v3.26.3
Pension Plans
 9 Months Ended
Sep. 30, 2026
Retirement Benefits, Description [Abstract]  
Pension Plans PENSION PLANS
Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components:
  Three Months Ended 
 September 30		Nine Months Ended 
 September 30
(in thousands)2026202520262025
Service cost$12,379 $11,772 $35,881 $35,663 
Interest cost8,145 8,012 24,437 21,389 
Expected return on assets(44,409)(41,915)(133,227)(125,767)
Amortization of prior service credit(496)(520)(1,489)(1,560)
Net Periodic Benefit(24,381)(22,651)(74,398)(70,275)
Settlement(14,950)— (151,905)— 
Early retirement and separation program costs3,201 2,546 11,138 9,185 
Total Benefit$(36,130)$(20,105)$(215,165)$(61,090)
In June 2026, the Company purchased an irrevocable group annuity contract from an insurance company for $113.9 million to settle $124.3 million of the outstanding defined benefit pension obligation related to certain retirees and beneficiaries. The purchase of the group annuity contract was funded from the assets of the Company’s pension plan. As a result of this transaction, the Company was relieved of all responsibility for these pension obligations and the insurance company is now required to pay and administer the retirement benefits owed to approximately 1,080 retirees and beneficiaries, with no change to the amount, timing or form of monthly retirement benefit payments. As a result, the Company remeasured the accumulated and projected benefit obligation as of June 17, 2026 and recorded a pre-tax settlement gain of $137.0 million. In the third quarter of 2026, the Company made additional lump-sum payments that triggered a remeasurement of its accumulated and projected benefit obligations as of September 30, 2026, resulting in a pre-tax settlement gain of $15.0 million. The new measurement bases were used for the recognition of the Company’s pension benefit following the remeasurements. The settlement gains are included in non-operating pension and postretirement benefit income on the Condensed Consolidated Statements of Operations.
In the third quarter of 2026, the Company recorded $2.4 million in expenses related to a Separation Incentive Program (SIP) for certain Kaplan, Dekko, Framebridge and Saatchi Art employees. Also in the third quarter of 2026, the Company recorded $0.8 million in expenses related to a Voluntary Retirement Incentive Program (VRIP) for certain Corporate employees. In the second quarter of 2026, the Company recorded $2.0 million in expenses related to a VRIP for certain Dekko employees. Also in the second quarter of 2026, the Company recorded $1.9 million in expenses related to SIPs for certain Kaplan, Graham Media Group (GMG), Code3 and Slate employees. In the first quarter of 2026, the Company recorded $4.1 million in expenses related to SIPs for certain Kaplan, GMG, Joyce, Dekko, Framebridge, Code3, Slate and Corporate employees. These SIPs and VRIPs were funded from the assets of the Company’s pension plans.
In the third quarter of 2025, the Company recorded $2.5 million in expenses related to SIPs for certain Kaplan, GMG, Joyce, Society6, Saatchi Art, Code3 and Corporate employees. In the second quarter of 2025, the Company recorded $6.0 million in expenses related to SIPs for certain Kaplan, 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.
The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components:
  Three Months Ended 
 September 30		Nine Months Ended 
 September 30
(in thousands)2026202520262025
Service cost$289 $239 $868 $716 
Interest cost1,154 1,198 3,464 3,592 
Net Periodic Cost$1,443 $1,437 $4,332 $4,308 
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
  September 30,
2026		December 31,
2025
  
U.S. equities62 %63 %
Private investment funds18 %17 %
International equities17 %16 %
U.S. fixed income3 %4 %
  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 September 30, 2026. 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 September 30, 2026, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $1,253.7 million, or approximately 38% of total plan assets. At December 31, 2025, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $1,267.4 million, or approximately 37% of total plan assets. Assets also included $99.3 million and $124.7 million of Markel shares at September 30, 2026 and December 31, 2025, respectively.