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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
The Company provides substantially all U.S. employees and employees at certain foreign subsidiaries with retirement benefits including defined benefit pension plans and defined contribution plans. The Company also provides certain eligible U.S. employees who retire under qualifying conditions with subsidized postretirement health care coverage or Health Care Reimbursement Accounts.

The Company maintains 401(k) plans covering substantially all U.S. employees. The Company contributes cash to the plans to match qualifying employee contributions, and also provides a non-matching employer contribution of 1% of pay to eligible participants. Under an employee stock ownership component of the 401(k) plans, employees may choose to invest in the Company’s stock as part of their own investment elections. Assets of the Company’s 401(k) plans consist primarily of listed common stocks and pooled funds. The Company’s 401(k) plans held 5.6 million shares of Company common stock at December 31, 2024, with a market value of $282 million. Cash dividends received on shares of Company common stock by these plans during the year ended December 31, 2024 were $11 million.
The following table sets forth the components of retirement plan expense for the years ended December 31, 2024, 2023, and 2022 (in millions).
 Pension BenefitsPostretirement Benefits
Year Ended December 31Year Ended December 31
202420232022202420232022
Retirement plan expense
Defined benefit plans:
Service cost (benefits earned during the period)$46 $41 $48 $— $— $1 
Interest cost79 76 48 5 6 3 
Expected return on plan assets(89)(83)(79)— — — 
Settlement charges2 — — — — — 
Curtailments— — (2)— — — 
Amortization of actuarial loss5 3 17 3 2 5 
Amortization of prior service cost (credit)(20)(20)(20)— — — 
Net periodic defined benefit plan expense23 17 12 8 8 9 
Defined contribution plans76 73 67 — — — 
Total retirement plan expense$99 $90 $79 $8 $8 $9 
Net actuarial loss (gain)
$(38)$46 $(88)$(5)$4 $(29)
Prior service cost
26 19 20 — — — 
Total pre-tax comprehensive loss (income)
$(12)$65 $(68)$(5)$4 $(29)
The following tables set forth changes in the defined benefit obligation and the fair value of defined benefit plan assets for the years ended December 31, 2024 and 2023 (in millions).
 Pension BenefitsPostretirement Benefits
December 31
2024		December 31
2023		December 31
2024		December 31
2023
Change in benefit obligations:
Benefit obligation, beginning$1,765 $1,587 $113 $118 
Service cost46 41 — — 
Interest cost79 76 5 6 
Actuarial loss (gain)(111)83 (3)6 
Employee contributions4 3 — — 
Benefits paid(62)(53)(14)(17)
Plan amendments6 — — — 
Foreign currency effects and Other
(54)28 1 — 
Benefit obligation, ending$1,673 $1,765 $102 $113 
Change in plan assets
Fair value of plan assets, beginning$1,415 $1,269 $— $— 
Actual return on plan assets7 121 — — 
Employer contributions26 54 14 17 
Employee contributions4 3 — — 
Benefits paid(62)(53)(14)(17)
Foreign currency effects and Other
(39)21 — — 
Fair value of plan assets, ending$1,351 $1,415 $— $— 
Funded status$(322)$(350)$(102)$(113)
Amounts recognized in the Consolidated Balance Sheets consist of:
Other assets (non-current)
$68 $63 $— $— 
Accrued expenses and other payables
(19)(19)(13)(14)
Other long-term liabilities
(371)(394)(89)(99)
Net amount recognized in the Consolidated Balance Sheets
$(322)$(350)$(102)$(113)

In 2024, the actuarial gains in the pension plans were primarily driven by increases in the global bond yields, which were partially offset by unfavorable asset performances in the funded plans in the U.S. and the U.K.

The Company uses the corridor approach when amortizing actuarial losses. Under the corridor approach, net unrecognized actuarial losses in excess of 10% of the greater of the projected benefit obligation or the market related value of plan assets are amortized over future periods. For plans with little to no active participants, the amortization period is the remaining average life expectancy of the participants. For plans with active participants, the amortization period is the remaining average service period of the active participants. The amortization periods range from 4 to 27 years for the Company’s defined benefit pension plans and from 5 to 18 years for the Company’s postretirement benefit plans.

Included in AOCI for pension benefits at December 31, 2024, are the following amounts that have not yet been recognized in net periodic pension cost: unrecognized prior service credit of $30 million and unrecognized actuarial loss of $235 million.

Included in AOCI for postretirement benefits at December 31, 2024, are the following amounts that have not yet been recognized in net periodic postretirement benefit cost: unrecognized prior service cost of $1 million and unrecognized actuarial loss of $15 million. 
The following table sets forth the principal assumptions used in developing net periodic benefit cost:
 Pension BenefitsPostretirement Benefits
December 31
2024		December 31
2023		December 31
2024		December 31
2023
Discount rate4.5%4.8%4.9%5.1%
Expected return on plan assets6.0%6.0%N/AN/A
Rate of compensation increase4.8%4.3%N/AN/A
Interest crediting rate4.0%3.9%N/AN/A

The following table sets forth the principal assumptions used in developing the year-end actuarial present value of the projected benefit obligations:

 Pension BenefitsPostretirement Benefits
December 31
2024		December 31
2023		December 31
2024		December 31
2023
Discount rate5.0 %4.5 %5.5%4.9%
Rate of compensation increase4.8 %4.8 %N/AN/A
Interest crediting rate4.6 %4.0 %N/AN/A

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets were $1.4 billion, $1.4 billion, and $1.0 billion, respectively, as of December 31, 2024, and $1.5 billion, $1.5 billion, and $1.0 billion, respectively, as of December 31, 2023. 

For postretirement benefit measurement purposes, a 8.7% annual rate of increase in the per capita cost of covered health care benefits was assumed for the year ended December 31, 2024. The rate was assumed to decrease gradually to 4.5% by 2034 and remain at that level thereafter.

Plan Assets

The Company’s employee benefit plan assets are principally comprised of the following types of investments:

Common Stock:
Equity securities are valued based on quoted exchange prices and are classified within Level 1 of the valuation hierarchy.

Mutual Funds:
Mutual funds are valued at the closing price reported on the active market on which they are traded and are classified within Level 1 of the valuation hierarchy.

Common Collective Trust (CCT) Funds:
The fair values of the CCTs are valued using net asset value (NAV). The investments in CCTs are comprised of U.S. and international equity, fixed income, and other securities. The investments are valued at NAV provided by administrators of the funds.

Corporate Debt Instruments:
Corporate debt instruments are valued using third-party pricing services and are classified within Level 2 of the valuation hierarchy.

U.S. Treasury Instruments:
U.S. Treasury instruments are valued at the closing price reported on the active market on which they are traded and are classified within Level 1 of the valuation hierarchy.
U.S. Government Agency, State, and Local Government Bonds:
U.S. government agency obligations and state and municipal debt securities are valued using third-party pricing services and are classified within Level 2 of the valuation hierarchy. 

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’ methods, 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 following tables set forth, by level within the fair value hierarchy, the fair value of plan assets as of December 31, 2024 and 2023 (in millions).
 Fair Value Measurements at December 31, 2024
Level 1
Level 2
Level 3
Total
Common stock$36 $— $— $36 
Mutual funds154 — — 154 
Corporate bonds— 517 — 517 
U.S. Treasury instruments161 — — 161 
U.S. government agency, state and local government bonds
— 4 — 4 
Other13 18 — 31 
Total assets$364 $539 $— $903 
Common collective trust funds at NAV
U.S. equity30 
International equity67 
Fixed income298 
Other53 
Total assets at fair value$1,351 

 Fair Value Measurements at December 31, 2023
Level 1
Level 2
Level 3
Total
Common stock$37 $— $— $37 
Mutual funds147 — — 147 
Corporate bonds— 473 — 473 
U.S. Treasury instruments262 — — 262 
U.S. government agency, state and local government bonds
— 8 — 8 
Other— 7 — 7 
Total assets$446 $488 $— $934 
Common collective trust funds at NAV
U.S. equity15 
International equity60 
Fixed income330 
Other76 
Total assets at fair value$1,415 

There are no Plan assets classified as Level 3 in the fair value hierarchy; therefore there are no gains or losses associated with Level 3 assets.
The following table sets forth the actual asset allocation for the Company’s global pension plan assets as of the measurement date.

December 31 2024(1)(2)
December 31
2023(2)
Equity securities21%19%
Debt securities68%77%
Other11%4%
Total100%100%

(1)The Company’s U.S. pension plans contain approximately 68% of the Company’s global pension plan assets. The actual asset allocation for the Company’s U.S. pension plans as of the measurement date consists of 23% equity securities, 74% debt securities, and 3% other. The target asset allocation for the Company’s U.S. pension plans is approximately the same as the actual asset allocation. The actual asset allocation for the Company’s foreign pension plans as of the measurement date consists of 18% equity securities, 56% debt securities, and 26% other. The target asset allocation for the Company’s foreign pension plans is approximately the same as the actual asset allocation.

(2)The Company’s pension plans did not directly hold any shares of Company common stock as of the December 31, 2024 and 2023 measurement dates. 

Investment objectives for the Company’s plan assets are to:

–Optimize the long-term return on plan assets in consideration of funded status risk.
–Maintain a broad diversification of assets and appropriate risk exposure across asset classes.
–Maintain careful control of the risk level within each asset class.

Asset allocation targets promote optimal expected return and volatility characteristics given the long-term time horizon for fulfilling the obligations of the pension plans. Selection of the targeted asset allocation for plan assets was based upon a review of the expected return and risk characteristics of each asset class, as well as the correlation of returns among asset classes. The U.S. pension plans target asset allocation is also based on an asset and liability study that is updated periodically.

Investment guidelines are established with each investment manager. These guidelines provide the parameters within which the investment managers agree to operate, including criteria that determine eligible and ineligible securities, diversification requirements, and credit quality standards, where applicable. In some countries, derivatives may be used to gain market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of underlying investments.

The Company uses external consultants to assist in monitoring the investment strategy and asset mix for the Company’s plan assets. To develop the Company’s expected long-term rate of return assumption on plan assets, the Company generally uses long-term historical return information for the targeted asset mix identified in asset and liability studies. Adjustments are made to the expected long-term rate of return assumption when deemed necessary based upon revised expectations of future investment performance of the overall investment markets.
Future Contributions and Expected Benefit Payments

Based on actuarial calculations, the Company expects to contribute $25 million to the pension plans and $13 million to the postretirement benefit plan during 2025. The Company may elect to make additional discretionary contributions during this period.

The following benefit payments, which reflect expected future service, are expected to be paid by the benefit plans (in millions):
 
Pension
Benefits		Postretirement
Benefits
2025$76 $13 
202683 12 
202789 11 
202896 10 
2029102 10 
2030-2034590 39