Note 10: Benefit Plans

We sponsor three qualified, 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 allowed 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	2016	2015	2016	2015
Components of Net Periodic Benefit Cost
Service cost	$ 1,335	$ 1,213	$ 4,007	$ 3,638
Interest cost	9,127	11,004	27,379	33,077
Expected return on plan assets	(12,891)	(13,683)	(38,672)	(41,051)
Settlement charge	0	2,031	0	2,031
Amortization of prior service cost (credit)	(11)	12	(32)	36
Amortization of actuarial loss	1,540	5,383	4,622	16,292
Net periodic pension benefit cost (credit)	$ (900)	$ 5,960	$ (2,696)	$ 14,023
Pretax reclassifications from AOCI included in
net periodic pension benefit cost	$ 1,529	$ 7,426	$ 4,590	$ 18,359

The 2015 settlement charge noted above relates to a lump sum payment to a former employee from the nonqualified plan. This charge is reflected within both cost of revenues, and selling, administrative and general expenses in our accompanying Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015.

The contributions to pension plans for the nine months ended September 30, 2016 and 2015, as reflected on the Condensed Consolidated Statements of Cash Flows, pertain to benefit payments under the nonqualified plans. We do not expect to be required to make contributions to the qualified plans through 2017.

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	2016	2015	2016	2015
Components of Net Periodic Benefit Cost
Service cost	$ 281	$ 473	$ 842	$ 1,420
Interest cost	302	621	907	1,864
Amortization of prior service credit	(1,059)	(1,058)	(3,177)	(3,174)
Amortization of actuarial (gain) loss	(438)	9	(1,313)	28
Net periodic postretirement benefit cost (credit)	$ (914)	$ 45	$ (2,741)	$ 138
Pretax reclassifications from AOCI included in
net periodic postretirement benefit credit	$ (1,497)	$ (1,049)	$ (4,490)	$ (3,146)