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
	2025		2024		2025		2024
Accumulated benefit obligation	$	991,154	$	1,001,801	$	462,726	$	447,127

Projected benefit obligation
Benefit obligation - beginning of year	$	1,001,811	$	1,205,140	$	450,740	$	492,767
Service cost	25		49		1,143		745
Interest cost	53,485		58,131		23,477		20,815

Net actuarial (gain) loss	32,303		(39,337)		(12,056)		(15,310)
Foreign currency changes	—		—		33,545		(15,591)

Settlements	—		(140,356)		(1,122)		(7,861)

Benefits paid	(96,470)		(81,816)		(29,541)		(24,825)
Benefit obligation - end of year	$	991,154	$	1,001,811	$	466,186	$	450,740




Fair value of plan assets
Fair value of plan assets - beginning of year	$	958,812	$	1,153,490	$	408,205	$	466,687
Actual return on plan assets	72,960		22,920		11,951		(19,217)
Company contributions	5,626		4,574		8,645		7,881

Settlements	—		(140,356)		(1,122)		(7,861)
Foreign currency changes	—		—		27,707		(14,460)
Benefits paid	(96,470)		(81,816)		(29,541)		(24,825)
Fair value of plan assets - end of year	$	940,928	$	958,812	$	425,845	$	408,205


Amounts recognized in the Consolidated Balance Sheets


Noncurrent asset	$	—	$	—	$	25,479	$	26,502
Current liability	(19,776)		(4,606)		(1,855)		(1,664)
Noncurrent liability	(30,449)		(38,393)		(63,965)		(67,373)
Funded status	$	(50,225)	$	(42,999)	$	(40,341)	$	(42,535)


	United States				Foreign
	2025		2024		2025		2024
Projected benefit obligation	$	991,154	$	1,001,811	$	383,913	$	368,417
Accumulated benefit obligation	$	991,154	$	1,001,801	$	381,867	$	366,197
Fair value of plan assets	$	940,928	$	958,812	$	318,757	$	299,912


Pretax amounts recognized in AOCL consist of:
	United States				Foreign
	2025		2024		2025		2024
Net actuarial loss	$	647,221	$	633,733	$	343,268	$	350,007
Prior service (credit) cost	(45)		(65)		6,662		6,969
Transition asset	—		—		(7)		(7)
Total	$	647,176	$	633,668	$	349,923	$	356,969


	United States						Foreign
	2025		2024		2023		2025		2024		2023
Service cost	$	25	$	49	$	44	$	1,143	$	745	$	766
Interest cost	53,485		58,131		63,533		23,477		20,815		21,238
Expected return on plan assets	(74,302)		(85,701)		(86,008)		(26,585)		(25,858)		(29,899)

Amortization of prior service (credit) cost	(20)		(20)		(20)		307		298		286
Amortization of net actuarial loss	20,156		19,190		17,362		9,120		7,737		2,068

Settlements	—		88,051		771		197		3,373		(25)
Net periodic benefit cost (income)	$	(656)	$	79,700	$	(4,318)	$	7,659	$	7,110	$	(5,566)


	United States				Foreign
	2025		2024		2025		2024
Net actuarial loss	$	33,644	$	23,443	$	2,577	$	29,581

Amortization of net actuarial loss	(20,156)		(19,190)		(9,120)		(7,737)
Amortization of prior service credit (cost)	20		20		(307)		(298)

Settlements	—		(88,051)		(197)		(3,373)
Total recognized in other comprehensive loss	$	13,508	$	(83,778)	$	(7,047)	$	18,173

In 2024, we recorded an aggregate settlement charge of $91 million in connection with a targeted lump-sum campaign for terminated vested participants in the United States and Canada Defined Benefit Plan.

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


	2025				2024				2023
United States
Used to determine benefit obligations
Discount rate	5.34%				5.65%				5.15%
Rate of compensation increase	N/A				N/A				N/A

Used to determine net periodic benefit cost
Discount rate	5.65%				5.15%				5.55%
Expected return on plan assets	6.90%				6.70%				6.50%
Rate of compensation increase	N/A				N/A				N/A

Foreign
Used to determine benefit obligations
Discount rate	3.20	%	-	6.40%	2.20	%	-	6.70%	1.95	%	-	4.60%
Rate of compensation increase	2.00	%	-	9.94%	2.00	%	-	9.88%	2.00	%	-	3.50%

Used to determine net periodic benefit cost
Discount rate	2.20	%	-	6.70%	1.95	%	-	4.60%	1.95	%	-	5.10%
Expected return on plan assets	3.00	%	-	7.00%	2.75	%	-	5.50%	2.75	%	-	5.26%
Rate of compensation increase	2.00	%	-	9.88%	2.00	%	-	3.50%	2.00	%	-	3.60%

A discount rate is used to determine the present value of our future benefit obligations. As a result of the decision to terminate the US pension plan as of March 31, 2026 (see below), the discount rate used to determine the benefit obligation for U.S. plan was based on the estimated amount required to settle the obligations through lump sum payments and the purchase of annuities, and was determined by matching the timing of the expected cash flows of the pension obligations to the total cost to settle the obligation, as generated by a portfolio of long-term, high-quality fixed income debt instruments.

The discount rate for our largest foreign plan, the U.K. Qualified Pension Plan (the “U.K. Plan”), was 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.

In December 2025, we entered into a buy-in contract (the “U.S. Buy-In”) with an insurance carrier to secure a portion of the pension benefits for certain plan participants of the U.S. Qualified Pension Plan (the “Plan”). The U.S. Buy-In was purchased for approximately $800 million using existing plan assets. This annuity contract provides for the payment of fully guaranteed, irreversible benefits to the Plan for eligible retirees and their beneficiaries, corresponding to a portion of the Plan's total projected benefit obligation.

The U.S. Buy-In insurance annuity contract is accounted for as an asset within the Plan's trust and remains on our Consolidated Balance Sheet. The underlying pension benefit obligation to the participants covered by the annuity contract also remains on the balance sheet. The annuity contract is measured at fair value, which is determined by the insurance carrier.

In 2025, we also entered into a buy-in contract (the “Canada Buy-In”) with an insurance carrier to secure the pension benefits for all defined benefit plan participants of the Canada Pension Plan (the “Canada Plan”). The Canada Buy-In was purchased for

approximately $70 million using existing plan assets. This annuity contract provides for the payment of fully guaranteed, irreversible benefits to the Canada Plan for eligible retirees and their beneficiaries, corresponding to the Canada Plan's total projected benefit obligation.

The Canada Buy-In is accounted for as an asset within the Canada Plan's trust and remains on our Consolidated Balance Sheet. The underlying pension benefit obligation to the participants covered by the Canada Buy-In also remains on the balance sheet. The annuity contract is measured at fair value, which is determined by the plan actuaries.

Because we retain the primary obligation for the benefits, the U.S. Buy-In and Canada Buy-In do not qualify as an immediate settlement under ASC 715, Compensation—Retirement Benefits, and therefore, no gain or loss was recognized in the Consolidated Statements of Operations at the time of the transaction.

We continue to recognize the net actuarial gains and losses, prior service costs/credits, and other components of net periodic pension cost over the remaining service period or life expectancy of the participants, as applicable.

The U.S. Buy-In and Canada Buy-In effectively de-risk a portion of our pension obligations by transferring the investment and longevity risks for the covered participants to the insurance carrier. As a result of this de-risking, the expected rate of return on plan assets assumption used in the determination of net periodic pension costs is lower than the prior year, and accordingly, we estimate that 2026 net periodic pension costs for the U.S. and Canada plans will increase approximately $35 million over 2025 levels.

In January 2026, our CEO, under authority granted by the Board of Directors in 2025, approved the termination of the U.S. Qualified Pension Plan, effective March 31, 2026. We intend to distribute plan benefits through a voluntary lump sum window and by entering into a buy-out contract to transfer all remaining assets and liabilities of the Plan to the insurance carrier before the end of the year.

In connection with U.S. Buy-In and planned termination of the U.S. Qualified Pension Plan, the investment strategy of the U.S. Pension Plans is to minimize funded status volatility and fully hedge plan obligations on a termination‑basis. The below asset allocations reflect the U.S. Buy-In purchased in 2025 and our intention to enter into a buy-out contract before the end of 2026.


	Target allocation		Percent of Plan Assets at December 31,
	2026		2025		2024
Asset category
Equities	—	%	—	%	15	%
Multi-asset credit	—	%	—	%	2	%
Fixed income	—	%	14	%	77	%
Annuity	—	%	85	%	—	%


Real estate	—	%	1	%	5	%
Private equity	—	%	—	%	1	%
Total	—	%	100	%	100	%

The investment strategies for our foreign pension plans is to maximize returns within reasonable and prudent risk levels to achieve and maintain full funding of the accumulated benefit obligations and the actuarial liabilities while adhering to regulations and restrictions.

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 75% of the total foreign pension plan assets, were as follows:


	Target Allocation		Percent of Plan Assets at December 31,
	2026		2025		2024
Asset category

Global equities	5	%	5	%	6	%
Fixed income	55	%	55	%	53	%
Multi-asset credit	4	%	4	%	6	%
Real estate	10	%	10	%	15	%
Diversified Growth Funds	25	%	25	%	16	%
Cash	1	%	1	%	4	%
Total	100	%	100	%	100	%

Pension plan assets are exposed to various risks, including interest rate risks, market risks and credit risks. To mitigate these risks, investments are diversified across asset classes and within each class and are periodically rebalanced. Derivative instruments may also 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 U.K Plan or other foreign 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.


	December 31, 2025
	Level 1		Level 2		Level 3		Total


Commingled fixed income securities	$	—	$	34,618	$	—	$	34,618
Government and related securities	97,055		—		—		97,055
Corporate debt securities	—		31		—		31
Mortgage-backed /asset-backed securities	—		17		—		17

Real estate	—		—		7,452		7,452
Buy-in annuity contract	—		—		798,275		798,275
Total plan assets at fair value	$	97,055	$	34,666	$	805,727	937,448

Investments valued at NAV							4,664
Cash							15
Other							(1,199)

Fair value of plan assets							$	940,928


	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, 2025
	Level 1		Level 2		Level 3		Total
Money market funds	$	—	$	23,878	$	—	$	23,878
Equity securities	—		18,853		—		18,853
Commingled fixed income securities	—		193,786		—		193,786




Real estate	—		—		30,247		30,247
Diversified growth funds	—		—		80,144		80,144

Buy-in annuity contract	—		—		72,752		72,752
Total plan assets at fair value	$	—	$	236,517	$	183,143	419,660
Cash							3,589
Other							2,596

Fair value of plan assets							$	425,845


	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

•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.

•Buy-in Annuity Contracts - consists of contracts with insurance carriers to provide pension benefits to certain eligible pension plan participants. The value of the contracts are determined by the insurance carriers or actuaries and is equal to the present value of future projected benefits. These assets are classified as Level 3.

•Real Estate: consists of units in open-ended commingled real estate funds. The underlying properties held in these funds are valued periodically (but at least annually) by the investment manager, certified appraisers or others. The valuation techniques used to value these investments include the cost approach, sales-comparison method and the income approach. These assets are classified as Level 3.

•Diversified Growth Funds: comprised of units in commingled diversified funds that comprise a mix of different asset classes. The underlying investments may not be listed on an exchange or traded in an active market. Inputs used to value these funds 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 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.

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, 2025 and 2024. These investments comprise less than 1% of total U.S. Pension Fund assets at both December 31, 2025 and 2024.


	U.S. Plans				Foreign Plans
	Buy-in annuity contract		Real estate		Buy-in annuity contract		Real estate		Diversified Growth Funds
Balance at December 31, 2023	$	—	$	67,256	$	—	$	43,205	$	—
Realized gains	—		6,762		—		—		—
Unrealized (losses) gains	—		(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
Realized gains	—		8,486		—		—		—
Unrealized (losses) gains	—		(7,147)		1,165		799		6,503
Net purchases, sales and settlements	—		(39,108)		—		(16,993)		21,359
Buy-in contract purchase	798,275		—		69,934		—		—
Foreign currency and other	—		—		1,653		2,511		3,882
Balance at December 31, 2025	$	798,275	$	7,452	$	72,752	$	30,247	$	80,144

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:


	2025		2024
Benefit obligation
Benefit obligation - beginning of year	$	79,647	$	93,487
Service cost	273		369
Interest cost	4,159		4,479

Net actuarial gain	2,630		(5,603)
Foreign currency changes	295		(633)



Benefits paid, net	(10,806)		(12,452)
Benefit obligation - end of year (1)	$	76,198	$	79,647



Fair value of plan assets
Fair value of plan assets - beginning of year	$	—	$	—
Company contribution	10,806		12,452

Benefits paid, net	(10,806)		(12,452)
Fair value of plan assets - end of year	$	—	$	—



Amounts recognized in the Consolidated Balance Sheets
Current liability	$	(8,865)	$	(9,257)
Noncurrent liability	(67,334)		(70,390)
Funded status	$	(76,199)	$	(79,647)


	2025		2024		2023
Service cost	$	273	$	369	$	367
Interest cost	4,159		4,479		5,031

Amortization of net actuarial loss	(2,456)		(1,451)		(2,249)


Net periodic benefit cost	$	1,976	$	3,397	$	3,149


	2025		2024		2023
Discount rate used to determine benefit obligation
U.S.	5.30	%	5.60	%	5.20	%
Canada	4.65	%	4.55	%	4.60	%

Discount rate used to determine net period benefit cost
U.S.	5.60	%	5.20	%	5.60	%
Canada	4.55	%	4.60	%	5.15	%

The discount rate for the U.S. postretirement medical benefit plan is determined by matching the expected cash flows associated with the 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 the Canada postretirement medical benefit plan is determined by matching the expected cash flows associated with the 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 7.50% and 6.50% for 2025 and 2024, respectively. The assumed health care trend rate is 7.25% for 2026 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.


	Pension Benefits		Postretirement Medical Benefits
2026	$	1,037,924	$	9,087
2027	32,847		8,611
2028	33,029		8,192
2029	33,393		7,724
2030	33,092		7,293
Thereafter	166,565		29,855
	$	1,336,850	$	70,762

During 2026, we anticipate making contributions of approximately $7 million to our foreign pension plans and approximately $24 million to our U.S. pension plans as a result of the anticipated plan termination.

We offer a voluntary defined contribution 401(k) plan to our U.S. employees designed to help them accumulate additional savings for retirement and make matching contributions based on their eligible pay. Total employer contributions to the 401(k) plan were $27 million and $26 million in 2025 and 2024, respectively.