Pension and other postretirement benefits

12 Months Ended

Dec. 31, 2025

Pension and other postretirement benefits

20. Pension and other postretirement benefits

The Company operates either defined benefit or defined contribution pension plans in all of its principal operating areas. The disclosures included below relate to all pension plans in the Company. The Company operates defined benefit pension plans in Australia, Belgium, Canada, France, Germany, Italy, the Netherlands, the Philippines, the Republic of Ireland, Romania, Serbia, Slovakia, Switzerland, the United Kingdom, the United States and Ukraine. The Company has a mixture of funded and unfunded defined benefit pension plans. The net surplus of the funded plans was $474 million and $290 million as of December 31, 2025 and 2024, respectively. Underfunded and unfunded obligations (including jubilee, postretirement healthcare obligations and long‑term service commitments) are comprised of a number of plans in Canada, France, Germany, Italy, the Netherlands, the Philippines, Romania, Serbia, Slovakia, Switzerland, Ukraine and the United States totaling a net liability of $261 million and $235 million as of December 31, 2025 and 2024, respectively.

Funded defined benefit plans in Australia, the Netherlands, the Republic of Ireland, Switzerland and the United Kingdom are administered by separate funds that are legally distinct from the Company under the jurisdiction of Trustees/Pension Boards. The Trustees/Pension Boards are required by law to act in the best interests of the scheme participants and are responsible for the definition of investment strategy and for scheme administration. Other plans are also administered in line with the local regulatory environment. The level of benefits available to most members depends on length of service and either their average salary over their period of employment or their salary in the final years leading up to retirement. For Switzerland, the level of benefits depends on salary, level of savings contributions, the interest rate on old age accounts (which cannot be negative) and the annuity conversion factor on retirement. The Company’s pension plans in Switzerland are contribution-based plans with guarantees. This means the Company pays an age-dependent fixed contribution percentage but should the invested assets be insufficient to meet the guaranteed benefit obligations, additional contributions might be required.

The change in benefit obligation, change in plan assets, funded status of pension and other postretirement benefit (OPEB) plans, and amounts recognized in the Consolidated Balance Sheets were:


	Pension Plans				OPEB Plans (i)
in $ millions	2025		2024		2025	2024
	U.S.	Non-U.S.	U.S.	Non-U.S.
Change in benefit obligation:
Benefit obligation at beginning of year	464	2,283	496	2,414	95	105
Service cost	1	39	2	39	2	3
Interest cost	25	81	24	81	5	5
Amendments	1	–	–	–	–	–
Actuarial losses and (gains)	17	(173)	(24)	(28)	10	(10)
Benefits paid	(36)	(98)	(34)	(104)	(5)	(5)
Plan participant contributions	–	13	–	10	–	–
Curtailments	–	(2)	–	(4)	–	–
Settlements	–	(11)	–	(7)	–	–
Net transfer (out) in (including the effect of any business combinations/divestitures)	–	(29)	–	27	–	(1)

Foreign currency rate changes	–	268	–	(145)	1	(2)
Benefit obligation at end of year	472	2,371	464	2,283	108	95

Change in plan assets:
Fair value of plan assets at beginning of year	434	2,463	449	2,524	–	–
Actual gain on plan assets	30	61	17	77	–	–
Employer contributions	2	34	2	36	5	5
Plan participant contributions	–	13	–	10	–	–
Benefits paid	(36)	(98)	(34)	(104)	(5)	(5)
Settlements	–	(11)	–	(7)	–	–
Net transfer (out) in (including effect of any business combinations/divestitures)	–	(29)	–	82	–	–

Foreign currency rate changes	–	301	–	(155)	–	–
Fair value of plan assets at end of year	430	2,734	434	2,463	–	–

Reconciliation of funded status:
Fair value of plan assets	430	2,734	434	2,463	–	–
Benefit obligation	472	2,371	464	2,283	108	95
Funded status	(42)	363	(30)	180	(108)	(95)
Accumulated Benefit Obligation	471	2,316	464	2,231

Amounts recognized in the Consolidated Balance Sheets:
Noncurrent assets	–	474	–	290	–	–
Current liabilities	(2)	(5)	(2)	(4)	(6)	(6)

Noncurrent liabilities	(40)	(106)	(28)	(106)	(102)	(89)

Funded status at end of year	(42)	363	(30)	180	(108)	(95)


Net actuarial (loss) gain	(55)	(64)	(45)	(190)	29	42
Prior service (cost) credit	(2)	70	(1)	74	2	2
Total accumulated other comprehensive (loss) income	(57)	6	(46)	(116)	31	44

(i) Includes a benefit obligation of $9 million and $8 million related to non-U.S. OPEB plans as of December 31, 2025 and 2024, respectively.

The pension and other postretirement plans for which their accumulated benefit obligation, projected benefit obligation or accumulated postretirement benefit obligation exceeds the fair value of their respective plan assets as of December 31 were:


in $ millions	U.S. Plans		Non-U.S. Plans
	2025	2024	2025	2024
Pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation	472	464	138	565
Fair value of plan assets	430	434	31	458

Pension plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation	471	464	130	147
Fair value of plan assets	430	434	38	61
Other postretirement plans with accumulated postretirement benefit obligations in excess of plan assets:
Accumulated postretirement benefit obligation	–	–	6	6
Fair value of plan assets	–	–	–	–

Impact on Consolidated Statements of Income
The total retirement benefit expense recognized in the Consolidated Statements of Income for the years ended December 31 were:


in $ millions	2025	2024	2023
Total defined contribution expense	371	345	320
Total defined benefit expense	21	34	31
Total expense within the Consolidated Statements of Income	392	379	351

Components of Net Periodic Benefit Cost
The components of net periodic benefit cost recognized in the Consolidated Statements of Income for the years ended December 31 were:


	Pension Plans						OPEB Plans (ii)
in $ millions	U.S.			Non-U.S.
	2025	2024	2023	2025	2024	2023	2025	2024	2023
Service cost	1	2	1	39	39	31	2	3	2
Interest cost	25	24	24	81	81	86	5	5	5
Expected return on assets	(23)	(21)	(20)	(99)	(87)	(91)	–	–	–
Amortization of:
Prior service credit	–	–	–	(12)	(12)	(11)	–	–	–
Actuarial loss (gain)	–	2	3	8	6	4	(3)	(2)	(3)
Curtailment gain	–	–	–	(3)	(3)	–	–	–	(1)
Settlement (gain) loss (i)	–	–	–	–	(3)	1	–	–	–
Net periodic benefit cost (iii)	3	7	8	14	21	20	4	6	3

(i) Settlement gain of $3 million, for the year ended December 31, 2024, relates to pension plans divested as part of the divestiture of the European Lime operations and is included in gain on divestitures, within Other nonoperating income (expense), net.

(ii) Includes the net periodic benefit cost of $nil million, related to non-U.S. OPEB plans for each of the years ended December 31, 2025, 2024, and 2023, respectively.

(iii) Service cost is included within Cost of revenues and Selling, general and administrative expenses while all other cost components are recorded within Other nonoperating income (expense), net.

The changes in plan assets and benefit obligations that were recognized in Other comprehensive loss (income) for the years ended December 31 were:


	Pension Plans						OPEB Plans (i)
in $ millions	U.S.			Non-U.S.
	2025	2024	2023	2025	2024	2023	2025	2024	2023
Net actuarial loss (gain)	10	(20)	(8)	(135)	(17)	126	10	(10)	3
Prior service cost (credit)	1	–	–	–	–	(1)	–	–	–
Amortization or curtailment recognition of prior service credit	–	–	–	13	12	11	–	–	–
Amortization or settlement recognition of net (loss) gain	–	(2)	(3)	(8)	(5)	(4)	3	2	3
Foreign currency exchange effects	–	–	–	7	(4)	(2)	–	–	–
Amount recognized in other comprehensive loss (income) (i)	11	(22)	(11)	(123)	(14)	130	13	(8)	6
Amount recognized in net periodic pension benefit cost and other comprehensive loss (income)	14	(15)	(3)	(109)	3	150	17	(2)	9

(i) Includes an amount recognized in Other comprehensive loss (income) of $nil million, $nil million and $1 million related to non-U.S. OPEB plans for the years ended December 31, 2025, 2024, and 2023, respectively.

The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31 were:


	Pension Plans												OPEB Plans
	U.S.						Non-U.S.
	2025		2024		2023		2025		2024		2023		2025		2024		2023
Discount rate	5.55	%	4.95	%	5.20	%	3.41	%	3.49	%	4.13	%	5.34	%	4.86	%	5.08	%
Rate of compensation increase	N/A		N/A		N/A		2.88	%	3.22	%	3.22	%	2.33	%	2.75	%	2.80	%
Expected long‐term rate of return on plan assets	6.00	%	5.50	%	5.50	%	3.90	%	3.62	%	4.04	%	N/A		N/A		N/A
Interest crediting rates	N/A		N/A		N/A		1.60	%	1.60	%	1.50	%	N/A		N/A		N/A

The weighted average assumptions used to determine the benefit obligation as of December 31 were:


	Pension Plans								OPEB Plans
	U.S.				Non-U.S.
	2025		2024		2025		2024		2025		2024
Discount rate	5.20	%	5.55	%	3.78	%	3.41	%	5.08	%	5.34	%
Rate of compensation increase	N/A		N/A		2.77	%	2.88	%	2.27	%	2.33	%

The long-term return expectation is developed based on a diversified investment strategy that takes into account historical experience, as well as the impact of portfolio diversification, active portfolio management, and the Company’s view of current and future economic and financial market conditions. In determining the expected rate of return for the plan assets, the Company performs an analysis of investment community forecasts and current market conditions to develop expected returns for each of the asset classes used by the plans, which are weighted to reflect the asset allocation of each plan. As market conditions and other factors change, the Company may adjust targets accordingly, and asset allocations may vary from the target allocations.

The assets of the Company’s pension and other postretirement plans are managed externally for the benefit of the plan members. Consideration is given to the long-term nature of the benefit obligations and the investment strategy is set at plan level, typically to maintain a diversified portfolio of assets with the objective of meeting future obligations and long-term cash requirements as they fall due. Assets are primarily invested in diversified funds that hold equity and debt securities to maintain security while maximizing returns within each plan’s investment policy. The investment policy for each plan specifies the type of investment vehicle, asset allocation guidelines as well as investment monitoring and performance requirements. For the main funded plans, the target allocations to equity/debt are as follows:

(i) Ireland: Equities 10-20% / Debt 55-60%.

(ii) U.S.: Equities 10-30% / Debt 65-85%.

(iii) Switzerland: Equities 20-35% / Debt 25-55%.

(iv) Other asset classes have a range of smaller % targets.

The target allocation ranges and fair values by asset class as of December 31 were:


	Pension Plans
	Target allocation ranges
	U.S. Plans	Non-U.S. Plans
	2025 (%)
Cash and cash equivalents	–	0-5
Equity instruments (i)	10-30	15-25
Debt instruments (ii)	65-85	20-35
Real estate	–	5-10
Derivatives	–	0-5
Investment funds	0-15	0-5
Assets held by insurance company	–	0-5

(i) For U.S. pension plans, equity instruments with a total allocation range of 10-30% are made up of 10-30% in developed markets’ diversified equity instruments and 10-30% in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments with a total allocation range of 15-25% are made up of 17-24% in developed markets’ diversified equity instruments and 1-2% in emerging markets’ diversified equity instruments.

(ii) For U.S. pension plans, debt instruments with a total allocation range of 65-85% are made up of 65-85% in non-government debt instruments and 65-85% in government fixed interest instruments. For non-U.S. pension plans, debt instruments with a total allocation range of 20-35% are made up of 32-43% in government inflation-protected bonds, 18-30% in government fixed interest instruments, 12-18% in non-government debt instruments, 6-12% in asset-backed instruments, 6-12% in inflation-protected bonds and 6-12% in structured debt.

The Company’s asset allocations by asset category as of December 31 were:


	Pension Plans
	Fair Values
in $ millions	2025
	U.S. Plans				Non-U.S. Plans
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Cash and cash equivalents	4	–	–	4	56	4	–	60
Equity instruments (i)	–	90	–	90	484	105	–	589
Debt instruments (ii)	–	318	–	318	1,093	488	–	1,581
Real estate	–	–	–	–	86	138	10	234
Derivatives	–	–	–	–	10	41	–	51
Investment funds	16	–	–	16	58	37	–	95
Assets held by insurance company	–	–	–	–	–	3	101	104
Other	–	–	2	2	3	7	10	20
Total	20	408	2	430	1,790	823	121	2,734

(i) For U.S. pension plans, equity instruments of $90 million are made up of $82 million in developed markets’ diversified equity instruments and $8 million in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments of $589 million are made up of $559 million in developed markets’ diversified equity instruments and $30 million in emerging markets’ diversified equity instruments.

(ii) For U.S. pension plans, debt instruments of $318 million are made up of $210 million in non-government debt instruments and $108 million in government fixed interest instruments. For non-U.S. pension plans, debt instruments of $1,581 million are made up of $810 million in government inflation-protected bonds, $451 million in government fixed interest instruments, $275 million in non-government debt instruments, and $45 million in asset-backed instruments.

There were no other postretirement plan assets as of December 31, 2025.


	Pension Plans
	Fair Values
in $ millions	2024
	U.S. Plans				Non-U.S. Plans
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Cash and cash equivalents	3	–	–	3	32	22	–	54
Equity instruments (i)	–	87	–	87	499	59	–	558
Debt instruments (ii)	–	326	–	326	1,226	211	–	1,437
Real estate	–	–	–	–	111	81	8	200
Derivatives	–	–	–	–	8	(23)	–	(15)
Investment funds	16	–	–	16	87	21	–	108
Assets held by insurance company	–	–	–	–	–	2	105	107
Other	–	–	2	2	3	3	8	14
Total	19	413	2	434	1,966	376	121	2,463

(i) For U.S. pension plans, equity instruments of $87 million are made up of $78 million in developed markets’ diversified equity instruments and $9 million in emerging markets’ diversified equity instruments. For non-U.S. pension plans, equity instruments of $558 million are made up of $521 million in developed markets’ diversified equity instruments and $37 million in emerging markets’ diversified equity instruments.

(ii) For U.S. pension plans, debt instruments of $326 million are made up of $226 million in non-government debt instruments and $100 million in government fixed interest instruments. For non-U.S. pension plans, debt instruments of $1,437 million are made up of $245 million in non-government debt instruments, $721 million in government fixed interest instruments, $434 million in government inflation-protected bonds and $37 million in asset-backed instruments.

There were no other postretirement plan assets as of December 31, 2024.

The Level 3 reconciliation for pension plans by asset class for the years ended December 31, 2025 and 2024 were:

U.S. Plans

in $ millions

Beginning balance on 1/1/2025

Actual return on plan assets, relating to assets still held at reporting date

Purchases, sales and settlements

Transfer out of Level 3

Change due to exchange rate changes

Ending balance on 12/31/2025

Asset Class

Other

–

Total

–


	Non-U.S. Plans
in $ millions	Beginning balance on 1/1/2025	Actual return on plan assets, relating to assets still held at reporting date	Purchases, sales and settlements	Transfer out of Level 3	Change due to exchange rate changes	Ending balance on 12/31/2025
Asset Class
Real estate	8	–	–	–	2	10

Assets held by insurance company	105	(4)	(6)	–	6	101
Other	8	1	–	–	1	10
Total	121	(3)	(6)	–	9	121

U.S. Plans

in $ millions

Beginning balance on 1/1/2024

Actual return on plan assets, relating to assets still held at reporting date

Purchases, sales and settlements

Transfer out of Level 3

Change due to exchange rate changes

Ending balance on 12/31/2024

Asset Class

Other

–

(2)

–

Total

–

(2)

–


	Non-U.S. Plans
in $ millions	Beginning balance on 1/1/2024	Actual return on plan assets, relating to assets still held at reporting date	Purchases, sales and settlements	Transfer out of Level 3	Change due to exchange rate changes	Ending balance on 12/31/2024
Asset Class
Real estate	14	–	(6)	–	–	8
Assets held by insurance company	117	6	(9)	–	(9)	105
Other	8	–	–	–	–	8
Total	139	6	(15)	–	(9)	121

The following is a description of the methods and assumptions used to estimate the fair value of the pension and other postretirement plans’ assets:

Cash and cash equivalents: Cash and all highly liquid securities with original maturities of three months or less are classified as Cash and cash equivalents, primarily consisting of cash deposits in interest-bearing accounts, time deposits and money market funds. These assets are classified as Level 1.

Equity instruments: Individual securities that are valued at the closing price or last trade reported on the major market on which they are traded are classed as Level 1. Commingled funds that are publicly traded are based upon market quotes and are classed as Level 1. The fair value of non-publicly traded funds are determined using the Net Asset Value (NAV) provided by the administrator and are classified as Level 2.

Debt instruments: The fair value is determined using market prices (Level 1) or prices derived from observable inputs (Level 2). Level 2 investments may also include commingled funds that have a readily determinable fair value based on observable prices of the underlying securities.

Real estate: Investments in real estate funds that are publicly traded are based upon market quotes and are classed as Level 1. Direct investments in real estate are classed as Level 2 and determined using the NAV provided by the administrator.

Assets held by insurance company: The fair value is based on negotiated value and the underlying investments held in separate account portfolios, as well as the consideration of the creditworthiness of the issuer. The underlying investments are primarily government, asset-backed and fixed income securities. Assets held by insurance company are generally classified as Level 2 or Level 3 depending on the structure of the contract/market pricing information.

The assumed healthcare cost trend rates as of December 31 were:


	2025		2024		2023
Healthcare cost trend rate assumed for next year	10.40	%	6.55	%	6.85	%
Rate to which the cost trend rate gradually declines	3.90	%	3.80	%	3.70	%
Year the rate reaches the ultimate rate	2060		2090		2090

The following table presents the expected future benefit payments to be made over the next 10 years:


	Pension plans		OPEB
in $ millions	U.S.	Non-U.S.
2026	38	137	6
2027	37	132	6
2028	37	132	6
2029	37	131	6
2030	36	132	7
2031-2035	174	665	35

The Company expects that it will contribute $12 million to the U.S. pension plans, $34 million to the non-U.S. pension plans and $6 million to the OPEB plans, including minimum funding payments, in 2026.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (p)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480266/715-60-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480794/715-70-50-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480482/715-20-55-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
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-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/715/tableOfContent

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

+ Details

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