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Long-Term Employee Benefit Liabilities
 12 Months Ended
Dec. 31, 2024
Postemployment Benefits [Abstract]  
Long-Term Employee Benefit Liabilities
18. LONG-TERM EMPLOYEE BENEFIT LIABILITIES
Long-term employee benefit liabilities consist of:
 
     
2024
      2023  
Defined benefit pension plans and other [a]
   
$
126
   
    $ 124  
Termination and long-term service arrangements [b]
   
 
375
 
      428  
Retirement medical benefits plans
   
 
17
 
      20  
Other long-term employee benefits
   
 
15
 
      19  
Long-term employee benefit obligations
   
$
   533
 
    $    591  
 
[a]
Defined benefit pension plans
The Company sponsors a number of defined benefit pension plans and similar arrangements for its employees. All pension plans are funded to at least the minimum legal funding requirements.
The significant weighted average actuarial assumptions adopted in measuring the Company’s obligations and costs are as follows:
 
     
2024
        2023  
Projected benefit obligation
        
Discount rate
   
 
4.6
% 
        4.7%  
Rate of compensation increase
   
 
3.2
% 
        3.7%  
Net periodic benefit cost
        
Discount rate
   
 
4.1
% 
        4.5%  
Rate of compensation increase
   
 
3.2
% 
        3.7%  
Expected return on plan assets
   
 
5.9
% 
        5.7%  
 
 
Information about the Company’s defined benefit pension plans is as follows:
 
     
2024
        2023  
Projected benefit obligation
        
Beginning of year
   
$
   511
 
      $    498  
Current service cost
   
 
7
 
        6  
Interest cost
   
 
22
 
        22  
Actuarial gains and changes in actuarial assumptions
   
 
(17
) 
        5  
Benefits paid
   
 
(22
) 
        (24 ) 
Acquisition [note 7]
   
 
—
 
        4  
Divestiture
   
 
—
 
        (10 ) 
Foreign exchange
   
 
(26
) 
        10  
End of year
   
 
475
 
        511  
Plan assets at fair value [i]
        
Beginning of year
   
 
427
 
        391  
Return on plan assets
   
 
17
 
        41  
Employer contributions
   
 
5
 
        7  
Benefits paid
   
 
(22
) 
        (19 ) 
Foreign exchange
   
 
(22
) 
        7  
End of year
   
 
405
 
        427  
Ending funded status – Plan deficit
   
$
70
 
      $ 84  
Amounts recorded in the consolidated balance sheet
        
Non-current
asset
[note 14]
   
$
57
 
      $ 41  
Current liability
   
 
1
 
        1  
Non-current
liability
   
 
126
 
        124  
Net liability
   
$
70
 
      $ 84  
Unrecognized actuarial losses recorded in accumulated other comprehensive income
   
$
(72
) 
      $ (75 ) 
Net periodic benefit cost
        
Current service cost
   
$
7
 
      $ 6  
Interest cost
   
 
22
 
        22  
Return on plan assets
   
 
(24
) 
        (21 ) 
Actuarial (gains) losses
   
 
(18
) 
        3  
Net periodic benefit cost
   
$
(13
) 
      $ 10  
 
 
  [i]
The asset allocation of the Company’s defined benefit pension plans at December 31, 2024 and the target allocation range for 2025 are as follows:
 
     
2025 
        2024   
Fixed income securities
   
 
60-86%
 
        64%  
Equity securities
   
 
14-44%
 
        27%  
Cash and cash equivalents
   
 
0-10%
 
        9%  
    
 
100%
 
        100%  
Substantially all of the plan assets’ fair value has been determined using significant observable inputs [level 2] from indirect market prices on regulated financial exchanges.
The expected rate of return on plan assets was determined by considering the Company’s current investment mix, the historic performance of these investment categories and expected future performance of these investment categories.
 
[b]
Termination and long-term service arrangements
Pursuant to labour laws and national labour agreements in certain European countries and Mexico, the Company is obligated to provide lump sum termination payments to certain employees on retirement or involuntary termination, and long service payments contingent upon persons reaching a predefined number of years of service.
The weighted average significant actuarial assumptions adopted in measuring the Company’s projected termination and long-term service benefit obligations and net periodic benefit cost are as follows:
 
     
2024  
        2023   
Discount rate
   
 
5.2%
 
        5.3%  
Rate of compensation increase
   
 
3.5%
 
        3.7%  
 
2024 Annual Financial Statements 24
 
Information about the Company’s termination and long-term service arrangements is as follows:
 
     
2024
        2023  
Projected benefit obligation
        
Beginning of year
   
$
445
 
      $ 387  
Current service cost
   
 
16
 
        16  
Interest cost
   
 
20
 
        20  
Actuarial (gains) losses and changes in actuarial assumptions
   
 
(4
) 
        21  
Benefits paid
   
 
(46
) 
        (24 ) 
Foreign exchange
   
 
(40
) 
        25  
Ending funded status – Plan deficit
   
$
     391
 
      $    445  
Amounts recorded in the consolidated balance sheet
        
Current liability
   
$
16
 
      $ 17  
Non-current
liability
   
 
375
 
        428  
Net liability
   
$
391
 
      $ 445  
Unrecognized actuarial losses recorded in accumulated other comprehensive income
   
$
(51
) 
      $ (59 ) 
Net periodic benefit cost
        
Current service cost
   
$
16
 
      $ 16  
Interest cost
   
 
20
 
        20  
Actuarial losses
   
 
3
 
        7  
Net periodic benefit cost
   
$
39
 
      $ 43  
 
[c]
Future benefit payments
 
     
Defined
benefit
pension plans
     
Termination
and long-term
service
arrangements
     
Retirement
medical
benefits plans
      Total  
Expected employer contributions - 2025
     $ 6       $ 16       $ 1      $ 23  
Expected benefit payments:
            
2025
     $ 26       $ 16       $ 1      $ 43  
2026
      26        17        1        44  
2027
      27        18        1        46  
2028
      27        24        1        52  
2029
      28        26        2        56  
Thereafter
      150        174        6        330  
      $ 284       $ 275       $ 12      $    571