v3.25.4
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Change in Benefit Obligations and Fair Value of Plan Assets
An analysis of the projected benefit obligations for our pension plans and accumulated benefit obligations for our postretirement health and life insurance plans follows:
Millions of Dollars
Pension BenefitsOther Benefits
2025202420252024
U.S.Int’l.U.S.Int’l.
Change in Benefit Obligation
Benefit obligation at January 1$1,806 2,591 1,525 2,866 145 107 
Service cost58 34 49 38 2 
Interest cost93 130 76 114 8 
Plan participant contributions  — — 14 12 
Plan amendments  — 57 (2)— 
Business combinations237 42 
Actuarial (gain) loss89 (59)(4)(202)(3)
Benefits paid(204)(142)(98)(134)(39)(27)
Curtailment3 (8)— 1 — 
Recognition of termination benefits  13 —  — 
Foreign currency exchange rate change 243 — (148) — 
Benefit obligation at December 31*
$1,845 2,789 1,806 2,591 126 145 
*Accumulated benefit obligation portion of above at December 31:
$1,767 2,577 1,703 2,392 
Change in Fair Value of Plan Assets
Fair value of plan assets at January 1$1,556 2,907 1,306 3,085  — 
Actual return on plan assets166 192 66 18  — 
Company contributions148 50 83 88 25 15 
Plan participant contributions  — — 14 12 
Business combinations199 
Benefits paid(204)(142)(98)(134)(39)(27)
Foreign currency exchange rate change 277 — (150) — 
Fair value of plan assets at December 31
$1,666 3,284 1,556 2,907  — 
Funded Status$(179)495 (250)316 (126)(145)
Amounts Recognized in Balance Sheet and Assumptions
Millions of Dollars
Pension BenefitsOther Benefits
2025202420252024
U.S.Int’l.U.S.Int’l.
Amounts Recognized in the Consolidated Balance Sheet at December 31
Noncurrent assets$29 744 553  — 
Current liabilities(81)(10)(28)(10)(24)(26)
Noncurrent liabilities(127)(239)(223)(227)(102)(119)
Total recognized$(179)495 (250)316 (126)(145)
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31
Discount rate5.25 %4.95 5.70 4.90 5.60 5.60 
Rate of compensation increase4.50 4.05 5.00 4.05 
Interest crediting rate for applicable benefits4.75 4.30 
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31
Discount rate5.70 %4.90 5.35 4.10 4.25 5.35 
Expected return on plan assets5.30 6.20 5.30 5.40 
Rate of compensation increase5.00 4.10 5.00 3.65 
Interest crediting rate for applicable benefits4.35 4.20 
Projected and Accumulated Benefit Obligations in Excess of Fair Value
The following tables summarize information related to the company's pension plans with projected and accumulated benefit obligations in excess of the fair value of the plans' assets:
Millions of Dollars
Pension Benefits
20252024
U.S.Int’l.U.S.Int’l.
Pension Plans with Projected Benefit Obligation in Excess of Plan Assets
Projected benefit obligation$208 258 450 242 
Fair value of plan assets 9 199 
Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets
Accumulated benefit obligation$190 223 425 210 
Fair value of plan assets 9 199 
Before-Tax Amounts not Recognized in Net Periodic Benefit Cost
Included in accumulated other comprehensive income (loss) at December 31 were the following before-tax amounts that had not been recognized in net periodic benefit cost:
Millions of Dollars
Pension BenefitsOther Benefits
2025202420252024
U.S.Int’l.U.S.Int’l.
Unrecognized net actuarial loss (gain)$92 364 112 445  
Unrecognized prior service cost (credit) 61 — 58 1 (21)
Source of Change in Other Comprehensive Income (Loss)
Millions of Dollars
Pension BenefitsOther Benefits
2025202420252024
U.S.Int’l.U.S.Int’l.
Sources of Change in Other Comprehensive Income (Loss)
Net gain (loss) arising during the period$5 34 83 3 (5)
Amortization of actuarial (gain) loss included in income (loss)*15 47 57 (1)— 
Net change during the period$20 81 11 140 2 (5)
Prior service credit (cost) arising during the period$ 2 — (57)2 — 
Amortization of prior service cost (credit) included in income (loss) 3 — — (24)(38)
Net change during the period$ 5 — (57)(22)(38)
*Includes settlement (gains) losses recognized in 2025 and 2024.
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost of all defined benefit plans are presented in the following table:
Millions of Dollars
Pension BenefitsOther Benefits
202520242023202520242023
U.S.Int’l.U.S.Int’l.U.S.Int’l.
Components of Net Periodic Benefit Cost
Service cost$58 34 49 38 51 38 2 
Interest cost93 130 76 114 77 113 8 
Expected return on plan assets(77)(189)(66)(163)(58)(148) — — 
Amortization of prior service credit 3 — — — — (24)(38)(38)
Recognized net actuarial loss (gain)10 47 58 12 67  — (3)
Settlements loss (gain)5  — (1)—  — — 
Curtailment loss (gain)8 (3)— — — 1 — — 
Net periodic benefit cost$97 22 75 46 88 70 (13)(32)(35)
Fair Values of Pension Plan Assets
The fair values of our pension plan assets at December 31, by asset class were as follows: 
Millions of Dollars
U.S.International
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
2025
Equity securities
International1   1 1   1 
Mutual funds20   20 514 103  617 
Debt securities
Corporate  1 1     
Mutual funds    572   572 
Private equity funds2 2 
Cash and cash equivalents1   1 18   18 
Insurance contracts4 4 
Real estate  2 2   169 169 
Total in fair value hierarchy$22  9 31 1,105 103 169 1,377 
Investments measured at net asset value*
Equity securities
Common/collective trusts353 325 
Debt securities
Common/collective trusts1,213 1,579 
Cash and cash equivalents9  
Real estate21  
Total**$22  9 1,627 1,105 103 169 3,281 
*In accordance with FASB ASC Topic 715, “Compensation—Retirement Benefits,” certain investments that are to be measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Change in Fair Value of Plan Assets.
**Excludes the participating interest in the insurance annuity contract with a net asset of $40 million and net receivables related to security transactions of $2 million.
The fair values of our pension plan assets at December 31, by asset class were as follows: 
Millions of Dollars
U.S.International
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
2024
Equity securities
U.S.$— — — — — — 
International38 — — 38 — — — — 
Mutual funds17 — — 17 445 77 — 522 
Debt securities
Corporate— — — — — — 
Mutual funds— — — — 451 — — 451 
Private equity funds
Cash and cash equivalents— — — — 25 — — 25 
Insurance contracts
Real estate— — — — 136 136 
Total in fair value hierarchy$60 10 71 921 77 136 1,134 
Investments measured at net asset value*
Equity securities
Common/collective trusts479 194 
Debt securities
Common/collective trusts938 1,575 
Cash and cash equivalents— 
Real estate22 — 
Total**$60 10 1,513 921 77 136 2,903 
    *In accordance with FASB ASC Topic 715, “Compensation—Retirement Benefits,” certain investments that are to be measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Change in Fair Value of Plan Assets.
**Excludes the participating interest in the insurance annuity contract with a net asset of $42 million and net receivables related to security transactions of $5 million.
Benefit Payments
The following benefit payments, which are exclusive of amounts to be paid from the insurance annuity contract and which reflect expected future service, as appropriate, are expected to be paid:
Millions of Dollars
Pension
Benefits
Other
Benefits
U.S.Int’l.
2026$511 135 17 
2027279 139 17 
2028164 142 16 
2029161 146 14 
2030151 151 13 
2031–2035628 799 52 
Severance Accrual
The following table summarizes our severance accrual activity:
Millions of Dollars
202520242023
Balance at January 1$331 12 31 
Accruals*365 328 
Benefit payments(320)(9)(20)
Foreign currency translation adjustment2 — — 
Balance at December 31**
$378 331 12 
*Partner recoveries of $73 million are accrued as receivables as of December 31, 2025. The expenses in our consolidated income statement are presented net of this amount.
**Of the remaining balance at December 31, 2025, $300 million is classified as short-term.
Compensation Expense
Compensation Expense—Total share-based compensation expense recognized in net income (loss) and the associated tax benefit were:
Millions of Dollars
202520242023
Compensation cost$336 268 334 
Tax benefit79 67 84 
Stock Option Activity
The following summarizes our stock option activity for the year ended December 31, 2025:
Millions of Dollars
OptionsWeighted-Average
Exercise Price
Aggregate
Intrinsic Value
Outstanding at December 31, 2024
2,051,075 $43.16 $113 
Exercised(1,086,350)38.71 60 
Outstanding at December 31, 2025
964,725 $48.17 $44 
Vested at December 31, 2025
964,725 $48.17 $44 
Exercisable at December 31, 2025
964,725 $48.17 $44 
Restricted Stock Unit Activity
The following summarizes our stock-settled RSU activity for the year ended December 31, 2025:
Stock UnitsWeighted-Average
Grant Date Fair Value
Millions of Dollars
Total Fair Value
Outstanding at December 31, 2024
6,471,773 $104.89 
Granted2,998,555 99.26 
Forfeited(274,989)103.37 
Issued(2,938,338)98.14 $285 
Outstanding at December 31, 2025
6,257,001 $105.43 
Not Vested at December 31, 2025
4,300,663 $105.25 
Performance Share Program Activity
The following summarizes our stock-settled Performance Share Program activity for the year ended December 31, 2025:
Weighted-Average
Grant Date Fair Value
Millions of Dollars
Stock UnitsTotal Fair Value
Outstanding at December 31, 2024
774,503 $50.75 
Granted4,737 100.90 
Issued(193,286)52.05 $18 
Outstanding at December 31, 2025
585,954 $50.73 
The following summarizes our cash-settled Performance Share Program activity for the year ended December 31, 2025:
Weighted-Average
Grant Date Fair Value
Millions of Dollars
Stock UnitsTotal Fair Value
Outstanding at December 31, 2024
89,583 $98.20 
Granted647,382 100.90 
Settled(659,340)100.14 $66 
Outstanding at December 31, 2025
77,625 $94.00 
Restricted Shares and Units Aggregate Activity
The following summarizes the aggregate activity of these restricted shares and units for the year ended December 31, 2025:
Weighted-Average
Grant Date Fair Value
Millions of Dollars
Stock UnitsTotal Fair Value
Outstanding at December 31, 2024
629,681 $60.22 
Granted43,292 98.68 
Issued(110,284)52.23 $12 
Outstanding at December 31, 2025
562,689 $64.75