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RETIREMENT SAVINGS PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
RETIREMENT SAVINGS PLANS RETIREMENT SAVINGS PLANS
The Company has defined contribution, defined benefit, and other savings plans for the benefit of its employees that meet eligibility requirements.
Defined Contribution Plans
Eligible employees may contribute a portion of their compensation to the plans, which may be subject to certain statutory limitations. The Company contributes to certain of the plans to either match qualifying employee contributions or as discretionary contributions. The Company made total contributions of $204 million, $210 million, and $188 million for the years ended December 31, 2024, 2023 and 2022, respectively. The Company’s contributions were recorded in cost of revenues and selling, general and administrative expense on the consolidated statements of operations.
Executive Deferred Compensation Plans
The Company has deferred compensation plans through which certain senior-level employees may elect to defer a portion of their eligible compensation. Distributions from the deferred compensation plans are generally made following separation from service or other events as specified in the plan. In certain plans, the Company may make discretionary contributions to employee accounts. While these plans are unfunded, the Company has established separate rabbi trusts used to provide for certain of these benefits. The accounts of the separate rabbi trusts are included in the Company’s consolidated financial statements. The investments are included in prepaid expenses and other current assets and other noncurrent assets on the consolidated balance sheets. The deferred compensation obligation is included in accrued liabilities and other noncurrent liabilities in the consolidated balance sheets. The values of the investments and deferred compensation obligation are recorded at fair value. Changes in the fair value of the investments are included as a component of other income (expense), net, on the consolidated statements of operations. Changes in the fair value of the deferred compensation obligation are included as a component of selling, general and administrative expenses on the consolidated statements of operations. (See Note 14 and Note 18.)
Multiemployer Benefit Plans
The Company contributes to various multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer pension plans in that (i) contributions made by the Company to the multiemployer pension plans may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to stop participating in the multiemployer pension plans, it may be required to pay those plans an amount based on the underfunded status of the plan, which is referred to as a withdrawal liability; and (iii) actions taken by a participating employer that lead to a deterioration of the financial health of a multiemployer pension plan may result in the unfunded obligations of the multiemployer pension plan being borne by its remaining participating employers. The Company also contributes to various other multiemployer benefit plans that provide health and welfare benefits to both active and retired participants. The Company does not participate in any multiemployer benefit plans that are individually significant to the Company.
The following table summarizes the Company’s contributions to multiemployer pension and health and welfare benefit plans (in millions).
Year Ended December 31,
202420232022
Pension benefits$115 $128 $112 
Health and welfare benefits248 153 182 
Total contributions$363 $281 $294 
Defined Benefit Plans
The Company participates in and/or sponsors a qualified defined benefit pension plan that covers certain U.S. based employees and several U.S. and non-U.S. nonqualified defined benefit pension plans that are noncontributory. The Company’s pension plans consist of both funded and unfunded plans.
The Company also holds net assets and net liabilities on behalf of other U.S. and non-U.S. pension plans. The plan provisions vary by plan and by country. Some of these plans are unfunded and all are noncontributory. At a plan level, net asset positions are recorded in other noncurrent assets, and net liability positions are recorded in accrued liabilities and/or other noncurrent liabilities on the consolidated balance sheets.
Discount rates, long-term rate of return on plan assets, increases in compensation levels, and mortality rates are key assumptions used in determining the benefit obligation. The table below describes how the assumptions are determined.
AssumptionDescription
Discount rateBased on a bond portfolio approach that includes high-quality debt instruments with maturities matching the Company’s expected benefit payments from the plans.
Long-term rate of return on plan assets
Based on the weighted-average expected rate of return and capital market forecasts for each asset class employed and also considers the Company’s historical compounded return on plan assets for 10 and 15-year periods.
Increase in compensation levelsBased on past experience and the near-term outlook.
Mortality Various mortality tables adjusted and projected using mortality improvement rates.
Net Periodic Pension Cost
Expense recognized for the pension plans is based upon actuarial valuations. Inherent in those valuations are key assumptions, including discount rates and, where applicable, expected returns on assets. The service cost component of net periodic pension cost is recorded in operating expenses on the consolidated statements of operations, while the remaining components are recorded in other income (expense), net. Net periodic pension cost was not material for the years ended December 31, 2024, 2023 and 2022.
Obligations and Funded Status
The following tables present information about plan assets and obligations of the pension plans based upon a valuation as of December 31, 2024 and 2023, respectively (in millions).
December 31, 2024December 31, 2023
Accumulated benefit obligation$683 $753 
Change in projected benefit obligation:
Projected benefit obligation at beginning of year $753 $762 
Service cost2 3 
Interest cost33 35 
Benefits paid(45)(40)
Actuarial gains(48)— 
Settlement charges(2)(11)
Effects of foreign currency exchange rate changes and other(10)4 
Projected benefit obligation at end of year683 753 
Plan assets:
Fair value at beginning of year540 533 
Actual return on plan assets(46)9 
Company contributions32 33 
Benefits paid(45)(40)
Settlement charges(3)(11)
Effects of foreign currency exchange rate changes and other(7)16 
Fair value at end of year471 540 
Under funded status$(212)$(213)
Amounts recognized as assets and liabilities on the consolidated balance sheets:
Other noncurrent assets$65 $82 
Accrued liabilities(29)(31)
Other noncurrent liabilities(248)(264)
Total$(212)$(213)
Amounts recognized in accumulated other comprehensive loss consist of:
Net loss$104 $79 
The weighted average assumptions used to determine benefit obligations of the pension plans were as follows.
December 31, 2024December 31, 2023
Discount rate5.20 %4.62 %
Rate of compensation increases3.16 %3.18 %
Plan Assets
The Company’s investment policy is to maximize the total rate of return on plan assets to meet the long-term funding obligations of the pension plans. There are no restrictions on the types of investments held in the pension plans, which are invested using a combination of active management and passive investment strategies. Risk is controlled through diversification among multiple asset classes, managers, styles, and securities. Risk is further controlled both at the manager and asset class levels by assigning return targets and evaluating performance against these targets. The following table presents the weighted average pension plans asset allocations by asset category (in millions).
December 31, 2024
Investment TypeTargetActual
Debt securities4 %4 %
Equity securities10 %10 %
Fixed income securities73 %65 %
Multi-asset credit fund5 %11 %
Real assets4 %2 %
Hedge funds2 %7 %
Cash2 %1 %
Total100 %100 %
Fair Value Measurements
Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 14 for a discussion of the fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value (in millions).
December 31, 2024
TotalLevel 1Level 2Level 3
Debt securities$19 $19 $— $— 
Equity securities55 25 30 — 
Fixed income securities444 22 356 66 
Multi-asset credit fund77 — 77 — 
Cash6 6 — — 
Total plan assets measured at fair value$601 $72 $463 $66 
Assets held at net asset value practical expedient
Real assets$16 
Hedge funds44 
Total assets held at net asset value practical expedient$60 
Liabilities:
Derivatives(190)
Total plan assets$471 
The table below sets forth a summary of changes in the fair value of the Level 3 pension assets for the year ended December 31, 2024 (in millions).
Fixed Income Funds
Fair value at beginning of year$76 
Unrealized losses(5)
Purchases, issuances, sales and settlements, net(5)
Balance at end of year$66 
December 31, 2023
TotalLevel 1Level 2Level 3
Equity securities$64 $36 $28 $— 
Fixed income securities541 12 453 76 
Multi-asset credit fund24 — 24 — 
Cash9 9 — — 
Total plan assets measured at fair value$638 $57 $505 $76 
Assets held at net asset value practical expedient
Real assets$18 
Hedge funds22 
Total assets held at net asset value practical expedient$40 
Liabilities:
Derivatives(138)
Total plan assets$540 
The table below sets forth a summary of changes in the fair value of the Level 3 pension assets for the year ended December 31, 2023 (in millions).
Fixed Income Funds
Fair value at beginning of year$72 
Unrealized gains9 
Transfers out(5)
Balance at end of year$76 
Estimated Benefit Payments
The following table presents the estimated future benefit payments expected to be paid out for the defined benefits plans over the next ten years (in millions).
Pension Plans
2025$51 
202645 
202745 
202847 
202946 
Thereafter228