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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2023
Retirement Benefits [Abstract] |
Employee Benefit Plans | Employee Benefit Plans The Consolidated Balance Sheets reflect a net liability for the funded status of our domestic and foreign defined benefit pension plans as of all periods presented. Our domestic plans (comprised primarily of three significant plans) represent approximately 84% of our pension benefit obligation in each of the periods presented. Participants in one of the significant domestic plans have stopped earning benefits; this plan is referred to as our Frozen Plan in the following narrative. A summary of our pension obligations and funded status as of December 31 is as follows:
| 2023 |  | 2022 |  | 2021
Change in benefit obligation |  |  |  |  |
Benefit obligation, beginning of period | $ | 191.2 |  |  | $ | 270.4 |  |  | $ | 286.5 |
Service cost | 3.4 |  |  | 5.3 |  |  | 5.1 |
Interest cost | 9.2 |  |  | 6.6 |  |  | 6.0 |
Plan participants’ contributions | .4 |  | .4 |  | .5
Actuarial loss (gain) 1 | 4.8 |  |  | (71.6) |  |  | (10.8) |
Benefits paid | (15.8) |  |  | (15.9) |  |  | (15.6) |
Plan amendments | — |  |  | — |  |  | .1 |
Curtailments and settlements | — |  |  | — |  |  | (1.1) |
Foreign currency exchange rate changes | 1.4 |  |  | (4.0) |  |  | (.3) |
Benefit obligation, end of period | $ | 194.6 |  |  | $ | 191.2 |  |  | $ | 270.4 |
Change in plan assets |  |  |  |  |
Fair value of plan assets, beginning of period | $ | 175.8 |  |  | $ | 227.7 |  |  | $ | 215.3 |
Actual return on plan assets | 20.9 |  |  | (35.4) |  |  | 25.6 |
Employer contributions | 5.0 |  |  | 2.9 |  |  | 2.8 |
Plan participants’ contributions | .4 |  |  | .4 |  |  | .5 |
Benefits paid | (15.8) |  |  | (15.9) |  |  | (15.6) |
Settlements | — |  |  | — |  |  | (.8) |
Foreign currency exchange rate changes | 1.5 |  |  | (3.9) |  |  | (.1) |
Fair value of plan assets, end of period | $ | 187.8 |  |  | $ | 175.8 |  |  | $ | 227.7 |
Net funded status | $ | (6.8) |  |  | $ | (15.4) |  |  | $ | (42.7) |
Funded status recognized in the Consolidated Balance Sheets |  |  |  |  |
Other assets—sundry | $ | 4.7 |  |  | $ | 3.9 |  |  | $ | 2.8 |
Other current liabilities | (.3) |  |  | (.3) |  |  | (.3) |
Other long-term liabilities | (11.2) |  |  | (19.0) |  |  | (45.2) |
Net funded status | $ | (6.8) |  |  | $ | (15.4) |  |  | $ | (42.7) |
1 Year-over-year fluctuations in "Actuarial loss (gain)" are primarily driven by changes in the weighted average discount rate assumptions. Our accumulated benefit obligation was not materially different from our projected benefit obligation for the periods presented.
Comprehensive Income (Loss) Amounts and activity included in accumulated other comprehensive income associated with pensions are reflected below:
| December 31, 2022 |  | 2023 Amortization |  | 2023 Net Actuarial Loss |  | 2023 Foreign Currency Exchange Rates Change |  | 2023 Income Tax Change |  | December 31, 2023
Net (loss) gain (before tax) | $ | (26.8) |  |  | $ | 1.3 |  |  | $ | 5.2 |  |  | $ | (.2) |  |  | $ | — |  |  | $ | (20.5) |
Deferred income taxes | 8.4 |  |  | $ | — |  |  | — |  |  | — |  |  | (1.5) |  |  | 6.9 |
Accumulated other comprehensive income (loss) (net of tax) | $ | (18.4) |  |  | $ | 1.3 |  |  | $ | 5.2 |  |  | $ | (.2) |  |  | $ | (1.5) |  |  | $ | (13.6) |
Net Pension Expense (Income) Components of net pension expense (income) for the years ended December 31 were as follows:
| 2023 |  | 2022 |  | 2021
Service cost | $ | 3.4 |  |  | $ | 5.3 |  |  | $ | 5.1 |
Interest cost | 9.2 |  |  | 6.6 |  |  | 6.0 |
Expected return on plan assets | (10.9) |  |  | (13.2) |  |  | (12.5) |
Recognized net actuarial loss | 1.3 |  |  | 2.5 |  |  | 5.3 |
Curtailments and settlements | — |  |  | — |  |  | (.2) |
Net pension expense | $ | 3.0 |  |  | $ | 1.2 |  |  | $ | 3.7 |
Weighted average assumptions for pension costs: |  |  |  |  |
Discount rate | 5.0 | % |  | 2.5 | % |  | 2.1 | %
Rate of compensation increase | 3.4 | % |  | 3.5 | % |  | 3.5 | %
Expected return on plan assets | 6.4 | % |  | 6.0 | % |  | 5.9 | %
Weighted average assumptions for benefit obligation: |  |  |  |  |
Discount rate | 4.8 | % |  | 5.0 | % |  | 2.5 | %
Rate of compensation increase | 3.4 | % |  | 3.4 | % |  | 3.5 | %
Assumptions used for domestic and international plans were not significantly different. The components of net pension expense other than the service cost component are included in the line item "Other expense (income), net" in the Consolidated Statements of Operations. We use the average of a Pension Liability Index rate and a 10+ year AAA-AA US Corporate Index rate to determine the discount rate used for our significant pension plans (rounded to the nearest 25 basis points). The Pension Liability Index rate is a calculated rate using yearly spot rates matched against expected future benefit payments. The 10+ year AAA-AA US Corporate Index rate is based on the weighted average yield of a portfolio of high-grade Corporate Bonds with an average duration approximating the plans’ projected benefit payments. The discount rates used for our other, primarily foreign, plans are based on rates appropriate for the respective country and the plan obligations. The overall expected long-term rate of return is based on each plan’s historical experience and our expectations of future returns based upon each plan’s investment holdings, as discussed below. Pension Plan Assets The fair value of our major categories of pension plan assets is disclosed below using a three-level valuation hierarchy that separates fair value valuation techniques into the following categories: •Level 1: Quoted prices for identical assets or liabilities in active markets. •Level 2: Other significant inputs observable either directly or indirectly (including quoted prices for similar securities, interest rates, yield curves, credit risk, etc.). •Level 3: Unobservable inputs that are not corroborated by market data. Presented below are our major categories of investments for the periods presented:
| Year Ended December 31, 2023 |  | Year Ended December 31, 2022
| Level 1 |  | Level 2 |  | Level 3 1 |  | Assets Measured at NAV 2 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Assets Measured at NAV 2 |  | Total
Mutual and pooled funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | $ | 46.3 |  |  | $ | 1.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 47.7 |  |  | $ | 25.9 |  |  | $ | 13.9 |  |  | $ | — |  |  | $ | — |  |  | $ | 39.8 |
Equities | 107.2 |  |  | 12.8 |  |  | — |  |  | — |  |  | 120.0 |  |  | 99.2 |  |  | 5.6 |  |  | — |  |  | — |  |  | 104.8 |
Stable value funds | — |  |  | 7.3 |  |  | — |  |  | — |  |  | 7.3 |  |  | — |  |  | 22.1 |  |  | — |  |  | — |  |  | 22.1 |
Money market funds, cash and other | — |  |  | — |  |  | 6.9 |  |  | 5.9 |  |  | 12.8 |  |  | — |  |  | — |  |  | — |  |  | 9.1 |  |  | 9.1 |
Total investments at fair value | $ | 153.5 |  |  | $ | 21.5 |  |  | $ | 6.9 |  |  | $ | 5.9 |  |  | $ | 187.8 |  |  | $ | 125.1 |  |  | $ | 41.6 |  |  | $ | — |  |  | $ | 9.1 |  |  | $ | 175.8 |
1 We entered into a buy-in arrangement during 2023 for one of our frozen international plans. The bulk purchase annuity policy assets from this transaction are classified as level 3 in the fair value hierarchy. The purchase was facilitated by the sale of investments that had been classified as level 2. Activity, other than the initial purchase, was not material during 2023. There was no other level 3 activity in 2023. 2 Certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
Our investment policy and strategies are established with a long-term view in mind. We strive for a sufficiently diversified asset mix to minimize the risk of a material loss to the portfolio value due to the devaluation of any single investment. In determining the appropriate asset mix, our financial strength and ability to fund potential shortfalls that might result from poor investment performance are considered. The assets in our Frozen Plan employ a liability-driven investment strategy and have a target allocation of 60% fixed income and 40% equities. The remaining two significant plans have a target allocation of 75% equities and 25% fixed income, as historical equity returns have tended to exceed bond returns over the long term. Assets of our domestic plans represent the majority of plan assets and are allocated to seven different investments. Six are mutual funds, all of which are passively managed low-cost index funds, and include: •U.S. Total Stock Market Index: Large-, mid-, and small-cap equity diversified across growth and value styles. •U.S. Large-Cap Index: Large-cap equity diversified across growth and value styles. •U.S. Small-Cap Index: Small-cap equity utilizing value style. •World ex US Index: International equity; broad exposure across developed and emerging non-U.S. equity markets. •Long-term Bond Index: Diversified exposure to the long-term, investment-grade U.S. bond market. •Extended Duration Treasury Index: Diversified exposure to U.S. treasuries with maturities of 20-30 years. The stable value fund consists of a fixed income portfolio offering consistent return and protection against interest rate volatility. Future Contributions and Benefit Payments We expect to contribute approximately $1.3 to our defined benefit pension plans in 2024. Estimated benefit payments expected over the next 10 years are as follows:
2024 | $ | 13.4 |
2025 | 13.9 |
2026 | 14.4 |
2027 | 14.8 |
2028 | 14.7 |
2029-2033 | 70.2 |
Defined Contribution Plans Total expense for our defined contribution plans was $14.2, $13.7, and $12.6 for the years ended December 31, 2023, 2022, and 2021, respectively.
Multi-employer Pension Plans We have limited participation in one union-sponsored, defined benefit, multi-employer pension plan. The plan is not administered by us, and contributions are determined in accordance with provisions of negotiated labor contracts. Aggregate contributions to the plan were immaterial for each of the years presented. In addition to regular contributions, we could be obligated to pay additional contributions (known as complete or partial withdrawal liabilities) if a plan has unfunded vested benefits. Factors that could impact the funded status of the plan include investment performance, changes in the participant demographics, financial stability of contributing employers, and changes in actuarial assumptions. Withdrawal liability triggers could include a plan's termination, a withdrawal of substantially all employers, or our voluntary withdrawal from the plan (such as decision to close a facility or the dissolution of a collective bargaining unit). We have a very small share of the liability among the participants of the plan. Based upon the information available from the plan administrator, the multi-employer plan in which we participate is underfunded, and we estimate our aggregate share of potential withdrawal liability for the plan to approximate $19.0. We have not recorded any material withdrawal liabilities for the years presented.

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