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Post-Employment and Other Long-Term Employees Benefits
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Post-Employment and Other Long-Term Employees Benefits POST-EMPLOYMENT AND OTHER LONG-TERM EMPLOYEES BENEFITS
The Company and its subsidiaries have a number of defined benefit pension plans, mainly unfunded, and other long-term employees’ benefits covering employees in various countries. The defined benefit plans provide pension benefits based on years of service and employee compensation levels. The other long-term employees’ plans provide benefits due during the employees’ period of service after certain seniority levels. The Company uses December 31 as measurement date for its plans. Eligibility is generally determined in accordance with local statutory requirements. For Italian termination indemnity plan (“TFR”), generated before July 1, 2007, the Company measures the vested benefits to which Italian employees are entitled as if the amounts were immediately due as of December 31, 2024, in compliance with U.S. GAAP guidance on determining vested benefit obligations for defined benefit pension plans.
The changes in benefit obligation and plan assets were as follows:
Pension BenefitsOther Long-Term Benefits
December 31,
2024		December 31,
2023		December 31,
2024		December 31,
2023
Change in benefit obligation:
Benefit obligation at beginning of year1,008 886 99 86 
Service cost32 28 23 17 
Interest cost36 35 3 3 
Employee contributions6 5 — — 
Plan amendments3 (1)— — 
Benefits paid(39)(18)(12)(9)
Effect of settlement(11)(1)— — 
Actuarial (gain) loss(5)39 1 (2)
Foreign currency translation(38)35 (5)4 
Benefit obligation at end of year992 1,008 109 99 
Change in plan assets:
Plan assets at fair value at beginning of year654 567 — — 
Actual return on plan assets18 38 — — 
Employer contributions25 26 — — 
Employee contributions6 5 — — 
Benefits paid(25)(4)— — 
Effect of settlement(11)(1)— — 
Foreign currency translation(21)23 — — 
Plan assets at fair value at end of year646 654 — — 
Funded status(346)(354)(109)(99)
Amounts recorded in the consolidated balance sheets
Other investments and other non-current assets22 15 — — 
Other payables and accrued liabilities (15)(15)(10)(7)
Other non-current liabilities— — (99)(92)
Post-employment benefit obligations(353)(354)— — 
Net amount recorded(346)(354)(109)(99)
The actuarial gains incurred in 2024 were primarily due to an increase in discount rates applied against future expected benefit payments and resulted in an decrease of the benefit obligation mainly for the plans located in the United States and the United Kingdom. The actuarial losses incurred in 2023 were primarily due to a decrease in discount rates mainly for the plans located in the United States, France and Switzerland.
Benefits paid increased during 2024 due to higher lump sump payments to retiring employees in Switzerland.
Actual return on plan assets reflect changes in market conditions during each reporting year.
The components of accumulated other comprehensive loss (income) before tax effects were as follows:
Actuarial
(gains)/losses		Prior service
cost		Total
Accumulated other comprehensive loss as of
   December 31, 2022		49 1 50 
Net amount generated/arising in current year25 (1)24 
Amortization(6)(1)(7)
Foreign currency translation adjustment1 — 1 
Accumulated other comprehensive loss as of
   December 31, 2023		69 (1)68 
Net amount generated/arising in current year7 3 10 
Amortization(8)— (8)
Foreign currency translation adjustment(1)— (1)
Accumulated other comprehensive loss as of
   December 31, 2024		67 2 69 
The accumulated benefit obligations were as follows:
Pension BenefitsOther Long-Term Benefits
December 31,
2024		December 31,
2023		December 31,
2024		December 31,
2023
Accumulated benefit obligations8808084535

For pension plans and other long-term benefits with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $494 million and $175 million, respectively, as of December 31, 2024 and $411 million and $182 million, respectively, as of December 31, 2023.
For pension plans with projected benefit obligations in excess of plan assets, the benefit obligation and fair value of plan assets were $967 million and $492 million, respectively, as of December 31, 2024 and $950 million and $478 million, respectively, as of December 31, 2023.
The components of the net periodic benefit cost included the following:
Pension BenefitsOther Long-term Benefits
Year ended
December 31,
2024		Year ended
December 31,
2023		Year ended
December 31,
2022		Year ended
December 31,
2024		Year ended
December 31,
2023		Year ended
December 31,
2022
Service cost32 28 33 23 17 17 
Interest cost36 35 27 3 3 1 
Expected return on plan assets(29)(24)(23)— — — 
Amortization of actuarial net loss (gain)8 6 6 1 (2)(14)
Amortization of prior service cost— 1 1 — — — 
Effect of settlement— 1 — — — — 
Net periodic benefit cost47 47 44 27 18 4 
Pension benefits components other than service cost, recognized outside of operating income in “Other components of pension benefit costs” in the Company’s consolidated statements of income, were $15 million, $19 million and $11 million in the years ended December 31, 2024, 2023 and 2022, respectively.
The weighted average assumptions used to determine the benefit obligation and the periodic benefit costs for pension plans and other long-term benefits were as follows:
202420232022
Benefit obligation
Discount rate3.86 %3.73 %4.18 %
Salary increase rate2.40 %2.17 %2.31 %
Net periodic benefit cost
Discount rate3.73 %4.18 %1.84 %
Salary increase rate2.17 %2.31 %2.27 %
Expected long-term rates of return on plan assets3.01 %2.66 %3.19 %

The discount rate was determined by reference to market yields on high quality long-term corporate bonds applicable to the respective country of each plan, with terms consistent with the terms of the benefit obligations. In developing the expected long-term rate of return on assets, the Company modelled the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios.
The Company’s pension plan asset allocation as of December 31, 2024 and December 31, 2023 is as follows:
Percentage of Plan Assets
at December
Asset Category20242023
Cash and cash equivalents1 %1 %
Equity securities14 %13 %
Government debt securities10 %11 %
Corporate debt securities14 %19 %
Investments in funds(a)
16 %15 %
Real estate1 %1 %
Other (mainly insurance assets – contracts and
   reserves)		44 %40 %
Total100 %100 %

(a)     As of December 31, 2024, investments in funds were composed of commingled and multi-strategy funds invested in diversified portfolios of fixed income (69%) - mainly corporate bonds, time deposits and money market (15%), equities (14%) and other instruments (2%). As of December 31, 2023, investments in funds were composed of commingled and multi-strategy funds invested in diversified portfolios of fixed income (68%) - mainly corporate bonds, equities (24%), time deposits and money market (5%) and other instruments (3%).
As of December 31, 2024, the Company’s plan asset allocation was in line with the targets set for each plan.
The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as of December 31, 2024 is as follows:
TotalQuoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents7 7 — — 
Equity securities91 1 90 — 
Government debt securities63 — 63 — 
Corporate debt securities94 — 77 17 
Investment funds106 16 90 — 
Real estate10 — 10 — 
Other (mainly insurance assets –
   contracts and reserves)		275 — 60 215 
TOTAL646 24 390 232 
The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as of December 31, 2023 is as follows:

TotalQuoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents7 7 — — 
Equity securities87 1 86 — 
Government debt securities69 — 69 — 
Corporate debt securities123 — 101 22 
Investment funds100 14 86 — 
Real estate9 — 9 — 
Other (mainly insurance assets –
   contracts and reserves)		259 — 48 211 
TOTAL654 22 399 233 

The majority of insurance contract plan assets relate to pension plans for the Company's employees in Switzerland. Those plans are provided by collective pension foundations and contributions are invested in fully insured assets that provide a guaranteed contractual return. As such, the fair value of such assets equals to the employees' accrued savings and calculated using total employer and employee contributions plus any accumulated interest credited, which is substantially equivalent to the related cash surrender value. The approach is consistent with prior years.
For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2024 and December 31, 2024 is presented as follows:
Fair Value
Measurements
using
Significant
Unobservable
Inputs
(Level 3)
January 1, 2024233 
Contributions (employer and employee)25 
Actual return on plan assets (b)
15 
Net benefit payments (a)
(13)
Settlements (b)
(11)
Foreign currency translation adjustment (c)
(17)
December 31, 2024232 


(a)    Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees.
(b)    Included in non operating expenses in the consolidated statement of income.
(c)    Unrealized losses included in the consolidated statement of comprehensive income.
For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2023 and December 31, 2023 is presented as follows:
Fair Value
Measurements
using
Significant
Unobservable
Inputs
(Level 3)
January 1, 2023178 
Contributions (employer and employee)21 
Actual return on plan assets (b)
4 
Net benefit payments (a)
14 
Settlements (b)
(1)
Foreign currency translation adjustment (c)
17 
December 31, 2023233 


(a)    Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees.
(b)    Included in non operating expenses in the consolidated statement of income.
(c)    Unrealized gains included in the consolidated statement of comprehensive income.
The Company’s investment strategy for its pension plans is to optimize the long-term investment return on plan assets in relation to the liability structure to maintain an acceptable level of risk while minimizing the cost of providing pension benefits and maintaining adequate funding levels in accordance with applicable rules in each jurisdiction. The Company’s practice is to periodically conduct a review of its asset allocation strategy, in such a way that the asset allocation is in line with the targeted asset allocation within reasonable boundaries. The Company’s asset portfolios are
managed in such a way as to achieve appropriate diversification in line with the asset allocation strategy. The Company does not manage any assets internally.
After considering the funded status of the Company’s defined benefit plans, movements in the discount rate, investment performance and related tax consequences, the Company may choose to make contributions to its pension plans in any given year in excess of required amounts. The Company’s contributions to plan assets were $25 million in 2024 and $26 million in 2023 and the Company expects to contribute $20 million to plan assets in 2025.
The Company’s estimated future benefit payments as of December 31, 2024 are as follows:
YearsPension
Benefits		Other
Long-term
Benefits
20256910
20266310
20275510
20285910
20296612
From 2030 to 203438047
The Company has certain defined contribution plans, which accrue benefits for employees on a pro-rata basis during their employment period based on their individual salaries. The Company’s accrued benefits related to defined contribution pension plans for $25 million as of December 31, 2024 and $27 million as of December 31, 2023. The annual cost of these plans amounted to approximately $117 million in 2024, $114 million in 2023 and $100 million in 2022.