v3.24.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans

12. EMPLOYEE BENEFIT PLANS

Defined Contribution Plans

The Company and certain of its subsidiaries have defined contribution retirement savings plans, the most significant of which is a 401(k) plan in the U.S. These plans allow employees meeting certain requirements to contribute a portion of their compensation on a pretax and/or after-tax basis in accordance with guidelines established by the plans and the Internal Revenue Service or other tax authorities. The Company matches a percentage of the employee contributions up to certain limits. During the years ended December 31, 2023, 2022 and 2021, the Company made contributions to defined contribution retirement savings plans of $27.9 million, $48.1 million and $49.0 million, respectively. The Company temporarily paused its employer contribution as of July 1, 2023 and incurred no expenses for contributions through the end of 2023.

The Company also maintains noncontributory and contributory deferred compensation plans. During the years ended December 31, 2023, 2022 and 2021, the Company recognized pretax costs (benefits) of $2.1 million, $(2.7) million and $1.3 million, respectively, related to these plans. The liability related to these plans was $22.7 million and $22.5 million as of December 31, 2023 and 2022, respectively.

Pension Plans

The Company sponsors defined benefit pension plans covering certain active and former domestic and foreign employees. Both funded and unfunded plans are included in the defined benefit pension plans. The following table summarizes information for the defined benefit pension plans:

 

 

December 31,

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation, beginning

 

$

9.4

 

 

$

12.5

 

 

$

183.3

 

 

$

275.5

 

Service cost

 

 

—

 

 

 

—

 

 

 

5.6

 

 

 

5.7

 

Interest cost

 

 

0.4

 

 

 

0.3

 

 

 

7.9

 

 

 

3.7

 

Actuarial loss (gain)

 

 

0.4

 

 

 

(2.6

)

 

 

2.2

 

 

 

(68.7

)

Benefits paid

 

 

(0.8

)

 

 

(0.8

)

 

 

(4.1

)

 

 

(4.5

)

Settlements

 

 

—

 

 

 

—

 

 

 

(9.7

)

 

 

(6.2

)

Curtailment

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

—

 

Foreign exchange and other

 

 

—

 

 

 

—

 

 

 

7.1

 

 

 

(22.2

)

Benefit obligation, ending

 

$

9.4

 

 

$

9.4

 

 

$

192.2

 

 

$

183.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning

 

$

—

 

 

$

—

 

 

$

181.2

 

 

$

279.4

 

Employer and plan participant contributions

 

 

0.8

 

 

 

0.8

 

 

 

7.3

 

 

 

6.4

 

Return on plan assets

 

 

—

 

 

 

—

 

 

 

7.6

 

 

 

(69.9

)

Benefits paid

 

 

(0.8

)

 

 

(0.8

)

 

 

(4.1

)

 

 

(4.5

)

Settlements

 

 

—

 

 

 

—

 

 

 

(9.7

)

 

 

(6.2

)

Foreign exchange and other

 

 

—

 

 

 

—

 

 

 

7.1

 

 

 

(24.0

)

Fair value of plan assets, ending

 

$

—

 

 

$

—

 

 

$

189.4

 

 

$

181.2

 

Funded status, net liability

 

$

9.4

 

 

$

9.4

 

 

$

2.8

 

 

$

2.1

 

The following table presents the balance sheet location of the Company's pension liabilities and assets:

 

 

December 31,

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Accrued and other liabilities

 

$

(0.9

)

 

$

(0.9

)

 

$

(0.9

)

 

$

(0.7

)

Other noncurrent liabilities

 

 

(8.5

)

 

 

(8.5

)

 

 

(16.5

)

 

 

(15.3

)

Other noncurrent assets

 

 

 

 

 

—

 

 

 

14.6

 

 

 

13.9

 

The accumulated benefit obligation for the Company’s U.S. defined benefit pension plans was $9.4 million for both periods as of December 31, 2023 and 2022, and the accumulated benefit obligation for the Company’s non-U.S. defined benefit pension plans was $181.5 million and $159.9 million as of December 31, 2023 and 2022, respectively.

The following table summarizes information for the Company’s pension plans with an accumulated benefit obligation in excess of plan assets:

 

 

December 31,

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Projected benefit obligation

 

$

9.4

 

 

$

9.4

 

 

$

46.7

 

 

$

44.1

 

Accumulated benefit obligation

 

 

9.4

 

 

 

9.4

 

 

 

44.2

 

 

 

41.3

 

Fair value of plan assets

 

 

—

 

 

 

—

 

 

 

29.4

 

 

 

28.4

 

 

The following table summarizes pretax amounts included in accumulated other comprehensive loss:

 

 

December 31,

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Unrecognized net actuarial gain (loss)

 

$

0.6

 

 

$

1.0

 

 

$

(17.8

)

 

$

(16.5

)

Unrecognized prior service cost

 

 

—

 

 

 

—

 

 

 

0.5

 

 

 

—

 

Total

 

$

0.6

 

 

$

1.0

 

 

$

(17.3

)

 

$

(16.5

)

 

Actuarial gains and losses are amortized using a corridor approach. The corridor is equal to 10% of the greater of the benefit obligation and the fair value of the assets. Gains and losses in excess of the corridor are generally amortized over the average remaining life of the plan participants. Pretax amounts for net periodic benefit cost and other amounts included in other comprehensive income (loss) for the defined benefit pension plans consisted of the following components:

 

 

Year Ended December 31,

 

 

 

U.S. Plans

 

 

Non-U.S. Plans

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Service cost

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5.6

 

 

$

5.7

 

 

$

6.8

 

Interest cost

 

 

0.4

 

 

 

0.3

 

 

 

0.3

 

 

 

7.9

 

 

 

3.7

 

 

 

3.1

 

Recognized actuarial loss

 

 

—

 

 

 

0.1

 

 

 

0.1

 

 

 

0.6

 

 

 

0.1

 

 

 

1.6

 

Expected return on plan assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7.2

)

 

 

(4.9

)

 

 

(6.4

)

Settlement loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.9

 

 

 

1.6

 

 

 

0.3

 

Curtailment gain

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

(2.5

)

Net periodic benefit cost

 

$

0.4

 

 

$

0.4

 

 

$

0.4

 

 

$

7.7

 

 

$

6.2

 

 

$

2.9

 

Changes in plan assets and benefit obligations
    included in other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrecognized net actuarial loss (gain)

 

$

0.4

 

 

$

(2.7

)

 

$

(0.6

)

 

$

1.3

 

 

$

2.9

 

 

$

(28.0

)

Change in unrecognized prior service cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.5

)

 

 

(0.1

)

 

 

(0.4

)

Curtailment and settlements

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1.8

)

Total included in other comprehensive income (loss)

 

$

0.4

 

 

$

(2.7

)

 

$

(0.6

)

 

$

0.8

 

 

$

2.8

 

 

$

(30.2

)

Total recognized in net periodic benefit cost and
    included in other comprehensive income (loss)

 

$

0.8

 

 

$

(2.3

)

 

$

(0.2

)

 

$

8.5

 

 

$

9.0

 

 

$

(27.3

)

 

The Company reports the service cost component of net periodic benefit cost in the same line item as other compensation costs arising from the services rendered by the employee and records the other components of net periodic benefit cost in other income (expense), net.

Assumptions

Significant weighted average assumptions used in determining benefit obligations and net periodic benefit cost are as follows:

 

 

U.S. Plans

 

 

 

Non-U.S. Plans

 

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

 

Benefit obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.77

 

%

 

 

4.99

 

%

 

 

2.55

 

%

 

 

4.01

 

%

 

 

4.37

 

%

 

 

1.47

 

%

Rate of compensation increase

 

 

—

 

%

 

 

—

 

%

 

 

—

 

%

 

 

3.31

 

%

 

 

3.36

 

%

 

 

3.79

 

%

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.99

 

%

 

 

2.55

 

%

 

 

2.07

 

%

 

 

4.37

 

%

 

 

1.47

 

%

 

 

1.02

 

%

Rate of return on plan assets

 

 

—

 

%

 

 

—

 

%

 

 

—

 

%

 

 

4.57

 

%

 

 

4.03

 

%

 

 

1.96

 

%

Rate of compensation increase

 

 

—

 

%

 

 

—

 

%

 

 

—

 

%

 

 

3.36

 

%

 

 

3.79

 

%

 

 

3.59

 

%

 

The Company considered the available yields on high-quality fixed-income investments with maturities corresponding to the Company’s expected benefit obligations to determine the discount rates at each measurement date.

Plan Assets

In developing the expected rate of return on plan assets, the Company considered the expected long-term rate of return on individual asset classes. Expected return on plan assets is based on the market value of the assets. The majority of the non-U.S. pension assets are managed by independent investment advisors. In general, the investment strategy is designed to accumulate a diversified portfolio among markets, asset classes or individual securities in order to reduce market risk and assure that the pension assets are available to pay benefits as they come due.

Mutual funds classified as Level 1 are valued at net asset value, which is based on the fair value of the funds’ underlying securities. Certain mutual funds are classified as Level 2 because a portion of the funds’ underlying assets are valued using significant other observable inputs. Other assets are primarily composed of fixed income investments (including insurance and real estate products) and are valued based on the investment’s stated rate of return, which approximates market interest rates.

The Company had no U.S. defined benefit pension plan assets as of December 31, 2023 or 2022. The estimated fair values and the valuation input levels of the Company’s non-U.S. defined benefit pension plan assets are as follows:

 

 

 

December 31, 2023

 

 

 

Non-U.S. Plans

 

 

 

Level 1
Fair Value

 

 

Level 2
Fair Value

 

Mutual funds:

 

 

 

 

 

 

International equity

 

$

30.6

 

 

$

—

 

International debt

 

 

30.6

 

 

 

95.1

 

Other

 

 

3.0

 

 

 

30.1

 

Total

 

$

64.2

 

 

$

125.2

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

Non-U.S. Plans

 

 

 

Level 1
Fair Value

 

 

Level 2
Fair Value

 

Mutual funds:

 

 

 

 

 

 

International equity

 

$

19.7

 

 

$

7.7

 

International debt

 

 

36.8

 

 

 

76.0

 

Absolute return

 

 

—

 

 

 

3.8

 

Other

 

 

7.7

 

 

 

29.5

 

Total

 

$

64.2

 

 

$

117.0

 

 

Expected Cash Flows

The Company expects to contribute $0.9 million to U.S. defined benefit pension plans and $4.9 million to non-U.S. defined benefit pension plans during 2024.

The following table summarizes projected benefit payments from pension plans through 2033, including benefits attributable to estimated future service (in millions):

 

U.S. Plans

 

 

Non-U.S. Plans

 

2024

$

0.9

 

 

$

17.1

 

2025

 

0.9

 

 

 

10.1

 

2026

 

0.9

 

 

 

14.2

 

2027

 

0.8

 

 

 

11.4

 

2028

 

0.8

 

 

 

11.0

 

2029-2033

 

3.7

 

 

 

61.4