Annual report [Section 13 and 15(d), not S-K Item 405]

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

v3.25.4
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2025
Pension and other postretirement benefits  
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
The following table summarizes the total accumulated benefit obligation (ABO), the ABO and the fair value of plan assets for defined benefit pension plans with ABO in excess of plan assets and the PBO and fair value of plan assets for defined benefit pension plans with PBO in excess of plan assets:
  Qualified and Non-Qualified Pension Plans
  U.S. Plans U.K. Plans
In millions 2025 2024 2025 2024
Total ABO $ 3,264  $ 3,132  $ 1,431  $ 1,334 
Plans with ABO in excess of plan assets
ABO 444  1,007  —  — 
Fair value of plan assets 6  510  —  — 
Plans with PBO in excess of plan assets
PBO 480  1,042  —  — 
Fair value of plan assets 6  510  —  — 
Pension Plan  
Pension and other postretirement benefits  
Schedule of Net Funded Status The changes in the benefit obligations, the various plan assets, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant pension plans at December 31 were as follows:
  Qualified and Non-Qualified Pension Plans
  U.S. Plans U.K. Plans
In millions 2025 2024 2025 2024
Change in benefit obligation        
Benefit obligation at the beginning of the year $ 3,167  $ 3,381  $ 1,350  $ 1,525 
Service cost 133  142  15  18 
Interest cost 173  167  77  71 
Actuarial loss (gain) 105  (163) 4  (133)
Benefits paid from fund (247) (328) (98) (108)
Benefits paid directly by employer (31) (32) —  — 
Foreign currency translation adjustments —  —  100  (23)
Benefit obligation at end of year $ 3,300  $ 3,167  $ 1,448  $ 1,350 
Change in plan assets        
Fair value of plan assets at beginning of year $ 3,706  $ 3,826  $ 1,468  $ 1,720 
Actual return on plan assets 330  178  19  (128)
Employer contributions —  30  19  9 
Benefits paid from fund (247) (328) (98) (108)
Foreign currency translation adjustments —  —  110  (25)
Fair value of plan assets at end of year $ 3,789  $ 3,706  $ 1,518  $ 1,468 
Funded status (including unfunded plans) at end of year $ 489  $ 539  $ 70  $ 118 
Amounts recognized in consolidated balance sheets        
Pension assets $ 963  $ 1,071  $ 70  $ 118 
Accrued compensation, benefits and retirement costs (31) (29) —  — 
Other liabilities (443) (503) —  — 
Net amount recognized $ 489  $ 539  $ 70  $ 118 
Amounts recognized in accumulated other comprehensive loss        
Net actuarial loss $ 464  $ 429  $ 739  $ 691 
Prior service cost 4  6  6  7 
Net amount recognized $ 468  $ 435  $ 745  $ 698 
Schedule of Net Benefit Costs
The following table presents the net periodic pension cost (income) under our plans for the years ended December 31:
  Qualified and Non-Qualified Pension Plans
  U.S. Plans U.K. Plans
In millions 2025 2024 2023 2025 2024 2023
Service cost $ 133  $ 142  $ 117  $ 15  $ 18  $ 17 
Interest cost 173  167  168  77  71  70 
Expected return on plan assets (268) (290) (277) (91) (102) (105)
Amortization of prior service cost 2  2  2  1  1  1 
Recognized net actuarial loss 9  13  8  27  12  — 
Net periodic pension cost (income) $ 49  $ 34  $ 18  $ 29  $ —  $ (17)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
Other changes in benefit obligations and plan assets recognized in other comprehensive loss (income) for the years ended December 31 were as follows:
In millions 2025 2024 2023
Amortization of prior service cost $ (3) $ (3) $ (3)
Recognized net actuarial loss (36) (25) (8)
Incurred prior service cost —  —  1 
Incurred actuarial loss 119  46  432 
Total recognized in other comprehensive loss $ 80  $ 18  $ 422 
Total recognized in net periodic pension cost and other comprehensive loss $ 158  $ 52  $ 423 
Schedule of Assumptions Used
The table below presents various assumptions used in determining the PBO for each year and reflects weighted-average percentages for the various plans as follows:
  Qualified and Non-Qualified Pension Plans
  U.S. Plans U.K. Plans
  2025 2024 2025 2024
Discount rate 5.60  % 5.69  % 5.58  % 5.62  %
Cash balance crediting rate 4.54  % 4.51  % —  — 
Compensation increase rate 5.37  % 5.32  % 3.50  % 3.75  %
The table below presents various assumptions used in determining the net periodic pension cost and reflects weighted-average percentages for the various plans as follows:
  Qualified and Non-Qualified Pension Plans
  U.S. Plans U.K. Plans
  2025 2024 2023 2025 2024 2023
Discount rate 5.69  % 5.15  % 5.55  % 5.62  % 4.72  % 4.99  %
Expected return on plan assets 7.00  % 7.25  % 7.00  % 5.00  % 5.00  % 5.00  %
Compensation increase rate 5.32  % 5.34  % 5.35  % 3.75  % 3.75  % 3.75  %
Schedule of Expected Benefit Payments The table below presents expected future benefit payments under our pension plans:
  Qualified and Non-Qualified Pension Plans
In millions 2026 2027 2028 2029 2030 2031 - 2035
Expected benefit payments $ 373  $ 377  $ 375  $ 379  $ 380  $ 1,920 
Other Postretirement Benefit Plan  
Pension and other postretirement benefits  
Schedule of Net Funded Status The changes in the benefit obligations, the funded status of the plans and the amounts recognized in our Consolidated Balance Sheets for our significant OPEB plans were as follows:
December 31,
In millions 2025 2024
Change in benefit obligation    
Benefit obligation at the beginning of the year $ 120  $ 150 
Interest cost 6  7 
Plan participants' contributions 5  8 
Actuarial gain (13) (18)
Benefits paid directly by employer (10) (27)
Benefit obligation at end of year $ 108  $ 120 
Funded status at end of year $ (108) $ (120)
Amounts recognized in consolidated balance sheets    
Accrued compensation, benefits and retirement costs $ (14) $ (16)
Other liabilities (94) (104)
Net amount recognized $ (108) $ (120)
Amounts recognized in accumulated other comprehensive loss    
Net actuarial gain $ (68) $ (60)
Prior service credit (3) (3)
Net amount recognized $ (71) $ (63)
Schedule of Net Benefit Costs
The following table presents the net periodic OPEB cost under our plans:
Years ended December 31,
In millions 2025 2024 2023
Interest cost $ 6  $ 7  $ 9 
Recognized net actuarial gain (5) (3) (2)
Net periodic OPEB cost $ 1  $ 4  $ 7 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
Other changes in benefit obligations recognized in other comprehensive loss (income) for the years ended December 31 were as follows:
Years ended December 31,
In millions 2025 2024 2023
Recognized net actuarial gain $ 5  $ 3  $ 2 
Incurred actuarial gain (13) (19) (2)
Total recognized in other comprehensive (income) loss $ (8) $ (16) $ — 
Total recognized in net periodic OPEB cost and other comprehensive (income) loss $ (7) $ (12) $ 7 
Schedule of Assumptions Used
The table below presents assumptions used in determining the OPEB obligation for each year and reflects weighted-average percentages for our other OPEB plans as follows:
2025 2024
Discount rate 5.22  % 5.60  %
The table below presents assumptions used in determining the net periodic OPEB cost and reflects weighted-average percentages for the various plans as follows:
2025 2024 2023
Discount rate 5.60  % 5.19  % 5.59  %
Schedule of Expected Benefit Payments
The table below presents expected benefit payments under our OPEB plans:
In millions 2026 2027 2028 2029 2030 2031 - 2035
Expected benefit payments $ 14  $ 13  $ 13  $ 12  $ 11  $ 41 
UNITED STATES  
Pension and other postretirement benefits  
Schedule of Allocation of Plan Assets
To achieve these objectives, we established the following targets:
Asset Class Plan Target
U.S. equities 10  %
Non-U.S. equities 2  %
Global equities 13  %
Total equities 25  %
Real assets 7  %
Private equity/venture capital 5  %
Opportunistic credit 3  %
Fixed income 60  %
Total 100  %
Fair Value, Assets Measured on Recurring Basis
The fair values of U.S. pension plan assets by asset category were as follows:
  Fair Value Measurements at December 31, 2025
In millions Quoted prices in active
markets for identical assets
(Level 1)		 Significant other
observable inputs
(Level 2)		 Significant
unobservable inputs
(Level 3)		 Total
Equities        
U.S. $ 68  $ —  $ —  $ 68 
Non-U.S. 37  —  —  37 
Fixed income
Government debt —  57  —  57 
Corporate debt
U.S. —  406  —  406 
Non-U.S. —  23  —  23 
Asset/mortgaged backed securities —  3  —  3 
Net cash equivalents (1)
258  —  —  258 
Private markets and real assets (2)
—  —  462  462 
Net plan assets subject to leveling $ 363  $ 489  $ 462  $ 1,314 
Pending trade/purchases/sales       (1)
Accruals (3)
      7 
Investments measured at net asset value 2,469 
Net plan assets       $ 3,789 
  Fair Value Measurements at December 31, 2024
In millions Quoted prices in active
markets for identical assets
(Level 1)		 Significant other
observable inputs
(Level 2)		 Significant
unobservable inputs
(Level 3)		 Total
Equities        
U.S. $ 168  $ —  $ —  $ 168 
Non-U.S. 31  —  —  31 
Fixed income
Government debt —  105  —  105 
Corporate debt
U.S. —  600  —  600 
Non-U.S. —  36  —  36 
Asset/mortgaged backed securities —  13  —  13 
Net cash equivalents (1)
388  —  —  388 
Private markets and real assets (2)
—  —  500  500 
Net plan assets subject to leveling $ 587  $ 754  $ 500  $ 1,841 
Pending trade/purchases/sales       (2)
Accruals (3)
      12 
Investments measured at net asset value 1,855 
Net plan assets       $ 3,706 
(1) Cash equivalents included commercial paper, short-term government/agency, mortgage and credit instruments.
(2) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure.
(3) Accruals include interest or dividends that were not settled at December 31.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
The reconciliation of Level 3 assets was as follows:
  Fair Value Measurements
Using Significant Unobservable Inputs (Level 3)
In millions Private Markets Real Assets Total
Balance at December 31, 2023 $ 537  $ 67  $ 604 
Actual return on plan assets  
Unrealized losses on assets still held at the reporting date (3) (6) (9)
Purchases, sales and settlements, net (93) (2) (95)
Balance at December 31, 2024 441  59  500 
Actual return on plan assets      
Unrealized gains on assets still held at the reporting date 24  4  28 
Purchases, sales and settlements, net (63) (3) (66)
Balance at December 31, 2025 $ 402  $ 60  $ 462 
UNITED KINGDOM  
Pension and other postretirement benefits  
Schedule of Allocation of Plan Assets To achieve these objectives, we established the following targets:
Asset Class Plan Target
Equities 10  %
Private equity 7  %
Fixed income/insurance annuity 81  %
Cash 2  %
Total 100  %
Fair Value, Assets Measured on Recurring Basis
The fair values of U.K. pension plan assets by asset category were as follows:
  Fair Value Measurements at December 31, 2025
In millions Quoted prices in active
markets for identical assets
(Level 1)		 Significant other
observable inputs
(Level 2)		 Significant
unobservable inputs
(Level 3)		 Total
Fixed income  
Government debt $ —  $ 960  $ —  $ 960 
Corporate debt
U.S. —  43  —  43 
Non-U.S. —  82  —  82 
Net cash equivalents (1)
26  63  —  89 
Derivative instruments (2)
—  (2) —  (2)
Repurchase agreements —  (666) —  (666)
Insurance annuity —  —  698  698 
Private markets and real assets (3)
—  —  99  99 
Net plan assets subject to leveling $ 26  $ 480  $ 797  $ 1,303 
Accruals (4)
      3 
Investments measured at net asset value 212 
Net plan assets       $ 1,518 
  Fair Value Measurements at December 31, 2024
In millions Quoted prices in active
markets for identical assets
(Level 1)		 Significant other
observable inputs
(Level 2)		 Significant
unobservable inputs
(Level 3)		 Total
Fixed income
Government debt $ —  $ 204  $ —  $ 204 
Corporate debt
U.S. —  32  —  32 
Non-U.S. —  93  —  93 
Net cash equivalents (1)
11  14  —  25 
Insurance annuity —  —  383  383 
Private markets and real assets (3)
—  —  102  102 
Net plan assets subject to leveling $ 11  $ 343  $ 485  $ 839 
Pending trade/purchases/sales       1 
Accruals (4)
      2 
Investments measured at net asset value 626 
Net plan assets       $ 1,468 
(1) Cash equivalents include commercial paper, short-term government/agency, mortgage and credit instruments.
(2) Derivative instruments include central counterparty swaps.
(3) The instruments in private markets and real assets, for which quoted market prices are not available, are valued at their estimated fair value as determined by applicable investment managers or by audited financial statements of the funds. Private markets include equity, venture capital and private credit instruments and funds. Real assets include real estate and infrastructure.
(4) Accruals include interest or dividends that were not settled at December 31.
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets
The reconciliation of Level 3 assets was as follows:
  Fair Value Measurements
Using Significant Unobservable Inputs (Level 3)
In millions Insurance Annuity Real Assets Private Markets Total
Balance at December 31, 2023 $ 436  $ 7  $ 96  $ 539 
Actual return on plan assets
Unrealized (losses) gains on assets still held at the reporting date (53) —  1  (52)
Purchases, sales and settlements, net —  (1) (1) (2)
Balance at December 31, 2024 383  6  96  485 
Actual return on plan assets        
Unrealized losses on assets still held at the reporting date (5) (1) —  (6)
Purchases, sales and settlements, net 320  —  (2) 318 
Balance at December 31, 2025 $ 698  $ 5  $ 94  $ 797