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Pension, Postretirement, and Other Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension, Postretirement, and Other Benefit Plans Pension, Postretirement, and Other Benefit Plans
Voluntary Savings Plan
The Company maintains a voluntary savings plan covering all employees in the United States. The Plan, known as the Prosperity Plus Savings Plan, is a qualified plan under section 401(k) of the U.S. Internal Revenue Code. The Company matches, in the form of cash, between 50% and 100% of employee contributions up to a defined maximum. The investment of employee contributions to the plan is self-directed. The Company’s cost of the plan amounted to $8.5 million in 2025, $7.8 million in 2024, and $7.3 million in 2023.
The plan allows for discretionary matching contributions. The Company uses such discretion to provide profit sharing contributions to plan participants. Such contributions are based on Company performance and vary from year to year and contributions are generally made in the first quarter following the Company’s fiscal year-end. The Company’s profit-sharing plan covers all employees in the United States. After the close of each year, the Board of Directors reviews and approves the amount of the profit-sharing contribution. Company contributions to the plan are in the form of cash. The expense recorded for this plan was $3.2 million in 2025, $2.4 million in 2024, and $4.9 million in 2023.
Pension and Postretirement Plans
The Company has defined benefit pension and postretirement plans covering certain current and former U.S. and non-U.S. employees. The eligibility, benefit formulas, and contribution requirements for plans vary by location.
As of December 31, 2025, U.S. benefit obligations exist through the U.S. Supplemental Executive Retirement Plan (“SERP”), a frozen unfunded pension plan, and the U.S. postretirement welfare plan ("PRW"), a frozen plan which provides various medical, dental, and life insurance benefits. The U.S. Pension Plus Plan, a qualified defined benefit pension plan was terminated in 2021 and settled during 2022.
The Company recognizes the funded status of each defined benefit and other postretirement benefit plan. Each overfunded plan is recognized as an asset and each underfunded plan is recognized as a liability. Company pension plan disclosures for U.S. and non-U.S. plans have been combined for both 2025 and 2024, except where indicated below.
The Company’s pension and postretirement benefit costs and benefit obligations are based on actuarial valuations that are affected by many assumptions, the most significant of which are the assumed discount rate, expected rate of return on pension plan assets, and mortality. Each of the assumptions is reviewed and updated annually, as appropriate. The assumed rates of return for pension plan assets are determined for each major asset category based on historical rates of return for assets in that category and expectations of future rates of return based, in part, on simulated future capital market performance. The assumed discount rate is based on yields from a portfolio of currently available high-quality fixed-income investments with durations matching the expected future payments, based on the demographics of the plan participants and the plan provisions.
Gains and losses arise from changes in the assumptions used to measure the benefit obligations, and experience different from what had been assumed, including asset returns different than what had been expected. The Company amortizes gains and losses in excess of a “corridor” over the average future service of the plan’s current participants. The corridor is defined as 10% of the greater of the plan’s projected benefit obligation or market-related value of plan
assets. The market-related value of plan assets is also used to determine the expected return on plan assets component of net periodic cost.
To the extent the Company’s unrecognized net losses and unrecognized prior service costs, including the amount recognized through accumulated other comprehensive income, are not reduced by future favorable plan experience, they will be recognized as a component of the net periodic cost in future years.
The following table sets forth the plan benefit obligations:
As of December 31, 2025As of December 31, 2024
(in thousands, except percentages)
Pension plans
Other
postretirement benefits
Pension plansOther postretirement benefits
Benefit obligation, beginning of year
$137,111 $26,715 $158,323 $28,684 
Service cost
1,156 40 1,812 46 
Interest cost
6,013 1,414 6,114 1,416 
Plan participants' contributions
266 — 530 — 
Actuarial (gain)/loss
3,533 1,235 (3,868)(709)
Benefits paid
(10,464)(2,566)(9,423)(2,651)
Acquisitions/Divestiture(374)— — — 
Settlements and curtailments
(15,043)— (7,805)— 
Foreign currency changes
12,121 41 (8,572)(71)
Benefit obligation, end of year
$134,319 $26,879 $137,111 $26,715 
Accumulated benefit obligation
$129,003 $— $132,198 $— 
Weighted average assumptions used to
determine benefit obligations, end of year:
Discount rate — U.S. plan
4.84 %5.21 %5.44 %5.61 %
Discount rate — non-U.S. plans
4.71 %4.95 %4.32 %4.70 %
Cash balance interest crediting rate - Switzerland pension plan1.20 %— 1.15 %— 
Compensation increase — U.S. plan
N/AN/AN/AN/A
Compensation increase — non-U.S. plans
2.90 %2.75 %2.68 %2.75 %
During 2025, pension benefit obligations decreased by $2.8 million, related to several factors including benefit payments made to participants of the plan which resulted in a decrease of $10.5 million, and settlement and curtailments which resulted in a decrease of $15.0 million, offset by foreign currency changes, with an increase of $12.1 million, as well as several other offsetting items. Other postretirement benefit obligations increased by $0.2 million in 2025, primarily driven by interest costs and actuarial losses.
During 2024, pension benefit obligations decreased by $21.2 million, related to several factors including benefit payments made to participants of the plan which resulted in a decrease of $9.4 million, and foreign currency changes which resulted in a decrease of $8.6 million, as well as several other offsetting items. Other postretirement benefit obligations decreased by $2.0 million in 2024, primarily driven by payments made by the Company to participants of the plan.
The following sets forth information about plan assets:
As of December 31, 2025As of December 31, 2024
(in thousands)
Pension plans
Other postretirement benefits
Pension plans
Other postretirement benefits
Fair value of plan assets, beginning of year
$103,137 $— $112,688 $— 
Actual return on plan assets, net of expenses
668 — (408)— 
Employer contributions
5,644 2,566 8,744 2,651 
Plan participants' contributions
266 — 530 — 
Benefits paid
(10,464)(2,566)(9,423)(2,651)
Acquisitions
— — — — 
Settlements
(14,767)— (3,811)— 
Other
— — — — 
Foreign currency changes
7,127 — (5,183)— 
Fair value of plan assets, end of year
$91,611 $— $103,137 $— 
The funded status of the plans was as follows:
As of December 31, 2025As of December 31, 2024
(in thousands)
Pension plansOther postretirement benefitsPension plansOther postretirement benefits
Fair value of plan assets
$91,611 $— $103,137 $— 
Benefit obligation
134,319 26,879 137,111 26,715 
Funded status
$(42,708)$(26,879)$(33,974)$(26,715)
Accrued benefit cost, end of year$(42,708)$(26,879)$(33,974)$(26,715)
Amounts recognized in the consolidated balance sheets consist of the following:
Noncurrent asset$10,406 $— $16,982 $— 
Current liability(5,332)(2,727)(4,915)(2,772)
Noncurrent liability(47,782)(24,152)(46,041)(23,943)
Net amount recognized
$(42,708)$(26,879)$(33,974)$(26,715)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss$28,845 $2,597 $19,529 $1,345 
Prior service cost/(credit)(93)(237)(96)(360)
Net amount recognized
$28,752 $2,360 $19,433 $985 
The composition of the net pension plan funded status as of December 31, 2025 was as follows:
(in thousands)
U.S. planNon-U.S. plansTotal
Pension plans with pension assets
$— $10,406 $10,406 
Pension plans without pension assets
(3,636)(49,478)(53,114)
Total
$(3,636)$(39,072)$(42,708)
The underfunded balance in the U.S. relates to the Supplemental Executive Retirement Plan.
The composition of the net periodic benefit plan cost for the years ended December 31, 2025, 2024, and 2023, was as follows:
Pension plansOther postretirement benefits
(in thousands, except percentages)
202520242023202520242023
Components of net periodic benefit cost:
Service cost
$1,156 $1,812 $1,478 $40 $46 $60 
Interest cost
6,013 6,114 5,151 1,414 1,416 1,874 
Expected return on assets
(4,538)(5,430)(4,347)— — — 
Amortization of prior service cost/(credit)
(28)(26)(32)(122)(124)(4,090)
Amortization of net actuarial loss
1,185 647 555 (34)(34)828 
Settlement
2,355 (33)— — — — 
Curtailment (gain)/loss
(4,356)(37)— — — — 
Net periodic benefit cost
$1,787 $3,047 $2,805 $1,298 $1,304 $(1,328)
Weighted average assumptions used to determine net cost:
Discount rate — U.S. plan5.44 %5.15 %5.49 %5.61 %5.21 %5.55 %
Discount rate — non-U.S. plans4.32 %4.05 %5.15 %4.70 %4.70 %5.20 %
Cash balance interest crediting rate - Switzerland pension plan1.15 %1.30 %2.15 %— — — 
Expected return on plan assets — U.S. planN/AN/AN/AN/AN/AN/A
Expected return on plan assets — non-U.S. plans4.82 %4.98 %5.21 %N/AN/AN/A
Rate of compensation increase — U.S. planN/AN/AN/AN/AN/AN/A
Rate of compensation increase — non-U.S. plans2.68 %2.89 %3.08 %2.75 %2.75 %2.75 %
Pretax (gains)/losses on plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2025, 2024, and 2023, was as follows:
Pension plansOther postretirement benefits
(in thousands)
202520242023202520242023
Settlements/curtailments
$2,002 $70 $— $— $— $— 
Asset/liability loss/(gain)
7,126 (2,023)4,365 1,235 (709)(6,131)
Amortization of actuarial gain/(loss)(1,185)(646)(554)34 34 (828)
Amortization of prior service cost/(credit)
28 26 32 122 124 4,090 
Currency impact
1,349 (748)757 (16)28 (8)
Cost/(benefit) in Other comprehensive income
$9,320 $(3,321)$4,600 $1,375 $(523)$(2,877)
Investment Strategy
Our investment strategy for pension assets differs for the various countries in which we have defined benefit pension plans. Some of our defined benefit plans do not require funded trusts and, in those arrangements, the Company funds the plans on a “pay as you go” basis. The largest of the funded defined benefit plans are in Canada and the United Kingdom.
For the countries in which the Company has funded pension trusts, the investment strategy may also be liability driven or, in other cases, to achieve a competitive, total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions, and the timing of benefit payments and contributions.
Fair-Value Measurements
The following tables present plan assets as of December 31, 2025, and 2024, using the fair-value hierarchy, which has three levels based on the reliability of inputs used, as described in Note 18, Fair-Value Measurements, of the Notes to the Consolidated Financial Statements. Certain investments that are measured at fair value using net asset value ("NAV") as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table above. As of December 31, 2025 and 2024, there were no investments expected to be sold at a value materially different than NAV.
Assets at Fair Value as of December 31, 2025
(in thousands)Quoted prices in active markets Level 1Significant other observable inputs Level 2Significant 
unobservable inputs Level 3		Total
Common Stocks and equity funds$— $— $— $— 
Debt securities283 43,281 — 43,564 
Insurance contracts— — 3,998 3,998 
Real Estate
— — — — 
Hedge Funds
— — — — 
Cash and short-term investments6,643 — — 6,643 
Total investments in the fair value hierarchy$6,926 $43,281 $3,998 54,205 
Investments at net asset value:
Common Stocks and equity funds12,689 
Fixed income funds24,717 
Limited partnerships— 
Total plan assets$91,611 
Assets at Fair Value as of December 31, 2024
(in thousands)
Quoted prices in active markets Level 1Significant other observable inputs Level 2Significant unobservable inputs Level 3Total
Common Stocks and equity funds
$— $4,241 $— $4,241 
Debt securities
— 49,940 — 49,940 
Insurance contracts
— — 3,528 3,528 
Real Estate
— — 3,244 3,244 
Hedge Funds
— — 836 836 
Cash and short-term investments
5,323 — — 5,323 
Total investments in the fair value hierarchy
$5,323 $54,181 $7,608 67,112 
Investments at net asset value:
Common Stocks and equity funds
13,124 
Fixed income funds
22,901 
Limited partnerships
— 
Total plan assets
$103,137 
The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2025 and 2024:
(in thousands)
December 31, 2024Net realized gainsNet unrealized gainsNet purchases, issuances
and settlements		Net transfers (out of) Level 3December 31, 2025
Insurance contracts -
total level 3 assets
$7,608 $— $81 $(3,691)$— $3,998 
(in thousands)
December 31, 2023Net realized gainsNet unrealized gainsNet purchases, issuances
and settlements		Net transfers (out of) Level 3December 31, 2024
Insurance contracts -
total level 3 assets
$7,597 $— $58 $(47)$— $7,608 
None of the Company's U.S. pension plans held assets during 2025 or 2024. The asset allocation for the Company’s non-U.S. pension plans for 2025 and 2024, and the target allocation, by asset category, are as follows:
Non-U.S. Plans
Target
Allocation		Percentage of plan assets at plan measurement date
Asset category20252024
Equity securities
12 %12 %15 %
Debt securities
31 %31 %70 %
Real estate
1 %1 %3 %
Other(1)
56 %56 %12 %
100 %100 %100 %
(1)Other includes hedged equity and absolute return strategies, as well as private equity. The Company has procedures to monitor the performance of these investments and compares asset valuations to audited financial statements of the funds.
The targeted plan asset allocation is based on an analysis of the actuarial liabilities, a review of viable asset classes, and an analysis of the expected rate of return, risk, and other investment characteristics of various investment asset classes.
At the end of 2025 and 2024, the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with projected benefit obligation and an accumulated benefit obligation in excess of plan assets were as follows:
Plans with projected
benefit obligation in
excess of plan assets
(in thousands)
20252024
Projected benefit obligation
$58,331 $55,067 
Fair value of plan assets
5,217 4,111 

Plans with accumulated
benefit obligation in
excess of plan assets
(in thousands)20252024
Accumulated benefit obligation$55,260 $52,493 
Fair value of plan assets4,463 3,509 
Information about expected cash flows for the pension and other benefit obligations are as follows:
(in thousands)
Pension plansOther postretirement benefits
Expected employer contributions and direct employer payments in the next fiscal year
$5,931 $2,727 
Expected benefit payments
2026 10,324 2,727 
2027 9,640 2,626 
2028 9,707 2,525 
2029 9,589 2,423 
2030 9,810 2,324 
2031 to 2035 (expected, combined)46,753 10,126