v3.25.4
Pension And Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension And Other Postretirement Benefits
Note 4. Pension and Other Postretirement Benefits
The benefit obligations and plan assets associated with the Corporation’s principal benefit plans are measured on December 31.
 Pension BenefitsOther Postretirement Benefits
(millions of dollars, except where stated otherwise)U.S.Non-U.S.
202520242025202420252024
 
Weighted-average assumptions used to determine benefit obligations at December 31      
Discount rate (percent)
5.50 5.70 5.00 4.60 5.50 5.80 
Long-term rate of compensation increase (percent)
4.00 4.00 4.30 4.20 4.00 4.00 
Change in benefit obligation
Benefit obligation at January 112,999 13,143 19,198 21,327 4,791 5,014 
Service cost517 499 324 338 75 81 
Interest cost677 671 842 823 262 250 
Actuarial loss/(gain) (1)
218 (441)(1,231)(658)55 (81)
Benefits paid (2)(3)
(1,104)(874)(1,273)(1,240)(449)(534)
Foreign exchange rate changes— — 1,648 (1,274)20 (40)
Amendments, divestments and other (5)(6)
(795)1 (990)(118)138 101 
Benefit obligation at December 3112,512 12,999 18,518 19,198 4,892 4,791 
Accumulated benefit obligation at December 3110,838 11,227 17,210 17,818 — — 
 
For selection of the discount rate for U.S. plans, several sources of information are considered, including interest rate market indicators and the effective discount rate determined by use of a yield curve based on high-quality bonds applied to the estimated cash outflows for benefit payments. For major non-U.S. plans, the discount rate is determined by using a spot yield curve of high-quality, local-currency-denominated bonds at an average maturity approximating that of the liabilities.
The measurement of the accumulated postretirement benefit obligation assumes a health care cost trend rate of 4.0 percent in 2027 and subsequent years.
 Pension BenefitsOther Postretirement Benefits
 (millions of dollars)U.S.Non-U.S.
202520242025202420252024
Change in plan assets      
Fair value at January 111,244 11,367 17,378 18,431 364 371 
Actual return on plan assets1,189 286 680 862 40 20 
Foreign exchange rate changes— — 1,364 (1,051)— — 
Company contribution250 300 307 288 29 24 
Benefits paid (4)
(878)(709)(940)(931)(49)(51)
Other (5)(6)
(767)— (641)(221)— — 
Fair value at December 3111,038 11,244 18,148 17,378 384 364 
(1) Actuarial loss/(gain) primarily reflects a lower discount rate in the U.S. and generally higher discount rates outside of the U.S.
(2) Benefit payments for funded and unfunded plans.
(3) For 2024, other postretirement benefits paid are net of $10 million of Medicare subsidy receipts.
(4) Benefit payments for funded plans.
(5) The U.S. ExxonMobil Pension Plan purchased a group annuity contract from an insurer in 2025 for $767 million to transfer obligations to pay future benefits. The transaction did not change the amount of pension benefits payable to transferred participants and did not require additional funding from the plan.
(6) Non-U.S. includes benefit obligation and plan asset reductions in 2025 of $1,059 million and $642 million, respectively, resulting from the divestment of Product Solutions affiliates in France.
The funding levels of all qualified pension plans are in compliance with standards set by applicable law or regulation. As shown in the table below, certain smaller U.S. pension plans and a number of non-U.S. pension plans are not funded because local applicable tax rules and regulatory practices do not encourage funding of these plans. All defined benefit pension obligations, regardless of the funding status of the underlying plans, are fully supported by the financial strength of the Corporation or the respective sponsoring affiliate.
 Pension Benefits
(millions of dollars)U.S.Non-U.S.
2025202420252024
Assets in excess of/(less than) benefit obligation 
Balance at December 31    
Funded plans(81)(267)2,879 1,679 
Unfunded plans(1,393)(1,488)(3,249)(3,499)
Total(1,474)(1,755)(370)(1,820)
 
The authoritative guidance for defined benefit pension and other postretirement plans requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheet and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income.
 Pension BenefitsOther Postretirement Benefits
(millions of dollars)U.S.Non-U.S.
202520242025202420252024
Assets in excess of/(less than) benefit obligation      
Balance at December 31 (1)
(1,474)(1,755)(370)(1,820)(4,508)(4,427)
Amounts recorded in the Consolidated Balance Sheet consist of:
Other assets3 2 3,175 2,399 — — 
Current liabilities(199)(213)(208)(207)(276)(283)
Postretirement benefits reserves(1,278)(1,544)(3,337)(4,012)(4,232)(4,144)
Total recorded(1,474)(1,755)(370)(1,820)(4,508)(4,427)
Amounts recorded in accumulated other comprehensive income consist of:
Net actuarial loss/(gain)79 631 (532)557 (1,291)(1,421)
Prior service cost(222)(252)447 420 (345)(405)
Total recorded in accumulated other comprehensive income(143)379 (85)977 (1,636)(1,826)
(1) Fair value of assets less benefit obligation shown on the preceding page.
The long-term expected rate of return on funded assets shown below is established for each benefit plan by developing a forward-looking, long-term return assumption for each asset class, taking into account factors such as the expected real return for the specific asset class and inflation. A single, long-term rate of return is then calculated as the weighted-average of the target asset allocation percentages and the long-term return assumption for each asset class.
 Pension BenefitsOther Postretirement
Benefits
(millions of dollars, except where stated otherwise)U.S.Non-U.S.
202520242023202520242023202520242023
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31
Discount rate (percent)
5.70 5.30 5.60 4.60 4.30 4.90 5.80 5.30 5.60 
Long-term rate of return on funded assets (percent)
6.00 6.80 5.20 4.70 5.50 4.20 5.30 6.00 4.70 
Long-term rate of compensation increase (percent)
4.00 4.50 4.50 4.20 4.50 5.20 4.00 4.50 4.50 
Components of net periodic benefit cost
Service cost517 499 466 324 338 323 75 81 78 
Interest cost677 671 664 842 823 922 262 250 276 
Expected return on plan assets(596)(724)(532)(838)(955)(688)(16)(20)(14)
Amortization of actuarial loss/(gain)73 83 85 37 97 108 (103)(103)(122)
Amortization of prior service cost(31)(31)(29)59 50 52 (62)(63)(42)
Net pension enhancement and curtailment/settlement cost75 27 29 22 16 5 (1)— — 
Net periodic benefit cost715 525 683 446 369 722 155 145 176 
Changes in amounts recorded in accumulated other comprehensive income:
Net actuarial loss/(gain)(406)(3)(39)(1,073)(611)602 32 (81)154 
Amortization of actuarial (loss)/gain(147)(110)(114)(38)(112)(108)103 103 122 
Prior service cost/(credit)— — (17)19 81 153 — (8)(312)
Amortization of prior service (cost)/credit31 31 29 (59)(44)(52)63 63 42 
Foreign exchange rate changes— — — 89 (102)46 (8)9 (2)
Total recorded in other comprehensive income(522)(82)(141)(1,062)(788)641 190 86 4 
Total recorded in net periodic benefit cost and other comprehensive income, before tax193 443 542 (616)(419)1,363 345 231 180 
 
Costs for defined contribution plans were $0.4 billion, $0.4 billion, and $0.4 billion in 2025, 2024, and 2023, respectively.
A summary of the change in accumulated other comprehensive income is shown in the table below:
Total Pension and Other Postretirement Benefits
 (millions of dollars)
202520242023
 
(Charge)/credit to other comprehensive income, before tax   
U.S. pension522 82 141 
Non-U.S. pension1,062 788 (641)
Other postretirement benefits(190)(86)(4)
Total (charge)/credit to other comprehensive income, before tax1,394 784 (504)
(Charge)/credit to income tax (see Note 5)
(376)(208)180 
(Charge)/credit to investment in equity companies29 24 16 
(Charge)/credit to other comprehensive income including noncontrolling interests, after tax1,047 600 (308)
Charge/(credit) to equity of noncontrolling interests(59)(120)54 
(Charge)/credit to other comprehensive income attributable to ExxonMobil988 480 (254)
 
The Corporation’s investment strategy for benefit plan assets reflects a long-term view, a careful assessment of the risks inherent in plan assets and liabilities, and broad diversification to reduce the risk of the portfolio. The benefit plan assets are primarily invested in passive global equity and local currency fixed income index funds to diversify risk while minimizing costs. The equity funds hold ExxonMobil stock only to the extent necessary to replicate the relevant equity index. The fixed income funds are largely invested in investment-grade corporate and government debt securities with interest rate sensitivity designed to approximate the interest rate sensitivity of plan liabilities.
Target asset allocations for benefit plans are reviewed periodically and set based on considerations such as risk, diversification, liquidity, and funding level. The target asset allocations for the major benefit plans range from 5 to 40 percent in equity securities and the remainder in fixed income securities. The equity allocation for the U.S. plan includes a target allocation of 10 percent to limited partnerships that focus on the venture capital, growth and buyout sectors of the private equity market. Certain non-U.S. plans include small allocations to private equity partnerships that primarily focus on early-stage venture capital.
The fair value measurement levels are accounting terms that refer to different methods of valuing assets. The terms do not represent the relative risk or credit quality of an investment.
The 2025 fair value of the benefit plan assets, including the level within the fair value hierarchy, is shown in the tables below:
 U.S. PensionNon-U.S. Pension
(millions of dollars)
Fair Value Measurement at
December 31, 2025, Using:
Fair Value Measurement at
December 31, 2025, Using:
Level 1Level 2 Level 3Net Asset ValueTotalLevel 1 Level 2 Level 3Net Asset ValueTotal
 
Asset category:            
Equity securities            
U.S.— —  — 2,018 2,018 —  —  — 1,659 1,659 
Non-U.S.— —  — 1,216 1,216 54 (1)—  — 993 1,047 
Private equity— —  — 728 728 —  —  — 337 337 
Debt securities   
Corporate— 985 (2)— 4,238 5,223 —  54 (2)— 3,980 4,034 
Government— 696 (2)— 990 1,686 99 (3)169 (2)— 9,033 9,301 
Asset-backed— —  — 1 1 —  18 (2)— 149 167 
Other— — — — — — — — 33 33 
Real Estate— — — — — — — — 151 151 
Cash— —  — 141 141 11  9 (4)— 1,383 1,403 
Other— 23 — — 23 — — — — — 
Total at fair value— 1,704 — 9,332 11,036 164 250 — 17,718 18,132 
Insurance contracts at contract value   2    16 
Total plan assets   11,038    18,148 
(1) For non-U.S. equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market transactions.
(3) For government debt securities that are traded on active exchanges, fair value is based on observable quoted prices.
(4) For cash balances that are subject to withdrawal penalties or other adjustments, the fair value is treated as a level 2 input.

 Other Postretirement
(millions of dollars)Fair Value Measurement at December 31, 2025, Using: 
Level 1Level 2Level 3Net Asset ValueTotal
 
Asset category:     
Equity securities     
U.S.95 (5)— — — 95 
Non-U.S.41 (5)— — — 41 
Debt securities
Corporate— 58 (6)— — 58 
Government— 185 (6)— — 185 
Asset-backed— 3 (6)— — 3 
Cash— 2 — — 2 
Total at fair value136 248 — — 384 
(5) For equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(6) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market transactions.
The 2024 fair value of the benefit plan assets, including the level within the fair value hierarchy, is shown in the tables below: 
 U.S. PensionNon-U.S. Pension
 (millions of dollars)
Fair Value Measurement at
December 31, 2024, Using:
Fair Value Measurement at
December 31, 2024, Using:
Level 1Level 2 Level 3Net Asset ValueTotalLevel 1 Level 2 Level 3Net Asset ValueTotal
 
Asset category:            
Equity securities            
U.S.— —  — 2,263 2,263 —  —  — 2,865 2,865 
Non-U.S.— —  — 1,225 1,225 43 (1)—  — 1,560 1,603 
Private equity— —  — 439 439 —  —  — 291 291 
Debt securities   
Corporate— 971 (2)— 4,498 5,469 —  49 (2)— 3,650 3,699 
Government— 592 (2)— 1,126 1,718 77 (3)141 (2)— 8,222 8,440 
Asset-backed— —  — 1 1 —  12 (2)— 180 192 
Other— — — — — — — — 13 13 
Real Estate— — — — — — — — 107 107 
Cash— —  — 113 113 78  6 (4)— 69 153 
Other— 14 — — 14 — — — — — 
Total at fair value— 1,577  — 9,665 11,242 198  208  — 16,957 17,363 
Insurance contracts at contract value   2     15 
Total plan assets   11,244     17,378 
(1) For non-U.S. equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market transactions.
(3) For government debt securities that are traded on active exchanges, fair value is based on observable quoted prices.
(4) For cash balances that are subject to withdrawal penalties or other adjustments, the fair value is treated as a level 2 input.

 Other Postretirement
(millions of dollars)Fair Value Measurement at December 31, 2024, Using: 
Level 1Level 2Level 3Net Asset ValueTotal
 
Asset category:     
Equity securities     
U.S.92 (5)— — — 92 
Non-U.S.36 (5)— — — 36 
Debt securities
Corporate— 57 (6)— — 57 
Government— 174 (6)— — 174 
Asset-backed— 3 (6)— — 3 
Cash— 2 — — 2 
Total at fair value128 236 — — 364 
(5) For equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(6) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market transactions.
A summary of pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets is shown in the table below:
 Pension Benefits
(millions of dollars)U.S.Non-U.S.
2025202420252024
 
For funded pension plans with an accumulated benefit obligation in excess of plan assets:
   
Accumulated benefit obligation— — 127 1,025 
Fair value of plan assets— — 66 574 
For funded pension plans with a projected benefit obligation in
excess of plan assets:
Projected benefit obligation11,107 11,501 1,137 1,982 
Fair value of plan assets11,025 11,232 840 1,261 
For unfunded pension plans:
Projected benefit obligation1,393 1,488 3,249 3,499 
Accumulated benefit obligation1,184 1,229 3,057 3,224 
 
All other postretirement benefit plans are unfunded or underfunded.

 Pension BenefitsOther Postretirement Benefits
(millions of dollars)U.S.Non-U.S.GrossMedicare Subsidy Receipt
 
Contributions expected in 2026
— 306 — — 
Benefit payments expected in:
20261,024 1,107 350 1 
20271,017 1,121 347 1 
20281,049 1,135 346 1 
20291,053 1,149 346 1 
20301,060 1,149 348 1 
2031 - 2035
5,701 5,759 1,775 3