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

TRANSFORMATION STRATEGY COSTS (Tables)

v3.25.4
TRANSFORMATION STRATEGY COSTS (Tables)
12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
The table below presents Transformation Strategy Costs for 2025, 2024 and 2023 (in millions):
2025 2024 2023
Compensation and benefits $ 420  $ 213  $ 337 
Total other expenses 173  109  98 
Total Transformation Strategy Costs $ 593  $ 322  $ 435 
Income Tax Benefit from Transformation Strategy Costs (1)
(141) (77) (102)
After-Tax Transformation Strategy Costs $ 452  $ 245  $ 333 
(1)    The income tax effects of Transformation Strategy Costs are calculated by multiplying the amount of the adjustments by the statutory tax rates applicable in each tax jurisdiction.
Transformation Strategy Costs during the periods presented related to our Transformation 1.0, Transformation 2.0, Fit to Serve and Network Reconfiguration and Efficiency Reimagined programs. Total costs by program are shown in the table below (in millions):
2025 2024 2023
Transformation Strategy Costs:
Transformation 1.0 $ —  $ —  $ 13 
Transformation 2.0
Spans and layers —  —  86 
Business portfolio review (18) 29  84 
Financial systems 55  54  36 
Other initiatives —  — 
Transformation 2.0 total 37  83  210 
Fit to Serve 47  204  212 
Network Reconfiguration and Efficiency Reimagined
509  35  — 
Total Transformation Strategy Costs $ 593  $ 322  $ 435