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PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS
 12 Months Ended
Dec. 31, 2024
Postemployment Benefits [Abstract]  
PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS NOTE 17 - PENSION AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS
The Group has a number of pension, other post-employment benefits and other long-term employee benefit plans. Some
of these plans are defined contribution plans and some are defined benefit plans, with assets held in separate trustee-
administered funds. Benefits paid through pension trusts are sufficiently funded to ensure the payment of benefits to retirees
when they become due.
Actuarial valuations are reflected in the Consolidated Financial Statements as described in Note 1 - General information
and summary of significant accounting policies.
17.1 Description of defined benefits plans
Pension plans
Constellium’s pension obligations are in the U.S., Switzerland, Germany and France. Pension benefits are generally
based on the employee’s service and highest average eligible compensation before retirement and are periodically adjusted for
cost of living increases, either by company practice, collective agreement or statutory requirement. Benefit plans in the U.S.,
Switzerland and France are funded in accordance with applicable requirements in their respective jurisdictions.
Other post-employment benefits (OPEB)
The Group provides healthcare and life insurance benefits to retired employees and in some cases to their beneficiaries
and covered dependents, mainly in the U.S. Eligibility for coverage depends on certain age and service criteria. These benefit
plans are unfunded.
Other long-term employee benefits
Other long-term employee benefits mainly include jubilees in France, Germany and Switzerland and other long-term
disability benefits in the U.S. These benefit plans are unfunded.
17.2 Actuarial assumptions
Pension and other post-employment benefit obligations were updated based on the discount rates applicable at December
31, 2024.
At December 31,
2024
2023
2022
Rate of
increase
in
salaries
Discount rate
Expected
return
rate (A)
Rate of
increase
in
salaries
Discount rate
Expected
return
rate (A)
Rate of
increase
in
salaries
Discount rate
Expected
return
rate (A)
Pension
2.13%
3.09%
4.27%
2.23%
3.11%
4.40%
2.28%
3.65%
3.42%
OPEB
4.00%
5.46%
n/a
4.00%
4.82%
n/a
3.97%
4.98%
n/a
(A)Expected return rates applicable at beginning of year.
For both pension and healthcare plans, the post-employment mortality assumptions allow for future improvements in life
expectancy.
The other financial assumptions used for retirement plans in France and Germany is the rate of increase in pensions
which amounted to 2.00% at December 31, 2024, 2023 and 2022.
The other main financial assumptions used for the OPEB healthcare plans, which are predominantly in the United States
were:
•Medical trend rate for pre-65 salaried healthcare plans: 8.60% starting in 2025 decreasing gradually to 5.35% in
2033 and stable onwards,
•Claims costs based on Company experience.
17.3 Amounts recognized in the Consolidated Balance Sheets
At December 31,
2024
2023
(in millions of U.S. dollar)
Pension
Benefits
OPEB and
Other
Benefits
Total
Pension
Benefits
OPEB and
Other
Benefits
Total
Present value of funded obligation
664
—
664
720
—
720
Fair value of plan assets
(520)
—
(520)
(539)
—
(539)
Deficit of funded plans
144
—
144
181
—
181
Present value of unfunded obligation
109
144
253
115
159
274
Net liability arising from defined benefit obligation
253
144
397
296
159
455
of which non-current
245
130
375
288
143
431
of which current
8
14
22
8
16
24
17.4 Net periodic pension and other postretirement benefits cost
Year ended December 31,
2024
2023
2022
(in millions of U.S. dollar)
Pension
OPEB and
Other
Benefits
Pension
OPEB and
Other
Benefits
Pension
OPEB and
Other
Benefits
Current service cost
(18)
(4)
(16)
(6)
(21)
(8)
Interest cost
(24)
(7)
(27)
(7)
(14)
(7)
Expected return on plan assets
22
—
26
—
20
—
Immediate recognition of gains arising over the year
—
—
—
(1)
—
5
Amortization of past service (cost) / gain
2
10
2
10
2
3
Amortization of net actuarial (loss) / gain
(2)
1
1
1
(2)
(1)
Curtailment and settlements
—
—
—
—
—
—
Total net pension and other long-term benefit cost
(20)
—
(14)
(3)
(15)
(8)
17.5 Movement in net defined benefit obligations
Year ended December 31, 2024
Defined benefit obligations
Plan assets
Net defined
benefit
liability
(in millions of U.S. dollar)
Pension
benefits
OPEB and
Other
Benefits
Total
At January 1, 2024
835
159
994
(539)
455
Included in the Consolidated Income Statement
Current service cost
18
4
22
—
22
Interest cost / (income)
24
7
31
(22)
9
Immediate recognition of gains arising over the year
—
—
—
—
—
Included in the Statement of Comprehensive Income
Remeasurements due to:
—actual return less interest on plan assets
—
—
—
(9)
(9)
—changes in financial assumptions
(9)
(7)
(16)
—
(16)
—changes in demographic assumptions
—
—
—
—
—
—experience (gains)/ losses
7
(2)
5
—
5
Effects of changes in foreign exchange rates
(38)
(1)
(39)
22
(17)
Included in the Consolidated Statement of Cash Flows
Benefits paid
(45)
(16)
(61)
37
(24)
Settlement
(24)
—
(24)
24
—
Contributions by the Group
—
—
—
(28)
(28)
Contributions by the plan participants
5
—
5
(5)
—
At December 31, 2024
773
144
917
(520)
397
Year ended December 31, 2023
Defined benefit obligations
Plan Assets
Net defined
benefit
liability
(in millions of U.S. dollar)
Pension
benefits
OPEB and
Other
Benefits
Total
At January 1, 2023
758
164
922
(492)
430
Included in the Consolidated Income Statement
Current service cost
16
6
22
—
22
Interest cost / (income)
27
7
34
(26)
8
Immediate recognition of gains arising over the year
—
1
1
—
1
Included in the Statement of Comprehensive Income
Remeasurements due to:
—actual return less interest on plan assets
—
—
—
(5)
(5)
—changes in financial assumptions
35
2
37
—
37
—changes in demographic assumptions
—
—
—
—
—
—experience (gains)/ losses
4
(5)
(1)
—
(1)
Past service cost
(1)
—
(1)
—
(1)
Effects of changes in foreign exchange rates
36
1
37
(28)
9
Included in the Consolidated Statement of Cash Flows
Benefits paid
(42)
(16)
(58)
39
(19)
Contributions by the Group
—
—
—
(22)
(22)
Contributions by the plan participants
5
—
5
(5)
—
Disposed of through business combination
(3)
(1)
(4)
—
(4)
At December 31, 2023
835
159
994
(539)
455
Movements in net defined benefit obligations reported in Other Comprehensive Income in the years ended December 31,
2024 and 2023, primarily reflected the impact of changes in discount rates (see note 17.2 Actuarial assumptions), the difference
between actual returns and interest on plan assets and the impact of changes in foreign exchange rates. The amount of
remeasurements included in AOCI expected to be recognized in net income in the following year is $14 million.
17.6 Plan asset categories
Investment policies and strategies
The assets of the Group’s pension plans are managed to meet the future expected benefit liabilities of the plans over the
long term by investing in diversified portfolios. The assets are managed by professional investment firms. The Group’s overall
investment strategy is to achieve target allocations for pension assets of 22% to 33% for equity, 42% to 56% for fixed income,
10% to 22% for property, and 3% to 9% for other investments. As a result of the company’s diversified investment policy, there
were no significant concentrations of risk.
The expected long-term rate of return on plan assets reflects management’s expectations of long-term average rates of
return on funds invested to provide for benefits included in the projected benefit obligations. The Group’s approach has
emphasized the long-term nature of the return estimate such that the return assumption is not changed significantly unless there
are fundamental changes in capital markets that affect the Group’s expectations for returns over an extended period of time. The
Group’s systematic methodology for determining the long-term rate of return for the company’s investment strategies supports
its long-term expected return assumptions. Expected return rates for the years ended December 31, 2024,  2023 and 2022 are
presented in Note 17.2 Actuarial assumptions.
As of December 31, 2024 and 2023 all of the plan assets were measured at fair value using the net asset value (or its
equivalent) except as noted and consisted of the following:
At December 31,
(in millions of U.S. dollar)
2024
2023
Cash & cash equivalents
4
6
Equities
143
150
Fixed income
253
263
Property
86
85
Other
34
35
Total fair value of plan assets
520
539
17.7 Cash flows
Expected contributions to pension and OPEB and other long-term benefit plans amount to $30 million and $14 million,
respectively, for the year ending December 31, 2025.
Future benefit payments expected to be paid either by pension funds or directly by the Group to beneficiaries are as
follows:
Estimated benefits payments
(in millions of U.S. dollar)
Pensions
OPEB and Other
Benefits
Year ended December 31,
2025
43
14
2026
42
14
2027
44
13
2028
47
12
2029
50
12
2030 to 2034
242
55
The weighted-average maturity of the defined benefit obligations was 11.7 years and 11.5 years, for the years ended
December 31, 2024 and 2023.