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Retirement and Benefit Plans
 3 Months Ended
Mar. 31, 2015
Compensation and Retirement Disclosure [Abstract]  
Retirement and Benefit Plans
Retirement and Benefit Plans
 
The following table presents the pension benefit costs:
 
 
Three Months Ended
March 31
 
2015
 
2014
 
(thousands)
Service cost
$
475

 
$
401

Interest cost
4,707

 
5,151

Expected return on plan assets
(5,200
)
 
(5,268
)
Amortization of actuarial (gain) loss
1,599

 
(6
)
Plan settlement loss
501

 
—

Net periodic benefit cost
$
2,082

 
$
278


 
In March 2015, we contributed company-owned real property to the qualified defined benefit pension plan from one location in our Building Materials Distribution segment. The pension plan obtained an independent appraisal of the property, and based on the appraisal, the plan recorded the contribution at fair value of approximately $3 million.
 
We are leasing back the contributed property for an initial term of ten years with two five-year extension options and continue to use the property in our distribution operations. Rent payments are made quarterly, with first-year annual rent of $0.2 million and 2% annual escalation rates thereafter. The lease provides us a right of first refusal on any subsequent sale by the pension plan, as well as repurchase options at the end of the initial term and extension periods. The plan engaged an independent fiduciary who negotiated the lease terms and also manages the property on behalf of the plan.
 
We determined that the contribution of the property does not meet the accounting definition of a plan asset within the scope of Accounting Standards Codification 715, Compensation — Retirement Benefits. Accordingly, the contributed property is not considered a contribution for accounting purposes and, as a result, is not included in plan assets and has no impact on the net pension liability recorded on our Consolidated Balance Sheets. We continue to depreciate the carrying value of the property in our financial statements, and no gain or loss was recognized at the contribution date for accounting purposes. Lease payments are recorded as pension contributions.

In the first three months of 2015, we contributed $12.9 million in cash to the pension plans. For the remainder of 2015, we expect to make approximately $1.5 million in additional cash contributions to the pension plans.