Pension and Other Post-Retirement Benefits

12 Months Ended

Dec. 31, 2025

Retirement Benefits [Abstract]

Pension and Other Post-Retirement Benefits

Pension and Other Post-Retirement Benefits

We maintain both funded and unfunded noncontributory defined benefit pension plans covering our domestic employees and the employees of our subsidiaries. We also have a funded noncontributory defined benefit pension plan related to a former business in the United Kingdom that has no active employees. The plans base benefits payable on years of service and/or final average salary. We base our funding policies for the pension plans on actuarially determined cost methods allowable under IRS regulations and statutory requirements in the United Kingdom.

In 2025, the trustees of our pension plan in the United Kingdom entered into an agreement with an insurance company for a bulk annuity policy (a buy-in) (the "UK Buy-in Policy"), for which we paid the insurer £14.4 million ($19.3 million). This agreement allows the Company to reduce volatility by removing investment, longevity, mortality, interest rate and inflation risk upon the transfer of pension plan assets to the insurer in exchange for the insurance contract. Under the terms of the UK Buy-in Policy, the insurer is liable to pay the benefits of the plan, but the plan still retains full legal responsibility to pay benefits to plan participants using the insurance payments. The UK Buy-in Policy will be treated as an asset of the plan.

In addition to the pension plans, we have other post-retirement plans that provide health care, life insurance, and other benefits for certain retired domestic employees who meet established criteria. Most domestic employees who retire with immediate benefits under our pension plan are eligible for health care and life insurance benefits. The other post-retirement plans are either contributory or noncontributory, depending on various factors.

Certain lump sum distributions paid to retirees triggered settlement accounting, resulting in the recognition of $1.4 million of expense in 2023.

We use a December 31 measurement date for all of our plans. The following tables show pension obligations, plan assets, and other post-retirement obligations as of December 31 (in millions):

	2025 Pension Benefits		2024 Pension Benefits		2025 Retiree Health and Life		2024 Retiree Health and Life
Change in Benefit Obligation
Benefit obligation at beginning of year	$	329.7	$	346.9	$	13.1	$	14.9
Service cost	6.1		6.1		0.1		0.1
Interest cost	16.9		16.4		0.7		0.7
Actuarial loss (gain)	9.8		(14.9)		0.5		(1.0)
Benefits paid	(23.4)		(24.3)		(1.2)		(1.6)
Effect of foreign exchange rate changes	1.4		(0.5)		—		—
Benefit obligation at end of year	$	340.5	$	329.7	$	13.2	$	13.1
Change in Fair Value of Plan Assets
Plan assets at beginning of year	$	325.0	$	328.8	$	—	$	—
Actual return on plan assets	32.8		19.6		—		—
Effect of exchange rate changes	1.8		(0.4)		—		—
Company contributions	1.4		1.3		1.2		1.6
Benefits paid	(23.4)		(24.3)		(1.2)		(1.6)
Plan assets at end of year	$	337.6	$	325.0	$	—	$	—
Funded Status at end of year	$	(2.9)	$	(4.7)	$	(13.2)	$	(13.1)
Amount Recognized
Other liabilities	$	(2.9)	$	(4.7)	$	(13.2)	$	(13.1)
Accumulated other comprehensive loss (income):
Net actuarial loss (gain)	56.2		58.0		(6.1)		(7.1)
Prior service cost	0.4		0.5		—		—
Accumulated other comprehensive loss (income)	56.6		58.5		(6.1)		(7.1)
Total recognized	$	53.7	$	53.8	$	(19.3)	$	(20.2)
After-tax amount recognized in accumulated other comprehensive loss (income)	$	44.5	$	46.2	$	(4.8)	$	(5.6)

The aggregate accumulated benefit obligation for the defined benefit pension plans was $326.6 million at December 31, 2025 and $316.1 million at December 31, 2024.

The following table shows our pension plans that have a projected benefit obligation in excess of plan assets as of December 31 (in millions):

	2025		2024
Projected benefit obligations	$	28.3	$	25.4
Fair value of plan assets	—		—

The following table shows our pension plans that have an accumulated benefit obligation in excess of plan assets as of December 31 (in millions):    

	2025		2024
Accumulated benefit obligations	$	24.5	$	22.0
Fair value of plan assets	—		—

The following table shows the components of net periodic cost for the years ended December 31 (in millions):

	2025 Pension Benefits		2024 Pension Benefits		2023 Pension Benefits		2025 Retiree Health and Life		2024 Retiree Health and Life		2023 Retiree Health and Life
Service cost	$	6.1	$	6.1	$	5.3	$	0.1	$	0.1	$	0.1
Interest cost	16.9		16.4		16.6		0.7		0.7		0.8
Expected return on plan assets	(21.9)		(21.6)		(21.4)		—		—		—
Settlement accounting adjustment	—		—		1.4		—		—		—
Amortization of (1):
Unrecognized prior service cost (credit)	—		0.1		—		—		(0.2)		(0.3)
Unrecognized net actuarial loss (gain)	0.9		1.0		0.9		(0.5)		(0.5)		(0.5)
Net periodic cost	$	2.0	$	2.0	$	2.8	$	0.3	$	0.1	$	0.1

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(1) Amounts reclassified from accumulated other comprehensive loss.

The service cost component of net periodic cost was $6.2 million in 2025, $6.2 million in 2024, and $5.4 million in 2023 and is recorded in selling, general and administrative expense. The non-service components totaled income of $3.9 million in 2025, $4.1 million in 2024, and $2.5 million in 2023 and are recorded in other expense in the statements of income.

We amortize the unrecognized prior service credit using a straight-line method over the average remaining service period of the employees we expect to receive benefits under the plan. We amortize the unrecognized net actuarial loss (gain), which is subject to certain averaging conventions, over the average remaining service period of active employees.

We use the following assumptions to measure the benefit obligation, compute the expected long-term return on assets, and measure the periodic cost for our defined benefit pension plans and other post-retirement benefit plans for the years ended December 31:

	2025		2024
Domestic defined benefit pension plans
Benefit Obligation at December 31:
Discount rate — salaried funded plans	5.31	%	5.59	%
Discount rate — salaried unfunded plans	4.36% - 5.21%		5.11% - 5.55%
Discount rate — hourly funded plan	5.65	%	5.74	%
Cash balance interest crediting rate — salaried funded plan	4.70% - 4.84%		4.54% - 4.78%
Rate of compensation increases — salaried funded and unfunded plans	3.00	%	3.00	%
Rate of compensation increases — hourly funded plans	n/a		n/a
Net Periodic Cost (Benefit) for the years ended December 31:
Discount rate — salaried funded and unfunded plans	5.59	%	4.95	%
Discount rate — hourly funded plan	5.75	%	5.06	%
Expected return on plan assets — salaried funded plan	6.60	%	6.40	%
Expected return on plan assets — hourly funded plan	5.80	%	5.60	%
Rate of compensation increases — salaried funded and unfunded plans	3.00	%	3.00	%
Rate of compensation increases — hourly funded plan	n/a		n/a
Foreign defined benefit pension plan
Benefit Obligation at December 31:
Discount rate	5.40	%	5.40	%
Rate of pension-in-payment increases	2.70	%	3.00	%
Net Periodic Cost (Benefit) for the years ended December 31:
Discount rate	5.40	%	4.50	%
Expected return on plan assets	5.55	%	4.80	%
Rate of pension-in-payment increases	3.00	%	2.80	%
Other post-retirement benefit plans
Benefit Obligation at December 31:
Discount rate — combined health	5.00	%	5.41	%
Discount rate — combined life insurance	5.34	%	5.61	%
Rate of compensation increases	n/a		n/a
Net Periodic Cost (Benefit) for the years ended December 31:
Discount rate — combined health	5.44	%	4.84	%
Discount rate — combined life insurance	5.61	%	4.97	%
Rate of compensation increases	n/a		n/a

We calculate the present value of expected future pension and post-retirement cash flows as of the measurement date using a discount rate. We base the discount rate on yields for high-quality, long-term bonds with durations similar to that of our projected benefit obligation. We base the expected return on our plan assets on current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. We routinely review our historical returns along with current market conditions to ensure our expected return assumption is reasonable and appropriate.

	2025		2024
Assumed Health Care Cost Trend Rates at December 31:
Health care cost trend assumed for next year
Medical claims — pre age 65	7.50	%	7.50	%
Medical claims — post age 65	6.50	%	6.00	%
Prescription drugs claims — pre age 65	11.75	%	13.00	%
Prescription drugs claims — post age 65	10.75	%	12.00	%
Post age 65 Medicare Advantage Part D	6.30	%	18.75	%
Rate to which the cost trend is expected to decline (the ultimate trend rate)
Medical claims	4.50	%	4.50	%
Prescription drugs claims	4.50	%	4.50	%
Year that rate reaches the ultimate trend rate
Medical claims	2035		2034
Prescription drugs claims	2035		2034

Our investment policies require that asset allocations of domestic and foreign funded pension plans be maintained at certain targets. The following table shows our weighted-average asset allocations of our domestic funded pension plans at December 31, 2025 and 2024, and current target asset allocation for 2025, by asset category:

			Plan Assets for Salaried Employees at December 31
	Target		2025		2024
Asset Category
Equity securities	43.7	%	44.4	%	44.4	%
Debt securities	53.0	%	50.7	%	51.3	%
Real estate	3.3	%	2.3	%	2.4	%
Cash	—	%	2.6	%	1.9	%
	100.0	%	100.0	%	100.0	%

			Plan Assets for Hourly Employees at December 31
	Target		2025		2024
Asset Category
Equity securities	9.3	%	9.2	%	9.2	%
Debt securities	90.0	%	87.2	%	87.5	%
Real estate	0.7	%	1.0	%	1.3	%
Cash	—	%	2.6	%	2.0	%
	100.0	%	100.0	%	100.0	%

The following table shows the weighted-average asset allocations of our foreign funded pension plan at December 31, 2025 and 2024, and current target asset allocation for 2025, by asset category:

			Plan Assets at December 31
	Target		2025		2024
Asset Category
Debt securities	100.0	%	76.1	%	47.4	%
Cash	—	%	23.9	%	52.6	%
	100.0	%	100.0	%	100.0	%

The following table sets forth the fair value of our pension plan assets as of December 31 (in millions):

	2025		2024
Assets measured at net asset value (1):
Short-term investment collective trust fund	$	13.6	$	18.5
Common stock collective trust funds	112.6		107.5
Fixed-income collective trust funds	186.8		192.6
Real estate collective trust funds	6.3		6.4
Annuity policies (2):
UK Buy-in Policy	18.3		—
Total	$	337.6	$	325.0

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(1) In accordance with the relevant accounting standards, investments measured at fair value using the net asset value per share (or its equivalent) practical expedient are not recorded in any specific category of the fair value hierarchy.

(2) The fair value of the UK Buy-in Policy is categorized as Level 3 in the fair value hierarchy. The UK Buy-in Policy was valued as equal to the projected benefit obligation, excluding an estimate of additional uninsured liabilities, and was estimated using unobservable inputs.

The following is a description of the valuation techniques and inputs used as of December 31, 2025 and 2024.

Short-term investment collective trust fund

We value the short-term investment collective trust fund based on the closing net asset values ("NAV") quoted by the funds. The short-term investment collective trust fund is a highly liquid investment in obligations of the U.S. Government, or its agencies or instrumentalities, and the related money market instruments. The short-term investment fund has no restrictions on redemption frequency or advance notice periods required for redemption. The fund seeks to provide safety of principal, daily liquidity, and a competitive yield over the long term.

Common stock collective trust funds and fixed-income collective trust funds

We value common stock collective trust funds and fixed-income collective trust funds based on the closing NAV prices quoted by the funds. None of the collective trust funds have restrictions on redemption frequency or advance notice periods required for redemption. The investment objective of each of the common stock funds is long-term total return through capital appreciation and current income. The fixed-income funds are each designed to deliver safety and stability by preserving principal and accumulated earnings. The fixed-income fund seeks to achieve, over an extended period of time, total returns comparable or superior to broad measures of the long-term domestic investment grade credit bond market.

Real estate collective trust funds

We value real estate collective trust funds based on the NAV provided by the funds' administrators. A lack of liquidity in the funds may limit or delay redemptions. The investment objective of the real estate funds, which are diversified by location and property type, is long-term return through property appreciation, current income, and timely sales.

The primary investing objective of the pension plans is to provide benefits to plan participants and their beneficiaries. To achieve this goal, we invest in a diversified portfolio of equities, debt, and real estate investments to maximize return and to keep long-term investment risk at a reasonable level. Equity investments are diversified across U.S. and non-U.S. stocks, growth and value stocks, and small cap and large cap stocks. Debt securities are predominately investments in long-term, investment-grade corporate bonds. Real estate investments include investments in funds that are diversified by location and property type.

On a timely basis, but not less than twice a year, we formally review pension plan investments to ensure we adhere to investment guidelines and our stated investment approach. Our review also evaluates the reasonableness of our investment decisions and risk positions. We compare our investments' performance to indices and peers to determine if investment performance has been acceptable.

In 2026, we expect to contribute approximately $4.4 million to our pension and other post-retirement benefit plans. Additional contributions to the domestic funded pension plans will depend on investment returns on plan assets and actuarial experience.

The following table shows expected future benefit payments, which reflect expected future service (in millions):

	Funded Plans		Unfunded Plans		Retiree Health and Life
2026	$	30.2	$	3.1	$	1.3
2027	29.4		3.2		1.4
2028	29.0		3.2		1.4
2029	27.9		3.1		1.4
2030	27.2		2.9		1.3
Years 2031-2035	125.7		12.0		5.2
Total	$	269.4	$	27.5	$	12.0

In addition to our defined benefit plans, we have two 401(k) retirement savings plans available to substantially all salaried employees and certain other employee groups. We may contribute to the plans as specified by their respective terms and as our Board of Directors (the "Board" or "Board of Directors") determines. Contributions to our 401(k) retirement plans were $4.3 million for 2025, $4.0 million for 2024, and $2.6 million for 2023. We also made contributions of $2.0 million in 2025, $1.9 million in 2024, and $1.7 million in 2023 to certain foreign contributory plans.