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Post-retirement benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Disclosure of information about defined benefit plans [abstract]  
Summary of fair value of plan assets The proportions of the total fair value of assets in the pension plans for each asset class at 31 December were as follows.
2025
2024
Equities
16.2%
17.6%
–Quoted(a)
10.0%
11.1%
–Private(b)
6.2%
6.5%
Bonds(c)
48.6%
47.7%
–Government fixed income
20.7%
21.0%
–Government inflation-linked
1.9%
1.6%
–Corporate and other publicly quoted
18.7%
17.5%
–Private
7.3%
7.6%
Property(d)
6.8%
6.9%
–Quoted property funds
2.0%
2.2%
–Unquoted property funds
4.8%
4.7%
Qualifying insurance policies(e)
24.0%
24.3%
Cash and other(f)(g)
4.4%
3.5%
Total
100.0%
100.0%
(a)The holdings of quoted equities are invested in either pooled funds or segregated accounts held in the name of the relevant pension funds. These equity portfolios are well diversified in
terms of the geographic distribution and market sectors.
(b)Investments in private equity, private debt and property are less liquid than the other investment classes listed above and therefore the Group’s investment in those asset classes is
restricted to a level that does not endanger the liquidity of the pension plans.
(c)The holdings of government bonds are generally invested in the debt of the country in which a pension plan is situated. Corporate and other quoted bonds are usually of investment
grade. Private debt is mainly held in the North American and UK pension funds and is invested in North American and European companies.
(d)The property funds held by pension plans are invested in a diversified range of properties.
(e)Qualifying insurance policies are held with insurance companies that are regulated by the relevant local authorities. The value of those policies is calculated by the local actuaries using
assumptions consistent with those adopted for valuing the insured obligations.
(f)The holdings of cash and other are predominantly cash and short-term money market instruments.
(g)The Group makes limited use of futures, repurchase agreements and other instruments to manage the interest rate risk in some of its plans. Fund managers may also use derivatives to
hedge currency movements within their portfolios and, in the case of bond managers, to take positions that could be taken using direct holdings of bonds but more efficiently. Exposure
to these instruments is closely monitored and maintained at a level that does not endanger the liquidity of any pension plan.
Summary of maturity of defined benefit obligations An approximate analysis of the maturity of the obligations is given in the table below.
Pension
benefits
Other
benefits
2025
Total
2024
Total
Proportion relating to current employees
18%
15%
18%
18%
Proportion relating to former employees not yet retired
9%
–
8%
9%
Proportion relating to retirees
73%
85%
74%
73%
Total
100%
100%
100%
100%
Average duration of obligations (years)
11.1
11.2
11.1
11.5
Summary of total expense recognised in the income statement Total expense recognised in the income statement
Pension
benefits
US$m
Other
benefits
US$m
2025
Total
US$m
2024
Total
US$m
2023
Total
US$m
Current employer service cost for defined benefit plans
(77)
(3)
(80)
(83)
(79)
Past service (cost)/credit
(19)
–
(19)
(12)
87
Curtailment gains
3
1
4
—
—
Net interest on net defined benefit liability
4
(30)
(26)
(32)
(21)
Non-investment expenses paid from the plans
(21)
–
(21)
(20)
(20)
Total defined benefit expense
(110)
(32)
(142)
(147)
(33)
Current employer service cost for defined contribution and industry-wide plans
(481)
(3)
(484)
(458)
(416)
Total expense recognised in the income statement
(591)
(35)
(626)
(605)
(449)
Summary of total amount recognised in other comprehensive income before tax Total amount recognised in other comprehensive income before tax
2025
US$m
2024
US$m
2023
US$m
Actuarial gains/(losses)
155
201
(407)
Impact of buy-in
–
–
(216)
Return on assets, net of interest on assets
18
(130)
222
(Losses)/gains on application of asset ceiling
(8)
12
(60)
Remeasurement gains/(losses) on pension and post-retirement healthcare plans
165
83
(461)
Summary of amount recognised in balance sheet The following amounts were measured in accordance with IAS 19 at 31 December.
2025
2024
Pension
benefits
US$m
Other
benefits
US$m
Total
US$m
Total
US$m
Total fair value of plan assets
10,572
–
10,572
10,155
Present value of obligations – funded
(10,143)
–
(10,143)
(9,840)
Present value of obligations – unfunded
(342)
(572)
(914)
(923)
Present value of obligations – total
(10,485)
(572)
(11,057)
(10,763)
Effect of asset ceiling
(66)
–
(66)
(50)
Net surplus/(deficit) to be shown in the balance sheet
21
(572)
(551)
(658)
Comprising:
–Deficits
(484)
(572)
(1,056)
(1,063)
–Surpluses
505
–
505
405
Net surplus/(deficit) on pension plans
21
–
21
(82)
Unfunded post-retirement healthcare obligation
–
(572)
(572)
(576)
Summary of funding policy and contributions to plans The Group reviews the funding position of its pension plans on a regular basis and considers whether to provide funding above the minimum
level required in each country. In Canada and the US, the minimum level is prescribed by legislation. In the UK and Switzerland, the
minimum level is negotiated with the local trustee in accordance with the funding guidance issued by the local regulators. In deciding whether
to provide funding above the minimum level, we consider other possible uses of cash elsewhere, the local sponsoring entity’s tax situation
and any strategic advantage we might obtain. The Group does not generally pre-fund post-retirement healthcare arrangements.
2025
2024
2023
Pension
benefits
US$m
Other
benefits
US$m
Total
US$m
Total
US$m
Total
US$m
Contributions to defined benefit plans
65
33
98
107
237
Contributions to defined contribution plans
473
3
476
451
410
Total
538
36
574
558
647
Summary of movement in net defined benefit liability A summary of the movement in the net defined benefit liability is shown in the first table below. The subsequent tables provide a more
detailed analysis of the movements in the present value of the obligations and the fair value of assets.
2025
2024
Pension
benefits
US$m
Other
benefits
US$m
Total
US$m
Total
US$m
Change in the net defined benefit liability
Net defined benefit liability at the start of the year
(82)
(576)
(658)
(723)
Amounts recognised in income statement
(110)
(32)
(142)
(147)
Amounts recognised in other comprehensive income
144
21
165
83
Employer contributions
65
33
98
107
Assets transferred to defined contribution section
(8)
–
(8)
(7)
Currency exchange rate gains/(losses)
12
(18)
(6)
29
Net defined benefit surplus/liability at the end of the year
21
(572)
(551)
(658)
2025
2024
Pension
benefits
US$m
Other
benefits
US$m
Total
US$m
Total
US$m
Change in present value of obligation
Present value of obligation at the start of the year
(10,187)
(576)
(10,763)
(11,795)
Current employer service costs
(77)
(3)
(80)
(83)
Past service (cost)/credit
(19)
–
(19)
(12)
Curtailments
3
1
4
—
Interest on obligation
(471)
(30)
(501)
(497)
Contributions by plan participants
(17)
–
(17)
(18)
Benefits paid
750
33
783
752
Experience (losses)/gains
(21)
17
(4)
2
Changes in financial assumptions gains/(losses)
149
(1)
148
256
Changes in demographic assumptions gains
6
5
11
(57)
Currency exchange rate losses
(601)
(18)
(619)
689
Present value of obligation at the end of the year
(10,485)
(572)
(11,057)
(10,763)
2025
2024
Pension
benefits
US$m
Other
benefits
US$m
Total
US$m
Total
US$m
Change in plan assets
Fair value of plan assets at the start of the year
10,155
–
10,155
11,138
Interest on assets
476
–
476
465
Contributions by plan participants
17
–
17
18
Contributions by employer
65
33
98
107
Benefits paid
(750)
(33)
(783)
(752)
Non-investment expenses
(21)
–
(21)
(20)
Return on plan assets, net of interest on assets
18
–
18
(130)
Assets transferred to defined contribution section
(8)
–
(8)
(7)
Currency exchange rate gains
620
–
620
(664)
Fair value of plan assets at the end of the year
10,572
–
10,572
10,155
Summary of main assumptions rate for valuations of plans and sensitivity analysis
Key estimate
Estimation of obligations for post-employment costs
The value of the Group’s obligations for post-employment benefits is dependent on the amount of benefits that are expected to be paid out,
discounted to the balance sheet date. The most significant assumptions used in accounting for pension plans are:
•The discount rate used to determine the net present value of the obligations, the interest cost on the obligations and the interest income
on plan assets. We use the yield from high-quality corporate bonds with maturities and terms that match those of the post-employment
obligations as closely as possible. Where there is no developed corporate bond market in a currency, the rate on government bonds is
used.
•The long-term inflation rate used to project increases in future benefit payments for those plans that have benefits linked to inflation. The
assumption regarding future inflation is based on market yields on inflation-linked instruments, where possible, combined with consensus
views.
•The mortality rates used to project the period over which benefits will be paid, which is then discounted to arrive at the net present value
of the obligations. The Group reviews the actual mortality rates of retirees in its major pension plans on a regular basis and uses these
rates to set its current mortality assumptions. It also uses its judgement with respect to allowances for future improvements in longevity
having regard to standard improvement scales in each relevant country and after taking external actuarial advice.
The weighted-average assumptions used for the valuation at year-end are summarised below:
At 31 December 2025
At 31 December 2024
Discount rate
Long-term
inflation(a)
Rate of
increase in
pensions
Discount rate
Long-term
inflation(a)
Rate of increase
in pensions
Canada
4.8%
2.0%
0.3%
4.6%
2.0%
0.2%
UK
5.4%
2.8%
2.3%
5.4%
3.1%
2.7%
US
5.3%
2.3%
–%
5.5%
2.3%
–%
Switzerland
1.2%
1.0%
2.5%
0.9%
1.0%
2.2%
(a)The long-term inflation assumption shown for the UK is for the Retail Price Index. The assumption for the Consumer Price Index at 31 December 2025 was 2.4% (2024: 2.7%).
2025
2024
Approximate
(increase)/
decrease in obligations
Approximate
(increase)/
decrease in obligations
Assumption
Change in assumption
Pensions
US$m
Other
US$m
Pensions
US$m
Other
US$m
Discount rate
Increase of 0.5 percentage points
409
30
419
31
Decrease of 0.5 percentage points
(442)
(31)
(487)
(33)
Long-term inflation
Increase of 0.5 percentage points
(155)
(8)
(167)
(9)
Decrease of 0.5 percentage points
149
7
160
8
Demographic – allowance for future
improvements in longevity
Participants assumed to have the mortality rates of
individuals who are one year older
228
6
221
8
Participants assumed to have the mortality rates of
individuals who are one year younger
(228)
(6)
(232)
(8)