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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plans The Company and its subsidiaries maintain defined contribution savings plans covering the majority of its employees. Under the plans, eligible participants may elect to contribute a specified percentage of their salaries and the Company makes matching contributions, each subject to certain limitations. The plans provide tax-deferred amounts for each participant, consisting of employee elective contributions, company matching and discretionary company contributions. Company matching contributions are 100% on the first 1% contributed and 50% on the next 4% contributed for eligible participants. Expenses for company contributions under these plans totaled $81 million, $78 million, and $79 million for the years ended December 31, 2024, 2023 and 2022, respectively. Defined Benefit Plans The Company maintains frozen noncontributory defined benefit pension plans (collectively, the “Plans”) covering certain of its employees in the United Kingdom (“U.K.”), U.S., Germany and Austria, which provide benefits to eligible employees based on an employee’s average final compensation and years of service. Effective September 30, 2023, the Company terminated its U.K. and U.S. defined benefit pension plans. In March 2024, the Company entered into a group annuity insurance contract to provide for the administration of future payments to eligible plan participants of the terminated U.K. plan. In connection with the buy-in of this insurance policy, the plan’s projected benefit obligation was remeasured to the value of the group annuity insurance contract, resulting in an unrecognized loss, net of tax, of approximately $63 million recorded in accumulated other comprehensive loss within the consolidated balance sheet. Upon the settlement of the terminated plans, which was completed in the fourth quarter of 2024, the Company funded a plan termination liability shortfall for the U.S. defined benefit pension plans of $20 million and recognized a non-cash pre-tax pension settlement charge for the U.K. and U.S. terminated defined benefit pension plans of $147 million. The settlement charge, which includes $15 million of surplus excise tax and other administrative costs, was recorded within other expense, net in the consolidated statement of income. Qualifying participants of the terminated plans were provided with election options as to how and when to receive their accrued benefits, such as an immediate one-time lump sum payment or monthly annuity. The amount of accrued vested benefits to be received by participants was not impacted by the terminations of the plans. Funded Status The following table provides a reconciliation of benefit obligations, plan assets and the funded status of the Plans as of and for the years ended December 31:
|  | U.K. Plan |  | U.S. and Other Plans
(In millions) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Change in projected benefit obligations: |  |  |  |  |  |  |  |
Balance at beginning of year |  | $ | (445) |  |  | $ | (418) |  |  | $ | (164) |  |  | $ | (169) |
Interest cost |  | (21) |  |  | (21) |  |  | (8) |  |  | (8) |
Actuarial loss |  | (25) |  |  | (5) |  |  | (1) |  |  | (1) |
Benefits paid |  | 25 |  |  | 26 |  | 12 |  |  | 14 |
Foreign currency translation |  | 2 |  |  | (27) |  |  | — |  |  | — |
Settlement of terminated plans |  | 464 |  |  | — |  |  | 147 |  |  | — |
Balance at end of year |  | $ | — |  |  | $ | (445) |  |  | $ | (14) |  |  | $ | (164) |
Change in fair value of plan assets: |  |  |  |  |  |  |  |
Balance at beginning of year |  | $ | 589 |  |  | $ | 570 |  |  | $ | 124 |  |  | $ | 130 |
Actual return on plan assets |  | (44) |  |  | 8 |  |  | 7 |  |  | 8 |
Company contribution |  | — |  |  | — |  |  | 28 |  |  | — |
Benefits paid |  | (25) |  |  | (26) |  |  | (12) |  |  | (14) |
Foreign currency translation |  | (3) |  |  | 37 |  |  | — |  |  | — |
Settlement of terminated plans |  | (464) |  |  | — |  |  | (147) |  |  | — |
Balance at end of year |  | $ | 53 |  |  | $ | 589 |  |  | $ | — |  |  | $ | 124 |
Funded status of the plans (1) |  | $ | 53 |  |  | $ | 144 |  |  | $ | (14) |  |  | $ | (40) |
(1)The Company expects to receive an approximate $40 million refund (net of excise tax) of residual surplus in the first quarter of 2025 related the terminated U.K. defined benefit pension plan. Projected Benefit Obligations The Company records amounts relating to Plan obligations and their associated expenses based on calculations which include actuarial assumptions, including the discount rate and the expected rate of return on plan assets. Changes in any of the assumptions and the amortization of differences between the assumptions and actual experience affect the amount of pension expense in future periods. The Company reviewed its actuarial assumptions at least annually and modified the assumptions based on then-current rates and trends, as appropriate. The effects of modifications were recognized immediately within the consolidated balance sheets, and were generally amortized to operating income over future periods, with the deferred amount recorded in accumulated other comprehensive loss within the consolidated balance sheets. The Company’s funding policy was to contribute quarterly an amount as recommended by the Plans’ independent actuaries. The Company employed a building block approach in determining the expected long-term rate of return for plan assets with proper consideration of diversification and re-balancing. Historical markets were studied and long-term historical relationships between equities and fixed-income securities were preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates were evaluated before long-term capital market assumptions were determined. Peer data and historical returns were reviewed to check for reasonableness and appropriateness. The weighted-average rate assumptions used in the measurement of the Company’s projected benefit obligations and net periodic benefit expense as of and for the years ended December 31 were as follows:
|  | Projected Benefit Obligations |  | Net Periodic Benefit Expense
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Discount rate |  | 3.31 | % |  | 4.81 | % |  | 4.81 | % |  | 5.01 | %
Expected long-term return on plan assets |  | n/a |  | n/a |  | 4.10 | % |  | 4.74 | %
Plan Assets Prior to its termination, the Company’s investment strategy for the U.K. plan was to allocate the assets into two pools: (i) liability-hedging assets whereby the focus was risk management, protection and insurance relative to the liability target invested in, but not limited to, money market funds, debt, U.K. government bonds and U.K. government index-linked bonds; and (ii) return-seeking assets whereby the focus was on return generation and taking risk in a controlled manner. Such assets included equities, government bonds, high-yield bonds, property, commodities or hedge funds. Prior to their termination, the Company’s investment strategy for the U.S. plans employed a total return investment approach whereby a diversified blend of equities and fixed-income investments were used to maximize the long-term return of plan assets for a prudent level of risk. The Company set an allocation mix necessary to support the underlying plan liabilities as influenced significantly by the demographics of the participants and the frozen nature of the plans. Upon termination of these defined benefit pension plans, a modified investment allocation strategy was adopted for purposes of protecting the funded status of the respective plan assets subsequent to such terminations. The assets of the respective plans were invested exclusively in liability-hedging assets. Investment risk was measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and periodic asset and liability studies. The residual surplus assets carried and measured at fair value within the terminated U.K. plan at December 31, 2024 included $53 million of cash and cash equivalents (Level 1). The following table sets forth assets carried and measured at fair value on a recurring basis for the Plans at December 31, 2023:
(In millions) | Level 1 |  | Level 2 |  | Level 3
Cash and cash equivalents (1) | $ | 27 |  |  | $ | — |  |  | $ | — |
Equity securities (2) | — |  |  | — |  |  | — |
Fixed income securities (3) | 312 |  |  | — |  |  | — |
Other investments (4) | 269 |  |  | 6 |  |  | — |
Total investments at fair value | $ | 608 |  |  | $ | 6 |  |  | $ | — |
(1)Cash and cash equivalents include highly liquid investments in money market funds. (2)Equity securities primarily consist of domestic, international and global equity pooled funds. (3)Fixed income securities primarily consist of debt securities issued by U.S. and foreign government agencies and debt obligations issued by a variety of private and public corporations. (4)Other investments primarily consist of index-linked government bonds, derivatives and other investments. In addition to the investments presented within the fair value hierarchy table above, the Plans’ assets included investments in various collective trusts that were measured at fair value using the net asset value per share (or its equivalent) practical expedient. Such investments totaled $99 million at December 31, 2023. Net Periodic Benefit Cost The components of net periodic benefit cost (income) were as follows:
|  | Year Ended December 31,
(In millions) |  | 2024 |  | 2023 |  | 2022
Interest cost |  | $ | 29 |  |  | $ | 29 |  |  | $ | 17 |
Expected return on plan assets |  | (24) |  |  | (26) |  |  | (18) |
Net periodic benefit expense (income) |  | $ | 5 |  |  | $ | 3 |  |  | $ | (1) |

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