v3.25.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Defined Benefit Plans

The Company sponsors pay related benefit plans for employees in the U.S., U.K., Germany, Brazil, France, Mexico, Japan, and Canada. Employees in the U.S. and UK are no longer accruing benefits under the Company's defined benefit plans as these plans were frozen. The Company’s defined benefit plans are partially funded with the exception of certain supplemental benefit plans for executives and certain non-U.S. plans, primarily in Germany, which are unfunded.

The Company's expense for all defined benefit pension plans, is as follows:
U.S. PlansNon-U.S. Plans
Year Ended December 31,Year Ended December 31,
(In millions, except percentages)202420232022202420232022
Costs Recognized in Income:
Pension service cost:
  Service cost
$— $— $— $(1)$(1)$(1)
Pension financing benefit (cost):
  Interest cost
(31)(32)(20)(9)(10)(6)
  Expected return on plan assets
41 41 39 10 10 9 
  Amortization of losses and other
— 1 (1)— 1 (1)
  Settlements
(4)— — — — — 
Restructuring related pension cost:
  Special termination benefits
— — — (1)(1)— 
Net pension income (expense)$6 $10 $18 $(1)$(1)$1 
Weighted Average Assumptions:
Discount rate
5.16 %5.51 %2.93 %5.07 %5.30 %2.31 %
Compensation increase
NANAN/A2.89 %2.69 %2.30 %
Long-term return on assets
7.23 %6.87 %6.23 %4.79 %4.60 %3.70 %

The Company's total accumulated benefit obligations for all defined benefit plans was $723 million and $818 million as of
December 31, 2024 and 2023, respectively. The benefit plan obligations for employee retirement plans with accumulated benefit obligations in excess of plan assets were as follows:
Year Ended December 31,
(In millions)20242023
Accumulated benefit obligation$594 $671 
Projected benefit obligation$596 $674 
Fair value of plan assets$486 $529 

Assumptions used by the Company in determining its defined benefit pension obligations as of December 31, 2024 and 2023 are summarized in the following table:
U.S. PlansNon-U.S. Plans
Year Ended December 31,Year Ended December 31,
Weighted Average Assumptions2024202320242023
Discount rate5.65 %5.16 %5.82 %5.07 %
Rate of increase in compensationNANA2.58 %2.89 %
Cash balance interest crediting rate4.15 %4.28 %1.60 %1.25 %
The Company’s obligation for all defined benefit pension plans, is as follows:
U.S. PlansNon-U.S. Plans
Year Ended December 31,Year Ended December 31,
(In millions)2024202320242023
Change in Benefit Obligation:
Benefit obligation — beginning
$622 $603 $201 $178 
Service cost
— — 1 1 
Interest cost
31 32 9 10 
Actuarial loss (gain)
(25)27 (19)10 
Settlements(40)— (1)(1)
Special termination benefits
— — (1)1 
Foreign exchange translation
— — (11)10 
Benefits paid and other
(36)(40)(5)(8)
Benefit obligation — ending
$552 $622 $174 $201 
Change in Plan Assets:
Plan assets — beginning
$509 $532 $172 $157 
Actual return on plan assets
19 17 (6)8 
Sponsor contributions
19 — 7 7 
Settlements
(40)— (1)(1)
Foreign exchange translation
— — (8)9 
Benefits paid and other
(35)(40)(7)(8)
Plan assets — ending
$472 $509 $157 $172 
Total funded status at end of period
$(80)$(113)$(17)$(29)
Balance Sheet Classification:
Other non-current assets
— $— $12 $3 
 Accrued employee liabilities
— — (1)(1)
Employee benefits
(80)(113)(28)(31)
Accumulated other comprehensive loss:
Actuarial loss
57 65 27 32 
Tax effects/other
(9)(11)(9)(10)
$48 $54 $18 $22 

During the year ended December 31, 2024, the Company offered terminate vested participants of the U.S. defined benefit plans a discretionary lump sum distribution option. The amount of participant lump sum distributions amounted to $38 million.

Components of the net change in AOCI related to all defined benefit pension plans, exclusive of amounts attributable to non-controlling interests on the Company’s Consolidated Statements of Changes in Equity for the years ended December 31, 2024 and 2023, are as follows:
U.S. PlansNon-U.S. Plans
Year Ended December 31,Year Ended December 31,
(In millions)2024202320242023
Actuarial (gain) loss$(4)$50 $(4)$13 
Deferred taxes2 (11)2 (4)
Currency/other— — (1)2 
Reclassification to net income— 1 — 1 
Settlements(4)— (1)(1)
$(6)$40 $(4)$11 
Actuarial loss for the year ended December 31, 2024 is primarily related to a decrease in discount rates partially offset by an increase in return on assets. Actuarial gains and losses are amortized using the 10% corridor approach representing 10% times the greater of plan assets or the projected benefit obligation. Generally, the expected return is determined using a market-related
value of assets where gains (losses) are recognized in a systematic manner over five years. For less significant plans, fair value is used.

Benefit payments, which reflect expected future service, are expected to be paid by the Company plans as follows:
(In millions)
U.S. Plans
Non-U.S. Plans
2025$39 $8 
202640 7 
202740 8 
202841 10 
202941 10 
Years 2030 - 2034210 55 

During the year ended December 31, 2024, cash contributions to the Company's defined benefit plans were $19 million related to its U.S. plans and $7 million related to its non-U.S. plans. Additionally, the Company expects to make contributions to its US and non-US defined benefit pension plans of $4 million and $8 million, respectively during 2025.

Substantially all of the Company’s defined benefit pension plan assets are managed by external investment managers and held in trust by third-party custodians. The selection and oversight of these external service providers is the responsibility of the investment committees of the Company and their advisers. The selection of specific securities is at the discretion of the investment manager and is subject to the provisions set forth by written investment management agreements and related policy guidelines regarding permissible investments, risk management practices, and the use of derivative securities. Derivative securities may be used by investment managers as efficient substitutes for traditional securities, to reduce portfolio risks, or to hedge identifiable economic exposures. The use of derivative securities to engage in unrelated speculation is expressly prohibited.

The primary objective of the pension funds is to pay the plans’ benefit and expense obligations when due. Given the long-term nature of these plan obligations and their sensitivity to interest rates, the investment strategy is intended to improve the funded status of its U.S. and non-U.S. plans over time while maintaining a prudent level of risk. Risk is managed primarily by diversifying each plan’s target asset allocation across equity, fixed income securities, and alternative investment strategies, and then maintaining the allocation within a specified range of its target. In addition, diversification across various investment subcategories within each plan is also maintained within specified ranges.

The Company’s retirement plan asset allocation as of December 31, 2024 and 2023 and target allocation for 2025 are as follows:
Target AllocationPercentage of Plan Assets
U.S.Non-U.S.U.S.Non-U.S.
202520252024202320242023
Equity securities38 %13 %37 %30 %14 %10 %
Fixed income28 %65 %12 %17 %64 %65 %
Alternative strategies33 %— %48 %51 %8 %11 %
Cash1 %2 %3 %2 %3 %3 %
Other— %20 %— %— %11 %11 %
100 %100 %100 %100 %100 %100 %

The expected long-term rate of return for defined benefit pension plan assets was selected based on various inputs, including returns projected by various external sources for the different asset classes held by and to be held by the Company’s trusts and its targeted asset allocation. These projections incorporate both historical returns and forward-looking views regarding capital market returns, inflation, and other variables. Pension plan assets are valued at fair value using various inputs and valuation techniques. A description of the inputs and valuation techniques used to measure the fair value for each class of plan assets is included in Note 17, "Fair Value Measurements."
Discount Rate for Estimated Service and Interest Cost
The Company uses the spot rate method to estimate the service and interest components of net periodic benefit cost for pension benefits for its U.S. and certain non-U.S. plans. The Company has elected to utilize an approach that discounts individual expected cash flows underlying interest and service costs using the applicable spot rates derived from the yield curve used to determine the benefit obligation to the relevant projected cash flows. The discount rate assumption is based on market rates for a hypothetical portfolio of high-quality corporate bonds rated Aa or better with maturities closely matched to the timing of projected benefit payments for each plan at its annual measurement date. The Company used discount rates ranging from 2% to 11% to determine its pension and other benefit obligations as of December 31, 2024.
Defined Contribution Plans

Most U.S. salaried employees and certain non-U.S. employees are eligible to participate in defined contribution plans by contributing a portion of their compensation which is partially matched by the Company. Matching contributions for the U.S. defined contribution plan are 100% on the first 6% of pay contributed. The expense related to all defined contribution plans was approximately $6 million in 2024, $6 million in 2023, and $3 million in 2022.