v3.25.2
Pension and Postretirement Plans
 6 Months Ended
Jun. 30, 2025
Retirement Benefits, Description [Abstract]  
Pension and Postretirement Plans PENSION AND POSTRETIREMENT PLANS
Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components:
  Three Months Ended 
 June 30		Six Months Ended 
 June 30
(in thousands)2025202420252024
Service cost$11,699 $14,071 $23,891 $28,105 
Interest cost6,956 11,246 13,377 22,440 
Expected return on assets(41,881)(41,239)(83,852)(82,929)
Amortization of prior service credit(521)(482)(1,040)(976)
Recognized actuarial gain— (11,263)— (23,781)
Net Periodic Benefit(23,747)(27,667)(47,624)(57,141)
Special separation benefit expense
6,015 16,410 6,639 16,828 
Total Benefit$(17,732)$(11,257)$(40,985)$(40,313)
In the second quarter of 2025, the Company recorded $6.0 million in expenses related to Separation Incentive Programs (SIPs) for certain Kaplan, Graham Media Group (GMG), WGB, Saatchi Art, Society6, Code3 and Decile employees. In the first quarter of 2025, the Company recorded $0.6 million in expenses related to a SIP for certain WGB employees. These SIPs were funded from the assets of the Company’s pension plans.
In the second quarter of 2024, the Company recorded $14.8 million in expenses related to a Voluntary Retirement Incentive Program (VRIP) for certain GMG and Corporate employees. Also in the second quarter of 2024, the Company recorded $1.6 million in expenses related to SIPs for certain Framebridge and Code3 employees. In the first quarter of 2024, the Company recorded $0.4 million in expenses related to a SIP for certain Framebridge employees. These VRIPs and SIPs were funded from the assets of the Company’s pension plans.
The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components:
  Three Months Ended 
 June 30		Six Months Ended 
 June 30
(in thousands)2025202420252024
Service cost$238 $288 $477 $575 
Interest cost1,197 1,129 2,394 2,257 
Net Periodic Cost$1,435 $1,417 $2,871 $2,832 
Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of private investment funds and a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plans were allocated as follows:
  As of
  June 30,
2025		December 31,
2024
  
U.S. equities59 %64 %
Private investment funds17 %19 %
International equities19 %12 %
U.S. fixed income5 %5 %
  100 %100 %
The Company manages approximately 41% of the pension assets internally, of which the majority is invested in Berkshire Hathaway stock, with the remaining investments in private investment funds, Markel stock, and short-term fixed-income securities. The remaining 59% of plan assets are managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both investment managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. One investment manager cannot invest more than 15% of the assets at the time of purchase in each of the stocks of Alphabet and Berkshire Hathaway, and no more than 50% of the assets it manages in specified international exchanges at the time the investment is made. The other investment manager cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway and no more than 15% of the assets it manages in specified international exchanges at the time the investment is made. Excluding the exceptions noted above, the investment managers cannot invest more than 10% of the assets in the securities of any other single issuer, except for obligations of the U.S. Government, without receiving prior approval from the Plan administrator.
In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the Company may consult with and consider the input of financial and other professionals in developing appropriate return benchmarks.
The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant concentrations (defined as greater than 10% of plan assets) of credit risk as of June 30, 2025. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At June 30, 2025, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $1,215.7 million, or approximately 37% of total plan assets. At December 31, 2024, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $1,178.5 million, or approximately 40% of total plan assets. Assets also included $115.9 million and $100.1 million of Markel shares at June 30, 2025 and December 31, 2024, respectively.
Other Postretirement Plans. The total benefit arising from the Company’s other postretirement plans consists of the following components:
  Three Months Ended 
 June 30		Six Months Ended 
 June 30
(in thousands)2025202420252024
Interest cost$12 $14 $22 $28 
Recognized actuarial gain(380)(470)(759)(939)
Net Periodic Benefit$(368)$(456)$(737)$(911)