XML 37 R21.htm IDEA: XBRL DOCUMENT v3.25.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Overview — Defined benefit pension plans cover a portion of our salaried and hourly paid employees, including certain employees in foreign countries. Beginning in 2001, we discontinued providing these pension benefits generally to newly hired employees. Effective January 31, 2018, we discontinued providing service credits to active participants.
We have domestic postretirement plans that provide health and life insurance benefits to certain retirees and their dependents. Beginning in 2003, we discontinued providing these postretirement benefits generally to newly hired employees.
The plan year-end date for all our plans is December 31.
Actuarial Gains and Losses — As indicated in Notes 1 and 2, changes in fair value of plan assets and actuarial gains and losses related to our pension and postretirement plans are recorded to earnings during the fourth quarter of each year, unless earlier remeasurement is required.
During the fourth quarter of 2023, we initiated the wind-up of our Canadian defined benefit pension plans (collectively, the “Canadian Pension Plans”). The Company has received regulatory approval for the wind-up and we expect the process to be completed during 2025. This action had no material impact on the consolidated financial statements for the years ended December 31, 2024 and 2023.
Defined Benefit Pension Plans
Plan assets — Our investment strategy is based on the long-term growth and protection of principal while mitigating overall risk to ensure that funds are available to pay benefit obligations. The domestic plan assets are invested in a broad range of investment classes, including fixed income securities and domestic and international equities. We engage various investment managers who are regularly evaluated on long-term performance, adherence to investment guidelines and the ability to manage risk commensurate with the investment style and objective for which they were hired. We continuously monitor the value of assets by class and routinely rebalance our portfolio with the goal of meeting our target allocations.
The strategy for bonds emphasizes investment-grade corporate and government debt with maturities matching the longer duration pension liabilities. The bonds strategy also includes a high yield element, although minimal, which is generally shorter in duration. The strategy for equity assets is to minimize concentrations of risk by investing primarily in companies in a diversified mix of industries worldwide, while targeting neutrality in exposure to global versus regional markets, fund types and fund managers. A small portion of U.S. plan assets is allocated to private equity partnerships and real estate asset fund investments (Level 3 assets) for diversification, providing opportunities for above market returns.
Allowable investments under the plan agreements include fixed income securities, equity securities, mutual funds, venture capital funds, real estate and cash and equivalents. In addition, investments in futures and option contracts, commodities and other derivatives are allowed in commingled fund allocations managed by professional investment managers. Investments prohibited under the plan agreements include private placements and short selling of stock. No shares of our common stock were held by our defined benefit pension plans as of December 31, 2024 or 2023.
Actual asset allocation percentages of each class of our domestic and foreign pension plan assets as of December 31, 2024 and 2023, along with the current targeted asset investment allocation percentages, each of which is based on the midpoint of an allocation range, were as follows:
Domestic Pension Plans
Actual
Allocations		Mid-point of Target
Allocation Range
202420232024
Fixed income common trust funds66 %53 %66 %
Commingled global fund allocation5 %4 %5 %
Global equity common trust funds19 %19 %20 %
U.S. Government securities8 %20 %9 %
Short-term investments and other (1)
2 %4 %— %
Total100 %100 %100 %
___________________________________________________________________

(1)Short-term investments are generally invested in actively managed common trust funds or interest-bearing accounts.
Foreign Pension Plans
Actual
Allocations		Mid-point of Target
Allocation Range
202420232024
Global equity common trust funds6 %3 %6 %
Fixed income common trust funds76 %73 %85 %
Commingled global fund allocation10 %15 %9 %
Short-term investments (1)
8 %9 %— %
Total100 %100 %100 %
___________________________________________________________________
(1)Short-term investments are generally invested in actively managed common trust funds or interest-bearing accounts.

The fair values of pension plan assets at December 31, 2024, by asset class, were as follows:
TotalQuoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Asset class:
Debt securities:
Fixed income common trust funds (1) (2)
$179.2 $— $179.2 $— 
U.S. Government securities13.1 — 13.1 — 
Equity securities:
Global equity common trust funds (1) (3)
35.2 — 35.2 — 
Alternative investments:
Commingled global fund allocations (1) (4)
16.8 — 16.8 — 
Other:
Short-term investments (5)
10.6 4.3 6.3 — 
Other
0.9 — — 0.9 
Total$255.8 $4.3 $250.6 $0.9 
The fair values of pension plan assets at December 31, 2023, by asset class, were as follows:
TotalQuoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Asset class:
Debt securities:
Fixed income common trust funds (1) (2)
$180.3 $— $180.3 $— 
U.S. Government securities34.4 — 34.4 — 
Equity securities:
Global equity common trust funds (1) (3)
36.4 — 36.4 — 
Alternative Investments:
Commingled global fund allocations (1) (4)
26.1 — 26.1 — 
Other:
Short-term investments (5)
17.4 14.7 2.7 — 
Other
0.9 — — 0.9 
Total$295.5 $14.7 $279.9 $0.9 
___________________________________________________________________
(1)Common/commingled trust funds are similar to mutual funds, with a daily net asset value per share measured by the fund sponsor and used as the basis for current transactions. These investments, however, are not registered with the U.S. Securities and Exchange Commission and participation is not open to the public. The funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.
(2)This class represents investments in actively managed common trust funds that invest in a variety of fixed income investments, which may include corporate bonds, both U.S. and non-U.S. municipal and government securities, interest rate swaps, options and futures.
(3)This class represents investments in actively managed common trust funds that invest primarily in equity securities, which may include common stocks, options and futures.
(4)This class represents investments in actively managed common trust funds with investments in both equity and debt securities. The investments may include common stock, corporate bonds, U.S. and non-U.S. municipal securities, interest rate swaps, options and futures.
(5)Amounts are generally invested in actively managed common trust funds or interest-bearing accounts.
Employer Contributions — We currently fund U.S. pension plans in amounts equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, plus additional amounts that may be approved from time to time. During 2024, we made no contributions to our qualified domestic pension plans and made direct benefit payments of $5.5 to our non-qualified domestic pension plans. In 2025, we expect to make contributions of $2.0 to our qualified domestic pension plans and expect to make direct benefit payments of $5.0 to our non-qualified domestic pension plans.
In 2024, we made contributions of $1.6 to our foreign pension plans. In 2025, we expect to make contributions of $1.2 to our foreign pension plans.
Estimated Future Benefit Payments — Following is a summary, as of December 31, 2024, of the estimated future benefit payments for our pension plans in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. Benefit payments are paid from plan assets or directly by us for our non-funded plans. The expected benefit payments are estimated based on the same assumptions used at December 31, 2024 to measure our obligations.
Estimated future benefit payments:
(Domestic and foreign pension plans)
Domestic
Pension
Benefits		Foreign
Pension
Benefits
2025 (1)
$25.8 $30.7 
202625.7 4.0 
202724.1 4.3 
202822.2 4.2 
202921.9 4.2 
Subsequent five years86.8 25.4 
_________________________
(1) Payments for the foreign pension plans include amounts payable of $26.5 in connection with the Canadian Pension Plans wind-up mentioned above.
Obligations and Funded Status — The funded status of our pension plans is dependent upon many factors, including returns on invested assets and the level of market interest rates. Our non-funded pension plans account for $42.8 of the current underfunded status, as these plans are not required to be funded. The following tables show the domestic and foreign pension plans’ funded status and amounts recognized in our consolidated balance sheets:
Domestic Pension
Plans		Foreign Pension
Plans
2024202320242023
Change in projected benefit obligation:
Projected benefit obligation — beginning of year$245.7 $246.9 $120.2 $109.5 
Service cost— — — — 
Interest cost12.1 13.0 5.6 5.6 
Actuarial (gains) losses(6.1)7.6 (7.4)5.4 
Settlements(0.2)— — — 
Benefits paid(25.4)(21.8)(15.6)(6.6)
Foreign exchange and other— — (3.3)6.3 
Projected benefit obligation — end of year$226.1 $245.7 $99.5 $120.2 
The actuarial gains and losses for all pension plans in 2024 and 2023 were primarily related to a change in the discount rate used to measure the benefit obligations of those plans.
Domestic Pension
Plans		Foreign Pension
Plans
2024202320242023
Change in plan assets:
Fair value of plan assets — beginning of year$171.3 $176.8 $124.2 $115.9 
Actual return on plan assets1.3 10.9 (2.4)6.9 
Contributions (employer and employee)5.5 5.4 1.6 1.8 
Settlements(0.2)— — — 
Benefits paid(25.4)(21.8)(15.6)(6.6)
Foreign exchange and other— — (4.5)6.2 
Fair value of plan assets — end of year$152.5 $171.3 $103.3 $124.2 
Funded status at year-end$(73.6)$(74.4)$3.8 $4.0 
Amounts recognized in the consolidated balance sheets consist of:
Other assets$1.7 $1.9 $3.9 $4.1 
Accrued expenses(4.9)(5.1)— — 
Other long-term liabilities(70.4)(71.2)(0.1)(0.1)
Net amount recognized$(73.6)$(74.4)$3.8 $4.0 
Amount recognized in accumulated other comprehensive income (pre-tax) consists of — net prior service costs$— $— $1.0 $1.0 
The following is information about our pension plans that had accumulated benefit obligations in excess of the fair value of their plan assets at December 31, 2024 and 2023:
Domestic Pension
Plans		Foreign Pension
Plans
2024202320242023
Projected benefit obligation$221.7 $241.1 $0.1 $0.1 
Accumulated benefit obligation221.7 241.1 0.1 0.1 
Fair value of plan assets146.4 164.8 — — 
The accumulated benefit obligation for all domestic and foreign pension plans was $226.1 and $99.5, respectively, at December 31, 2024 and $245.7 and $120.2, respectively, at December 31, 2023.
Components of Net Periodic Pension Benefit (Income) Expense — Net periodic pension benefit (income) expense for our domestic and foreign pension plans included the following components:
Domestic Pension Plans
 Year ended December 31,
202420232022
Service cost$— $— $— 
Interest cost12.1 13.0 10.5 
Expected return on plan assets(8.8)(8.8)(8.2)
Amortization of unrecognized prior service credits— — (0.1)
Recognized net actuarial (gains) losses (1)
1.4 5.6 (1.6)
Total net periodic pension benefit expense$4.7 $9.8 $0.6 
___________________________________________________________________
(1)Consists primarily of our reported actuarial (gains) losses, the difference between actual and expected returns on plan assets, and settlement losses.
Foreign Pension Plans
Year ended December 31,
202420232022
Service cost$— $— $— 
Interest cost5.6 5.6 3.7 
Expected return on plan assets(5.1)(6.4)(5.6)
Amortization of unrecognized prior service costs— — 0.1 
Recognized net actuarial losses (1)
1.1 5.5 6.4 
Total net periodic pension benefit expense$1.6 $4.7 $4.6 
___________________________________________________________________
(1)Consists primarily of our reported actuarial losses and the difference between actual and expected returns on plan assets.
Assumptions — Actuarial assumptions used in accounting for our domestic and foreign pension plans were as follows:
Year ended December 31,
202420232022
Domestic Pension Plans
Weighted-average actuarial assumptions used in determining net periodic pension expense:
Discount rate (1)
5.18 %5.54 %3.99 %
Rate of increase in compensation levelsN/AN/AN/A
Expected long-term rate of return on assets5.47 %5.23 %3.23 %
Weighted-average actuarial assumptions used in determining year-end benefit obligations:
Discount rate5.57 %5.18 %5.54 %
Rate of increase in compensation levelsN/AN/AN/A
Foreign Pension Plans
Weighted-average actuarial assumptions used in determining net periodic pension expense:
Discount rate4.83 %5.15 %2.19 %
Rate of increase in compensation levelsN/AN/AN/A
Expected long-term rate of return on assets5.20 %6.08 %3.44 %
Weighted-average actuarial assumptions used in determining year-end benefit obligations:
Discount rate5.46 %4.83 %5.15 %
Rate of increase in compensation levelsN/AN/AN/A
___________________________________________________________________
(1) The discount rate for the year ended December 31, 2022 includes adjustments due to remeasurements in the U.S. Plan during the second and third quarters of 2022.
We review the pension assumptions annually. Pension income or expense for the year is determined using assumptions as of the beginning of the year (except for the effects of recognizing changes in the fair value of plan assets and actuarial gains and losses in the fourth quarter of each year), while the funded status is determined using assumptions as of the end of the year. We determined assumptions and established them at the respective balance sheet date using the following principles: (i) the expected long-term rate of return on plan assets is established based on forward looking long-term expectations of asset returns over the expected period to fund participant benefits based on the target investment mix of our plans and (ii) the discount rate is primarily determined by matching the expected projected benefit obligation cash flows for each of the plans to a yield curve that is representative of long-term, high-quality (rated AA or higher) fixed income debt instruments as of the measurement date.
Postretirement Benefit Plans
Transfer of Retiree Life Insurance Benefits — On February 17, 2022, we transferred a portion of our existing liability under the SPX Postretirement Benefit Plans (the “Plans”) for a group of participants with retiree life insurance benefits to an insurance carrier for consideration paid to the insurance carrier of $10.0. This transaction resulted in a settlement loss of $0.7 recorded to
“Other expense, net” during 2022. In addition, and in connection with this transfer, we remeasured the assets and liabilities of the Plans as of the transfer date, which resulted in an actuarial gain of $0.4 recorded to “Other expense, net”.
Employer Contributions and Future Benefit Payments — Our postretirement medical plans are unfunded and have no plan assets, but are instead funded by us on a pay-as-you-go basis in the form of direct benefit payments or policy premium payments. In 2024, we made benefit payments of $4.0 to our postretirement benefit plans. Following is a summary, as of December 31, 2024, of the estimated future benefit payments for our postretirement plans in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. The expected benefit payments are estimated based on the same assumptions used at December 31, 2024 to measure our obligations.

Postretirement Payments
2025$3.4 
20263.1 
20272.8 
20282.5 
20292.3 
Subsequent five years13.3 
Obligations and Funded Status — The following tables show the postretirement plans’ funded status and amounts recognized in our consolidated balance sheets:
Postretirement
Plans
20242023
Change in projected postretirement benefit obligation:
Projected postretirement benefit obligation — beginning of year$29.7 $32.1 
Interest cost1.2 1.4 
Actuarial losses0.1 0.2 
Benefits paid(4.0)(4.0)
Projected postretirement benefit obligation — end of year$27.0 $29.7 
Funded status at year-end$(27.0)$(29.7)
Amounts recognized in the consolidated balance sheets consist of:
Accrued expenses$(3.3)$(3.6)
Other long-term liabilities(23.7)(26.1)
Net amount recognized$(27.0)$(29.7)
Amount recognized in accumulated other comprehensive income (pre-tax) consists of — net prior service credits$(4.1)$(7.2)
The actuarial losses for our postretirement benefit plans in 2024 and 2023 were primarily related to a change in the discount rate used to measure the benefit obligations of those plans.
The net periodic postretirement benefit income included the following components:
Year ended December 31,
202420232022
Service cost$— $— $— 
Interest cost1.2 1.4 1.1 
Amortization of unrecognized prior service credits(3.1)(3.9)(4.4)
Settlement loss (1)
— — 0.7 
Recognized net actuarial (gains) losses 0.1 0.2 (7.0)
Net periodic postretirement benefit income$(1.8)$(2.3)$(9.6)
___________________________________________________________________
(1)Relates to the transfer of the retiree life insurance benefits obligation.
Actuarial assumptions used in accounting for our domestic postretirement plans were as follows:
Year ended December 31,
202420232022
Assumed health care cost trend rates:
Health care cost trend rate for next year6.50 %6.75 %7.00 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)5.00 %5.00 %5.00 %
Year that the rate reaches the ultimate trend rate203120312031
Discount rate used in determining net periodic postretirement benefit expense (1)
5.16 %5.50 %2.84 %
Discount rate used in determining year-end postretirement benefit obligation5.48 %5.16 %5.50 %
_______________________________________
(1) The discount rate for the year ended December 31, 2022 includes an adjustment due to a remeasurement in the Plans that took place in the first quarter of 2022.
The accumulated postretirement benefit obligation was determined using the terms and conditions of our various plans, together with relevant actuarial assumptions and health care cost trend rates. It is our policy to review the postretirement assumptions annually. The assumptions are determined by us and are established based on our prior experience and our expectations that future health care cost trend rates will decline. In addition, we consider advice from independent actuaries.
Defined Contribution Retirement Plans
We maintain a defined contribution retirement plan (the “DC Plan”) pursuant to Section 401(k) of the U.S. Internal Revenue Code. Under the DC Plan, eligible U.S. employees may voluntarily contribute up to 50% of their compensation into the DC Plan and we match a portion of participating employees’ contributions. Our matching contributions are primarily made in newly issued shares of SPX common stock and are issued at the prevailing market price. The matching contributions vest with the employee immediately upon the date of the match and there are no restrictions on the resale of SPX common stock held by employees.
Under the DC Plan, we contributed 0.084, 0.127 and 0.149 shares of our common stock to employee accounts in 2024, 2023, and 2022, respectively. Compensation expense is recorded based on the market value of shares as the shares are contributed to employee accounts. We recorded $10.9 in 2024, $9.8 in 2023, and $7.8 in 2022, as compensation expense related to the matching contribution.
Certain collectively-bargained employees participate in the DC Plan with company contributions not being made in SPX common stock, although SPX common stock is offered as an investment option under these plans.
We also maintain a Supplemental Retirement Savings Plan (“SRSP”), which permits certain members of our senior management and executive groups to defer eligible compensation in excess of the amounts allowed under the DC Plan. We match a portion of participating employees’ deferrals to the extent allowable under the SRSP provisions. The matching contributions vest with the participant immediately. Our funding of the participants’ deferrals and our matching contributions are held in certain mutual funds (as allowed under the SRSP), as directed by the participant. The fair values of these assets, which totaled $16.2 and $14.0 at December 31, 2024 and 2023, respectively, are based on quoted prices in active markets for identical assets (Level 1). In addition, the assets under the SRSP are available to the general creditors in the event of our bankruptcy and, thus, are maintained on our consolidated balance sheets within “Other assets,” with a corresponding amount in “Other long-term liabilities” for our obligation to the participants. Lastly, these assets are accounted for as trading securities. During 2024, 2023, and 2022, we recorded compensation expense of $0.4, $0.2, and $0.2, respectively relating to our matching contributions to the SRSP.