| Employee Benefits |
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We have a number of defined benefit pension plans and defined contribution plans covering
substantially all employees. Our primary pension plan is a noncontributory plan under which
benefits are based on employee career employment compensation. We also have unfunded non-U.S.
benefit plans and supplemental benefit plans. The supplemental benefit plans provide senior
management with supplemental retirement, disability and death benefits. In addition, we sponsor
voluntary 401(k) plans under which we may match employee contributions up to certain levels of
compensation as well as profit-sharing plans under which we contribute a percentage of eligible
employees’ compensation to the employees’ accounts. |
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We also provide certain medical, dental and life insurance benefits for retired employees and
eligible dependents. The medical and dental plans are contributory, while the life insurance
plan is noncontributory. We currently do not prefund any of these plans. |
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The components of net periodic benefit cost for our retirement plans and post-retirement plans
for the periods ended September 30 are as follows: |
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Three Months |
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Nine Months |
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2011 |
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2010 |
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2011 |
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2010 |
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Retirement Plans
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Service cost
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$ |
16.7 |
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$ |
15.2 |
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$ |
50.2 |
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$ |
45.8 |
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Interest cost
|
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24.9 |
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23.5 |
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74.5 |
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70.4 |
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Expected return on plan assets
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(31.8 |
) |
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(27.9 |
) |
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(95.5 |
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(83.6 |
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Amortization of prior service credit
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(0.1 |
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— |
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(0.3 |
) |
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(0.1 |
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Amortization of actuarial loss
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7.7 |
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3.7 |
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23.0 |
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11.1 |
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Net periodic benefit cost
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$ |
17.4 |
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$ |
14.5 |
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$ |
51.9 |
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$ |
43.6 |
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Post-Retirement Plans
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Service cost
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$ |
0.6 |
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$ |
0.7 |
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$ |
2.0 |
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$ |
1.9 |
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Interest cost
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1.2 |
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1.8 |
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4.6 |
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5.5 |
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Amortization of prior service credit
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(0.3 |
) |
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(0.3 |
) |
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(0.9 |
) |
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(0.9 |
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Amortization of actuarial gain
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(0.1 |
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— |
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— |
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— |
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Net periodic benefit cost
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$ |
1.4 |
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$ |
2.2 |
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$ |
5.7 |
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$ |
6.5 |
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As discussed in our Annual Report, we changed certain discount rate assumptions on our
retirement and post-retirement plans, which became effective on January 1, 2011. The effect of
the assumption changes on retirement and post-retirement expense for the three and nine months
ended September 30, 2011 did not have a material impact to our financial position, results of
operations or cash flows. |
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In the first nine months of 2011, we contributed $21.8 million to our retirement plans and
expect to make additional required contributions of approximately $6 million to our retirement
plans during the remainder of the year. We may elect to make additional non-required
contributions depending on investment performance and the pension plan status in the fourth
quarter of 2011. |
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