v3.26.3
Retirement Benefits
 9 Months Ended
Sep. 30, 2026
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
The Company maintains qualified and non-qualified defined benefit pension plans for its U.S. and non-U.S. eligible employees. The Company’s policy for funding its tax-qualified defined benefit retirement plans is to contribute amounts at least sufficient to meet the funding requirements set forth by U.S. law and the laws of the non-U.S. jurisdictions in which the Company offers defined benefit plans.
The weighted average actuarial assumptions utilized to calculate the net periodic benefit cost or credit for the U.S. and significant non-U.S. defined benefit plans are as follows:
Combined U.S. and significant non-U.S. PlansPension Benefits
September 30,20262025
Weighted average assumptions:
Discount rate5.39 %5.36 %
Expected return on plan assets5.94 %5.43 %
Rate of compensation increase*3.12 %3.16 %
(*)There are no rate of compensation increase assumptions for the primary U.S. defined benefit plans since future benefit accruals were discontinued for those plans after December 31, 2016 and earned benefits are not subject to final salary level adjustments.
The target asset allocation for the U.S. plans at September 30, 2026 is 50% equities and equity alternatives and 50% fixed income. At September 30, 2026, the actual allocation for the U.S. plans was 52% equities and equity alternatives and 48% fixed income. The target allocation for the U.K. plans at September 30, 2026 is 7% equities and equity alternatives and 93% fixed income. At September 30, 2026, the actual allocation for the U.K. plans was 8% equities and equity alternatives and 92% fixed income. The Company's U.K. plans comprised approximately 78% of non-U.S. plan assets at December 31, 2025.
The assets of the Company's defined benefit plans are diversified and are managed in accordance with applicable laws and with the goal of maximizing the plans' asset returns within acceptable risk parameters. Asset allocation is frequently monitored to ensure the actual portfolio remains consistent with target asset allocation ranges. This includes the use of threshold-based portfolio re-balancing where appropriate.
The net benefit (credit) or cost of the Company's defined benefit plans is measured on an actuarial basis using various methods and assumptions.
The components of the net benefit (credit) or cost for the defined benefit plans is as follows:
Combined U.S. and significant non-U.S. Plans
For the Three Months Ended September 30,
Pension Benefits
(In millions)20262025
Service cost$6 $8 
Interest cost144 151 
Expected return on plan assets(219)(215)
Amortization of prior service (credit) cost 1 1 
Recognized actuarial loss23 11 
Net periodic benefit credit$(45)$(44)
Settlement loss3 — 
Net benefit credit$(42)$(44)
Combined U.S. and significant non-U.S. Plans
For the Nine Months Ended September 30,
Pension Benefits
(In millions)20262025
Service cost$19 $21 
Interest cost432 445 
Expected return on plan assets(659)(631)
Amortization of prior service (credit) cost 1 1 
Recognized actuarial loss70 32 
Net periodic benefit credit$(137)$(132)
Settlement loss5 10 
Net benefit credit$(132)$(122)
The following tables provide the amounts reported in the consolidated statements of income:
Combined U.S. and significant non-U.S. Plans
For the Three Months Ended September 30,
Pension Benefits
(In millions)20262025
Compensation and benefits expense$6 $8 
Other net benefit credits (48)(52)
Net benefit credit$(42)$(44)
Combined U.S. and significant non-U.S. Plans
For the Nine Months Ended September 30,
Pension Benefits
(In millions)20262025
Compensation and benefits expense$19 $21 
Other net benefit credits (a)(151)(143)
Net benefit credit$(132)$(122)
(a)For the nine months ended September 30, 2026, the Company recorded $3 million of net benefit cost related to the post-retirement plans.
The components of the net benefit credit for the U.S. defined benefit plans are as follows:
U.S. Plans only
For the Three Months Ended September 30,
Pension Benefits
(In millions)20262025
Service cost$— $1 
Interest cost62 64 
Expected return on plan assets(70)(74)
Recognized actuarial loss 9 6 
Net benefit cost (credit)$1 $(3)
U.S. Plans only
For the Nine Months Ended September 30,
Pension Benefits
(In millions)20262025
Service cost$— $1 
Interest cost186 191 
Expected return on plan assets(210)(220)
Recognized actuarial loss 27 18 
Net periodic benefit cost (credit)$3 $(10)
Settlement loss— 1 
Net benefit cost (credit)$3 $(9)
The components of the net benefit credit for the non-U.S. defined benefit plans are as follows:
Significant non-U.S. Plans only
For the Three Months Ended September 30,
Pension Benefits
(In millions)20262025
Service cost$6 $7 
Interest cost82 87 
Expected return on plan assets(149)(141)
Amortization of prior service credit1 1 
Recognized actuarial loss14 5 
Net periodic benefit credit$(46)$(41)
Settlement loss3 — 
Net benefit credit$(43)$(41)
Significant non-U.S. Plans only
For the Nine Months Ended September 30,
Pension Benefits
(In millions)20262025
Service cost$19 $20 
Interest cost246 254 
Expected return on plan assets(449)(411)
Amortization of prior service credit1 1 
Recognized actuarial loss43 14 
Net periodic benefit credit$(140)$(122)
Settlement loss5 9 
Net benefit credit$(135)$(113)
The Company made contributions to its U.S. and non-U.S. defined benefit pension plans for the three and nine months ended September 30, 2026 of approximately $45 million and $77 million, respectively, compared to contributions of $21 million and $56 million, respectively, for the corresponding periods in the prior year. The Company expects to contribute approximately $23 million to its U.S. and non-U.S. defined benefit pension plans during the remainder of 2026.
Defined Contribution Plans
The Company maintains defined contribution plans ("DC Plans") for its employees, the most significant being in the U.S. and the U.K. The cost of the U.S. DC Plans for the three and nine months ended September 30, 2026 was $52 million and $163 million, respectively, and $51 million and $159 million, respectively, for the corresponding periods in the prior year. The cost of the U.K. DC Plans for the three and nine months ended September 30, 2026 was $44 million and $158 million, respectively, and $43 million and $141 million, respectively, for the corresponding periods in the prior year.