v3.25.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans

10. Employee Benefit Plans

We have benefit plans covering substantially all our employees. Defined-contribution retirement plans cover most of the U.S. and Canadian employees, and benefits are generally based on employee deferrals and matching on those employee contributions. We also have defined contribution plans in Norway and the United Kingdom. For the years ended December 31, 2025, 2024 and 2023, expenses for defined-contribution retirement plans were $90 million, $85 million, and $84 million, respectively, and all funding is current.

The Company offers a benefit plan providing retiree medical coverage in the United States, and as of December 31, 2025, approximately 8,900 employees are eligible for this coverage. In addition, approximately 600 U.S. retirees and/or spouses participate in plans that provide post-retirement healthcare and/or life insurance benefits.

The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United States, United Kingdom, Norway, Germany and the Netherlands and defined postretirement plans in the United States, using a measurement date of December 31, 2025 and 2024, is as follows (in millions):

 

 

Pension benefits

 

 

Postretirement benefits

 

At year-end

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Benefit obligation at beginning of year

 

$

184

 

 

$

206

 

 

$

43

 

 

$

48

 

Service cost

 

 

—

 

 

 

—

 

 

 

2

 

 

 

2

 

Interest cost

 

 

8

 

 

 

8

 

 

 

2

 

 

 

3

 

Actuarial gain

 

 

(9

)

 

 

(13

)

 

 

(2

)

 

 

(2

)

Benefits paid

 

 

(11

)

 

 

(11

)

 

 

(5

)

 

 

(6

)

Exchange rate loss (gain)

 

 

17

 

 

 

(6

)

 

 

—

 

 

 

—

 

Settlements

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(2

)

Benefit obligation at end of year

 

$

186

 

 

$

184

 

 

$

40

 

 

$

43

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

173

 

 

$

180

 

 

$

—

 

 

$

—

 

Actual return

 

 

(12

)

 

 

6

 

 

 

—

 

 

 

—

 

Benefits paid

 

 

(11

)

 

 

(11

)

 

 

(5

)

 

 

(6

)

Company contributions

 

 

2

 

 

 

2

 

 

 

5

 

 

 

8

 

Exchange rate gain (loss)

 

 

14

 

 

 

(4

)

 

 

—

 

 

 

—

 

Settlements

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(2

)

Fair value of plan assets at end of year

 

$

163

 

 

$

173

 

 

$

—

 

 

$

—

 

Funded status

 

$

(23

)

 

$

(11

)

 

$

(40

)

 

$

(43

)

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated benefit obligation at end of year

 

$

150

 

 

$

183

 

 

 

 

 

 

 

Liabilities associated with the funded status of the defined benefit pension plans are included in the balances of accrued liabilities and other liabilities in the accompanying Consolidated Balance Sheets.

Defined Benefit Pension Plans

Net periodic benefit cost for our defined benefit pension plans aggregated $4 million, $3 million, and $2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Assumed long-term rates of return on plan assets, discount rates and rates of compensation increases vary for the different plans according to the local economic conditions. The assumption rates used for benefit obligations are as follows:

 

Year Ended December 31,

 

 

2025

 

2024

Discount rate:

 

 

 

 

United States plan

 

4.40% - 4.90%

 

4.90%

International plans

 

3.80% - 5.40%

 

3.40% - 5.40%

 

 

 

 

Salary increase:

 

 

 

 

United States plan

 

N/A

 

N/A

International plans

 

2.10% - 2.90%

 

2.50% - 3.50%

 

The assumption rates used for net periodic benefit costs are as follows:

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

Discount rate:

 

 

 

 

 

 

United States plan

 

4.90%

 

5.50% - 5.60%

 

4.74% - 5.20%

International plans

 

3.40%-5.40%

 

3.20% - 4.50%

 

3.30% - 4.80%

Salary increase:

 

 

 

 

 

 

United States plan

 

N/A

 

N/A

 

N/A

International plans

 

2.50%-3.50%

 

2.50% - 3.75%

 

2.50% - 3.75%

Expected return on assets:

 

 

 

 

 

 

United States plan

 

N/A

 

N/A

 

4.74%

International plans

 

3.20%-5.10%

 

3.20% - 5.40%

 

3.20% - 4.90%

In determining the overall expected long-term rate of return for plan assets, the Company takes into consideration the historical experience as well as future expectations of the asset mix involved. As different investments yield different returns, each asset category is reviewed individually and then weighted for significance in relation to the total portfolio.

The majority of our plans have projected benefit obligations in excess of plan assets.

The Company expects to pay future benefit amounts on its pension plans of approximately $12 million for each of the next five years and aggregate payments of $126 million.

Plan Assets

The Company and its investment advisers collaboratively reviewed market opportunities using historic and statistical data, as well as the actuarial valuation reports for the plans, to ensure that the levels of acceptable return and risk are well-defined and monitored. Currently, the Company’s management believes that there are no significant concentrations of risk associated with plan assets. Our pension investment strategy worldwide prohibits a direct investment in our own stock.

The following table sets forth by level, within the fair value hierarchy, the plan’s assets carried at fair value (in millions):

 

 

Fair Value Measurements

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2024:

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Bonds

 

 

90

 

 

 

—

 

 

 

90

 

 

 

—

 

Other (insurance contracts)

 

 

83

 

 

 

—

 

 

 

20

 

 

 

63

 

Total fair value measurements

 

$

173

 

 

$

—

 

 

$

110

 

 

$

63

 

December 31, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Bonds

 

 

74

 

 

 

—

 

 

 

74

 

 

 

—

 

Other (insurance contracts)

 

 

89

 

 

 

—

 

 

 

5

 

 

 

84

 

Total fair value measurements

 

$

163

 

 

$

—

 

 

$

79

 

 

$

84

 

 

Level 3 inputs are unobservable (i.e., supported by little or no market activity). Level 3 inputs include management’s own judgment about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The return on assets for Level 3 plan assets are immaterial for all periods presented.