Retirement Plans and Postretirement Medical Benefits

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Retirement Plans and Postretirement Medical Benefits

Retirement Plans and Postretirement Medical Benefits

Retirement Plans

We provide retirement benefits to eligible employees in the U.S. and outside the U.S. under various defined benefit retirement plans. Benefit accruals under most of our defined benefit plans have been frozen. The benefit obligations and funded status of defined benefit pension plans are as follows:

	United States				Foreign
	2024		2023		2024		2023
Accumulated benefit obligation	$	1,001,801	$	1,205,108	$	447,127	$	488,531
Projected benefit obligation
Benefit obligation - beginning of year	$	1,205,140	$	1,205,183	$	492,767	$	451,337
Service cost	49		44		745		766
Interest cost	58,131		63,533		20,815		21,238
Net actuarial (gain) loss	(39,337)		36,882		(15,310)		22,984
Foreign currency changes	—		—		(15,591)		19,854
Settlements	(140,356)		(2,892)		(7,861)		(213)
Benefits paid	(81,816)		(97,610)		(24,825)		(23,199)
Benefit obligation - end of year	$	1,001,811	$	1,205,140	$	450,740	$	492,767

Fair value of plan assets
Fair value of plan assets - beginning of year	$	1,153,490	$	1,161,361	$	466,687	$	438,403
Actual return on plan assets	22,920		86,044		(19,217)		17,057
Company contributions	4,574		6,587		7,881		16,034
Settlements	(140,356)		(2,892)		(7,861)		(213)
Foreign currency changes	—		—		(14,460)		18,605
Benefits paid	(81,816)		(97,610)		(24,825)		(23,199)
Fair value of plan assets - end of year	$	958,812	$	1,153,490	$	408,205	$	466,687

Amounts recognized in the Consolidated Balance Sheets
Noncurrent asset	$	—	$	—	$	26,502	$	27,805
Current liability	(4,606)		(5,057)		(1,664)		(1,694)
Noncurrent liability	(38,393)		(46,593)		(67,373)		(52,191)
Funded status	$	(42,999)	$	(51,650)	$	(42,535)	$	(26,080)

Information provided in the table below is only for pension plans with an accumulated benefit obligation in excess of plan assets:

	United States				Foreign
	2024		2023		2024		2023
Projected benefit obligation	$	1,001,811	$	1,205,141	$	368,417	$	396,690
Accumulated benefit obligation	$	1,001,801	$	1,205,108	$	366,197	$	392,586
Fair value of plan assets	$	958,812	$	1,153,490	$	299,912	$	342,805

Pretax amounts recognized in AOCL consist of:
	United States				Foreign
	2024		2023		2024		2023
Net actuarial loss	$	633,733	$	717,530	$	350,007	$	331,536
Prior service (credit) cost	(65)		(85)		6,969		7,266
Transition asset	—		—		(7)		(7)
Total	$	633,668	$	717,445	$	356,969	$	338,795

The components of net periodic benefit cost (income) for defined benefit pension plans were as follows:

	United States						Foreign
	2024		2023		2022		2024		2023		2022
Service cost	$	49	$	44	$	55	$	745	$	766	$	1,214
Interest cost	58,131		63,533		44,348		20,815		21,238		13,568
Expected return on plan assets	(85,701)		(86,008)		(71,080)		(25,858)		(29,899)		(26,770)
Amortization of prior service (credit) cost	(20)		(20)		(44)		298		286		252
Amortization of net actuarial loss	19,190		17,362		33,164		7,737		2,068		6,767
Settlements	88,051		771		394		3,373		(25)		—
Net periodic benefit cost (income)	$	79,700	$	(4,318)	$	6,837	$	7,110	$	(5,566)	$	(4,969)

Other changes in plan assets and benefit obligations for defined benefit pension plans recognized in other comprehensive loss were as follows:

	United States				Foreign
	2024		2023		2024		2023
Net actuarial loss	$	23,443	$	36,846	$	29,581	$	35,826
Amortization of net actuarial loss	(19,190)		(17,362)		(7,737)		(2,068)
Amortization of prior service credit (cost)	20		20		(298)		(286)
Settlements	(88,051)		(771)		(3,373)		25
Total recognized in other comprehensive loss	$	(83,778)	$	18,733	$	18,173	$	33,497

In 2024, we conducted a targeted lump-sum campaign for terminated vested participants in the United States and Canada Defined Benefit Plans. As a result of this campaign, the projected benefit obligation of the U.S. Plan was reduced by $122 million or approximately 10% while the assets were reduce by $120 million. In Canada, the projected benefit obligation was reduced by $7 million or approximately 9% and the assets were also reduced by $7 million. As a result of this campaign, we recorded an aggregate settlement charge of $91 million.

Weighted-average actuarial assumptions used to determine year end benefit obligations and net periodic benefit cost for defined benefit pension plans include:

	2024				2023				2022
United States
Used to determine benefit obligations
Discount rate	5.65%				5.15%				5.55%
Rate of compensation increase	N/A				N/A				N/A
Used to determine net periodic benefit cost
Discount rate	5.15%				5.55%				2.85%
Expected return on plan assets	6.70%				6.50%				5.10%
Rate of compensation increase	N/A				N/A				N/A
Foreign
Used to determine benefit obligations
Discount rate	2.20	%	-	6.70%	1.95	%	-	4.60%	1.95	%	-	5.10%
Rate of compensation increase	2.00	%	-	9.88%	2.00	%	-	3.50%	2.00	%	-	3.00%
Used to determine net periodic benefit cost
Discount rate	1.95	%	-	4.60%	1.95	%	-	5.10%	0.85	%	-	2.85%
Expected return on plan assets	2.75	%	-	5.50%	2.75	%	-	5.26%	3.75	%	-	5.75%
Rate of compensation increase	2.00	%	-	3.50%	2.00	%	-	3.60%	1.50	%	-	2.50%

A discount rate is used to determine the present value of our future benefit obligations. The discount rate for our U.S. pension plans is determined by matching the expected cash flows associated with our benefit obligations to a pool of corporate long-term, high-quality fixed income debt instruments available as of the measurement date. The discount rate for our largest foreign plan, the U.K. Qualified Pension Plan (the U.K. Plan), is determined using a model that discounts each year's estimated benefit payments by an applicable spot rate derived from a yield curve created from a large number of high quality corporate bonds. For our other smaller foreign pension plans, the discount rate is selected based on high-quality fixed income indices available in the country in which the plan is domiciled.

The expected return on plan assets is based on the target asset allocation for the applicable pension plan and expected rates of return for various asset classes in the investment portfolio after analyzing historical experience, future expectations of returns and volatility of asset classes.

Investment Strategy and Asset Allocation

The investment strategy for our pension plans is to maximize returns within reasonable and prudent risk levels, achieve and maintain full funding of the accumulated benefit obligation and the actuarial liabilities and earn the expected rate of return while adhering to regulations and restrictions.

Pension plan assets are invested in accordance with our strategic asset allocation policy. Pension plan assets are exposed to various risks, including interest rate risks, market risks and credit risks. Investments are diversified across asset classes and within each class to reduce the risk of large losses and are periodically rebalanced. Derivatives, such as swaps, options, forwards and futures contracts may be used for market exposure, to alter risk/return characteristics and to manage foreign currency exposure. We do not have any significant concentrations of credit risk within the plan assets.

U.S. Pension Plans

Investment objectives and investment managers are reviewed periodically. Target and actual asset allocations for the U.S. pension plans were as follows:

	Target allocation		Percent of Plan Assets at December 31,
	2025		2024		2023
Asset category
Equities	16	%	15	%	15	%
Multi-asset credit	2	%	2	%	2	%
Fixed income	76	%	77	%	76	%
Real estate	5	%	5	%	6	%
Private equity	1	%	1	%	1	%
Total	100	%	100	%	100	%

Foreign Pension Plans

Our foreign pension plan assets are managed by outside investment managers and monitored regularly by local trustees and our corporate personnel. Target and actual asset allocations for the U.K. Plan, which comprises 74% of the total foreign pension plan assets, were as follows:

	Target Allocation		Percent of Plan Assets at December 31,
	2025		2024		2023
Asset category
Global equities	6	%	6	%	8	%
Fixed income	61	%	53	%	69	%
Multi-asset credit	5	%	6	%	8	%
Real estate	13	%	15	%	13	%
Diversifiers	15	%	16	%	—	%
Cash	—	%	4	%	2	%
Total	100	%	100	%	100	%

Fair Value Measurements of Plan Assets

The following tables show the U.S. and foreign pension plans' assets, by level within the fair value hierarchy. The plan asset categories presented in the following tables are subsets of the broader asset allocation categories.

United States Pension Plans

	December 31, 2024
	Level 1		Level 2		Level 3		Total
Money market funds	$	—	$	10,461	$	—	$	10,461
Equity securities	—		67,945		—		67,945
Commingled fixed income securities	—		185,212		—		185,212
Government and related securities	158,047		37,880		—		195,927
Corporate debt securities	—		498,867		—		498,867
Mortgage-backed /asset-backed securities	—		39,046		—		39,046
Real estate	—		—		45,221		45,221
Securities lending collateral	—		109,132		—		109,132
Total plan assets at fair value	$	158,047	$	948,543	$	45,221	$	1,151,811
Securities lending payable							(109,132)
Investments valued at NAV							4,940
Cash							466
Other							(89,273)
Fair value of plan assets							$	958,812

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Money market funds	$	—	$	13,842	$	—	$	13,842
Equity securities	—		102,795		—		102,795
Commingled fixed income securities	—		220,041		—		220,041
Government and related securities	170,540		28,518		—		199,058
Corporate debt securities	—		545,615		—		545,615
Mortgage-backed /asset-backed securities	—		49,300		—		49,300
Real estate	—		—		67,256		67,256
Securities lending collateral	—		104,630		—		104,630
Total plan assets at fair value	$	170,540	$	1,064,741	$	67,256	$	1,302,537
Securities lending payable							(104,630)
Investments valued at NAV							5,615
Cash							1,240
Other							(51,272)
Fair value of plan assets							$	1,153,490

Foreign Plans

	December 31, 2024
	Level 1		Level 2		Level 3		Total
Money market funds	$	—	$	2,400	$	—	$	2,400
Equity securities	—		28,958		—		28,958
Commingled fixed income securities	—		212,425		—		212,425
Government and related securities	—		31,962		—		31,962
Corporate debt securities	—		20,875		—		20,875
Real estate	—		3,675		43,930		47,605
Diversified growth funds	—		—		48,400		48,400
Total plan assets at fair value	$	—	$	300,295	$	92,330	$	392,625
Cash							12,644
Other							2,936
Fair value of plan assets							$	408,205

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Money market funds	$	—	$	5,997	$	—	$	5,997
Equity securities	—		44,088		—		44,088
Commingled fixed income securities	—		295,105		—		295,105
Government and related securities	—		38,028		—		38,028
Corporate debt securities	—		28,389		—		28,389
Real estate	—		4,869		43,205		48,074
Total plan assets at fair value	$	—	$	416,476	$	43,205	$	459,681
Cash							6,501
Other							505
Fair value of plan assets							$	466,687

The following information relates to our classification of investments into the fair value hierarchy:

•Money Market Funds: Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange.

•Equity Securities: Equity securities are comprised of private commingled funds investing in U.S. and foreign stocks. The commingled funds are not traded on an active market and fair value is based on the value of the underlying securities owned by each fund. These commingled funds are classified as Level 2.

•Commingled Fixed Income Securities: Commingled fixed income securities are comprised of mutual funds that invest in a variety of fixed income securities, including securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. Fair value is based on the value of the underlying investments owned by each fund, minus its liabilities, divided by the number of shares outstanding, as reported by the fund manager. These mutual funds are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange.

•Government and Related Securities: Debt securities are classified as Level 1 where active, high-volume trades for identical securities exist. Valuation adjustments are not applied to these securities. Debt securities are classified as Level 2 where fair value is determined using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities.

•Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads for the same maturity as the security. These securities are classified as Level 2.

•Mortgage-Backed Securities / Asset-Backed Securities: These securities are valued based on external pricing indices or on external price/spread data. These securities are classified as Level 2.

•Real Estate: include units in open-ended commingled real estate funds. Funds that are valued and traded on a daily basis in an active market are classified as Level 2. Investments that are valued on an annual basis by certified appraisers are classified as Level 3. The valuation techniques used to value Level 3 investments include the cost approach, sales-comparison method and the income approach.

•Diversifiers: comprised of units in commingled diversifier funds that comprise a mix of different asset classes. The underlying investments may not be listed on an exchange in an active market or traded on a daily basis and may fall into all three fair value categories. Accordingly, these securities are classified as Level 3.

•Securities Lending Fund: represents a commingled fund through our custodian's securities lending program. The U.S. pension plan lends securities that are held within the plan to other banks and/or brokers, and receives collateral, typically cash. This collateral is invested in a commingled fund that invests in short-term fixed income securities. This investment is classified as Level 2. This amount invested in the fund is offset by a corresponding liability reflected in the U.S. pension plan's net assets available for benefits.

Investments Valued at Net Asset Value

Represents investments in private equity limited partnerships that are measured at fair value using the Net Asset Value (NAV) per share as a practical expedient and are not categorized in the fair value hierarchy. There is no active market for these investments and the pension plan receives a proportionate share of the gains, losses and expenses in accordance with the partnership agreements. There was a remaining unfunded commitment of $6 million at both December 31, 2024 and 2023. These investments comprise approximately 1% of total U.S. Pension Fund assets at both December 31, 2024 and 2023.

Level 3 Gains and Losses

The following table summarizes the changes in the fair value of Level 3 assets:

	U.S. Plans		Foreign Plans
	Real estate		Real estate		Diversifiers
Balance at December 31, 2022	$	91,500	$	42,980	$	24,394
Realized gains	4,505		—		—
Unrealized losses	(18,386)		(3,951)		(3,133)
Net purchases, sales and settlements	(10,363)		2,014		(22,396)
Foreign currency and other	—		2,162		1,135
Balance at December 31, 2023	67,256		43,205		—
Realized gains	6,762		—		—
Unrealized losses	(14,316)		406		3,446
Net purchases, sales and settlements	(14,481)		1,214		45,406
Foreign currency and other	—		(895)		(452)
Balance at December 31, 2024	$	45,221	$	43,930	$	48,400

Postretirement Medical Benefits

We provide certain employer subsidized health care and employer provided life insurance benefits in the U.S. and Canada to eligible retirees and their dependents. The cost of these benefits is recognized over the period the employee provides credited service to the company. The benefit obligation and funded status for postretirement medical benefit plans are as follows:

	2024		2023
Benefit obligation
Benefit obligation - beginning of year	$	93,487	$	99,275
Service cost	369		367
Interest cost	4,479		5,031
Net actuarial gain	(5,603)		(206)
Foreign currency changes	(633)		214
Benefits paid, net	(12,452)		(11,194)
Benefit obligation - end of year (1)	$	79,647	$	93,487

Fair value of plan assets
Fair value of plan assets - beginning of year	$	—	$	—
Company contribution	12,452		11,194
Benefits paid, net	(12,452)		(11,194)
Fair value of plan assets - end of year	$	—	$	—

Amounts recognized in the Consolidated Balance Sheets
Current liability	$	(9,257)	$	(10,265)
Noncurrent liability	(70,390)		(83,222)
Funded status	$	(79,647)	$	(93,487)

(1)    Includes a benefit obligation for the U.S. postretirement plan of $73 million and $84 million at December 31, 2024 and 2023, respectively.

Pretax amounts recognized in AOCL consist of:

	2024		2023
Net actuarial gain	$	(18,511)	$	(14,360)

The components of net periodic benefit cost for postretirement medical benefit plans were as follows:

	2024		2023		2022
Service cost	$	369	$	367	$	731
Interest cost	4,479		5,031		3,679
Amortization of net actuarial loss	(1,451)		(2,249)		68
Net periodic benefit cost	$	3,397	$	3,149	$	4,478

Other changes in benefit obligation for postretirement medical benefit plans recognized in other comprehensive loss were as follows:

	2024		2023
Net actuarial gain	$	(5,603)	$	(206)
Amortization of net actuarial loss	1,451		2,249
Total recognized in other comprehensive loss	$	(4,152)	$	2,043

The weighted-average discount rates used to determine end of year benefit obligation and net periodic pension cost include:

	2024		2023		2022
Discount rate used to determine benefit obligation
U.S.	5.60	%	5.20	%	5.60	%
Canada	4.55	%	4.60	%	5.15	%
Discount rate used to determine net period benefit cost
U.S.	5.20	%	5.60	%	2.80	%
Canada	4.60	%	5.15	%	2.90	%

The discount rate for our U.S. postretirement medical benefit plan is determined by matching the expected cash flows associated with our benefit obligations to a pool of corporate long-term, high-quality fixed income debt instruments available as of the measurement date. The discount rate for our Canada postretirement medical benefit plan is determined by matching the expected cash flows associated with our benefit obligations to spot rates along a yield curve developed based on yields of corporate long-term, high-quality fixed income debt instruments available as of the measurement date.

The assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligation for the U.S. plan was 6.50% for both 2024 and 2023. The assumed health care trend rate is 7.50% for 2025 and will gradually decline to 5.0% by the year 2035 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, are expected to be paid.

	Pension Benefits		Postretirement Medical Benefits
2025	$	124,481	$	9,525
2026	119,776		9,115
2027	118,061		8,648
2028	116,601		8,211
2029	114,773		7,751
Thereafter	538,158		32,039
	$	1,131,850	$	75,289

During 2025, we do not anticipate making contributions to our U.S. pension plans and contributing approximately $7 million to our foreign pension plans.

Savings Plans

We offer a voluntary defined contribution 401(k) plan to our U.S. employees designed to help them accumulate additional savings for retirement. We provide a core contribution to all employees, regardless of if they participate in the plan, and an additional contribution to participating employees based on their eligible pay. Total employer contributions to the 401(k) plan were $26 million and $28 million in 2024 and 2023, respectively.