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RETIREMENT AND DEFERRED COMPENSATION PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
RETIREMENT AND DEFERRED COMPENSATION PLANS RETIREMENT AND DEFERRED COMPENSATION PLANS
We have various noncontributory retirement plans covering certain of our domestic and foreign employees. Benefits under our retirement plans are based on participants’ years of service and annual compensation as defined by each plan. Annual cash contributions to fund pension costs accrued under our domestic plans are generally at least equal to the minimum funding amounts required by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Certain pension commitments under our foreign plans are also funded according to local requirements or at our discretion.
Effective January 1, 2021, our domestic noncontributory retirement plans were closed to new employees and employees who were rehired after December 31, 2020. These employees are instead eligible for additional contribution to their defined contribution 401(k) employee savings plan. All domestic employees with hire/rehire dates prior to January 1, 2021 are still eligible for the domestic pension plans and continue to accrue plan benefits after this date.
The following table presents the changes in the benefit obligations and plan assets for the most recent two years for our domestic and foreign plans.
Domestic PlansForeign Plans
2024202320242023
Change in benefit obligation:
Benefit obligation at beginning of year$186,013 $163,872 $104,757 $93,999 
Service cost9,462 9,638 6,492 5,915 
Interest cost8,968 8,631 3,488 3,642 
Plan Amendment— — (17)— 
Curtailment/Settlement— — (1,385)(606)
Prior service cost— — — (1,134)
Actuarial (gain) loss
(18,156)13,989 1,370 6,906 
Benefits paid(11,093)(10,117)(3,776)(6,788)
Foreign currency translation adjustment (loss) gain
— — (6,733)2,823 
Benefit obligation at end of year$175,194 $186,013 $104,196 $104,757 
Domestic PlansForeign Plans
2024202320242023
Change in plan assets:
Fair value of plan assets at beginning of year$173,735 $162,151 $72,434 $72,523 
Actual return on plan assets17,624 21,207 3,605 3,978 
Employer contribution495 494 3,580 477 
Benefits paid(11,093)(10,117)(3,776)(6,788)
Foreign currency translation adjustment— — (4,593)2,244 
Fair value of plan assets at end of year$180,761 $173,735 $71,250 $72,434 
Funded status at end of year$5,567 $(12,278)$(32,946)$(32,323)
The following table presents the funded status amounts recognized in our Consolidated Balance Sheets as of December 31, 2024 and 2023.
Domestic PlansForeign Plans
2024202320242023
Non-current assets$19,739 $2,528 $3,648 $1,664 
Current liabilities(546)(530)(46)(32)
Non-current liabilities(13,626)(14,276)(36,548)(33,955)
$5,567 $(12,278)$(32,946)$(32,323)
The following table presents the amounts not recognized as components of periodic benefit cost that are recognized in accumulated other comprehensive (gain) loss as of December 31, 2024 and 2023.
Domestic PlansForeign Plans
2024202320242023
Net actuarial (gain) loss
$(21,495)$1,823 $16,201 $15,661 
Net prior service cost— — (531)(162)
Tax effects6,713 1,029 (6,413)(6,463)
$(14,782)$2,852 $9,257 $9,036 
Changes in benefit obligations and plan assets recognized in other comprehensive income in 2024, 2023 and 2022 are as follows:
Domestic Plans
202420232022
Current year actuarial gain (loss)
$23,318 $(5,161)$54,295 
Amortization of net loss— — 6,670 
$23,318 $(5,161)$60,965 
Foreign Plans
202420232022
Current year actuarial (loss) gain
$(47)$(5,315)$19,181 
Current year prior service cost20 1,135 (818)
Transfer actuarial gain (loss)
(694)124 17 
Amortization of net loss201 914 1,688 
Amortization of prior service cost349 177 177 
$(171)$(2,966)$20,245 
Components of net periodic benefit cost:
Domestic Plans
202420232022
Service cost$9,462 $9,638 $15,784 
Interest cost8,968 8,631 6,970 
Expected return on plan assets(12,463)(12,378)(12,912)
Amortization of net loss— — 6,670 
Net periodic benefit cost$5,967 $5,891 $16,512 
Foreign Plans
202420232022
Service cost$6,492 $5,915 $7,547 
Interest cost3,488 3,642 1,388 
Expected return on plan assets(2,243)(2,340)(2,728)
Amortization of net loss201 914 1,688 
Amortization of prior service cost349 177 177 
Net periodic benefit cost$8,287 $8,308 $8,072 
Curtailment(2,205)(1)(24)
Total Net periodic benefit cost$6,082 $8,307 $8,048 
The accumulated benefit obligation (“ABO”) for our domestic defined benefit pension plans was $163.4 million and $171.6 million at 2024 and 2023, respectively. The ABO for our foreign defined benefit pension plans was $80.2 million and $80.1 million at December 31, 2024 and 2023, respectively.
The following table provides the projected benefit obligation (“PBO”), ABO, and fair value of plan assets for all pension plans with an ABO in excess of plan assets as of December 31, 2024 and 2023.
Domestic PlansForeign Plans
2024202320242023
Projected benefit obligation$14,172 $14,806 $77,645 $56,881 
Accumulated benefit obligation12,412 12,156 54,460 40,312 
Fair value of plan assets— — 41,238 29,372 
The following table provides the PBO, ABO and fair value of plan assets for all pension plans with a PBO in excess of plan assets as of December 31, 2024 and 2023.
Domestic PlansForeign Plans
2024202320242023
Projected benefit obligation$14,172 $14,806 $81,273 $81,534 
Accumulated benefit obligation12,412 12,156 57,494 56,969 
Fair value of plan assets— — 44,676 47,544 
Assumptions:
Domestic PlansForeign Plans
202420232022202420232022
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate5.60 %4.95 %5.15 %3.33 %3.20 %3.69 %
Rate of compensation increase3.24 %3.24 %3.20 %3.21 %3.20 %3.21 %
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate4.95 %5.15 %2.75 %3.32 %3.69 %1.20 %
Expected long-term return on plan assets7.00 %7.00 %7.00 %3.22 %3.23 %3.53 %
Rate of compensation increase3.24 %3.20 %3.17 %3.21 %3.20 %3.20 %
We develop the expected long-term rate of return assumptions based on historical experience and by evaluating input from the plans’ asset managers, including the managers’ review of asset class return expectations and benchmarks, economic indicators and long-term inflation assumptions.
In order to determine the 2025 net periodic benefit cost, we expect to use the December 31, 2024 discount rates, December 31, 2024 rates of compensation increase assumptions and the same assumed long-term returns on domestic and foreign plan assets used for the 2024 net periodic benefit cost.
Our domestic and foreign pension plan weighted-average asset allocations at December 31, 2024 and 2023 by asset category are as follows:
Plan Assets:
Domestic Plans Assets at December 31,Foreign Plans Assets at December 31,
2024202320242023
Equity securities50 %48 %3 %3 %
Fixed income securities25 %27 %1 %1 %
Corporate debt securities— — 2 %1 %
Infrastructure8 %8 %— — 
Hedge funds11 %11 %— — 
Money market2 %1 %— %1 %
Investment Funds— — 94 %94 %
Real estate4 %5 %— — 
Total100 %100 %100 %100 %
Our investment strategy for our domestic and foreign pension plans is to maximize the long-term rate of return on plan assets within an acceptable level of risk. The investment policy strives to have assets sufficiently diversified so that adverse or unexpected results from one security type will not have an unduly detrimental impact on the entire portfolio and accordingly, establishes a target allocation for each asset category within the portfolio. The domestic plan asset allocation is reviewed on a quarterly basis and the foreign plan asset allocation is reviewed annually. Rebalancing occurs as needed to comply with the investment strategy. The domestic plan target allocation for 2025 is 63% equity securities and 37% fixed income securities and infrastructure. The foreign plan target allocation for 2025 is 100% investment funds.
Authoritative guidelines require the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:
•Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.
•Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
Domestic Fair Value Measurement at December 31, 2024Foreign Fair Value Measurement at December 31, 2024
(In Thousands $)Total(Level 1)(Level 2)(Level 3)Total(Level 1)(Level 2)(Level 3)
Cash and Short-term Securities (a)$3,054 $3,054 $— $— $275 $275 $— $— 
USD— 3,054 — — — — — — 
EUR— — — — — 269 — — 
Others— — — — — 6 — — 
Equity Securities (a)$78,234 $78,234 $— $— $1,873 $1,873 $— $— 
U.S. Large Cap Equities— 45,294 — — — — — — 
U.S. Small Cap Equities— 10,363 — — — — — — 
International Equities— 22,577 — — — 1,873 — — 
Fixed Income (a)(b)$28,526 $28,526 $— $— $562 $562 $— $— 
Corporate debts securities$— $— $— $— $1,213 $1,213 $— $— 
Euro Corporate Bonds (a)— — — — — 1,213 — — 
Investment Funds$— $— $— $— $67,327 $24,377 $42,950 $— 
Mutual Funds in Equities (a)— — — — — 5,781 — — 
Mutual Funds in Bonds (a)— — — — — 14,634 — — 
Mutual Funds Diversified (a)(b)— — — — — 3,962 42,950 — 
Total Investments in Fair Value Hierarchy$109,814 $109,814 $— $— $71,250 $28,300 $42,950 $— 
Investments at Net Asset Value per Share70,947 — — — — — — — 
Total Investments$180,761 $109,814 $— $— $71,250 $28,300 $42,950 $— 
Domestic Fair Value Measurement at December 31, 2023Foreign Fair Value Measurement at December 31, 2023
(In Thousands $)Total(Level 1)(Level 2)(Level 3)Total(Level 1)(Level 2)(Level 3)
Cash and Short-term Securities (a)$1,949 $1,949 $— $— $514 $514 $— $— 
USD— 1,949 — — — — — — 
EUR— — — — — 506 — — 
Others— — — — — 8 — — 
Equity Securities (a)$73,483 $73,483 $— $— $2,106 $2,106 $— $— 
U.S. Large Cap Equities— 43,156 — — — — — — 
U.S. Small Cap Equities— 8,864 — — — — — — 
International Equities— 21,463 — — — 2,106 — — 
Fixed Income (a)(b)$29,171 $29,171 $— $— $831 $831 $— $— 
Corporate debts securities$— $— $— $— $1,231 $1,231 $— $— 
Euro Corporate Bonds (a)— — — — — 1,231 — — 
Investment Funds$— $— $— $— $67,752 $23,513 $44,239 $— 
Mutual Funds in Equities (a)— — — — — 5,411 — — 
Mutual Funds in Bonds (a)— — — — — 17,256 — — 
Mutual Funds Diversified (a)(b)— — — — — 846 44,239 — 
Total Investments in Fair Value Hierarchy$104,603 $104,603 $— $— $72,434 $28,195 $44,239 $— 
Investments at Net Asset Value per Share69,132 — — — — — — — 
Total Investments$173,735 $104,603 $— $— $72,434 $28,195 $44,239 $— 
(a)Based on third party quotation from financial institution.
(b)Based on observable market transactions.
Contributions
Annual cash contributions to fund pension costs accrued under our domestic plans are generally at least equal to the minimum funding amounts required by ERISA. We contributed $0.5 million SERP plans in 2024 and although we have no minimum funding requirement, we plan to contribute approximately $10.0 million and $0.5 million to pay our domestic defined benefit plans and SERP plans, respectively, in 2025. Contributions to fund pension costs accrued under our foreign plans are made in accordance with local laws or at our discretion. We contributed approximately $3.6 million to our foreign defined benefit plan in 2024 and expect to contribute approximately $0.8 million in 2025.
Estimated Future Benefit Payments
As of December 31, 2024, we expect the plans to make the following estimated benefit payments relating to our defined benefit plans over the next 10 years:
Domestic PlansForeign Plans
2025$10,191 $5,557 
202610,932 3,027 
202710,764 4,305 
202811,915 4,874 
202913,139 6,066 
2030 - 203472,913 39,041 
Other Plans
We have a non-qualified supplemental pension plan for domestic employees which provides for pension amounts that would have been payable from our principal domestic pension plan if it were not for limitations imposed by income tax regulations. The liability for this plan, which is not funded, was $14.2 million and $14.8 million at December 31, 2024 and 2023, respectively. This amount is included in the liability for domestic plans shown above.
We have a defined contribution 401(k) employee savings plan ("401(k) plan") available to substantially all domestic employees. Company matching contributions are made in cash up to a maximum of 3% of the participating employee’s salary subject to income tax regulations. For each of the years ended December 31, 2024, 2023 and 2022, total contributions made to these plans were approximately $5.0 million, $5.0 million and $5.0 million, respectively. As discussed above, domestic employees hired after December 31, 2020 will no longer be eligible for the pension plans and will instead receive an annual Aptar Retirement Savings Account contribution of 5% of their eligible earnings in the 401(k) plan. For the years ended December 31, 2024, 2023 and 2022, total contributions for these eligible employees was approximately $3.3 million, $2.7 million and $2.0 million, respectively.
We have several foreign defined contribution plans, which require us to contribute a percentage of the participating employee’s salary according to local regulations. For each of the years ended December 31, 2024, 2023 and 2022, total contributions made to these plans were approximately $3.0 million, $3.1 million and $2.9 million, respectively.
We have no additional postretirement or postemployment benefit plans.