Employee retirement benefits (Tables)

12 Months Ended

Dec. 31, 2025

The benefit obligations and plan assets associated with the company’s defined benefit plans are measured on December 31.


	Pension benefits		Other postretirement benefits
	2025	2024	2025	2024
Assumptions used to determine benefit obligations at December 31 (percent)
Discount rate	4.90	4.70	4.90	4.70
Long-term rate of compensation increase	4.00	4.00	4.00	4.00

millions of Canadian dollars
Change in benefit obligation
Benefit obligation at January 1	8,131	8,154	476	581
Service cost	186	186	4	13
Interest cost	369	365	22	25
Actuarial loss (gain) (a)	(247)	(88)	(43)	(29)
Amendments and other	19	—	1	(78)
Benefits paid (b)	(502)	(486)	5	(36)
Benefit obligation at December 31	7,956	8,131	465	476

Accumulated benefit obligation at December 31	7,225	7,385
(a)Actuarial loss (gain) primarily driven by changes in the year-end discount rate. (b)Benefit payments for funded and unfunded plans.


	Pension benefits		Other postretirement benefits
millions of Canadian dollars	2025	2024	2025	2024
Change in plan assets
Fair value at January 1	8,553	8,054
Actual return (loss) gain	345	805
Company contributions	148	150
Benefits paid (a)	(459)	(452)
Other	(5)	(4)

Fair value at December 31	8,582	8,553

Plan assets in excess of (less than) projected benefit obligation at December 31
Funded plans	1,035	853
Unfunded plans	(409)	(431)	(465)	(476)
Total (b)	626	422	(465)	(476)
(a)Benefit payments for funded plans only. (b)Fair value of assets less projected benefit obligation shown above.


	Pension benefits		Other postretirement benefits
millions of Canadian dollars	2025	2024	2025	2024
Amounts recorded in the Consolidated balance sheet consist of:
Other assets, including intangibles - net	1,035	853	—	—
Current liabilities	(34)	(33)	(29)	(28)
Other long-term obligations	(375)	(398)	(436)	(448)
Total recorded	626	422	(465)	(476)

Amounts recorded in accumulated other comprehensive income consist of:
Net actuarial loss (gain)	29	237	(145)	(110)
Prior service cost	346	373	(73)	(78)
Total recorded in accumulated other comprehensive income, before-tax	375	610	(218)	(188)


	Pension benefits			Other postretirement benefits
	2025	2024	2023	2025	2024	2023
Assumptions used to determine net periodic benefit cost for years ended December 31 (percent)
Discount rate	4.70	4.60	5.10	4.70	4.60	5.10
Long-term rate of return on funded assets	4.40	5.60	4.80	—	—	—
Long-term rate of compensation increase	4.00	4.00	4.00	4.00	4.00	4.00

millions of Canadian dollars
Components of net periodic benefit cost
Service cost	186	186	162	4	13	12
Interest cost	369	365	373	22	25	28
Expected return on plan assets	(395)	(454)	(373)	—	—	—
Amortization of prior service cost	27	27	19	(5)	—	—
Amortization of actuarial loss (gain)	11	48	44	(8)	(8)	(9)
Net pension and other post retirement benefit enhancement	19	—	—	1	—	—
Net periodic benefit cost	217	172	225	14	30	31

Changes in amounts recorded in accumulated other comprehensive income
Net actuarial loss (gain)	(197)	(439)	102	(43)	(29)	(14)
Amortization of net actuarial (loss) gain included in net periodic benefit cost	(11)	(48)	(44)	8	8	9
Prior service cost	—	—	184	—	(78)	—
Amortization of prior service cost included in net periodic benefit cost	(27)	(27)	(19)	5	—	—
Total recorded in other comprehensive income	(235)	(514)	223	(30)	(99)	(5)
Total recorded in net periodic benefit cost and other comprehensive income, before-tax	(18)	(342)	448	(16)	(69)	26

A summary of the change in accumulated other comprehensive income is shown in the table below:


	Total pension and other postretirement benefits
millions of Canadian dollars	2025	2024	2023
(Charge) credit to other comprehensive income, before-tax	265	613	(218)
Deferred income tax (charge) credit (note 17)	(65)	(150)	53
(Charge) credit to other comprehensive income, after-tax	200	463	(165)

The 2025 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below:


		Fair value measurements at December 31, 2025, using:
millions of Canadian dollars	Total	Level 1	Level 2	Level 3	Net Asset Value
Asset class
Equity securities
Canadian	—				—
Non-Canadian	1,466				1,466
Debt securities - Canadian
Corporate	1,693				1,693
Government	4,950				4,950
Asset backed	4				4
Other	45				45
Equities – Venture capital	167				167
Real Estate	207				207
Cash	50	18			32
Total plan assets at fair value	8,582	18			8,564

The 2024 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below:


		Fair value measurements at December 31, 2024, using:
millions of Canadian dollars	Total	Level 1	Level 2	Level 3	Net Asset Value
Asset class
Equity securities
Canadian	—				—
Non-Canadian	2,584				2,584
Debt securities - Canadian
Corporate	1,220				1,220
Government	4,400				4,400
Asset backed	4				4
Other	18				18
Equities – Venture capital	134				134
Real Estate	154				154
Cash	39	3			36
Total plan assets at fair value	8,553	3			8,550

A summary of pension plans with accumulated benefit obligation and projected benefit obligation in excess of plan assets is shown in the table below:


	Pension benefits
millions of Canadian dollars	2025	2024





For unfunded pension plans covered by book reserves:
Projected benefit obligation	409	431
Accumulated benefit obligation	368	386
(a)In 2025 and 2024, the fair value of plan assets exceeded the projected benefit obligation for both the company sponsored plan and its proportionate share of a joint venture sponsored plan.

Benefit payments expected in:


millions of Canadian dollars	Pension benefits	Other postretirement benefits
2026	490	30
2027	490	30
2028	490	32
2029	490	32
2030	490	32
2031 - 2035	2,450	154