Pension and Post-Employment Benefits (Tables)

12 Months Ended

Dec. 31, 2025


(in millions)	2025		2024			2023
Service cost/(credit)	$	1.5	$	(4.9	)	$	3.4
Interest cost on PBO		—		18.6			19.6
Expected return on plan assets		—		(25.9	)		(25.2	)
Amortization of prior service cost		—		16.8			0.5
Amortization of actuarial net losses		—		—			(1.6	)
Recycling of residual reserves		—		138.8			—
Net periodic cost/(benefit)	$	1.5	$	143.4		$	(3.3	)

The income statement captions are shown here:


Selling, general and administrative	2025		2024			2023
Service cost/(credit)	$	1.5	$	(4.9	)	$	3.4

Other expense/(income), net	2025		2024			2023
Interest cost on PBO	$	—		18.6			19.6
Expected return on plan assets		—		(25.9	)		(25.2	)
Amortization of prior service cost		—		—			0.5
Amortization of actuarial net losses		—		—			(1.6	)
	$	—	$	(7.3	)	$	(6.7	)

Pension scheme settlement charge	2025		2024			2023
Amortization of prior service cost	$	—		16.8			—
Recycling of residual reserves		—		138.8			—
		—		155.6			—
Tax relating to the amortization of prior service cost		—		(4.2	)		—
Tax relating to the recycling of residual reserves		—		(34.7	)		—
	$	—	$	116.7		$	—

The other financial statement captions relating to the buy-out settlement are shown here:


Recognized in Other Comprehensive Income	2025		2024			2023
Recycling of residual reserves	$	—		138.8			—
Release of historic cumulative translation adjustments		—		(0.7	)		—
		—		138.1			—
Tax relating to the recycling of residual reserves		—		(34.7	)		—
Tax relating to historic cumulative translation adjustments		—		(11.0	)		—
	$	—	$	92.4		$	—

Recognized in Reclassifications out of Accumulated Other Comprehensive Loss	2025		2024			2023
Recycling of residual reserves	$	—		138.8			—
Release of historic cumulative translation adjustments		—		(0.7	)		—
		—		138.1			—
Tax relating to the recycling of residual reserves		—		(34.7	)		—
Tax relating to historic cumulative translation adjustments		—		(11.0	)		—
	$	—	$	92.4		$	—


Plan assumptions at December 31, (%):	2025	2024		2023
Discount rate	n/a		5.18		4.59
Inflation rate	n/a		2.85		2.70
Rate of return on plan assets – overall on bid-value	n/a		4.20		4.25


Plan asset allocation by category (%):	2025	2024		2023
Debt securities and insurance contracts	n/a		—		96
Cash	n/a		100		4
	n/a		100		100

Movements in PBO and Fair Value of Plan Assets

Movements in PBO and fair value of UK Plan assets are as follows:


(in millions)	2025			2024
Change in PBO:
Opening balance	$	0.1		$	424.1
Interest cost		—			18.6
Service cost/(credit)		1.5			(4.9	)
Benefits paid		—			(32.9	)
Plan amendments		—			8.4
Scheme closure expenses		(1.6	)		—
Actuarial losses/(gains)		—			3.7
Settlements		—			(419.2	)
Exchange effect		—			2.3
Closing balance	$	—		$	0.1
Fair value of plan assets:
Opening balance	$	2.5		$	459.2
Return of funds to cover historic expenses		(0.9	)		(8.4	)
Scheme closure expenses		(1.6	)		—
Benefits paid		—			(32.9	)
Actual return on assets		—			1.5
Settlements		—			(419.2	)
Exchange effect		—			2.3
Closing balance	$	—		$	2.5
Net pension asset	$	—		$	2.4

Fair Value of Pension Assets

The fair values of pension assets by level of input were as follows:


(in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
At December 31, 2024
Cash		2.5						2.5
Total plan assets	$	2.5	$	—	$	—	$	2.5

Reconciliation of Fair Value of Plan Assets Measured Using Significant Unobservable Inputs

The reconciliation of the fair value of the UK Plan assets measured using significant unobservable inputs was as follows:


(in millions)	Other Assets
Balance at December 31, 2023	$	438.7
Realized/unrealized gains/(losses):
Relating to assets still held at the reporting date		(2.2	)
Purchases, issuances and settlements		(438.8	)
Exchange effect		2.3
Balance at December 31, 2024	$	—

German Plan [Member]

Plan Net Pension Credit

The service cost shown in the table below has been recognized in selling, general and administrative expenses within Corporate costs and the other items recognized within other income, net.


(in millions)	2025		2024			2023
Service cost	$	—	$	—		$	0.1
Interest cost on PBO		0.3		0.3			0.3
Amortization of actuarial net loss/(gain)		—		(0.2	)		(0.5	)
Net periodic cost/(benefit)	$	0.3	$	0.1		$	(0.1	)

Plan assumptions at December 31, (%):


Discount rate	3.80	3.20	3.70
Inflation rate	2.25	2.25	2.25
Rate of increase in compensation levels	2.75	2.75	2.75

Movements in PBO and Fair Value of Plan Assets

Movements in PBO of the German plan are as follows:


(in millions)	2025			2024
Change in PBO:
Opening balance	$	9.0		$	9.1
Service cost		—			—
Interest cost		0.3			0.3
Benefits paid		(0.5	)		(0.4	)
Actuarial losses/(gains)		(0.6	)		0.5
Exchange effect		1.2			(0.5	)
Closing balance	$	9.4		$	9.0

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

INNOSPEC INC. 10-K