v3.25.2
Retirement Benefits
 6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees. The Company’s policy for funding its tax-qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth by U.S. law and the laws of the non-U.S. jurisdictions in which the Company offers defined benefit plans.
The weighted average actuarial assumptions utilized to calculate the net periodic benefit cost or credit for the U.S. and significant non-U.S. defined benefit plans are as follows:
Combined U.S. and significant non-U.S. PlansPension Benefits
June 30,20252024
Weighted average assumptions:
Discount rate5.36 %4.95 %
Expected return on plan assets5.43 %5.44 %
Rate of compensation increase *3.16 %3.16 %
(*)There are no rate of compensation increase assumptions for the primary U.S. defined benefit plans since future benefit accruals were discontinued for those plans after December 31, 2016 and earned benefits are not subject to final salary level adjustments.
The target asset allocation for the U.S. plans is 50% equities and equity alternatives, and 50% fixed income. At June 30, 2025, the actual allocation for the U.S. plans was 51% equities and equity alternatives, and 49% fixed income. The target allocation for the U.K. plans at June 30, 2025 is 12% equities and equity alternatives, and 88% fixed income. At June 30, 2025, the actual allocation for the U.K. plans was 9% equities and equity alternatives and 91% fixed income. The Company's U.K. plans comprised approximately 78% of non-U.S. plan assets at December 31, 2024. The assets of the Company's defined benefit plans are diversified and are managed in accordance with applicable laws and with the goal of maximizing the plans' real return within acceptable risk parameters. The Company uses threshold-based portfolio re-balancing to ensure the actual portfolio remains consistent with target asset allocation ranges.
The net benefit cost or credit of the Company's defined benefit plans is measured on an actuarial basis using various methods and assumptions.
The components of the net benefit credit for defined benefit plans are as follows:
Combined U.S. and significant non-U.S. Plans
For the Three Months Ended June 30,
Pension Benefits
(In millions)20252024
Service cost$7 $6 
Interest cost149 144 
Expected return on plan assets(212)(216)
Amortization of prior service (credit) cost — 1 
Recognized actuarial loss11 7 
Net periodic benefit credit$(45)$(58)
Settlement loss5 — 
Net benefit credit$(40)$(58)
Combined U.S. and significant non-U.S. Plans
For the Six Months Ended June 30,
Pension Benefits
(In millions)20252024
Service cost$13 $12 
Interest cost294 288 
Expected return on plan assets(416)(435)
Amortization of prior service (credit) cost — 1 
Recognized actuarial loss21 15 
Net periodic benefit credit$(88)$(119)
Settlement loss10 — 
Net benefit credit$(78)$(119)
The following tables provide the amounts reported in the consolidated statements of income:
Combined U.S. and significant non-U.S. Plans
For the Three Months Ended June 30,
Pension Benefits
(In millions)20252024
Compensation and benefits expense$7 $6 
Other net benefit credits (a) (47)(64)
Net benefit credit$(40)$(58)
(a)For the three months ended June 30, 2025, the Company recorded $1 million of net benefit cost related to the post-retirement plans.
Combined U.S. and significant non-U.S. Plans
For the Six Months Ended June 30,
Pension Benefits
(In millions)20252024
Compensation and benefits expense$13 $12 
Other net benefit credits (91)(131)
Net benefit credit$(78)$(119)
The components of the net benefit credit for the U.S. defined benefit plans are as follows:
U.S. Plans only
For the Three Months Ended June 30,
Pension Benefits
(In millions)20252024
Interest cost$63 $63 
Expected return on plan assets(73)(75)
Recognized actuarial loss 6 5 
Net periodic benefit credit$(4)$(7)
Settlement loss1 — 
Net benefit credit$(3)$(7)
U.S. Plans only
For the Six Months Ended June 30,
Pension Benefits
(In millions)20252024
Interest cost$127 $125 
Expected return on plan assets(146)(151)
Recognized actuarial loss 12 10 
Net periodic benefit credit$(7)$(16)
Settlement loss1 — 
Net benefit credit$(6)$(16)
The components of the net benefit credit for the non-U.S. defined benefit plans are as follows:
Significant non-U.S. Plans only
For the Three Months Ended June 30,
Pension Benefits
(In millions)20252024
Service cost$7 $6 
Interest cost86 81 
Expected return on plan assets(139)(141)
Amortization of prior service credit— 1 
Recognized actuarial loss5 2 
Net periodic benefit credit$(41)$(51)
Settlement loss4 — 
Net benefit credit$(37)$(51)
Significant non-U.S. Plans only
For the Six Months Ended June 30,
Pension Benefits
(In millions)20252024
Service cost$13 $12 
Interest cost167 163 
Expected return on plan assets(270)(284)
Amortization of prior service credit— 1 
Recognized actuarial loss9 5 
Net periodic benefit credit$(81)$(103)
Settlement loss9 — 
Net benefit credit$(72)$(103)
The Company made contributions to its U.S. and non-U.S. defined benefit pension plans for the three and six months ended June 30, 2025 of approximately $17 million and $35 million, respectively, compared to contributions of $27 million and $51 million, respectively, for the corresponding periods in the prior year. The Company expects to contribute approximately $45 million to its U.S. and non-U.S. defined benefit pension plans during the remainder of 2025.
Defined Contribution Plans
The Company maintains defined contribution plans ("DC Plans") for its employees, the most significant being in the U.S. and the U.K. The cost of the U.S. DC Plans for the three and six months ended June 30, 2025 was $52 million and $108 million, respectively, and $48 million and $97 million, respectively, for the corresponding periods in the prior year. The cost of the U.K. DC Plans for the three and six months ended June 30, 2025 was $42 million and $98 million, respectively, and $39 million and $91 million, respectively, for the corresponding periods in the prior year.