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RETIREMENT BENEFITS | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits [Abstract] |
RETIREMENT BENEFITS | RETIREMENT B ENEFITS We sponsor a number of defined benefit and defined contribution pension plans which cover substantially all U.S. employees, other than union employees covered by multiemployer defined benefit pension plans under collective bargaining agreements. Pension benefits are provided based on either a career average, final pay or years of service formula. With respect to certain hourly employees, pension benefits are provided based on stated amounts for each year of service. Our U.S. salaried pension plans are closed to new employees. We also sponsor other postretirement benefits plans, including unfunded defined benefit health care and life insurance plans, which provide postretirement benefits to certain employees. The plans are contributory, with retiree contributions adjusted annually, and contain cost sharing features including deductibles and coinsurance. Retiree health care benefits are paid as covered expenses are incurred. The changes in benefit obligations and plan assets as well as the funded status of our retirement plans at December 31 were as follows:
| Pension Benefits |  | Other Postretirement Benefits
| 2024 |  | 2023 |  | 2024 |  | 2023
| (Dollars in thousands)
Change in benefit obligation |  |  |  |  |  |  |
Obligation at beginning of year | $ | 698,726 |  |  | $ | 674,104 |  |  | $ | 13,373 |  |  | $ | 14,447 |
Service cost | 8,415 |  |  | 8,573 |  |  | 27 |  |  | 50 |
Interest cost | 33,868 |  |  | 34,725 |  |  | 644 |  |  | 745 |
Actuarial (gains) losses | (18,748) |  |  | 22,938 |  |  | (65) |  |  | 645 |
Special termination benefits | — |  |  | 577 |  |  | — |  |  | — |
Plan amendments | — |  |  | (76) |  |  | (339) |  |  | — |
Curtailment gain | (239) |  |  | — |  |  | — |  |  | (1,103) |
Benefits paid | (62,056) |  |  | (45,006) |  |  | (1,703) |  |  | (1,430) |
Participants’ contributions | — |  |  | — |  |  | 18 |  |  | 19 |
Foreign currency exchange rate changes | (5,995) |  |  | 2,891 |  |  | — |  |  | — |
Obligation at end of year | 653,971 |  |  | 698,726 |  |  | 11,955 |  |  | 13,373 |
Change in plan assets |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | 807,016 |  |  | 764,405 |  |  | — |  |  | — |
Actual return on plan assets | 21,689 |  |  | 84,849 |  |  | — |  |  | — |
Employer contributions | 2,981 |  |  | 2,768 |  |  | 1,685 |  |  | 1,411 |
Participants’ contributions | — |  |  | — |  |  | 18 |  |  | 19 |
Benefits paid | (62,056) |  |  | (45,006) |  |  | (1,703) |  |  | (1,430) |
Fair value of plan assets at end of year | 769,630 |  |  | 807,016 |  |  | — |  |  | — |
Funded status | $ | 115,659 |  |  | $ | 108,290 |  |  | $ | (11,955) |  |  | $ | (13,373) |
Actuarial (gains) losses related to pension benefits were primarily the result of changes in discount rates used to calculate projected benefit obligations.
| Pension Benefits |  | Other Postretirement Benefits
| 2024 |  | 2023 |  | 2024 |  | 2023
| (Dollars in thousands)
Amounts recognized in the consolidated balance sheets |  |  |  |  |  |  |
Non-current assets | $ | 206,800 |  |  | $ | 203,494 |  |  | $ | — |  |  | $ | — |
Current liabilities | (3,009) |  |  | (3,055) |  |  | (1,299) |  |  | (1,389) |
Non-current liabilities | (88,132) |  |  | (92,149) |  |  | (10,656) |  |  | (11,984) |
Net amount recognized | $ | 115,659 |  |  | $ | 108,290 |  |  | $ | (11,955) |  |  | $ | (13,373) |
Amounts recognized in accumulated other comprehensive loss |  |  |  |  |  |  |
Net actuarial loss (gain) | $ | 170,649 |  |  | $ | 176,877 |  |  | $ | (4,443) |  |  | $ | (4,740) |
Prior service cost (credit) | 234 |  |  | 391 |  |  | (340) |  |  | (21) |
Net amount recognized | $ | 170,883 |  |  | $ | 177,268 |  |  | $ | (4,783) |  |  | $ | (4,761) |
The fair value of plan assets for our domestic pension plans was approximately 137 percent and 134 percent of their projected benefit obligations at December 31, 2024 and 2023, respectively. Pension plans with projected benefit obligations in excess of plan assets at December 31, 2024 and 2023 consisted entirely of our international pension benefit plans which are not funded. The projected benefit obligation for our international pension benefit plans was $91.1 million and $95.2 million at December 31, 2024 and 2023, respectively. The accumulated benefit obligation for all pension benefit plans at December 31, 2024 and 2023 was $639.7 million and $685.5 million, respectively. Pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2024 and 2023 consisted entirely of our international pension benefit plans which are not funded. The accumulated benefit obligation for our international pension benefit plans was $86.5 million and $91.8 million at December 31, 2024 and 2023, respectively. The benefits expected to be paid from our pension and other postretirement benefit plans, which reflect future years of service, are as follows (dollars in thousands):
| Pension Benefits |  | Other Postretirement Benefits
2025 | $ | 49,440 |  |  | $ | 1,300 |
2026 | 50,231 |  |  | 1,262 |
2027 | 50,913 |  |  | 1,130 |
2028 | 51,353 |  |  | 1,083 |
2029 | 51,510 |  |  | 1,026 |
2029-2033 | 256,087 |  |  | 4,546 |
| $ | 509,534 |  |  | $ | 10,347 |
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine the benefit obligations at December 31:
| 2024 |  | 2023
Discount rate | 5.7 | % |  | 5.3 | %
Expected return on plan assets | 5.5 | % |  | 5.5 | %
Rate of compensation increase | 2.4 | % |  | 2.4 | %
Health care cost trend rate: |  |  |
Assumed for next year | 5.0 | % |  | 5.0 | %
Ultimate rate | 4.0 | % |  | 4.0 | %
Year that the ultimate rate is reached | 2043 |  | 2043
Our expected return on plan assets is determined by current and expected asset allocation of plan assets, estimates of future long-term returns on those types of plan assets and historical long-term investment performance. Our international pension benefit plans used a discount rate of 3.6 percent as of each of December 31, 2024 and 2023, and a rate of compensation increase of 4.1 percent and 3.9 percent to determine the benefit obligation as of December 31, 2024 and 2023, respectively. The components of the net periodic benefit cost (credit) for each of the years ended December 31 were as follows:
| Pension Benefits |  | Other Postretirement Benefits
| 2024 |  | 2023 |  | 2022 |  | 2024 |  | 2023 |  | 2022
| (Dollars in thousands)
Service cost | $ | 8,415 |  |  | $ | 8,573 |  |  | $ | 12,603 |  |  | $ | 27 |  |  | $ | 50 |  |  | $ | 78 |
Interest cost | 33,868 |  |  | 34,725 |  |  | 20,579 |  |  | 644 |  |  | 745 |  |  | 413 |
Expected return on plan assets | (43,085) |  |  | (40,781) |  |  | (69,132) |  |  | — |  |  | — |  |  | — |
Amortization of prior service cost (credit) | 90 |  |  | 97 |  |  | 222 |  |  | (20) |  |  | (948) |  |  | (1,668) |
Amortization of actuarial losses (gains) | 7,917 |  |  | 11,638 |  |  | 4,635 |  |  | (361) |  |  | (617) |  |  | (298) |
Special termination benefits | — |  |  | 577 |  |  | — |  |  | — |  |  | — |  |  | — |
Curtailment gain | (244) |  |  | — |  |  | — |  |  | — |  |  | (1,103) |  |  | — |
Net periodic benefit cost (credit) | $ | 6,961 |  |  | $ | 14,829 |  |  | $ | (31,093) |  |  | $ | 290 |  |  | $ | (1,873) |  |  | $ | (1,475) |
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine net periodic benefit cost (credit) for the years ended December 31:
| 2024 |  | 2023 |  | 2022
Discount rate | 5.3 | % |  | 5.6 | % |  | 2.9 | %
Expected return on plan assets | 5.5 | % |  | 5.5 | % |  | 6.9 | %
Rate of compensation increase | 2.4 | % |  | 2.4 | % |  | 2.4 | %
Health care cost trend rate | 5.0 | % |  | 5.0 | % |  | 4.7 | %
Our international pension benefit plans used a discount rate of 3.6 percent, 4.2 percent and 1.4 percent for the years ended December 31, 2024, 2023 and 2022, respectively, and a rate of compensation increase of 4.1 percent, 3.9 percent and 3.8 percent to determine net periodic benefit cost (credit) for the years ended December 31, 2024, 2023 and 2022, respectively. M ULTIEMPLOYER P ENSION P LANS In 2024, we participated in two multiemployer pension plans which provide defined benefits to certain of our union employees. The aggregate amount contributed to these plans and charged to pension cost in 2024, 2023 and 2022 was $3.2 million, $3.6 million and $3.6 million, respectively. In the third quarter of 2022, we completely withdrew from the United Food & Commercial Workers - Local One Pension Fund, or the UFCW Pension Fund. As a result of our complete withdrawal from the UFCW Pension Fund, we are required to pay an aggregate withdrawal liability of $2.8 million to the UFCW Pension Fund in quarterly installments through 2042. The risks of participating in multiemployer plans are different from the risks of single-employer plans in the following respects: (i) assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if we cease to have an obligation to contribute to the multiemployer plan in which we had been a contributing employer, we may be required to pay to the plan an amount (referred to as a withdrawal liability) based on the underfunded status of the plan and on our historical participation in the plan prior to the cessation of our obligation to contribute. Further information on the multiemployer plans we participated in during the years ended December 31, 2024, 2023 and 2022 is as follows:
Pension Fund |  | EIN/Pension Plan Number |  | Pension Protection Act Zone Status |  |  | FIP / RP Status Pending / Implemented |  | Contributions |  | Surcharge Imposed
2024 |  |  | 2023 |  |  | 2024 |  | 2023 |  | 2022 |
|  |  |  |  |  |  |  |  |  |  |  | (Dollars in thousands) |  |
United Food & Commercial Workers — Local One Pension Fund (1) |  | 16-6144007/001 |  | Red | (2) |  | Red | (2) |  | Implemented |  | — |  |  | — |  |  | 141 |  |  | No
IAM National Pension Fund (3) |  | 51-6031295/002 |  | Red |  |  | Red |  |  | Implemented |  | 2,624 |  |  | 2,626 |  |  | 2,511 |  |  | No
Western Conference of Teamsters Pension Plan (4) |  | 91-6145047/001 |  | Green |  |  | Green |  |  | N/A |  | 580 |  |  | 1,008 |  |  | 906 |  |  | No
Total Contributions |  |  |  |  |  |  |  |  |  |  |  | $ | 3,204 |  |  | $ | 3,634 |  |  | $ | 3,558 |  |  |
______________________ (1) In 2022, we completely withdrew from this pension fund. (2) Under the Multiemployer Pension Reform Act of 2014, the status of this pension fund was critical and declining, as defined under such Act. As of January 1, 2023, the pension fund actuary had projected insolvency for this pension fund in 2026. In August 2023, this pension fund received $788 million in taxpayer assistance under the American Rescue Plan Act of 2021, and, therefore, insolvency for this pension fund should be delayed. (3) The applicable collective bargaining agreements related to this pension fund expire at various times through October 15, 2027. Although this pension fund was formally certified in the yellow zone in 2019, the trustees of this pension fund elected voluntarily to place this pension fund in the red zone to take advantage of certain provisions of the Pension Protection Act even though this pension fund had a funded status of 84 percent, 87 percent and 87 percent at the beginning of 2021, 2022 and 2023, respectively. (4) The applicable collective bargaining agreements related to this pension plan expire at various times through June 30, 2026. The “EIN/Pension Plan Number” column provides the Employer Identification Number and the three digit plan number assigned to a plan by the Internal Revenue Service. The most recent Pension Protection Act Zone Status available for 2024 and 2023 is for plan years that ended in 2023 and 2022, respectively. The zone status is based on information provided to us and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone has been determined to be in “critical status,” based on criteria established under the Internal Revenue Code of 1986, as amended (the “Code”), and is generally less than 65 percent funded. A plan in the "green zone" is at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates whether a rehabilitation plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the 2024 plan year. The “Surcharge Imposed” column indicates whether our contribution rate for 2024 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status” in accordance with the requirements of the Code. Our contributions to the IAM National Pension Fund and the Western Conference of Teamsters Pension Plan were less than five percent of total contributions made by all employers to these plans, as reported by these plans for the year ended December 31, 2023, the most recent plan year available. We do not expect our contributions to the IAM National Pension Fund and the Western Conference of Teamsters Pension Plan for the year ended December 31, 2025 to be significantly different from our contributions for the year ended December 31, 2024. D EFINED C ONTRIBUTION P LANS We also sponsor defined contribution plans covering certain employees. Our contributions to these plans are based upon employee contributions and operating profitability. Contributions charged to expense for these plans for the years ended December 31, 2024, 2023 and 2022 were $14.9 million, $16.4 million and $15.4 million, respectively. P LAN A SSETS I NVESTMENT S TRATEGY In 2023, we changed our investment allocations to a liability driven investment strategy that more closely matches plan assets with plan liabilities primarily using long duration fixed income securities. As of December 31, 2024, approximately 83 percent of our plan assets were held in a designated liability-hedging oriented portfolio focused on holding fixed income securities (generally investment grade), and approximately 17 percent of our plan assets were held in a designated growth oriented portfolio focused on holding an allocation of mutual funds and exchange traded funds broadly characterized as a 60 percent/40 percent allocation between equity and fixed income securities. We attempt to mitigate investment risk by reviewing our investment portfolio on at least a quarterly basis, with assets re-allocated as required to adhere to our target allocations. The weighted average asset allocation for our pension plans at December 31, 2024 and 2023 and target allocation for 2024 were as follows:
| Target Allocation |  | Actual Allocation
| 2024 |  | 2023
Fixed income securities | 89 | % |  | 87 | % |  | 88 | %
Equity securities—US | 6 | % |  | 7 | % |  | 6 | %
Equity securities—International | 3 | % |  | 3 | % |  | 3 | %
Cash and cash equivalents | 2 | % |  | 3 | % |  | 3 | %
| 100 | % |  | 100 | % |  | 100 | %
F AIR V ALUE M EASUREMENTS As of December 31, 2024 and 2023, (i) our plan assets classified as fixed income securities were primarily invested in individual corporate bonds and notes and in U.S. government issued securities; (ii) our plan assets classified as equity securities were primarily invested in mutual funds and exchange traded funds; and (iii) our plan assets classified as cash and cash equivalents were primarily invested in short term investment funds which included investments in cash, bank notes, corporate notes, government bills and various short-term fixed income instruments. As of December 31, 2024 and 2023, $220.9 million and $267.8 million, respectively, of our plan assets were classified within Level 1 of the fair value hierarchy (as described in Note 10) and $548.7 million and $539.2 million, respectively, were classified as Level 2 of the fair value hierarchy. The fair value of our plan assets by asset category consisted of the following at December 31:
| 2024 |  | 2023
| (Dollars in thousands)
Fixed income securities | $ | 669,645 |  |  | $ | 708,088 |
Equity securities—US | 51,603 |  |  | 48,237 |
Equity securities—International | 24,127 |  |  | 24,512 |
Cash and cash equivalents | 24,255 |  |  | 26,179 |
| $ | 769,630 |  |  | $ | 807,016 |
C ONCENTRATIONS OF C REDIT R ISK As of December 31, 2024 and 2023, our plan assets were under the management of three investment management companies. No individual investment exceeded ten percent of our total plan assets. E XPECTED C ONTRIBUTIONS Based on current legislation, there are no significant minimum required contributions to our pension benefit plans in 2024. In addition, based on the current funded status of our domestic pension benefit plans we do not expect to make significant contributions to these plans in 2025. However, this estimate may change based on regulatory changes and actual plan asset returns.

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