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Retirement Benefit Plans
3 Months Ended
Sep. 30, 2011
General Discussion of Pension and Other Postretirement Benefits [Abstract] 
Retirement Benefit Plans
RETIREMENT BENEFIT PLANS
Defined Contribution Plans
The company operates defined contribution retirement benefit plans for all qualifying employees. The assets of the plans are held separately from those of the company in funds under the control of trustees. When employees leave the plans prior to vesting fully in the contributions, the contributions payable by the company are reduced by the amount of forfeited contributions.
The total amounts charged to the Condensed Consolidated Statements of Income for the nine months ended September 30, 2011 and 2010, of $41.3 million and $35.9 million, respectively, represent contributions paid or payable to these plans by the company at rates specified in the rules of the plans. As of September 30, 2011, accrued contributions of $16.7 million (December 31, 2010: $18.9 million) for the current year will be paid to the plans when due.
Defined Benefit Plans
The company maintains legacy defined benefit pension plans for qualifying employees of its subsidiaries in the U.K., Ireland, Germany, and Taiwan. All defined benefit plans are closed to new participants. The company also maintains a post-retirement medical plan in the U.S., which was closed to new participants in 2005. In 2006, the plan was amended to eliminate benefits for all participants who will not meet retirement eligibility by 2008. The assets of all defined benefit plans are held in separate trustee-administered funds. Under the plans, the employees are generally entitled to retirement benefits based on final salary at retirement.
The components of net periodic benefit cost in respect of these defined benefit plans are as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
 
Retirement Plans
 
Medical Plan
 
Retirement Plans
 
Medical Plan
$ in millions
2011
 
2010
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Service cost
1.0

 
0.9

 
0.2

 
0.1

 
3.1

 
2.9

 
0.5

 
0.2

Interest cost
4.6

 
3.9

 
0.7

 
0.7

 
13.7

 
11.7

 
2.0

 
2.0

Expected return on plan assets
(3.7
)
 
(3.4
)
 
(0.1
)
 
(0.1
)
 
(11.2
)
 
(10.3
)
 
(0.3
)
 
(0.3
)
Amortization of prior service cost
0.8

 
—

 
(0.5
)
 
(0.5
)
 
2.3

 
—

 
(1.5
)
 
(1.5
)
Amortization of net actuarial (loss)/gain
(0.1
)
 
0.7

 
0.6

 
0.9

 
(0.4
)
 
2.0

 
2.0

 
2.7

Net periodic benefit cost
2.6

 
2.1

 
0.9

 
1.1

 
7.5

 
6.3

 
2.7

 
3.1


The estimated amounts of contributions expected to be paid to the retirement plans during 2011 is $6.1 million, with no expected contribution to the medical plan.