Defined Benefit Plans. The total cost arising from the Company's defined benefit pension plans, including a portion included in discontinued operations, consists of the following components:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2013		2012		2013		2012
Service cost	$	12,713	$	10,876	$	38,788	$	28,684
Interest cost		14,242		14,828		42,776		44,248
Expected return on assets		(26,817)		(23,779)		(78,606)		(72,301)
Amortization of prior service cost		908		919		2,726		2,775
Recognized actuarial loss		1,797		2,502		5,741		6,574
Net Periodic Cost		2,843		5,346		11,425		9,980
Early retirement programs expense		―		7,486		22,700		8,508
Total Cost	$	2,843	$	12,832	$	34,125	$	18,488

The total cost above includes $5.6 million and $42.2 million in costs associated with the Publishing Subsidiaries that are included in discontinued operations for the three and nine months ended September 30, 2013, respectively. For the three and nine months ended September 30, 2012, the costs associated with the Publishing Subsidiaries were $13.9 million and $26.3 million, respectively.

The Company announced a Voluntary Retirement Incentive Program in February 2013, which was offered to certain employees of the Washington Post newspaper. The total early retirement program expense for this program for the nine months ended September 30, 2013 was $20.4 million. Of this amount, $12.0 million was recorded in the first quarter of 2013 and $8.4 million was recorded in the second quarter of 2013. In addition, the Washington Post newspaper recorded $2.3 million in special separation benefits for a group of employees in the first quarter of 2013. The early retirement program expense and special separation benefits for these programs are being funded from the assets of the Company's pension plan and are included in discontinued operations, net of tax, in 2013.

In the third quarter of 2012, the Company offered a Voluntary Retirement Incentive Program to certain employees of The Washington Post newspaper and recorded early retirement program expense of $7.5 million. In the first quarter of 2012, the Company offered a Voluntary Retirement Incentive Program to certain employees of Post-Newsweek Media and recorded early retirement program expense of $1.0 million. The early retirement program expense for these programs was funded from the assets of the Company's pension plan and are included in discontinued operations, net of tax, in 2012.

The total cost arising from the Company's Supplemental Executive Retirement Plan (SERP), including a portion included in discontinued operations, consists of the following components:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2013		2012		2013		2012
Service cost	$	429	$	367	$	1,288	$	1,100
Interest cost		1,023		1,060		3,069		3,181
Amortization of prior service cost		14		14		41		41
Recognized actuarial loss		711		458		2,133		1,375
Total Cost	$	2,177	$	1,899	$	6,531	$	5,697

The total cost above includes $0.2 million and $0.6 million in costs associated with the Publishing Subsidiaries that are included in discontinued operations for the three and nine months ended September 30, 2013, respectively. For the three and nine months ended September 30, 2012, the costs associated with the Publishing Subsidiaries were $0.2 million and $0.5 million, respectively.

Defined Benefit Plan Assets. The Company's defined benefit pension obligations are funded by a portfolio made up of 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 plan were allocated as follows:

	As of
	September 30,			December 31,
	2013			2012
U.S. equities		60	%		64	%
U.S. fixed income		12	%		13	%
International equities		28	%		23	%
		100	%		100	%

Essentially all of the assets are actively 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 of these 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. The investment managers cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway or 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 by the Plan administrator. As of September 30, 2013, the managers can invest no more than 24% of the assets in international stocks at the time the investment is made, and no less than 10% of the assets could be invested in fixed-income securities. None of the assets is managed internally by the Company.

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, 2013. 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, 2013 and December 31, 2012, the pension plan held common stock in one investment that exceeded 10% of total plan assets. This investment was valued at $389.3 million and $223.1 million at September 30, 2013 and December 31, 2012, respectively, or approximately 16% and 11%, respectively, of total plan assets. Assets also included $228.6 million and $179.9 million of Berkshire Hathaway common stock at September 30, 2013 and December 31, 2012, respectively. At September 30, 2013 and December 31, 2012, the pension plan held investments in one foreign country that exceeded 10% of total plan assets. These investments were valued at $406.4 million and $240.4 million at September 30, 2013 and December 31, 2012, respectively, or approximately 16% and 12%, respectively, of total plan assets.

Other Postretirement Plans. The total benefit arising from the Company's other postretirement plans, including a portion included in discontinued operations, consists of the following components:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2013		2012		2013		2012
Service cost	$	728	$	778	$	2,183	$	2,335
Interest cost		508		684		1,525		2,052
Amortization of prior service credit		(1,306)		(1,402)		(3,972)		(4,206)
Recognized actuarial gain		(504)		(370)		(1,549)		(1,110)
Net Periodic Benefit		(574)		(310)		(1,813)		(929)
Settlement gain		―		―		(3,471)		―
Total Periodic Benefit	$	(574)	$	(310)	$	(5,284)	$	(929)

The total benefit above includes $1.5 million and $2.8 million in benefits associated with the Publishing Subsidiaries that are included in discontinued operations for the three and nine months ended September 30, 2013, respectively. For the three and nine months ended September 30, 2012, the benefit associated with the Publishing Subsidiaries was $0.6 million and $1.8 million, respectively.

As part of the sale of The Herald, changes were made with respect to its postretirement medical plan, resulting in a $3.5 million settlement gain that is included in discontinued operations, net of tax, for the first quarter of 2013.

Disposition of Publishing Business. In connection with the October 1, 2013 sale of the Publishing Business, the liabilities under the Retirement Plan for The Washington Post Companies relating to the active employees of the Publishing Business will be transferred to the Purchaser, along with pension assets that have a value equal to the projected benefit obligation in respect of these active employees plus an additional $50 million. In the fourth quarter of 2013, the Company will recognize net curtailment and settlement gains (losses) related to this transfer as well as a remeasurement of each of the Company's pension and postretirement benefit plans. Additionally, the Company excluded the historical pension and postretirement benefits expense for retirees from the reclassification of the Publishing Subsidiaries' results to discontinued operations, since the associated assets and liabilities will be retained by the Company.