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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans
17. Employee Benefit Plans

The Company offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. The Company’s expense relating to defined contribution plans was $61,384, $56,597 and $53,508 for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company sponsors qualified defined benefit pension plans covering certain employees of the Company and its subsidiaries. The plans' benefits are generally based on years of service and employee compensation. The Company also provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law.

The U.S. qualified and non-qualified defined benefit plans were closed to new employees after December 31, 2013. All pension-eligible employees as of December 31, 2013 continued to earn a pension benefit through December 31, 2023 as long as they remained employed by the Company participating in the impacted plans. Effective January 1, 2024, the plans have been frozen for any future benefit accruals.

The Company also maintains other post-retirement benefit plans. These plans are closed to new entrants and are not considered to be significant. The supplemental and other post-retirement benefit plans are supported by the general assets of the Company.
Obligations and Funded Status

The following tables summarize the change in benefit obligations, change in plan assets, and funded status associated with the Company's significant defined benefit plans and the amounts recognized in the consolidated balance sheets at December 31, 2024 and 2023:
 
Qualified Defined Benefits
Non-Qualified Supplemental Benefits
 
U.S. Plan
Non-U.S. Plans
 202420232024202320242023
Change in benefit obligation:      
Benefit obligation at beginning of year$319,306 $319,901 $250,029 $215,317 $29,189 $32,503 
Service cost
— 2,867 4,853 3,712 — 970 
Interest cost15,810 17,203 6,091 10,591 1,359 1,636 
Plan participants' contributions— — 2,481 2,251 — — 
Benefits paid(27,725)(17,701)(8,477)(11,953)(4,188)(6,582)
Actuarial loss (gain)(1)
(16,635)22,384 3,288 16,884 (3,318)662 
Disposition
— — (4,226)— — — 
Amendments— — (364)41 — — 
Settlements and curtailments— (25,348)(2,118)(1,116)— — 
Currency translation and other— — (10,126)14,302 — — 
Benefit obligation at end of year290,756 319,306 241,431 250,029 23,042 29,189 
Change in plan assets:      
Fair value of plan assets at beginning of year392,519 394,053 175,765 152,860 — — 
Actual return on plan assets7,172 40,633 6,770 11,935 — — 
Company contributions— — 8,594 9,516 4,188 6,582 
Plan participants' contributions— — 2,481 2,251 — — 
Benefits paid(27,725)(17,701)(8,477)(11,953)(4,188)(6,582)
Settlements and curtailments— (24,466)(2,118)(298)— — 
Currency translation and other— — (6,785)11,454 — — 
Fair value of plan assets at end of year371,966 392,519 176,230 175,765 — — 
Funded (unfunded) status
$81,210 $73,213 $(65,201)$(74,264)$(23,042)$(29,189)
Amounts recognized in the consolidated balance sheets consist of:
    
Assets and Liabilities:      
Other assets and deferred charges$81,210 $73,213 $2,080 $1,938 $— $— 
Accrued compensation and employee benefits— — (1,601)(731)(6,481)(5,477)
Liabilities held for sale (2)
— — — (18,044)— — 
Defined benefit and other post-retirement benefit plans
— — (65,680)(57,427)(16,561)(23,712)
Total assets (liabilities)
81,210 73,213 (65,201)(74,264)(23,042)(29,189)
Accumulated other comprehensive loss (earnings):
Net actuarial losses (gains)61,715 57,870 45,986 42,926 (24,795)(24,435)
Prior service cost (credit)— — (1,825)(2,222)— — 
Tax (benefit) expense(12,945)(12,075)(9,293)(8,947)5,395 5,313 
Total accumulated other comprehensive loss (earnings), net of tax
48,770 45,795 34,868 31,757 (19,400)(19,122)
Net amount recognized at December 31,$129,980 $119,008 $(30,333)$(42,507)$(42,442)$(48,311)
Accumulated benefit obligations$290,756 $319,306 $233,921 $242,619 $23,042 $29,189 
(1) The actuarial loss (gain) were primarily due to discount rate fluctuations and plan experience.
(2) De-Sta-Co assets and liabilities are classified as held for sale as of December 31, 2023. See Note 4 — Discontinued and Disposed Operations for further details.
The Company's net unfunded status at December 31, 2024 and 2023 includes net liabilities of $65,201 and $74,264, respectively, relating to the Company's significant international qualified plans, some in locations where it is not economically advantageous to pre-fund the plans due to local regulations. The majority of the international obligations relate to defined pension plans operated by the Company's businesses in Germany, France, the United Kingdom, Switzerland and Canada.

The accumulated benefit obligation for all defined benefit pension plans was $547,719 and $591,114 at December 31, 2024 and 2023, respectively.

Non-U.S. pension plans with accumulated benefit obligations in excess of plan assets consist of the following at December 31, 2024 and 2023:
 20242023
Accumulated benefit obligation$228,977 $227,442 
Fair value of plan assets169,207 158,653 

Non-U.S. pension plans with projected benefit obligations in excess of plan assets consist of the following at December 31, 2024 and 2023:
 20242023
Projected benefit obligation$236,488 $234,854 
Fair value of plan assets169,207 158,653 

Net Periodic Benefit Cost

The operating expense component of net periodic benefit cost (service cost) is reported with similar compensation costs in the Company's consolidated statement of earnings. The non-operating components (all other components of net periodic benefit cost, including interest cost, amortization of prior service cost, curtailments and settlements, etc.) are reported outside of operating income in other income, net in the consolidated statement of earnings.

Components of the net periodic benefit cost were as follows: 

Defined Benefit Plans
 Qualified Defined Benefits  Non-Qualified Supplemental Benefits
 U.S. PlanNon-U.S. Plans
 202420232022202420232022202420232022
Service cost$— $2,867 $5,703 $4,853 $3,712 $4,675 $— $970 $1,426 
Interest cost15,810 17,203 13,745 6,091 10,591 5,220 1,359 1,636 1,215 
Expected return on plan assets(27,653)(26,208)(29,104)(7,868)(7,331)(7,191)— — — 
Amortization of:
Prior service cost (credit)— — 110 (760)(717)(526)— 1,874 1,490 
Actuarial loss (gain)
— — 2,300 1,069 656 1,747 (2,959)(3,207)(2,016)
Settlement and curtailment loss (gain)— 4,434 6,276 112 (801)(393)— — — 
Net periodic (benefit) expense$(11,843)$(1,704)$(970)$3,497 $6,110 $3,532 $(1,600)$1,273 $2,115 
Assumptions

The Company determines actuarial assumptions on an annual basis. The weighted average assumptions used in determining the benefit obligations were as follows:
 Qualified Defined BenefitsNon-Qualified Supplemental Benefits
 U.S. PlanNon-U.S. Plans
 202420232024202320242023
Discount rate5.70 %5.20 %2.64 %2.80 %5.50 %5.15 %
Average wage increaseN/A4.00 %1.36 %1.65 %N/A4.50 %


The weighted average assumptions used in determining the net periodic benefit cost were as follows:
 Qualified Defined BenefitsNon- Qualified Supplemental Benefits
 U.S. PlanNon-U.S. Plans
 202420232022202420232022202420232022
Discount rate5.20 %5.55 %2.95 %2.80 %3.57 %1.18 %5.15 %5.50 %2.90 %
Average wage increase4.00 %4.00 %4.00 %1.65 %1.67 %1.53 %4.50 %4.50 %4.50 %
Expected return on plan assets6.30 %5.60 %5.60 %4.59 %4.69 %3.47 %
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The Company's discount rate assumption is determined by developing a yield curve based on high quality corporate bonds with maturities matching the plans' expected benefit payment streams. The plans' expected cash flows are then discounted by the resulting year-by-year discount rates.

Plan Assets

The primary financial objective of the plans is to secure participant retirement benefits. Accordingly, the key objective in the plans' financial management is to promote stability and, to the extent appropriate, growth in the funded status. Related and supporting financial objectives are established in conjunction with a review of current and projected plan financial requirements.

As it relates to the funded defined benefit pension plans, the Company's funding policy is consistent with the funding requirements of the Employment Retirement Income Security Act ("ERISA") and applicable international laws. The Company is responsible for overseeing the management of the investments of the plans' assets and otherwise ensuring that the plans' investment programs are in compliance with ERISA, other relevant legislation and the related plan documents. Where relevant, the Company has retained professional investment managers to manage the plans' assets and implement the investment process. The investment managers, in implementing their investment processes, have the authority and responsibility to select appropriate investments in the asset classes specified by the terms of their applicable prospectus or investment manager agreements with the plans.

The assets of the plans are invested to achieve an appropriate return for the plans consistent with a prudent level of risk. The plans' long-term investment objective is to generate investment returns that provide adequate assets to meet all benefit obligations in accordance with applicable regulations. The expected return on assets assumption used for net periodic benefit cost is developed through analysis of historical and forecasted market returns, statistical analysis, current market conditions and the past experience of plan asset investments.
The Company's actual and target weighted average asset allocation for our U.S. Qualified Defined Benefits Plan was as follows:
20242023Current Target
Return-seeking investments30 %28 %30 %
Liability hedging investments70 %72 %70 %
Total100 %100 %100 %

Return-seeking investments include diversified foreign and domestic equities, U.S. high yield fixed income investments, and emerging market debt. Liability hedging investments primarily include a diversified portfolio of U.S. long duration fixed income assets. While the non-U.S. investment policies are different for each country, the long-term objectives are generally the same as for the U.S. pension assets.

The fair values of both U.S. and non-U.S. pension plan assets by asset category within the fair value hierarchy (as defined in Note 13 — Financial Instruments) were as follows:
 
U.S. Qualified Defined Benefits Plan
 December 31, 2024December 31, 2023
 
Level 1
Level 2
Total Fair Value
Level 1
Level 2
Total Fair Value
Corporate bonds$— $196,492 $196,492 $— $215,631 $215,631 
Government securities— 52,880 52,880 — 52,862 52,862
Interest-bearing cash and short-term investments3,189 — 3,189 3,901 — 3,901
Total investments at fair value$3,189 $249,372 252,561 $3,901 $268,493 272,394
Investments measured at net asset value*
Collective funds110,020 110,582 
Short-term investment funds9,385 9,543 
Total investments$371,966 $392,519 

 
Non-U.S. Plans
 December 31, 2024December 31, 2023
 
Level 1
Level 2
Level 3
Total Fair Value
Level 1
Level 2
Level 3
Total Fair Value
Common stocks$56,976 $— $— $56,976 $54,557 $— $— $54,557 
Fixed income investments— 35,936 — 35,936 — 32,421 — 32,421 
Mutual funds12,118 — — 12,118 20,628 — — 20,628 
Cash and cash equivalents2,384 — — 2,384 2,237 — — 2,237 
Other— 3,570 21,658 25,228 — 499 18,652 19,151 
Total investments at fair value$71,478 $39,506 $21,658 132,642 $77,422 $32,920 $18,652 128,994 
Investments measured at net asset value*
Collective funds39,339 41,502 
Other4,249 5,269 
 Total investments$176,230 $175,765 
* In accordance with Fair Value Measurement Topic 820 (Subtopic 820-10), certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient were not classified in the fair value hierarchy. These are included to permit reconciliation of the fair value hierarchy to the aggregate pension plan assets.

Common stocks represent investments in domestic and foreign equities, which are publicly traded on active exchanges and are valued based on quoted market prices.

Fixed income investments include bonds and notes, which are valued based on quoted market prices, as well as investments in other government and municipal securities and corporate bonds, which are valued based on yields currently available on comparable securities of issuers with similar credit ratings.
Mutual funds are categorized as either Level 1, 2 or Net Asset Value ("NAV") as a practical expedient depending on the nature of the observable inputs. Collective funds and short-term investment funds are valued using NAV as a practical expedient as of the last business day of the year. The NAV is based on the underlying value of the assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The availability of observable data is monitored by plan management to assess appropriate classification of financial instruments within the fair value hierarchy. Depending upon the availability of such inputs, specific securities may transfer between levels. In such instances, the transfer is reported at the end of the reporting period.

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2023 and 2024, due to the following:
Level 3
Balance at December 31, 2022$16,294 
Actual return on plan assets:
Relating to assets still held at December 31, 2023(417)
Relating to assets sold during the period(17)
Purchases1,746 
Sales and settlements(346)
Foreign currency translation1,392 
Balance at December 31, 202318,652 
Actual return on plan assets:
Relating to assets still held at December 31, 2024623 
Relating to assets sold during the period7 
Purchases2,154 
Sales and settlements1,090 
Foreign currency translation(868)
Balance at December 31, 2024$21,658 
Future Estimates

Benefit Payments

Estimated future benefit payments to retirees, which reflect expected future service except to the extent frozen, are as follows:
 Qualified Defined BenefitsNon-Qualified Supplemental Benefits
 U.S. PlanNon-U.S. Plans
2025$32,185 $12,261 $6,657 
202627,402 12,221 3,727 
202726,139 14,861 1,888 
202824,919 12,877 3,737 
202924,405 12,369 1,676 
2030 - 2034108,965 67,017 7,157 

Contributions
 
In 2025, the Company expects to make payments of approximately $8.7 million to its non-US plans and $6.7 million to its non-qualified U.S. plan. No payments are expected for the qualified U.S. plan in 2025.