v3.25.4
Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Pension, Postretirement and Supplemental Retirement Plans
The following tables provide certain information regarding the Company's pension plans as of December 31, 2025 and 2024. In addition to the defined benefit pension plan information shown below, pension and other postretirement benefit plan liabilities on the Consolidated Balance Sheets includes other immaterial postretirement benefit plan and supplemental retirement plan liabilities.
Defined Benefit Pension Plans
(Dollars in millions)20252024
Change in benefit obligation:
Benefit obligation at beginning of year$127$165
Interest cost77
Actuarial loss (gain)3(4)
Benefits paid(1)
(8)(41)
Benefit obligation at end of year$129$127
Change in plan assets:
Fair value of plan assets at beginning of year$100$134
Actual return on plan assets8—
Employer contributions127
Benefits paid(1)
(8)(41)
Fair value of plan assets at end of year112100
Funded status of the plans at year end$(17)$(27)
________________
(1)The 2024 amounts include the purchase of group annuity contracts to transfer certain benefit obligations and related plan assets of $24 million to an insurance company and lump sum payments to certain participants of $8 million.
Schedule of Amounts Recognized in Balance Sheet
The amounts recognized in the Consolidated Balance Sheets as of December 31, 2025 and 2024 consist of:
Defined Benefit Pension Plans
(Dollars in millions)20252024
Noncurrent assets$1$2
Noncurrent liabilities(18)(29)
Net liability recognized
$(17)$(27)
Schedule of Amounts Recognized In Accumulated Other Comprehensive Loss (Before Taxes)
Amounts recognized in accumulated other comprehensive loss (before taxes) at December 31, 2025 and 2024 consist of:
Defined Benefit Pension Plans
(Dollars in millions)20252024
Net actuarial loss (gain)$28$30
Total amount recognized in accumulated other comprehensive loss$28$30
Schedule of Pension Plans with ABO and PBO in Excess of the Fair Value of Plan Assets The table below presents information for the pension plans with an ABO and PBO in excess of the fair value of plan assets at December 31, 2025 and 2024:
(Dollars in millions)20252024
Projected benefit obligation$119 $144 
Accumulated benefit obligation119 144 
Fair value of plan assets101 113 
Schedule of Weighted Average Actuarial Assumptions
The following table summarizes the weighted average actuarial assumptions used to determine our benefit obligations at December 31, 2025 and 2024:
Defined Benefit Pension Plans
20252024
Rate assumptions
Discount rate5.2%5.5%
Expected long-term return on plan assets5.8%6.4%
The following table summarizes the weighted average actuarial assumptions used to determine our net periodic benefit cost of the pension plans for the years ended December 31, 2025, 2024 and 2023:
Defined Benefit Pension Plans
202520242023
Rate assumptions
Discount rate5.5 %4.8%5.0%
Expected long-term return on plan assets6.4 %6.5%7.2%
Schedule of Net Benefit Costs
The following table summarizes the components of net periodic benefit cost for the Company's pension plans for the years ended December 31, 2025, 2024 and 2023. Net actuarial gains and losses are amortized to expense when they exceed the 10% accounting corridor, based on the greater of the
plan assets or benefit obligations, over the average future lifetime for all plans that are frozen, and over the average remaining service period for active plans.
Defined Benefit Pension Plans
(Dollars in millions)202520242023
Interest cost$7 $7 $8 
Expected return on plan assets(4)(5)(7)
Amortization of net actuarial loss1 1 1 
Net periodic benefit cost
$4 $3 $2 
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income
The following table summarizes the other changes in plan assets and benefit obligations recognized in other comprehensive income for the Company's pension plans for the years ended December 31, 2025, 2024 and 2023:
Defined Benefit Pension Plans
(Dollars in millions)202520242023
Net actuarial (gain) loss$(1)$1 $1 
Amortization of net actuarial loss from prior years
(1)(1)(1)
Total recognized in other comprehensive income
$(2)$— $— 
Schedule of Allocation of Plan Assets
The table below represents all of the Company's funded pension plans' weighted average asset allocation at December 31, 2025 and 2024 by asset category:
Asset Allocation
20252024
Asset Category
Equity securities— %18 %
Debt securities94 %72 %
Other, primarily cash and cash equivalents, and hedge funds6 %10 %
The table below presents the target allocation ranges for each major asset category for the Company's pension plans for the years ended December 31, 2025 and 2024:
Target Asset Allocation Range
20252024
Asset Category
Equity securities
0%
11% - 19%
Debt securities
96% - 100%
75% - 91%
Other, primarily cash and cash equivalents and hedge funds
0% - 4%
0% - 4%
Schedule of Fair Value of Category of Plan Assets
The following tables provides the fair value of plan assets held by our pension plans by asset category and by fair value hierarchy level.
December 31, 2025
(Dollars in millions)Level 1Level 2Level 3Total
Asset category
Investments measured at fair value:
Collective trust funds$— $112 $— $112 
Total$— $112 $— $112 
December 31, 2024
(Dollars in millions)Level 1Level 2Level 3Total
Asset category
Investments measured at fair value:
Cash and cash equivalents$8 $— $— $8 
Equity securities6 — — 6 
Collective trust funds— 100 — 100 
Total$14 $100 $— $114 
Schedule of Expected Benefit Payments
The following table presents expected pension benefit payments over the next ten years:
(Dollars in millions)
Year Ending December 31,
Defined Benefit Pension Plans
2026$9 
20279 
202810 
202910 
203010 
2031-203549