Note 9 - Pension Benefits and Postretirement Benefits Other Than Pensions

The Company sponsors a qualified defined benefit pension plan (the “Pension Plan”). The Pension Plan covers approximately 9,200 participants and beneficiaries, of which 1,800 are active employees. The Pension Plan is closed to new employees hired after January 1, 2006. The components of Pension Expense (Benefit) for the Pension Plan for the nine and three months ended September 30, 2016 and 2015 were:



	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2016			Sep 30, 2015			Sep 30, 2016			Sep 30, 2015
Service Cost Earned	$	4.8		$	7.9		$	—		$	2.7
Interest Cost on Projected Benefit Obligation	15.2			19.3			4.8			6.5
Expected Return on Plan Assets	(24.5		)	(26.3		)	(8.3		)	(8.8		)
Amortization of Accumulated Net Unrecognized Pension Costs	5.8			18.3			0.9			6.1
Curtailment Gain	(0.3		)	—			—			—
Total Pension Expense (Benefit) Recognized	$	1.0		$	19.2		$	(2.6	)	$	6.5

On May 12, 2016, the Company amended the Pension Plan to freeze benefit accruals, effective June 30, 2016, for substantially all of the participants under the plan. Accordingly, plan assets and liabilities were re-measured, resulting in balances in accumulated unrecognized pension loss and unamortized prior service credit prior to the freeze of $191.2 million and $0.3 million, respectively. In recognizing the curtailment, the Company recorded income of $0.3 million before income taxes in the second quarter of 2016 to immediately recognize the remaining unamortized prior service credit in the Pension Plan. The curtailment reduced the accumulated unrecognized pension loss by $23.3 million. The remaining accumulated unrecognized

Note 9 - Pension Benefits and Postretirement Benefits Other Than Pensions (continued)

pension loss of $167.9 million is being amortized over approximately 25 years, the remaining average estimated life expectancy of participants. Prior to the amendment, the accumulated unrecognized pension loss was being amortized over approximately five years, the remaining average service life of active participants.

On August 12, 2016, the Company made a voluntary cash contribution of $9.0 million to the Pension Plan.

The Company also sponsors a non-qualified supplemental defined benefit pension plan (the “Supplemental Plan”). As a result of the amendment to the Pension Plan, benefit accruals for all participants in the Supplemental Plan were also frozen effective June 30, 2016. Accordingly, plan liabilities for the Supplemental Plan were also re-measured in the second quarter of 2016, resulting in balances in accumulated unrecognized pension loss and unamortized prior service costs prior to the freeze of $1.6 million and $1.3 million, respectively. The Company recorded expense of $1.3 million in the second quarter of 2016 to immediately recognize the remaining net unamortized prior service costs in the Supplemental Plan. The curtailment reduced the Projected Benefit Obligation by $5.2 million. Accordingly, a curtailment gain of $3.6 million before tax was recorded to recognize the reduction in the Projected Benefit Obligation that exceeded the accumulated unrecognized pension loss prior to the freeze.

In addition to the Pension Plan and Supplemental Plan, the Company also sponsors several defined contribution benefit plans.

The Company also sponsors an other postretirement benefit (“OPEB”) plan that provides medical, dental and/or life insurance benefits to approximately 500 retired and 225 active employees (the “OPEB Plan”). The components of OPEB Benefit for the OPEB Plan for the nine and three months ended September 30, 2016 and 2015 were:



	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2016			Sep 30, 2015			Sep 30, 2016			Sep 30, 2015
Service Cost Earned	$	0.1		$	0.1		$	0.1		$	—
Interest Cost on Accumulated Postretirement Benefit Obligation	0.6			0.8			0.2			0.3
Amortization of Accumulated Net Unrecognized Gain	(1.1		)	(1.1		)	(0.4		)	(0.4		)
Total OPEB Benefit	$	(0.4	)	$	(0.2	)	$	(0.1	)	$	(0.1	)