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RETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
RETIREMENT BENEFITS RETIREMENT BENEFITS
BMS sponsors defined benefit pension plans, defined contribution plans and termination indemnity plans for certain employees.

Defined Benefit Pension Plans

The net periodic benefit cost of defined benefit pension plans was $28 million, $15 million, and $11 million during the years ended December 31, 2025, 2024 and 2023, respectively. In addition, pension settlement charges of $119 million were recorded in 2024 in connection with the termination of the Bristol-Myers Squibb Puerto Rico, Inc. Retirement Income Plan.
Changes in defined benefit pension plan obligations, assets, funded status and amounts recognized in the consolidated balance sheets were as follows:
Year Ended December 31,
Dollars in millions20252024
Benefit obligations at beginning of year$1,945 $2,238 
Service cost—benefits earned during the year37 33 
Interest cost66 74 
Settlements and curtailments(64)(247)
Actuarial (gains)/losses(67)(10)
Benefits paid(73)(58)
Foreign currency and other192 (85)
Benefit obligations at end of year$2,036 $1,945 
Fair value of plan assets at beginning of year$1,927 $2,212 
Actual return on plan assets72 31 
Employer contributions51 71 
Settlements(54)(247)
Benefits paid(73)(58)
Foreign currency and other213 (82)
Fair value of plan assets at end of year$2,136 $1,927 
Funded status$100 $(18)
Assets/(liabilities) recognized:
Other non-current assets$330 $234 
Other current liabilities(24)(21)
Other non-current liabilities(206)(231)
Funded status$100 $(18)
Recognized in Accumulated other comprehensive loss:
Net actuarial losses$848 $924 
Prior service credit(28)(27)
Total$820 $897 

The accumulated benefit obligation for defined benefit pension plans was $2.0 billion and $1.9 billion at December 31, 2025 and 2024, respectively.

Additional information related to pension plan was as follows:
December 31,
Dollars in millions20252024
Pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation$635 $605 
Fair value of plan assets405 353 
Pension plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation610 578 
Fair value of plan assets405 353 

Actuarial Assumptions

Weighted-average assumptions used to determine defined benefit pension plan obligations were as follows:
December 31,
 20252024
Discount rate3.8 %3.5 %
Rate of compensation increase1.5 %1.4 %
Interest crediting rate2.5 %2.4 %
Weighted-average actuarial assumptions used to determine defined benefit pension plan net periodic benefit cost were as follows:
Year Ended December 31,
 202520242023
Discount rate3.5 %3.4 %4.0 %
Expected long-term return on plan assets4.1 %4.8 %4.1 %
Rate of compensation increase1.4 %1.4 %1.2 %
Interest crediting rate2.4 %2.5 %2.5 %

The yield on high quality corporate bonds matching the duration of the benefit obligations is used in determining the discount rate. The FTSE Pension Discount Curve is used in developing the discount rate for the U.S. plans.

The expected return on plan assets assumption for each plan is based on management’s expectations of long-term average rates of return to be achieved by the underlying investment portfolio. Several factors are considered in developing the expected return on plan assets, including long-term historical returns and input from external advisors. Individual asset class return forecasts were developed based upon market conditions, for example, price-earnings levels and yields and long-term growth expectations. The expected long-term rate of return is the weighted-average of the target asset allocation of each individual asset class.

Actuarial gains and losses resulted from changes in actuarial assumptions (such as changes in the discount rate and revised mortality rates) and from differences between assumed and actual experience (such as differences between actual and expected return on plan assets). Actuarial gains and losses related to plan benefit obligations primarily resulted from changes in discount rates.

Postretirement Benefit Plans

Comprehensive medical benefits are provided for substantially all BMS U.S. retirees electing to participate in the comprehensive medical plans and to a lesser extent certain benefits for non-U.S. employees. The medical plan is contributory. Contributions are adjusted periodically and vary by date of retirement. Postretirement benefit plan obligations were $116 million and $160 million at December 31, 2025 and 2024, respectively. The weighted-average discount rate used to determine benefit obligations was 5.1% and 5.4% at December 31, 2025 and 2024, respectively. The net periodic benefit costs were not material.

Plan Assets

The fair value of pension plan assets by asset category was as follows:
 December 31, 2025December 31, 2024
Dollars in millionsLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Plan assets
Equity securities$1 $— $— $1 $1 $— $— $1 
Equity funds— 303 — 303 — 256 — 256 
Fixed income funds— 484 — 484 — 446 — 446 
U.S. Treasury and agency securities— 33 — 33 — 41 — 41 
Insurance contracts— — 756 756 — — 708 708 
Cash and cash equivalents68 — — 68 57 — — 57 
Other— 11 — 11 — 11 — 11 
Plan assets subject to leveling$69 $831 $756 $1,656 $58 $754 $708 $1,520 
Plan assets measured at NAV as a practical expedient480 407 
Net plan assets$2,136 $1,927 
The investment valuation policies per investment class are as follows:

Level 1 inputs utilize unadjusted quoted prices in active markets accessible at the measurement date for identical assets or liabilities. The fair value hierarchy provides the highest priority to Level 1 inputs. These instruments include equity securities, equity funds and fixed income funds publicly traded on a national securities exchange, and cash and cash equivalents. Cash and cash equivalents are highly liquid investments with original maturities of three months or less at the time of purchase and are recognized at cost, which approximates fair value. Pending trade sales and purchases are included in cash and cash equivalents until final settlement.

Level 2 inputs utilize observable prices for similar instruments, quoted prices for identical or similar instruments in non-active markets, and other observable inputs that can be corroborated by market data for substantially the full term of the assets or liabilities. Equity funds and fixed income funds classified as Level 2 within the fair value hierarchy are valued at the NAV of their shares held at year end, which represents fair value. Corporate debt securities and U.S. Treasury and agency securities classified as Level 2 within the fair value hierarchy are valued utilizing observable prices for similar instruments and quoted prices for identical or similar instruments in markets that are not active.

Level 3 unobservable inputs are used when little or no market data is available. Insurance contracts are held by certain foreign pension plans and are carried at contract value, which approximates the estimated fair value and is based on the fair value of the underlying investment of the insurance company.

There were no transfers between Levels 1, 2 and 3 during the year ended December 31, 2025. Investments using the practical expedient consist primarily of multi-asset funds which are redeemable on either a daily, weekly, or monthly basis.

The investment strategy is to maximize return while maintaining an appropriate level of risk to provide sufficient liquidity for benefit obligations and plan expenses. Individual plan investment allocations are determined by local fiduciary committees and the composition of total assets for all pension plans at December 31, 2025 was broadly characterized as an allocation between equity securities (22%), debt securities (35%) and other investments (43%).

Contributions and Estimated Future Benefit Payments

The Company's estimated annual contributions and future benefits payments are not expected to be material.

Savings Plans

The principal defined contribution plan is the Bristol-Myers Squibb Savings and Investment Program. The contributions are based on employee contributions and the level of Company match. The U.S. defined contribution plan expense was approximately $325 million in 2025, $395 million in 2024 and $380 million in 2023.