The Company has a 401(k) profit-sharing plan for U.S. employees meeting certain requirements, in which eligible employees may contribute between 1% and 50% of their annual compensation to this plan, and, with respect to employees who are age 50 and older, certain specified additional amounts, limited by an annual maximum amount determined by the Internal Revenue Service. The Company, at its discretion, makes certain matching contributions to this plan based on participating employees’ annual contribution to this plan and their total compensation. The Company’s contributions were $10, $8 and $7 for 2022, 2021 and 2020, respectively.

The Company also has a number of defined contribution plans at some of its foreign locations. The Company’s contributions were immaterial for 2022, 2021 and 2020.

The Company maintains a bonus plan which provides cash awards to certain employees, at the discretion of the Compensation Committee of the Company’s Board of Directors, based upon the Company’s operating results. In addition, the Company’s foreign locations also have various bonus plans based upon local operating results and employee performance. The total bonus expense was $48, $76 and $66 for 2022, 2021 and 2020, respectively.

The Company has a number of defined benefit pension plans at many of its foreign location, which cover most of its full-time employees at these respective locations. In addition, the Company has certain pension assets and liabilities relating to its former employees in the United Kingdom. One of the Company's German pension plans is unfunded, as permitted under the plan and applicable laws.

As a result of the Atotech Acquisition, the Company assumed all assets and liabilities of Atotech's defined benefit pension plans.

For financial reporting purposes, the Company obtained actuarial reports supporting the calculation of net periodic pension costs that used a number of actuarial assumptions, including a discount rate for plan obligations, an assumed rate of return on pension plan assets and an assumed rate of compensation increase for employees covered by the various plans. The Company reviewed these actuarial assumptions and concluded they were reasonable based upon management’s judgment, considering known trends and uncertainties. Actual results that differ from these

assumptions would impact future expense recognition and the cash funding requirements of the Company’s pension plans.

The net periodic benefit costs for the defined benefit plans included the following components:


	Years Ended December 31,
	2022		2021
Service cost	$	1	$	1
Interest cost on projected benefit obligations		2		—
Amortization of actuarial net loss		1		1
	$	4	$	2

The changes in projected benefit obligations and plan assets, as well as the ending balance sheet amounts for the Company’s defined benefit plans, were as follows:


	Years Ended December 31,
	2022			2021
Change in projected benefit obligations:
Projected benefit obligations, beginning of year	$	34		$	36
Liabilities assumed through Atotech Acquisition		122			—
Service cost		1			1
Interest cost		2			—
Actuarial (gain) loss		(17	)		—
Benefits paid		(3	)		—
Currency translation adjustments		5			(3	)
Projected benefit obligations, end of year		144			34

Change in plan assets:
Fair value of plan assets, beginning of year		12			13
Assets assumed through Atotech Acquisition		24			—
Company contributions		1			1
Loss on plan assets		(5	)		—
Benefits paid		(1	)		(1	)
Currency translation adjustments		—			(1	)
Fair value of plan assets, end of year		31			12
Net underfunded status	$	(113	)	$	(22	)

As of December 31, 2022, the estimated benefit payments for the Company’s defined benefit plans for the next 10 years were as follows:


	Estimated benefit payments
2023	$	7
2024		7
2025		8
2026		9
2027		10
2028-2032		47
	$	88

The weighted-average rates used to determine the net periodic benefit costs were as follows:


	December 31, 2022			December 31, 2021
Discount rate		3.7	%		1.0	%
Rate of increase in salary levels		3.1	%		2.0	%
Expected long-term rate of return on assets		2.6	%		1.0	%

In determining the expected long-term 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.

Plan assets were held in the following categories as a percentage of total plan assets:


	December 31, 2022					December 31, 2021
	Amount		Percentage			Amount		Percentage
Debt securities	$	20		65	%	$	5		41	%
Equity securities		7		22			1	6
Other		4		13			6	53
	$	31		100	%	$	12		100	%

In general, the Company’s asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk, while providing adequate liquidity to meet immediate and future benefit payment requirements.

The Company’s Israeli plans account for the deferred vested benefits using the shut-down method of accounting, which resulted in assets of $19 and vested benefit obligations of $22 as of December 31, 2022 and assets of $20 and vested benefit obligations of $23 as of December 31, 2021. Under the shut-down method, the liability is calculated as if it were payable as of the balance sheet date, on an undiscounted basis.

As of December 31, 2022 and 2021, the Company had assets with an aggregate market value of $6 for each period, for one of its German pension plans. These assets are invested in group insurance contracts through the insurance companies administering these plans, in accordance with applicable pension laws. These group insurance contracts have a guaranteed minimum rate of return ranging from 2.0% to 4.25%, depending on the contract. Because these assets were not separate legal assets of the pension plan, they were not included in the Company’s plan assets shown above. However, the Company has designated such assets to pay pension benefits. Such assets are included in other assets in the accompanying consolidated balance sheet.