XML 54 R36.htm IDEA: XBRL DOCUMENT v3.25.4
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Components of net periodic benefit cost
The cost to the company of its retirement benefit plans is shown in the following table:
 Year Ended December 31
 Pension BenefitsMedical and Life Benefits
$ in millions202520242023202520242023
Components of net periodic benefit cost (benefit)
Service cost$217 $239 $236 $4 $4 $5 
Interest cost1,612 1,526 1,568 62 62 67 
Expected return on plan assets(2,159)(2,197)(2,098)(85)(87)(85)
Amortization of prior service credit— — — (3)— (1)
Mark-to-market (benefit) expense(514)(450)442 (13)7 (20)
Other6 15 — — — — 
Net periodic benefit cost (benefit)$(838)$(867)$148 $(35)$(14)$(34)
Changes in unamortized benefit plan costs
The table below summarizes the changes in unamortized prior service credit for the years ended December 31, 2023, 2024 and 2025:
$ in millionsPension BenefitsMedical and Life BenefitsTotal
Changes in unamortized prior service credit
Amortization of prior service credit$— $1 $1 
Tax expense— — — 
Decrease (increase) in unamortized prior service credit – 2023— 1 1 
(Increase) decrease in prior service credit— (12)(12)
Amortization of prior service credit
— — — 
Tax expense— 3 3 
(Increase) decrease in unamortized prior service credit – 2024— (9)(9)
Amortization of prior service credit— 3 3 
Tax expense— (1)(1)
Decrease (increase) in unamortized prior service credit – 2025$— $2 $2 
Change in plan assets and amounts recognized in the consolidated statements of financial position
The following table sets forth the funded status and amounts recognized in the consolidated statements of financial position for the company’s defined benefit retirement plans. Pension benefits data includes the qualified plans, foreign plans and U.S. unfunded non-qualified plans for benefits provided to directors, officers and certain employees. The company uses a December 31 measurement date for its plans.
 Pension BenefitsMedical and Life Benefits
$ in millions2025202420252024
Plan Assets
Fair value of plan assets at beginning of year$29,769 $30,251 $1,237 $1,274 
Net gain on plan assets3,244 1,358 129 61 
Employer contributions99 96 31 33 
Participant contributions9 6 2 26 
Benefits paid(2,000)(1,942)(117)(157)
Other10 — — — 
Fair value of plan assets at end of year31,131 29,769 1,282 1,237 
Projected Benefit Obligation
Projected benefit obligation at beginning of year28,992 30,443 1,150 1,246 
Service cost217 239 4 4 
Interest cost1,612 1,526 62 62 
Participant contributions9 6 2 26 
Actuarial loss (gain)578 (1,295)31 (19)
Benefits paid(2,000)(1,942)(117)(157)
Other20 15 — (12)
Projected benefit obligation at end of year29,428 28,992 1,132 1,150 
Funded status$1,703 $777 $150 $87 
The increase in the fair value of plan assets for the year ended December 31, 2025 was primarily driven by net returns on pension plan assets of 11.3 percent, partially offset by $2.1 billion of benefit payments. The increase in our projected benefit obligation for the year ended December 31, 2025, was primarily driven by $1.7 billion of interest cost and a 15 basis point decrease in the pension discount rate from year-end 2024, partially offset by $2.1 billion of benefit payments.
Pension BenefitsMedical and Life Benefits
$ in millions2025202420252024
Classification of amounts recognized in the consolidated statements of financial position
Non-current assets$2,774 $1,851 $393 $333 
Current liability(181)(177)(23)(23)
Non-current liability(890)(897)(220)(223)
Pension plans with accumulated benefit obligations in excess of fair value of plan assets Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets are as follows:
 December 31
$ in millions20252024
Projected benefit obligation$1,074 $1,076 
Accumulated benefit obligation1,061 1,066 
Fair value of plan assets3 3 
Weighted-average plan assumptions
On a weighted-average basis, the following assumptions were used to determine benefit obligations at December 31 of each year and net periodic benefit cost for the following year:
 Pension BenefitsMedical and Life Benefits

202520242023202520242023
Discount rate5.58 %5.73 %5.15 %5.41 %5.69 %5.20 %
Expected long-term return on plan assets7.50 %7.50 %7.50 %7.10 %7.08 %7.12 %
Initial cash balance crediting rate assumed for the next year4.84 %4.78 %4.02 %
Rate to which the cash balance crediting rate is assumed to increase/decrease (the ultimate rate)5.26 %4.90 %4.02 %
Year that the cash balance crediting rate reaches the ultimate rate203120302029
Rate of compensation increase3.00 %3.00 %3.00 %
Initial health care cost trend rate assumed for the next year6.50 %5.90 %6.20 %
Rate to which the health care cost trend rate is assumed to decline (the ultimate trend rate)5.00 %5.00 %5.00 %
Year that the health care cost trend rate reaches the ultimate trend rate203120282028
Plan asset allocation
For the majority of the plans’ assets, the investment policies require that the asset allocation be maintained within the following ranges as of December 31, 2025:
Asset Allocation Ranges
Cash and cash equivalents
0% - 12%
Global public equities
18% - 38%
Fixed-income securities
35% - 55%
Alternative investments
8% - 46%
The table below provides the fair values of the company’s pension and Voluntary Employees’ Beneficiary Association (VEBA) trust plan assets at December 31, 2025 and 2024, by asset category. The table also identifies the level of inputs used to determine the fair value of assets in each category. See Note 1 for the definitions of these levels. Certain investments that are measured at fair value using NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table. As of December 31, 2025 and 2024, there were no investments expected to be sold at a value materially different than NAV.
 Level 1Level 2Level 3Total
$ in millions20252024202520242025202420252024
Asset category
Cash and cash equivalents$147 $223 $1,066 $751 $1,213 $974 
U.S. equities1,719 1,824 1,719 1,824 
International equities1,563 1,570 1,563 1,570 
Fixed-income securities
U.S. Treasuries— 17 4,008 3,520 4,008 3,537 
U.S. Government Agency130 97 130 97 
Non-U.S. Government1 1 429 282 430 283 
Corporate debt135 79 3,850 3,664 3,985 3,743 
Asset backed1,759 1,301 1,759 1,301 
High-yield debt8 12 12 20 20 32 
Bank loans17 16 17 16 
Derivatives and other assets(23)(55)80 99 $2 $2 59 46 
Investments valued using NAV as a practical expedient
U.S. equities1,659 1,486 
International equities4,292 4,071 
Fixed-income funds3,664 3,559 
Private equity funds2,950 3,521 
Real estate funds1,560 1,860 
Other alternatives4,094 3,627 
Payables, net(709)(541)
Fair value of plan assets at the end of the year$3,550 $3,671 $11,351 $9,750 $2 $2 $32,413 $31,006 
Estimated benefit payments
The following table reflects estimated future benefit payments for the next ten years, based upon the same assumptions used to measure the benefit obligation, and includes expected future employee service, as of December 31, 2025:
$ in millionsPension PlansMedical and Life PlansTotal
Year Ending December 31
2026$2,092 $111 $2,203 
20272,136 111 2,247 
20282,164 110 2,274 
20292,185 107 2,292 
20302,201 104 2,305 
2031 through 203510,894 453 11,347