 
$
0.7

 
$
0.1

 
$
0.2

Interest cost on projected benefit obligation
4.7

 
5.3

 
1.0

 
1.4

Expected return on plan assets
(6.3
)
 
(6.6
)
 

 

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)
0.1

 

 
(3.7
)
 
(3.2
)
Actuarial loss
5.4

 
4.8

 
1.4

 
1.6

       Total amortization
5.5

 
4.8

 
(2.3
)
 
(1.6
)
Benefit costs
$
4.2

 
$
4.2

 
$
(1.2
)
 
$




 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
(dollars in millions)
Pension Benefits
 
Postretirement and
Other Benefits
Service cost
$
1.7

 
$
2.0

 
$
0.3

 
$
0.4

Interest cost on projected benefit obligation
14.1

 
16.0

 
3.0

 
4.2

Expected return on plan assets
(19.2
)
 
(19.6
)
 

 

Curtailment gain
(0.6
)
 

 

 

Amortization of:
 
 
 
 
 
 
 
Prior service cost (benefit)
0.2

 
0.1

 
(10.2
)
 
(9.8
)
Actuarial loss
16.4

 
14.5

 
4.3

 
5.0

       Total amortization
16.6

 
14.6

 
(5.9
)
 
(4.8
)
Benefit costs
$
12.6

 
$
13.0

 
$
(2.6
)
 
$
(0.2
)


Amortizations of prior service cost (benefit) and actuarial loss, and curtailment gain represent reclassifications from accumulated other comprehensive income. For the nine months ended September 30, 2013 and 2012, approximately 12% and 8%, respectively, of pension costs were capitalized as a component of property, plant and equipment related to construction of our wireline network.

Contributions in 2013 to the Company’s pension and postretirement plans are expected to be approximately $44 million and $18 million, respectively. For the nine months ended September 30, 2013, contributions to the pension plans were $39.9 million and contributions to the postretirement plan were $13.3 million.