The Company has benefit plans covering substantially all of its employees. Defined contribution benefit plans cover most of the U.S. and Canadian employees, and benefits are based on years of service and a percentage of current earnings. For the years ended December 31, 2024, 2023 and 2022, the costs for defined contribution plans were $6 million, $6 million and $5 million, respectively.

The Company has a non-qualified deferred compensation plan (the “NQDC Plan”) for certain members of senior management. NQDC Plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Such equity securities held in a rabbi trust are measured using quoted market prices at the reporting date (Level 1 within the fair value hierarchy) and were included in other assets, with the corresponding liability included in other long-term liabilities in the consolidated balance sheets.

Historically, the Company sponsored two defined benefit plans in the United Kingdom under which accruals of pension benefits have ceased. In 2020, the Company made lump-sum payments and entered into a buy-in annuity contract in connection with the de-risking both plans. During 2023, transfers were made to complete the buy-out of the remaining liability of the annuity contract. As a result of the 2023 transfers, the buy-in policies were converted into buy-out policies, and the plans were effectively settled.

Net periodic benefit cost (income) for the Company’s defined benefit plans was cost of $1 million and income of less than $1 million for the years ended December 31, 2023 and 2022, respectively, and were included in other income (expense) in the consolidated statement of operations. The Company immediately recognizes actuarial gains and losses in other income (expense), which are generally measured annually and recorded in the fourth quarter, unless an earlier remeasurement is required.

The change in benefit obligation, plan assets and the funded status of the defined benefit pension plans in the United Kingdom using a measurement date of December 31, 2023, is as follows (in millions):


	Pension Benefits
At year end	2023
Benefit obligation at beginning of year	$	4
Actuarial loss (gain)		—
Plan settlements		(4	)
Foreign currency exchange rate changes		—
Benefit obligation at end of year	$	—

Fair value of plan assets at beginning of year	$	6
Actual return		—
Plan settlements		(5	)
Foreign currency exchange rate changes and other		(1	)
Fair value of plan assets at end of year	$	—

Funded status		—
Accumulated benefit obligation at end of year	$	—

The Company estimated income or expense related to its pension and postretirement plans based on actuarial assumptions, including assumptions regarding discount rates and expected returns on plan assets, adjusted for current period actuarial gains and losses. Assumed long-term rates of return on plan assets and discount rates varied according to the local economic conditions.

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


	December 31,
	2023	2022
Discount rate:	4.10% - 5.10%	1.20% - 1.80%
Expected return on assets:	4.00% - 5.12%	1.10% - 2.22%

Historically, both plans had plan assets in excess of projected benefit obligations. As the plans were settled in 2023, the Company will not pay future benefit amounts, and does not expect to contribute to its defined benefit pension plans in the future.