v3.25.4
Pension and Postretirement Benefit Plans and Defined Contribution Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension and Postretirement Benefit Plans and Defined Contribution Plans Pension and Postretirement Benefit Plans and Defined Contribution Plans
The majority of our employees worldwide are eligible for retirement benefits provided through defined benefit pension plans, defined contribution plans or both. In the U.S., we sponsor both IRC-qualified and supplemental (non-qualified) defined benefit plans and defined contribution plans. A qualified plan meets the requirements of certain sections of the IRC, and, generally, contributions to qualified plans are tax deductible. A qualified plan typically provides benefits to a broad group of employees with restrictions on discriminating in favor of highly compensated employees with regard to coverage, benefits and contributions. A supplemental (non-qualified) plan provides additional benefits to certain employees. In addition, we provide medical insurance benefits to certain retirees and their eligible dependents through our postretirement plans.
A. Components of Net Periodic Benefit Cost/(Credit) and Changes in Other Comprehensive Income/(Loss)
Pension PlansPostretirement Plans
U.S.International
Year Ended December 31,
(MILLIONS)202520242023202520242023202520242023
Service cost$— $— $— $104 $87 $85 $17 $14 $12 
Interest cost529 553 589 293 312 287 25 23 21 
Expected return on plan assets(735)(832)(778)(329)(322)(304)(57)(51)(44)
Amortization of prior service cost/(credit)— 1 2 4 4 — (88)(113)(119)
Actuarial (gains)/losses(a)
(59)396 (410)(201)33 102 18 144 51 
Curtailments— — — (10)(4)(2)(70)— (12)
Special termination benefits— — 6 2 10 — — — — 
Net periodic benefit cost/(credit) reported in income(265)117 (592)(137)120 169 (155)18 (90)
Cost/(credit) reported in Other comprehensive income/(loss)
— (1)(2)12 (4)31 140 (80)128 
Cost/(credit) recognized in Comprehensive income
$(265)$116 $(594)$(126)$117 $199 $(15)$(62)$38 
(a)Reflects: (i) actuarial remeasurement net gains in 2025 primarily due to favorable asset performance for the U.S. pension plans and increases in discount rates for the international pension plans, partially offset by unfavorable asset performance for the international pension plans and decreases in discount rates for the U.S. and postretirement plans, (ii) actuarial remeasurement net losses in 2024, primarily due to unfavorable asset performance for the U.S. pension plans and decreases in discount rates for the international pension plans, partially offset by increases in discount rates for the U.S. pension plans and favorable asset performance for the international pension plans and postretirement plans, and (iii) actuarial remeasurement net gains in 2023, primarily due to favorable asset performance in the U.S. and increases in discount rates for the international plans, partially offset by unfavorable asset performance for certain international plans.
The components of net periodic benefit cost/(credit) other than the service cost component are included in Other (income)/deductions––net (see Note 4).
B. Actuarial Assumptions
Pension PlansPostretirement Plans
U.S.International
Year Ended December 31,
(PERCENTAGES)202520242023202520242023202520242023
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate:
Pension plans/postretirement plans5.7 %5.4 %5.4 %5.5 %5.4 %5.5 %
Interest cost3.9 %4.4 %3.8 %
Service cost3.6 %3.9 %3.6 %
Expected return on plan assets7.7 %8.0 %7.5 %4.9 %5.1 %4.5 %7.8 %8.0 %7.5 %
Rate of compensation increase(a)
3.1 %3.2 %3.0 %
Weighted-average assumptions used to determine benefit obligations at fiscal year-end:
Discount rate5.6 %5.7 %5.4 %4.7 %4.1 %4.4 %5.2 %5.5 %5.4 %
Rate of compensation increase(a)
3.1 %3.1 %3.2 %
(a)The rate of compensation increase is not used to determine the net periodic benefit cost and benefit obligation for the U.S. pension plans as these plans are frozen.
The assumptions are reviewed at least annually. We revise these assumptions based on an annual evaluation of long-term trends as well as market conditions that may have an impact on the cost of providing retirement benefits.
The weighted-average discount rate for our U.S. defined benefit plans is set with reference to the prevailing market rate of a portfolio of high-quality fixed income investments, rated AA/Aa or better that reflect the rates at which the pension benefits could be effectively settled. For our international plans, the discount rates are set by benchmarking against investment grade corporate bonds rated AA/Aa or better, including, when there is sufficient data, a yield curve approach. These rate determinations are made consistent with local requirements. Overall, the yield curves used to measure the benefit obligations at year-end 2025 resulted in lower discount rates for the U.S. pension plans and higher discount rates for the international pension plans as compared to the prior year.
The following provides the healthcare cost trend rate assumptions for our U.S. postretirement benefit plans:
As of December 31,
20252024
Healthcare cost trend rate assumed for next year 8.0 %7.5 %
Rate to which the cost trend rate is assumed to decline4.0 %4.0 %
Year that the rate reaches the ultimate trend rate2050 2047 
C. Obligations and Funded Status
The following provides: (i) an analysis of the changes in our benefit obligations, plan assets and funded status of our benefit plans, (ii) the funded status recognized in our consolidated balance sheets and (iii) the pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
 Pension Plans Postretirement Plans
 U.S. International
Year Ended December 31,
(MILLIONS)202520242025202420252024
Change in benefit obligation(a)
Benefit obligation, beginning$9,781 $10,756 $7,363 $7,292 $486 $450 
Service cost— — 104 87 17 14 
Interest cost529 553 293 312 25 23 
Employee contributions— — 17 16 75 61 
Plan amendments— — 16 — — (193)
Changes in actuarial assumptions and other(b)
146 (299)(480)119 64 199 
Foreign exchange impact1 (1)409 (106)1 (2)
Acquisitions/divestitures and other, net
— — 95 77 — — 
Curtailments and special termination benefits— — (12)7 (18)— 
Settlements
(40)(756)(283)(69)— — 
Benefits paid(828)(473)(403)(371)(89)(67)
Benefit obligation, ending(a)
9,589 9,781 7,118 7,363 561 486 
Change in plan assets
Fair value of plan assets, beginning
9,948 10,935 6,696 6,552 736 636 
Actual return on plan assets941 138 51 408 103 105 
Company contributions104 103 137 164 (12)— 
Employee contributions— — 17 16 75 61 
Foreign exchange impact— — 298 (65)— — 
Acquisitions/divestitures and other, net
— — 95 62 — — 
Settlements
(40)(756)(283)(69)— — 
Benefits paid(828)(473)(403)(371)(89)(67)
Fair value of plan assets, ending10,124 9,948 6,606 6,696 814 736 
Funded status$535 $167 $(512)$(667)$253 $251 
Amounts recorded in our consolidated balance sheet:
Noncurrent assets$1,254 $934 $856 $728 $334 $330 
Current liabilities(87)(90)(34)(31)(6)(5)
Noncurrent liabilities(632)(678)(1,334)(1,364)(75)(74)
Funded status$535 $167 $(512)$(667)$253 $251 
Pre-tax components of cumulative amounts recognized in Accumulated other comprehensive loss:
Prior service (costs)/credits$(2)$(2)$(73)$(61)$225 $365 
Information related to the funded status of pension plans with an ABO in excess of plan assets(c):
Fair value of plan assets
$1 $— $459 $456 
ABO720 768 1,746 1,752 
Information related to the funded status of pension plans with a PBO in excess of plan assets(c):
Fair value of plan assets$1 $— $821 $690 
PBO720 768 2,189 2,084 
(a)For the U.S. pension plans, the benefit obligation is both the PBO and ABO as these plans are frozen and future benefit accruals no longer increase with future compensation increases. For the international pension plans, the benefit obligation is the PBO. The ABO for our international pension plans was $6.8 billion in 2025 and $7.1 billion in 2024. For the postretirement plans, the benefit obligation is the ABO.
(b)For 2025, primarily includes actuarial gains resulting from increases in discount rates for the international pension plans, partially offset by actuarial losses resulting from decreases in discount rates for the U.S. pension and postretirement plans. For 2024, primarily includes actuarial losses resulting from decreases in discount rates for the international pension plans, and other assumption changes for the postretirement plans, largely offset by actuarial gains resulting from increases in discount rates for the U.S. pension plans.
(c)Our U.S. qualified plans, U.S. postretirement plan and many of our larger funded international plans were overfunded as of December 31, 2025.
D. Plan Assets
The following provides the components of plan assets:
As of December 31, 2025As of December 31, 2024
    Fair ValueFair Value
(MILLIONS EXCEPT TARGET ALLOCATION PERCENTAGE)Target Allocation PercentageTotalLevel 1Level
2		Level 3
Assets Measured at NAV(a)
TotalLevel 1Level
 2		Level 3
Assets Measured at NAV(a)
U.S. pension plans
Cash and cash equivalents0-12%$682 $66 $615 $— $— $533 $56 $477 $— $— 
Equity securities:10-40%
Global equity securities1,396 1,396 — — — 1,341 1,341 — — — 
Equity commingled funds216 — 216 — — 97 — 97 — — 
Fixed income securities:45-75%
Corporate debt securities2,660 4 2,656 — — 2,878 4 2,874 — — 
Government and agency obligations(b)
2,090 — 2,090 — — 2,059 — 2,059 — — 
Fixed income commingled funds43 — 13 — 30 42 — 12 — 30 
Other investments:10-40%
Partnership investments(c)
2,735 — — — 2,735 2,665 — — — 2,665 
Insurance contracts— — — — — — — — — — 
Other commingled funds(d)
302 — — — 302 333 — — — 333 
Total100 %$10,124 $1,466 $5,591 $— $3,066 $9,948 $1,401 $5,518 $— $3,028 
International pension plans
Cash and cash equivalents0-10%$346 $108 $237 $— $— $310 $138 $172 $— $— 
Equity securities:10-20%
Equity commingled funds714 — 686 — 28 704 — 619 — 86 
Fixed income securities:40-65%
Corporate debt securities347 — 342 5 — 638 — 633 5 — 
Government and agency obligations(b)
1,041 — 1,041 — — 960 1 960 — — 
Fixed income commingled funds1,773 — 1,225 — 548 1,750 — 1,064 — 686 
Other investments:20-40%
Partnership investments(c)
148 — 2 — 146 147 — 2 — 145 
Insurance contracts1,033 — 46 988 — 1,221 — 45 1,176 — 
Other(d)
1,204 14 185 263 741 965 35 147 252 531 
Total100 %$6,606 $123 $3,763 $1,256 $1,464 $6,696 $174 $3,642 $1,433 $1,447 
U.S. postretirement plans(e)
Cash and cash equivalents0-5%$10 $— $10 $— $— $12 $— $12 $— $— 
Insurance contracts95-100%804 — 804 — — 724 — 724 — — 
Total100 %$814 $— $814 $— $— $736 $— $736 $— $— 
(a)Certain investments that are measured at NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The NAV amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension benefits plan assets.
(b)Government and agency obligations are inclusive of repurchase agreements.
(c)Mainly includes investments in private equity, private debt and real estate.
(d)Mostly includes investments in hedge funds, real estate and infrastructure.
(e)Reflects postretirement plan assets, which support our U.S. retiree medical plans.
The following provides an analysis of the changes in our investments valued using significant unobservable inputs:
International Pension Plans
Year Ended December 31,
(MILLIONS)20252024
Fair value, beginning$1,433 $1,340 
Actual return on plan assets:
Assets held, ending(21)8 
Assets sold during the period4 — 
Purchases, sales, and settlements, net
(219)(79)
Transfer into/(out of) Level 3(1)168 
Exchange rate changes59 (5)
Fair value, ending$1,256 $1,433 
The following methods and assumptions were used to estimate the fair value of our pension and postretirement plans’ assets:
•Cash and cash equivalents: Level 1 investments may include cash, cash equivalents and foreign currency valued using exchange rates. Level 2 investments may include short-term investment funds which are commingled funds priced at a stable NAV by the administrator of the funds.
•Equity securities: Level 1 investments may include individual securities that are valued at the closing price or last trade reported on the major market on which they are traded. Level 1 and Level 2 investments may include commingled funds that have a readily determinable fair value based on quoted prices on an exchange or a published NAV derived from the quoted prices in active markets of the underlying securities. Level 3 investments may include individual securities that are unlisted, delisted, suspended, or illiquid and are typically valued using their last available price.
•Fixed income securities: Level 1 investments may include individual securities that are valued at the closing price or last trade reported on the major market on which they are traded. Level 2 investments may include commingled funds that have a readily determinable fair value based on observable prices of the underlying securities. Level 2 investments may include corporate bonds, government and government agency obligations and other fixed income securities valued using bid evaluation pricing models or quoted prices of securities with similar characteristics. Level 3 investments may include securities that are valued using alternative pricing sources, such as investment managers or brokers, which use proprietary pricing models that incorporate unobservable inputs.
•Other investments: Level 1 investments may include individual securities that are valued at the closing price or last trade reported on the major market on which they are traded. Level 2 investments may include insurance contracts which invest in interest bearing cash, U.S. government securities and corporate debt instruments. Level 3 investments may include securities or insurance contracts that are valued using alternative pricing sources, such as investment managers or brokers, which use proprietary pricing models that incorporate unobservable inputs.
Equity securities, Fixed income securities and Other investments may each be combined into commingled funds. Most commingled funds are valued to reflect the interest in the fund based on the reported year-end NAV. Partnership and Other investments are valued based on year-end reported NAV (or its equivalent), with adjustments as appropriate for lagged reporting of up to three months.
Certain investments are authorized to include derivatives, such as equity or bond futures, swaps, options and currency futures or forwards for managing risks and exposures.
Global plan assets are managed with the objective of generating returns that will enable the plans to meet their future obligations, while seeking to manage net periodic benefit costs and cash contributions over the long-term. We utilize long-term asset allocation ranges in the management of our plans’ invested assets. Our long-term return expectations are developed based on a diversified, global investment strategy that takes into account historical experience, as well as the impact of portfolio diversification, active portfolio management, and our view of current and future economic and financial market conditions. As market conditions and other factors change, we may adjust our targets accordingly and our asset allocations may vary from the target allocations.
E. Cash Flows
It is our practice to fund amounts for our qualified pension plans that are at least sufficient to meet the minimum requirements set forth in applicable employee benefit laws and local tax laws.
The following provides the expected future cash flow information related to our benefit plans:
  Pension PlansPostretirement Plans
(MILLIONS)U.S.International
Expected employer contributions:
2026
$88 $168 $46 
Expected benefit payments:
2026$849 $410 $49 
2027844 413 55 
2028
817 412 58 
2029
807 427 59 
2030
782 440 60 
2031–2035
3,513 2,324 284 
The above table reflects the total U.S. and international plan benefits projected to be paid from the plans or from our general assets under the current actuarial assumptions used for the calculation of the benefit obligation.
F. Defined Contribution Plans
We have defined contribution plans in the U.S. and other countries. For the majority of the U.S. defined contribution plans, employees may contribute a portion of their salaries and bonuses to the plans, and we match, in cash, a portion of the employee contributions. We also offer a Retirement Savings Contribution which is an annual employer contribution in the U.S. and Puerto Rico. We recorded charges related to the employer contributions to global defined contribution plans of $854 million in 2025, $800 million in 2024 and $843 million in 2023.