XML 67 R46.htm IDEA: XBRL DOCUMENT v3.25.4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Changes in benefit obligations and the fair value of plan assets for our pension and other postretirement benefit plans
The following table sets forth the changes in the benefit obligations and the fair value of plan assets for our pension and other postretirement benefit plans (in millions):
Pension PlansOther Postretirement Benefit Plans
Year Ended December 31,2025202420252024
Benefit obligation at beginning of year1
$6,045 $6,544 $185 $297 
Service cost103 105 3 3 
Interest cost300 306 11 17 
Participant contributions6 6 16 18 
Foreign currency exchange rate changes117 (124)3 (3)
Amendments14 (2)— — 
Net actuarial loss (gain)106 
2
(213)
2
— 11 
Benefits paid(473)(478)(38)(65)
Divestitures(1)(78)— (1)
Settlements(13)(22)(1)(92)
3
Curtailments(3)
4
(1)— — 
Special termination benefits27 
4
1 — — 
Other— 1 — — 
Benefit obligation at end of year1
$6,228 $6,045 $179 $185 
Fair value of plan assets at beginning of year$6,435 $7,260 $69 $176 
Actual return on plan assets591 345 9 6 
Employer contributions29 31 — — 
Participant contributions6 6 — 12 
Foreign currency exchange rate changes206 (203)— — 
Transfers(332)
5
(523)
5
— — 
Benefits paid(400)(410)(14)(33)
Divestitures
— (62)— — 
Settlements(12)(9)— (92)
3
Other— — 3 — 
Fair value of plan assets at end of year$6,523 $6,435 $67 $69 
Net asset (liability) recognized$295 $390 $(112)$(116)
1For pension plans, the benefit obligation is the projected benefit obligation. For other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was $6,187 million and $6,008 million as of December 31, 2025 and 2024, respectively.
2A change in the weighted-average discount rate assumption was the primary driver of net actuarial loss (gain) during 2025 and 2024. For our U.S. qualified pension plan, a decrease in the discount rate resulted in an actuarial loss of $112 million during 2025, and an increase in the discount rate resulted in an actuarial gain of $178 million during 2024. Additional drivers of net actuarial loss (gain) included other assumption updates and plan experience.
3In 2024, the Company settled its U.S. other postretirement benefit obligations such that core life insurance benefits will be funded by an insurance company beginning September 11, 2024 for the lifetime of certain retirees. The transaction resulted in no change to underlying benefits or plan administration, only a change to the future financing of the benefits. Pursuant to the settlement, the Company transferred $92 million of plan assets and liabilities to an insurer and recognized a $19 million net settlement gain related to the acceleration of existing unrecognized gains.
4The curtailment loss and special termination benefits were primarily related to the benefit uplifts provided by the Company to active participants pursuant to the group annuity purchase (“buy-in”) for a non-U.S. defined benefit plan. The Company intends to convert the buy-in to a buy-out in the future, at which time the insurer would assume full responsibility for the plan obligations.
5Transfers represent $332 million and $523 million of surplus international plan assets transferred from pension trusts to general assets of the Company as of December 31, 2025 and 2024, respectively.
Pension and other benefit amounts recognized in consolidated balance sheets
Pension and other postretirement benefit plan amounts recognized in our consolidated balance sheets were as follows (in millions):
Pension PlansOther Postretirement Benefit Plans
December 31,2025202420252024
Other noncurrent assets$1,046 $1,219 $— $— 
Accounts payable and accrued expenses(70)(68)(8)(6)
Other noncurrent liabilities(681)(761)(104)(110)
Net asset (liability) recognized$295 $390 $(112)$(116)
Schedule of pension plans with projected benefit obligation in excess of fair value of plan assets
Certain of our pension plans have a projected benefit obligation in excess of the fair value of plan assets. For these plans, the projected benefit obligation and the fair value of plan assets were as follows (in millions):
December 31,20252024
Projected benefit obligation$4,829 $4,902 
Fair value of plan assets4,078 4,072 
Accumulated benefit obligations in excess of fair value of plan assets
Certain of our pension plans have an accumulated benefit obligation in excess of the fair value of plan assets. For these plans, the accumulated benefit obligation and the fair value of plan assets were as follows (in millions):
December 31,20252024
Accumulated benefit obligation$4,770 $4,882 
Fair value of plan assets4,045 4,072 
Total pension assets for U.S. and non-U.S. plans
The following table presents total assets by asset class for our U.S. and non-U.S. pension plans (in millions):
U.S. Pension PlansNon-U.S. Pension Plans
December 31,2025202420252024
Cash and cash equivalents$171 $160 $958 $419 
Equity securities:
U.S.-based companies471 469 61 582 
International-based companies325 248 56 455 
Fixed-income securities:
Government bonds906 626 444 383 
Corporate bonds and debt securities210 442 174 104 
Mutual, pooled and commingled funds1
297 210 375 477 
Hedge funds/limited partnerships883 1,004 16 19 
Real assets343 341 — — 
Derivative financial instruments(2)— (7)(63)
Other292 261 550 298 
Total pension plan assets2
$3,896 $3,761 $2,627 $2,674 
1 Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual, pooled and commingled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans.
2 Fair value disclosures related to our pension plan assets are included in Note 17. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension plan assets.
Net periodic benefit cost for pension and other postretirement benefit plans
Net periodic benefit cost or income for our pension and other postretirement benefit plans consisted of the following (in millions):
Pension PlansOther Postretirement Benefit Plans
Year Ended December 31,202520242023202520242023
Service cost$103 $105 $94 $3 $3 $4 
Interest cost300 306 322 11 17 27 
Expected return on plan assets1
(420)(469)(475)(4)(7)(14)
Amortization of prior service cost
   (credit)		1 1 1 (2)(3)(3)
Amortization of net actuarial loss
   (gain)2
102 103 96 (1)(4)(5)
Settlement loss (gain)(3)(2)81 
4
— (19)
5
(14)
6
Curtailment loss (gain)11 
3
(1)— — — — 
Special termination benefits27 
3
1 1 — — — 
Other— 1 — — — — 
Net periodic benefit cost (income)$121 $45 $120 $7 $(13)$(5)
1The Company has elected to use the actual fair value of plan assets as the market-related value of plan assets in the determination of the expected return on plan assets.
2Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10% of the greater of the benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants.
3The curtailment loss and special termination benefits were primarily related to the benefit uplifts provided by the Company to active participants pursuant to the group annuity purchase (“buy-in”) for a non-U.S. defined benefit plan. The Company intends to convert the buy-in to a buy-out in the future, at which time the insurer would assume full responsibility for the plan obligations.
4Settlements primarily related to the U.S. qualified pension plan, which was amended in 2023 to provide lump sum payment options to all former employees. The U.S. qualified pension plan made $259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $76 million settlement loss related to the acceleration of existing unrecognized losses.
5In 2024, the Company settled its U.S. other postretirement benefit obligations such that core life insurance benefits will be funded by an insurance company beginning September 11, 2024 for the lifetime of certain retirees. The transaction resulted in no change to underlying benefits or plan administration, only a change to the future financing of the benefits. Pursuant to the settlement, the Company transferred $92 million of plan assets and liabilities to an insurer and recognized a $19 million net settlement gain related to the acceleration of existing unrecognized gains.
6In 2023, the Company settled its U.S. post-65 other postretirement benefit obligations such that retiree reimbursement accounts will be funded by an insurance company beginning January 1, 2025 for the lifetime of certain retirees and their eligible dependents. The transaction resulted in no change to underlying benefits or plan administration, only a change to the future financing of the benefits. Pursuant to the settlement, the Company transferred $187 million of plan assets and liabilities to an insurer and recognized a $14 million net settlement gain related to the acceleration of existing unrecognized gains.
Changes and amounts in AOCI for pension and other postretirement benefit plans
The following table sets forth the pretax changes in AOCI for our pension and other postretirement benefit plans (in millions):
Pension PlansOther Postretirement Benefit Plans
Year Ended December 31,2025202420252024
Balance in AOCI at beginning of year$(1,694)$(1,906)$21 $61 
Recognized prior service cost (credit)11 1 

(2)(3)
Recognized net actuarial loss (gain)99 100 (1)(23)
Prior service credit (cost) occurring during the year(14)2 — — 
Net actuarial gain (loss) occurring during the year68 90 5 (12)
Divestitures— (6)— — 
Other— — 3 — 
Net foreign currency translation adjustments(32)25 1 (2)
Balance in AOCI at end of year$(1,562)$(1,694)$27 $21 
The following table sets forth the pretax amounts in AOCI for our pension and other postretirement benefit plans (in millions):
Pension PlansOther Postretirement Benefit Plans
December 31,2025202420252024
Prior service credit (cost)$(16)$(14)$14 $15 
Net actuarial gain (loss)(1,546)(1,680)13 6 
Balance in AOCI at end of year$(1,562)$(1,694)$27 $21 
Certain weighted average assumptions used in computing the benefit obligations and net periodic benefit cost
Certain weighted-average assumptions used in computing the benefit obligations for our pension and other postretirement benefit plans were as follows:
Pension PlansOther Postretirement Benefit Plans
December 31,2025202420252024
Discount rate5.25%5.50%6.25%6.75%
Interest crediting rate4.00%4.25%N/AN/A
Rate of increase in compensation levels4.75%4.00%N/AN/A
Certain weighted-average assumptions used in computing net periodic benefit cost or income were as follows:
Pension PlansOther Postretirement Benefit Plans
Year Ended December 31,202520242023202520242023
Discount rate5.50%5.00%5.50%6.75%6.25%6.00%
Interest crediting rate4.25%3.75%4.00%N/AN/AN/A
Rate of increase in compensation levels4.00%4.00%3.75%N/AN/AN/A
Expected long-term rate of return on plan assets6.75%7.00%6.75%6.75%4.50%3.75%
Estimated future benefit payments for pension and other postretirement benefit plans
The expected benefit payments for our pension and other postretirement benefit plans for the 10 years succeeding December 31, 2025 are as follows (in millions):
20262027202820292030
2031-2035
Benefit payments for pension plans$447 $449 $459 $452 $479 $2,496 
Benefit payments for other postretirement
   benefit plans		21 18 17 15 14 65 
Total$468 $467 $476 $467 $493 $2,561