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PENSION AND NON-PENSION POST-EMPLOYMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
PENSION AND NON-PENSION POST-EMPLOYMENT BENEFIT PLANS PENSION AND NON-PENSION POST-EMPLOYMENT BENEFIT PLANS:
(a)    Plan summaries:

We provide pension and non-pension post-employment benefit plans for our employees. At December 31, 2024, such plans included our pension plan for employees in the United Kingdom (U.K. pension plan), which generally provides participants with stated benefits on retirement based on their pensionable service, either in annuities and/or lump sum
payments. The U.K. pension plan is closed to new members and none of such plan members are active employees of the Company. Defined contribution pension plans are offered to certain employees, mainly in Canada and the U.S. We provide non-pension post-employment benefits (under other benefit plans) to retired and terminated employees in Canada, the U.S., Mexico, Thailand, South Korea, Indonesia and the Philippines. These benefits may include one-time retirement and specified termination benefits, medical, surgical, hospitalization coverage, supplemental health, dental and/or group life insurance.

To mitigate the actuarial and investment risks of our defined benefit pension plans, we purchase annuities from time to time (using existing plan assets) from third party insurance companies for certain, or all, plan participants. The purchase of annuities by the pension plan substantially hedges the financial risks associated with the related pension obligations.

The overall governance of our pension plans is conducted by our Human Resources and Compensation Committee which, through annual reviews, approves material plan changes, reviews funding levels, compliance matters and plan assumptions, and ensures that the plans are administered in accordance with local statutory requirements. We have established a Canadian and a U.S. Pension Committee to govern our Canadian and U.S. pension plans respectively. The U.K. pension plan is governed by a Board of Trustees, composed of employee and company representation. Both the Canadian and U.S. Pension Committees, and the U.K. Board of Trustees review funding levels, investment performance and compliance matters for their respective plans. Our pension funding policy is to contribute amounts sufficient, at minimum, to meet local statutory funding requirements. For our defined benefit pension plans (primarily our U.K. pension plan), local regulatory bodies either define the minimum funding requirement or approve the funding plans submitted by us. We may make additional discretionary contributions taking into account actuarial assessments and other factors. The contributions that we make to support ongoing plan obligations are recorded in the respective asset or liability accounts on our consolidated balance sheet.

    Our U.K. pension plan requires an actuarial valuation to be completed every three years. The most recent actuarial valuation used a measurement date of April 2022 and was duly completed in 2023.

    We currently fund our non-pension post-employment benefit plans as we incur benefit payment obligations thereunder. Excluding our mandatory plans, the most recent actuarial measurements for our largest non-pension post-employment benefit plans were completed using valuation dates of May 2022 (Canada) and January 2024 (U.S.). The next actuarial measurements for these plans will have valuation dates of May 2025 and January 2026, respectively. We accrue the expected costs of providing non-pension post-employment benefits during the periods in which the employees render service. We used a measurement date of December 31, 2024 for the accounting valuation for pension and non-pension post-employment benefits.

    Our pension plans are exposed to market risks such as changes in interest rates, inflation, and fluctuations in investment values, as well as financial risks including counterparty risks of financial institutions from which annuities have been purchased for specified plans. See note 19(d). Our plans are also exposed to non-financial risks, including the membership’s mortality and demographic changes, as well as regulatory changes.

    We manage the funding level risk of defined benefit pension plans through our asset allocation strategy for each plan. In the U.K., the majority of the obligations under our U.K. pension plan have been hedged with the purchase of annuities with insurance companies as described above, but do not qualify for designation as hedges for application of hedge accounting purposes.

    Pension fund assets are invested primarily in fixed income and equity securities. Asset allocation between fixed income and equity securities is adjusted based on the expected life of the plan and the expected retirement dates of the plan participants. Our pension funds do not invest directly in our shares, but may invest indirectly as a result of the inclusion of our shares in certain investment funds. All of our plan assets are measured at their fair value using the fair value hierarchy inputs described in note 2(q). See the plan assets, by asset class table in (b) below. There were no transfers of fair value measurements between Level 1 and Level 3 of the fair value hierarchy in 2024 or 2023. Approximately 95% of our plan assets consist of annuities purchased with insurance companies, and assets held with financial institutions with a Standard and Poor’s long-term rating of A or above at December 31, 2024. The annuities purchased for our U.K. Main pension plan are held with financial institutions that are governed by local regulatory bodies. The remaining assets are held with financial institutions where ratings are not available. For these institutions, we monitor counterparty risk based on the diversification of
plan assets. These plan assets are maintained in segregated accounts by a custodian that is independent from the fund managers. We believe that the counterparty risk is low.
(b) Plan financials:

    The table below presents the fair value of our defined benefit pension plan and other benefit plan assets, by asset class:
Fair Value at
December 31
Actual Asset Allocation (%) at December 31
2024202320242023
Quoted market prices (Level 1):
Debt investment funds
$8.3 $8.9 4 %4 %
Equity investment funds
5.8 5.9 3 %3 %
Other17.0 16.19 %8 %
Non-quoted market prices (Level 3):
Insurance annuities
160.0 182.684 %85 %
Total
$191.1 $213.5 100 %100 %

    The following tables provide a summary of the financial position of our defined benefit pension and other post-employment benefit plans:
Pension Plans
Year ended
December 31
Other Benefit Plans
Year ended
December 31
2024202320242023
Fair value of plan assets, beginning of year
$211.2 $211.8 $2.3 $2.3 
Actual return on plan assets
(7.7)0.1 0.1 0.1 
Administrative expenses paid from plan assets
(0.3)(0.4)— — 
Employer contributions to plan1.9 1.3 0.4 0.6 
Employer direct benefit payments0.6 0.3 4.7 4.8 
     Settlement payments
(0.6)(0.6)(2.5)(3.2)
Benefit payments from plan(10.1)(10.2)(0.4)— 
Benefit payments from employer
(0.6)(0.3)(2.2)(2.2)
Foreign currency exchange rate changes and other
(5.4)9.2 (0.3)(0.1)
Fair value of plan assets, end of year
$189.0 $211.2 $2.1 $2.3 
Pension Plans
Year ended
December 31
Other Benefit Plans
Year ended
December 31
2024202320242023
Benefit obligation, beginning of year
$219.3 $216.9 $74.4 $66.3 
Service costs
4.5 2.6 3.4 3.1 
Interest costs
9.6 10.2 3.1 3.2 
Administrative expenses paid
(0.3)(0.4)— — 
Actuarial losses (gains)
(19.7)(8.7)1.8 5.5 
     Settlement/curtailment payments from plan
(0.6)(0.6)(2.5)(3.2)
Benefit payments from plan
(10.1)(10.2)(0.4)— 
Benefit payments from employer
(0.6)(0.3)(2.2)(2.2)
Foreign currency exchange rate changes and other
(5.5)9.8 (5.3)1.7 
Benefit obligation, end of year
$196.6 $219.3 $72.3 $74.4 
Funded status at end of year
$7.6 $8.1 $70.2 $72.1 
Weighted average duration of benefit obligations (in years)
12131010

The following table outlines the information for our defined benefit pension plan and non-pension post-employment benefit plans with an accumulated benefit obligation in excess of plan assets:
Pension Plans
Year ended
December 31
Other Benefit Plans
Year ended
December 31
2024202320242023
Accumulated benefit obligations
27.826.819.517.8
Fair value of plan assets
10.210.8— — 

The following table outlines the information for our defined benefit pension plan and non-pension post-employment benefit plans with a projected benefit obligation in excess of plan assets:
Pension Plans
Year ended
December 31
Other Benefit Plans
Year ended
December 31
2024202320242023
Projected benefit obligations
27.826.872.372.2
Fair value of plan assets
10.210.82.1— 

The following table outlines the plan balances as reported on our consolidated balance sheets:
December 31, 2024December 31, 2023
Pension
Plans
Other
Benefit Plans
Total
Pension
Plans
Other
Benefit Plans
Total
Pension and non-pension post-employment benefit obligations
$(17.6)$(66.2)$(83.8)$(16.0)$(67.9)$(83.9)
Current other post-employment benefit obligations
— (4.0)(4.0)— (4.2)(4.2)
Non-current net pension assets (note 9)
10.0 — 10.0 7.9 — 7.9 
$(7.6)$(70.2)$(77.8)$(8.1)$(72.1)$(80.2)
The following table outlines the components of net periodic benefit cost recognized in our consolidated statement of operations for pension and non-pension post-employment benefit plans:
Pension Plans
Year ended December 31
Other Benefit Plans
Year ended December 31
202420232022202420232022
Service cost
$4.5 $2.6 $0.9 $3.4 $3.1 $3.1 
Interest cost
9.6 10.2 6.2 3.1 3.2 2.7 
Expected return on plan assets
(9.1)(9.6)(5.8)(0.1)(0.1)— 
Amortization of net loss (gain)
(0.2)(0.3)— (2.3)(3.4)— 
Settlement loss (gain)
(0.1)(0.1)— 0.9 0.7 — 
Net periodic benefit cost (1)
4.7 2.8 1.3 5.0 3.5 5.8 
Defined contribution pension plan expense (see (c) below)
13.8 12.7 12.3 — — — 
Total expense for the year
$18.5 $15.5 $13.6 $5.0 $3.5 $5.8 
(1)    The components of net periodic benefit cost, other than the service cost component, are included in miscellaneous expense (income) in our consolidated statement of operations. See note 15. We generally record the service cost component in cost of sales and SG&A, depending on the nature of expenses.

The following table outlines the gain and loss recognized in OCI:
Year ended December 31
202420232022
Net loss (gain), net of tax (see note 13)$2.0 $8.9 $(26.2)

The following table outlines the amounts recognized in AOCI:
December 31, 2024December 31, 2023
Pension
Plans
Other
Benefit Plans
Total
Pension
Plans
Other
Benefit Plans
Total
Net gain, net of tax (see note 13)$(9.7)$(16.2)$(25.9)$(7.7)$(20.2)$(27.9)

    The following percentages and assumptions were used in measuring the plans for the years indicated:
Pension Plans
Other Benefit Plans
202420232022202420232022
Benefit obligations:
Weighted average discount rate at December 31 (1)
5.44.64.94.34.54.9
Weighted average rate of compensation increase
3.02.91.14.64.64.6
Net benefit cost for the year ended:
Weighted average discount rate (1)
4.64.91.84.54.93.2
Weighted average rate of compensation increase2.91.11.14.64.64.6
Expected long-term return on plan assets (2)
4.44.61.83.23.72.3
Healthcare cost trend rates:
Immediate trend
— — — 6.55.15.2
Ultimate trend
— — — 4.04.04.0
Year the ultimate trend rate is expected to be achieved
— — — 204020402040
(1)     The weighted average discount rate is determined using publicly available rates for highly-rated bonds by currency in countries where we have a pension or non-pension benefit plan. A higher discount rate would decrease the present value of the benefit obligation, and a lower discount rate would increase the present value of the benefit obligation.
(2)    The expected rate of return on plan assets is a management estimate reflecting the long-term average rate of earnings expected by asset class based on the plans' target asset allocation.
We evaluate these assumptions on a regular basis taking into consideration current market conditions and historical market data. Actual results could differ materially from those estimates and assumptions.

    A one percentage-point increase or decrease in one of the following actuarial assumptions, holding other assumptions constant in each case, would increase (decrease) our benefit obligations as follows:
Pension Plans
Other Benefit Plans
Year ended
December 31, 2024		Year ended
December 31, 2024
1% Increase
1% Decrease
1% Increase
1% Decrease
Discount rate
$(19.9)$24.2 $(6.4)$7.6 
Healthcare cost trend rate
$— $— $3.4 $(2.9)
    
(c) Plan contributions:

    We made the following plan contributions for the years indicated below and estimate our contribution for 2025 to be as follows:
Year ended December 31
Estimated Contribution*
2024202320222025
Defined contribution plan$13.8 $12.7 $12.3 $13.8 
Defined benefit plan2.5 1.6 4.1 1.8 
Total pension plans
$16.3 $14.3 $16.4 $15.6 
Non-pension post-employment benefit plans
$5.1 $5.4 $3.2 $4.4 
*    Our actual contributions could differ materially from these estimates.

(d) Estimated future benefit payments:

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Pension PlansOther Benefit Plans
2025$10.6 $4.4 
202610.9 4.7 
202711.4 4.5 
202811.7 4.8 
202911.7 6.3 
Thereafter61.6 37.8 
Total future benefit payments
$117.9 $62.5