v3.25.4
Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Change In Benefit Obligations, Change In Plan Assets, Funded Status, Amounts Recognized on Balance Sheet, and Amounts Recognized In Accumulated Other Comprehensive Income (Pretax) The following tables summarize benefit costs, as well as the benefit obligations, plan assets, funded status and rate assumptions associated with pension and postretirement health care and life insurance benefit plans.
Obligations and Funded Status
(dollars in millions)
PensionHealth Care and Life
At December 31,2025202420252024
Change in Benefit Obligations
Beginning of year$7,918 $15,133 $10,539 $11,455 
Service cost160 185 33 52 
Interest cost405 479 547 543 
Plan amendments— — 1 — 
Actuarial (gain) loss, net137 (1,130)279 (533)
Benefits paid(435)(419)(801)(978)
Curtailment and termination benefits1 6 — — 
Settlements paid(215)(725)— — 
Annuity contracts transfer
— (5,611)— — 
End of year7,971 7,918 10,598 10,539 
Change in Plan Assets
Beginning of year6,802 13,536 466 466 
Actual return on plan assets456 (400)71 43 
Company contributions1,313 421 762 935 
Benefits paid(435)(419)(801)(978)
Settlements paid(215)(725)— — 
Annuity contracts transfer
— (5,611)— — 
End of year7,921 6,802 498 466 
Funded Status - End of year$(50)$(1,116)$(10,100)$(10,073)
(dollars in millions)
PensionHealth Care and Life
At December 31,2025202420252024
Amounts recognized in the balance sheets
Non-current assets$254 $— $— $— 
Current liabilities$(36)$(38)$(612)$(643)
Non-current liabilities(268)(1,078)(9,488)(9,430)
Total$(50)$(1,116)$(10,100)$(10,073)
Amounts recognized in Accumulated other comprehensive loss (pre-tax)
Prior service cost (benefit)$412 $523 $(703)$(833)
Total$412 $523 $(703)$(833)
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets
Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:
(dollars in millions)
At December 31,20252024
Accumulated benefit obligation$1,883 $7,881 
Fair value of plan assets1,579 6,802 
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets
Information for pension plans with a projected benefit obligation in excess of plan assets follows:
(dollars in millions)
At December 31,20252024
Projected benefit obligation$1,883 $7,918 
Fair value of plan assets1,579 6,802 
Benefit or (Income) Cost Related to Pension and Postretirement Health Care and Life Insurance
The following table summarizes the components of net periodic benefit cost (income) related to our pension and postretirement health care and life insurance plans:
(dollars in millions)
PensionHealth Care and Life
Years Ended December 31,202520242023202520242023
Service cost - Cost of services$137 $159 $182 $28 $44 $46 
Service cost - Selling, general and administrative expense23 26 26 5 8 8 
Service cost160 185 208 33 52 54 
Amortization of prior service cost (credit)112 112 112 (129)(129)(419)
Expected return on plan assets(534)(620)(1,013)(28)(28)(31)
Interest cost405 479 752 547 543 545 
Remeasurement loss (gain), net216 (110)266 237 (547)726 
Curtailment and termination benefits1 — — — — — 
Other components200 (139)117 627 (161)821 
Total$360 $46 $325 $660 $(109)$875 
Other Pretax Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss
Other pre-tax changes in plan assets and benefit obligations recognized in Other comprehensive (income) loss are as follows:
(dollars in millions)
PensionHealth Care and Life
At December 31,202520242023202520242023
Reversal of amortization items
Prior service cost (benefit)$(112)$(112)$(112)$129 $129 $419 
Total recognized in Other comprehensive loss (income) (pre-tax)$(112)$(112)$(112)$129 $129 $419 
Weighted Average Assumptions Used in Determining Benefit Obligations and Net Periodic Cost
The weighted-average assumptions used in determining benefit obligations follow:
PensionHealth Care and Life
At December 31,2025202420252024
Discount Rate5.70%5.80%5.40%5.60%
Rate of compensation increases3.00%3.00%N/AN/A
N/A - not applicable

The weighted-average assumptions used in determining net periodic cost follow:
PensionHealth Care and Life
At December 31,202520242023202520242023
Discount rate in effect for determining service cost
5.80%5.40%5.30%5.80%5.10%5.30%
Discount rate in effect for determining interest cost
5.405.205.105.404.905.10
Expected return on plan assets8.007.907.706.206.307.30
Rate of compensation increases3.003.003.00N/AN/AN/A
N/A - not applicable
Health Care Cost Trend Rates
The assumed health care cost trend rates are as follows:
Health Care and Life
At December 31,202520242023
Weighted-average healthcare cost trend rate assumed for next year9.30 %8.80 %7.30 %
Rate to which cost trend rate gradually declines4.50 4.50 4.50 
Year the rate reaches the level it is assumed to remain thereafter203420342032
Fair Values for Plans by Asset Category
The fair values for the pension plans by asset category at December 31, 2025 are as follows:
(dollars in millions)
Asset CategoryTotalLevel 1Level 2Level 3
Cash and cash equivalents$882 $859 $23 $— 
Equity securities8 8 — — 
Fixed income securities
U.S. Treasuries and agencies938 737 201 — 
Corporate bonds2,200 1,069 1,131 — 
International bonds139 — 139 — 
Other163 (47)210 — 
Real estate917 — — 917 
Other
Private equity417 — — 417 
Hedge funds53 — 25 28 
Total investments at fair value5,717 2,626 1,729 1,362 
Investments measured at NAV2,204 
Total$7,921 $2,626 $1,729 $1,362 

The fair values for the pension plans by asset category at December 31, 2024 are as follows:
(dollars in millions)
Asset CategoryTotalLevel 1Level 2Level 3
Cash and cash equivalents$542 $530 $12 $— 
Equity securities12 12 — — 
Fixed income securities
U.S. Treasuries and agencies720 527 193 — 
Corporate bonds1,129 627 502 — 
International bonds113 — 113 — 
Other82 (87)169 — 
Real estate934 — — 934 
Other
Private equity564 — — 564 
Hedge funds50 — 27 23 
Total investments at fair value4,146 1,609 1,016 1,521 
Investments measured at NAV2,656 
Total$6,802 $1,609 $1,016 $1,521 
Health Care and Life Plans
The fair values for the other postretirement benefit plans by asset category at December 31, 2025 are as follows:
(dollars in millions)
Asset CategoryTotalLevel 1Level 2Level 3
Cash and cash equivalents$32 $— $32 $— 
Equity securities237 237 — — 
Fixed income securities
U.S. Treasuries and agencies165 150 15 — 
Corporate bonds39 22 17 — 
International bonds13 9 4 — 
Other12 — 12 — 
Total investments at fair value498 418 80 — 
Investments measured at NAV— 
Total$498 $418 $80 $— 
The fair values for the other postretirement benefit plans by asset category at December 31, 2024 are as follows:
(dollars in millions)
Asset CategoryTotalLevel 1Level 2Level 3
Cash and cash equivalents$21 $— $21 $— 
Equity securities223 223 — — 
Fixed income securities
U.S. Treasuries and agencies149 135 14 — 
Corporate bonds45 32 13 — 
International bonds15 11 4 — 
Other10 — 10 — 
Total investments at fair value463 401 62 — 
Investments measured at NAV3 
Total$466 $401 $62 $— 
Reconciliation of Beginning and Ending Balance of Plan Assets Measured at Fair Value
The following is a reconciliation of the beginning and ending balance of pension plan assets that are measured at fair value using significant unobservable inputs:
(dollars in millions)
Real
Estate		Private
Equity		Hedge
Funds		Total
Balance at January 1, 2024$996 $512 $26 $1,534 
Actual gain (loss) on plan assets(69)55 1 (13)
Purchases (sales)12 (1)(1)10 
Transfers out(5)(2)(3)(10)
Balance at December 31, 2024934 564 23 1,521 
Actual gain (loss) on plan assets43 (53)3 (7)
Purchases (sales)(60)(90)2 (148)
Transfers out— (4)— (4)
Balance at December 31, 2025$917 $417 $28 $1,362 
Expected Benefit Payments to Retirees
The benefit payments to retirees are expected to be paid as follows:
(dollars in millions)
YearPension BenefitsHealth Care and Life
2026$1,117 $711 
2027320 755 
2028360 788 
2029401 812 
2030438 875 
2031 to 20352,663 4,489 
Schedule of Recorded Severance Liability
The following table provides an analysis of our severance liability:
(dollars in millions)
YearBeginning of YearCharged to
Expense		PaymentsEnd of Year
2023$653 $531 $(617)$567 
2024567 1,494 (966)1,095 
20251,095 1,491 (906)1,680