Employee Benefit Plans (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Disclosure of information about defined benefit plans [abstract] |
|
| Net Defined Benefit Plan Obligations |
The movement on net defined benefit plan obligations is as follows:
|
|
|
|
|
|
|
|
|
(millions of U.S. dollars) |
Pension Plans(1) |
|
OPEB(1) |
|
Total(1) |
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
As of January 1 |
(423) |
(418) |
|
(60) |
(72) |
|
(483) |
(490) |
Plan (expense) benefit recognized in income
statement |
(45) |
(44) |
|
(10) |
8 |
|
(55) |
(36) |
Actuarial gains (losses) |
77 |
11 |
|
6 |
(6) |
|
83 |
5 |
Exchange differences |
- |
- |
|
(1) |
3 |
|
(1) |
3 |
Contributions paid |
29 |
28 |
|
6 |
7 |
|
35 |
35 |
Net plan obligations as of December 31 |
(362) |
(423) |
|
(59) |
(60) |
|
(421) |
(483) |
Net plan surpluses recognized in non-current assets |
|
83 |
40 |
Net plan obligations recognized in non-current liabilities |
|
|
(504) |
(523) |
(1)Includes amounts for immaterial defined benefit and OPEB plans that are not included in the detailed analysis below.
|
| Summary of Net Surpluses (Obligations) of Material Defined Benefit Plans |
The net surpluses (obligations) of the material defined benefit plans recognized in the consolidated statement of financial position are as follows:
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|
|
|
|
|
|
|
|
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|
(millions of U.S. dollars) |
Funded |
|
Unfunded(1) |
|
OPEB |
|
Total |
As of December 31, |
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
Present value of plan obligations |
(2,423) |
(2,382) |
|
(206) |
(212) |
|
(29) |
(34) |
|
(2,658) |
(2,628) |
Fair value of plan assets |
2,270 |
2,174 |
|
- |
- |
|
- |
- |
|
2,270 |
2,174 |
Net plan obligations |
(153) |
(208) |
|
(206) |
(212) |
|
(29) |
(34) |
|
(388) |
(454) |
Net plan surpluses |
76 |
34 |
|
- |
- |
|
- |
- |
|
76 |
34 |
Net plan obligations |
(229) |
(242) |
|
(206) |
(212) |
|
(29) |
(34) |
|
(464) |
(488) |
(1)Unfunded pension plans consist of SERPs.
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| Disclosure of Present Value of Defined Benefit Obligations |
The following summarizes activity in the defined benefit obligation:
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|
Present Value of Defined Benefit
Obligations
(millions of U.S. dollars) |
Funded |
|
Unfunded |
|
OPEB |
|
Total |
As of December 31, |
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
Opening defined benefit obligation |
(2,382) |
(2,606) |
|
(212) |
(231) |
|
(34) |
(50) |
|
(2,628) |
(2,887) |
Current service cost |
(4) |
(4) |
|
(1) |
(1) |
|
- |
(1) |
|
(5) |
(6) |
Administration fees |
(15) |
(15) |
|
- |
- |
|
- |
- |
|
(15) |
(15) |
Interest cost |
(128) |
(123) |
|
(11) |
(11) |
|
(2) |
(2) |
|
(141) |
(136) |
Actuarial (losses) gains from changes in
financial assumptions(1) |
(16) |
179 |
|
(3) |
9 |
|
(1) |
1 |
|
(20) |
189 |
Actuarial gains from changes in demographic
assumptions |
26 |
- |
|
- |
- |
|
- |
- |
|
26 |
- |
Experience (losses) gains |
(30) |
(4) |
|
- |
(1) |
|
4 |
(2) |
|
(26) |
(7) |
Contributions by employees |
(3) |
(2) |
|
- |
- |
|
- |
(2) |
|
(3) |
(4) |
Benefits paid |
169 |
159 |
|
22 |
22 |
|
4 |
9 |
|
195 |
190 |
Administration fees disbursements |
16 |
15 |
|
- |
- |
|
- |
- |
|
16 |
15 |
Plan amendments |
- |
(1) |
|
- |
- |
|
(1) |
13 |
|
(1) |
12 |
Exchange differences |
(56) |
20 |
|
(1) |
1 |
|
1 |
- |
|
(56) |
21 |
Closing defined benefit obligation |
(2,423) |
(2,382) |
|
(206) |
(212) |
|
(29) |
(34) |
|
(2,658) |
(2,628) |
(1)For funded plans, losses in 2025 were primarily associated with a decrease in discount rates and gains in 2024, were primarily associated with an increase in discount rates, used to measure the obligation.
|
| Defined Benefit Obligation - Other Disclosures |
The total closing defined benefit obligation can be further analyzed by participant group and by geography.
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As of December 31, |
2025 |
2024 |
|
As of December 31, |
2025 |
2024 |
Active employees |
17% |
19% |
|
U.S. |
70% |
71% |
Deferred |
32% |
35% |
|
U.K. |
25% |
24% |
Retirees |
51% |
46% |
|
Rest of world |
5% |
5% |
Closing defined benefit obligation |
100% |
100% |
|
|
100% |
100% |
|
| Fair Value of Plan Assets |
The following summarizes activity in plan assets:
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Fair Value of Plan Assets
(millions of U.S. dollars) |
Funded |
|
Unfunded |
|
OPEB |
|
Total |
As of December 31, |
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
Opening fair value of plan assets |
2,174 |
2,421 |
|
- |
- |
|
- |
- |
|
2,174 |
2,421 |
Interest income(1) |
116 |
113 |
|
- |
- |
|
- |
- |
|
116 |
113 |
Return on plan assets excluding amounts
included in interest income(2) |
99 |
(173) |
|
- |
- |
|
- |
- |
|
99 |
(173) |
Contributions by employer |
6 |
6 |
|
22 |
22 |
|
4 |
7 |
|
32 |
35 |
Contributions by employees |
3 |
2 |
|
- |
- |
|
- |
2 |
|
3 |
4 |
Benefits paid |
(169) |
(159) |
|
(22) |
(22) |
|
(4) |
(9) |
|
(195) |
(190) |
Administration fees disbursements |
(16) |
(15) |
|
- |
- |
|
- |
- |
|
(16) |
(15) |
Exchange differences |
57 |
(21) |
|
- |
- |
|
- |
- |
|
57 |
(21) |
Closing fair value of plan assets |
2,270 |
2,174 |
|
- |
- |
|
- |
- |
|
2,270 |
2,174 |
(1)Interest income is calculated using the discount rate for the period. (2)Return on plan assets represents the difference between the actual return on plan assets and the interest income computed using the discount rate.
|
| Summary of Major Categories of Plan Assets for Funded Plans |
In aggregate, the major categories of plan assets for funded plans are as follows:
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|
(millions of U.S. dollars) |
Quoted(1) |
|
Unquoted |
|
Total |
As of December 31, |
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
Equities(2) |
3 |
1 |
|
518 |
522 |
|
521 |
523 |
Bonds(3)(4) |
|
|
|
|
|
|
|
|
Corporate |
- |
- |
|
502 |
566 |
|
502 |
566 |
Government |
- |
- |
|
462 |
365 |
|
462 |
365 |
Other fixed income |
- |
- |
|
298 |
294 |
|
298 |
294 |
Total Bonds |
- |
- |
|
1,262 |
1,225 |
|
1,262 |
1,225 |
Multi-asset(5) |
- |
- |
|
88 |
91 |
|
88 |
91 |
Derivatives |
(2) |
(2) |
|
1 |
1 |
|
(1) |
(1) |
Cash and cash equivalents |
39 |
40 |
|
240 |
197 |
|
279 |
237 |
Other(6) |
6 |
5 |
|
115 |
94 |
|
121 |
99 |
Total |
46 |
44 |
|
2,224 |
2,130 |
|
2,270 |
2,174 |
(1)Asset valuation based on Level 1 evidence under the fair value hierarchy: quoted prices (unadjusted) in active markets for identical assets or liabilities. (2)Equities include direct shareholdings and funds focused on equity strategies. (3)Bonds include direct credit holdings and funds focused on fixed income strategies. Within this grouping, Government includes debt issued by national, state and local government agencies. In 2025 and 2024, government bonds included an offset of $513 million and $466 million, respectively, representing collateralized borrowings associated with certain bonds under repurchase agreements. Other fixed income includes blended Corporate/Government credit strategies. (4)Includes quoted assets in inactive markets. (5)Multi-asset includes funds that invest in a range of asset classes. (6)Other is primarily real estate investments.
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| Summary of Weighted-Average Actuarial Assumptions |
The weighted-average actuarial assumptions are as follows:
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|
|
|
|
|
Funded |
|
Unfunded |
|
OPEB |
As of December 31, |
|
|
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
Discount rate |
|
|
|
5.32% |
5.47% |
|
5.40% |
5.57% |
|
4.75% |
5.30% |
Inflation assumption |
|
|
|
2.72% |
3.06% |
|
2.70% |
2.70% |
|
- |
- |
Rate of increase in pension payments |
|
|
|
2.55% |
2.96% |
|
2.75% |
2.76% |
|
- |
- |
|
| Summary of Life Expectation in Years of an Average Plan Participant |
The following table illustrates the life expectation in years of an average plan participant retiring at age 65 as of December 31, 2025 and 2024 and a plan participant at age 40 as of December 31, 2025 and 2024 retiring 25 years later at age 65 under the mortality assumptions used.
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Life Expectation in Years |
December 31, 2025 |
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|
Male |
Female |
Employee retiring as of December 31, 2025 at age 65 |
21 |
23 |
Employee age 40 as of December 31, 2025 retiring at age 65 |
23 |
24 |
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|
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Life Expectation in Years |
December 31, 2024 |
|
|
|
|
Male |
Female |
Employee retiring as of December 31, 2024 at age 65 |
22 |
23 |
Employee age 40 as of December 31, 2024 retiring at age 65 |
24 |
25 |
|
| Defined Benefit Plan Expense |
Defined benefit plan expense (income) for material defined benefit plans for years ended December 31, 2025 and 2024 are as follows:
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Income Statement(1)
(millions of U.S. dollars) |
Funded |
|
Unfunded |
|
OPEB |
|
Total |
Year ended December 31, |
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
Current service cost |
4 |
4 |
|
1 |
1 |
|
- |
1 |
|
5 |
6 |
Net interest cost |
12 |
10 |
|
11 |
11 |
|
2 |
2 |
|
25 |
23 |
Administration fees |
15 |
15 |
|
- |
- |
|
- |
- |
|
15 |
15 |
Plan amendments |
- |
1 |
|
- |
- |
|
1 |
(13) |
|
1 |
(12) |
Defined benefit plan expense (income) |
31 |
30 |
|
12 |
12 |
|
3 |
(10) |
|
46 |
32 |
(1)Current service cost and administration fees are included in the “Post-employment benefits” component of “Operating expenses” as set out in note 5. Net interest cost is reported in “Finance costs, net” as set out in note 8. Plan amendments are reported in “Other operating gains, net” in the consolidated income statement.
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| Summary of Amounts Recognized in Other Comprehensive Loss (Income) for Material Defined Benefit Plans |
The following summarizes amounts recognized in other comprehensive (income) loss for material defined benefit plans:
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Other Comprehensive (Income) Loss
(millions of U.S. dollars) |
Funded |
|
Unfunded |
|
OPEB |
|
Total |
Year ended December 31, |
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
Remeasurement losses (gains) on defined
benefit obligation: |
|
|
|
|
|
|
|
|
|
|
|
Due to financial assumption changes |
16 |
(179) |
|
3 |
(9) |
|
1 |
(1) |
|
20 |
(189) |
Due to demographic assumption changes |
(26) |
- |
|
- |
- |
|
- |
- |
|
(26) |
- |
Due to experience |
30 |
4 |
|
- |
1 |
|
(4) |
2 |
|
26 |
7 |
Return on plan assets (greater than) less
than discount rate |
(99) |
173 |
|
- |
- |
|
|
- |
|
(99) |
173 |
Total recognized in other comprehensive
(income) loss before taxation |
(79) |
(2) |
|
3 |
(8) |
|
(3) |
1 |
|
(79) |
(9) |
|
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|
|
|
|
|
|
|
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|
Accumulated Comprehensive Loss
(Income)
(millions of U.S. dollars) |
Funded |
|
Unfunded |
|
OPEB |
|
Total |
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
|
2025 |
2024 |
Balance of accumulated comprehensive loss
(income) as of January 1 |
1,315 |
1,317 |
|
48 |
56 |
|
(121) |
(122) |
|
1,242 |
1,251 |
Net actuarial (gains) losses recognized in the
year |
(79) |
(2) |
|
3 |
(8) |
|
(3) |
1 |
|
(79) |
(9) |
Total accumulated comprehensive loss
(income) as of December 31, |
1,236 |
1,315 |
|
51 |
48 |
|
(124) |
(121) |
|
1,163 |
1,242 |
|