v3.26.1
OTHER LIABILITIES - NON CURRENT AND CURRENT
 12 Months Ended
Dec. 31, 2025
Disclosure of other liabilities [Abstract]  
OTHER LIABILITIES - NON CURRENT AND CURRENT OTHER LIABILITIES – NON-CURRENT AND CURRENT
As of December 31,
20252024
(i) Other liabilities - Non current
Post-employment benefits703,788 573,834 
Other employee benefits70,657 73,502 
Asset retirement obligation (note 19) (1)128,990 80,543 
Other52,677 38,082 
Other liabilities – Non-current956,112 765,961 
The carrying value of these liabilities approximates the fair value.
(1) The asset in connection with this liability is included in Property, plant and equipment.

Post-employment benefits

The amounts recognized in the consolidated statement of financial position are determined as follows:
Post-employment benefits
As of December 31,
20252024
Present value of obligations1,707,549 1,456,677 
Fair value of plan assets(1,211,079)(1,032,356)
Asset ceiling207,318 149,513 
Net liability (asset) in the statement of financial position703,788 573,834 

The amounts recognized in the consolidated income statement are as follows:
Post-employment benefits
Year ended December 31,
20252024
Current service cost14,711 17,260 
Interest cost (income), net43,295 40,217 
Interest on Asset ceiling/ Onerous liability20,357 16,678 
Total included in income statement78,363 74,155 

The amounts recognized in other comprehensive income are as follows:
Post-employment benefits
Year ended December 31,
20252024
Remeasurements
Effect of changes in demographic assumptions(16,152)66,333 
Effect of changes in financial assumptions63,102 (236,205)
Effect of experience adjustments1,776 33,735 
Change in asset ceiling19,056 (42,157)
Expected return on assets(21,905)177,519 
Total included in other comprehensive income45,877 (775)
21.    OTHER LIABILITIES – NON-CURRENT AND CURRENT (continued)
Changes in the liability recognized in the consolidated statement of financial position are as follows:
Post-employment benefits
As of December 31,
20252024
At the beginning of the year1,456,677 1,975,462 
Transfers, new participants and funding of the plan(15)157 
Total expense191,730 166,827 
Remeasurements48,726 (136,137)
Translation differences178,167 (399,929)
Contributions paid(167,736)(149,703)
At the end of the year1,707,549 1,456,677 

Changes in fair value of the plan assets are as follows:
Fair value of plan assets
As of December 31,
20252024
At the beginning of the year1,032,356 1,525,330 
Expected return on assets21,905 (177,519)
Interest income133,724 109,350 
Translation differences128,992 (330,283)
Funding of the plan16,936 13,111 
Contributions paid(122,834)(107,633)
At the end of the year1,211,079 1,032,356 

The major categories of plan assets are as follows:
Fair value of plan assets
As of December 31,
20252024
Usiminas shares36,946 29,305 
Non-US government securities861,452 716,909 
Fixed income94,747 81,821 
Investments funds215,233 202,987 
Others2,701 1,334 
At the end of the year1,211,079 1,032,356 
As of December 31, 2025, the pension plan assets included 34,109,762 common shares of Usiminas (34,109,762 common shares of the Usiminas as of December 31, 2024).
21.    OTHER LIABILITIES – NON-CURRENT AND CURRENT (continued)
The principal actuarial assumptions used were as follows:
Year ended December 31,
Mexico20252024
Discount rate9.50%10.25%
Compensation growth rate
6.00% - 7.00%
6.00% - 7.00%
Year ended December 31,
Argentina20252024
Discount rate
5.70% - 7.00%
6.00% - 7.00%
Compensation growth rate
2.00% - 3.00%
2.00% - 3.00%
Year ended December 31,
Brazil20252024
Discount rate
7.29% - 7.81%
7.46% - 8.10%
Compensation growth rate
0.90% - 2.90%
0.50% - 2.90%
Long-term increase in medical service costs4.75%4.75%
Expected return on plan assets
11.40% - 11.94%
11.76% - 12.42%

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is as follows:
Impact on defined benefit obligation
Change in assumptionIncrease in assumptionDecrease in assumption
Discount rate1.00%-7.0%8.1%
Compensation growth rate1.00%0.8%-0.9%
Pension growth rate1.00%0.3%-0.4%
Life expectancy1 year1.0%-1.0%
The estimated future payments for the next five years will be between $172.3 million and $188.7 million per year.
The post-retirement benefits related to Usiminas are guaranteed with property, plant and equipment up to the amount of $214 million.
As of December 31,
20252024
(ii) Other liabilities - Current
Payroll and social security payable162,022 184,805 
VAT liabilities24,063 37,259 
Other tax liabilities69,510 60,373 
Termination benefits119 128 
Related Parties (Note 26)470 463 
Asset retirement obligation (Note 19)16,084 17,818 
Dividends payable8,677 1,967 
Put option liability (note 3 (e))298,450 263,201 
Others60,391 63,664 
Other liabilities – Current639,786 629,678