Benefit Plans

12 Months Ended

Dec. 31, 2025

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

Our subsidiaries sponsor noncontributory defined benefit pension plans covering certain employees. Employees hired on or after a specified date are instead eligible to participate in a defined contribution plan with enhanced benefits. We also provide postretirement health care and other benefits to certain retired employees.

We measure the plan assets and benefit obligations of our pension and postretirement plans at December 31 of each year.

▪Obligations and Funded Status: Benefit obligations, plan assets and funded status for our pension and postretirement plans were as follows at December 31:

	Pension				Postretirement
(in millions)	2025		2024		2025		2024
Change in benefit obligation:
Benefit obligation at beginning of year (1)	$	6,082	$	6,428	$	1,078	$	1,246
Service cost	37		41		11		15
Interest cost	318		321		56		62
Benefits paid	(457)		(457)		(90)		(91)
Actuarial (gains) losses	216		(251)		21		(153)
Plan amendments	4		—		—		(1)
Benefit obligation at end of year (1)	6,200		6,082		1,076		1,078
Change in plan assets:
Fair value of plan assets at beginning of year	6,545		6,775		84		102
Actual return on plan assets	646		209		9		12
Employer contributions	16		18		—		—
Benefits paid	(457)		(457)		(23)		(30)
Fair value of plan assets at end of year	6,750		6,545		70		84
Funded status at December 31	$	550	$	463	$	(1,006)	$	(994)
Amounts recognized on our consolidated balance sheets:
Other assets	$	727	$	624	$	—	$	—
Other accrued liabilities	(55)		(25)		(67)		(59)
Accrued pension costs	(122)		(136)		—		—
Accrued postretirement health care costs	—		—		(939)		(935)
	$	550	$	463	$	(1,006)	$	(994)

(1) We measure our pension plans using the projected benefit obligation and our postretirement plans using the accumulated postretirement benefit obligation.

Actuarial losses for our pension and postretirement plans for the year ended December 31, 2025 were due primarily to a lower discount rate. Actuarial gains for our pension plans for the year ended December 31, 2024 were due primarily to a higher discount rate. Actuarial gains for our postretirement plans for the year ended December 31, 2024 were due primarily to lower assumed health care plan participation rates and a higher discount rate.

The accumulated benefit obligation, which represents benefits earned to date, for all of our pension plans in aggregate was $6.1 billion and $5.9 billion at December 31, 2025 and 2024, respectively. For pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2025 and 2024, our accumulated benefit obligation was $159 million and $140 million, respectively. For pension plans with projected benefit obligations in excess of plan assets at December 31, 2025 and 2024, our projected benefit obligation was $177 million and $161 million, respectively. Additionally, at December 31, 2025 and 2024, there were no plan assets for these plans.

For all postretirement plans, our accumulated postretirement benefit obligations were in excess of plan assets at December 31, 2025 and 2024.

We used the following assumptions to determine our benefit obligations at December 31:

	Pension				Postretirement
	2025		2024		2025		2024
Discount rate	5.4	%	5.7	%	5.4	%	5.7	%
Rate of compensation increase - long-term	4.0		4.0		—		—
Health care cost trend rate assumed for next year	—		—		6.1		6.3
Ultimate trend rate	—		—		5.0		5.0
Year that the rate reaches the ultimate trend rate	—		—		2031		2031

We based the discount rates for our plans on a yield curve developed from a model portfolio of high-quality corporate bonds with durations that match the expected future cash flows of the benefit obligations.

▪Components of Net Periodic Benefit Cost (Income): Net periodic benefit cost (income) consisted of the following for the years ended December 31:

	Pension						Postretirement
(in millions)	2025		2024		2023		2025		2024		2023
Service cost	$	37	$	41	$	39	$	11	$	15	$	15
Interest cost	318		321		333		56		62		65
Expected return on plan assets	(430)		(465)		(485)		(5)		(6)		(8)
Amortization:
Net loss (gain)	50		28		4		(12)		(6)		(2)
Prior service cost (credit)	5		5		6		(41)		(41)		(40)
Net periodic benefit cost (income)	$	(20)	$	(70)	$	(103)	$	9	$	24	$	30

We used the following assumptions to determine our net periodic benefit cost (income) for the years ended December 31:

	Pension						Postretirement
	2025		2024		2023		2025		2024		2023
Discount rates:
Service cost	5.9	%	5.4	%	5.7	%	5.9	%	5.3	%	5.7	%
Interest cost	5.4		5.2		5.5		5.4		5.2		5.5
Expected rate of return on plan assets	6.1		6.1		6.1		7.4		7.4		7.4
Rate of compensation increase - long-term	4.0		4.0		4.0		—		—		—
Health care cost trend rate	—		—		—		6.3		6.5		6.5

▪Defined Contribution Plan Expense: We sponsor tax-qualified defined contribution plans covering certain salaried and hourly (non-union and union) employees. Contributions and costs are determined generally as a percentage of earnings, as defined by our plans. Amounts charged to expense for these defined contribution plans totaled $110 million, $112 million and $109 million in 2025, 2024 and 2023, respectively.

▪Pension and Postretirement Plan Assets: We managed our pension plan assets using a liability-driven investment framework that aligns plan assets with liabilities. This strategy is designed to balance pension liability hedging and asset growth in order to maintain our plan’s funded status and cover incremental service accruals and interest cost. Liability hedging is achieved through investing in rate-sensitive fixed income securities, while growth assets are comprised of publicly traded equity securities. The current equity/fixed income target allocation is 10%/90%.

Our investment strategy for our postretirement plan assets is intended to maximize our total asset return based on the expectation that equity securities will outperform debt securities over the long term and reflects the maturity structure of our benefit obligation. The current equity/fixed income target allocation is 55%/45%.

The actual composition of our plan assets at December 31, 2025 was broadly characterized with the following allocation:

	Pension		Postretirement
Equity securities	11	%	54	%
Corporate bonds	71	%	31	%
U.S. Treasury and foreign government securities	10	%	5	%
All other investments	8	%	10	%

We implement our investment strategy for our plan assets by investing in long-duration fixed income securities that primarily include U.S. corporate bonds of companies from diversified industries and U.S. Treasury securities that mirror our pension obligation benchmark, as well as U.S. and international equity index strategies that are intended to mirror broad market indices, including, the Standard & Poor’s 500 Index and Morgan Stanley Capital International (“MSCI”) Europe, Australasia, and the Far East (“EAFE”) Index. Our plans also invest in actively managed international equity securities of mid- and small-cap companies located in developed and emerging markets.

Our risk management practices for our plans include (i) ongoing monitoring of asset allocation, investment performance and investment managers’ compliance with their investment guidelines, (ii) periodic rebalancing between equity and debt asset classes and (iii) annual actuarial re-measurement of plan liabilities.

Our expected rate of return on our plan assets is determined by our plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. The forward-looking estimates are consistent with the long-term historical averages exhibited by returns on equity and fixed income securities. For determining our pension and postretirement net periodic benefit cost (income), our 2026 expected rate of return assumptions are 6.1% and 7.4%, respectively.

The fair values of our pension plan assets by asset category were as follows at December 31:

	2025						2024
(in millions)	Level 1		Level 2		Total		Level 1		Level 2		Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—	$	634	$	634	$	—	$	508	$	508
U.S. municipal bonds	—		63		63		—		69		69
Foreign government and agencies	—		30		30		—		54		54
Corporate debt instruments:
Above investment grade	—		4,151		4,151		—		3,572		3,572
Below investment grade and no rating	—		698		698		—		582		582
Common stock:
International equities	249		—		249		398		—		398
U.S. equities	205		—		205		361		—		361
Asset backed securities	—		203		203		—		185		185
Other, net	(6)		98		92		(15)		99		84
	$	448	$	5,877	$	6,325	$	744	$	5,069	$	5,813
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds
U.S. large cap					$	259					$	445
U.S. small cap					17						100
International developed markets					27						53
Total investments measured at NAV					$	303					$	598
Other					122						134
Fair value of plan assets, net					$	6,750					$	6,545

Level 3 holdings and transactions were immaterial relative to total plan assets at December 31, 2025 and 2024.

The fair values of our postretirement plan assets were as follows at December 31:

	2025						2024
(in millions)	Level 1		Level 2		Total		Level 1		Level 2		Total
U.S. and foreign government securities or their agencies:
U.S. government and agencies	$	—	$	2	$	2	$	—	$	1	$	1
Foreign government and agencies	—		2		2		—		2		2
Corporate debt instruments:
Above investment grade	—		20		20		—		24		24
Below investment grade and no rating	—		2		2		—		2		2
Other, net	—		7		7		—		8		8
	$	—	$	33	$	33	$	—	$	37	$	37
Investments measured at NAV as a practical expedient for fair value:
Collective investment funds:
U.S. large cap					$	25					$	35
International developed markets					13						12
Total investments measured at NAV					$	38					$	47
Other					(1)						—
Fair value of plan assets, net					$	70					$	84

There were no Level 3 postretirement plan holdings or transactions during 2025 and 2024.

For a description of the fair value hierarchy and the three levels of inputs used to measure fair value, see Note 2. Summary of Significant Accounting Policies.

Following is a description of the valuation methodologies used for investments measured at fair value.

▪U.S. and Foreign Government Securities: U.S. and foreign government securities consist of investments in Treasury Nominal Bonds and Inflation Protected Securities, agency bonds and municipal securities. Government securities are valued at a price that is based on a compilation of primarily observable market information, such as broker quotes. Matrix pricing, yield curves and indices are used when broker quotes are not available.

▪Corporate Debt Instruments: Corporate debt instruments are valued at a price that is based on a compilation of primarily observable market information, such as broker quotes. Matrix pricing, yield curves and indices are used when broker quotes are not available.

▪Common Stock: Common stocks are valued based on the price of the security as listed on an open active exchange on last trade date.

▪Asset Backed Securities: Asset backed securities are fixed income securities such as mortgage backed securities, syndicated bank loans and auto loans that are collateralized by pools of underlying assets. They are valued at a price that is based on a compilation of primarily observable market information or a broker quote in a non-active over-the-counter market.

▪Collective Investment Funds: Collective investment funds consist of funds that are intended to mirror indices such as Standard & Poor’s 500 Index and MSCI EAFE Index. They are valued on the basis of the relative interest of each participating investor in the fair value of the underlying assets of each of the respective collective investment funds, which are valued based on the net asset value (“NAV”), and are provided by the investment account manager as a practical expedient to estimate fair value. These investments are not classified by level but are disclosed to permit reconciliation to the fair value of plan assets.

Cash Flows: We make contributions to our pension plans to the extent that the contributions are tax deductible and pay benefits that relate to plans for salaried employees that cannot be funded under IRS regulations. Currently, we anticipate making employer contributions in 2026 to our pension and postretirement plans of up to approximately $60 million and $100 million, respectively. However, the foregoing estimates of 2026 contributions are subject to change as a result of changes in tax and other benefit laws, changes in interest rates, as well as asset performance significantly above or below the assumed long-term rate of return for each respective plan.

Estimated future benefit payments at December 31, 2025 were as follows:

(in millions)	Pension		Postretirement
2026	$	528	$	82
2027	482		81
2028	482		81
2029	481		82
2030	481		82
2031-2035	2,330		416

Comprehensive Earnings/Losses

We recorded the following amounts in accumulated other comprehensive losses at December 31, 2025:

(in millions)	Pension		Post- retirement		Post- employment		Total
Net (loss) gain	$	(2,164)	$	142	$	(54)	$	(2,076)
Prior service (cost) credit	(12)		175		(5)		158
Deferred income taxes	566		(78)		15		503
Amounts recorded in accumulated other comprehensive losses	$	(1,610)	$	239	$	(44)	$	(1,415)

We recorded the following amounts in accumulated other comprehensive losses at December 31, 2024:

(in millions)	Pension		Post- retirement		Post- employment		Total
Net (loss) gain	$	(2,213)	$	172	$	(45)	$	(2,086)
Prior service (cost) credit	(13)		216		(5)		198
Deferred income taxes	578		(95)		13		496
Amounts recorded in accumulated other comprehensive losses	$	(1,648)	$	293	$	(37)	$	(1,392)

The movements in other comprehensive earnings (losses) for the year ended December 31, 2025 were as follows:

(in millions)	Pension		Post- retirement		Post- employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost (income):
Amortization:
Net loss (gain)	$	50	$	(12)	$	7	$	45
Prior service cost (credit)	5		(41)		—		(36)
Deferred income taxes	(13)		13		(2)		(2)
	$	42	$	(40)	$	5	$	7
Other movements during the year:
Net (loss) gain	$	(1)	$	(18)	$	(16)	$	(35)
Prior service (cost) credit	(4)		—		—		(4)
Deferred income taxes	1		4		4		9
	$	(4)	$	(14)	$	(12)	$	(30)
Total movements in other comprehensive earnings (losses)	$	38	$	(54)	$	(7)	$	(23)

The movements in other comprehensive earnings (losses) for the year ended December 31, 2024 were as follows:

(in millions)	Pension		Post-retirement		Post-employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost (income):
Amortization:
Net loss (gain)	$	28	$	(6)	$	7	$	29
Prior service cost (credit)	5		(41)		—		(36)
Deferred income taxes	(8)		12		(2)		2
	$	25	$	(35)	$	5	$	(5)
Other movements during the year:
Net (loss) gain	$	(5)	$	159	$	(13)	$	141
Prior service (cost) credit	—		1		—		1
Deferred income taxes	1		(40)		3		(36)
	$	(4)	$	120	$	(10)	$	106
Total movements in other comprehensive earnings (losses)	$	21	$	85	$	(5)	$	101

The movements in other comprehensive earnings (losses) for the year ended December 31, 2023 were as follows:

(in millions)	Pension		Post- retirement		Post- employment		Total
Amounts reclassified to net earnings as components of net periodic benefit cost (income):
Amortization:
Net loss (gain)	$	4	$	(2)	$	6	$	8
Prior service cost (credit)	6		(40)		—		(34)
Deferred income taxes	(2)		11		(1)		8
	$	8	$	(31)	$	5	$	(18)
Other movements during the year:
Net (loss) gain	$	(60)	$	20	$	(11)	$	(51)
Prior service (cost) credit	—		3		—		3
Deferred income taxes	16		(10)		3		9
	$	(44)	$	13	$	(8)	$	(39)
Total movements in other comprehensive earnings (losses)	$	(36)	$	(18)	$	(3)	$	(57)