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Pension and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
We maintain five funded pension plans, consisting of three in North America (one U.S. plan and two Canadian plans) and two in the United Kingdom. We also provide group medical insurance benefits, which vary by group and location, to certain retirees in North America. In connection with a revision to our retirement plan strategy, we have completed certain plan amendments and annuity purchases, as described below, intended to ultimately terminate and fully settle all five pension plans in accordance with applicable local regulatory requirements.
Both U.K. pension plans have been closed to new employees and future accruals. In the fourth quarter of 2022, we executed amendments to our North America pension plans, which, among other things, closed the cash balance portion of the U.S. plan that provided benefits based on years of service and interest credits, effective December 31, 2022, and established effective dates for each of the three North America plans to freeze future benefit accruals through the end of 2025. As a result, as of December 31, 2025, all of our North America plans are closed to new employees and future accruals.
In the third quarter of 2025, we amended two of our North America pension plans to terminate each plan effective December 31, 2025.
Purchase of Annuity Contracts in the United Kingdom
During the fourth quarter of 2025, the U.K. pension plan trustees purchased non-participating group buy-in annuity contracts from an insurance company for approximately $349 million. This transaction was funded directly by assets of the pension plans. Under the terms of the annuity contracts, the insurer makes periodic payments to the pension plans equal to the benefits covered by the contracts. The annuity contracts are recognized as plan assets and presented as “Buy-in annuity contracts” in the December 31, 2025 United Kingdom pension plan assets table, below.
Purchase of Annuity Contracts in Canada
For one of our Canadian plans, during the fourth quarter of 2025, we purchased a non-participating group buy-out annuity contract and transferred approximately $40 million, or 94%, of the plan’s liabilities to an insurance company. This transaction was funded with plan assets and reflected as “Pension annuity purchase” in the table below. Under the transaction, the insurance company assumed responsibility for pension benefits and annuity administration for over 200 participants, primarily retirees or their beneficiaries. As a result of this transaction, in the fourth quarter of 2025, we remeasured the plan’s projected benefit obligation and plan assets and recognized a non-cash pre-tax pension settlement loss of $1 million, reflecting the unamortized net unrecognized postretirement benefit costs related to the settled obligations, with a corresponding offset to accumulated other comprehensive loss. For the remaining portion of plan liabilities, we purchased a non-participating group buy-in annuity contract from the insurance company. Under the terms of the annuity contract, the insurer makes periodic payments to the plan equal to the benefits covered by the contract. This annuity contract is recognized as a plan asset and included in the line “Buy-in annuity contracts” in the December 31, 2025 North American pension plan assets table, below.
For the other Canadian pension plan, during the fourth quarter of 2025, we purchased a non-participating group buy-in annuity contract from the insurance company for approximately $60 million. This transaction was funded with plan assets. Under the terms of the annuity contract, the insurer makes periodic payments to the plan equal to the benefits covered by the contract. This annuity contract is recognized as a plan asset and included in the line “Buy-in annuity contracts” in the December 31, 2025 North American pension plan assets table, below.
Our plan assets, benefit obligations, funded status and amounts recognized on our consolidated balance sheets for our North America and United Kingdom plans as of the December 31 measurement date are as follows:
Pension PlansRetiree Medical Plans
 North AmericaUnited KingdomNorth America
December 31,December 31,December 31,
 202520242025202420252024
 (in millions)
Change in plan assets
Fair value of plan assets as of January 1$299 $313 $345 $360 $— $— 
Return on plan assets24 10 9 (7)— — 
Employer contributions(2)— 1 22 2 2 
Pension annuity purchase(39)— — — — — 
Benefit payments(14)(13)(24)(24)(2)(2)
Foreign currency translation5 (11)26 (6)— — 
Fair value of plan assets as of December 31273 299 357 345 — — 
Change in benefit obligation
Benefit obligation as of January 1(278)(292)(317)(367)(19)(20)
Service cost(4)(5)— — — — 
Interest cost(14)(13)(18)(16)(1)(1)
Benefit payments14 13 24 24 2 2 
Foreign currency translation(4)9 (24)5 — — 
Pension annuity purchase40 — — — — — 
Change in assumptions and other(18)10 — 37 (1)— 
Benefit obligation as of December 31(264)(278)(335)(317)(19)(19)
Funded status as of December 31$9 $21 $22 $28 $(19)$(19)
For our North America pension plans, the line titled “change in assumptions and other” for 2025 primarily reflects the impact of an increase in the U.S. plan’s projected benefit obligation to its estimated plan termination liability and, for 2024, primarily reflects the impact of gains due to the increase in discount rates, partially offset by the increase in the interest crediting rate for the cash balance portion of the U.S. plan. 
For our United Kingdom pension plans, the line titled “change in assumptions and other” for 2024 primarily reflects gains due to the increase in discount rates.
Amounts recognized on the consolidated balance sheets consist of the following:
Pension PlansRetiree Medical Plans
 North AmericaUnited KingdomNorth America
 December 31,December 31,December 31,
 202520242025202420252024
 (in millions)
Other assets$18 $21 $22 $28 $— $— 
Accounts payable and accrued expenses— — — — (2)(2)
Other current liabilities(9)— — — — — 
Other liabilities— — — — (17)(17)
$9 $21 $22 $28 $(19)$(19)
Pre-tax amounts recognized in accumulated other comprehensive loss consist of the following:
Pension PlansRetiree Medical Plans
 North AmericaUnited KingdomNorth America
 December 31,December 31,December 31,
 202520242025202420252024
 (in millions)
Prior service cost$— $— $1 $1 $— $— 
Net actuarial loss (gain)4 (3)94 71 (3)(5)
$4 $(3)$95 $72 $(3)$(5)
Net periodic benefit cost (income) and other amounts recognized in other comprehensive (income) loss for the years ended December 31 included the following:
 Pension PlansRetiree Medical Plans
North AmericaUnited KingdomNorth America
 202520242023202520242023202520242023
 (in millions)
Service cost$4 $5 $5 $— $— $— $— $— $— 
Interest cost14 13 13 18 16 16 1 1 1 
Expected return on plan assets(16)(16)(15)(27)(28)(25)— — — 
Settlement loss1 — — — — — — — — 
Amortization of actuarial gain— — — — — — — — (1)
Net periodic benefit cost (income)3 2 3 (9)(12)(9)1 1 — 
Net actuarial loss (gain) 8 (4)(6)17 (1)14 2 1 (2)
Settlement loss(1)— — — — — — — — 
Amortization of actuarial gain— — — — — — — — 1 
Total recognized in other comprehensive loss (income)7 (4)(6)17 (1)14 2 1 (1)
Total recognized in net periodic benefit cost (income) and other comprehensive loss (income)$10 $(2)$(3)$8 $(13)$5 $3 $2 $(1)
Service cost is recognized in cost of sales and selling, general and administrative expenses, and the other components of net periodic benefit cost are recognized in other non-operating—net in our consolidated statements of operations.    
The accumulated benefit obligation (ABO) in aggregate for the defined benefit pension plans in North America was approximately $264 million and $277 million as of December 31, 2025 and 2024, respectively. The ABO in aggregate for the defined benefit pension plans in the United Kingdom was approximately $335 million and $317 million as of December 31, 2025 and 2024, respectively. As of December 31, 2025, the ABO for all five of our defined benefit pension plans was equal to each plan’s projected benefit obligation (PBO) as all future benefit accruals were frozen on or before December 31, 2025.
The following table presents aggregated information for those individual defined benefit pension plans that have an ABO in excess of plan assets or a PBO in excess of plan assets as of December 31, which excludes four of the defined benefit pension plans in 2025, and for 2024, excludes all five of the defined benefit pension plans:
North AmericaUnited Kingdom
2025202420252024
 (in millions)
Accumulated benefit obligation$194 $— $— $— 
Projected benefit obligation194 — — — 
Fair value of plan assets185 — — — 
Our pension funding policy in North America is to contribute amounts sufficient to meet minimum legal funding requirements plus discretionary amounts that we may deem to be appropriate. Actual contributions may vary from estimated amounts depending on changes in assumptions, actual returns on plan assets, changes in regulatory requirements and funding decisions.
In accordance with United Kingdom pension legislation, our United Kingdom pension funding policy is to contribute amounts sufficient to meet the funding level target agreed between the employer and the trustees of the United Kingdom plans.  Actual contributions are usually agreed with the plan trustees in connection with each triennial valuation and may vary following each such review depending on changes in assumptions, actual returns on plan assets, changes in regulatory requirements and funding decisions. As a result of the buy-in annuity contracts purchased in the fourth quarter of 2025, as discussed above, revised agreements were executed with the plan trustees and cover contributions solely towards each plan’s administrative expenses payable from January 1, 2026 to December 31, 2030, as no additional funding contributions are expected. These administrative expenses are not expected to be material.
We currently estimate that our consolidated pension funding cash contributions for 2026 will be approximately $9 million consisting solely of estimated cash contributions for our U.S. pension plan.
The expected future benefit payments for our pension and retiree medical plans are as follows:
Pension PlansRetiree Medical Plans
North AmericaUnited KingdomNorth America
 (in millions)
2026(1)
$263 $26 $2 
2027— 27 2 
2028— 27 2 
2029— 28 2 
2030— 28 2 
2031-203510 153 6 
_______________________________________________________________________________
(1)As of December 31, 2025, the majority of expected future benefit payments for our North American pension plans are projected to occur in 2026 due to the effective plan termination on December 31, 2025 for two of our North American plans.

The following assumptions were used in determining the benefit obligations and expense:
Pension PlansRetiree Medical Plans
 North AmericaUnited KingdomNorth America
 202520242023202520242023202520242023
Weighted-average discount rate—obligation4.2 %5.2 %4.8 %5.5 %5.5 %4.6 %5.1 %5.4 %4.8 %
Weighted-average discount rate—expense5.2 %4.8 %5.1 %5.5 %4.6 %4.8 %5.4 %4.8 %5.0 %
Weighted-average cash balance interest crediting rate—obligation 3.8 %4.4 %3.9 %n/an/an/an/an/an/a
Weighted-average cash balance interest crediting rate—expense4.4 %3.9 %3.9 %n/an/an/an/an/an/a
Weighted-average rate of increase in future compensationn/a3.3 %3.3 %n/an/an/an/an/an/a
Weighted-average expected long-term rate of return on assets—expense5.1 %5.0 %4.8 %6.1 %6.5 %6.1 %n/an/an/a
Weighted-average retail price index—obligationn/an/an/a2.8 %3.1 %3.0 %n/an/an/a
Weighted-average retail price index—expensen/an/an/a3.1 %3.0 %3.2 %n/an/an/a
______________________________________________________________________________
n/a—not applicable
The discount rates for all plans are developed by plan using spot rates derived from a hypothetical yield curve of high quality (AA rated or better) fixed income debt securities as of the year-end measurement date to calculate discounted cash flows (the projected benefit obligation) and solving for a single equivalent discount rate that produces the same projected benefit obligation. In determining our benefit obligation, we use the actuarial present value of the vested benefits to which each eligible
employee is currently entitled, based on the employee’s expected date of separation or retirement. For the two North American plans with effective termination dates of December 31, 2025, the project benefit obligations were determined on a settlement basis taking into account the estimated plan termination liability.
Prior to December 31, 2025, the cash balance interest crediting rate for the U.S. plan was based on the greater of 10-year Treasuries or 3.0%. Given the pending plan termination, the interest crediting rate after the December 31, 2025 termination date is set at the 5-year average of the plan’s cash balance interest crediting rate prior to the plan termination date, which is the basis for the 2025 assumption of 3.8% shown in the table above.
For our North American plans, the expected long-term rate of return on assets is based on analysis of historical rates of return achieved by equity and non-equity investments and current market characteristics, adjusted for estimated plan expenses and weighted by target asset allocation percentages as applicable. As of January 1, 2026, our weighted-average expected long-term rate of return on assets for our North American plans is 4.5%, which will be used in determining net periodic benefit cost for our North American plans for 2026.
For our United Kingdom plans, the expected long-term rate of return on assets is based on the expected long-term performance of the underlying investments, adjusted for investment managers’ fees and estimated plan expenses. As of January 1, 2026, our weighted-average expected long-term rate of return on assets for our United Kingdom plans is 4.8%, which will be used in determining net periodic benefit cost for our United Kingdom plans for 2026.
The retail price index for our United Kingdom plans is developed using a U.K. Government Gilt Prices Only retail price inflation curve, which is based on the difference between yields on fixed interest government bonds and index-linked government bonds.
For the measurement of the benefit obligation at December 31, 2025 for our primary (U.S.) retiree medical benefit plans, the assumed health care cost trend rates, for pre-age 65 retirees, start with an 8.0% increase in 2026, followed by a gradual decline in increases to 4.5% for 2035 and thereafter. For post-age 65 retirees, the assumed health care cost trend rates start with a 9.3% increase in 2026, followed by a gradual decline in increases to 4.5% for 2035 and thereafter. For the measurement of the benefit obligation at December 31, 2024 for our primary (U.S.) retiree medical benefit plans, the assumed health care cost trend rates, for pre-age 65 retirees, started with an 8.4% increase in 2025, followed by a gradual decline in increases to 4.5% for 2034 and thereafter. For post-age 65 retirees, the assumed health care cost trend rates started with a 9.8% increase in 2025, followed by a gradual decline in increases to 4.5% for 2034 and thereafter.
The objectives of the investment policies governing the pension plans are to administer the assets of the plans for the benefit of the participants in compliance with all laws and regulations, and to establish an asset mix that provides for diversification and considers the risk of various different asset classes with the purpose of generating favorable investment returns. The investment policies consider circumstances such as participant demographics, time horizon to retirement and liquidity needs, and provide guidelines for asset allocation, planning horizon, general portfolio issues and investment manager evaluation criteria. The investment strategies for the plans, including target asset allocations and investment vehicles, are subject to change within the guidelines of the policies. As a result of revisions to our retirement plan strategies, our plan assets and investment strategies were updated in the fourth quarter of 2025.
For our U.S. pension plan, the target asset allocation is 100% non-equity, which is generally determined based on analysis of actual historical rates of return and plan needs and circumstances. These investments consist primarily of money market instruments and investments in debt securities that are selected based on investment quality and duration to mitigate volatility of the funded status and annual required contributions. The non-equity investments have a duration profile that is similar to the benefit obligation in order to mitigate the impact of interest rate changes on the funded status. This investment strategy is achieved through the use of mutual funds and individual securities.
The plan assets for our Canadian plans and our United Kingdom plans primarily consist of non-participating group buy-in annuity contracts, as described above. These buy-in annuity contracts are effectively investment assets through which the plans receive payments from the insurers that correspond to the pension benefit payments due to covered participants of the plans. Because the buy-in annuity contracts represent large, illiquid assets for which valuation inputs are unobservable and significant judgment is required in developing assumptions that market participants would use in pricing the assets, they are classified as Level 3 investments within the fair value hierarchy, as reflected in the tables below.
Prior to the purchase of the buy-in annuity contracts in the fourth quarter of 2025, the target asset allocation for our Canadian plans was 100% non-equity, achieved through the use of individual securities. The investments consisted primarily of investments in debt securities selected based on investment quality and duration to mitigate volatility of the funded status and annual required contributions.
Prior to the purchase of the buy-in annuity contracts in the fourth quarter of 2025, assets of the United Kingdom plans were invested in pooled funds managed by an investment manager appointed by the trustees. The assets were allocated between a growth portfolio and a matching portfolio. The growth portfolio sought a return premium on investments across multiple asset classes. The matching portfolio sought to align asset changes with changes in liabilities due to interest rates and inflation expectations. In 2024, the target asset allocation for one of the United Kingdom plans was 25% in the growth portfolio and 75% in the matching portfolio, and 30% in the growth portfolio and 70% in the matching portfolio for the other.
The fair values of our pension plan assets as of December 31, 2025 and 2024, by major asset class, are as follows:
 North America
December 31, 2025
Total Fair
Value		Quoted
Prices in
Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
 (in millions)
Cash and cash equivalents(1)
$99 $— $99 $— 
Short-term investments(2)
25 — 25 — 
Buy-in annuity contracts(3)
63 — — 63 
Fixed income    
U.S. Treasury bonds and notes(4)
12 12 — — 
    Fixed income mutual funds(5)
33 33 — — 
Corporate bonds and notes(6)
35 — 35 — 
Government and agency securities(7)
2 — 2 — 
Other(8)
4 — 4 — 
Total assets at fair value by fair value levels$273 $45 $165 $63 
 United Kingdom
December 31, 2025
Total Fair
Value		Quoted
Prices in
Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
 (in millions)
Cash and cash funds(9)
$4 $3 $1 $— 
Buy-in annuity contracts(3)
352 — — 352 
Total assets at fair value by fair value levels$356 $3 $1 $352 
Funds measured at NAV as a practical expedient(10)
1 
Total assets at fair value$357 
 North America
December 31, 2024
 Total Fair
Value		Quoted
Prices in
Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
 (in millions)
Cash and cash equivalents(1)
$2 $1 $1 $— 
Equity mutual funds
Index equity(11)
41 41 — — 
Fixed income
U.S. Treasury bonds and notes(4)
14 14 — — 
Fixed income mutual funds(5)
42 42 — — 
Corporate bonds and notes(6)
100 — 100 — 
Government and agency securities(7)
90 — 90 — 
Other(8)
10 — 10 — 
Total assets at fair value by fair value levels$299 $98 $201 $— 
 United Kingdom
December 31, 2024
 Total Fair
Value		Quoted
Prices in
Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
 (in millions)
Cash and cash funds(9)
$2 $1 $1 $— 
Pooled equity funds(12)
14 — 14 — 
Pooled diversified funds(13)
31 — 31 — 
Debt funds
Pooled U.K. government fixed and index-linked securities funds(14)
78 — 78 — 
Pooled global debt funds(15)
124 — 124 — 
Pooled liability-driven investment funds(16)
52 — 52 — 
Total assets at fair value by fair value levels$301 $1 $300 $— 
Funds measured at NAV as a practical expedient(10)
43 
Total assets at fair value$344 
Receivable from redemption1 
Total assets$345 
_______________________________________________________________________________
(1)Cash and cash equivalents are primarily short-term money market funds.
(2)Short-term investments represent investments in a pooled money market fund that invests primarily in Canadian-dollar denominated debt securities, maturing in no more than one year.
(3)The fair values of the buy-in annuity contracts are estimated based on their exit price, that is, the amount at which the contracts could be sold to a willing third-party buyer.
(4)U.S. Treasury bonds and notes are valued based on quoted market prices in an active market.
(5)The fixed income mutual funds invest primarily in high-quality longer duration fixed income securities, which include bonds, debt securities and other similar instruments. The funds are priced based on a daily published net asset value (NAV).
(6)Corporate bonds and notes, including private placement securities, are valued by institutional bond pricing services, which gather information from market sources and integrate credit information, observed market movements and sector news into their pricing applications and models.
(7)Government and agency securities consist of U.S. municipal bonds and for 2024 only, Canadian provincial bonds. These securities are valued by institutional bond pricing services, which gather information on current trading activity, market movements, trends, and specific data on specialty issues.
(8)Other includes primarily mortgage-backed, asset-backed securities and U.S. Treasury strips. Mortgage-backed and asset-backed securities are valued by institutional pricing services, which gather information from market sources and integrate credit information, observed market movements and sector news into their pricing applications and models. U.S. Treasury strips are valued using stripped interest and stripped principal yield curves based on data obtained from various dealer contacts and live data sources.
(9)Cash and cash funds include a cash fund that invests primarily in short-dated money market instruments.
(10)Funds measured at NAV as a practical expedient as of December 31, 2025 include a fund of funds that invests primarily in freehold and leasehold property in the United Kingdom. Funds measured at NAV as a practical expedient as of December 31, 2024 include funds of funds with return strategies that provide exposure to various asset classes and credit strategies, as well as alternative investment strategies that may include multi-asset credit strategies, global macro strategies, commodities, fixed income, equities and currency, and funds that invest primarily in freehold and leasehold property in the United Kingdom. The valuation of the funds is based on NAV determined by the fund managers using the value of the underlying assets.
(11)The index equity funds are mutual funds that utilize a passively managed investment approach designed to track specific equity indices. They were valued at quoted market prices in an active market, which represented the NAVs of the shares held by the plan.
(12)Pooled equity funds invest in a broad array of global equity, equity-related securities, a range of diversifiers and may use derivatives for efficient portfolio management. The funds were valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund.
(13)Pooled diversified funds invest in a broad array of asset classes and a range of diversifiers including the use of derivatives. The funds were valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund.
(14)Pooled U.K. government fixed and index-linked securities funds invest primarily in Sterling denominated fixed income and inflation-linked fixed income securities issued or guaranteed by the U.K. government and may use derivatives for efficient portfolio management. The funds were valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund.
(15)Pooled global debt funds invest in a broad array of debt securities from corporate and government bonds to emerging markets and high-yield fixed and floating rate securities of varying maturities and may use derivatives for efficient portfolio management. The funds were valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund.
(16)Pooled liability-driven investment funds primarily invest, either through a sub-fund or directly, in gilt repurchase agreements, physical U.K. government gilts, other inflation-linked fixed income securities, and derivatives to provide exposure to interest rates and inflation, thus hedging these elements of risk associated with pension liabilities. The funds were valued at NAV as determined by the fund managers based on the value of the underlying net assets of the fund.

We have defined contribution plans covering substantially all employees in North America and the United Kingdom. Depending on the specific provisions of each plan, qualified employees receive company contributions based on a percentage of base salary or base salary and incentive pay, matching of employee contributions up to specified limits, or a combination of both. In 2025, 2024 and 2023, we recognized expense related to our contributions to the defined contribution plans of $41 million, $37 million and $34 million, respectively.
In addition to our qualified defined benefit pension plans, we also maintain certain nonqualified supplemental pension plans for highly compensated employees as defined under federal law. The amounts recognized in accrued expenses and other liabilities in our consolidated balance sheets for these plans were $1 million and $9 million, respectively, as of December 31, 2025, and $1 million and $9 million, respectively, as of December 31, 2024. We recognized expense for these plans of $1 million in each of the years ended December 31, 2025, 2024 and 2023.