Annual report [Section 13 and 15(d), not S-K Item 405]

COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

v3.25.4
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Net Periodic Benefit Cost for Pension and Postretirement Benefit Plans
Information about net periodic benefit cost for the company-sponsored pension and postretirement defined benefit plans is as follows (in millions):
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2025 2024 2023 2025 2024 2023 2025 2024 2023
Net Periodic Benefit Cost:
Service cost $ 1,124  $ 1,240  $ 1,172  $ 17  $ 20  $ 20  $ 37  $ 42  $ 43 
Interest cost 2,718  2,574  2,508  109  109  116  65  66  66 
Expected return on plan assets (3,130) (3,085) (2,967) (7) (4) (12) (82) (83) (84)
Amortization of prior service cost 156  152  106  1  1  2  1  1  1 
Actuarial (gain) loss —  673  393  —  —  —  —  (8) (42)
Curtailment and settlement (gain) loss —  —  —  —  —  —  —  —  8 
Net periodic benefit cost $ 868  $ 1,554  $ 1,212  $ 120  $ 126  $ 126  $ 21  $ 18  $ (8)
Weighted Average Actuarial Assumptions Used Disclosure
The table below provides the weighted-average actuarial assumptions used to determine the net periodic benefit cost:
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2025 2024 2023 2025 2024 2023 2025 2024 2023
Service cost discount rate 5.88  % 5.42  % 5.79  % 6.18  % 5.80  % 6.06  % 4.82  % 4.59  % 5.09  %
Interest cost discount rate 5.88  % 5.42  % 5.79  % 6.18  % 5.80  % 6.06  % 4.69  % 4.56  % 5.02  %
Rate of compensation increase 3.25  % 3.25  % 3.25  % N/A N/A N/A 3.04  % 3.19  % 3.20  %
Expected return on plan assets 7.65  % 7.17  % 7.07  % 6.92  % 6.36  % 6.62  % 4.63  % 4.54  % 5.13  %
Cash balance interest credit rate 4.30  % 3.83  % 4.21  % N/A N/A N/A 3.09  % 3.31  % 3.69  %
The table below provides the weighted-average actuarial assumptions used to determine the benefit obligations of our plans:
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2025 2024 2025 2024 2025 2024
Discount rate 5.84  % 5.88  % 5.69  % 6.18  % 4.64  % 4.45  %
Rate of compensation increase 3.25  % 3.25  % N/A N/A 2.76  % 3.04  %
Cash balance interest credit rate 4.84  % 4.30  % N/A N/A 3.13  % 3.09  %
Schedule of One Basis Point Change in Discount Rate on the Projected Benefit Obligation
As of December 31, 2025, the impact of each basis point change in the discount rate on the projected benefit obligation of our pension and postretirement medical benefit plans was as follows (in millions):
  Increase (Decrease) in the Projected Benefit Obligation
  Pension Benefits Postretirement Medical Benefits
One basis point increase in discount rate $ (58) $ (1)
One basis point decrease in discount rate $ 61  $ 1 
Funded Status as of the Respective Measurement Dates in Each Year and the Amounts Recognized in Balance Sheet
The following table discloses the funded status of our plans and the amounts recognized in our consolidated balance sheets as of December 31 (in millions):
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2025 2024 2025 2024 2025 2024
Funded Status:
Fair value of plan assets $ 43,689  $ 41,499  $ 72  $ 119  $ 1,873  $ 1,778 
Benefit obligation (48,472) (46,559) (1,822) (1,850) (1,609) (1,500)
Funded status recognized as of December 31
 $ (4,783) $ (5,060) $ (1,750) $ (1,731) $ 264  $ 278 
Funded Status Recognized in our Balance Sheets:
Other non-current assets $ —  $ —  $ —  $ —  $ 484  $ 480 
Other current liabilities (28) (27) (148) (100) (10) (7)
Pension and postretirement benefit obligations (4,755) (5,033) (1,602) (1,631) (210) (195)
Net liability as of December 31
 $ (4,783) $ (5,060) $ (1,750) $ (1,731) $ 264  $ 278 
Amounts Recognized in AOCI (1):
Unrecognized net prior service cost $ (1,211) $ (1,251) $ —  $ (1) $ (4) $ (5)
Unrecognized net actuarial gain (loss) (2,740) (2,686) 48  131  91  107 
Gross unrecognized cost as of December 31
 (3,951) (3,937) 48  130  87  102 
Deferred tax asset at December 31 958  956  (12) (32) (27) (32)
Net unrecognized cost as of December 31
 $ (2,993) $ (2,981) $ 36  $ 98  $ 60  $ 70 
(1)    Accumulated Other Comprehensive Income (Loss)
Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets for Pension Plans With an Accumulated Benefit Obligation in Excess of Plan Assets
As of December 31, 2025 and 2024, the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets for pension plans with benefit obligations in excess of plan assets were as follows (in millions):
  Projected Benefit Obligation
Exceeds the Fair Value of Plan Assets		 Accumulated Benefit Obligation
Exceeds the Fair Value of Plan Assets
2025 2024 2025 2024
U.S. Pension Benefits:
Projected benefit obligation $ 48,472  $ 46,559  $ 48,472  $ 46,559 
Accumulated benefit obligation 48,445  46,526  48,445  46,526 
Fair value of plan assets 43,689  41,499  43,689  41,499 
International Pension Benefits:
Projected benefit obligation $ 379  $ 337  $ 318  $ 281 
Accumulated benefit obligation 345  301  296  255 
Fair value of plan assets 159  135  105  88 
Reconciliation of the Changes in the Plans' Benefit Obligations and Fair Value of Plan Assets
The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of plan assets as of the respective measurement dates in each year (in millions):
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2025 2024 2025 2024 2025 2024
Benefit Obligations:
Projected benefit obligation at beginning of year $ 46,559  $ 47,712  $ 1,850  $ 1,974  $ 1,500  $ 1,601 
Service cost 1,124  1,240  17  20  37  42 
Interest cost 2,718  2,574  109  109  65  66 
Gross benefits paid (2,678) (2,604) (241) (284) (64) (55)
Plan participants’ contributions —  —  —  39  4  4 
Plan amendments(1)
116  76  —  —  —  — 
Actuarial (gain)/loss 633  (2,438) 87  (7) (42) (58)
Foreign currency exchange rate changes —  —  —  —  108  (99)
Curtailments and settlements —  —  —  —  (2) (4)
Other —  (1) —  (1) 3  3 
Projected benefit obligation at end of year $ 48,472  $ 46,559  $ 1,822  $ 1,850  $ 1,609  $ 1,500 
(1)    Plan amendments in 2025 were related to the collective bargaining agreement with the Independent Pilots Association. Plan amendments in 2024 were related to collective bargaining agreements with the Teamsters.
The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of plan assets as of the respective measurement dates in each year (in millions):
  U.S. Pension Benefits U.S. Postretirement
Medical Benefits		 International
Pension Benefits
  2025 2024 2025 2024 2025 2024
Fair Value of Plan Assets:
Fair value of plan assets at beginning of year $ 41,499  $ 43,491  $ 119  $ 98  $ 1,778  $ 1,893 
Actual return (loss) on plan assets
 3,708  (615) 10  (2) 25  41 
Employer contributions 1,159  1,228  183  269  19  27 
Plan participants’ contributions —  —  —  39  4  4 
Gross benefits paid (2,678) (2,604) (241) (284) (64) (55)
Foreign currency exchange rate changes —  —  —  —  114  (118)
Curtailments and settlements —  —  —  —  (2) (4)
Other 1  (1) 1  (1) (1) (10)
Fair value of plan assets at end of year $ 43,689  $ 41,499  $ 72  $ 119  $ 1,873  $ 1,778 
Fair Values of U.S. Pension and Postretirement Benefit Plan Assets by Asset Category as Well as the Percentage That Each Category Comprises of Total Plan Assets and the Respective Target Allocations
The fair values of U.S. and international pension and postretirement benefit plan assets by asset category as of December 31, 2025 and 2024 are presented below (in millions), as well as the percentage that each category comprises of our total plan assets and the respective target allocations. The asset categories within equity securities, fixed income securities, and alternative and other investments in the table below have been collapsed from prior year presentation to align with the nature, characteristics, and type of underlying risk of those assets. There were no transfers between asset categories.
December 31, 2025
Total
Assets(1)
Level 1 Level 2 Level 3 Percentage of Plan Assets
% Target
Allocation
Asset Category (U.S. Plans):
Cash and cash equivalents(3)
$ 3,649  $ 3,427  $ 222  $ —  8.3  %
1-7%
Equity securities 6,842  3,834  3,008  —  15.6  %
15-45%
Fixed income securities 21,080  13,218  7,805  57  48.2  %
30-73%
Alternative and other investments(1):
Hedge funds 3,728  —  2,097  —  8.5  %
3-13%
Real estate 2,067  —  —  —  4.7  %
3-15%
Private equity, private debt, and other investments 6,378  —  117  —  14.6  %
5-29%
Total Alternative and other investments 12,173  —  2,214  — 
Derivatives and other instruments, net:
Equity risk (43) (17) (26) —  (0.1) %
Interest rate risk (9) (169) 160  —  —  %
Other risk(2)
69  —  69  —  0.2  %
Total Derivatives and other instruments 17  (186) 203  — 
Total U.S. plan assets $ 43,761  $ 20,293  $ 13,452  $ 57  100.0  %
Asset Category (International Plans):
Cash and cash equivalents $ 131  $ 131  $ —  $ —  7.0  %
1-10%
Equity securities 179  28  151  —  9.5  %
1-10%
Fixed income securities 1,259  254  1,005  —  67.2  %
50-75%
Alternative and other investments(1):
Real estate 67  —  19  24  3.6  %
1-10%
Private equity, private debt, and other investments 237  —  211  16  12.7  %
10-35%
Total International plan assets $ 1,873  $ 413  $ 1,386  $ 40  100.0  %
Total plan assets $ 45,634  $ 20,706  $ 14,838  $ 97 
(1)    Includes certain investments that are measured at NAV per share (or its equivalent).
(2)    Includes credit risk, foreign currency exchange risk and commodity risk.
(3)    Includes $1.6 billion of cash held as collateral for market exposures, which is not subject to the target allocations.
December 31, 2024
Total
Assets(1)
Level 1 Level 2 Level 3 Percentage of
Plan Assets
% Target
Allocation
Asset Category (U.S. Plans):
Cash and cash equivalents(3)
$ 5,716  $ 5,450  $ 266  $ —  13.7  %
1-7%
Equity securities 6,979  3,270  3,709  —  16.8  %
15-45%
Fixed income securities 19,643  13,375  6,247  21  47.2  %
30-73%
Alternative and other investments(1):
Hedge funds 2,034  —  538  —  4.9  %
3-13%
Real estate 2,674  301  77  —  6.4  %
3-15%
Private equity, private debt, and other investments 6,508  —  195  —  15.6  %
5-29%
Total Alternative and other investments 11,216  301  810  — 
Derivative and other instruments, net:
Equity risk contracts (392) (99) (294) —  (0.9) %
Interest rate risk contracts (1,619) (442) (1,177) —  (3.9) %
Other risk(2)
75  2  73  —  0.2  %
Total Derivative and other instruments (1,936) (539) (1,398) — 
Total U.S. plan assets $ 41,618  $ 21,857  $ 9,634  $ 21  100.0  %
Asset Category (International Plans):
Cash and cash equivalents $ 127  $ 127  $ —  $ —  7.1  %
1-10%
Equity securities 165  23  142  —  9.3  %
1-10%
Fixed income securities 1,202  243  959  —  67.6  %
50-75%
Alternative and other investments(1):
Real estate 62  —  17  23  3.5  %
1-10%
Private equity, private debt, and other investments 222  —  189  18  12.5  %
10-35%
Total International plan assets $ 1,778  $ 393  $ 1,307  $ 41  100.0  %
Total plan assets $ 43,396  $ 22,250  $ 10,941  $ 62 
(1)    Includes certain investments that are measured at NAV per share (or its equivalent).
(2)    Includes credit risk, foreign currency exchange risk and commodity risk.
(3)    $2.7 billion of cash held as collateral for market exposures, which is not subject to the target allocations.
Fair Value Measurement of Plan Assets Using Significant Unobservable Inputs (Level 3)
The following table presents the changes in the Level 3 instruments measured on a recurring basis for 2025 and 2024 (in millions):
Fixed Income Securities
Alternative and Other Investments
 Total
Balance as of January 1, 2024
 $ —  $ 80  $ 80 
Actual Return on Assets:
Assets held at end of year
 (1) 1  — 
Assets sold during the year
 4  (12) (8)
Purchases 38  —  38 
Sales (10) (28) (38)
Transfers Into (Out of) Level 3 (10) —  (10)
Balance as of December 31, 2024
 $ 21  $ 41  $ 62 
Actual Return on Assets:
Assets held at end of year
 —  2  2 
Assets sold during the year
 2  —  2 
Purchases 55  5  60 
Sales (6) (8) (14)
Transfers Into (Out of) Level 3 (15) —  (15)
Balance as of December 31, 2025
 $ 57  $ 40  $ 97 
Expected Cash Flows for Pension and Postretirement Benefit Plans
Information about expected cash flows for our pension and postretirement medical benefit plans is as follows (in millions):
U.S.
Pension Benefits		 U.S. Postretirement
Medical Benefits		 International Pension Benefits
Expected Employer Contributions:
2026 to plan trust $ 1,080  $ 5  $ 8 
2026 to plan participants 29  183  10 
Expected Benefit Payments:
2026 $ 2,636  $ 196  $ 63 
2027 2,762  187  70 
2028 2,871  177  77 
2029 2,976  167  82 
2030 3,081  158  89 
2031-2035 16,847  693  524