ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾

18. EMPLOYEE BENEFIT PLANSÌý

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Defined Benefit and Other Postretirement BenefitÌýPlans

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We provide a trusteed, non-contributory defined benefit pension plan (the “Planâ€�) in the U.S. The Plan’s design is that of a cash balance plan, and the cash balance benefit formula provides annual pay credits from 6% to 12% of eligible pay, depending on age and service, plus accrued interest.ÌýThe Plan is closed to new entrants. In addition, Rubicon provides a trusteed, non-contributory defined benefit plan, which is also closed to new entrants. Following the closure of these plans, new hires are provided with a defined contribution plan with a non-discretionary employer contribution of 6% of pay and a company match of up to 4% of pay, for a total company contribution of up to 10% of pay.

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We sponsor unfunded postretirement benefit plans other than pensions, which provide medical and life insurance benefits. Effective August 1, 2015, the postretirement benefit plans were closed to new entrants. Our other postretirement benefit plans provide access to two fully insured Medicare Part D plans including prescription drug benefits affected by the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act�). We cannot determine whether the medical benefits provided by our postretirement benefit plans are actuarially equivalent to those provided by the Act. We do not collect a subsidy and our net periodic postretirement benefits cost, and related benefit obligation, do not reflect an amount associated with the subsidy. We do not subsidize the premium cost of these plans; the premiums are entirely paid by the retirees.

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We sponsor defined benefit plans in a number of countries outside of the U.S. The availability of these plansÌýand their specific design provisionsÌýare consistent with local competitive practices and regulations.

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The following table sets forth the funded status of the plans for us and ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ International and the amounts recognized in our consolidated balance sheets at December 31, 2024 and 2023 (dollars in millions):

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During 2024,Ìýour overall net unfunded liability in our U.S. pension and other postretirement benefit plans decreased, primarily due to an increase in discount rates, partially offset with unfavorable investment returns and higher medical premiums. Our overall net funded liability in our non-U.S. pension plans decreased, primarily due to an increase in discount rates in most countries with significant impacts from Germany, the Netherlands and the U.K., partially offset by lower discount rates, primarily from Switzerland, and favorable investment returns from Belgium and the Netherlands. In addition, there were experience gains on liabilities from updated valuations in the Netherlands and Switzerland.

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During 2023,Ìýour overall net unfunded liability in our U.S. pension and other postretirement benefit plans decreased, primarily due to favorable investment returns, partially offset by a decrease in discount rates. Our overall net unfunded liability in our non-U.S. pension plans increased, primarily due to a decrease in discount rates in most countries with significant impacts from Germany, the Netherlands, Switzerland and the U.K., partially offset by favorable foreign currency movements on assets and favorable investment returns, primarily from the Netherlands and the U.K.

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Components of net periodic benefit (credit) costÌýfor the years ended December 31, 2024, 2023 and 2022 were as follows (dollars in millions):

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The amounts recognized in net periodic benefit cost and other comprehensive income (loss) as of December 31, 2024, 2023 and 2022 were as follows (dollars in millions):

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The following weighted-average assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic pension cost for the year:

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The expected long-term rate of return on pension assets assumption was based upon historical returns and the expectations of our investment committee and outside advisors.

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AtÌý December 31, 2024 and 2023, the healthcare trend rate used to measure the expected increase of the cost of benefits was assumed to be 6.75% and 6.5%, respectively, decreasing to 5.0% in 2032Ìýand thereafter.

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The projected benefit obligation and fair value of plan assets for the defined benefit plans with projected benefit obligations in excess of plan assets as of December 31, 2024 and 2023 were as follows (dollars in millions):

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The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the defined benefit plans with an accumulated benefit obligation in excess of plan assets as of December 31, 2024 and 2023 were as follows (dollars in millions):

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The accumulated benefit obligation of our defined pension plans as of December 31, 2024 and 2023Ìýwas $2,103Ìýmillion and $2,264Ìýmillion, respectively.

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Expected future contributions and benefit payments related to continuing operations are as follows (dollars in millions):

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Our investment strategy with respect to pension assets is to pursue an investment plan that, over the long term, is expected to protect the funded status of the plan, enhance the real purchasing power of plan assetsÌýand not threaten the plan’s ability to meet currently committed obligations. Additionally, our investment strategy is to achieve returns on plan assets, subject to a prudent level of portfolio risk. Plan assets are invested in a broad range of investments. These investments are diversified in terms of domestic and international equities, both growth and value funds, including small, mid and large capitalization equities; short-term and long-term debt securities; real estate; and cash and cash equivalents. The investments are further diversified within each asset category. The portfolio diversification provides protection against a single investment or asset category having a disproportionate impact on the aggregate performance of the plan assets.

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Our pension plan assets are managed by outside investment managers. The investment managers value our plan assets using quoted market prices, other observable inputs or unobservable inputs. For certain assets, the investment managers obtain third-party appraisals at least annually, which use valuation techniques and inputs specific to the applicable property, marketÌýor geographic location. During 2024 and 2023, there were noÌýtransfers into or out of Level 3 assets.

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We have established target allocations for each asset category. Our pension plan assets are periodically rebalanced based upon our target allocations.

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The fair value of plan assets for the pension plans was $2,196Ìýmillion and $2,270Ìýmillion at December 31, 2024 and 2023, respectively. The following plan assets are measured at fair value on a recurring basis (dollars in millions):

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The following table reconciles the beginning and ending balances of plan assets measured at fair value using unobservable inputs (LevelÌý3) (dollars in millions):

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The asset allocation for our pension plans at December 31, 2024 and 2023 and the target allocation for 2025, by asset category, are as follows:

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Equity securities in our pension plans did not include any direct investments in equity securities of our Company or our affiliates at the end of 2024.

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Defined ContributionÌýPlans

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We have defined contribution plans in a variety of global locations. Our total combined expense for our defined contribution plans for the years ended December 31, 2024, 2023 and 2022 was $29Ìýmillion, $27Ìýmillion and $29Ìýmillion, respectively, primarily related to our U.S. plans.

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In the U.S., we had a money purchase pension plan that covered substantially all of our domestic employees who were hired prior to January 1, 2004. Employer contributions were made based on a percentage of employees� earnings (ranging up to 8%). During 2014, we closed this plan to non-union participants, and in 2015, we closed this plan to union associates. We continue to provide equivalent benefits to those who were covered under this plan into their salary deferral account.

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We have a salary deferral plan covering substantially all U.S. employees. Plan participants may elect to make voluntary contributions to this plan up to a specified amount of their compensation. We contribute an amount equal to the participant’s contribution, not to exceed 4% of the participant’s compensation. For new hires who are not eligible for the cash balance plan, and associates who were covered by the money purchase pension plan prior to its closure, we contribute an additional amount into their salary deferral accounts, not to exceed 6% of the participant’s compensation.

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SUPPLEMENTAL SALARY DEFFERAL PLAN AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

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The ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Supplemental Savings Plan (the “SSPâ€�) is a non-qualified plan covering key management employees and allows participants to defer amounts that would otherwise be paid as compensation. The participant can defer up to 75% of their salary and bonus each year. This plan also provides benefits that would be provided under the ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Salary Deferral Plan if that plan were not subject to legal limits on the amount of contributions that can be allocated to an individual in a single year. The SSP was amended and restated effective as of January 1, 2005 to allow eligible executive employees to comply with Section 409A of the Internal Revenue Code of 1986. Assets of these plans are included in other noncurrent assets and as of December 31, 2024 and 2023 were $53Ìýmillion and $51Ìýmillion, respectively. During each of the years ended December 31, 2024, 2023 and 2022, we expensed approximately $1Ìýmillion as contributions to the SSP.

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The ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Supplemental Executive Retirement PlanÌýis an unfunded non-qualified pension plan established to provide certain executive employees with benefits that could not be provided, due to legal limitations, under the ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Defined Benefit Pension Plan, a qualified defined benefit pension plan, and the ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Money Purchase Pension Plan, a qualified money purchase pension plan.

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Stock-Based Incentive Plan

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On May 5, 2016, our stockholders approved a new ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation 2016 Stock Incentive Plan (the â€�2016 Stock Incentive Planâ€�), which reserved 8.2 million shares for issuance. The ÀÖÌìÌÃfun88(ÖйúÇø)¹Ù·½ÍøÕ¾ Corporation Stock Incentive Plan, as amended and restated (the “Prior Planâ€�), remains in effect for outstanding awards granted pursuant to the Prior Plan, but no further awards may be granted under the Prior Plan. Under the 2016 Stock Incentive Plan, we may grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, phantom stock, performance share units and other stock-based awards to our employees, directors and consultants and to employees and consultants of our subsidiaries, provided that incentive stock options may be granted solely to employees. The terms of the grants under both the 2016 Stock Incentive Plan and the Prior Plan are fixed at the grant date. As of December 31, 2024, we had approximately 5 million shares remaining under the 2016 Stock Incentive Plan available for grant. See “Note 23. Stock-Based Compensation Plan.â€�

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International Plans

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International employees are covered by various post-employment arrangements consistent with local practices and regulations. Such obligations are included in other long-term liabilities in our consolidated balance sheets.