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Pension and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits PENSION AND OTHER POSTRETIREMENT BENEFITS
The Company and certain of its subsidiaries sponsor qualified and non-qualified defined benefit pension plans, principally non-contributory, covering eligible employees. Our pension plans consist of both funded and unfunded plans, and our domestic plans are frozen to future benefit accruals. The majority of participants in these plans are retired employees or former employees of previously divested businesses. Plan benefits are based primarily on an employee’s years of service and pay for each year that the employee participated in the plan. We fund our pension plans in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”), the Pension Protection Act of 2006, the Internal Revenue Code of 1986 and other applicable law, rules and regulations. Plan assets consist principally of corporate bonds, equity securities, common collective trust funds, U.S. government securities and short-term investments. The Company’s Common Stock represented approximately 1.0% and 1.2% of the fair value of plan assets at December 31, 2023 and 2022, respectively.

In addition, the Company sponsors health and welfare plans that provide postretirement health care and life insurance benefits to eligible retired employees and their covered dependents. Eligibility is based in part on certain age and service requirements at the time of their retirement. Most of the plans are contributory and contain cost-sharing features such as deductibles and coinsurance which are adjusted annually, as well as caps on the annual dollar amount we will contribute toward the cost of coverage. Claims and premiums for which we are responsible are paid with our own funds.

The pension plan disclosures herein include information related to our domestic pension and postretirement benefit plans only, unless otherwise noted. At December 31, 2023 and 2022, the Consolidated Balance Sheets also include a liability of $44 million and $45 million, respectively, in “Pension and postretirement benefit obligations” relating to our non-U.S. pension plans and certain other retirement severance plans.

We use a December 31 measurement date for all pension and other postretirement benefit plans.
The following table sets forth the change in benefit obligation for our pension and postretirement benefit plans.
Pension BenefitsPostretirement Benefits
2023202220232022
Change in benefit obligation:
Benefit obligation, beginning of year$3,661 $4,909 $222 $276 
Service cost— — 1 1 
Interest cost207 150 12 8 
Actuarial loss (gain)137 (1,089)(11)(29)
Benefits paid(294)(309)(40)(43)
Participants’ contributions— — 6 6 
Retiree Medicare drug subsidy— — 3 3 
Benefit obligation, end of year$3,711 $3,661 $193 $222 
The actuarial loss of $137 million, included in the change in benefit obligation for pension benefits in 2023, was driven by a 30 basis point decrease in the discount rate from December 31, 2022 to December 31, 2023.

The following table sets forth the change in plan assets for our pension and postretirement benefit plans.
Pension BenefitsPostretirement Benefits
2023202220232022
Change in plan assets:
Fair value of plan assets, beginning of year$2,363 $3,191 $— $— 
Actual return (loss) on plan assets243 (592)— — 
Employer contributions195 73 31 34 
Benefits paid(294)(309)(40)(43)
Participants’ contributions— — 6 6 
Retiree Medicare drug subsidy— — 3 3 
Fair value of plan assets, end of year$2,507 $2,363 $— $— 
The funded status of pension and postretirement benefit obligations and the related amounts recognized on the Consolidated Balance Sheets were as follows:
Pension BenefitsPostretirement Benefits
At December 31,2023202220232022
Funded status at end of year$(1,204)$(1,298)$(193)$(222)
Amounts recognized on the Consolidated Balance Sheets:
Current liabilities$(74)$(73)$(30)$(34)
Noncurrent liabilities(1,130)(1,225)(163)(188)
Net amounts recognized$(1,204)$(1,298)$(193)$(222)
Our qualified pension plans were underfunded by $378 million and $485 million at December 31, 2023 and 2022, respectively.
The following amounts were recognized in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.
Pension BenefitsPostretirement Benefits
At December 31,2023202220232022
Net actuarial (loss) gain$(1,585)$(1,646)$150 $157 
Net prior service cost(1)(1)— — 
(1,586)(1,647)150 157 
Deferred income taxes 424 438 (15)(17)
Net amount recognized in accumulated other
comprehensive income (loss)
$(1,162)$(1,209)$135 $140 
The accumulated benefit obligation for all defined benefit pension plans was $3.71 billion and $3.66 billion at December 31, 2023 and 2022, respectively.
 
Information for the pension plans with an accumulated benefit obligation in excess of plan assets is set forth below.
At December 31,20232022
Projected and accumulated benefit obligation$3,711 $3,661 
Fair value of plan assets$2,507 $2,363 
The following tables present the components of net periodic cost (benefit) and amounts recognized in other comprehensive income (loss).
Pension BenefitsPostretirement Benefits
Year Ended December 31,202320222021202320222021
Components of net periodic cost:
Service cost$— $— $— $1 $1 $1 
Interest cost207 150 145 12 8 8 
Expected return on plan assets(128)(172)(188)— — — 
Amortization of actuarial losses (gains)83 97 93 (18)(15)(15)
Settlements (a)
— — 10 — — — 
Net periodic cost (benefit) (b)
$162 $75 $60 $(5)$(6)$(6)
(a) Reflects the accelerated recognition of a portion of the unamortized actuarial losses due to the volume of lump sum benefit payments in one of our pension plans.
(b) Includes amounts reflected in net earnings from discontinued operations of $7 million for the year ended December 31, 2023 and $3 million for each of the years ended December 31, 2022 and 2021.
The service cost component of net periodic cost is presented on the Consolidated Statements of Operations within operating income. All other components of net periodic cost are presented below operating income, in “Other items, net.”
Pension BenefitsPostretirement Benefits
Year Ended December 31,202320222021202320222021
Other comprehensive income (loss):
Actuarial (loss) gain$(22)$325 $(27)$11 $29 $18 
Share of equity investee— 1 1 — — — 
Settlements— — 10 — — — 
Amortization of actuarial losses (gains) 83 97 93 (18)(15)(15)
61 423 77 (7)14 3 
Deferred income taxes(14)(103)(19)2 (3)(1)
Recognized in other comprehensive income
   (loss), net of tax		$47 $320 $58 $(5)$11 $2 

Pension BenefitsPostretirement Benefits
202320222021202320222021
Weighted average assumptions used to determine benefit obligations at December 31:
Discount rate5.6 %5.9 %3.2 %5.7 %6.0 %3.0 %
Rate of compensation increase— %— %— %N/AN/AN/A
Weighted average assumptions used to determine net periodic costs for the year ended December 31:
Discount rate5.9 %3.2 %2.9 %6.0 %3.0 %2.6 %
Expected long-term return on plan assets5.7 %5.6 %5.9 %N/AN/AN/A
Cash balance interest crediting rate5.0 %5.0 %5.0 %N/AN/AN/A
Rate of compensation increase— %— %— %N/AN/AN/A
N/A - not applicable

The discount rates are determined primarily based on the yield of a portfolio of high quality bonds, providing cash flows necessary to meet the pension plans’ expected future benefit payments, as determined for the projected benefit obligations. The expected return on plan assets assumption is derived using the current and expected asset allocation of the pension plan assets and considering historical as well as expected returns on various classes of plan assets.

The following additional assumptions were used in accounting for postretirement benefits.
20232022
Projected health care cost trend rate (pre-65)6.5 %6.8 %
Projected health care cost trend rate (post-65)6.5 %6.8 %
Ultimate trend rate5.0 %5.0 %
Year ultimate trend rate is achieved 20302030
Plan Assets
The Paramount Global Investments Committee (the “Committee”) determines the strategy for the investment of pension plan assets. The Committee establishes target asset allocations for our pension plan trusts based upon an analysis of the timing and amount of projected benefit payments, projected company contributions, the expected returns and risk of the asset classes and the correlation of those returns. The target asset allocation for the Company’s domestic pension plans is to invest between 60% - 68% in liability hedging assets, 22% - 30% in equity securities, 3% - 10% in real estate and real assets and the remainder in cash, cash equivalents, Paramount stock and other investments. At December 31, 2023, the trusts were invested approximately 61% in liability hedging assets, 25% in equity securities, 6% in real estate and real assets, and the remainder in cash, cash equivalents, Paramount stock and other investments. Liability hedging assets consist of a diversified portfolio of fixed income instruments that are substantially investment grade, with a duration that approximates the duration of the liabilities covered by the trust. All equity portfolios are diversified between U.S. and non-U.S. equities and include large and small capitalization equities. The asset allocations are reviewed regularly.

The following tables set forth our pension plan assets measured at fair value on a recurring basis at December 31, 2023 and 2022. These assets have been categorized according to the three-level fair value hierarchy established by the FASB which prioritizes the inputs used in measuring fair value. See Note 12 for a description of the levels within this hierarchy. There are no investments categorized as Level 3.
At December 31, 2023Level 1Level 2Total
Cash and cash equivalents (a)
$— $69 $69 
Fixed income securities:
U.S. treasury securities107 — 107 
Government-related securities— 129 129 
Corporate bonds (b)
— 1,164 1,164 
Mortgage-backed and asset-backed securities— 128 128 
Equity securities:
U.S. large capitalization89 — 89 
U.S. small capitalization18 — 18 
Exchange Trade Fund (ETF)27 — 27 
Other— 8 8 
Total assets in fair value hierarchy$241 $1,498 $1,739 
Common collective funds measured at net asset value (c) (d)
676 
Limited partnerships measured at net asset value (c)
10 
Mutual funds measured at net asset value (c)
82 
Investments, at fair value$2,507 
At December 31, 2022Level 1Level 2Total
Cash and cash equivalents (a)
$— $3 $3 
Fixed income securities:
U.S. treasury securities108 — 108 
Government-related securities— 133 133 
Corporate bonds (b)
— 1,144 1,144 
Mortgage-backed and asset-backed securities— 101 101 
Equity securities:
U.S. large capitalization48 — 48 
U.S. small capitalization63 — 63 
Total assets in fair value hierarchy$219 $1,381 $1,600 
Common collective funds measured at net asset value (c) (d)
660 
Limited partnerships measured at net asset value (c)
11 
Mutual funds measured at net asset value (c)
92 
Investments, at fair value$2,363 
(a)  Assets categorized as Level 2 reflect investments in money market funds.
(b)  Securities of diverse sectors and industries, substantially all investment grade.
(c)  In accordance with FASB guidance, investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
(d)  Underlying investments consist mainly of U.S. large capitalization and international equity securities.
Money market investments are carried at amortized cost which approximates fair value due to the short-term maturity of these investments. Investments in equity securities are reported at fair value based on quoted market prices on national security exchanges. The fair value of investments in common collective funds and mutual funds is determined using the net asset value (“NAV”) provided by the administrator of the fund as a practical expedient. The NAV is determined by each fund’s trustee based upon the fair value of the underlying assets owned by the fund, less liabilities, divided by the number of outstanding units. The fair value of U.S. treasury securities is determined based on quoted market prices in active markets. The fair value of government related securities and corporate bonds is determined based on quoted market prices on national security exchanges, when available, or using valuation models which incorporate certain other observable inputs including recent trading activity for comparable securities and broker quoted prices. The fair value of mortgage-backed and asset-backed securities is based upon valuation models which incorporate available dealer quotes, projected cash flows and market information. The fair value of limited partnerships has been estimated using the NAV of the ownership interest. The NAV is determined using quarterly financial statements issued by the partnership which determine the value based on the fair value of the underlying investments.

Future Benefit Payments
Estimated future benefit payments are as follows: 
202420252026202720282029-2033
Pension$322 $317 $314 $308 $307 $1,375 
Postretirement$31 $28 $26 $23 $21 $74 
Retiree Medicare drug subsidy$3 $3 $3 $3 $2 $10 
In 2024, we expect to make $13 million in contributions to our qualified pension plans for minimum funding requirements under ERISA and $76 million to our non-qualified pension plans to satisfy benefit payments due
under these plans. Also in 2024, we expect to contribute approximately $31 million to our other postretirement benefit plans to satisfy our portion of benefit payments due under these plans.

Multiemployer Pension and Postretirement Benefit Plans
We contribute to a number of multiemployer defined benefit pension plans under the terms of collective bargaining agreements that cover our union-represented employees including talent, writers, directors, producers and other employees, primarily in the entertainment industry. The other employers participating in these multiemployer plans are primarily in the entertainment and other related industries. The risks of participating in multiemployer plans are different from single-employer plans as assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers and if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. In addition, if we choose to stop participating in some of its multiemployer plans we may be required to pay those plans a withdrawal liability based on the underfunded status of the plan. We recognize the net periodic cost for multiemployer pension and postretirement benefit plans based on the required contributions to the plans.
The financial health of a multiemployer plan is indicated by the zone status, as defined by the Pension Protection Act of 2006. Plans in the red zone are in critical status; those in the yellow zone are in endangered status; and those in the green zone are neither critical nor endangered.

The table below presents information concerning our participation in multiemployer defined benefit pension plans.
Employer Identification Number/Pension Plan NumberPension
Protection Act		Company ContributionsExpiration Date of Collective Bargaining Agreement
Zone Status (a)
Pension Plan20232022202320222021
AFTRA Retirement Plan (b)
13-6414972-001GreenGreen$18 $16 $17 6/30/2026
Directors Guild of America - Producer (b)
95-2892780-001GreenGreen17 19 23 6/30/2026
Producer-Writers Guild of America (b)
95-2216351-001GreenGreen24 30 26 5/1/2026
Screen Actors Guild - Producers (b)
95-2110997-001GreenGreen27 30 45 6/30/2026
Motion Picture Industry95-1810805-001GreenGreen48 63 66 (c)
I.A.T.S.E. Local No. 33 Pension Trust Fund 95-6377503-001GreenGreen2 5 10 12/31/2025
Other Plans15 14 16 
Total contributions$151 $177 $203 
(a) The zone status for each individual plan listed was certified by each plan’s actuary as of the beginning of the plan years for 2023 and 2022. The plan year is the twelve months ending December 31 for each plan listed above except AFTRA Retirement Plan which has a plan year ending November 30.
(b) The Company was listed in these plan’s most recent Form 5500 as providing more than 5% of total contributions for the plan.
(c) The expiration dates range from July 31, 2024 through March 2, 2025.
As a result of the above noted zone status there were no funding improvements or rehabilitation plans implemented, as defined by ERISA, nor any surcharges imposed for any of the individual plans listed.

We also contribute to multiemployer plans that provide postretirement healthcare and other benefits to certain employees under collective bargaining agreements. The contributions to these plans were $172 million, $192 million and $184 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Defined Contribution Plans
We sponsor defined contribution plans for the benefit of employees meeting eligibility requirements. Employer contributions to such plans were $151 million, $137 million and $106 million for the years ended December 31, 2023, 2022 and 2021, respectively.