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Retirement Plans and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Retirement Plans and Other Postretirement Benefits Retirement Plans and Other Postretirement Benefits
Retirement and Pension Plans
The Company sponsors several retirement and pension plans covering eligible salaried and hourly employees. The plans generally provide benefits based on participants’ years of service and/or compensation. The following is a brief description of the Company’s retirement and pension plans.
The Company maintains contributory and non-contributory defined benefit pension plans. Benefits for eligible salaried and hourly employees under all defined benefit plans are funded through trusts established in conjunction with the plans. The Company’s funding policy with respect to its defined benefit plans is to contribute amounts that provide for benefits based on actuarial calculations and the applicable requirements of U.S. federal and local foreign laws. The Company estimates that it will make both required and discretionary cash contributions of approximately $7 million to $10 million to its worldwide defined benefit pension plans in 2025.
The Company uses a measurement date of December 31 (its fiscal year end) for its U.S. and foreign defined benefit pension plans.
The Company sponsors a 401(k) retirement and savings plan for eligible U.S. employees. Participants in the retirement and savings plan may contribute a specified portion of their compensation on a pre-tax basis, Roth basis, or after-tax basis, which varies by location. The Company matches employee contributions ranging from 33% to 100%, up to a maximum percentage ranging from 1% to 8% of eligible compensation or up to a maximum of $1,200 per participant in some locations.
The Company’s retirement and savings plan has a defined contribution retirement feature principally to cover U.S. salaried employees joining the Company after December 31, 1996. Under the retirement feature, the Company makes contributions for eligible employees based on a pre-established percentage of the covered employee’s salary subject to pre-established vesting. Employees of certain of the Company’s foreign operations participate in various local defined contribution plans.
The Company has non-qualified unfunded retirement plans for certain Directors and retired employees. It also provides supplemental retirement benefits, through contractual arrangements and/or a Supplemental Executive Retirement Plan (“SERP”) covering certain current and former executives of the Company. These supplemental benefits are designed to compensate the executive for retirement benefits that would have been provided under the Company’s primary retirement plan, except for statutory limitations on compensation that must be taken into account under those plans. The plan permits deferred amounts to be deemed invested in either, or a combination of, an interest-bearing account, phantom mutual fund or collective investment trust accounts or the equivalent of a fund which invests in shares of the Company’s common stock on behalf of the employee. The amount owed to participants is an unfunded and unsecured general obligation which is payable out of either the general assets of the Company or a grant of shares of the Company's common stock upon retirement or termination. The Company is providing for these obligations by charges to earnings over the applicable periods.
The following tables set forth the changes in net projected benefit obligation and the fair value of plan assets for the funded and unfunded defined benefit plans for the years ended December 31:
U.S. Defined Benefit Pension Plans:
20242023
(In thousands)
Change in projected benefit obligation:
Net projected benefit obligation at the beginning of the year$366,248 $383,143 
Service cost1,177 1,205 
Interest cost18,998 20,840 
Actuarial (gains) losses(10,115)10,229 
Gross benefits paid(30,000)(49,169)
Net projected benefit obligation at the end of the year$346,308 $366,248 
Change in plan assets:
Fair value of plan assets at the beginning of the year$599,886 $569,049 
Actual return on plan assets46,900 79,366 
Employer contributions650 640 
Gross benefits paid(30,000)(49,169)
Fair value of plan assets at the end of the year$617,436 $599,886 
Foreign Defined Benefit Pension Plans:
20242023
(In thousands)
Change in projected benefit obligation:
Net projected benefit obligation at the beginning of the year$215,482 $198,744 
Service cost1,623 1,615 
Interest cost9,087 9,369 
Foreign currency translation adjustments(5,162)10,312 
Actuarial (gains) losses(18,872)7,575 
Expenses paid from assets(579)(552)
Gross benefits paid(10,776)(11,581)
Net projected benefit obligation at the end of the year$190,803 $215,482 
Change in plan assets:
Fair value of plan assets at the beginning of the year$174,443 $159,592 
Actual return on plan assets(2,327)10,132 
Employer contributions8,044 8,031 
Foreign currency translation adjustments(3,038)8,821 
Expenses paid from assets(579)(552)
Gross benefits paid(10,776)(11,581)
Fair value of plan assets at the end of the year$165,767 $174,443 
The projected benefit obligation assumptions impacting net actuarial losses (gains) primarily consist of changes in discount and mortality rates.
The accumulated benefit obligation consisted of the following at December 31:
U.S. Defined Benefit Pension Plans:
20242023
(In thousands)
Funded plans$339,029 $357,498 
Unfunded plans2,214 2,558 
Total$341,243 $360,056 
Foreign Defined Benefit Pension Plans:
20242023
(In thousands)
Funded plans$155,368 $178,854 
Unfunded plans35,246 36,360 
Total$190,614 $215,214 
Weighted average assumptions used to determine benefit obligations at December 31:
20242023
U.S. Defined Benefit Pension Plans:
Discount rate5.74 %5.38 %
Rate of compensation increase (where applicable)3.75 %3.75 %
Foreign Defined Benefit Pension Plans:
Discount rate5.20 %4.36 %
Rate of compensation increase (where applicable)3.00 %3.00 %
The following is a summary of the fair value of plan assets for U.S. plans at December 31:
20242023
Asset ClassTotalLevel 1Level 2Level 3TotalLevel 1Level 2
(In thousands)
Corporate debt instruments$2,595 $— $2,595 $— $5,295 $— $5,295 
Corporate debt instruments – Preferred18,027 — 18,027 — 16,004 — 16,004 
Corporate stocks – Common56,258 56,258 — — 43,287 43,287 — 
Municipal bonds1,456 — 1,456 — 1,253 — 1,253 
Hedge Funds31,900 — — 31,900 — — — 
Registered investment companies145,380 145,380 — — 169,794 169,794 — 
U.S. Government securities1,141 — 1,141 — 1,262 — 1,262 
Total investments256,757 201,638 23,219 31,900 236,895 213,081 23,814 
Investments measured at net asset value360,679 — — — 362,991 — — 
Total investments$617,436 $201,638 $23,219 $31,900 $599,886 $213,081 $23,814 
U.S. equity securities and global equity securities categorized as level 1 are traded on national and international exchanges and are valued at their closing prices on the last trading day of the year. Some U.S. equity securities and global equity securities are public investment vehicles valued using the Net Asset Value (“NAV”) provided by the fund manager. The NAV is the total value of the fund divided by the number of shares outstanding.
Fixed income securities categorized as level 2 are valued by the trustee using pricing models that use verifiable observable market data, bids provided by brokers or dealers or quoted prices of securities with similar characteristics. Hedge funds are considered level 3 investments as their values are determined by the sponsor using unobservable market data.
The following is a summary of the changes in the fair value of the U.S. plans’ level 3 investments (fair value determined using significant unobservable inputs):
Hedge Funds
(In thousands)
Balance, December 31, 2023$— 
Actual return on assets:
Unrealized losses relating to instruments still held at the end of the year— 
Realized gains (losses) relating to assets sold during the year— 
Purchases, sales, issuances and settlements, net31,900 
Balance, December 31, 2024$31,900 
The expected long-term rate of return on these plan assets was 7.46% in 2024 and 7.59% in 2023. Equity securities included 200,057 shares of AMETEK, Inc. common stock with a market value of $36.1 million (5.8% of total plan investment assets) at December 31, 2024 and 232,710 shares of AMETEK, Inc. common stock with a market value of $38.4 million (6.4% of total plan investment assets) at December 31, 2023.
The objectives of the Company’s U.S. defined benefit plans’ investment strategy are to maximize the plans’ funded status and minimize Company contributions and plan expense. Because the goal is to optimize returns over the long term, an investment policy that favors equity holdings has been established. Since there may be periods of time where both equity and mutual fund markets provide poor returns, an allocation to alternative assets may be made to improve the overall portfolio’s diversification and return potential. The Company periodically reviews its asset allocation, taking into consideration plan liabilities, plan benefit payment streams and the investment strategy of the pension plans. The actual asset allocation is monitored frequently relative to the established targets and ranges and is re-balanced when necessary. The target allocations for the U.S. defined benefits plans are approximately 51% equity securities, 29% fixed income securities and 20% other securities and/or cash.
The equity portfolio is diversified by market capitalization and style. The equity portfolio also includes international components.
The objective of the mutual fund portion of the pension assets is to provide interest rate sensitivity for a portion of the assets and to provide diversification. The mutual fund portfolio is diversified within certain quality and maturity guidelines to minimize the adverse effects of interest rate fluctuations.
Certain investments are prohibited and include venture capital, private placements, unregistered or restricted stock, margin trading, commodities, short selling and rights and warrants. Foreign currency futures, options and forward contracts may be used to manage foreign currency exposure.
The following is a summary of the fair value of plan assets for foreign defined benefit pension plans at December 31:
20242023
Asset ClassTotalLevel 3TotalLevel 3
(In thousands)
Life insurance$10,766 $10,766 $12,619 $12,619 
Total investments10,766 10,766 12,619 12,619 
Investments measured at net asset value155,001 — 161,824 — 
Total investments$165,767 $10,766 $174,443 $12,619 
Life insurance assets are considered level 3 investments as their values are determined by the sponsor using unobservable market data.
Life insurance assets categorized as level 3 are valued based on unobservable inputs and cannot be corroborated using verifiable observable market data. Investments in level 3 funds are redeemable, however, cash reimbursement may be delayed, or a portion held back until asset finalization.
The following is a summary of the changes in the fair value of the foreign plans’ level 3 investments (fair value determined using significant unobservable inputs):
Life Insurance
(In thousands)
Balance, December 31, 2022$13,043 
Actual return on assets:
Unrealized losses relating to instruments still held at the end of the year$(424)
Realized gains (losses) relating to assets sold during the year$— 
Purchases, sales, issuances and settlements, net$— 
Balance, December 31, 2023$12,619 
Actual return on assets:
Unrealized losses relating to instruments still held at the end of the year$(1,853)
Realized gains (losses) relating to assets sold during the year$— 
Purchases, sales, issuances and settlements, net$— 
Balance, December 31, 2024$10,766 
The objective of the Company’s foreign defined benefit plans’ investment strategy is to maximize the long-term rate of return on plan investments, subject to a reasonable level of risk. Liability studies are also performed on a regular basis to provide guidance in setting investment goals with an objective to balance risks against the current and future needs of the plans. The trustees consider the risk associated with the different asset classes, relative to the plans’ liabilities and how this can be affected by diversification, and the relative returns available on equities, mutual fund investments, real estate and cash. Also, the likely volatility of those returns and the cash flow requirements of the plans are considered. It is expected that equities will outperform mutual fund investments over the long term. However, the trustees recognize the fact that mutual fund investments may better match the liabilities for pensioners. Because of the relatively young active employee group covered by the plans and the immature nature of the plans, the trustees have chosen to adopt an asset allocation strategy more heavily weighted toward equity investments. This asset allocation strategy will be reviewed, from time to time, in view of changes in market conditions and in the plans’ liability profile. The target allocations for the foreign defined benefit plans are approximately 23% equity securities, 70% fixed income securities and 7% other securities, insurance or cash.
The assumption for the expected return on plan assets was developed based on a review of historical investment returns for the investment categories for the defined benefit pension assets. This review also considered current capital market conditions and projected future investment returns. The estimates of future capital market returns by asset class are lower than the actual long-term historical returns. Therefore, the assumed rate of return for U.S. plans is 7.13% and 5.78% for foreign plans in 2025.
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets and pension plans with an accumulated benefit obligation in excess of plan assets were as follows at December 31:
U.S. Defined Benefit Pension Plans:
Projected Benefit
Obligation Exceeds
Fair Value of Assets		Accumulated Benefit
Obligation Exceeds
Fair Value of Assets
2024202320242023
(In thousands)
Benefit obligation$2,214 $2,558 $2,214 $2,558 
Fair value of plan assets— — — — 
Foreign Defined Benefit Pension Plans:
Projected Benefit
Obligation Exceeds
Fair Value of Assets		Accumulated Benefit
Obligation Exceeds
Fair Value of Assets
2024202320242023
(In thousands)
Benefit obligation$35,435 $132,796 $35,246 $132,527 
Fair value of plan assets2,316 88,028 2,316 88,028 
The following table provides the amounts recognized in the consolidated balance sheet at December 31:
20242023
(In thousands)
Funded status asset (liability):
Fair value of plan assets$783,203 $774,329 
Projected benefit obligation(537,111)(581,730)
Funded status at the end of the year$246,092 $192,599 
Amounts recognized in the consolidated balance sheet consisted of:
Non-current asset for pension benefits (other assets)$281,425 $239,925 
Current liabilities for pension benefits(2,294)(2,816)
Non-current liability for pension benefits(33,039)(44,510)
Net amount recognized at the end of the year$246,092 $192,599 
The following table provides the amounts recognized in accumulated other comprehensive income, net of taxes, at December 31:
Net amounts recognized:20242023
(In thousands)
Net actuarial loss$162,086 $184,489 
Prior service costs1,519 1,616 
Transition asset1 2 
Total recognized$163,606 $186,107 


The following table provides the components of net periodic pension benefit expense (income) for the years ended December 31:
202420232022
(In thousands)
Defined benefit plans:
Service cost$2,800 $2,820 $4,919 
Interest cost28,085 30,209 20,124 
Expected return on plan assets(54,672)(52,289)(60,104)
Settlement— — (58)
Amortization of:
Net actuarial loss9,619 11,569 8,531 
Prior service costs103 101 100 
Transition asset1 1 1 
Total net periodic benefit income(14,064)(7,589)(26,487)
Other plans:
Defined contribution plans44,898 43,044 39,326 
Foreign plans and other8,575 9,015 8,373 
Total other plans53,473 52,059 47,699 
Total net pension expense$39,409 $44,470 $21,212 
The total net periodic benefit expense (income) is included in Cost of sales, General and administrative expense and Other income and expense in the consolidated statement of income. Unrecognized gains and losses are amortized into future net periodic pension cost using the 10% corridor method over the expected remaining life of the employee group.
The following weighted average assumptions were used to determine the above net periodic pension benefit income for the years ended December 31:
202420232022
U.S. Defined Benefit Pension Plans:
Discount rate5.38 %5.65 %3.02 %
Expected return on plan assets7.46 %7.59 %6.75 %
Rate of compensation increase (where applicable)3.75 %3.75 %3.75 %
Foreign Defined Benefit Pension Plans:
Discount rate4.36 %4.73 %1.78 %
Expected return on plan assets6.49 %6.41 %5.85 %
Rate of compensation increase (where applicable)3.00 %2.50 %2.50 %
Estimated Future Benefit Payments
The estimated future benefit payments for U.S. and foreign plans are as follows: 2025 – $42.9 million; 2026 – $43.2 million; 2027 – $43.0 million; 2028 – $43.2 million; 2029 – $42.8 million; 2030 to 2034 - $208.1 million. Future benefit payments primarily represent amounts to be paid from pension trust assets. Amounts included that are to be paid from the Company’s assets are not significant in any individual year.

Postretirement Plans and Post-employment Benefits
The Company provides limited postretirement benefits other than pensions for certain retirees and a small number of former employees. Benefits under these arrangements are not funded and are not significant.
The Company also provides limited post-employment benefits for certain former or inactive employees after employment but before retirement. Those benefits are not significant in amount.
The Company has a deferred compensation plan, which allows employees whose compensation exceeds the statutory IRS limit for retirement benefits to defer a portion of earned bonus compensation. The plan permits deferred amounts to be deemed invested in either, or a combination of, an interest-bearing account, phantom mutual fund accounts or the equivalent of a fund which invests in shares of the Company’s common stock on behalf of the employee. The amount owed to participants is an unfunded and unsecured general obligation which is payable out of either the general assets of the Company or a grant of shares of the Company's common stock. The amount deferred under the plan, including income earned, was $44.5 million and $35.9 million at December 31, 2024 and 2023, respectively. Administrative expense for the deferred compensation plan is borne by the Company and is not significant.