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Defined Benefit Plans
 6 Months Ended
Jun. 30, 2016
Defined Benefit Plans
11. Defined Benefit Plans

The components of net periodic benefit cost for pension and postretirement benefits for the six and three months ended June 30, 2016 and 2015 were as follows:

 

(In millions)    Six Months Ended June 30,  
     Pension Benefits      Postretirement Benefits  
     2016      2015      2016      2015  

Service cost

    $ 5.6       $ 6.4       $ —         $ —     

Interest cost

      17.4         16.9         0.3         0.3   

Expected return on plan assets

      (19.0 )       (20.4 )       —           —     

Recognition of prior service credits

      —           —           (6.2 )       (7.0 ) 

Recognition of actuarial losses

      —           —           0.9         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Net periodic benefit cost (income)

    $ 4.0       $ 2.9       $ (5.0 )     $ (6.7 ) 
(In millions)    Three Months Ended June 30,  
     Pension Benefits      Postretirement Benefits  
     2016      2015      2016      2015  

Service cost

    $ 2.8       $ 3.2       $ —         $ —     

Interest cost

      8.7         8.4         0.2         0.1   

Expected return on plan assets

      (9.5 )       (10.2 )       —           —     

Recognition of prior service credits

      —           —           (3.9 )       (3.5 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net periodic benefit cost (income)

    $ 2.0       $ 1.4       $ (3.7 )     $ (3.4 ) 

In the first quarter of 2013, the Company communicated a plan amendment to reduce health benefits to certain retired employees. Due to the risk of litigation at the time of the initial communication, the Company elected to defer the full recognition of the benefit arising from the plan amendment. Following a favorable court decision in the first quarter of 2016, the Company determined that it was now probable that it would realize the benefit from the plan amendment. As a result, the Company performed a re-measurement of the affected retiree plan liability as of March 31, 2016. This remeasurement resulted in a $10.7 million reduction of accrued retiree benefit plan liabilities and a corresponding increase in prior service credits. These prior service credits will be amortized over the next eleven months after June 30, 2016. In addition, we recorded a $0.9 million actuarial loss during the first quarter of 2016. See Note 10, “Accumulated Other Comprehensive Loss,” for information on the impact of the remeasurement on other comprehensive loss.