XML 42 R27.htm IDEA: XBRL DOCUMENT v3.25.0.1
Pension and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
Pensions. The Company sponsors various pension plans covering certain U.S. and non-U.S. employees, and participates in certain multi-employer pension plans. The benefits under the Company plans are based primarily on years of service and either the employees’ remuneration near retirement or a fixed dollar multiple.
 
A measurement date of December 31 was used for all plans presented below.

The components of pension expense were as follows:
U.S. Plans202420232022
Service cost$15 $13 $19 
Interest cost40 54 31 
Expected return on plan assets(46)(60)(75)
Settlements and curtailments469 — 1 
Amortization of actuarial loss32 43 44 
Amortization of prior service cost1 1 1 
Net periodic cost$511 $51 $21 

Non-U.S. Plans202420232022
Service cost$7 $7 $9 
Interest cost16 19 13 
Expected return on plan assets(18)(22)(22)
Settlements44 — — 
Special termination benefits— 6 — 
Amortization of actuarial loss2 3 5 
Amortization of prior service credit— — (1)
Net periodic cost$51 $13 $4 

In the third quarter of 2024, the Company's Canadian and primary U.S. defined benefit pension plans (the "Canadian Plan" and the "U.S. Plans", respectively) entered into transactions to transfer a significant portion of their pension liabilities through the purchase of group annuity insurance contracts for the benefit of nearly all their respective retiree and deferred vested participants. The issuers of the group annuity insurance contracts fully guarantee and are solely responsible for paying each participant's future benefits in full. The Company used plan assets to settle $119 of Canadian Plan obligations and $740 of U.S. Plans obligations and recorded settlement charges of $47 and $469, respectively, for the Canadian and U.S. Plans. As part of the transaction, the Company also made a cash contribution of approximately $100 to the U.S. Plans. In addition in 2024, $35 of U.S. plan obligations were settled as a result of certain retiree and deferred vested participants electing lump-sum distributions.

Additional pension expense of $6 in 2024 and 2023 and $5 for 2022 was recognized for multi-employer plans.

The projected benefit obligations, accumulated benefit obligations, plan assets and funded status of the Company's U.S. and non-U.S. plans were as follows:
 U.S. PlansNon-U.S. Plans
 2024202320242023
Projected Benefit Obligations
Benefit obligations at January 1$1,109 $1,094 $415 $387 
Service cost15 13 7 7 
Interest cost40 54 16 19 
Plan participants' contributions— — 2 2 
Amendments— 1 — (2)
Settlements(775)— (122)(8)
Special termination benefits— — — 6 
Actuarial (gain) / loss(15)36 (7)18 
Benefits paid(75)(89)(22)(38)
Foreign currency translation— — (31)24 
Benefit obligations at December 31$299 $1,109 $258 $415 
Plan Assets
Fair value of plan assets at January 1$880 $886 $412 $381 
Actual gain on plan assets 40 81 27 33 
Employer contributions / (withdrawals)125 2 (12)17 
Plan participants' contributions— — 1 2 
Settlements(775)— (122)(7)
Benefits paid(75)(89)(22)(38)
Foreign currency translation— — (30)24 
Fair value of plan assets at December 31$195 $880 $254 $412 
Funded status$(104)$(229)$(4)$(3)
Accumulated benefit obligations at December 31$257 $1,065 $229 $389 

During 2024, actuarial gains for the Company’s U.S. and non-U.S. pension plans totaled $25. Actuarial gains and losses arise each year primarily due to changes in discount rates, differences in actual plan asset returns compared to expected returns, and changes in actuarial assumptions such as mortality. The gain in 2024 was primarily due to higher discount rates at the end of 2024 compared to 2023.

U.S. pension plans with accumulated benefit obligations in excess of plan assets were as follows: 
20242023
Projected benefit obligations$93 $1,109 
Accumulated benefit obligations88 1,065 
Fair value of plan assets— 880 

U.S. pension plans with projected benefit obligations in excess of plan assets were as follows: 
20242023
Projected benefit obligations$296 $1,109 
Accumulated benefit obligations255 1,065 
Fair value of plan assets192 880 

Non-U.S. pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets were as follows:
20242023
Projected benefit obligations$199 $213 
Accumulated benefit obligations179 195 
Fair value of plan assets114 117 
The Company’s investment strategy in its U.S. plan is designed to generate returns that are consistent with providing benefits to plan participants within the risk tolerance of the plan. Asset allocation is the primary determinant of return levels and investment risk exposure.

The strategic ranges for asset allocation in the U.S. plans are as follows: 
U.S. equities45 %to55 %
International equities7.5 %to12.5 %
Fixed income15 %to25 %
Balanced funds7.5 %to12.5 %
Real estate7.5 %to12.5 %

Subsequent to the annuitization of a portion of the U.S Plans liabilities discussed above, the U.S. Plans’ asset allocation will be migrating to the above target ranges. That migration will be staged over time and allow Crown to manage liquidity requirements and minimize transaction fees.

Pension assets are classified into three levels. Level 1 asset values are derived from quoted prices which are available in active markets as of the report date. Level 2 asset values are derived from other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the report date. Level 3 asset values are derived from unobservable pricing inputs that are not corroborated by market data or other objective sources.

Level 1 Investments

Equity securities are valued at the latest quoted prices taken from the primary exchange on which the security trades. Mutual funds are valued at the net asset value ("NAV") of shares held at year-end.

Level 2 Investments

Fixed income securities, including government issued debt, corporate debt, asset-backed and structured debt securities are valued using the latest bid prices or valuations based on a matrix system (which considers such factors as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and other reference data including market research publications). Derivatives, which consist mainly of interest rate swaps, are valued using a discounted cash flow pricing model based on observable market data.

Level 3 Investments

Hedge funds and private equity funds are valued at the NAV at year-end. The values assigned to private equity funds are based upon assessments of each underlying investment, incorporating valuations that consider the evaluation of financing and sale transactions with third parties, expected cash flows and market-based information, including comparable transactions, and performance multiples among other factors. Real estate investments are based on third party appraisals.

Investments Measured Using NAV per Share Practical Expedient

Investments measured using NAV per share as a practical expedient include investment funds that invest in global equity, emerging markets and fixed income. The global equity funds invest in equity securities of various market sectors including industrial materials, consumer discretionary goods and services, financial infrastructure, technology, and health care. The emerging markets funds invest in equity markets within financial services, consumer goods and services, energy, and technology.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair value. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurements at the reporting date.

The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and their placement within the fair value hierarchy. The levels assigned to the defined benefit plan assets as of December 31, 2024 and 2023 are summarized in the tables below:
 2024
 U.S. plan
assets		Non-U.S. plan
assets		Total
Level 1
Cash and cash equivalents$8 $28 $36 
Global large cap equity— 8 8 
U.S. large cap equity— 10 10 
Mutual funds – U.S. equity51 — 51 
59 46 105 
Level 2
Government issued debt securities— 18 18 
Corporate debt securities— 6 6 
Insurance contracts— 102 102 
Investment funds – fixed income— 1 1 
— 127 127 
Level 3
Investment funds – real estate106 28 134 
Private equity2 — 2 
Real estate – direct28 8 36 
136 36 172 
Total assets in fair value hierarchy195 209 404 
Investments measured at NAV Practical Expedient (a)
Investment funds - fixed income— 25 25 
Investment funds - global equity— 20 20 
 — 45 45 
Total investments at fair value$195 $254 $449 
 2023
 U.S. plan
assets		Non-U.S. plan
assets		Total
Level 1
Cash and cash equivalents$15 $23 $38 
Global large cap equity— 3 3 
U.S. large cap equity173 4 177 
U.S. mid/small cap equity276 21 297 
Mutual funds – global equity59 — 59 
Mutual funds – U.S. equity49 — 49 
Mutual funds – fixed income18 — 18 
590 51 641 
Level 2
Government issued debt securities— 18 18 
Corporate debt securities41 8 49 
Insurance contracts— 110 110 
Investment funds – fixed income— 1 1 
41 137 178 
Level 3
Investment funds – real estate127 60 187 
Private equity3 — 3 
Real estate – direct27 17 44 
157 77 234 
Total assets in fair value hierarchy788 265 1,053 
Investments measured at NAV Practical Expedient (a)
Investment funds - fixed income86 22 108 
Investment funds - global equity— 118 118 
Investment funds - emerging markets5 — 5 
Investments funds - real estate— 7 7 
91 147 238 
Total investments at fair value$879 $412 $1,291 

(a) Certain investments that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy.

Accrued income excluded from the tables above was as follows:
20242023
U.S. plan assets$— $1 

Plan assets as of December 31, 2023, include $297 of the Company’s common stock.
The following tables reconcile the beginning and ending balances of plan assets measured using significant unobservable inputs (Level 3).
Private
equity		Real
estate		Total
Balance at January 1, 2023$5 $247 $252 
Foreign currency translation— 2 2 
Asset returns – assets held at reporting date18 (24)(6)
Asset returns – assets sold during the period(18)11 (7)
Purchases, sales and settlements, net(2)(5)(7)
Balance at December 31, 20233 231 234 
Foreign currency translation— (4)(4)
Asset returns – assets held at reporting date3 (6)(3)
Asset returns – assets sold during the period(4)2 (2)
Purchases, sales and settlements, net— (53)(53)
Balance at December 31, 2024$2 $170 $172 

The following table presents additional information about the pension plan assets valued using NAV as a practical expedient:
Fair ValueRedemption FrequencyRedemption Notice Period
Balance at December 31, 2024
Investment funds – fixed income$25 Daily10 days
Investment funds – global equity20 Daily 10 days
Balance at December 31, 2023
Investment funds – fixed income$108 Semi-monthly
1- 5 days
Investment funds – global equity118 Daily10 days
Investment funds – emerging markets5 Daily30 days
Investment funds – real estate7 Daily10 days

The pension plan assets valued using NAV as a practical expedient do not have any unfunded commitments.

Pension assets and liabilities included in the Consolidated Balance Sheets were:
20242023
Non-current assets$88 $94 
Current liabilities22 12 
Non-current liabilities174 314 

The Company’s current liability at December 31, 2024, represents the expected required payments to be made for unfunded plans over the next twelve months. Total estimated 2025 employer contributions are $20 for the Company’s pension plans.

Changes in the net loss and prior service credit for the Company’s pension plans were: 
 202420232022
 Net lossPrior
service		Net lossPrior
service		Net lossPrior
service
Balance at January 1$686 $(1)$712 $— $814 $2 
Reclassification to net periodic benefit cost(551)(1)(46)(1)(49)(1)
Current year (gain) / loss(25)— 22 — (45)(1)
Amendments— — (1)— — — 
Foreign currency translation(1)— (1)— (8)— 
Balance at December 31$109 $(2)$686 $(1)$712 $— 
Expected future benefit payments as of December 31, 2024 are:

 
U.S.
plans		Non-U.S.
plans
2025$17 $20 
202616 17 
202733 16 
202811 19 
202913 19 
2030 - 203490 102 

The weighted average actuarial assumptions used to calculate the benefit obligations at December 31 were:
U.S. Plans202420232022
Discount rate5.9 %5.0 %5.2 %
Compensation increase5.0 %5.0 %5.0 %
Non-U.S. Plans202420232022
Discount rate5.1 %4.8 %4.9 %
Compensation increase2.8 %2.9 %2.7 %

The weighted average actuarial assumptions used to calculate pension expense for each year were:
U.S. Plans202420232022
Discount rate - service cost5.2 %5.4 %3.3 %
Discount rate - interest cost4.9 %5.1 %2.2 %
Compensation increase5.0 %5.0 %4.7 %
Long-term rate of return7.2 %7.2 %6.6 %
 
Non-U.S. Plans202420232022
Discount rate - service cost4.7 %5.0 %2.9 %
Discount rate - interest cost4.7 %5.1 %2.6 %
Compensation increase2.9 %2.9 %2.7 %
Long-term rate of return4.2 %5.1 %4.3 %

The expected long-term rate of return on plan assets is determined by taking into consideration expected long-term returns associated with each major asset class based on long-term historical ranges, inflation assumptions and the expected net value from active management of the assets based on actual results.

Other Postretirement Benefit Plans. The Company sponsors unfunded plans to provide health care and life insurance benefits to certain retirees and survivors. Generally, the medical plans pay a stated percentage of medical expenses reduced by deductibles and other coverages. Life insurance benefits are generally provided by insurance contracts. The Company reserves the right, subject to existing agreements, to change, modify or discontinue the plans. A measurement date of December 31 was used for the plans presented below.

The components of net postretirement benefits cost were as follows:
Other Postretirement Benefits202420232022
Service cost$— $— $1 
Interest cost6 6 4 
Amortization of prior service credit— — (20)
Amortization of actuarial loss— — 2 
Net periodic benefit cost / (credit)$6 $6 $(13)
Changes in the benefit obligations were:
20242023
Benefit obligations at January 1$107 $108 
Interest cost6 6 
Actuarial (gain) / loss (2)— 
Benefits paid(9)(11)
Foreign currency translation(6)4 
Benefit obligations at December 31$96 $107 

Changes in the net (gain) / loss and prior service credit for the Company’s postretirement benefit plans were:
 202420232022
 Net gainPrior
service		Net gainPrior
service		Net
loss / (gain)		Prior
service
Balance at January 1$(3)$— $(2)$— $21 $(20)
Reclassification to net periodic benefit cost— — — — (2)20 
Current year (gain) / loss(3)— — — (22)— 
Foreign currency translation1 — (1)— 1 — 
Balance at December 31$(5)$— $(3)$— $(2)$— 


Expected future benefit payments are as follows:
 Benefit Payments
2025$12 
202610 
202710 
20289 
20299 
2030 - 203439 

The assumed health care cost trend rates at December 31, 2024 were as follows: 
Health care cost trend rate assumed for 20245.9 %
Rate that the cost trend rate gradually declines to4.1 %
Year that the rate reaches the rate it is assumed to remain2032

Weighted average discount rates used to calculate the benefit obligations at the end of each year and the cost for each year are presented below:

 
202420232022
Benefit obligations6.5 %5.0 %5.8 %
Service cost8.1 %5.3 %7.8 %
Interest cost5.8 %4.9 %5.7 %
Defined Contribution Benefit Plans. The Company also sponsors defined contribution benefit plans in certain jurisdictions including the U.S. and the U.K. The Company recognized expense of $13, $14, and $13 in 2024, 2023 and 2022 related to these plans.