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Pension and Postretirement Plans
 6 Months Ended
Jun. 30, 2023
Retirement Benefits, Description [Abstract]  
Pension and Postretirement Plans PENSION AND POSTRETIREMENT PLANS
Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components:
  Three Months Ended 
 June 30		Six Months Ended 
 June 30
(in thousands)2023202220232022
Service cost$7,573 $4,993 $16,816 $11,024 
Interest cost11,559 7,611 23,093 15,281 
Expected return on assets(38,085)(41,963)(76,423)(83,926)
Amortization of prior service cost412 709 822 1,418 
Recognized actuarial gain(9,888)(17,539)(20,028)(34,768)
Net Periodic Benefit(28,429)(46,189)(55,720)(90,971)
Special separation benefit expense
5,517 — 9,646 — 
Total Benefit$(22,912)$(46,189)$(46,074)$(90,971)
In the second quarter of 2023, the Company recorded $5.5 million in expenses related to Separation Incentive Programs (SIPs) for certain Kaplan, Graham Media Group, Leaf Group, Code3 and Pinna employees, which will be funded from the assets of the Company’s pension plans. In the first quarter of 2023, the Company recorded $4.1 million in expenses related to SIPs for certain Leaf Group and Code3 employees, which was 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 
 June 30		Six Months Ended 
 June 30
(in thousands)2023202220232022
Service cost$148 $228 $296 $456 
Interest cost1,165 822 2,330 1,644 
Amortization of prior service cost— 9 — 18 
Recognized actuarial loss— 167 — 333 
Net Periodic Cost$1,313 $1,226 $2,626 $2,451 
Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of private investment funds, a U.S. stock index fund, 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
  June 30,
2023		December 31,
2022
  
U.S. equities61 %59 %
Private investment funds17 %16 %
International equities11 %11 %
U.S. stock index fund4 %7 %
U.S. fixed income7 %7 %
  100 %100 %
The Company manages approximately 41% of the pension assets internally, of which the majority is invested in private investment funds with the remaining investments in Berkshire Hathaway and Markel stock, a U.S. stock index fund, 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 the stock of Alphabet and Berkshire Hathaway, and no more than 30% 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, and no less than 10% of the assets could be invested in fixed-income securities. 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 June 30, 2023. 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 June 30, 2023, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $946.4 million, or approximately 34% of total plan assets. At December 31, 2022, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $842.6 million, or approximately 33% of total plan assets.
Other Postretirement Plans. The total benefit arising from the Company’s other postretirement plans consists of the following components:
  Three Months Ended 
 June 30		Six Months Ended 
 June 30
(in thousands)2023202220232022
Interest cost$52 $25 $74 $49 
Amortization of prior service credit(1)(2)(2)(4)
Recognized actuarial gain(546)(710)(1,172)(1,421)
Net Periodic Benefit$(495)$(687)$(1,100)$(1,376)