v3.25.4
Post-Employment and Other Long-Term Employees Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Post-Employment and Other Long-Term Employees Benefits POST-EMPLOYMENT AND OTHER LONG-TERM EMPLOYEES BENEFITS
The Company and its subsidiaries have a number of defined benefit pension plans, mainly unfunded, and other long-term employees’ benefits covering employees in various countries. The defined benefit plans provide pension benefits based on years of service and employee compensation levels. The other long-term employees’ plans provide benefits due during the employees’ period of service after certain seniority levels. The Company uses December 31 as measurement date for its plans. Eligibility is generally determined in accordance with local statutory requirements. For Italian termination indemnity plan (“TFR”), generated before July 1, 2007, the Company measures the vested benefits to which Italian employees are entitled as if the amounts were immediately due as of December 31, 2025, in compliance with U.S. GAAP guidance on determining vested benefit obligations for defined benefit pension plans.
The changes in benefit obligation and plan assets were as follows:
Pension BenefitsOther Long-Term Benefits
December 31,
2025		December 31,
2024		December 31,
2025		December 31,
2024
Change in benefit obligation:
Benefit obligation at beginning of year992 1,008 109 99 
Service cost39 32 26 23 
Interest cost38 36 4 3 
Employee contributions7 6 — — 
Plan amendments6 3 — — 
Benefits paid(40)(39)(15)(12)
Effect of settlement(5)(11)— — 
Actuarial (gain) loss(21)(5)3 1 
Foreign currency translation75 (38)15 (5)
Benefit obligation at end of year1,091 992 142 109 
 
Change in plan assets:
Plan assets at fair value at beginning of year646 654 — — 
Actual return on plan assets37 18 — — 
Employer contributions21 25 — — 
Employee contributions7 6 — — 
Benefits paid(27)(25)— — 
Effect of settlement(1)(11)— — 
Foreign currency translation34 (21)— — 
Plan assets at fair value at end of year717 646 — — 
Funded status(374)(346)(142)(109)
Amounts recorded in the consolidated balance sheets
Other investments and other non-current assets20 22 — — 
Other payables and accrued liabilities (19)(15)(4)(10)
Other non-current liabilities— — (138)(99)
Post-employment benefit obligations (1)
(375)(353)— — 
Net amount recorded(374)(346)(142)(109)
(1)    The Company also sponsors a non‑qualified deferred compensation plan in the United States for certain employees. As of December 31, 2025, the related obligation of $28 million is included within “Post‑employment benefit obligations” in the consolidated balance sheet for a total Post-employment benefit obligations of $403 million.
The actuarial gains incurred in 2025 were primarily due to an increase in discount rates applied against future expected benefit payments, mainly for the plans located in France and Switzerland. The actuarial gains incurred in 2024 were primarily due to an increase in discount rates mainly for the plans located in the United States and the United Kingdom.
Funded status was impacted by rate changes on plans denominated in currencies other than the Company's functional currency.
Actual return on plan assets reflect changes in market conditions during each reporting year. In 2025, the increase in actual return is primarily related to plan assets in the United States.
The components of accumulated other comprehensive loss (income) before tax effects were as follows:
Actuarial
(gains)/losses		Prior service
cost		Total
In accumulated other comprehensive loss as of December 31, 202369 (1)68 
Net amount generated/arising in current year7 3 10 
Amortization(8)— (8)
Foreign currency translation adjustment(1)— (1)
In accumulated other comprehensive loss as of December 31, 202467 2 69 
Net amount generated/arising in current year(27)6 (21)
Amortization(9)— (9)
In accumulated other comprehensive loss as of December 31, 202531 8 39 
The accumulated benefit obligations were as follows:
Pension BenefitsOther Long-Term Benefits
December 31,
2025		December 31,
2024		December 31,
2025		December 31,
2024
Accumulated benefit obligations9748807145

For pension plans and other long-term benefits with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $570 million and $203 million, respectively, as of December 31, 2025 and $494 million and $175 million, respectively, as of December 31, 2024.
For pension plans with projected benefit obligations in excess of plan assets, the benefit obligation and fair value of plan assets were $1,050 million and $516 million, respectively, as of December 31, 2025 and $967 million and $492 million, respectively, as of December 31, 2024.
The components of the net periodic benefit cost included the following:
Pension BenefitsOther Long-term Benefits
Year ended
December 31,
2025		Year ended
December 31,
2024		Year ended
December 31,
2023		Year ended
December 31,
2025		Year ended
December 31,
2024		Year ended
December 31,
2023
Service cost39 32 28 26 23 17 
Interest cost38 36 35 4 3 3 
Expected return on plan assets(31)(29)(24)— — — 
Amortization of actuarial net loss (gain)9 8 6 3 1 (2)
Amortization of prior service cost— — 1 — — — 
Effect of settlement2 — 1 — — — 
Effect of curtailment1 — — — — — 
Net periodic benefit cost58 47 47 33 27 18 

Pension benefits components other than service cost, recognized outside of operating income in “Other components of pension benefit costs” in the Company’s consolidated statements of income, were $19 million, $15 million and $19 million in the years ended December 31, 2025, 2024 and 2023, respectively.
The weighted average assumptions used to determine the benefit obligation and the periodic benefit costs for pension plans and other long-term benefits were as follows:
202520242023
Benefit obligation
Discount rate3.97 %3.86 %3.73 %
Salary increase rate2.78 %2.40 %2.17 %
Net periodic benefit cost
Discount rate3.86 %3.73 %4.18 %
Salary increase rate2.40 %2.17 %2.31 %
Expected long-term rates of return on plan assets4.77 %3.01 %2.66 %

The discount rate was determined by reference to market yields on high quality long-term corporate bonds applicable to the respective country of each plan, with terms consistent with the terms of the benefit obligations. In developing the expected long-term rate of return on assets, the Company modelled the expected long-term rates of return for broad categories of investments held by the plan against a number of various potential economic scenarios.
The Company’s pension plan asset allocation as of December 31, 2025 and December 31, 2024 is as follows:
Percentage of Plan Assets
at December
Asset Category20252024
Cash and cash equivalents3 %1 %
Equity securities26 %14 %
Government debt securities11 %10 %
Corporate debt securities13 %14 %
Investments in funds(a)
9 %16 %
Real estate9 %1 %
Other (mainly insurance assets – contracts and
   reserves)		29 %44 %
Total100 %100 %

(a)     As of December 31, 2025, investments in funds were composed of commingled and multi-strategy funds invested in diversified portfolios of fixed income (72%) - mainly corporate bonds, time deposits and money market (4%), equities (22%) and other instruments (2%). As of December 31, 2024, investments in funds were composed of commingled and multi-strategy funds invested in diversified portfolios of fixed income (69%) - mainly corporate bonds, time deposits and money market (15%), equities (14%) and other instruments (2%).
As of December 31, 2025, the Company’s plan asset allocation was in line with the targets set for each plan.
The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as of December 31, 2025 is as follows:
TotalQuoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents17 17 — — 
Equity securities185 72 97 16 
Government debt securities80 — 80 — 
Corporate debt securities95 — 95 — 
Investment funds65 17 47 1 
Real estate (1)
62 — 8 54 
Other (mainly insurance contracts and other alternative investments) (2)
213 — 10 203 
TOTAL717 106 337 274 
(1)    Level 3 real estate assets are valued at their earnings value, which is based on the capitalization of sustainably realizable rents, specifically from the rental status as at the balance sheet date.
(2)    In 2025, Trustees of the United Kingdom pension plans entered into an agreement with an insurer for the bulk annuity purchase of the plans, covering 100% of the plan’s members. This agreement, or buy-in, resulted in an exchange of plan assets for an annuity that covers the plan’s future projected benefit obligations. The initial value equals the premium paid to the insurer, and subsequent fair-value changes reflect current buy-in pricing assumptions (inflation and discount rates tied to gilt curves). The largest component of other assets reflect those bulk annuity contracts (buy-ins).
The Company’s detailed pension plan asset allocation including the fair-value measurements of those plan assets as of December 31, 2024 is as follows:

TotalQuoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents7 7 — — 
Equity securities91 1 90 — 
Government debt securities63 — 63 — 
Corporate debt securities94 — 77 17 
Investment funds106 16 90 — 
Real estate10 — 10 — 
Other (mainly insurance assets –
   contracts and reserves)		275 — 60 215 
TOTAL646 24 390 232 

For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2025 and December 31, 2025 is presented as follows:
Fair Value
Measurements
using
Significant
Unobservable
Inputs
(Level 3)
January 1, 2025232 
Contributions (employer and employee)7 
Actual return on plan assets (b)
13 
Net benefit payments (a)
(4)
Net transfers in (out of) Level 3 (d)
10 
Foreign currency translation adjustment (c)
16 
December 31, 2025274 

(a)    Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees.
(b)    Included in non operating expenses in the consolidated statement of income.
(c)    Unrealized losses included in the consolidated statement of comprehensive income.
(d)    Net transfers in (out of) Level 3 primarily reflect the addition of insurance buy-in contracts in the United Kingdom, partially offset by the transfer out of assets in connection with a change from a fully insured to a semi-autonomous arrangement in the Swiss main plan with assets mainly composed of corporate and government bonds, real estate, and equities.
For plan assets measured at fair value using significant unobservable inputs (Level 3), the reconciliation between January 1, 2024 and December 31, 2024 is presented as follows:
Fair Value
Measurements
using
Significant
Unobservable
Inputs
(Level 3)
January 1, 2024233 
Contributions (employer and employee)25 
Actual return on plan assets (b)
15 
Net benefit payments (a)
(13)
Settlements (b)
(11)
Foreign currency translation adjustment (c)
(17)
December 31, 2024232 


(a)    Net cash flows between benefits paid from the insurance contracts and benefits transferred into the insurance contracts by employees.
(b)    Included in non operating expenses in the consolidated statement of income.
(c)    Unrealized gains included in the consolidated statement of comprehensive income.
The Company’s investment strategy for its pension plans is to optimize the long-term investment return on plan assets in relation to the liability structure to maintain an acceptable level of risk while minimizing the cost of providing pension benefits and maintaining adequate funding levels in accordance with applicable rules in each jurisdiction. The Company’s practice is to periodically conduct a review of its asset allocation strategy, in such a way that the asset allocation is in line with the targeted asset allocation within reasonable boundaries. The Company’s asset portfolios are managed in such a way as to achieve appropriate diversification in line with the asset allocation strategy. The Company does not manage any assets internally.
After considering the funded status of the Company’s defined benefit plans, movements in the discount rate, investment performance and related tax consequences, the Company may choose to make contributions to its pension plans in any given year in excess of required amounts. The Company’s contributions to plan assets were $21 million in 2025 and $25 million in 2024 and the Company expects to contribute $31 million to plan assets in 2026.
The Company’s estimated future benefit payments as of December 31, 2025 are as follows:
YearsPension
Benefits		Other
Long-term
Benefits
2026794
20277713
20286312
20296813
20307515
From 2031 to 203543072
The Company has certain defined contribution plans, which accrue benefits for employees on a pro-rata basis during their employment period based on their individual salaries. The Company’s accrued benefits related to defined contribution pension plans for $30 million as of December 31, 2025 and $25 million as of December 31, 2024. The annual cost of these plans amounted to approximately $119 million in 2025, $117 million in 2024 and $114 million in 2023.