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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Pension Plans

We historically sponsored several defined benefit pension plans covering most employees not covered by union-administered plans, including certain employees in foreign countries. These plans generally provided participants with benefits based on years of service and career-average compensation levels.

In past years, we made amendments to defined benefit retirement plans that froze the retirement benefits for non-grandfathered and certain non-union employees in the U.S., Canada and the U.K. In 2020, we froze our U.S. and Canadian pension plans for substantially all of the remaining active employees. As of December 31, 2020, these employees ceased accruing further benefits and began receiving an enhanced defined contribution plan where all benefits earned were fully preserved and paid in accordance with plan and legal requirements. We recognized curtailment losses of $9 million in non-operating pension costs, net with an offset to accumulated other comprehensive loss as a result of the freeze of the pension plans.

During 2019, we offered approximately 4,500 vested former employees in our U.S. defined benefit plan a one-time option to receive a lump sum distribution of their benefits. Approximately 1,700 former employees, or 38% of those that were offered the distribution, accepted the offer. In December 2019, we made payments of approximately $80 million from the U.S. defined benefit plan assets, which resulted in a settlement of $90 million, representing approximately 4% of our U.S. pension plan obligations. In 2019, we recognized a settlement loss of $35 million.
We also have a non-qualified supplemental pension plan covering certain U.S. employees, which provides for incremental pension payments so that the participants' payments equal the amounts that could have been received under our qualified pension plan if it were not for limitations imposed by income tax regulations. The accrued pension liability related to this plan was $57 million and $61 million as of December 31, 2021 and 2020, respectively.

Net Pension Expense

Components of net pension expense for defined benefit pension plans were as follows:
  
Years ended December 31,
  
202120202019
 (In thousands)
Company-administered plans:
Service cost$1,093 $11,915 $11,007 
Interest cost57,973 67,781 84,960 
Expected return on plan assets(86,775)(97,526)(91,034)
Pension settlement expense— — 34,974 
Curtailment loss— 9,329 — 
Amortization of net actuarial loss and prior service cost28,221 31,787 31,419 
Net pension expense$512 $23,286 $71,326 
Company-administered plans:
U.S.$8,906 $32,503 $75,936 
Non-U.S.(8,394)(9,217)(4,610)
Net pension expense$512 $23,286 $71,326 
 

Non-operating pension costs, net include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as any significant charges for settlements or curtailments if recognized.

The following table sets forth the weighted-average actuarial assumptions used in determining our annual net pension expense:
 U.S. Plans
Years ended December 31,		Non-U.S. Plans
Years ended December 31,
 202120202019202120202019
Discount rate2.60%3.18%4.35%1.53%2.28%3.04%
Rate of increase in compensation levels3.00%3.00%3.00%3.11%3.11%3.08%
Expected long-term rate of return on plan assets
3.90%5.05%5.40%3.89%4.99%5.36%
Gain and loss amortization period (years)212122242424

The return on plan assets assumption reflects the weighted-average of the expected long-term rates of return for the broad categories of investments held in the plans. The expected long-term rate of return is adjusted when there are fundamental changes in expected returns or in asset allocation strategies of the plan assets.
Obligations and Funded Status

The following table sets forth the benefit obligations, assets and funded status associated with our pension plans:
 
 20212020
 (In thousands)
Change in benefit obligations:
Benefit obligations at January 1$2,509,093 $2,324,080
Service cost1,093 11,915
Interest cost57,973 67,781
Actuarial (gain) loss(113,663)212,099
Pension curtailment and settlement— (19,052)
Benefits paid(105,887)(104,977)
Foreign currency exchange rate changes(4,384)17,247
Benefit obligations at December 312,344,225 2,509,093
Change in plan assets:
Fair value of plan assets at January 12,303,996 1,978,708
Actual return on plan assets94,931 275,372
Employer contribution6,992 136,029
Benefits paid(105,887)(104,977)
Foreign currency exchange rate changes(5,930)18,864
Fair value of plan assets at December 312,294,102 2,303,996
Funded status$(50,123)$(205,097)
Funded percent98%92%


The funded status of our pension plans was presented in the Consolidated Balance Sheets as follows:
 December 31,
 20212020
 (In thousands)
Noncurrent asset$124,984 $63,857 
Current liability(3,848)(3,776)
Noncurrent liability(171,259)(265,178)
Net amount recognized$(50,123)$(205,097)

Amounts recognized in accumulated other comprehensive loss (pre-tax) consisted of:
 December 31,
 20212020
 (In thousands)
Prior service cost$3,622 $3,816 
Net actuarial loss706,375 855,300 
Net amount recognized$709,997 $859,116 

In 2022, we expect to amortize $22 million of net actuarial loss as a component of pension expense.
    
The following table sets forth the weighted-average actuarial assumptions used in determining funded status:
 U.S. Plans
December 31,		Non-U.S. Plans
December 31,
 2021202020212020
Discount rate2.95%2.60%2.14%1.53%
Rate of increase in compensation levels—%3.00%3.14%3.11%

As of December 31, 2021 and 2020, our total accumulated benefit obligations, as well as our pension plan obligations (projected benefit obligations (PBO) and accumulated benefit obligations (ABO)) in excess of the fair value of the related plan assets, for our U.S. and foreign plans were as follows:
 U.S. Plans
December 31,		Non-U.S. Plans
December 31,		Total
December 31,
 202120202021202020212020
 (In thousands)
Total accumulated benefit obligations$1,825,811 $1,940,549 $515,974 $566,177 $2,341,785 $2,506,726 
Plans with pension obligations in excess of plan assets:
PBO1,825,811 1,940,704 10,420 9,848 1,836,231 1,950,552 
ABO1,825,811 1,940,549 8,193 7,995 1,834,004 1,948,544 
Fair value of plan assets1,661,122 1,681,598 — — 1,661,122 1,681,598 

Investment Policy and Fair Value of Plan Assets 

Our pension investment strategy is to reduce the effects of future volatility on the fair value of our pension assets relative to our pension obligations. We increase our allocation of high quality, longer-term fixed income securities and reduce our allocation of equity investments as the funded status of the plans improve. The plans utilize several investment strategies, including passively managed equity and actively and passively managed fixed income strategies. The investment policy establishes targeted allocations for each asset class that incorporate measures of asset and liability risks. Deviations between actual pension plan asset allocations and targeted asset allocations may occur as a result of investment performance and changes in the funded status from time to time. Rebalancing of our pension plan asset portfolios is evaluated periodically and rebalanced if actual allocations exceed an acceptable range. U.S. plans account for approximately 72% of our total pension plan assets. Equity and fixed income securities in our international plans include actively and passively managed mutual funds.

The following table presents the fair value of each major category of pension plan assets and the level of inputs used to measure fair value as of December 31, 2021 and 2020:
 Fair Value Measurements at December 31, 2021
Asset CategoryTotalLevel 1Level 2Level 3
 (In thousands)
Equity securities:
U.S. common collective trusts$191,323 $— $191,323 $— 
Non-U.S. common collective trusts154,625 — 154,625 — 
Fixed income securities:
Corporate bonds72,106 — 72,106 — 
Common collective trusts1,754,158 — 1,754,158 — 
Private equity and hedge funds121,890 — — 121,890 
Total$2,294,102 $— $2,172,212 $121,890 
 
 Fair Value Measurements at December 31, 2020
Asset CategoryTotalLevel 1Level 2Level 3
 (In thousands)
Equity securities:
U.S. common collective trusts$371,893 $— $371,893 $— 
Non-U.S. common collective trusts263,023 — 263,023 — 
Fixed income securities:
Corporate bonds98,715 — 98,715 — 
Common collective trusts1,447,225 — 1,447,225 — 
Private equity and hedge funds123,140 — — 123,140 
Total$2,303,996 $— $2,180,856 $123,140 

The following is a description of the valuation methodologies used for our pension assets as well as the level of input used to measure fair value:

Equity securities — These investments include common and preferred stocks and index common collective trusts that track U.S. and foreign indices. The common collective trusts were valued at the unit prices established by the funds’ sponsors based on the fair value of the assets underlying the funds. Since the units of the funds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy.

Fixed income securities — These investments include investment grade bonds of U.S. issuers from diverse industries, government issuers, index common collective trusts that track the Barclays Aggregate Index and other fixed income investments (primarily mortgage-backed securities). Fair values for the corporate bonds were valued using third-party pricing services. These sources determine prices utilizing market income models which factor in, where applicable, transactions of similar assets in active markets, transactions of identical assets in infrequent markets, interest rates, bond or credit default swap spreads and volatility. Since the corporate bonds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy. The common collective trusts were valued at the unit prices established by the funds’ sponsors based on the fair value of the assets underlying the funds. Since the units of the funds are not actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy. The other investments are not actively traded and fair values are estimated using bids provided by brokers, dealers or quoted prices of similar securities with similar characteristics or pricing models. Therefore, the other investments have been classified within Level 2 of the fair value hierarchy.

Private equity and hedge funds — These investments represent limited partnership interests in private equity and hedge funds. The partnership interests are valued by the general partners based on the underlying assets in each fund. The limited partnership interests are valued using unobservable inputs and have been classified within Level 3 of the fair value hierarchy.

The following table presents a summary of changes in the fair value of the pension plans’ Level 3 assets for 2021 and 2020: 
20212020
 (In thousands)
Beginning balance at January 1$123,140 $118,218 
Return on plan assets:
Relating to assets still held at the reporting date24,842 8,969 
Relating to assets sold during the period— — 
Purchases, sales, settlements and expenses(26,092)(4,047)
Ending balance at December 31$121,890 $123,140 
Funding Policy and Contributions

The funding policy for these plans is to make contributions based on annual service costs plus amortization of unfunded past service liability, but not greater than the maximum allowable contribution deductible for federal income tax purposes. We may, from time to time, make voluntary contributions to our pension plans, which exceed the amount required by statute. The majority of the plans’ assets are invested in a master trust that, in turn, is invested primarily in commingled funds whose investments are listed stocks and bonds. During 2021, total global pension contributions were $7 million compared with $136 million in 2020. We estimate total 2022 required contributions to our pension plans to be approximately $6 million, and we do not expect to make voluntary contributions.
Estimated Future Benefits Payments

The following table details pension benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:
 (In thousands)
2022$114,235 
2023115,699 
2024118,280 
2025121,222 
2026123,523 
2027-2031630,876 

Savings Plans
Employees who do not actively participate in pension plans and are not covered by union-administered plans are generally eligible to participate in enhanced savings plans. These plans provide for (1) a company contribution even if employees do not make contributions for employees hired before January 1, 2016, (2) a company match of employee contributions of eligible pay, subject to tax limits and (3) a discretionary company match. Savings plan costs totaled $45 million, $40 million and $39 million in 2021, 2020 and 2019, respectively.

Deferred Compensation and Long-Term Compensation Plans
We have deferred compensation plans that permit eligible U.S. employees, officers and directors to defer a portion of their compensation. The deferred compensation liability, including Ryder matching amounts and accumulated earnings, was $97 million and $83 million as of December 31, 2021 and 2020, respectively.

We have established grantor trusts (Rabbi Trusts) to provide funding for benefits payable under the supplemental pension plan, deferred compensation plans and long-term incentive compensation plans. The assets held in the trusts were $98 million and $84 million as of December 31, 2021 and 2020, respectively. The Rabbi Trusts’ assets consist of short-term cash investments and a managed portfolio of equity securities, including our common stock. These assets, except for the investment in our common stock, are included in “Sales-type leases and other assets” because they are available to our general creditors in the event of insolvency. The equity securities are classified as trading securities and stated at fair value. The realized and unrealized investment income (loss) recognized in "Miscellaneous (income) loss, net" were not material for 2021, 2020 and 2019. The Rabbi Trusts’ investments in our common stock as of both December 31, 2021 and 2020 were not material.

Investments held in Rabbi Trusts are assets measured at fair value on a recurring basis, all of which are considered Level 1 of the fair value hierarchy. The following table presents the asset classes as of December 31, 2021 and 2020:
 December 31,
 20212020
 (In thousands)
Cash and cash equivalents$21,457 $24,573 
U.S. equity mutual funds53,449 39,066 
Foreign equity mutual funds11,452 8,389 
Fixed income mutual funds9,648 10,269 
Total investments held in Rabbi Trusts$96,006 $82,297