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Employee Benefit and Retirement Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit and Retirement Plans Employee Benefit and Retirement Plans
The Company and its subsidiaries have noncontributory pension, profit sharing and contributory 401(k) plans covering substantially all of their international and domestic employees. Pension plan benefits are generally based on years of service and/or compensation. The Company’s funding policy is to contribute not less than the minimum amounts required by the Employee Retirement Income Security Act of 1974, as amended, the Internal Revenue Code of 1986, as amended, or foreign statutes to ensure that plan assets will be adequate to provide retirement benefits.

The funded status of the Company’s defined benefit pension plans and postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at December 31, the measurement date. For defined benefit pension and postretirement benefit plans, the benefit obligation is the projected benefit obligation (“PBO”), which represents the actuarial present value of benefits expected to be paid upon retirement based on employee services already rendered and estimated future compensation levels. The fair value of plan assets represents the current market value of assets held for the sole benefit of participants. Over funded plans, with the fair value of plan assets exceeding the benefit obligation, are aggregated and recorded as a prepaid pension asset equal to this excess. Underfunded plans, with the benefit obligation exceeding the fair value of plan assets, are aggregated and recorded as a retirement and postretirement benefit obligation equal to this excess. The current portion of the retirement and postretirement benefit obligations represents the actuarial present value of benefits payable in the next 12 months exceeding the fair value of plan assets, measured on a plan-by-plan basis. This obligation is recorded in other accrued liabilities in the Consolidated Balance Sheets. Net periodic pension and postretirement benefit cost/(income) is recorded in the Consolidated Statements of Operations and includes service cost, interest cost, expected return on plan assets, amortization of prior service costs/(credits) and (gains)/losses previously recognized as a component of AOCL and amortization of the net transition asset remaining in AOCL. The service cost component of net benefit cost is recorded in cost of products sold and SG&A in the Consolidated Statements of Operations (unless eligible for capitalization) based on the employees’ respective functions. The other components of net benefit cost are presented separately from service cost within other (income) expense, net in the Consolidated Statements of Operations. In 2025, the amount of AOCL expected to be recognized related to defined benefit pension and postretirement benefit plans is expense of $2 million and income of $3 million, respectively.
(Gains)/losses and prior service costs/(credits) are recognized as a component of OCL in the Consolidated Statements of Comprehensive Income (Loss) as they arise. Those (gains)/losses and prior service costs/(credits) are subsequently recognized as a component of net periodic cost/(income) pursuant to the recognition and amortization provisions of applicable accounting guidance. (Gains)/losses arise as a result of differences between actual experience and assumptions or as a result of changes in actuarial assumptions. Prior service costs/(credits) represent the cost of benefit changes attributable to prior service granted in plan amendments.

The measurement of benefit obligations and net periodic cost/(income) is based on estimates and assumptions approved by the Company’s management. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest crediting rates and mortality rates.

The Company has supplemental executive retirement plans (“SERPs”), which includes features of both nonqualified defined benefit and defined contribution plans pursuant to which the Company will pay supplemental benefits to certain key employees upon retirement based upon the employees’ years of service and compensation. The SERPs are primarily funded through a trust agreement with a trustee that owns life insurance policies on both active and former key employees as well as cash and mutual funds. The life insurance contracts are accounted for using the investment method. All premiums paid and proceeds received associated with the life insurance policies are included as investing activities in the Consolidated Statements of Cash Flows. The life insurance contracts had a cash surrender value of $142 million at December 31, 2024 and $139 million at December 31, 2023. The value of the Company’s investments in the life insurance contracts at their cash surrender value, cash and mutual funds as of December 31, 2024 and 2023, was $148 million and $141 million, respectively, and is included in other assets in the Consolidated Balance Sheets. The projected benefit obligation was $86 million and $95 million at December 31, 2024 and 2023, respectively, and is included in other accrued liabilities in the Consolidated Balance Sheets. The life insurance policies on both active and former key employees had aggregate net death benefits of $258 million as of December 31, 2024. The SERP liabilities are disclosed in the table hereafter; however, the value of the Company’s investments in the life insurance contracts, cash and mutual funds are excluded from the table, as they do not qualify as plan assets.

The Company’s matching contributions to the Company’s contributory 401(k) plans were $34 million for 2024 and $37 million for each of 2023 and 2022.

U.K. Defined Benefit Plan

In January 2024, the Company received a court ruling with respect to determining the benefits certain pensioners related to an international subsidiary were entitled to receive upon converting their defined benefit to a defined contribution. During the first quarter of 2024, the legal proceeding was concluded and the Company reduced its underlying pension obligation by approximately $11 million, with a corresponding offset to AOCL.

In April 2023, the Company completed a “buy-out” of approximately 7% of the PBO of one of its U.K. defined benefit pension plans (“U.K. Plan”). The “buy-out” was completed by the execution of a Deed Poll Agreement and a Deed of Assignment with an insurance company. In September 2023, the Company completed the “buy-out” of the remaining PBO of the aforementioned plan through the execution of a Deed Poll Agreement and a Deed of Assignment with an insurance company. In connection with these transactions, the Company recorded a pretax settlement loss of $66 million in other (income) expense, net, in the Company’s Consolidated Statements of Operations, related to the recognition of previously unrecognized actuarial losses reclassified from AOCL to losses.

U.S. Defined Benefit Plan Partial Buyout

In October 2023, the Company entered into an agreement with an insurance company to purchase a group annuity contract to settle approximately $163 million of PBO for approximately 55% of retirees in one of its U.S. defined benefit pension plans. In November 2023, the Company completed the “buy-out” and in connection with the transaction, the Company recorded a pretax settlement loss of $60 million in other (income) expense, net, in the Company’s Consolidated Statements of Operations, related to the recognition of previously unrecognized actuarial losses reclassified from AOCL to losses. The transaction or the transfer of the pension liability to the insurance company was funded with the plan’s existing assets. In April 2024, the plan received a refund of approximately $7 million from the insurance company as a result of various data changes from the original annuity estimate. The refund is an asset of the plan.
Defined Benefit Pension Plans

The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company’s qualified noncontributory defined benefit pension plans as well as the Company’s material nonqualified retirement plans including its other postretirement benefit plans and SERPs at December 31, (dollars in millions):
Pension BenefitsPostretirement BenefitsSERPs
United StatesInternational
Change in benefit obligation:20242023202420232024202320242023
Benefit obligation at beginning of year$617 $836 $244 $417 $26 $30 $95 $100 
Service cost— — 3 3 — — — — 
Interest cost29 39 9 15 1 1 4 5 
Actuarial (gain) loss— (26)(4)(13)2 (2)(2)1 
Amendments— — (12)— — — — — 
Currency translation— — (10)14 — — — — 
Benefits paid(48)(68)(13)(20)(4)(3)(11)(11)
Curtailments, settlements and other— (164)(9)(172)— — — — 
Benefit obligation at end of year (1)
$598 $617 $208 $244 $25 $26 $86 $95 
Change in plan assets:
Fair value of plan assets at beginning of year (2)
668 843 176 354 — — — — 
Actual return on plan assets14 57 1 (10)— — — — 
Contributions— — 8 12 4 3 11 11 
Currency translation— — (6)13 — — — — 
Benefits paid(48)(68)(13)(20)(4)(3)(11)(11)
Settlements and other— (164)(6)(173)— — — — 
Fair value of plan assets at end of year (2)
$634 $668 $160 $176 $— $— $— $— 
Funded status at end of year$36 $51 $(48)$(68)$(25)$(26)$(86)$(95)
Amounts recognized in the Consolidated Balance Sheets:
Prepaid benefit cost, included in other assets$36 $51 $24 $23 $— $— $— $— 
Accrued current benefit cost—other accrued liabilities— — (4)(4)(4)(4)(10)(11)
Accrued noncurrent benefit cost— other noncurrent liabilities— — (68)(87)(21)(22)(76)(84)
Net amount recognized$36 $51 $(48)$(68)$(25)$(26)$(86)$(95)
Assumptions
Weighted-average assumptions used to determine benefit obligation:
Discount rate5.51 %4.94 %3.80 %3.82 %4.94 %4.84 %5.36 %4.91 %
Long-term rate of compensation increase— %— %2.39 %2.37 %— %— %— %3.00 %
Current health care cost trend rates— %— %— %— %6.31 %5.87 %— %— %
Ultimate health care cost trend rates— %— %— %— %4.84 %4.50 %— %— %
(1)The accumulated benefit obligation for all defined benefit pension plans was $799 million and $854 million at December 31, 2024 and 2023, respectively. The accumulated benefit obligation for the SERPs was $86 million and $95 million at December 31, 2024 and 2023, respectively.
(2)The preceding table reflects the benefit obligation associated with the Company’s pension benefits including its postretirement benefit plans and the SERPs. There are no plan assets associated with the Company’s postretirement benefit plans. The SERPs are primarily funded through a trust agreement with a trustee that owns life insurance policies on both active and former key employees as well as cash and mutual funds. As of December 31, 2024 and 2023, the value of the Company’s investments in the life insurance contracts at their cash surrender value, cash and mutual funds was $148 million and $141 million, respectively, which have been excluded from the fair value of plan assets, as they do not qualify as plan assets. Such asset values exceeded the SERPs obligation by $62 million and $46 million as of December 31, 2024 and 2023, respectively.

The current healthcare cost trend rate gradually declines through 2038 to the ultimate trend rate and remains level thereafter.

Summary of under-funded or non-funded pension benefit plans with projected benefit obligations in excess of plan assets at December 31, (in millions):
Pension Benefits
20242023
Projected benefit obligation$184 $315 
Fair value of plan assets (1)
27 129 
Summary of pension plans with accumulated obligations in excess of plan assets at December 31, (in millions):
Pension Benefits
20242023
Accumulated benefit obligation$175 $309 
Fair value of plan assets (1)
22 129 

(1)The preceding tables reflect the benefit obligation associated with the Company’s nonqualified pension benefits including its postretirement benefit plans and the SERPs. There are no plan assets associated with the Company’s postretirement benefit plans. The SERPs are primarily funded through a trust agreement with a trustee that owns life insurance policies on both active and former key employees as well as cash and mutual funds, which are not reflected in the fair value of plan assets above.

Pension and Postretirement Benefit Expense

The components of pension, postretirement benefit and SERPs expense for the periods indicated are as follows (dollars in millions):
Pension Benefits
United StatesInternational
202420232022202420232022
Service cost$— $— $— $3 $3 $4 
Interest cost29 39 23 9 15 8 
Expected return on plan assets(47)(52)(47)(6)(11)(6)
Amortization:
Prior service cost — — — 1 3 1 
Net actuarial loss— 3 14 2 3 2 
Curtailment, settlement and termination costs— 60 — (1)66 — 
Total (income) expense $(18)$50 $(10)$8 $79 $9 
Assumptions
Weighted average assumption used to calculate net periodic cost:
Effective discount rate for benefit obligations4.94 %5.36 %2.65 %3.82 %4.07 %1.61 %
Effective rate for interest on benefit obligations4.85 %5.24 %2.14 %3.75 %4.00 %1.46 %
Effective rate for service cost— %— %— %2.57 %3.20 %0.96 %
Effective rate for interest on service cost— %— %— %2.48 %3.06 %0.78 %
Long-term rate of return on plan assets6.00 %5.88 %4.75 %3.99 %3.61 %1.06 %
Long-term rate of compensation increase— %— %— %2.37 %2.41 %2.27 %
Postretirement BenefitsSERPs
202420232022202420232022
Interest cost$1 $1 $1 $4 $5 $3 
Amortization:
Net actuarial (gain) loss(5)(6)(5)— — 1 
Total (income) expense$(4)$(5)$(4)$4 $5 $4 
Assumptions
Weighted average assumption used to calculate net periodic cost:
Effective discount rate for benefit obligations4.84 %5.11 %2.34 %4.91 %5.18 %2.56 %
Effective rate for interest on benefit obligations4.81 %5.04 %1.77 %4.85 %5.09 %2.04 %
Effective rate for service cost4.99 %4.97 %1.98 %— %— %2.94 %
Effective rate for interest on service cost4.90 %4.90 %1.67 %— %— %2.97 %
Long-term rate of compensation increase— %— %— %3.00 %3.00 %3.00 %

The components of net periodic pension, postretirement and SERPs costs other than the service cost component are included in other (income) expense, net in the Consolidated Statements of Operations.

Plan Assets

The Company employs a total return investment approach for its pension plans whereby a mix of equities and fixed income investments are used to optimize the long-term return of pension plan assets. The intent of this strategy is to minimize plan expenses by outperforming plan liabilities over the long run. Risk tolerance is established through careful consideration of plan liabilities,
plan funded status, and the Company’s financial condition. The domestic investment portfolios contain a diversified blend of equity and fixed-income investments. The domestic equity investments are diversified across geography and market capitalization through investments in U.S. large-capitalization stocks, U.S. small-capitalization stocks and international securities. The domestic fixed income investments are primarily comprised of investment-grade and high-yield securities through investments in corporate and government bonds, government agencies and asset-backed securities. The Level 1 investments are primarily based upon quoted market prices. The domestic Level 3 investments are primarily comprised of insurance contracts valued at contract value. The investments excluded from the fair value hierarchy are net asset value-based (“NAV-based”) hedge fund investments that generally have a redemption frequency of 90 days or less, with various redemption notice periods that are generally less than a month. The notice periods for certain investments may vary based on the size of the redemption. The international Level 2 investments are primarily comprised of insurance contracts whose fair values are estimated based on the future cash flows to be received under the contracts discounted to the present using a discount rate that approximates the discount rate used to measure the associated pension plan liabilities. The international Level 3 investments are primarily comprised of insurance contracts valued at contract value. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews.

The expected long-term rate of return for plan assets is based upon many factors, including expected asset allocations, historical asset returns, current and expected future market conditions, risk and active management premiums. The expected long-term rate of return is adjusted when there are fundamental changes in expected returns on the Company’s defined benefit pension plan’s investments. The target asset allocations for the Company’s domestic pension plans may vary by plan, based in part on plan demographics, funded status and liability duration. In general, the Company’s target asset allocations are as follows: equities approximately 25%; fixed income approximately 70%; multi-sector fixed-income approximately 5% and nominal for cash, alternative investments and other at December 31, 2024. Actual asset allocations may vary from the targeted allocations for various reasons, including market conditions and the timing of transactions. The Company maintains numerous international defined benefit pension plans. The asset allocations for the international investment may vary by plan and jurisdiction and are primarily based upon the plan structure and plan participant profile.
The composition of domestic pension plan assets at December 31, 2024 and 2023 is as follows (in millions):
Plan Assets — Domestic Plans
December 31, 2024
Fair Value Measurements
Asset CategoryLevel 1Level 2Level 3SubtotalNAV-based assetsTotal
Equity securities and funds$— $— $— $— $121 $121 
Fixed income securities and funds249 — — 249 252 501 
Alternative investments— — — — 1 1 
Cash and other9 2 — 11 — 11 
Total$258 $2 $— $260 $374 $634 
Plan Assets — Domestic Plans
December 31, 2023
Fair Value Measurements
Asset CategoryLevel 1Level 2Level 3SubtotalNAV-based assetsTotal
Equity securities and funds$— $— $— $— $70 $70 
Fixed income securities and funds250 — — 250 329 579 
Alternative investments— — — — 2 2 
Cash and other15 2 — 17 — 17 
Total$265 $2 $— $267 $401 $668 
The composition of international pension plan assets at December 31, 2024 and 2023 is as follows (in millions):

Plan Assets — International Plans
December 31, 2024
Fair Value Measurements
Asset CategoryLevel 1Level 2Level 3SubtotalNAV-based assetsTotal
Equity securities and funds$4 $4 $— $8 $— $8 
Fixed income securities and funds3 5 — 8 — 8 
Cash, insured assets and other3 131 10 144 — 144 
Total$10 $140 $10 $160 $— $160 
Plan Assets — International Plans
December 31, 2023
Fair Value Measurements
Asset CategoryLevel 1Level 2Level 3SubtotalNAV-based assetsTotal
Equity securities and funds$3 $4 $— $7 $— $7 
Fixed income securities and funds4 6 — 10 — 10 
Cash, insured assets and other4 145 10 159 — 159 
Total$11 $155 $10 $176 $— $176 
A reconciliation of the change in fair value of the defined benefit plans’ assets using significant unobservable inputs (Level 3) for 2024 and 2023 is as follows (in millions):
Total
Balance at December 31, 2022$194 
Purchases, sales, settlements and other, net(184)
Balance at December 31, 2024 and 2023$10 
Contributions and Estimated Future Benefit Payments
During 2025, the Company expects to make no cash contributions to its domestic defined benefit plan, approximately $6 million to its international defined benefit plans, $4 million to its other postretirement benefit plans and $10 million to its SERPs.
Estimated future benefit payments under the Company’s defined benefit pension plans, other postretirement benefit plans and SERPs are as follows at December 31, 2024 (in millions):
20252026202720282029Thereafter
Pension benefits$67 $66 $68 $67 $67 $315 
Postretirement benefits4 4 3 3 2 9 
SERPs10 10 9 8 8 32