v3.26.1
PENSION BENEFITS
 6 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
Pension Benefits

NOTE H: PENSION BENEFITS

In connection with the Company's divestiture of its Midlothian cement plant, related cement distribution terminals, and Texas ready mixed concrete plants (see Note B), certain employees ceased to be active participants in the Company's qualified defined benefit pension plan. This event represented a curtailment and required the Company to remeasure its projected benefit obligation and plan assets in late April and early May.

The Company elected a practical expedient and performed the remeasurement as of April 30, 2026, the month-end measurement date nearest to when the affected employees ceased to be active participants in the plan. The discount rate for the remeasurement was 6.21% compared with 6.00% prior to the remeasurement. As a result of the remeasurement, the Company recognized a curtailment gain of $5 million during the quarter ended June 30, 2026.

The net periodic benefit cost for pension benefits includes the following components:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Service cost

 

$

4

 

 

$

9

 

 

$

17

 

 

$

18

 

Interest cost

 

 

7

 

 

 

14

 

 

 

30

 

 

 

29

 

Expected return on assets

 

 

(11

)

 

 

(20

)

 

 

(47

)

 

 

(41

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

 

1

 

 

 

1

 

 

 

3

 

 

 

3

 

Actuarial loss

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Curtailment gain

 

 

(5

)

 

 

—

 

 

 

(5

)

 

 

—

 

Settlement charge

 

 

5

 

 

 

—

 

 

 

5

 

 

 

—

 

Net periodic benefit cost

 

$

1

 

 

$

4

 

 

$

4

 

 

$

10

 
The components of net periodic benefit cost, other than service cost, are included in the line item Other nonoperating income, net, in the consolidated statements of earnings and comprehensive earnings. Based on the roles of the employees, service cost is included in the Cost of revenues or Selling, general and administrative expenses line items in the consolidated statements of earnings and comprehensive earnings.