In accordance with the applicable guidance for Accounting Standards Codification (“ASC”) 712, Nonretirement Postemployment Benefits, we accounted for termination benefits and recognized liabilities when the loss was considered probable that employees were entitled to benefits and the amounts could be reasonably estimated.

During the three and six months ended June 30, 2026 and 2025, we incurred costs of $2 million, $6 million, $9 million and $20 million, respectively, for termination benefits, net of changes in estimates. The majority of our termination benefits are recorded within other operating charges in the condensed consolidated statements of operations. The remaining payments associated with these actions are expected to be substantially completed within 12 months from June 30, 2026.

The following table summarizes the activity related to the termination benefit reserves and expenses from December 31, 2025 to June 30, 2026:


	2026 Activity
Balance at December 31, 2025	$	26
Expenses, net of changes to estimates	6
Payments made	(25)

Balance at June 30, 2026	$	7