v3.25.4
Retirement Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
We use a measurement date of December 31 to determine the change in benefit obligation, change in plan assets, funded status, and amounts recognized in the consolidated balance sheets at December 31 for our defined benefit pension and retiree health benefit plans, which were as follows:
 Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
2025202420252024
Change in benefit obligation:
Benefit obligation at beginning of year$13,415 $14,258 $1,223 $1,310 
Service cost324 339 33 35 
Interest cost697 662 64 62 
Actuarial (gain) loss232 (1,084)33 (97)
Benefits paid(661)(634)(88)(82)
Foreign currency exchange rate changes and other adjustments255 (125)9 (6)
Benefit obligation at end of year14,262 13,415 1,274 1,223 
Change in plan assets:
Fair value of plan assets at beginning of year13,658 13,709 2,566 2,580 
Actual return on plan assets1,456 583 283 59 
Employer contribution119 115 14 9 
Benefits paid(661)(634)(88)(82)
Foreign currency exchange rate changes and other adjustments248 (115)— — 
Fair value of plan assets at end of year14,820 13,658 2,775 2,566 
Funded status558 243 1,501 1,343 
Unrecognized net actuarial loss2,499 2,663 87 149 
Unrecognized prior service (benefit) cost2 4 (4)(4)
Net amount recognized$3,059 $2,910 $1,584 $1,489 
Amounts recognized in the consolidated balance sheets consisted of:
Other noncurrent assets$1,857 $1,482 $1,656 $1,485 
Other current liabilities(73)(71)(9)(8)
Other noncurrent liabilities(1,226)(1,167)(146)(133)
Accumulated other comprehensive loss
2,501 2,667 83 146 
Net amount recognized$3,059 $2,910 $1,584 $1,489 
The unrecognized net actuarial loss has not yet been recognized in net periodic pension costs and was included in accumulated other comprehensive loss at December 31, 2025 and 2024. Unrecognized net actuarial loss for the U.S. and Puerto Rico defined benefit pension and retiree health benefit plans is amortized over the average remaining service period of active employees in the plan. The amortization of actuarial (gains) losses for U.S. and Puerto Rico defined benefit pension plans are determined by using a 10% corridor of the greater of the market related value of assets or the projected benefit obligations.
The $898 million increase in benefit obligation in 2025 was primarily driven by service and interest costs in excess of benefit payments. The $930 million decrease in benefit obligation in 2024 was primarily driven by increases in the discount rates primarily reflected in actuarial (gain) loss.
The following represents our weighted-average assumptions:
 Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
202520242023202520242023
Weighted-average assumptions used to determine net periodic benefit costs:
Discount rate
5.5 %4.8 %5.1 %5.7 %5.0 %5.2 %
Rate of compensation increase
4.0 4.3 4.3 
Expected return on plan assets
7.9 8.1 8.1 7.0 7.3 7.3 
Weighted-average assumptions used to determine benefit obligation as of December 31:
Discount rate
5.5 5.5 4.8 5.5 5.7 5.0 
Rate of compensation increase
4.0 4.0 4.3 
We annually evaluate the expected return on plan assets in our defined benefit pension and retiree health benefit plans. In evaluating the expected return on plan assets, we consider many factors, with a primary analysis of current and projected market conditions; asset returns and asset allocations; and the views of leading financial advisers and economists. In U.S. and Puerto Rico, the expected return on plan assets uses a market-related value of assets. For U.S. dollar denominated investment grade debt securities and derivatives, the market-related value of assets is the actual fair value. For all other asset categories, the market-related value of assets uses a method that recognizes investment gains and losses arising from the difference between expected and actual returns on plan assets over a five-year period.
We may also review our historical assumptions compared with actual results, as well as the assumptions and trend rates utilized by similar plans, where applicable.
Expected benefit payments, which reflect expected future service, are as follows:
202620272028202920302031 - 2035
Defined benefit pension plans$720 $746 $770 $803 $838 $4,711 
Retiree health benefit plans95 96 96 97 97 488 
Amounts relating to defined benefit pension plans with projected benefit obligations in excess of plan assets were as follows at December 31:
 20252024
Projected benefit obligation$2,360 $2,297 
Fair value of plan assets1,061 1,058 
Amounts relating to defined benefit pension plans and retiree health benefit plans with accumulated benefit obligations in excess of plan assets were as follows at December 31:
Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
 2025202420252024
Accumulated benefit obligation$1,810 $1,656 $155 $142 
Fair value of plan assets702 595 — — 
The total accumulated benefit obligation for our defined benefit pension plans was $13.0 billion and $12.2 billion at December 31, 2025 and 2024, respectively.
Net periodic (benefit) cost included the following components:
 Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
202520242023202520242023
Components of net periodic (benefit) cost:
Service cost$324 $339 $290 $33 $35 $32 
Interest cost697 662 648 64 62 61 
Expected return on plan assets(1,086)(1,112)(1,055)(185)(192)(182)
Amortization of prior service (benefit) cost2 2 2 — (6)(53)
Recognized actuarial (gain) loss76 125 122 (4)(3)(6)
Net periodic (benefit) cost$13 $15 $8 $(92)$(103)$(148)
The following represents the amounts recognized in other comprehensive income (loss) for the years ended December 31:
Defined Benefit
Pension Plans		Retiree Health
Benefit Plans
202520242023202520242023
Actuarial gain (loss) arising during period$138 $555 $(764)$65 $(37)$(50)
Amortization of net actuarial (gain) loss included in net income76 125 122 (4)(3)(6)
Foreign currency exchange rate changes and other(48)18 (27)1 (6)(52)
Total other comprehensive income (loss) during period$166 $697 $(669)$62 $(46)$(108)
Benefit Plan Investments
Our benefit plan investment policies are set with specific consideration of return and risk requirements in relationship to the respective liabilities. U.S. and Puerto Rico plans represent approximately 85 percent of our global investments. Given the long-term nature of our liabilities, these plans have the flexibility to manage an above-average degree of risk in the asset portfolios. At the investment-policy level, there are no specifically prohibited investments. However, within individual investment manager mandates, restrictions and limitations are contractually set to align with our investment objectives, ensure risk control, and limit concentrations.
We manage our portfolio to minimize concentration of risk by allocating funds within asset categories. In addition, within a category we use different managers with various management objectives to eliminate any significant concentration of risk. Our global benefit plans may enter into contractual arrangements (derivatives) to implement the local investment policy or manage particular portfolio risks.
The defined benefit pension and retiree health benefit plan allocation for the U.S. and Puerto Rico currently comprises approximately 85 percent growth investments and 15 percent fixed-income investments. The growth investment allocation encompasses public equity securities, hedge funds, private equity-like investments, and real estate. These portfolio allocations are intended to reduce overall risk by providing diversification, while seeking moderate to high returns over the long term.
Public equity securities - Securities are well diversified and invested in U.S. and international companies across various asset managers and styles.
Fixed-income investments - These investments primarily consist of fixed-income securities in U.S. treasuries and agencies, emerging market debt obligations, corporate bonds, bank loans, mortgage-backed securities, commercial mortgage-backed obligations, and any related repurchase agreements.
Hedge funds - Our hedge fund investments are made through limited partnership interests in fund-of-funds structures and directly into hedge funds. Plan holdings in hedge funds are valued based on net asset values (NAVs) calculated by each fund or general partner, as applicable, and we have the ability to redeem these investments at NAV.
Private equity-like investments - Private equity-like investments are made through long-term partnerships or joint ventures with limited liquidity and typical fund lives of 10 to 15 years. Underlying investments include venture capital, buyout, special situations, private debt, and private real estate. These investments are made both directly into funds and through fund-of-funds structures to ensure broad diversification across management styles and asset types. Plan holdings in private equity-like investments are valued using partnership-reported values, adjusted for known cash flows and significant events through the reporting date. Valuation inputs include underlying NAVs, discounted cash flow analyses, and comparable market data, with adjustments for currency, credit, liquidity, and other risks as applicable. The majority of these partnerships provide annual audited financial statements confirming compliance with fair valuation procedures consistent with applicable accounting standards.
Real estate - Real estate investments in registered investment companies that trade on an exchange are classified as Level 1 on the fair value hierarchy. Real estate investments in funds measured at fair value on the basis of NAV provided by the fund manager are classified as such. These NAVs are developed with inputs including discounted cash flow, independent appraisal, and market comparable analyses.
Other assets - Other assets include cash and cash equivalents and mark-to-market value of derivatives.
The cash value of the trust-owned insurance contract is primarily invested in investment-grade publicly traded equity and fixed-income securities.
Other than hedge funds, private equity-like investments, and a portion of the real estate holdings, which are discussed above, we determine fair values based on a market approach using quoted market values, significant other observable inputs for identical or comparable assets or liabilities, or discounted cash flow analyses.
The fair values of our defined benefit pension plan assets by asset category were as follows:
  Fair Value Measurements Using
TotalQuoted Prices in Active Markets for
Identical Assets
(Level 1)		Significant
Observable 
Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
Investments Valued at Net Asset Value(1)
As of December 31, 2025
Public equity securities$4,277 $1,179 $403 $— $2,695 
Fixed-income investments
2,083 55 1,517 — 511 
Hedge funds3,240 — — — 3,240 
Private equity-like investments
3,927 — — 6 3,921 
Real estate460 312 — — 148 
Other assets
833 49 103 — 681 
Total$14,820 $1,595 $2,023 $6 $11,196 
As of December 31, 2024
Public equity securities$3,423 $1,056 $337 $— $2,030 
Fixed-income investments
2,023 42 1,556 — 425 
Hedge funds3,058 — — — 3,058 
Private equity-like investments
3,931 — — 9 3,922 
Real estate451 301 — — 150 
Other assets
773 10 26 — 737 
Total$13,658 $1,409 $1,919 $9 $10,321 
(1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.
The fair values of our retiree health plan assets by asset category were as follows:
  Fair Value Measurements Using
TotalQuoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Observable Inputs
(Level 2)		Significant Unobservable Inputs
(Level 3)
Investments Valued at Net Asset Value(1)
As of December 31, 2025
Public equity securities$383 $114 $— $— $269 
Fixed-income investments
77 — 46 — 31 
Hedge funds314 — — — 314 
Private equity-like investments
363 — — 1 362 
Cash value of trust owned insurance contract1,529 — 1,529 — — 
Real estate30 30 — — — 
Other assets
79 12 2 — 65 
Total$2,775 $156 $1,577 $1 $1,041 
As of December 31, 2024
Public equity securities$288 $98 $— $— $190 
Fixed-income investments
89 — 63 — 26 
Hedge funds285 — — — 285 
Private equity-like investments
346 — — 1 345 
Cash value of trust owned insurance contract1,465 — 1,465 — — 
Real estate28 28 — — — 
Other assets
64 4 (7)— 68 
Total$2,566 $130 $1,521 $1 $914 
(1) Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy.