(Dollars in millions) | 2025 | 2024 | 2023 |
Operating lease cost | $ 48 | $ 47 | $ 54 |
Short-term lease cost | 7 | 6 | 8 |
Variable lease cost | 7 | 6 | 5 |
Sublease income | (1 ) | (1 ) | (1 ) |
Total lease cost | $ 62 | $ 58 | $ 66 |
Year ended or as of | ||
December 31, | ||
(Dollars in millions) | 2025 | 2024 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 49 | $ 45 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 46 | 27 |
Weighted-average remaining lease term - operating leases | 8.7 years | 8.9 years |
Weighted-average discount rate - operating leases | 3.2 % | 3.3 % |
(Dollars in millions) | Maturities |
2026 | $ 41 |
2027 | 31 |
2028 | 21 |
2029 | 15 |
2030 | 10 |
Thereafter | 72 |
Total operating lease payments | 189 |
Less imputed interest | (24 ) |
Total operating lease liabilities | $ 165 |
| DECEMBER 31, 2025 | DECEMBER 31, 2024 | |||||
| Fair Value Measurements | Fair Value Measurements | |||||
Derivative asset | Derivative liability | Derivative asset | Derivative liability | |||
Nominal | (Other current | (Other current | Nominal | (Other current | (Other current | |
(Dollars in millions) | volume | assets) | liabilities) | volume | assets) | liabilities) |
DERIVATIVES NOT DESIGNATED | ||||||
AS HEDGING INSTRUMENTS | ||||||
Foreign exchange swaps, less | ||||||
than 6 months | $ 3,294 1) | $ 12 2) | $ 24 3) | $ 2,916 4) | $ 22 5) | $ 42 6) |
TOTAL DERIVATIVES NOT | ||||||
DESIGNATED AS HEDGING | ||||||
INSTRUMENTS | $ 3,294 | $ 12 | $ 24 | $ 2,916 | $ 22 | $ 42 |
DECEMBER 31, 2025 | DECEMBER 31, 2024 | |||
CARRYING | FAIR | CARRYING | FAIR | |
(Dollars in millions) | VALUE 1) | VALUE | VALUE 1) | VALUE |
LONG-TERM DEBT | ||||
Bonds | $ 1,715 | $ 1,736 | $ 1,512 | $ 1,527 |
Loans | 17 | 17 | 10 | 10 |
2 | 2 | 0 | 0 | |
TOTAL | $ 1,734 | $ 1,755 | $ 1,522 | $ 1,537 |
SHORT-TERM DEBT | ||||
Short-term portion of long-term debt | $ 285 | $ 287 | $ 273 | $ 275 |
Overdrafts and other short-term debt | 134 | 134 | 114 | 114 |
TOTAL | $ 419 | $ 421 | $ 387 | $ 389 |
| DECEMBER 31, 2025 | DECEMBER 31, 2024 | |||||
| Fair Value Measurements | Fair Value Measurements | |||||
Derivative asset | Derivative liability | Derivative asset | Derivative liability | |||
Nominal | (Other current | (Other current | Nominal | (Other current | (Other current | |
(Dollars in millions) | volume | assets) | liabilities) | volume | assets) | liabilities) |
DERIVATIVES NOT DESIGNATED | ||||||
AS HEDGING INSTRUMENTS | ||||||
Foreign exchange swaps, less | ||||||
than 6 months | $ 3,294 1) | $ 12 2) | $ 24 3) | $ 2,916 4) | $ 22 5) | $ 42 6) |
TOTAL DERIVATIVES NOT | ||||||
DESIGNATED AS HEDGING | ||||||
INSTRUMENTS | $ 3,294 | $ 12 | $ 24 | $ 2,916 | $ 22 | $ 42 |
INCOME BEFORE INCOME TAXES (Dollars in millions) | 2025 | 2024 | 2023 |
U.S. | $ (95 ) | $ (51 ) | $ 29 |
Non-U.S. | 1,081 | 926 | 583 |
Total | $ 986 | $ 875 | $ 612 |
PROVISION (BENEFIT) FOR INCOME TAXES (Dollars in millions) | 2025 | 2024 | 2023 |
Current | |||
U.S. federal | $ 6 | $ (6 ) | $ 19 |
Non-U.S. | 256 | 260 | 210 |
U.S. state and local | 1 | 3 | 3 |
Deferred | |||
U.S. federal | (15 ) | (11 ) | (7 ) |
Non-U.S. | 5 | (16 ) | (101 ) |
U.S. state and local | (3 ) | (3 ) | (1 ) |
Total income tax expense | $ 250 | $ 227 | $ 123 |
EFFECTIVE INCOME TAX RATE (AFTER ADOPTION OF ASU 2023-09) | ||
(Dollars in millions) | YEAR ENDED DECEMBER 31, 2025 | |
US Federal Statutory Tax Rate | $ 207 | 21.0 % |
State and Local Income Taxes, Net of Federal Income Tax Effect | (1 ) | (0.1 %) |
Effect of Changes in Tax Laws or Rates Enacted in the Current Period | 0 | 0.0 % |
Effect of Cross Border Tax Laws | ||
Global Intangible Low Taxed Income | 14 | 1.4 % |
Tax Credits | (7 ) | (0.7 %) |
Changes in Valuation Allowances | 0 | 0.0 % |
Non-taxable or Non-deductible items | 1 | 0.1 % |
Other Domestic Federal Tax Items | 0 | 0.0 % |
Foreign Tax Effects | ||
China | ||
Statutory tax rate difference between China and United States | 11 | 1.1 % |
Withholding Taxes | 25 | 2.5 % |
Changes in Valuation Allowances | 1 | 0.1 % |
Other | (4 ) | (0.4 %) |
Germany | ||
Changes in Valuation Allowances | (13 ) | (1.3 %) |
Other | (1 ) | (0.1 %) |
India | ||
Changes in Valuation Allowances | (2 ) | (0.2 %) |
Settlement of Tax Audits | 10 | 1.0 % |
Other | 7 | 0.7 % |
Mexico | ||
Other | 19 | 1.9 % |
Sweden | ||
Foreign Tax Credit | (23 ) | (2.3 %) |
Other | (4 ) | (0.4 %) |
Turkey | ||
Other Deferred Tax Adjustments | (12 ) | (1.2 %) |
Other | 4 | 0.4 % |
Other Foreign Jurisdictions | ||
Enacted changes in tax laws or rates | 2 | 0.2 % |
Change in Valuation Allowances | (3 ) | (0.3 %) |
Other Adjustments | 21 | 2.2 % |
Worldwide Changes in unrecognized tax benefits | (2 ) | (0.2 %) |
Other Adjustments | 0 | 0.0 % |
Total | 250 | 25.4 % |
EFFECTIVE INCOME TAX RATE (PRIOR TO ADOPTION OF ASU 2023-09) (%) | 2024 | 2023 |
U.S. federal income tax rate | 21.0 % | 21.0 % |
Non-Deductible Expenses | 0.9 | 1.8 |
Foreign tax rate variances | 2.2 | 4.6 |
Tax credits | (2.1 ) | (3.9 ) |
Change in Valuation Allowances | 0.5 | 11.6 |
Changes in tax reserves | (2.1 ) | 2.7 |
Provision to Return | (1.5 ) | (0.2 ) |
Earnings of equity investments | (0.2 ) | (0.2 ) |
Withholding taxes | 5.6 | 5.2 |
State taxes, net of federal benefit | 0.0 | 0.3 |
Tax Audits | (0.5 ) | 0.0 |
Other Deferred Tax Adjustments 1) | 0.0 | (26.7 ) |
U.S. FDII Deduction | 0.0 | (0.4 ) |
U.S. GILTI Tax | 1.9 | 3.4 |
Impact of Translation Rates | 0.6 | 1.1 |
Other, net | (0.3 ) | (0.2 ) |
Effective income tax rate | 26.0 % | 20.1 % |
INCOME TAXES PAID (Dollars in millions) | 2025 | 2024 | 2023 |
US Federal | $ (13 ) | ||
US State and Local | 4 | ||
Foreign: | |||
China | 90 | ||
India | 21 | ||
Japan | 23 | ||
Korea | 13 | ||
Mexico | 24 | ||
Romania | 15 | ||
Thailand | 34 | ||
Other 1) | 19 | ||
Foreign Subtotal | 239 | ||
Total cash paid for income taxes (net of refunds) | $ 230 | ||
Total cash paid for income taxes (Prior to ASU 2023-09) | $ 207 | $ 192 |
UNRECOGNIZED TAX BENEFITS (Dollars in millions) | 2025 | 2024 | 2023 |
Unrecognized tax benefits at beginning of year | $ 35 | $ 83 | $ 67 |
Increases as a result of tax positions taken during a prior period | 1 | 0 | 8 |
Increases as a result of tax positions taken during the current period | 8 | 4 | 7 |
Decreases as a result of tax positions taken during a prior period | 0 | (6 ) | 0 |
Decreases relating to settlements with taxing authorities | (4 ) | (6 ) | 0 |
Decreases resulting from the lapse of the applicable statute of limitations | (4 ) | (39 ) | 0 |
Translation Difference | 0 | (1 ) | 1 |
Total unrecognized tax benefits at end of year | $ 36 | $ 35 | $ 83 |
UNRECOGNIZED TAX BENEFITS (Dollars in millions) | 2025 | 2024 | 2023 |
Unrecognized tax benefits at beginning of year | $ 35 | $ 83 | $ 67 |
Increases as a result of tax positions taken during a prior period | 1 | 0 | 8 |
Increases as a result of tax positions taken during the current period | 8 | 4 | 7 |
Decreases as a result of tax positions taken during a prior period | 0 | (6 ) | 0 |
Decreases relating to settlements with taxing authorities | (4 ) | (6 ) | 0 |
Decreases resulting from the lapse of the applicable statute of limitations | (4 ) | (39 ) | 0 |
Translation Difference | 0 | (1 ) | 1 |
Total unrecognized tax benefits at end of year | $ 36 | $ 35 | $ 83 |
DEFERRED TAXES (Dollars in millions) | December 31, | ||
2025 | 2024 | 2023 | |
Assets | |||
Provisions | $ 114 | $ 112 | $ 126 |
Costs capitalized for tax | 110 | 85 | 57 |
Other Deferred Tax Asset 1) | 171 | 158 | 160 |
Property, plant and equipment | 24 | 30 | 11 |
Retirement Plans | 48 | 39 | 40 |
Tax receivables, principally NOL\u2019s | 93 | 99 | 133 |
Deferred tax assets before allowances | 560 | 523 | 527 |
Valuation allowances | (109 ) | (126 ) | (129 ) |
Total | 451 | 397 | 398 |
Liabilities | |||
Distribution taxes | (5 ) | (3 ) | (3 ) |
Other | 0 | 0 | (1 ) |
Total | (5 ) | (3 ) | (4 ) |
Net deferred tax asset | $ 446 | $ 394 | $ 394 |
VALUATION ALLOWANCES AGAINST DEFERRED TAX ASSETS (Dollars in millions) | December 31, | ||
2025 | 2024 | 2023 | |
Allowances at beginning of year | $ 126 | $ 129 | $ 46 |
Benefits reserved current year | 6 | 11 | 81 |
Benefits recognized current year 1) | (34 ) | (6 ) | (2 ) |
Translation difference | 11 | (8 ) | 4 |
Allowances at end of year | $ 109 | $ 126 | $ 129 |
(Dollars in millions) | December 31, | ||
2025 | 2024 | 2023 | |
Receivables | $ 2,250 | $ 2,003 | $ 2,206 |
Allowance for credit losses at beginning of year | (10 ) | (8 ) | (10 ) |
Reversal of (addition to) allowance | (6 ) | (2 ) | (2 ) |
Write-off against allowance | 2 | 0 | 3 |
Translation difference | (1 ) | 0 | (0 ) |
Allowance for credit losses at end of year | (14 ) | (10 ) | (8 ) |
Total receivables, net of allowance | $ 2,236 | $ 1,993 | $ 2,198 |
(Dollars in millions) | December 31, | ||
2025 | 2024 | 2023 | |
Raw material | $ 481 | $ 418 | $ 457 |
Work in progress | 293 | 295 | 347 |
Finished products | 304 | 290 | 296 |
Inventories gross | 1,078 | 1,003 | 1,100 |
Inventory reserve at beginning of year | (82 ) | (89 ) | (91 ) |
Change in reserve, net | 2 | 1 | 3 |
Translation difference | (6 ) | 5 | (0 ) |
Inventory reserve at end of year | (86 ) | (82 ) | (89 ) |
Total inventories, net of reserve | $ 992 | $ 921 | $ 1,012 |
(Dollars in millions) | December 31, | |
2025 | 2024 | |
Equity method investments | $ 16 | $ 13 |
Deferred tax assets | 461 | 412 |
Income tax receivables | 17 | 19 |
Insurance receivables | 6 | 44 |
Other non-current assets | 68 | 60 |
Total other non-current assets | $ 568 | $ 548 |
(Dollars in millions) | December 31, | |
2025 | 2024 | |
Equity method investments | $ 16 | $ 13 |
Deferred tax assets | 461 | 412 |
Income tax receivables | 17 | 19 |
Insurance receivables | 6 | 44 |
Other non-current assets | 68 | 60 |
Total other non-current assets | $ 568 | $ 548 |
(Dollars in millions) | December 31, | ||
2025 | 2024 | Estimated life | |
Land and land improvements | $ 131 | $ 127 | n/a to 15 |
Buildings | 1,174 | 1,038 | 20-40 |
Machinery and equipment | 5,090 | 4,539 | 3-12 |
Construction in progress | 527 | 629 | n/a |
Property, plant and equipment | 6,922 | 6,334 | |
Less accumulated depreciation | (4,506 ) | (4,095 ) | |
Net of depreciation | $ 2,417 | $ 2,239 |
DEPRECIATION INCLUDED IN (Dollars in millions) | 2025 | 2024 | 2023 |
Cost of sales | $ 365 | $ 347 | $ 340 |
Selling, general and administrative expenses | 15 | 13 | 12 |
Research, development and engineering expenses, net | 25 | 26 | 24 |
Total | $ 405 | $ 385 | $ 376 |
December31, | ||
GOODWILL (Dollars in millions) | 2025 | 2024 |
Carrying amount at beginning of year | $ 1,368 | $ 1,378 |
Translation differences | 11 | (10 ) |
Carrying amount at end of year | $ 1,379 | $ 1,368 |
December 31, | ||
AMORTIZABLE INTANGIBLES (Dollars in millions) | 2025 | 2024 |
Gross carrying amount | $ 401 | $ 386 |
Accumulated amortization | (393 ) | (379 ) |
Carrying value | $ 7 | $ 7 |
December31, | ||
GOODWILL (Dollars in millions) | 2025 | 2024 |
Carrying amount at beginning of year | $ 1,368 | $ 1,378 |
Translation differences | 11 | (10 ) |
Carrying amount at end of year | $ 1,379 | $ 1,368 |
December 31, | ||
AMORTIZABLE INTANGIBLES (Dollars in millions) | 2025 | 2024 |
Gross carrying amount | $ 401 | $ 386 |
Accumulated amortization | (393 ) | (379 ) |
Carrying value | $ 7 | $ 7 |
December31, | ||
GOODWILL (Dollars in millions) | 2025 | 2024 |
Carrying amount at beginning of year | $ 1,368 | $ 1,378 |
Translation differences | 11 | (10 ) |
Carrying amount at end of year | $ 1,379 | $ 1,368 |
December 31, | ||
AMORTIZABLE INTANGIBLES (Dollars in millions) | 2025 | 2024 |
Gross carrying amount | $ 401 | $ 386 |
Accumulated amortization | (393 ) | (379 ) |
Carrying value | $ 7 | $ 7 |
As of December 31, | ||
(Dollars in millions) | 2025 | 2024 |
Confirmed obligations outstanding at beginning of the period | $ 335 | $ 345 |
Invoices confirmed during the period | 1,671 | 1,536 |
Confirmed invoices paid during the period | (1,641 ) | (1,546 ) |
Confirmed obligations outstanding at end of the period | $ 365 | $ 335 |
December 31, | ||
(Dollars in millions) | 2025 | 2024 |
Employee-related liabilities | $ 228 | $ 203 |
Variable considerations to customers | 242 | 185 |
Restructuring reserve | 82 | 151 |
Product related liabilities | 87 | 65 |
Other accrued liabilities | 411 | 451 |
Total accrued liabilities | $ 1,050 | $ 1,056 |
| December 31, | |||
(Dollars in millions) | 2025 | 2024 | 2023 |
Reserve at beginning of the period | $ 151 | $ 213 | $ 32 |
Provision - charge | 10 | 20 | 212 |
Provision - reversal | (2 ) | (2 ) | (1 ) |
Cash payments | (91 ) | (69 ) | (35 ) |
Translation difference | 14 | (11 ) | 7 |
Reserve at end of the period | $ 82 | $ 151 | $ 213 |
| December 31, | |||
(Dollars in millions) | 2025 | 2024 | 2023 |
Reserve at beginning of the year | $ 65 | $ 96 | $ 145 |
Addition to reserve | 54 | 16 | 28 |
Reversal of preexisting reserve | 0 | (16 ) | (3 ) |
Cash payments | (36 ) | (30 ) | (74 ) |
Translation difference | 3 | (2 ) | 0 |
Reserve at end of the year | $ 87 | $ 65 | $ 96 |
Total | ||||||||
PRINCIPAL AMOUNT BY EXPECTED MATURITY | long- | |||||||
(dollars in millions) | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | term | Total |
Bonds | $ 285 | $ \u2014 | $ 589 | $ 774 | $ 353 | $ \u2014 | $ 1,715 | $ 2,000 |
Loans | 122 | 9 | 4 | 4 | \u2014 | 2 | 19 | 141 |
Other short-term debt | 12 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 12 |
Total principal amount | $ 419 | $ 9 | $ 593 | $ 778 | $ 353 | $ 2 | $ 1,734 | $ 2,153 |
DIVIDENDS | 2025 | 2024 | 2023 |
Cash dividend paid per share | $ 3.12 | $ 2.74 | $ 2.66 |
Cash dividend declared per share | $ 3.12 | $ 2.74 | $ 2.66 |
OTHER COMPREHENSIVE LOSS / ENDING BALANCE 1) (Dollars in millions) | 2025 | 2024 |
Cumulative translation adjustments | $ (487 ) | $ (629 ) |
Net pension liability | (31 ) | (31 ) |
Total (ending balance) | $ (518 ) | $ (659 ) |
Deferred taxes on the pension liability | $ 9 | $ 10 |
DIVIDENDS | 2025 | 2024 | 2023 |
Cash dividend paid per share | $ 3.12 | $ 2.74 | $ 2.66 |
Cash dividend declared per share | $ 3.12 | $ 2.74 | $ 2.66 |
(Dollars in millions) | 2025 | 2024 | 2023 |
Interest | $ 98 | $ 104 | $ 80 |
Income taxes | 230 | 207 | 192 |
RSUs | 2025 | 2024 | 2023 |
Weighted average fair value at grant date | $ 98.08 | $ 112.16 | $ 91.81 |
Outstanding at beginning of year | 174,147 | 189,966 | 200,764 |
Granted | 89,818 | 64,601 | 96,243 |
Shares issued | (60,317 ) | (75,068 ) | (94,055 ) |
Cancelled/Forfeited/Expired | (8,128 ) | (5,352 ) | (12,986 ) |
Outstanding at end of year | 195,520 | 174,147 | 189,966 |
PSUs | 2025 | 2024 | 2023 |
Weighted average fair value at grant date | $ 96.50 | $ 109.41 | $ 91.80 |
Outstanding at beginning of year | 279,305 | 111,881 | 101,828 |
Change in performance conditions | 139,208 | 147,022 | 18,211 |
Granted | 111,998 | 79,712 | 93,962 |
Shares issued | (84,848 ) | (49,509 ) | (26,331 ) |
Cancelled/Forfeited/Expired | (6,535 ) | (9,801 ) | (75,789 ) |
Outstanding at end of year | 439,127 | 279,305 | 111,881 |
Weighted | ||
average | ||
Number | exercise | |
SOs | of options | price |
Outstanding at December 31, 2022 | 31,111 | $ 70.77 |
Exercised | (15,537 ) | 65.12 |
Cancelled/Forfeited/Expired | (485 ) | 58.63 |
Outstanding at December 31, 2023 | 15,089 | 76.97 |
Exercised | (10,777 ) | 76.53 |
Cancelled/Forfeited/Expired | (915 ) | 69.41 |
Outstanding at December 31, 2024 | 3,397 | 80.40 |
Exercised | (2,881 ) | 0.00 |
Cancelled/Forfeited/Expired | (516 ) | 0.00 |
Outstanding at December 31, 2025 | 0 | $ 0.00 |
OPTIONS EXERCISABLE | ||
At December 31, 2023 | 15,089 | $ 76.97 |
At December 31, 2024 | 3,397 | 80.40 |
At December 31, 2025 | 0 | 0.00 |
U.S. | Non-U.S. | |||
(Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
Benefit obligation at beginning of year | $ 205 | $ 226 | $ 205 | $ 208 |
Service cost | \u2014 | \u2014 | 11 | 10 |
Interest cost | 11 | 11 | 13 | 12 |
Actuarial (gain) loss | 5 | (16 ) | (8 ) | 8 |
Benefits paid | (7 ) | (4 ) | (11 ) | (7 ) |
Plan settlements/curtailments | (8 ) | (12 ) | (3 ) | (9 ) |
Plan amendments | \u2014 | \u2014 | 4 | \u2014 |
Plan combinations | \u2014 | \u2014 | 7 | \u2014 |
Other | \u2014 | \u2014 | 1 | 0 |
Translation difference | \u2014 | \u2014 | 20 | (17 ) |
Benefit obligation at end of year | $ 206 | $ 205 | $ 239 | $ 205 |
Fair value of plan assets at beginning | ||||
of year | $ 194 | $ 204 | $ 64 | $ 70 |
Actual return on plan assets | 18 | 3 | 3 | (4 ) |
Company contributions | 1 | 2 | 14 | 27 |
Benefits paid | (7 ) | (4 ) | (11 ) | (7 ) |
Plan settlements | (8 ) | (12 ) | (3 ) | (20 ) |
Plan combinations | \u2014 | \u2014 | 6 | \u2014 |
Translation difference | \u2014 | \u2014 | 6 | (2 ) |
Fair value of plan assets at end of year | $ 197 | $ 194 | $ 78 | $ 64 |
Pension liability recognized in the | ||||
balance sheet | $ 8 | $ 11 | $ 161 | $ 142 |
| U.S. | |||
(Dollars in millions) | 2025 | 2024 | 2023 |
Service cost | $ \u2014 | $ \u2014 | $ \u2014 |
Interest cost | 11 | 11 | 12 |
Expected return on plan assets | (10 ) | (12 ) | (10 ) |
Amortization of actuarial loss | 0 | 0 | 0 |
Settlement loss | 0 | 1 | 1 |
Net periodic benefit cost | $ 1 | $ (0 ) | $ 3 |
| Non-U.S. | |||
(Dollars in millions) | 2025 | 2024 | 2023 |
Service cost | $ 11 | $ 10 | $ 9 |
Interest cost | 13 | 12 | 10 |
Expected return on plan assets | (4 ) | (3 ) | (3 ) |
Amortization of prior service costs | 1 | 1 | 1 |
Amortization of actuarial loss | 1 | 1 | 1 |
Settlement/curtailment (gain) loss | (0 ) | 14 | 0 |
Net periodic benefit cost | $ 22 | $ 34 | $ 18 |
U.S. | Non-U.S. | |||
(Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
Net actuarial loss | $ 4 | $ 7 | $ 25 | $ 29 |
Prior service cost | \u2014 | \u2014 | 7 | 3 |
Total accumulated other comprehensive loss | ||||
recognized in the balance sheet | $ 4 | $ 7 | $ 32 | $ 33 |
U.S. | Non-U.S. | |||
(Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
Total retirement benefit recognized in accumulated | ||||
other comprehensive loss at beginning of year | $ 7 | $ 15 | $ 33 | $ 24 |
Net actuarial loss (gain) | (2 ) | (7 ) | (6 ) | 16 |
Prior service cost | \u2014 | \u2014 | 4 | \u2014 |
Amortization or curtailment recognition of prior service | ||||
credit (cost) | \u2014 | \u2014 | (1 ) | (1 ) |
Amortization or settlement recognition of net gain (loss) | (0 ) | (1 ) | (1 ) | (4 ) |
Translation difference | \u2014 | \u2014 | 3 | (2 ) |
Total retirement benefit recognized in accumulated | ||||
other comprehensive loss at end of year | $ 4 | $ 7 | $ 32 | $ 33 |
U.S. | Non-U.S. | |||
(Dollars in millions) | 2025 | 2024 | 2025 | 2024 |
Projected Benefit Obligation (PBO) | $ 206 | $ 205 | $ 181 | $ 148 |
Accumulated Benefit Obligation (ABO) | 206 | 205 | 141 | 110 |
Fair value of plan assets | 197 | 194 | 11 | 2 |
U.S. | Non-U.S. 1) | |||
(% Weighted average / % Weighted average range) | 2025 | 2024 | 2025 | 2024 |
Discount rate | 5.22 | 5.60 | 1.30-.9.70 | 1.25-11.00 |
Rate of increases in compensation level | n/a | n/a | 1.50-5.00 | 2.25-5.00 |
| U.S. | |||
(% Weighted average) | 2025 | 2024 | 2023 |
Discount rate | 5.60 | 5.13 | 5.41 |
Rate of increases in compensation level | n/a | n/a | n/a |
Expected long-term rate of return on assets | 5.61 | 6.21 | 5.05 |
| Non-U.S. 1) | |||
(% Weighted average range) | 2025 | 2024 | 2023 |
Discount rate | 1.25-11.00 | 1.00-10.25 | 0.75-9.75 |
Rate of increases in compensation level | 2.25-5.00 | 2.25-5.00 | 2.10-5.00 |
Expected long-term rate of return on assets | 3.00-5.90 | 4.00-4.95 | 4.20-4.80 |
U.S. | U.S. | Non-U.S. | |||
Target | |||||
ASSETS CATEGORY (% Weighted average) | allocation | 2025 | 2024 | 2025 | 2024 |
Equity securities % | 32 | 27 | 30 | 0 | 0 |
Debt instruments % | 68 | 71 | 69 | 58 | 63 |
Other assets % | \u2014 | 1 | 1 | 42 | 37 |
Total % | 100 | 100 | 100 | 100 | 100 |
Fair value measurement at December 31, | ||
(Dollars in millions) | 2025 | 2024 |
Assets at fair value Level 2 | ||
Equity instruments | ||
U.S. Large Cap | $ 6 | $ 6 |
U.S. Mid Cap | 32 | 34 |
U.S. Small Cap | 4 | 5 |
Non-U.S. All Cap | 13 | 13 |
Debt instruments | ||
U.S. Government bonds | 38 | 35 |
U.S Aggregate bonds | 102 | 99 |
Non-U.S. Government bonds | 23 | 21 |
Non-U.S. Corporate bonds | 22 | 20 |
Insurance Contracts | 24 | 15 |
Managed investment funds | 6 | 5 |
Other Investments | 5 | 5 |
Total assets at fair value Level 2 | $ 275 | $ 258 |
PENSION BENEFITS EXPECTED PAYMENTS (dollars in millions) | U.S. | Non-U.S. |
2026 | $ 24 | $ 16 |
2027 | 22 | 16 |
2028 | 22 | 16 |
2029 | 21 | 16 |
2030 | 20 | 18 |
Years 2031-2035 | 79 | 113 |
NET SALES BY REGION (Dollars in millions) | 2025 | 2024 | 2023 |
China | $ 2,095 | $ 2,010 | $ 2,105 |
Asia, excl. China | 2,124 | 2,010 | 1,968 |
Americas | 3,480 | 3,424 | 3,526 |
Europe | 3,116 | 2,946 | 2,877 |
Total | $ 10,815 | $ 10,390 | $ 10,475 |
NET SALES BY PRODUCT (Dollars in millions) | 2025 | 2024 | 2023 |
Airbag, Steering Wheels 1) | $ 7,302 | $ 7,023 | $ 7,055 |
Seatbelt Products 1) | 3,513 | 3,367 | 3,420 |
Total net sales | $ 10,815 | $ 10,390 | $ 10,475 |
LONG-LIVED ASSETS (Dollars in millions) | 2025 | 2024 |
China | $ 628 | $ 621 |
Asia, excl China | 473 | 438 |
Americas | 588 | 541 |
Europe | 899 | 797 |
Total | $ 2,588 | $ 2,397 |
Significant segment expenses / income (Dollars in millions) | 2025 | 2024 | 2023 |
Total direct costs | $ (7,231 ) | $ (7,050 ) | $ (7,208 ) |
Total production overhead costs | (1,510 ) | (1,413 ) | (1,446 ) |
Cost of sales | (8,741 ) | (8,463 ) | (8,654 ) |
Research, development and engineering expenses (gross) | (616 ) | (612 ) | (618 ) |
Engineering income | 202 | 214 | 193 |
Research, development and engineering expenses, net | (413 ) | (398 ) | (425 ) |
2025 | 2024 | 2023 | |
Numerator: | |||
Basic and diluted: | |||
Net income attributable to common shareholders | $ 735 | $ 646 | $ 488 |
Denominator: | |||
Basic weighted average common stock | 76.6 | 80.2 | 85.0 |
Added: Weighted average share awards | 0.3 | 0.2 | 0.2 |
Diluted weighted average common stock | 76.9 | 80.4 | 85.2 |
Net earnings per share - basic | $ 9.59 | $ 8.06 | $ 5.74 |
Net earnings per share - diluted | $ 9.55 | $ 8.04 | $ 5.72 |