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Retirement and Deferred Compensation Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Retirement and Deferred Compensation Plans

(9) Retirement and Deferred Compensation Plans

For all of our United States defined benefit and retiree health care plans, we adopted the Society of Actuaries’ Pri-2012 Mortality Table with MP-2021 Mortality Improvement Scale in determining the plans’ benefit obligations as of December 31, 2024.

Defined Benefit Pension Plans

We sponsor qualified and nonqualified pension plans covering permanent employees in several countries. In our Switzerland pension plan, we recognized a partial settlement as a result of local regulations and turnover common to our industry and reclassified pension losses of $3.8, $5.8 and $2.7 in 2024, 2023, and 2022, respectively, net of tax, recorded in other comprehensive loss in the Consolidated Statements of Comprehensive Income. The reconciliation of the changes in the plans’ benefit obligations, the fair value of plan assets and the funded status of the plans are as follows:

 

 

 

United States Plans

 

 

Non-United States Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Benefit Obligation

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation, beginning of year

 

$

19.2

 

 

$

20.5

 

 

$

713.2

 

 

$

632.3

 

Service cost

 

 

—

 

 

 

—

 

 

 

16.5

 

 

 

15.5

 

Interest cost

 

 

0.9

 

 

 

1.0

 

 

 

18.5

 

 

 

20.1

 

Curtailments

 

 

—

 

 

 

—

 

 

 

(2.7

)

 

 

—

 

Settlements

 

 

—

 

 

 

—

 

 

 

(50.9

)

 

 

(66.4

)

Transfers

 

 

—

 

 

 

—

 

 

 

26.5

 

 

 

26.9

 

Actuarial (gain) loss

 

 

—

 

 

 

(0.1

)

 

 

(3.9

)

 

 

43.3

 

Plan participant contributions

 

 

—

 

 

 

—

 

 

 

11.4

 

 

 

12.4

 

Benefits paid

 

 

(2.1

)

 

 

(2.2

)

 

 

(16.0

)

 

 

(14.2

)

Currency exchange rate changes

 

 

—

 

 

 

—

 

 

 

(42.8

)

 

 

43.3

 

Benefit obligation, end of year

 

$

18.0

 

 

$

19.2

 

 

$

669.8

 

 

$

713.2

 

 

 

 

United States Plans

 

 

Non-United States Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning of year

 

$

—

 

 

$

—

 

 

$

596.3

 

 

$

547.8

 

Actual return on plan assets

 

 

—

 

 

 

—

 

 

 

40.7

 

 

 

30.3

 

Settlements

 

 

—

 

 

 

—

 

 

 

(50.9

)

 

 

(66.4

)

Transfers

 

 

—

 

 

 

—

 

 

 

23.7

 

 

 

28.4

 

Plan participant contributions

 

 

—

 

 

 

—

 

 

 

11.4

 

 

 

12.4

 

Company contributions

 

 

2.1

 

 

 

2.2

 

 

 

17.4

 

 

 

17.6

 

Benefits paid

 

 

(2.1

)

 

 

(2.2

)

 

 

(16.0

)

 

 

(14.2

)

Currency exchange rate changes

 

 

—

 

 

 

—

 

 

 

(36.5

)

 

 

40.4

 

Fair value of plan assets, end of year

 

$

—

 

 

$

—

 

 

$

586.1

 

 

$

596.3

 

Funded Status at End of Year

 

 

 

 

 

 

 

 

 

 

 

 

Funded status, end of year

 

$

(18.0

)

 

$

(19.2

)

 

$

(83.7

)

 

$

(117.0

)

Amounts Recognized

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent assets

 

$

—

 

 

$

—

 

 

$

22.7

 

 

$

8.8

 

Current liabilities

 

 

(2.2

)

 

 

(2.2

)

 

 

(1.2

)

 

 

(1.0

)

Noncurrent liabilities

 

 

(15.8

)

 

 

(17.0

)

 

 

(105.2

)

 

 

(124.8

)

Net amount recognized

 

$

(18.0

)

 

$

(19.2

)

 

$

(83.7

)

 

$

(117.0

)

 

 

The curtailments in 2024 primarily resulted from the wind down of Proservia Germany. For both 2024 and 2023, the settlements and transfers mostly represent transfers in and out of temporary associates within our Switzerland plan. The actuarial gain and loss are mainly related to changes in discount rates.

 

One of our plans is located in the United Kingdom. In July 2024, the United Kingdom Court of Appeal upheld a ruling in the Virgin Media vs NTL Pension Trustee case, a decision that we were not a party to or involved in, that certain historical amendments for contracted-out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation. Since there remain significant areas of uncertainty, we were not yet able to determine the impact of the ruling, if any, on our pension plan obligations as of December 31, 2024.

 

Amounts recognized in accumulated other comprehensive loss, net of tax, consisted of:

 

 

 

United States Plans

 

 

Non-United States Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

3.6

 

 

$

4.0

 

 

$

1.2

 

 

$

26.9

 

Prior service cost

 

 

—

 

 

 

—

 

 

 

4.1

 

 

 

5.1

 

Total

 

$

3.6

 

 

$

4.0

 

 

$

5.3

 

 

$

32.0

 

 

The accumulated benefit obligation (ABO) for all qualified defined benefit pension plans was $663.7 and $706.0 as of December 31, 2024 and 2023, respectively. The ABO for plans that have plan assets was $584.4 and $625.1 as of December 31, 2024 and 2023, respectively. The accumulated benefit obligation for some of our plans exceeded the fair value of plan assets as follows:

 

December 31

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Accumulated benefit obligation

 

$

117.2

 

 

$

129.9

 

Plan assets

 

 

93.4

 

 

 

89.0

 

 

The projected benefit obligation (PBO) for all qualified defined benefit pension plans was $687.8 and $732.4 as of December 31, 2024 and 2023, respectively. The PBO for some of our plans exceeded the fair value of plan assets as follows:

 

December 31

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Projected benefit obligation

 

$

123.8

 

 

$

137.8

 

Plan assets

 

 

96.9

 

 

 

92.6

 

 

 

By their nature, some of our plans do not have plan assets. The accumulated benefit obligation for these plans was $79.3 and $80.9 as of December 31, 2024 and 2023, respectively.

The components of the net periodic benefit cost and other amounts recognized in other comprehensive income/loss for all plans were as follows:

 

Year Ended December 31

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

Service cost

 

$

16.5

 

 

$

15.5

 

 

$

19.4

 

Interest cost

 

 

19.4

 

 

 

21.1

 

 

 

8.7

 

Expected return on assets

 

 

(18.9

)

 

 

(19.0

)

 

 

(14.7

)

Settlements

 

 

1.8

 

 

 

6.7

 

 

 

2.7

 

Net (gain) loss

 

 

(1.5

)

 

 

(3.3

)

 

 

1.8

 

Prior service cost

 

 

0.7

 

 

 

0.7

 

 

 

0.7

 

Net periodic benefit cost

 

 

18.0

 

 

 

21.7

 

 

 

18.6

 

Other Changes in Plan Assets and Benefit Obligation Recognized
   in Other Comprehensive Income/Loss

 

 

 

 

 

 

 

 

 

Net (gain) loss

 

 

(25.7

)

 

 

31.9

 

 

 

(40.9

)

Prior service credit

 

 

—

 

 

 

(1.2

)

 

 

(0.2

)

Amortization of net loss

 

 

(3.0

)

 

 

(3.7

)

 

 

(5.0

)

Amortization of prior service cost

 

 

(0.7

)

 

 

(0.7

)

 

 

(0.7

)

Total recognized in other comprehensive income/loss

 

 

(29.4

)

 

 

26.3

 

 

 

(46.8

)

Total recognized in net periodic benefit cost and other comprehensive
   income/loss

 

$

(11.4

)

 

$

48.0

 

 

$

(28.2

)

 

The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive income/loss into net periodic benefit cost during 2025 are $0.4 and $0.6, respectively.

The weighted-average assumptions used in the measurement of the benefit obligation were as follows:

 

 

 

United States Plans

 

 

Non-United States Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

5.5

%

 

 

5.2

%

 

 

2.7

%

 

 

2.7

%

Rate of compensation increase

 

 

1.4

%

 

 

1.4

%

 

 

1.5

%

 

 

1.9

%

 

The weighted-average assumptions used in the measurement of the net periodic benefit cost were as follows:

 

 

 

United States Plans

 

 

Non-United States Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

2024

 

 

2023

 

 

2022

 

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

5.2

%

 

 

5.4

%

 

 

2.6

%

 

 

2.7

%

 

 

3.2

%

 

 

1.0

%

Expected long-term return on plan assets

 

N/A

 

 

N/A

 

 

N/A

 

 

 

3.4

%

 

 

3.5

%

 

 

2.2

%

Rate of compensation increase

 

 

1.4

%

 

 

1.3

%

 

 

1.3

%

 

 

1.9

%

 

 

1.9

%

 

 

1.7

%

Interest crediting rates for cash balance plans

 

N/A

 

 

N/A

 

 

N/A

 

 

 

2.6

%

 

 

2.6

%

 

 

0.5

%

 

We determine our assumption for the discount rate based on an index of high-quality corporate bond yields and matched-funding yield curve analysis as of the end of each fiscal year.

Our overall expected long-term rate of return used in the measurement of the 2024 net periodic benefit cost on non-United States plans varied by country and ranged from 2.3% to 5.0%. For a majority of our plans, a building block approach has been employed to establish this return. Historical markets are studied and long-term historical relationships between equity securities and fixed income instruments are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over time. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return is established with proper consideration of diversification and rebalancing. We also use guaranteed insurance contracts for five of our foreign plans. Peer data and historical returns are reviewed to check for reasonableness and appropriateness of our expected rate of return. None of our United States plans has plan assets.

Projected salary levels utilized in the determination of the projected benefit obligation for the pension plans are based upon historical experience and the future expectations for each respective country.

Our plans’ investment policies are to optimize the long-term return on plan assets at an acceptable level of risk and to maintain careful control of the risk level within each asset class. Our long-term objective is to minimize plan expenses and contributions by outperforming plan liabilities. We have historically used a balanced portfolio strategy based primarily on a target allocation of equity securities and fixed-income instruments, which vary by location. These target allocations, which are similar to the 2024 allocations, are determined based on the favorable risk tolerance characteristics of the plan and, at times, may be adjusted within a specified range to advance our overall objective.

The fair values of our Level 1 and Level 2 pension plan assets are primarily determined by using market quotes and other relevant information that is generated by market transactions involving identical or comparable assets. Insurance contracts and annuity contracts are measured at the present value of expected future benefit payments primarily using associated interest curves. Hedge funds consist of a number of diversified funds including those investing in international securities, equity and private partnership interests valued using market available data and various models and assumptions.

The fair value of our pension plan assets by asset category was as follows:

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3.0

 

 

$

3.0

 

 

$

—

 

 

$

—

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

142.7

 

 

 

142.7

 

 

 

—

 

 

 

—

 

Common stock

 

 

30.1

 

 

 

30.1

 

 

 

—

 

 

 

—

 

Fixed income instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income funds

 

 

123.8

 

 

 

—

 

 

 

123.8

 

 

 

—

 

Annuity contract

 

 

31.4

 

 

 

—

 

 

 

—

 

 

 

31.4

 

Guaranteed insurance contracts

 

 

25.6

 

 

 

—

 

 

 

25.6

 

 

 

—

 

Other types of investments:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

96.4

 

 

 

—

 

 

 

95.1

 

 

 

1.3

 

Insurance contracts

 

 

80.9

 

 

 

—

 

 

 

—

 

 

 

80.9

 

Hedge funds

 

 

29.0

 

 

 

—

 

 

 

11.5

 

 

 

17.5

 

Other

 

 

23.2

 

 

 

—

 

 

 

3.6

 

 

 

19.6

 

 

$

586.1

 

 

$

175.8

 

 

$

259.6

 

 

$

150.7

 

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Category

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6.9

 

 

$

6.9

 

 

$

—

 

 

$

—

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

137.6

 

 

 

137.6

 

 

 

—

 

 

 

—

 

Common stock

 

 

34.0

 

 

 

34.0

 

 

 

—

 

 

 

—

 

Fixed income instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income funds

 

 

125.6

 

 

 

—

 

 

 

125.6

 

 

 

—

 

Annuity contract

 

 

35.4

 

 

 

—

 

 

 

—

 

 

 

35.4

 

Guaranteed insurance contracts

 

 

23.4

 

 

 

—

 

 

 

23.4

 

 

 

—

 

Other types of investments:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate funds

 

 

99.6

 

 

 

—

 

 

 

98.2

 

 

 

1.4

 

Insurance contracts

 

 

82.6

 

 

 

—

 

 

 

—

 

 

 

82.6

 

Hedge funds

 

 

29.1

 

 

 

—

 

 

 

12.4

 

 

 

16.7

 

Other

 

 

22.1

 

 

 

—

 

 

 

3.9

 

 

 

18.2

 

 

$

596.3

 

 

$

178.5

 

 

$

263.5

 

 

$

154.3

 

 

The following table summarizes the changes in fair value of the pension assets that are measured using Level 3 inputs. We determined that transfers between fair-value-measurement levels occurred on the date of the event that caused the transfer.

 

Year Ended December 31

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Balance, beginning of year

 

$

154.3

 

 

$

142.2

 

Actual return on plan assets

 

 

4.4

 

 

 

5.6

 

Purchases, sales and settlements, net

 

 

—

 

 

 

(0.7

)

Currency exchange rate changes

 

 

(8.0

)

 

 

7.2

 

Balance, end of year

 

$

150.7

 

 

$

154.3

 

 

Retiree Health Care Plan

We provide medical and dental benefits to certain eligible retired employees in the United States. Due to the nature of the plan, there are no plan assets. The reconciliation of the changes in the plan’s benefit obligation and the statement of the funded status of the plan were as follows:

 

Year Ended December 31

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Change in Benefit Obligation

 

 

 

 

 

 

Benefit obligation, beginning of year

 

$

10.2

 

 

$

11.5

 

Interest cost

 

 

0.5

 

 

 

0.5

 

Actuarial gain

 

 

(1.1

)

 

 

(1.0

)

Benefits paid

 

 

(0.8

)

 

 

(0.8

)

Benefit obligation, end of year

 

$

8.8

 

 

$

10.2

 

Funded Status at End of Year

 

 

 

 

 

 

Funded status, end of year

 

$

(8.8

)

 

$

(10.2

)

Amounts Recognized

 

 

 

 

 

 

Current liabilities

 

$

(1.0

)

 

$

(1.1

)

Noncurrent liabilities

 

 

(7.8

)

 

 

(9.1

)

Net amount recognized

 

$

(8.8

)

 

$

(10.2

)

 

The amount recognized in accumulated other comprehensive loss, net of tax, consists of a net gain of $1.1 and $0.3 as of December 31, 2024 and 2023, respectively, and a prior service credit of $0.4 and $1.0 as of December 31, 2024 and 2023, respectively.

The discount rate used in the measurement of the benefit obligation was 5.5% and 4.9% in 2024 and 2023, respectively. The discount rate used in the measurement of net periodic benefit cost was 4.9%, 5.1% and 2.6% in 2024, 2023 and 2022, respectively.

The components of net periodic benefit cost and other amounts recognized in other comprehensive income/loss for this plan were as follows:

 

Year Ended December 31

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

Net Periodic Benefit Credit

 

 

 

 

 

 

 

 

 

Interest cost

 

$

0.5

 

 

$

0.5

 

 

$

0.3

 

Net loss

 

 

—

 

 

 

—

 

 

 

0.2

 

Prior service credit

 

 

(0.8

)

 

 

(0.8

)

 

 

(0.8

)

Net periodic benefit credit

 

$

(0.3

)

 

$

(0.3

)

 

$

(0.3

)

Other Changes in Plan Assets and Benefit Obligations Recognized
   in Other Comprehensive Income/Loss

 

 

 

 

 

 

 

 

 

Net gain

 

$

(1.1

)

 

$

(1.0

)

 

$

(2.0

)

Amortization of net loss

 

 

—

 

 

 

—

 

 

 

(0.2

)

Amortization of prior service credit

 

 

0.8

 

 

 

0.8

 

 

 

0.8

 

Total recognized in other comprehensive income/loss

 

 

(0.3

)

 

 

(0.2

)

 

 

(1.4

)

Total recognized in net periodic benefit cost and other comprehensive
   income/loss

 

$

(0.6

)

 

$

(0.5

)

 

$

(1.7

)

 

The estimated prior service credit for the retiree health care plan that will be amortized from accumulated other comprehensive income/loss into net periodic benefit cost during 2025 is $0.8. No net gain/loss is estimated to be amortized in 2025.

The health care cost trend rate is assumed to be 8.3% in 2025, decreasing gradually to an ultimate rate of 4.5% in 2035. Assumed health care cost trend rates are not expected to have a material effect on the amounts reported.

Future Contributions and Payments

During 2025, we plan to contribute approximately $16.0 to our pension plans and to fund our retiree health care payments as incurred. Projected benefit payments from the plans as of December 31, 2024 were estimated as follows:

 

Year

 

Pension Plans

 

 

Retiree Health
Care Plan

 

 

 

 

 

 

 

 

2025

 

$

62.1

 

 

$

1.0

 

2026

 

 

42.2

 

 

 

1.0

 

2027

 

 

33.4

 

 

 

0.9

 

2028

 

 

30.2

 

 

 

0.9

 

2029

 

 

29.1

 

 

 

0.9

 

2030–2034

 

 

175.0

 

 

 

3.7

 

Total projected benefit payments

 

$

372.0

 

 

$

8.4

 

 

Defined Contribution Plans and Deferred Compensation Plans

We have defined contribution plans covering substantially all permanent United States employees and various other employees throughout the world. With our company-sponsored plans, employees may elect to contribute a portion of their salary to the plans and we match a portion of their contributions up to a maximum percentage of the employee’s salary. In addition, profit sharing contributions are made if a targeted earnings level is reached at management’s discretion. The total expense for our match and any profit sharing contributions was $17.8, $19.2 and $18.4 for the years ended December 31, 2024, 2023 and 2022, respectively. In certain countries with statutory defined contribution plans, we pay a percentage of the employees' salary in pension premiums. The total expense for the statutory defined contribution plans was $24.4, $29.5 and $31.4 for the years ended December 31, 2024, 2023 and 2022, respectively.

We also have deferred compensation plans in the United States. These plans had an asset and liability of $165.4 and $144.2 as of December 31, 2024 and 2023, respectively. We recognized investment gains of $21.7 and $21.9 in 2024 and 2023, respectively, and an investment loss of $23.4 in 2022. These fair value adjustments are fully offset by corresponding impact to compensation expense within selling and administrative expenses.