Note 4 – Retirement benefits Pension plans We have various defined-benefit pension plans covering eligible current and former employees. Benefits under most plans are based on salary and years of service. The components of net periodic pension cost (credit) for our pension plans were as follows: | | | | | U.S. Plans | | Non-U.S. Plans | | Total | | | | (In millions) | | | 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service cost | | $ | - | | - | | 2.5 | | 1.5 | | 2.5 | | 1.5 | | | | Interest cost on projected benefit obligation | | | 11.6 | | 11.6 | | 4.3 | | 3.2 | | 15.9 | | 14.8 | | | | Return on assets – expected | | | (16.2) | | (16.7) | | (3.0) | | (2.6) | | (19.2) | | (19.3) | | | | Amortization of losses | | | 7.0 | | 4.9 | | 0.9 | | 0.8 | | 7.9 | | 5.7 | | | | Settlement loss | | | - | | - | | 0.7 | | - | | 0.7 | | - | | | | Net periodic pension cost (credit) | | $ | 2.4 | | (0.2) | | 5.4 | | 2.9 | | 7.8 | | 2.7 | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Service cost | | $ | - | | - | | 7.8 | | 4.6 | | 7.8 | | 4.6 | | | | Interest cost on projected benefit obligation | | | 34.7 | | 34.9 | | 12.9 | | 9.8 | | 47.6 | | 44.7 | | | | Return on assets – expected | | | (48.7) | | (50.1) | | (9.1) | | (7.9) | | (57.8) | | (58.0) | | | | Amortization of losses | | | 21.0 | | 14.6 | | 3.2 | | 2.5 | | 24.2 | | 17.1 | | | | Settlement loss | | | - | | - | | 1.7 | | - | | 1.7 | | - | | | | Net periodic pension cost (credit) | | $ | 7.0 | | (0.6) | | 16.5 | | 9.0 | | 23.5 | | 8.4 | |
Based on December 31, 2010, data, assumptions and funding regulations, we are not required to make a contribution to our primary U.S. plan during 2011. Retirement benefits other than pensions We provide retirement healthcare benefits for eligible current and former U.S. and Canadian employees, including former employees of our former U.S. coal operation. Retirement benefits related to our former coal operation include medical benefits provided by the Pittston Coal Group Companies Employee Benefit Plan for United Mine Workers of America Represented Employees (the “UMWA plans”) as well as costs related to Black Lung obligations. The components of net periodic postretirement cost related to retirement benefits other than pensions were as follows: | | | | | | UMWA plans | | Black lung and other plans | | Total | | | | (In millions) | | | 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest cost on accumulated postretirement | | | | | | | | | | | | | | | | | | benefit obligations | | $ | 5.9 | | 6.8 | | 0.7 | | 0.8 | | 6.6 | | 7.6 | | | | Return on assets – expected | | | (6.4) | | (6.3) | | - | | - | | (6.4) | | (6.3) | | | | Amortization of losses (gains) | | | 3.8 | | 4.1 | | 0.6 | | 0.6 | | 4.4 | | 4.7 | | | | Net periodic pension cost (credit) | | $ | 3.3 | | 4.6 | | 1.3 | | 1.4 | | 4.6 | | 6.0 | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest cost on accumulated postretirement | | | | | | | | | | | | | | | | | | benefit obligations | | $ | 17.9 | | 20.2 | | 2.1 | | 2.2 | | 20.0 | | 22.4 | | | | Return on assets – expected | | | (19.2) | | (19.0) | | - | | - | | (19.2) | | (19.0) | | | | Amortization of losses (gains) | | | 11.3 | | 12.1 | | 1.8 | | 1.3 | | 13.1 | | 13.4 | | | | Net periodic pension cost (credit) | | $ | 10.0 | | 13.3 | | 3.9 | | 3.5 | | 13.9 | | 16.8 | |
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