(24,900,000)

(30,300,000)

Multiemployer Plan, Employer Contribution, Cost

$ 38,100,000

$ 42,100,000

$ 27,200,000

Multiemployer Plan, Pension, Significant, Certified Zone Status [Fixed List]

Red

Pension and Other Post Retirement Benefit Plans Annual Expense

Annual Expense

The components of pension and other post-retirement benefit plans expense for the U.S. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2024, 2023, and 2022 are as follows:


	Pension Benefits									Other Post-Retirement Benefits
	Periods Ended December 31,									Periods Ended December 31,
U.S. Plans	2024			2023			2022			2024			2023			2022
Components of net periodic benefit cost (income):
Service cost	$	—		$	—		$	—		$	0.5		$	0.6		$	0.7
Interest cost	—			2.6			20.8			1.5			1.5			0.6
Expected return on plan assets	—			(1.6)			(44.0)			—			—			—
Amortization of net (gain) loss	—			0.1			—			(2.2)			(1.7)			(1.0)
Amortization of prior service costs(1)	—			—			73.5			1.4			(0.8)			(0.8)
Settlement loss recognized(2)	—			59.6			33.3			—			—			—


Net periodic benefit cost (income)	—			60.7			83.6			1.2			(0.4)			(0.5)
Other changes recognized in OCI:
Total recognized in other OCI (income) loss	$	—		$	(72.5)		$	124.4		$	—		$	11.2		$	(0.4)
Total recognized in other net periodic benefit and OCI loss (income)	$	—		$	(11.8)		$	208.0		$	1.2		$	10.8		$	(0.9)
Assumptions used to determine net periodic benefit costs:
Discount rate	4.94		%	5.22		%	2.72		%	4.75		%	5.03		%	1.96		%
Expected return on plan assets	N/A			N/A			4.00		%	N/A			N/A			N/A
Salary increases	N/A			N/A			N/A			N/A			N/A			N/A
Medical Assumptions:
Trend assumed for the year	N/A			N/A			N/A			6.77		%	7.25		%	7.00		%
Ultimate trend rate	N/A			N/A			N/A			4.00		%	4.00		%	4.50		%
Year that ultimate trend rate is reached	N/A			N/A			N/A			2048			2048			2047

(1) Due to a plan amendment related to a benefit enhancement, prior service cost amortization of $73.5 was recorded to Other (expense) income during the year ended December 31, 2022.

(2) Due to settlement accounting during the fiscal years ending 2023, and 2022, the Company recognized charges of $59.6, and $33.3, respectively, that were recorded to Other (expense) income.

The Company records the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost, special termination benefits, and net actuarial gains or losses) as part of non-operating income.

The components of the pension benefit plan expense for the U.K. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2024, 2023, and 2022 are as follows:


	Pension Benefits
	Periods Ended December 31,
U.K. Prestwick Plan	2024			2023			2022
Components of net periodic benefit cost (income):
Service cost	$	1.0		$	0.8		$	1.7
Interest cost	1.8			1.7			1.1
Expected return on plan assets	(2.2)			(2.2)			(1.7)
Amortization of net loss	0.2			0.2			—
Settlement gain (loss)	—			—			0.6
Net periodic benefit cost (income)	$	0.8		$	0.5		$	1.7
Other changes recognized in OCI:
Total cost (income) recognized in OCI	$	2.5		$	0.6		$	13.9
Total recognized in net periodic benefit cost and OCI	$	3.3		$	1.1		$	15.6
Assumptions used to determine net periodic benefit costs:
Discount rate	4.80		%	4.90		%	1.75		%
Expected return on plan assets	4.90		%	4.90		%	2.00		%
Salary increases	N/A			3.35		%	3.50		%

The components of the pension benefit plan expense for the Belfast plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2024, 2023, and 2022 are as follows:


	Pension Benefits									Other Post-Retirement Benefits
	Periods Ended December 31,									Periods Ended December 31,
U.K. Belfast Plans	2024			2023			2022			2024			2023			2022
Components of net periodic benefit cost (income):
Service cost	$	2.1		$	1.6		$	1.3		$	—		$	—		$	—
Interest cost	69.5			71.4			39.9			—			—			—

Expected return on plan assets	(85.2)			(78.6)			(92.0)			—			—			—
Amortization of net (gain) loss	—			—			—			(0.1)			(0.1)			—
Net periodic benefit (income) cost	$	(13.6)		$	(5.6)		$	(50.8)		$	(0.1)		$	(0.1)		$	—
Other changes recognized in OCI:
Total (income) recognized in OCI	$	(3.7)		$	(6.4)		$	24.7		$	0.1		$	—		$	(0.4)
Total recognized in net periodic benefit cost and OCI	$	(17.3)		$	(12.0)		$	(26.1)		$	—		$	(0.1)		$	(0.4)
Assumptions used to determine net periodic benefit costs:
Discount rate	4.78		%	4.96		%	1.80		%	4.78		%	4.96		%	1.80		%
Expected return on plan assets	5.70		%	5.50		%	4.10		%	N/A			N/A			N/A
Salary increases	N/A			N/A			N/A			N/A			N/A			N/A
Medical Assumptions:
Trend assumed for the year	N/A			N/A			N/A			6.50		%	5.95		%	5.75		%
Ultimate trend rate	N/A			N/A			N/A			6.50		%	5.95		%	5.75		%
Year that ultimate trend rate is reached	N/A			N/A			N/A			N/A			N/A			N/A

Assumptions

The Company sets the discount rate assumption annually for each of its retirement-related benefit plans as of the measurement date, based on a review of projected cash flow and a long-term high-quality corporate bond yield curve. The discount rate determined on each measurement date is used to calculate the benefit obligation as of that date, and is also used to calculate the net periodic benefit (income)/cost for the upcoming plan year. During 2015, the mortality assumption for the U.S. plans was updated to Mercer’s MRP-2007 generational mortality tables for non-annuitants and Mercer’s MILES-2010 generational tables for the Auto, Industrial Goods and Transportation group for annuitants both reflecting Mercer’s MMP-2007 improvement scale. In 2018, the Company incorporated the MMP-2018 improvement scale. MMP-2018 is a Mercer-developed scale that uses the same basic model as the Society of Actuaries MP-2018 scale, but with different parameters and adjustments for actual experience since 2006. In 2019, the Company incorporated the MMP-2019 improvement scale which was utilized in 2020. In 2021, the Company incorporated the MMP-2021 improvement scale. MMP-2021 is a Mercer-developed scale that uses the same basic model as the Society of Actuaries MP-2019 scale, but with different parameters and adjustments for actual experience since 2006. A blue collar adjustment is reflected for the hourly union participants and a white collar adjustment is reflected for all other participants. Actuarial gains and losses are amortized using the corridor method. The gain/loss corridor is equal to 10% of the greater of the benefit obligation and the fair value of assets. Gains and losses in excess of the corridor are generally amortized over the average future lifetimes of all participants. For those plans where active participants continue to accrue benefits, the amortization period is the expected future service for the remaining active participants.

The pension expected return on assets assumption is derived from the long-term expected returns based on the investment allocation by class specified in the Company’s investment policy. The expected return on plan assets is a component of the net periodic benefit (income)/cost of the upcoming plan year and is determined on each measurement date using the expected return on assets assumption and the fair value of assets.

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. To determine the health care cost trend rates the Company considers national health trends and adjusts for its specific plan design and locations. The trend and aging assumptions were updated during 2016 to reflect more current trends. These assumptions were reviewed in 2024 based on a review of updated national health trends.