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Retirement Benefits
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
We use a measurement date of December 31 to determine the change in benefit obligation, change in plan assets, funded status, and amounts recognized in the consolidated balance sheets at December 31 for our defined benefit pension and retiree health benefit plans, which were as follows:
 Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
2024202320242023
Change in benefit obligation:
Benefit obligation at beginning of year$14,257.9 $13,222.0 $1,310.3 $1,258.8 
Service cost338.7 290.4 35.4 31.8 
Interest cost661.7 648.2 62.1 61.3 
Actuarial (gain) loss(1,083.6)590.5 (96.5)34.5 
Benefits paid(634.3)(610.5)(82.2)(80.6)
Foreign currency exchange rate changes and other adjustments(125.0)117.3 (6.4)4.5 
Benefit obligation at end of year13,415.4 14,257.9 1,222.7 1,310.3 
Change in plan assets:
Fair value of plan assets at beginning of year13,708.7 13,195.8 2,580.3 2,492.5 
Actual return on plan assets583.2 881.9 58.5 166.8 
Employer contribution115.3 120.6 9.2 1.7 
Benefits paid(634.3)(610.5)(82.2)(80.6)
Foreign currency exchange rate changes and other adjustments(114.5)120.9 — (0.1)
Fair value of plan assets at end of year13,658.4 13,708.7 2,565.8 2,580.3 
Funded status243.0 (549.2)1,343.1 1,270.0 
Unrecognized net actuarial loss2,662.9 3,357.9 149.3 109.6 
Unrecognized prior service (benefit) cost4.1 6.4 (3.7)(9.5)
Net amount recognized$2,910.0 $2,815.1 $1,488.7 $1,370.1 
Amounts recognized in the consolidated balance sheets consisted of:
Other noncurrent assets$1,481.6 $810.6 $1,484.6 $1,427.7 
Other current liabilities(71.4)(70.4)(8.2)(8.3)
Accrued retirement benefits(1,167.2)(1,289.4)(133.3)(149.4)
Accumulated other comprehensive loss
2,667.0 3,364.3 145.6 100.1 
Net amount recognized$2,910.0 $2,815.1 $1,488.7 $1,370.1 
The unrecognized net actuarial (gain) loss and unrecognized prior service (benefit) cost have not yet been recognized in net periodic pension costs and were included in accumulated other comprehensive loss at December 31, 2024 and 2023. Unrecognized net actuarial (gain) loss for the U.S. and Puerto Rico defined benefit pension and retiree health benefit plans are amortized over the average remaining service period of active employees in the plan. The amortization of actuarial (gains) losses for U.S. and Puerto Rico defined benefit pension plans are determined by using a 10% corridor of the greater of the market related value of assets or the projected benefit obligations.
The $930.1 million decrease in benefit obligation in 2024 was primarily driven by increases in the discount rates. The $1.09 billion increase in benefit obligation in 2023 was primarily driven by decreases in the discount rates.
The following represents our weighted-average assumptions:
 Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
202420232022202420232022
Weighted-average assumptions used to determine net periodic benefit costs:
Discount rate
4.8 %5.1 %2.8 %5.0 %5.2 %3.0 %
Rate of compensation increase
4.3 4.3 3.5 
Expected return on plan assets
8.1 8.1 8.1 7.3 7.3 7.3 
Weighted-average assumptions used to determine benefit obligation as of December 31:
Discount rate
5.5 %4.8 %5.1 %5.7 %5.0 %5.2 %
Rate of compensation increase
4.0 4.3 4.3 
We annually evaluate the expected return on plan assets in our defined benefit pension and retiree health benefit plans. In evaluating the expected return on plan assets, we consider many factors, with a primary analysis of current and projected market conditions; asset returns and asset allocations; and the views of leading financial advisers and economists. In U.S. and Puerto Rico, the expected return on plan assets uses a market-related value of assets. For U.S. dollar denominated investment grade debt securities and derivatives, the market-related value of assets is the actual fair value. For all other asset categories, the market-related value of assets uses a method that recognizes investment gains and losses arising from the difference between expected and actual returns on plan assets over a five-year period.
We may also review our historical assumptions compared with actual results, as well as the assumptions and trend rates utilized by similar plans, where applicable.
Given the design of our retiree health benefit plans, healthcare-cost trend rates do not have a material impact on our financial condition or results of operations.
Expected benefit payments, which reflect expected future service, are as follows:
202520262027202820292030 - 2034
Defined benefit pension plans$677.0 $694.4 $721.4 $746.9 $778.4 $4,388.7 
Retiree health benefit plans93.4 93.6 94.4 95.0 95.1 477.5 
Amounts relating to defined benefit pension plans with projected benefit obligations in excess of plan assets were as follows at December 31:
 20242023
Projected benefit obligation$2,297.0 $2,395.3 
Fair value of plan assets1,058.4 1,035.4 
Amounts relating to defined benefit pension plans and retiree health benefit plans with accumulated benefit obligations in excess of plan assets were as follows at December 31:
Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
 2024202320242023
Accumulated benefit obligation$1,655.8 $1,659.5 $141.5 $157.7 
Fair value of plan assets595.0 564.3 — — 
The total accumulated benefit obligation for our defined benefit pension plans was $12.18 billion and $12.74 billion at December 31, 2024 and 2023, respectively.
Net periodic (benefit) cost included the following components:
 Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
202420232022202420232022
Components of net periodic (benefit) cost:
Service cost$338.7 $290.4 $351.7 $35.4 $31.8 $46.6 
Interest cost661.7 648.2 398.1 62.1 61.3 37.8 
Expected return on plan assets(1,112.2)(1,055.0)(947.6)(192.3)(182.1)(152.1)
Amortization of prior service (benefit) cost2.1 2.4 2.4 (5.6)(52.9)(54.8)
Recognized actuarial (gain) loss125.1 122.0 342.4 (2.6)(5.8)0.9 
Net periodic (benefit) cost$15.4 $8.0 $147.0 $(103.0)$(147.7)$(121.6)
The following represents the amounts recognized in other comprehensive income (loss) for the years ended December 31:
Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
202420232022202420232022
Actuarial gain (loss) arising during period$554.5 $(763.9)$823.6 $(37.2)$(49.8)$(552.2)
Amortization of prior service (benefit) cost included in net income2.1 2.4 2.4 (5.6)(52.9)(54.8)
Amortization of net actuarial (gain) loss included in net income125.1 122.0 342.4 (2.6)(5.8)0.9 
Foreign currency exchange rate changes and other15.6 (29.2)55.5 (0.1)0.7 (0.9)
Total other comprehensive income (loss) during period$697.3 $(668.7)$1,223.9 $(45.5)$(107.8)$(607.0)
We have defined contribution savings plans that cover our eligible employees worldwide. The purpose of these plans is generally to provide additional financial security during retirement by providing employees with an incentive to save. Our contributions to the plans are based on employee contributions and the level of our match. Expenses under the plans totaled $249.7 million, $222.6 million, and $170.6 million for the years ended December 31, 2024, 2023, and 2022, respectively.
Benefit Plan Investments
Our benefit plan investment policies are set with specific consideration of return and risk requirements in relationship to the respective liabilities. U.S. and Puerto Rico plans represent approximately 85 percent of our global investments. Given the long-term nature of our liabilities, these plans have the flexibility to manage an above-average degree of risk in the asset portfolios. At the investment-policy level, there are no specifically prohibited investments. However, within individual investment manager mandates, restrictions and limitations are contractually set to align with our investment objectives, ensure risk control, and limit concentrations.
We manage our portfolio to minimize concentration of risk by allocating funds within asset categories. In addition, within a category we use different managers with various management objectives to eliminate any significant concentration of risk.
Our global benefit plans may enter into contractual arrangements (derivatives) to implement the local investment policy or manage particular portfolio risks. Derivatives are principally used to increase or decrease exposure to a particular public equity, fixed income, commodity, or currency market more rapidly or less expensively than could be accomplished through the use of the cash markets. The plans utilize both exchange-traded and over-the-counter instruments. The maximum exposure to either a market or counterparty credit loss is limited to the carrying value of the receivable, and is managed within contractual limits. We expect all of our counterparties to meet their obligations. The gross values of these derivative receivables and payables are not material to the global asset portfolio, and their values are reflected within the tables below.
The defined benefit pension and retiree health benefit plan allocation for the U.S. and Puerto Rico currently comprises approximately 80 percent growth investments and 20 percent fixed-income investments. The growth investment allocation encompasses U.S. and international public equity securities, hedge funds, private equity-like investments, and real estate. These portfolio allocations are intended to reduce overall risk by providing diversification, while seeking moderate to high returns over the long term.
Public equity securities are well diversified and invested in U.S. and international small-to-large companies across various asset managers and styles. The remaining portion of the growth portfolio is invested in private alternative investments.
Fixed-income investments primarily consist of fixed-income securities in U.S. treasuries and agencies, emerging market debt obligations, corporate bonds, bank loans, mortgage-backed securities, commercial mortgage-backed obligations, and any related repurchase agreements.
Hedge funds are privately owned institutional investment funds that generally have moderate liquidity. Hedge funds seek specified levels of absolute return regardless of overall market conditions, and generally have low correlations to public equity and debt markets. Hedge funds often invest substantially in financial market instruments (stocks, bonds, commodities, currencies, derivatives, etc.) using a very broad range of trading activities to manage portfolio risks. Hedge fund strategies focus primarily on security selection and seek to be neutral with respect to market moves. Common groupings of hedge fund strategies include relative value, tactical, and event driven. Relative value strategies include arbitrage, when the same asset can simultaneously be bought and sold at different prices, achieving an immediate profit. Tactical strategies often take long and short positions to reduce or eliminate overall market risks while seeking a particular investment opportunity. Event strategy opportunities can evolve from specific company announcements such as mergers and acquisitions, and typically have little correlation to overall market directional movements. Our hedge fund investments are made through limited partnership interests in fund-of-funds structures and directly into hedge funds. Plan holdings in hedge funds are valued based on net asset values (NAVs) calculated by each fund or general partner, as applicable, and we have the ability to redeem these investments at NAV.
Private equity-like investment funds typically have low liquidity and are made through long-term partnerships or joint ventures that invest in pools of capital invested in primarily non-publicly traded entities. Underlying investments include venture capital (early stage investing), buyout, special situations, private debt, and private real estate investments. Private equity management firms typically acquire and then reorganize private companies to create increased long term value. Private equity-like funds usually have a limited life of approximately 10-15 years, and require a minimum investment commitment from their limited partners. Our private equity-like investments are made both directly into funds and through fund-of-funds structures to ensure broad diversification of management styles and assets across the portfolio. Plan holdings in private equity-like investments are valued using the value reported by the partnership, adjusted for known cash flows and significant events through our reporting date. Values provided by the partnerships are primarily based on analysis of and judgments about the underlying investments. Inputs to these valuations include underlying NAVs, discounted cash flow valuations, comparable market valuations, and may also include adjustments for currency, credit, liquidity and other risks as applicable. The vast majority of these private partnerships provide us with annual audited financial statements including their compliance with fair valuation procedures consistent with applicable accounting standards.
Real estate is composed of public holdings. Real estate investments in registered investment companies that trade on an exchange are classified as Level 1 on the fair value hierarchy. Real estate investments in funds measured at fair value on the basis of NAV provided by the fund manager are classified as such. These NAVs are developed with inputs including discounted cash flow, independent appraisal, and market comparable analyses.
Other assets include cash and cash equivalents and mark-to-market value of derivatives.
The cash value of the trust-owned insurance contract is primarily invested in investment-grade publicly traded equity and fixed-income securities.
Other than hedge funds, private equity-like investments, and a portion of the real estate holdings, which are discussed above, we determine fair values based on a market approach using quoted market values, significant other observable inputs for identical or comparable assets or liabilities, or discounted cash flow analyses.
The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2024 by asset category were as follows:
  Fair Value Measurements Using
Asset ClassTotalQuoted Prices in Active Markets for
Identical Assets
(Level 1)		Significant
Observable 
Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
Investments Valued at Net Asset Value(1)
Defined Benefit Pension Plans
Public equity securities:
U.S.$1,905.6 $602.4 $0.3 $— $1,302.9 
International1,517.3 453.7 336.7 — 726.9 
Fixed income:
Developed markets2,343.2 20.6 2,161.9 0.1 160.6 
Developed markets - repurchase agreements(641.0)— (641.0)— — 
Emerging markets320.4 21.0 34.9 — 264.5 
Private alternative investments:
Hedge funds3,057.6 — — — 3,057.6 
Equity-like funds3,931.5 — — 9.4 3,922.1 
Real estate450.9 301.0 — — 149.9 
Other772.9 10.2 25.9 — 736.8 
Total$13,658.4 $1,408.9 $1,918.7 $9.5 $10,321.3 
Retiree Health Benefit Plans
Public equity securities:
U.S.$184.2 $56.9 $— $— $127.3 
International103.7 41.0 — — 62.7 
Fixed income:
Developed markets63.0 — 63.0 — — 
Emerging markets26.0 — — — 26.0 
Private alternative investments:
Hedge funds285.2 — — — 285.2 
Equity-like funds346.1 — — 0.9 345.2 
Cash value of trust owned insurance contract1,464.9 — 1,464.9 — — 
Real estate28.4 28.4 — — — 
Other64.3 3.6 (7.0)— 67.7 
Total$2,565.8 $129.9 $1,520.9 $0.9 $914.1 
(1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
No material transfers between Level 1, Level 2, or Level 3 occurred during the year ended December 31, 2024. The activity in the Level 3 investments during the year ended December 31, 2024 was not material.
The fair values of our defined benefit pension plan and retiree health plan assets as of December 31, 2023 by asset category were as follows:
  Fair Value Measurements Using
Asset ClassTotalQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Investments Valued at Net Asset Value(1)
Defined Benefit Pension Plans
Public equity securities:
U.S.$1,379.7 $490.5 $0.3 $— $888.9 
International1,408.9 441.2 333.4 — 634.3 
Fixed income:
Developed markets2,783.9 21.2 2,597.3 0.1 165.3 
Developed markets - repurchase agreements(772.8)13.2 (786.0)— — 
Emerging markets295.6 10.4 35.7 — 249.5 
Private alternative investments:
Hedge funds3,125.9 — — — 3,125.9 
Equity-like funds4,093.7 — — 25.1 4,068.6 
Real estate369.7 261.9 — — 107.8 
Other1,024.1 170.8 42.6 — 810.7 
Total$13,708.7 $1,409.2 $2,223.3 $25.2 $10,051.0 
Retiree Health Benefit Plans
Public equity securities:
U.S.$127.0 $44.2 $— $— $82.8 
International89.9 38.2 — — 51.7 
Fixed income:
Developed markets74.9 — 74.9 — — 
Emerging markets23.4 — — — 23.4 
Private alternative investments:
Hedge funds281.2 — — — 281.2 
Equity-like funds335.1 — — 2.4 332.7 
Cash value of trust owned insurance contract1,526.5 — 1,526.5 — — 
Real estate24.5 24.5 — — — 
Other97.8 23.2 2.1 — 72.5 
Total$2,580.3 $130.1 $1,603.5 $2.4 $844.3 
(1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
No material transfers between Level 1, Level 2, or Level 3 occurred during the year ended December 31, 2023. The activity in the Level 3 investments during the year ended December 31, 2023 was not material.
In 2025, we expect to contribute approximately $30 million to our defined benefit pension plans to satisfy minimum funding requirements for the year. We do not currently expect to make material discretionary contributions in 2025.