Benefit Plans

12 Months Ended

Dec. 31, 2023

Defined Benefit Plan [Abstract]

Benefits Plans Disclosure

BENEFIT PLANS

The Company maintains a number of retirement and other post-retirement employee benefit plans.

Certain subsidiaries sponsor defined contribution plans. Benefits are determined and funded annually based upon the terms of the plans. Amounts recognized as cost under these plans amounted to $20.1 million, $22.9 million, and $24.8 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Certain subsidiaries sponsor defined benefit plans. Benefits are provided to employees primarily based upon years of service and employees’ compensation for certain periods during the last years of employment. Prior to 2002, the Company’s U.S. operations also provided post-retirement medical benefits to their employees. Contributions for medical benefits are related to employee years of service.

The following tables set forth the change in benefit obligation, the change in plan assets, the funded status, and amounts recognized in the consolidated financial statements for the Company’s defined benefit plans and post-retirement plan at December 31, 2023 and 2022:

	U.S. Pension Benefits				Non-U.S. Pension Benefits				Other Benefits				Total
	2023		2022		2023		2022		2023		2022		2023		2022
Change in benefit obligation:
Benefit obligation at beginning of year	$	110,293	$	141,906	$	785,295	$	1,027,333	$	670	$	875	$	896,258	$	1,170,114
Service cost, gross	1,155		1,665		33,159		36,640		—		—		34,314		38,305
Interest cost	5,023		2,696		19,991		5,927		28		12		25,042		8,635
Actuarial losses (gains)	552		(27,541)		65,734		(219,304)		372		206		66,658		(246,639)
Plan amendments and other	—		—		—		13		—		—		—		13
Benefits paid	(8,477)		(8,433)		(53,164)		(34,949)		(456)		(423)		(62,097)		(43,805)
Impact of foreign currency	—		—		66,306		(30,365)		—		—		66,306		(30,365)
Benefit obligation at end of year	$	108,546	$	110,293	$	917,321	$	785,295	$	614	$	670	$	1,026,481	$	896,258
Change in plan assets:
Fair value of plan assets at beginning of year	$	87,341	$	113,523	$	894,865	$	1,008,261	$	—	$	—	$	982,206	$	1,121,784
Actual return on plan assets	7,083		(17,863)		38,133		(96,866)		—		—		45,216		(114,729)
Employer contributions	114		114		26,414		24,441		456		423		26,984		24,978
Plan participants’ contributions	—		—		19,214		17,600		—		—		19,214		17,600
Benefits paid	(8,477)		(8,433)		(53,164)		(34,949)		(456)		(423)		(62,097)		(43,805)
Impact of foreign currency	—		—		84,715		(23,622)		—		—		84,715		(23,622)
Fair value of plan assets at end of year	$	86,061	$	87,341	$	1,010,177	$	894,865	$	—	$	—	$	1,096,238	$	982,206
Funded status	$	(22,485)	$	(22,952)	$	92,856	$	109,570	$	(614)	$	(670)	$	69,757	$	85,948

The change in the benefit obligation for 2023 is primarily related to a decrease of the discount rates and favorable currency translation.

The accumulated benefit obligations at December 31, 2023 and 2022 were $108.5 million and $110.3 million, respectively, for the U.S. defined benefit pension plan and $775.1 million and $665.1 million, respectively, for all non-U.S. plans. Certain of the plans included within non-U.S. pension benefits have accumulated benefit obligations which exceed the fair value of plan assets. The projected benefit obligation, the accumulated benefit obligation, and fair value of assets of these plans as of December 31, 2023 were $137.5 million, $126.5 million, and $28.2 million, respectively. The projected benefit obligation, the accumulated benefit obligation, and fair value of assets of these plans as of December 31, 2022 were $121.6 million, $111.7 million, and $26.9 million, respectively.

Amounts recognized in the consolidated balance sheets consist of:

	U.S. Pension Benefits				Non-U.S. Pension Benefits				Other Benefits				Total
	2023		2022		2023		2022		2023		2022		2023		2022
Other non-current assets	$	—	$	—	$	202,119	$	202,368	$	—	$	—	$	202,119	$	202,368
Accrued and other liabilities	(124)		(131)		(5,368)		(4,986)		(106)		(115)		(5,598)		(5,232)
Pension and other post-retirement liabilities	(22,361)		(22,821)		(103,895)		(90,342)		(508)		(555)		(126,764)		(113,718)
Accumulated other comprehensive loss (income)	47,631		50,822		222,346		151,924		19		(430)		269,996		202,316
Total	$	25,146	$	27,870	$	315,202	$	258,964	$	(595)	$	(1,100)	$	339,753	$	285,734

The following amounts have been recognized in accumulated other comprehensive income (loss), before taxes, at December 31, 2023 and have not yet been recognized as a component of net periodic pension cost:

	U.S. Pension Benefits				Non-U.S. Pension Benefits				Other Benefits				Total				Total, After Tax
	2023		2022		2023		2022		2023		2022		2023		2022		2023		2022
Plan amendments and prior service cost	$	—	$	—	$	(21,755)	$	(24,701)	$	(276)	$	(351)	$	(22,031)	$	(25,052)	$	(18,212)	$	(20,237)
Actuarial losses (gains)	47,631		50,822		244,101		176,625		295		(79)		292,027		227,368		231,446		$	180,278
Total	$	47,631	$	50,822	$	222,346	$	151,924	$	19	$	(430)	$	269,996	$	202,316	$	213,234	$	160,041

The following changes in plan assets and benefit obligations were recognized in other comprehensive income (loss), before taxes, for the year ended December 31, 2023:

	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Benefits		Total		Total, After Tax
Net actuarial losses (gains)	$	(999)	$	62,592	$	372	$	61,965	$	48,800
Plan amendment	—		—		—		—		—
Amortization of:
Actuarial (losses) gains	(2,192)		(10,448)		2		(12,638)		(10,010)
Plan amendments and prior service cost	—		4,323		75		4,398		3,528
Impact of foreign currency	—		13,955		—		13,955		11,762
Total	$	(3,191)	$	70,422	$	449	$	67,680	$	54,080

The assumed discount rates and rates of increase in future compensation levels used in calculating the projected benefit obligations vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows:

	U.S.				Non-U.S.
	2023		2022		2023		2022
Discount rate	4.68	%	4.87	%	2.07	%	2.57	%
Compensation increase rate	n/a		n/a		0.84	%	0.87	%
Expected long-term rate of return on plan assets	6.75	%	6.75	%	3.84	%	3.84	%
Interest crediting rate	n/a		n/a		1.50	%	1.50	%

The assumed discount rates, rates of increase in future compensation levels, and the long-term rate of return used in calculating the net periodic pension cost vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows:

	U.S.						Non-U.S.
	2023		2022		2021		2023		2022		2021
Discount rate	4.87	%	2.57	%	2.22	%	2.57	%	0.40	%	0.63	%
Compensation increase rate	n/a		n/a		n/a		0.87	%	0.85	%	0.85	%
Expected long-term rate of return on plan assets	6.75	%	5.75	%	5.75	%	3.84	%	3.78	%	3.78	%

Net periodic pension cost and net periodic post-retirement benefit for the defined benefit plans and U.S. post-retirement plan include the following components for the years ended December 31:

	U.S.						Non-U.S.						Other Benefits						Total
	2023		2022		2021		2023		2022		2021		2023		2022		2021		2023		2022		2021
Service cost, net	$	1,155	$	1,665	$	1,498	$	13,945	$	19,040	$	19,558	$	—	$	—	$	—	$	15,100	$	20,705	$	21,056
Interest cost on projected benefit obligations	5,023		2,696		2,194		19,991		5,927		3,347		28		12		8		25,042		8,635		5,549
Expected return on plan assets	(5,532)		(6,189)		(5,974)		(34,675)		(36,308)		(35,511)		—		—		—		(40,207)		(42,497)		(41,485)
Recognition of actuarial losses/(gains) and prior service cost	2,192		2,337		2,916		6,061		14,665		21,725		(76)		(106)		(112)		8,177		16,896		24,529
Net periodic pension cost/(benefit)	$	2,838	$	509	$	634	$	5,322	$	3,324	$	9,119	$	(48)	$	(94)	$	(104)	$	8,112	$	3,739	$	9,649

The projected post-retirement benefit obligation was principally determined using discount rates of 4.49% in 2023 and 4.67% in 2022. Net periodic post-retirement benefit cost was principally determined using discount rates of 4.67% in 2023, 1.94% in 2022, and 1.47% in 2021. The health care cost trend rate was 5.7% in 2023 and 2022, and 5.9% in 2021, decreasing to 4.50% in 2029.

The Company’s overall asset investment strategy is to achieve long-term growth while minimizing volatility by widely diversifying among asset types and strategies. Target asset allocations and investment return criteria are established by the pension committee or designated officers of each plan. Target asset allocation ranges for the U.S. pension plan include 40-60% in equity securities, 23-33% in fixed income securities, and 15-25% in other types of investments. International plan assets relate primarily to the Company’s Swiss plan with target allocations of 24-45% in equities, 35-55% in fixed income securities, and 15-25% in other types of investments. Actual results are monitored against targets and the trustees are required to report to the members of each plan, including an analysis of investment performance on an annual basis at a minimum. Day-to-day asset management is typically performed by third-party asset managers, reporting to the pension committees or designated officers.

The long-term rate of return on plan asset assumptions used to determine pension expense under U.S. GAAP is generally based on estimated future returns for the target investment mix determined by the trustees as well as historical investment performance.

The following table presents the fair value measurement of the Company’s plan assets by hierarchy level:

	December 31, 2023								December 31, 2022
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Observable Inputs for Identical Assets (Level 2)		Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Observable Inputs for Identical Assets (Level 2)		Unobservable Inputs (Level 3)		Total
Asset Category:
Cash and Cash Equivalents	$	48,710	$	—	$	—	$	48,710	$	99,535	$	—	$	—	$	99,535
Equity Securities:
Mettler-Toledo Stock	2,606		—		—		2,606		3,107		—		—		3,107
Equity Mutual Funds:
U.S.(1)	5,831		24,856		—		30,687		5,753		24,133		—		29,886
International(2)	294,703		10,314		—		305,017		89,247		9,496		—		98,743
Emerging Markets(3)	19,941		—		—		19,941		127,506		—		—		127,506
Fixed Income Securities:
Corporate/Government Bonds(4)	91,495		—		—		91,495		79,221		—		—		79,221
Fixed Income Mutual Funds:
Insurance Contracts(5)	—		25,458		1,972		27,430		—		25,126		1,775		26,901
Core Bond(6)	144,948		57,286		—		202,234		73,315		62,956		—		136,271
Real Asset Mutual Funds:
Real Estate(7)	—		186,804		—		186,804		—		167,693		—		167,693
Commodities(8)	50,109		—		—		50,109		49,603		—		—		49,603
Other Types of Investments:
Debt Securities (9)	45,156		—		—		45,156		41,099		—		—		41,099
Global Allocation Funds(10)	4,326		—		—		4,326		4,370		—		—		4,370
Multi-Strategy Fund of Hedge Funds (11)	—		22,336		—		22,336		—		17,702		—		17,702
Insurance Linked Securities(12)	2,870		—		—		2,870		13,243		—		—		13,243
Total assets in fair value hierarchy	$	710,695	$	327,054	$	1,972	$	1,039,721	$	585,999	$	307,106	$	1,775	$	894,880
Investments measured at net asset value:
International(13)							—								2,409
Emerging Markets (13)							6,444								5,980
Multi-Strategy Fund of Hedge Funds (13)							50,073								78,937
Total pension assets at fair value							$	1,096,238							$	982,206

_____________________________________

(1)Represents primarily large capitalization equity mutual funds tracking the S&P 500 Index.

(2)Represents all capitalization core and value equity mutual funds located primarily in Switzerland, the United Kingdom, and Canada.

(3)Represents core and growth mutual funds and funds of mutual funds invested in emerging markets primarily in Eastern Europe, Latin America, and Asia.

(4)Represents investments in high-grade corporate and government bonds located in Switzerland and the European Union.

(5)Represents fixed and variable rate annuity contracts provided by insurance companies.

(6)Represents fixed income mutual funds invested in the U.S., the United Kingdom, Switzerland, and European government bonds, high-grade corporate bonds, mortgage-backed securities, and collateralized mortgage obligations.

(7)Represents mutual funds invested in real estate located primarily in Switzerland.

(8)Represents commodity funds invested across a broad range of sectors.

(9)Represents a loan to a wholly owned subsidiary of the Company. See Note 10 for additional disclosure.

(10)Represents mutual funds invested globally in both equities and fixed income securities.

(11)Represents currency hedged versions of the non-currency hedged equity funds held in the United Kingdom.

(12)Represents a broadly diversified portfolio of assets that carry exposure to insurance risks, particularly insurance linked securities.

(13)Investments that are measured using the net asset value (NAV) per share practical expedient have not been categorized in the fair value hierarchy. The amounts presented above are intended to permit reconciliation of the fair value hierarchy to the fair value of total plan assets in order to determine the amounts included in the consolidated balance sheet.

The fair values of the Company’s stock and corporate and government bonds are valued at the year-end closing price as reported on the securities exchange on which they are traded. Mutual funds are valued at the exchange-listed year-end closing price or at the net asset value of shares held by the fund at the end of the year. Insurance contracts are valued by discounting the related cash flows using a current year-end market rate or at cash surrender value, which is presumed to equal fair value. Funds of hedge funds are valued at the net asset value of shares held by the fund at the end of the year.

The following table presents a roll-forward of activity for the years ended December 31, 2023 and 2022 for Level 3 asset categories:

	Insurance Contracts
Balance at December 31, 2021	$	1,787
Actual return on plan assets related to assets held at end of year	(1)
Purchases	80
Impact of foreign currency	(91)
Balance at December 31, 2022	$	1,775
Actual return on plan assets related to assets held at end of year	31
Purchases	91
Impact of foreign currency	75
Balance at December 31, 2023	$	1,972

There were no transfers between any asset levels during the years ended December 31, 2023 and 2022.

The following benefit payments, which reflect expected future service as appropriate, are expected to be paid:

	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Benefits, Net of Subsidy		Total
2024	$	8,674	$	55,323	$	106	$	64,103
2025	8,738		57,135		94		65,967
2026	8,724		56,092		83		64,899
2027	8,688		57,814		73		66,575
2028	8,637		58,505		64		67,206
2029-2033	40,720		284,418		213		325,351

In 2024, the Company expects to make employer pension contributions of approximately $2.1 million to its U.S. pension plan, $27.3 million to its non-U.S. pension plan and employer contributions of approximately $0.2 million to its U.S. post-retirement medical plan.