v3.25.4
Pension, Savings and Other Postretirement Benefit Plans
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Pension, Savings and Other Postretirement Benefit Plans Pension, Savings and Other Postretirement Benefit Plans
We provide employees with defined benefit pension or defined contribution savings plans. Our hourly U.S. pension plans are frozen, except for certain grandfathered participants in the Cooper Tire hourly pension plans who continue to accrue benefits, and provide benefits based on length of service. The principal salaried U.S. pension plan is frozen and provides benefits based on compensation and length of service. Salaried employees who made voluntary contributions to this plan receive higher benefits. We also provide certain U.S. employees and employees at certain non-U.S. subsidiaries with health care benefits or life insurance benefits upon retirement. Substantial portions of retiree health care benefits are not insured and are funded from operations.
During 2025, we recognized pension settlement charges of $201 million in Other (Income) Expense. The settlement charges resulted from total lump sum payments exceeding annual service and interest cost of the applicable plans, primarily related to the offer of lump sum payments over a limited time to certain active and former employees in the U.S. defined benefit pension plans and the purchase of a group annuity contract for certain former employees in the U.S. hourly defined benefit pension plan. A total of $126 million in payments related to the offer of lump sum payments and $142 million for the purchase of a group annuity contract were made from existing plan assets during 2025. In addition, net termination benefits/curtailment charges of $4 million and $1 million were recorded related to the exit of employees under approved rationalization plans and the sale of the OTR tire business, respectively.
During 2024, we recognized a net pension settlement credit of $3 million in Other (Income) Expense, primarily related to a premium refund from the purchase of a group annuity contract for the Cooper Tire U.S. salaried defined benefit pension plan described below. Excess plan assets of $5 million from the plan were used to fund obligations associated with our U.S. salaried defined contribution savings plan.
During 2023, we recognized pension settlement charges of $40 million in Other (Income) Expense, primarily related to the settlement of all plan benefits of the Cooper Tire U.S. salaried defined benefit pension plan with lump sum payments to electing participants and the purchase of a group annuity contract. After settlement, excess plan assets of $18 million were used to fund obligations associated with our U.S. salaried defined contribution savings plan. During 2023, we recognized termination benefits charges of $1 million in Rationalizations related to the closure of our Fulda, Germany tire manufacturing facility.
Our U.K. pension plan obligations include approximately $27 million at December 31, 2025, to recognize the impact to our plans from court rulings in 2018 and later, involving a plan with similar features to ours that was sponsored by another company, that required equal guaranteed minimum pension benefits for males and females. The total amount recognized includes an estimated $7 million related to benefits for certain participants that are still subject to finalization of plan amendments. These amounts have been recognized in AOCL, including $1 million of actuarial losses in both 2025 and 2024, from agreements with the plan trustees on implementation of changes for certain participants in our U.K. pension plans.
Total benefits cost (credit) and amounts recognized in other comprehensive (income) loss follows:
Pension Plans
U.S.Non-U.S.Other Postretirement Benefits
(In millions)202520242023202520242023202520242023
Benefits cost (credit):
Service cost$6 $7 $8 $15 $19 $18 $1 $2 $2 
Interest cost158 174 195 103 105 108 13 15 16 
Expected return on plan assets(198)(208)(231)(93)(91)(92)— — — 
Amortization of prior service cost (credit)
— — — 2 2 2 (7)(2)(1)
Amortization of net losses (gains)
94 97 98 21 20 16 (8)(9)(9)
Net periodic cost (credit)$60 $70 $70 $48 $55 $52 $(1)$6 $8 
Net curtailments/settlements/termination benefits208 (3)34 (1)— 7 (1)— — 
Total benefits cost (credit)$268 $67 $104 $47 $55 $59 $(2)$6 $8 
Recognized in other comprehensive (income) loss before tax and minority:
Prior service cost (credit) from plan amendments
$— $(3)$— $— $— $— $— $(28)$— 
Increase (decrease) in net actuarial losses
54 40 40 30 (15)120 2 (9)1 
Amortization of prior service credit (cost) in net periodic cost
— — — (2)(2)(2)7 3 1 
Amortization of net (losses) gains in net periodic cost
(94)(97)(98)(20)(20)(16)8 8 9 
Immediate recognition of prior service cost and unrecognized gains and losses due to curtailments, settlements, and divestitures(201)3 (34)2 — (13)— — — 
Total recognized in other comprehensive (income) loss before tax and minority
$(241)$(57)$(92)$10 $(37)$89 $17 $(26)$11 
Total recognized in total benefits cost (credit) and other comprehensive loss (income) before tax and minority
$27 $10 $12 $57 $18 $148 $15 $(20)$19 
Service cost is recorded in CGS or SAG. Other components of net periodic cost are recorded in Other (Income) Expense. Net curtailments, settlements and termination benefits are recorded in Other (Income) Expense or Rationalizations if related to a rationalization plan.
We use the fair value of pension assets in the calculation of pension expense for all plans.
Total benefits (credit) cost for our other postretirement benefits was $(3) million, $3 million and $5 million for our U.S. plans in 2025, 2024 and 2023, respectively, and $1 million, $3 million and $3 million for our non-U.S. plans in 2025, 2024 and 2023, respectively.
During 2024, we approved changes to one of our U.S. other postretirement benefit plans, effective January 1, 2025, which resulted in a $28 million reduction of our U.S. other postretirement benefit obligation.
The Medicare Prescription Drug Improvement and Modernization Act provides plan sponsors a federal subsidy for certain qualifying prescription drug benefits covered under the sponsor’s postretirement health care plans. Our other postretirement benefits cost is presented net of this subsidy, which is less than $1 million annually.
The change in benefit obligation and plan assets for 2025 and 2024 and the amounts recognized in our Consolidated Balance Sheets at December 31, 2025 and 2024 are as follows:
Pension Plans
U.S.Non-U.S.Other Postretirement Benefits
(In millions)202520242025202420252024
Change in benefit obligation:
Beginning balance$(3,380)$(3,659)$(2,111)$(2,392)$(232)$(287)
Service cost — benefits earned(6)(7)(15)(19)(1)(2)
Interest cost
(158)(174)(103)(105)(13)(15)
Plan amendments— 3 — — — 28 
Actuarial (loss) gain
(96)107 48 131 (4)11 
Participant contributions— — (2)(3)(6)(6)
Curtailments/settlements/
termination benefits		369 13 4 12 1 — 
Divestitures— — 9 — — — 
Foreign currency translation— — (166)105 (6)8 
Benefit payments307 337 157 160 30 31 
Ending balance$(2,964)$(3,380)$(2,179)$(2,111)$(231)$(232)
Change in plan assets:
Beginning balance$3,447 $3,724 $1,906 $2,146 $— $— 
Actual return on plan assets240 61 52 (49)— — 
Company contributions to plan assets— (5)24 31 — — 
Cash funding of direct participant payments37 17 22 26 24 25 
Participant contributions— — 2 3 6 6 
Settlements(376)(13)(5)(12)— — 
Divestitures— — (14)— — — 
Foreign currency translation— — 134 (79)— — 
Benefit payments(307)(337)(157)(160)(30)(31)
Ending balance$3,041 $3,447 $1,964 $1,906 $— $— 
Funded status at end of year$77 $67 $(215)$(205)$(231)$(232)
Significant actuarial gains or losses related to changes in benefit obligations for 2025 and 2024 primarily resulted from changes in discount rates.
Other postretirement benefits unfunded status was $148 million and $153 million for our U.S. plans at December 31, 2025 and 2024, respectively, and $83 million and $79 million for our non-U.S. plans at December 31, 2025 and 2024, respectively.
The funded status at December 31 recognized in the Consolidated Balance Sheets consists of:
Pension PlansOther Postretirement
Benefits
U.S.Non-U.S.
(In millions)202520242025202420252024
Noncurrent assets$117 $140 $186 $182 $— $— 
Current liabilities(4)(38)(24)(25)(21)(22)
Noncurrent liabilities(36)(35)(377)(362)(210)(210)
Net amount recognized$77 $67 $(215)$(205)$(231)$(232)
The amounts recorded in AOCL at December 31, net of tax and minority interest, consist of:
Pension Plans
U.S.Non-U.S.Other Postretirement Benefits
(In millions)202520242025202420252024
Prior service cost (credit)$— $— $17 $17 $(22)$(29)
Net actuarial loss (gain)1,449 1,690 502 492 (76)(86)
Gross amount recorded1,449 1,690 519 509 (98)(115)
Deferred income taxes118 118 (65)(64)5 4 
Minority shareholders’ equity— — (1)(2)— — 
Net amount recorded$1,567 $1,808 $453 $443 $(93)$(111)
The following table presents significant weighted average assumptions used to determine benefit obligations at December 31:
Pension PlansOther Postretirement Benefits
2025202420252024
Discount rate:
—U.S.5.19%5.55%5.29%5.62%
—Non-U.S.5.034.886.296.32
Rate of compensation increase:
—U.S.N/AN/AN/AN/A
—Non-U.S.2.862.85N/AN/A
The following table presents significant weighted average assumptions used to determine benefits cost for the years ended December 31:
Pension PlansOther Postretirement Benefits
202520242023202520242023
Discount rate for determining interest cost:
—U.S.5.06 %5.07 %5.34 %5.29 %5.08 %5.37 %
—Non-U.S.4.90 4.19 4.72 7.32 8.04 7.64 
Expected long term return on plan assets:
—U.S.6.20 5.95 6.27 N/AN/AN/A
—Non-U.S.5.21 4.63 4.79 N/AN/AN/A
Rate of compensation increase:
—U.S.N/AN/AN/AN/AN/AN/A
—Non-U.S.2.85 2.82 2.84 N/AN/AN/A
For 2025, a weighted average discount rate of 5.06% was used to determine interest cost for the U.S. pension plans. This rate was derived from spot rates along a yield curve developed from a portfolio of corporate bonds from issuers rated AA or higher by established rating agencies as of December 31, 2024, applied to our expected benefit payment cash flows. For
our non-U.S. locations, a weighted average discount rate of 4.90% was used. This rate was developed based on the nature of the liabilities and local environments, using available bond indices, yield curves, projected cash flows, and long term inflation.
For 2025, an assumed weighted average long term rate of return of 6.20% was used for the U.S. pension plans. In developing the long term rate of return, we evaluated input from our pension fund consultant on asset class return expectations, including determining the appropriate rate of return for our plans, which are substantially invested in fixed income securities. For our non-U.S. locations, an assumed weighted average long term rate of return of 5.21% was used. Input from local pension fund consultants concerning asset class return expectations and long term inflation form the basis of this assumption.
The U.S. pension plan mortality assumption is based on our actual historical experience or published actuarial tables, and expected future mortality improvements based on published actuarial tables. For our non-U.S. locations, mortality assumptions are based on published actuarial tables which include projections of future mortality improvements.
The following table presents estimated future benefit payments from the plans as of December 31, 2025. Benefit payments for other postretirement benefits are presented net of retiree contributions and Medicare Part D Subsidy Receipts:
Pension PlansOther
Postretirement
Benefits
(In millions)U.S.Non-U.S.
2026$335 $164 $21 
2027305 153 20 
2028294 153 20 
2029289 160 20 
2030270 158 19 
2031-20351,185 830 91 
The following table presents selected information on our pension plans at December 31:
U.S.Non-U.S.
(In millions)2025202420252024
All plans:
Accumulated benefit obligation$2,958 $3,374 $2,133 $2,062 
Plans not fully-funded:
Projected benefit obligation$208 $72 $545 $515 
Accumulated benefit obligation202 66 513 482 
Fair value of plan assets169 — 144 130 
Certain non-U.S. subsidiaries maintain unfunded pension plans consistent with local practices and requirements. At December 31, 2025, these plans accounted for $187 million of our accumulated pension benefit obligation, $216 million of our projected pension benefit obligation, and $11 million of our AOCL adjustment. At December 31, 2024, these plans accounted for $168 million of our accumulated pension benefit obligation, $197 million of our projected pension benefit obligation, and $15 million of our AOCL adjustment.
We expect to contribute $25 million to $50 million to our funded pension plans in 2026.
Assumed health care cost trend rates at December 31 follow:
20252024
Health care cost trend rate assumed for the next year7.00 %6.50 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)5.0 5.0 
Year that the rate reaches the ultimate trend rate2034 2031 
Our pension plan weighted average investment allocation at December 31, by asset category, follows:
U.S.Non-U.S.
2025202420252024
Cash and short term securities— %— %3 %2 %
Equity securities2 2 4 5 
Debt securities98 98 90 90 
Alternatives— — 3 3 
Total100 %100 %100 %100 %
Our pension investment policies recognize the long-term nature of pension liabilities, and are primarily designed to offset the future impact of discount rate movements on the funded status for our plans, with target return-seeking allocations based upon given funded ratio levels. All assets are managed externally according to target asset allocation guidelines we have established. Manager guidelines prohibit the use of any type of investment derivative without our prior approval. Portfolio risk is controlled by having managers comply with guidelines, establishing the maximum size of any single holding in their portfolios, and using managers with different investment styles. We periodically undertake asset and liability modeling studies to determine the appropriateness of the investments.
The portfolio of our U.S. pension plan assets includes holdings of global high quality and high yield fixed income securities, short term interest bearing deposits, and private credit and equity securities. The target asset allocation of our U.S. pension plans is 94% in duration-matched fixed income securities and 6% in private credit and equity securities. Actual U.S. pension fund asset allocations are reviewed on a periodic basis and the pension funds are rebalanced to target ranges on an as needed basis.
The portfolios of our non-U.S. pension plans include holdings of global high quality and high yield fixed income securities, U.S. and non-U.S. equities, real estate funds, insurance contracts, repurchase agreements, and short term interest bearing deposits. The weighted average target asset allocation of the non-U.S. pension funds is approximately 90% in fixed income securities and 10% in cash, equities and real estate funds.
The fair values of our pension plan assets at December 31, 2025 by asset category are as follows:
U.S.Non-U.S
(In millions)TotalQuoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Other
Unobservable
Inputs
(Level 3)		TotalQuoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Other
Unobservable
Inputs
(Level 3)
Cash and Short Term Securities$7 $— $7 $— $42 $39 $3 $— 
Equity Securities
Common and Preferred Stock— — — — 1 1 — — 
Commingled Funds— — — — 7 7 — — 
Mutual Funds— — — — 29 29 — — 
Debt Securities
Corporate Bonds1,886 — 1,886 — 194 — 194 — 
Government Bonds609 — 609 — 1,501 59 1,442 — 
Repurchase Agreements— — — — (366)— (366)— 
Asset Backed Securities198 — 198 — 23 — 23 — 
Commingled Funds— — — — 16 16 — — 
Mutual Funds— — — — 42 42 — — 
Alternatives
Commingled Funds— — — — 2 2 — — 
Insurance Contracts1 — — 1 24 — — 24 
Derivatives9 — 9 — 8 — 8 — 
Mutual Funds— — — — 7 7 — — 
Total Investments in the Fair Value Hierarchy2,710 $— $2,709 $1 1,530 $202 $1,304 $24 
Investments Measured at Net Asset Value, as Practical Expedient:
Equity Securities
Commingled Funds— 28 
Mutual Funds— 5 
Partnership Interests58 — 
Debt Securities
Commingled Funds56 336 
Mutual Funds14 39 
Partnership Interests120 5 
Short Term Securities
Commingled Funds88 25 
Alternatives
Commingled Funds— 22 
Total Investments3,046 1,990 
Other(5)(26)
Total Plan Assets$3,041 $1,964 
The fair values of our pension plan assets at December 31, 2024 by asset category are as follows:
U.S.Non-U.S
(In millions)TotalQuoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Other
Unobservable
Inputs
(Level 3)		TotalQuoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Other
Unobservable
Inputs
(Level 3)
Cash and Short Term Securities$3 $— $3 $— $34 $32 $2 $— 
Equity Securities
Common and Preferred Stock— — — — 1 1 — — 
Commingled Funds— — — — 7 7 — — 
Mutual Funds— — — — 50 27 23 — 
Debt Securities
Corporate Bonds2,003 — 2,003 — 193 — 193 — 
Government Bonds654 — 654 — 1,475 54 1,421 — 
Repurchase Agreements— — — — (425)— (425)— 
Asset Backed Securities193 — 193 — 17 — 17 — 
Commingled Funds— — — — 16 16 — — 
Mutual Funds— — — — 38 38 — — 
Alternatives
Commingled Funds— — — — 1 1 — — 
Insurance Contracts1 — — 1 23 — — 23 
Derivatives7 — 7 — — — — — 
Mutual Funds— — — — 1 1 — — 
Total Investments in the Fair Value Hierarchy2,861 $— $2,860 $1 1,431 $177 $1,231 $23 
Investments Measured at Net Asset Value, as Practical Expedient:
Equity Securities
Commingled Funds— 31 
Mutual Funds— 4 
Partnership Interests77 — 
Debt Securities
Commingled Funds210 363 
Mutual Funds75 40 
Partnership Interests131 14 
Short Term Securities
Commingled Funds101 8 
Alternatives
Commingled Funds— 21 
Partnership Interests— 11 
Total Investments3,455 1,923 
Other(8)(17)
Total Plan Assets$3,447 $1,906 
At December 31, 2025 and 2024, the Plans did not directly hold any of our common stock.
The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement. Investments that are measured at Net Asset Value ("NAV") as a practical expedient to estimate fair value are not classified in the fair value hierarchy. Under the practical expedient approach, the NAV is based on the fair value of the underlying investments held by each fund less its liabilities. This practical expedient would not be used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total plan assets. Valuation methodologies used for assets and liabilities measured at fair value are as follows:
•Cash and Short Term Securities: Cash and cash equivalents consist of U.S. and foreign currencies. Foreign currencies are reported in U.S. dollars based on currency exchange rates readily available in active markets. Short term securities held in commingled funds are valued at the NAV of units held at year end, as determined by the investment manager.
•Equity Securities: Common and preferred stock, which are held in non-U.S. companies, are valued at the closing price reported on the active market on which the individual securities are traded. Commingled funds are primarily valued at the NAV of units held at year end, as determined by a pricing vendor or the fund family. Mutual funds are valued at the NAV of shares held at year end, as determined by the closing price reported on the active market on which the individual securities are traded, or a pricing vendor or the fund family if an active market is not available. Partnership interests in private equity securities are priced based on valuations using the partnership’s latest available financial statements and the plan's percent ownership, adjusted for any cash transactions which occurred between the date of those financial statements and our year end.
•Debt Securities: Corporate and government bonds, including asset backed securities, are valued at the closing price reported on the active market on which the individual securities are traded, or based on institutional bid evaluations using proprietary models if an active market is not available. Repurchase agreements are valued at the contract price plus accrued interest. These secured borrowings are collateralized by government bonds held by the non-U.S. plans and have maturities less than one year. Commingled funds are primarily valued at the NAV of units held at year end, as determined by a pricing vendor or the fund family. Mutual funds are valued at the NAV of shares held at year end, as determined by the closing price reported on the active market on which the individual securities are traded, or a pricing vendor or the fund family if an active market is not available. Partnership interests in private credit securities are priced based on valuations using the partnership’s latest available financial statements and the plan's percent ownership, adjusted for any cash transactions which occurred between the date of those financial statements and our year end.
•Alternatives: Commingled and mutual funds, which primarily consist of real estate funds, are valued based on the NAV as determined by the fund manager using the most recent financial information available, or the closing price on the active market on which the individual securities are traded, if an active market is available. Partnership interests are invested in real estate and priced based on valuations using the partnership's latest available financial statements and the plan's percent ownership, adjusted for any cash transactions which occurred between the date of those financial statements and our year end. Other investments primarily include derivative financial instruments, which are valued using independent pricing sources which utilize industry standard derivative valuation models. Directed insurance contracts are valued as reported by the issuer, based on discounted cash flows using a weighted average discount rate of 3.1% and 3.2% at December 31, 2025 and 2024, respectively.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following table sets forth a summary of changes in fair value of the non-U.S. pension plan insurance contracts classified as Level 3:
(In millions)20252024
Balance, beginning of year$23 $21 
Purchases, sales, issuance and settlements (net)— 2 
Unrealized gains relating to instruments still held at the reporting date(1)1 
Foreign currency translation2 (1)
Balance, end of year$24 $23 
Savings Plans
Substantially all employees in the U.S. and employees of certain non-U.S. locations are eligible to participate in defined contribution savings plans. Expenses recognized for contributions to these plans were $118 million, $134 million and $131 million for 2025, 2024 and 2023, respectively.