Note 10: Benefit Plans

We sponsor three funded, noncontributory defined benefit pension plans. These plans cover substantially all employees hired prior to July 2007, other than those covered by union-administered plans. Normal retirement age is 65, but the plans contain provisions for earlier retirement. Benefits for the Salaried Plan and the Chemicals Hourly Plan are generally based on salaries or wages and years of service; the Construction Materials Hourly Plan provides benefits equal to a flat dollar amount for each year of service. In addition to these qualified plans, we sponsor three unfunded, nonqualified pension plans.

Effective July 2007, we amended our defined benefit pension plans to no longer accept new participants. In December 2013, we amended our defined benefit pension plans so that future service accruals for salaried pension participants ceased effective December 31, 2013. This change included a special transition provision which will allow covered compensation through December 31, 2015 to be considered in the participants’ benefit calculations.

The following table sets forth the components of net periodic pension benefit cost:



PENSION BENEFITS	Three Months Ended		Nine Months Ended
	September 30			September 30
in thousands	2015	2014		2015	2014
Components of Net Periodic Benefit Cost
Service cost	$ 1,213	$ 1,039		$ 3,638	$ 3,118
Interest cost	11,004	11,098		33,077	33,294
Expected return on plan assets	(13,683)	(12,701)		(41,051)	(38,102)
Settlement charge	2,031	0		2,031	0
Amortization of prior service cost	12	47		36	141
Amortization of actuarial loss	5,383	2,806		16,292	8,416
Net periodic pension benefit cost	$ 5,960	$ 2,289		$ 14,023	$ 6,867
Pretax reclassifications from AOCI included in
net periodic pension benefit cost	$ 7,426	$ 2,853		$ 18,359	$ 8,557

The reclassifications from AOCI noted in the table above are related to a settlement charge, amortization of prior service costs and actuarial losses as shown in Note 11. The settlement charge noted above relates to a lump sum payment to a former employee from the nonqualified plan. This $2,031,000 charge is reflected within both cost of revenues, and selling, administrative and general expenses in our accompanying Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2015.

Prior contributions, along with the existing funding credits, are expected to be sufficient to cover required contributions to the qualified plans through 2015.

In addition to pension benefits, we provide certain healthcare and life insurance benefits for some retired employees. In 2012, we amended our postretirement healthcare plan to cap our portion of the medical coverage cost at the 2015 level. Substantially all of our salaried employees and, where applicable, certain of our hourly employees may become eligible for these benefits if they reach a qualifying age and meet certain service requirements. Generally, Company-provided healthcare benefits terminate when covered individuals become eligible for Medicare benefits, become eligible for other group insurance coverage or reach age 65, whichever occurs first.

The following table sets forth the components of net periodic postretirement benefit cost:



OTHER POSTRETIREMENT BENEFITS	Three Months Ended		Nine Months Ended
	September 30			September 30
in thousands	2015	2014		2015	2014
Components of Net Periodic Benefit Cost
Service cost	$ 473	$ 536		$ 1,420	$ 1,609
Interest cost	621	824		1,864	2,473
Curtailment gain	0	0		0	(3,832)
Amortization of prior service credit	(1,058)	(1,081)		(3,174)	(3,245)
Amortization of actuarial loss	9	57		28	170
Net periodic postretirement benefit cost (credit)	$ 45	$ 336		$ 138	$ (2,825)
Pretax reclassifications from AOCI included in
net periodic postretirement benefit credit	$ (1,049)	$ (1,024)		$ (3,146)	$ (6,907)

The reclassifications from AOCI noted in the table above are related to a curtailment gain, amortization of prior service credits and actuarial losses as shown in Note 11. The March 2014 sale of our cement and concrete businesses in the Florida area (see Note 16) significantly reduced total expected future service of our postretirement plans resulting in a one-time curtailment gain of $3,832,000. This gain is reflected within gain on sale of property, plant & equipment and businesses in our accompanying Condensed Consolidated Statement of Comprehensive Income for the nine months ended September 30, 2014.