v3.25.4
RETIREMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Assumptions used to Determine Benefit Obligation and Net Periodic Benefit Cost/(Income)
The assumptions used to determine benefit obligation and net periodic benefit cost/(income) were as follows:
 20242025
 Pension BenefitsOPEBPension BenefitsOPEB
 U.S. PlansNon-U.S. PlansWorldwideU.S. PlansNon-U.S. PlansWorldwide
Weighted Average Assumptions at December 31
      
Discount rate5.65 %4.51 %5.46 %5.34 %4.80 %5.27 %
Average rate of increase in compensation3.80 3.52 3.80 3.80 3.27 3.70 
Weighted Average Assumptions Used to Determine Net Benefit Cost for the Year Ended December 31
  
Discount rate - Service cost5.25 %3.92 %5.28 %5.83 %4.60 %5.73 %
Effective interest rate on benefit obligation5.02 4.01 5.02 5.35 4.36 5.14 
Expected long-term rate of return on assets5.93 4.53 — 6.37 5.23 — 
Average rate of increase in compensation4.05 3.54 3.98 3.80 3.52 3.80 
Schedule Pre-Tax Net Periodic Benefit Cost/(Income)
The pre-tax net periodic benefit cost/(income) for our defined benefit pension and OPEB plans for the years ended December 31 was as follows (in millions):
 202320242025
 Pension BenefitsOPEBPension BenefitsOPEBPension BenefitsOPEB
 U.S. PlansNon-U.S. PlansWorldwideU.S. PlansNon-U.S. PlansWorldwideU.S. PlansNon-U.S. PlansWorldwide
Service cost$292 $245 $21 $288 $248 $24 $209 $199 $21 
Interest cost1,641 965 231 1,581 938 226 1,571 949 220 
Expected return on assets(1,897)(890)— (1,817)(1,019)— (1,826)(1,156)— 
Amortization of prior service costs/(credits)
— 22 3 92 25 10 88 25 9 
Net remeasurement (gain)/loss841 932 286 444 (1,019)(112)308 308 (19)
Separation costs/other20 261 1 22 111 — 30 120 — 
Settlements and curtailments
69 9 — 129 (22)— — 6 — 
Net periodic benefit cost/(income)$966 $1,544 $542 $739 $(738)$148 $380 $451 $231 
Schedule of Year-End Status of Plans
The year-end status of these plans was as follows (in millions):
 20242025
 Pension BenefitsOPEBPension BenefitsOPEB
 U.S. PlansNon-U.S. PlansWorldwideU.S. PlansNon-U.S. PlansWorldwide
Change in Benefit Obligation     
Benefit obligation at January 1$32,676 $24,004 $4,696 $30,555 $21,245 $4,415 
Service cost288 248 24 209 199 21 
Interest cost1,581 938 226 1,571 949 220 
Amendments— — — — — — 
Separation costs/other(19)103 — 30 94 — 
Curtailments87 (22)— — 1 — 
Settlements(8)(6)— — — — 
Plan participant contributions15 9 — 16 8 — 
Benefits paid(2,706)(1,416)(324)(2,851)(1,362)(331)
Foreign exchange translation— (989)(95)— 1,970 56 
Actuarial (gain)/loss(1,359)(1,624)(112)1,117 (779)(19)
Benefit obligation at December 3130,555 21,245 4,415 30,647 22,325 4,362 
Change in Plan Assets   
Fair value of plan assets at January 131,423 22,958 — 29,502 21,751 — 
Actual return on plan assets13 414 — 2,635 69 — 
Company contributions808 685 — 703 462 — 
Plan participant contributions15 9 — 16 8 — 
Benefits paid(2,706)(1,416)— (2,851)(1,362)— 
Settlements(8)(6)— — — — 
Foreign exchange translation— (880)— — 1,875 — 
Other(43)(13)— — (28)— 
Fair value of plan assets at December 3129,502 21,751 — 30,005 22,775 — 
Funded status at December 31$(1,053)$506 $(4,415)$(642)$450 $(4,362)
Amounts Recognized on the Balance Sheets   
Prepaid assets$983 $3,155 $— $964 $2,773 $— 
Other liabilities(2,036)(2,649)(4,415)(1,606)(2,323)(4,362)
Total$(1,053)$506 $(4,415)$(642)$450 $(4,362)
Amounts Recognized in Accumulated Other Comprehensive Loss (pre-tax)
   
Unamortized prior service costs/(credits)$449 $132 $42 $361 $110 $34 
Pension Plans in which Accumulated Benefit Obligation Exceeds Plan Assets at December 31
    
Accumulated benefit obligation$1,641 $2,793  $1,669 $2,916  
Fair value of plan assets85 500  89 687  
Accumulated Benefit Obligation at December 31$30,070 $20,209  $30,177 $21,420  
Pension Plans in which Projected Benefit Obligation Exceeds Plan Assets at December 31
Projected benefit obligation$13,696 $8,813 $1,695 $3,016 
Fair value of plan assets11,660 6,164 89 693 
Projected Benefit Obligation at December 31$30,555 $21,245 $30,647 $22,325 
Schedule of Expected Future Benefit Payments
The expected future benefit payments at December 31, 2025 were as follows (in millions):
 Benefit Payments
 PensionOPEB
 U.S. PlansNon-U.S.
Plans		Worldwide
2026$2,695 $1,440 $340 
20272,630 1,420 335 
20282,600 1,425 330 
20292,600 1,430 330 
20302,550 1,425 325 
2031-203511,990 7,080 1,570 
Schedule of Defined Benefit Pension Plan Assets
The fair value of our defined benefit pension plan assets (including dividends and interest receivables of $236 million and $65 million for U.S. and non-U.S. plans, respectively) by asset category at December 31 was as follows (in millions):
2024
U.S. PlansNon-U.S. Plans
 Level 1Level 2Level 3Assets measured at NAV (a)TotalLevel 1Level 2Level 3Assets measured at NAV (a)Total
Asset Category    
Equity    
U.S. companies
$1,035 $2 $2 $— $1,039 $1,719 $25 $— $— $1,744 
International companies
490 38 6 — 534 1,080 47 1 — 1,128 
Total equity
1,525 40 8 — 1,573 2,799 72 1 — 2,872 
Fixed Income
U.S. government and agencies
7,106 1,079 — — 8,185 4 26 — — 30 
Non-U.S. government
1 607 — — 608 1,360 10,698 6 — 12,064 
Corporate bonds
— 15,079 21 — 15,100 — 1,667 56 — 1,723 
Mortgage/other asset-backed
— 433 — — 433 — 291 13 — 304 
Commingled funds
— — — — — 30 186 — — 216 
Derivative financial instruments, net
(6)(57)— — (63)(1)(20)51 — 30 
Total fixed income
7,101 17,141 21 — 24,263 1,393 12,848 126 — 14,367 
Alternatives
Hedge funds
— — — 3,732 3,732 — — — 779 779 
Private equity
— — — 845 845 — — — 370 370 
Real estate
— — — 1,298 1,298 — — — 370 370 
Total alternatives
— — — 5,875 5,875 — — — 1,519 1,519 
Cash, cash equivalents, and repurchase agreements (b)
(1,656)— — — (1,656)(197)— — — (197)
Other (c)
(553)— — — (553)(248)— 3,438 — 3,190 
Total assets at fair value
$6,417 $17,181 $29 $5,875 $29,502 $3,747 $12,920 $3,565 $1,519 $21,751 
__________
(a)Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
(b)Primarily short-term investment funds to provide liquidity to plan investment managers and cash held to pay benefits, offset by repurchase agreements valued at $(2.6) billion in U.S. plans and $(0.7) billion in non-U.S. plans.
(c)For U.S. plans, amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales). For non-U.S plans, $2.7 billion of insurance contracts, primarily the Ford-Werke plan, and amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales).
NOTE 16.  RETIREMENT BENEFITS (Continued)

The fair value of our defined benefit pension plan assets (including dividends and interest receivables of $256 million and $48 million for U.S. and non-U.S. plans, respectively) by asset category at December 31 was as follows (in millions):
2025
U.S. PlansNon-U.S. Plans
 Level 1Level 2Level 3Assets measured at NAV (a)TotalLevel 1Level 2Level 3Assets measured at NAV (a)Total
Asset Category    
Equity    
U.S. companies
$842 $29 $2 $— $873 $1,273 $31 $— $— $1,304 
International companies
452 10 7 — 469 786 45 1 — 832 
Total equity
1,294 39 9 — 1,342 2,059 76 1 — 2,136 
Fixed Income
     
U.S. government and agencies
7,388 941 — — 8,329 3 58 — — 61 
Non-U.S. government
1 688 — — 689 2,629 6,974 51 — 9,654 
Corporate bonds
— 15,355 23 — 15,378 — 1,025 38 — 1,063 
Mortgage/other asset-backed
— 453 3 — 456 — 172 3 — 175 
Commingled funds
— — — 611 611 26 124 — — 150 
Derivative financial instruments, net
(4)20 — — 16 — 21 — — 21 
Total fixed income
7,385 17,457 26 611 25,479 2,658 8,374 92 — 11,124 
Alternatives
     
Hedge funds
— — — 2,908 2,908 — — — 488 488 
Private equity
— — — 820 820 — — — 325 325 
Real estate
— — — 1,175 1,175 — — — 278 278 
Total alternatives
— — — 4,903 4,903 — — — 1,091 1,091 
Cash, cash equivalents, and repurchase agreements (b)
(1,460)— — — (1,460)(1,296)— — — (1,296)
Other (c)
(259)— — — (259)(42)— 9,762 — 9,720 
Total assets at fair value
$6,960 $17,496 $35 $5,514 $30,005 $3,379 $8,450 $9,855 $1,091 $22,775 
__________
(a)Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
(b)Primarily short-term investment funds to provide liquidity to plan investment managers and cash held to pay benefits, offset by repurchase agreements valued at $(2.2) billion in U.S. plans and $(1.6) billion in non-U.S. plans.
(c)For U.S. plans, amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales). For non-U.S plans, $9.0 billion of insurance contracts, primarily in the U.K. and Germany, and amounts related to net pending security (purchases)/sales and net pending foreign currency purchases/(sales).
Schedule of Defined Benefit Pension Plan Assets Measured at Fair Value on Recurring Basis
The following table summarizes the changes in Level 3 defined benefit pension plan assets for the years ended December 31 (in millions):
2024
 Return on plan assets  
Fair
Value
at
January 1		Attributable
to Assets
Held
at
December 31		Attributable
to
Assets
Sold		Net Purchases/
(Settlements)		Transfers Into/(Out of) Level 3Fair
Value
at
December 31
U.S. Plans$21 $— $3 $4 $1 $29 
Non-U.S. Plans (a)4,138 (387)(16)(2)(168)3,565 
2025
 Return on plan assets  
Fair
Value
at
January 1		Attributable
to Assets
Held
at
December 31		Attributable
to
Assets
Sold		Net Purchases/
(Settlements)		Transfers Into/(Out of) Level 3Fair
Value
at
December 31
U.S. Plans$29 $6 $— $9 $(9)$35 
Non-U.S. Plans (a)3,565 6,278 8 (33)37 9,855 
__________
(a)Includes insurance contracts, primarily in the U.K. and Germany, valued at $2.7 billion and $9.0 billion at year-end 2024 and 2025, respectively.