XML 118 R56.htm IDEA: XBRL DOCUMENT v3.25.0.1
Pension and Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2024
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Net Pension and Postretirement Cost As of December 31, 2024 and 2023, the net prior service cost related to the Company’s Brazilian postretirement health care benefit plans was as follows (in millions):
20242023
Net prior service cost$4.5 $3.0 
Schedule of Reconciliation of Changes in Benefit Obligations, Plan Assets and Funded Status The following tables set forth reconciliations of the changes in benefit obligation, plan assets and funded status as of December 31, 2024 and 2023 (in millions):
Pension and ENPP BenefitsPostretirement Benefits
Change in benefit obligation2024202320242023
Benefit obligation at beginning of year$647.0 $611.6 $23.0 $21.2 
Service cost8.2 9.6 — 0.1 
Interest cost27.8 29.3 1.5 1.3 
Plan participants’ contributions1.3 1.3 — — 
Actuarial losses (gains)(42.3)21.6 (3.1)1.7 
Amendments(0.3)0.1 1.6 — 
Settlements(34.0)(4.9)— — 
Benefits paid(44.4)(46.1)(1.9)(1.8)
Foreign currency exchange rate changes(12.2)24.5 (1.4)0.5 
Curtailment
(1.0)— — — 
Benefit obligation at end of year$550.1 $647.0 $19.7 $23.0 
Pension and ENPP BenefitsPostretirement Benefits
Change in plan assets2024202320242023
Fair value of plan assets at beginning of year$572.0 $528.7 $— $— 
Actual return on plan assets(18.2)31.2 — — 
Employer contributions26.9 35.1 1.8 1.8 
Plan participants’ contributions1.3 1.3 — — 
Benefits paid(44.4)(46.1)(1.9)(1.8)
Settlements(33.9)(4.9)— — 
Foreign currency exchange rate changes(9.7)26.7 0.1 — 
Fair value of plan assets at end of year$494.0 $572.0 $— $— 
Funded status$(56.0)$(75.0)$(19.7)$(23.0)

Amounts recognized in Consolidated
Balance Sheets:
Other assets (noncurrent)
$92.9 $85.0 $— $— 
Other current liabilities(7.5)(7.4)(1.6)(1.6)
Accrued expenses(3.7)(4.1)— — 
Pension and postretirement health care benefits (noncurrent)
(137.7)(148.5)(18.1)(21.4)
Net amount recognized$(56.0)$(75.0)$(19.7)$(23.0)
Schedule of Accumulated Other Comprehensive Income (Loss) The following table sets forth changes in accumulated other comprehensive loss by component, net of tax, attributed to AGCO Corporation for the years ended December 31, 2024, 2023 and 2022 (in millions):
Defined Pension and Postretirement Benefit Plans
Cumulative Translation Adjustment
Deferred Gains and Losses on Derivatives
Total
Accumulated other comprehensive loss, December 31, 2021
$(230.4)$(1,540.1)$(0.4)$(1,770.9)
Other comprehensive loss before reclassifications
(7.2)(30.9)(14.6)(52.7)
Net losses reclassified from accumulated other comprehensive loss6.4 — 14.1 20.5 
Other comprehensive loss
(0.8)(30.9)(0.5)(32.2)
Accumulated other comprehensive loss, December 31, 2022
$(231.2)$(1,571)$(0.9)$(1,803.1)
Other comprehensive income (loss) before reclassifications
(15.7)102.3 (8.9)77.7 
Net losses reclassified from accumulated other comprehensive loss8.3 — 9.0 17.3 
Other comprehensive income (loss)
(7.4)102.3 0.1 95.0 
Accumulated other comprehensive loss, December 31, 2023$(238.6)$(1,468.7)$(0.8)$(1,708.1)
Other comprehensive income (loss) before reclassifications(3.1)(224.3)3.4 (224.0)
Net losses reclassified from accumulated other comprehensive loss22.9 — 6.3 29.2 
Other comprehensive income (loss)
19.8 (224.3)9.7 (194.8)
Accumulated other comprehensive loss, December 31, 2024
$(218.8)$(1,693.0)$8.9 $(1,902.9)
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) The unrecognized net actuarial losses included in accumulated other comprehensive loss related to the Company’s defined benefit pension plans and ENPP as of December 31, 2024 and 2023 are set forth below (in millions):
20242023
Unrecognized net actuarial losses$256.7 $280.2 
The following table summarizes the unrecognized prior service cost related to the Company’s defined benefit pension plans as of December 31, 2024 and 2023 (in millions):
20242023
Unrecognized prior service cost$29.8 $31.4 
Schedule of Defined Benefit Plan Amortization Losses As of December 31, 2024, the average amortization periods were as follows:
ENPPU.K. Plan
Average amortization period of losses related to defined benefit pension plans6 years16 years
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year The following table summarizes the unrecognized net actuarial gains included in the Company’s accumulated other comprehensive loss related to the Company’s U.S. and Brazilian postretirement health care benefit plans as of December 31, 2024 and 2023 (in millions):
20242023
Unrecognized net actuarial gains(1)
$(3.3)$(0.2)
___________________________________
(1)      Includes a gain of approximately $1.3 million and $1.2 million, respectively, related to the Company’s U.S. postretirement benefit plans.
Schedule of Plans with Accumulated Benefit Obligation in Excess of Plan Assets The following table summarizes the fair value of plan assets, aggregate projected benefit obligation and accumulated benefit obligation as of December 31, 2024 and 2023 for defined benefit pension plans, ENPP and other postretirement plans with accumulated benefit obligations in excess of plan assets (in millions):
20242023
All plans:
Fair value of plan assets$30.7 $37.3 
Projected benefit obligation199.3 220.2 
Accumulated benefit obligation189.8 209.3 
U.S.-based plans and ENPP:
Fair value of plan assets$— $— 
Projected benefit obligation102.5 104.9 
Accumulated benefit obligation102.5 104.1 
Reconciliation of Level 3 Assets The following is a reconciliation of Level 3 assets as of December 31, 2023 (in millions):
TotalAlternative InvestmentsMiscellaneous Funds
Beginning balance as of December 31, 2022$40.2 $2.4 $37.8 
Actual return on plan assets:
(a) Relating to assets still held at reporting date2.6 (0.2)2.8 
Purchases, sales and /or settlements(3.0)— (3.0)
Foreign currency exchange rate changes1.2 — 1.2 
Ending balance as of December 31, 2023$41.0 $2.2 $38.8 
Pension plan  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Net Pension and Postretirement Cost Net annual pension costs for the years ended December 31, 2024, 2023 and 2022 for the Company’s defined benefit pension plans and ENPP are set forth below (in millions):
Pension benefits202420232022
Service cost$8.2 $9.6 $12.8 
Interest cost27.8 29.3 14.8 
Expected return on plan assets(30.8)(30.4)(16.9)
Amortization of net actuarial losses1.4 9.4 8.7 
Amortization of prior service cost10.5 1.5 0.1 
Net (gain) loss recognized due to settlement18.8 0.4 (0.4)
Curtailment (gain) loss
(0.2)— — 
Net annual pension cost$35.7 $19.8 $19.1 
Schedule of Assumptions Used The weighted average assumptions used to determine the net annual pension costs for the Company’s defined benefit pension plans and ENPP for the years ended December 31, 2024, 2023 and 2022 are as follows:
202420232022
All plans:
Weighted average discount rate4.5 %4.9 %1.9 %
Weighted average expected long-term rate of return on plan assets5.5 %5.5 %2.3 %
Rate of increase in future compensation
1.7%-5.0%
1.8%-5.0%
1.5%-5.0%
U.S.-based plans:
Weighted average discount rate5.3 %5.7 %3.1 %
Weighted average expected long-term rate of return on plan assets(1)
5.8 %5.8 %4.3 %
Rate of increase in future compensation(2)
5.0 %5.0 %5.0 %
___________________________________
(1)    Applicable for U.S. funded, qualified plan.
(2)    Applicable for U.S. unfunded, nonqualified plan.
The weighted average assumptions used to determine the benefit obligation for the Company’s defined benefit pension plans and ENPP as of December 31, 2024 and 2023 are as follows:
20242023
All plans:
Weighted average discount rate5.1 %4.5 %
Rate of increase in future compensation
1.5%-5.0%
1.7%-5.0%
U.S.-based plans:
Weighted average discount rate5.8 %5.3 %
Rate of increase in future compensation(1)
5.0 %5.0 %
____________________________________
(1)    Applicable for U.S. unfunded, nonqualified plan.
Schedule of Accumulated Other Comprehensive Income (Loss) The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s ENPP and defined pension and postretirement benefit plans during the years ended December 31, 2024, 2023 and 2022 (in millions):
Before-Tax
Amount
Income
Tax Expense
(Benefit)
After-Tax
Amount
Accumulated other comprehensive loss as of December 31, 2021
$(302.4)$(72.0)$(230.4)
Prior service cost arising during the year
(25.5)(6.4)(19.1)
Net gain recognized due to settlement
(0.4)— (0.4)
Net actuarial gain arising during the year
15.0 2.7 12.3 
Amortization of prior service cost0.2 0.2 — 
Amortization of net actuarial losses8.7 2.3 6.4 
Accumulated other comprehensive loss as of December 31, 2022
$(304.4)$(73.2)$(231.2)
Net loss recognized due to settlement
0.4 — 0.4 
Net actuarial loss arising during the year
(21.5)(5.4)(16.1)
Amortization of prior service cost 1.7 0.4 1.3 
Amortization of net actuarial losses9.4 2.4 7.0 
Accumulated other comprehensive loss as of December 31, 2023
$(314.4)$(75.8)$(238.6)
Prior service cost arising during the year
(1.4)(0.5)(0.9)
Net loss recognized due to settlement
18.8 4.8 14.0 
Net actuarial loss arising during the year
(2.7)(0.5)(2.2)
Amortization of prior service cost 1.5 0.4 1.1 
Amortization of net actuarial losses 10.5 2.7 7.8 
Accumulated other comprehensive loss as of December 31, 2024
$(287.7)$(68.9)$(218.8)
Schedule of Expected Benefit Payments At December 31, 2024, the aggregate expected benefit payments for the Company’s defined benefit pension plans and ENPP are as follows (in millions):
2025$42.2 
202643.3 
202744.4 
202842.4 
202943.6 
2030 through 2034240.2 
$456.1 
Schedule of Allocation of Plan Assets The overall investment strategies and target allocations of retirement fund investments for the Company’s non-U.S. based pension plans are as follows:
Non-U.S. Pension Plans(1)
Overall investment strategies:(2)
Assets for the near-term benefit payments10.0 %
Assets for longer-term growth90.0 %
Total100.0 %
Target allocations:
Equity securities5.0 %
Fixed income securities95.0 %
Total100.0 %
_______________________________________
(1)    The majority of the Company’s non-U.S. pension fund investments are related to the Company’s pension plan in the United Kingdom.
(2)    The overall non-U.S. pension funds invest in a broad diversification of asset types.
Schedule of Fair Value of Plan Assets The fair value of the Company’s pension assets as of December 31, 2024 is as follows (in millions):
TotalLevel 1Level 2Level 3
Equity securities:
Global equities$21.3 $— $21.3 $— 
Total equity securities21.3 — 21.3 — 
Fixed income:
Aggregate fixed income420.5 420.5 — — 
Total fixed income share(1)
420.5 420.5 — — 
Alternative investments:
Private equity fund— — — 
Hedge funds measured at net asset value(4)
10.0 — — — 
Total alternative investments(2)
10.0 — — — 
Miscellaneous funds(3)
32.2 — — 32.2 
Cash and equivalents measured at net asset value(4)
10.0 — — — 
Total assets$494.0 $420.5 $21.3 $32.2 
______________________________________
(1)    68% of “fixed income” securities are in government treasuries; 22% are in foreign securities; 7% are in asset or mortgage backed securities; 2% are in investment-grade corporate bonds and 1% are in high-yield securities.
(2)    49% of “alternative investments” are in relative value funds; 30% are in long-short equity funds; 14% are in event-driven funds and 7% are in credit funds.
(3)    “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland.
(4)    Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
The fair value of the Company’s pension assets as of December 31, 2023 is as follows (in millions):
TotalLevel 1Level 2Level 3
Equity securities:
Global equities$55.8 $— $55.8 $— 
Total equity securities55.8 — 55.8 — 
Fixed income:
Aggregate fixed income437.1 437.1 — — 
Total fixed income share(1)
437.1 437.1 — — 
Alternative investments:
Private equity fund2.2 — — 2.2 
Hedge funds measured at net asset value(4)
33.2 — — — 
Total alternative investments(2)
35.4 — — 2.2 
Miscellaneous funds(3)
38.8 — — 38.8 
Cash and equivalents measured at net asset value(4)
4.9 — — — 
Total assets$572.0 $437.1 $55.8 $41.0 
______________________________________
(1)    67% of “fixed income” securities are in government treasuries; 27% are in foreign securities; 4% are in investment-grade corporate bonds; 2% are in high-yield securities.
(2)    53% of “alternative investments” are in relative value funds; 24% are in long-short equity funds; 8% are in event-driven funds; 9% are in credit funds; and 6% are distributed in hedged and non-hedged funds.
(3)    “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland.
(4)    Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
Reconciliation of Level 3 Assets The following is a reconciliation of Level 3 assets as of December 31, 2024 (in millions):
TotalAlternative InvestmentsMiscellaneous Funds
Beginning balance as of December 31, 2023$41.0 $2.2 $38.8 
Actual return on plan assets:
(a) Relating to assets still held at reporting date(0.6)— (0.6)
Purchases, sales and /or settlements(5.9)(2.2)(3.7)
Foreign currency exchange rate changes(2.3)— (2.3)
Ending balance as of December 31, 2024$32.2 $— $32.2 
Postretirement benefits  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Net Pension and Postretirement Cost Net annual postretirement benefit costs, and the weighted average discount rate used to determine them, for the years ended December 31, 2024, 2023 and 2022 are set forth below (in millions, except percentages):
Postretirement benefits202420232022
Service cost$— $0.1 $0.1 
Interest cost1.5 1.3 0.9 
Amortization of prior service cost0.1 0.2 0.1 
Net annual postretirement benefit cost$1.6 $1.6 $1.1 
Weighted average discount rate6.7 %6.6 %4.1 %
Schedule of Expected Benefit Payments At December 31, 2024, the aggregate expected benefit payments for the Company’s U.S. and Brazilian postretirement benefit plans are as follows (in millions):
2025$1.7 
20261.7 
20271.8 
20281.8 
20291.8 
2030 through 20348.7 
$17.5 
U.S. | Pension plan  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Allocation of Plan Assets The weighted average asset allocation of the Company’s U.S. pension benefit plans as of December 31, 2024 and 2023 are as follows:
Asset Category
2024(1)
2023
Equity securities— %— %
Fixed income securities— %89 %
Other investments— %11 %
Total— %100 %
______________________________________
(1)    The U.S. defined qualified pension plan was terminated and fully settled as of December 31, 2024. As such, there are no related pension plan assets.
U.K | Pension plan  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Allocation of Plan Assets
The weighted average asset allocation of the Company’s U.K. pension benefit plans as of December 31, 2024 and 2023 are as follows:

Asset Category20242023
Equity securities5 %11 %
Fixed income securities91 %82 %
Other investments4 %7 %
Total100 %100 %