What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-01-30 compared with 2025-02-07 · 147 added, 125 removed, 1196 unchanged (19% of the section changed)

28 unchanged sentences

Changes in retirement plans’ funded status 398 208 722

Other comprehensive (loss) income, pretax ( 347 ) 1,145 ( 227 )

Other comprehensive income (loss), pretax 1,149 ( 347 ) 1,145

Provision for income tax, net ( 114 ) ( 12 ) ( 152 )

Other comprehensive (loss) income, net of tax ( 359 ) 993 ( 232 )

Other comprehensive income (loss), net of tax 1,035 ( 359 ) 993

Comprehensive income $ 5,245 $ 3,423 $ 4,308

46 unchanged sentences

Equity-based compensation expense 196 183 181

Deferred income tax benefit ( 86 ) ( 177 ) ( 178 )

Deferred income tax provision (benefit) 256 ( 86 ) ( 177 )

(Increase) decrease in assets, net of effects of business acquisitions:

5 unchanged sentences

Customer advances and deposits ( 4 ) 343 2,415

Income taxes payable 266 ( 209 ) ( 436 )

Other, net ( 658 ) 197 ( 316 )

6 unchanged sentences

Dividends paid ( 1,593 ) ( 1,529 ) ( 1,428 )

Purchases of common stock ( 1,501 ) ( 434 ) ( 1,229 )

Repayment of fixed-rate notes ( 1,500 ) ( 500 ) ( 1,250 )

Proceeds from fixed-rate notes 747 — —

Purchases of common stock ( 637 ) ( 1,501 ) ( 434 )

Other, net ( 207 ) 161 18

Net cash used by financing activities ( 3,190 ) ( 3,369 ) ( 3,094 )

Net cash (used) provided by discontinued operations ( 6 ) ( 4 ) 20

Net (decrease) increase in cash and equivalents ( 216 ) 671 ( 361 )

Net cash used by discontinued operations ( 10 ) ( 6 ) ( 4 )

Net increase (decrease) in cash and equivalents 636 ( 216 ) 671

Cash and equivalents at beginning of year 1,697 1,913 1,242

11 unchanged sentences

Shares purchased — — — ( 434 ) — ( 434 )

Other comprehensive loss — — — — ( 232 ) ( 232 )

Other — — ( 16 ) — — ( 16 )

Other comprehensive income — — — — 993 993

December 31, 2023 482 3,760 39,270 ( 21,054 ) ( 1,159 ) 21,299

3 unchanged sentences

Shares purchased — — — ( 1,509 ) — ( 1,509 )

Other comprehensive income — — — — 993 993

Other comprehensive loss — — — — ( 359 ) ( 359 )

December 31, 2024 482 4,062 41,487 ( 22,450 ) ( 1,518 ) 22,063

3 unchanged sentences

Shares purchased — — — ( 637 ) — ( 637 )

Other comprehensive loss — — — — ( 359 ) ( 359 )

Other comprehensive income — — — — 1,035 1,035

December 31, 2025 $ 482 $ 4,403 $ 44,080 $ ( 22,860 ) $ ( 483 ) $ 25,622

5 unchanged sentences

ship construction and repair;

land combat vehicles, weapons systems and munitions;

land combat vehicles, weapon systems and munitions;

and technology products and services.

12 unchanged sentences

Company-sponsored research and development (R&D) expenses, including Aerospace product-development costs, were $ 486 in 2025, $ 565 in 2024 and $ 510 in 2023.

The decrease in 2025 was due primarily to reduced R&D expenditures after completion of the G800 certification process.

R&D expenses are included in operating costs and expenses in the Consolidated Statement of Earnings in the period in which they are incurred.

18 unchanged sentences

We report our equity securities at fair value with subsequent changes in fair value recognized in net earnings.

We report our available-for-sale debt securities at fair value with unrealized gains and losses recognized as a component of other comprehensive (loss) income in the Consolidated Statement of Comprehensive Income.

We report our available-for-sale debt securities at fair value with unrealized gains and losses recognized as a component of other comprehensive income (loss) in the Consolidated Statement of Comprehensive Income.

We had no material trading or held-to-maturity debt securities on December 31, 2025 or 2024.

See Note P for additional information regarding our investments in debt and equity securities.

We record equity method investments initially at cost, and periodically update the carrying value based on activity associated with our investment.

Acquisitions.

In the last three years, we acquired a business in our Aerospace segment, a business in our Combat Systems segment and two businesses in our Technologies segment.

In the last three years, we acquired two businesses in our Aerospace segment, two businesses in our Combat Systems segment and two businesses in our Technologies segment.

The operating results of these acquisitions have been included in our reported results since their respective closing dates.

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Our estimate of a reporting unit’s fair value is based primarily on the discounted cash flows of the underlying operations.

In the fourth quarter of 2024, we completed qualitative assessments for each of our reporting units.

In the fourth quarter of 2025, we completed qualitative assessments of goodwill for each of our reporting units.

Our Aerospace, Marine Systems and Combat Systems reporting units’ estimated fair values significantly exceeded their respective carrying values based on our most recent quantitative assessments, which were performed in the fourth quarter of 2018.

3 unchanged sentences

Recent Accounting Pronouncements.

In 2024, we adopted Accounting Standards Update (ASU) 2023-07, Improvements to Reportable Segment Disclosures, using the retrospective method of adoption.

The ASU adds disclosure requirements for segment expense information.

In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Improvements to Income Tax Disclosures, effective for annual periods beginning after December 15, 2024.

The ASU requires disclosure of disaggregated income tax information, including the effective tax rate reconciliation and income taxes paid.

In 2025, we adopted Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures, using the prospective method of adoption.

The ASU modifies our disclosure for income tax expense.

In November 2024, the FASB issued ASU 2024-03, Disaggregation - Income Statement Expenses.

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Substantially all of our revenue in the defense segments is recognized over time because control is transferred continuously to our customers.

Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations.

Typically, revenue

is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations.

Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer.

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The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue.

The aggregate impact of adjustments in contract estimates increased our revenue, operating earnings and diluted earnings per share as follows:

The aggregate impact of adjustments in contract estimates changed our revenue, operating earnings and diluted earnings per share as follows:

Year Ended December 31 2025 2024 2023

2 unchanged sentences

Diluted earnings per share $ 0.46 $ 0.16 $ 0.32

While no adjustment on any one contract was material to the Consolidated Financial Statements in 2024, 2023 or 2022, our Marine Systems segment’s 2024 results were affected negatively by supplier

quality issues and late supply chain deliveries causing cost growth and schedule delays on the Virginia-class submarine Block IV contract.

We have large, long-term contracts with the U.S.

Navy for Virginia-class submarines and an international customer for tracked vehicles in which our estimates for contract revenue include variable consideration.

For both contracts, it is reasonably possible that the actual amount of variable consideration realized could be less than our estimate, which could have a material unfavorable impact on our results of operations.

In addition, during 2024 the Navy was informed of deficiencies in welding procedures conducted by our teammate and subcontractor on our Virginia-class and Columbia-class submarine programs.

It is reasonably possible that addressing these deficiencies could potentially impose costs or schedule delays not accounted for in our estimates related to our long-term contracts with the Navy for the construction of submarines.

While no adjustment on any one contract was material to the Consolidated Financial Statements in 2025, 2024 or 2023, our Marine Systems segment’s 2024 results were affected negatively by supplier quality issues and late supply chain deliveries causing cost growth and schedule delays on the Virginia-class submarine Block IV contract.

We have a large, long-term contract with an international customer for tracked vehicles in which our estimates for contract revenue include variable consideration.

It is reasonably possible that the actual amount of variable consideration realized could be less than our estimate, which could have a material unfavorable impact on our results of operations.

Revenue by Category.

11 unchanged sentences

Military vehicles 4,970 5,101 5,036

Weapons systems, armament and munitions 2,932 2,442 2,024

Weapon systems and munitions 3,104 2,932 2,442

Engineering and other services 1,172 964 790

6 unchanged sentences

Revenue by contract type was as follows:

Year Ended December 31, 2024 Aerospace Marine Systems Combat Systems Technologies Total

Year Ended December 31, 2025

Aerospace Marine Systems Combat Systems Technologies Total

Fixed-price $ 12,050 $ 7,995 $ 8,131 $ 5,577 $ 33,753

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Revenue by customer was as follows:

Year Ended December 31, 2024 Aerospace Marine Systems Combat Systems Technologies Total

Department of Defense (DoD) $ 253 $ 14,204 $ 5,102 $ 7,632 $ 27,191

Non-DoD — 2 8 4,800 4,810

Year Ended December 31, 2025

Aerospace Marine Systems Combat Systems Technologies Total

Department of War (DoW) $ 311 $ 16,575 $ 4,966 $ 7,936 $ 29,788

Non-DoW 84 3 12 4,855 4,954

Foreign military sales (FMS) 18 136 849 12 1,015

5 unchanged sentences

Year Ended December 31, 2024

DoD $ 303 $ 12,325 $ 4,580 $ 7,512 $ 24,720

Non-DoD — 3 10 4,698 4,711

DoW $ 253 $ 14,204 $ 5,102 $ 7,632 $ 27,191

Non-DoW — 2 8 4,800 4,810

FMS 43 132 857 31 1,063

5 unchanged sentences

Year Ended December 31, 2023

DoD $ 313 $ 10,874 $ 4,082 $ 6,981 $ 22,250

Non-DoD — 2 9 4,797 4,808

DoW $ 303 $ 12,325 $ 4,580 $ 7,512 $ 24,720

Non-DoW — 3 10 4,698 4,711

FMS 69 129 651 47 896

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Provision for income taxes, net:

federal 639 532 488

State 19 28 34

Foreign 235 198 147

Provision for income taxes, net $ 893 $ 758 $ 669

Net income tax payments $ 568 $ 560 $ 1,100

The reported tax provision differs from the amounts paid because some income and expense items are recognized in different time periods for financial reporting than for income tax purposes.

This includes the impact of the requirement, effective January 1, 2022, to capitalize and amortize over five years certain R&D expenditures that were previously deductible immediately for tax purposes, which contributed to increased net income tax payments.

This includes the impact of the requirement, effective January 1, 2022, through December 31, 2024, to capitalize and amortize over five years certain R&D expenditures that were previously deductible immediately for tax purposes.

Among other changes, the Budget Reconciliation Act of 2025 (Act) allows for the immediate deduction of domestic research and development expenditures beginning January 1, 2025, and permits the accelerated deduction of amounts capitalized under prior law.

We otherwise do not expect the Act to have a material effect on our tax provision.

State and local income taxes allocable to U.S.

government contracts are included in operating costs and expenses in the Consolidated Statement of Earnings and, therefore, are not included in the provision above.

The reconciliation from the statutory federal income tax rate to our effective income tax rate follows:

The reconciliation from the statutory federal income tax rate to our effective income tax rate, applying ASU 2023-09 prospectively, follows:

Year Ended December 31 2025

Statutory federal income tax rate 21.0 % 21.0 % 21.0 %

federal statutory income tax $ 1,072 21.0 %

Research and development tax credit ( 180 ) ( 3.5 )

Effects of cross-border tax laws

Foreign-derived intangible income ( 36 ) ( 0.7 )

State tax on commercial operations, net of federal benefits 15 0.3

Foreign tax effects 38 0.7

Nontaxable or nondeductible items 37 0.7

Other reconciling items

Equity-based compensation ( 43 ) ( 0.8 )

Other, net ( 10 ) ( 0.2 )

Effective income tax rate $ 893 17.5 %

The reconciliation from the statutory federal income tax rate to our effective income tax rate, applying ASC 740 prior to the adoption of ASU 2023-09, follows:

Year Ended December 31 2024 2023

federal statutory income tax rate 21.0 % 21.0 %

Domestic tax credits ( 3.3 ) ( 3.3 )

3 unchanged sentences

Global impact of international operations 1.0 0.5

Tax impact of restructuring — — ( 1.9 )

Other, net 0.2 ( 0.1 )

Effective income tax rate 16.7 % 16.8 %

Cash paid for income taxes (net of refunds) consisted of the following:

Year Ended December 31 2025

Federal $ 331

Saudi Arabia 59

Total Foreign 233

Cash paid for income taxes (net of refunds) $ 568

Earnings from continuing operations before taxes by foreign and domestic operations follows:

Year Ended December 31 2025

Domestic $ 4,199

Total $ 5,103

Net Deferred Tax Liability.

3 unchanged sentences

Lease liabilities 412 441

Retirement benefits 251 311

Salaries and wages 223 215

Tax loss and credit carryforwards 384 185

Salaries and wages 215 223

Workers’ compensation 160 153

Retirement benefits 115 251

Other 385 383

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Our deferred tax balance associated with our retirement benefits includes a deferred tax asset of $ 359 on December 31, 2025, and $ 446 on December 31, 2024, related to the amounts recorded in accumulated other comprehensive loss (AOCL) to recognize the funded status of our retirement plans.

For a reconciliation of the increase in funded status of our defined benefit plans in 2024, see Note S.

For a reconciliation of the change in funded status of our defined benefit plans in 2025, see Note S.

One of our deferred tax liabilities results from our participation in the Capital Construction Fund (CCF), a program established by the U.S.

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The IRS has examined our consolidated federal income tax returns through 2024.

For the tax year ending December 31, 2023, the IRS placed us in the phase of CAP reserved for taxpayers whose risk of noncompliance does not warrant the continual use of IRS examination resources.

For the tax year ending December 31, 2024, the IRS placed us into a CAP phase in which they will consider certain tax return information early in 2025 in the interest of expediting their risk assessment and review of our 2024 tax return.

We are currently in a CAP phase (Bridge Plus) in which the IRS considers certain tax return information in advance to expedite their risk assessment and review of our return.

For all periods open to examination by tax authorities, we periodically assess our liabilities and contingencies based on the latest available information.

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In addition, there are no tax positions for which it is reasonably possible that the unrecognized tax benefits will vary significantly over the next 12 months, producing, individually or in the aggregate, a material effect on our results of operations, financial condition or cash flows.

The Organization for Economic Co-operation and Development has issued “Pillar Two” model rules introducing a new global minimum tax of 15% on a country-by-country basis, with certain aspects

intended to be effective on January 1, 2024, and other aspects on January 1, 2025.

Although it is uncertain whether the U.S.

will adopt any Pillar Two rules, some countries have enacted, introduced, or are considering implementing legislation.

Because we generally do not have material operations in jurisdictions with tax rates lower than the proposed Pillar Two minimum, any legislation enacted consistent with the Pillar Two model rules is not expected to have a material effect on our results of operations, financial condition or cash flows.

The Organization for Economic Co-operation and Development has issued “Pillar Two” model rules introducing a new global minimum tax of 15% on a country-by-country basis, with certain aspects intended to be effective on January 1, 2024, and other aspects on January 1, 2025.

Because we generally do not have material operations in jurisdictions with tax rates lower than the proposed Pillar Two

minimum, any legislation enacted consistent with the Pillar Two model rules is not expected to have a material effect on our results of operations, financial condition or cash flows.

ACCOUNTS RECEIVABLE

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Receivables from non-U.S.

government customers included amounts related to long-term production programs for the Spanish Ministry of Defence of $ 1 billion and $ 1.1 billion on December 31, 2024 and 2023, respectively.

A different ministry, the Spanish Ministry of Industry, has funded work on these programs in advance of costs incurred by the company.

The cash advances are reported on the Consolidated Balance Sheet in current customer advances and deposits and will be repaid to the Ministry of Industry as we collect on the outstanding receivables from the Ministry of Defence.

The net amounts for these programs on December 31, 2024 and 2023, were advance payments of $ 67 and $ 271 , respectively.

government customers historically has included amounts related to long-term production programs for the Spanish Ministry of Defence (MoD).

A different ministry, the Spanish Ministry of Industry, had funded work on these programs in advance of costs incurred by the company, which we reported in current customer advances and deposits on the Consolidated Balance Sheet.

In 2025, we collected $ 1.1 billion from the MoD and simultaneously repaid the advance from the Ministry of Industry.

There were no outstanding receivables from the MoD on December 31, 2025, in contrast to $ 1 billion on December 31, 2024.

With respect to our other receivables, we expect to collect substantially all of the year-end 2025 balance during 2026.

7 unchanged sentences

Net unbilled receivables $ 8,380 $ 8,248

On December 31, 2024 and 2023, net unbilled receivables included $ 1.2 billion associated with a large international tracked vehicle contract in our Combat Systems segment.

The contract, signed in 2010, experienced an unbilled receivable build-up in 2021 and 2022.

The customer resumed payments on the contract in the first quarter of 2023.

On December 31, 2025 and 2024, net unbilled receivables included $ 1.3 billion and $ 1.2 billion, respectively, associated with a large international tracked vehicle contract in our Combat Systems segment.

We expect a significant decline in this balance over the next two years as contract deliveries, including vehicles, occur through early 2028.

Other than the balance related to the tracked vehicle contract, we expect to bill substantially all of the remaining year-end 2025 net unbilled receivables balance during 2026, and the amount not expected to be billed in 2026 results primarily from the agreed-upon contractual billing terms.

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Total inventories $ 9,232 $ 9,724

The increase in total inventories during 2024 was due primarily to the ramp-up in production of new Gulfstream aircraft models, including the G700 that began deliveries in the second quarter of 2024.

Customer deposits associated with firm orders for these aircraft, which are reported in customer advances and deposits and other noncurrent liabilities on the Consolidated Balance Sheet, also increased.

The decrease in total inventories during 2025 was due primarily to Gulfstream aircraft deliveries, which included the G800 that began deliveries in the third quarter of 2025.

Customer deposits associated with firm orders for these aircraft are reported in customer advances and deposits and other noncurrent liabilities on the Consolidated Balance Sheet.

GOODWILL AND INTANGIBLE ASSETS

2 unchanged sentences

December 31, 2023 (a)

$ 3,199 $ 297 $ 2,812 $ 14,278 $ 20,586

Acquisitions (b) 9 — 39 158 206

1 unchanged sentence

December 31, 2024 (a)

3,085 297 2,758 14,416 20,556

Acquisitions (b) 20 — 2 92 114

1 unchanged sentence

December 31, 2025 (a)

$ 3,364 $ 297 $ 2,825 $ 14,523 $ 21,009

(a) Goodwill in the Technologies reporting unit was net of $ 1.8 billion of accumulated impairment losses.

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Total intangible assets $ 3,953 $ ( 2,578 ) $ 1,375 $ 3,910 $ ( 2,390 ) $ 1,520

(a) Changes in gross carrying amounts consisted primarily of adjustments for foreign currency translation, acquired and divested intangible assets and write-offs of fully amortized intangible assets.

(a) Changes in gross carrying amounts consisted primarily of foreign currency translation and adjustments for divested intangible assets.

(b) Consisted of acquired backlog and probable follow-on work and associated customer relationships.

We did not recognize any impairments of our intangible assets in 2024, 2023 or 2022.

We did not recognize any impairments of our intangible assets during the last three years.

The amortization lives (in years) of our intangible assets on December 31, 2025, were as follows:

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Our government customers provide certain facilities and equipment for our use that are not included above.

During 2025, we exercised an option to buy approximately $ 490 of PP&E that was under lease.

We determine at its inception whether an arrangement that provides us control over the use of an asset is a lease.

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Finance leases* ( 37 ) 155 240

* In 2025, financing cash flows from finance leases included approximately $ 490 for the exercise of options to purchase the underlying assets.

This transaction also impacted ROU assets obtained in exchange for lease liabilities.

Additional quantitative lease information was as follows:

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On December 31, 2025, we had additional future payments on leases that had not yet commenced of $ 25 .

These leases will commence in 2025 and 2026, and have lease terms ranging from one to 20 years.

These leases will commence in 2026 and have lease terms ranging from one to 10 years.

Debt consisted of the following:

2 unchanged sentences

Interest rate:

November 2024 2.375 % $ — $ 500

April 2025 3.250 % $ — $ 750

7 unchanged sentences

June 2031 2.250 % 500 500

August 2035 4.950 % 750 —

April 2040 4.250 % 750 750

8 unchanged sentences

Long-term debt $ 7,007 $ 7,260

In November 2024, we repaid fixed-rate notes of $ 500 at the scheduled maturity using cash on hand.

In March 2025, we repaid fixed-rate notes of $ 750 with cash on hand and commercial paper issuances.

In May 2025, we issued $ 750 of fixed-rate notes that mature in August 2035.

The proceeds were used to repay fixed-rate notes of $ 750 that matured in May 2025.

Interest payments associated with our debt were $ 376 in 2025, $ 385 in 2024 and $ 378 in 2023.

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On December 31, 2025, we had no commercial paper outstanding, but we maintain the ability to access the commercial paper market in the future.

Separately, we have a $ 4 billion committed bank credit facility for general corporate purposes and working capital needs and to support our commercial paper issuances.

This credit facility expires in March 2027.

We may renew or replace this credit facility

in whole or in part at or prior to its expiration date.

In addition, we have a $ 5 billion committed bank

credit facility for general corporate purposes and working capital needs and to support our commercial paper issuances.

These credit facilities include a $ 4 billion facility expiring March 2027 and a $ 1 billion 364 -day facility that we established in early April 2025.

We may renew or replace this credit facility in whole or in part at or prior to its expiration date.

We also have an effective shelf registration on file with the Securities and Exchange Commission (SEC) that allows us to access the debt markets.

11 unchanged sentences

Customer deposits on commercial contracts $ 2,649 $ 2,996

Retirement benefits 2,024 2,219

Lease liabilities 1,477 1,595

Retirement benefits 1,134 2,024

Other 2,564 2,118

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The plaintiffs allege that the conspiracy suppressed compensation paid to the putative class members, and the plaintiffs seek trebled monetary damages, attorneys’ fees, injunctive and other equitable relief.

We are defending the matter.

On April 19, 2024, the District Court dismissed the plaintiffs’ complaint.

Plaintiffs initiated an appeal of the dismissal of their complaint to the U.S.

Court of Appeals for the Fourth Circuit on May 20, 2024.

On May 9, 2025, the U.S.

Court of Appeals for the Fourth Circuit reversed an earlier decision of the District Court dismissing the plaintiffs’ complaint and remanded the case for further proceedings.

On September 11, 2025, the defendants filed a petition for a writ of certiorari with the U.S.

Supreme Court.

Given the current status of this matter, we are unable to express a view regarding the ultimate outcome or, if the outcome is adverse, to estimate an amount or range of reasonably possible loss.

1 unchanged sentence

Additionally, various other claims and legal proceedings incidental to the normal course of business are pending or threatened against us.

These other matters relate to such issues as government investigations and claims, the protection of the environment, asbestos-related claims and employee-related matters.

These other matters relate to such issues as government

investigations and claims, the protection of the environment, asbestos-related claims and employee-related matters.

The nature of litigation is such that we cannot predict the outcome of these other matters.

However, based on information currently available, we believe any potential liabilities in these

other proceedings, individually or in the aggregate, will not have a material impact on our results of operations, financial condition or cash flows.

However, based on information currently available, we believe any potential liabilities in these other proceedings, individually or in the aggregate, will not have a material impact on our results of operations, financial condition or cash flows.

Environmental

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These trade-in commitments are generally structured to establish the fair market value of the trade-in aircraft at a date generally 45 or fewer days preceding delivery of the new aircraft to the customer.

At that time, the customer is required to either exercise the option or allow its expiration.

At that time, the

customer is required to either exercise the option or allow its expiration.

Other trade-in commitments are structured to guarantee a predetermined trade-in value.

These commitments present more risk in the event of an adverse change in market conditions.

In either case, any excess of the preestablished trade-in

price above the fair market value at the time the new aircraft is delivered is treated as a reduction of revenue in the new-aircraft sales transaction.

In either case, any excess of the preestablished trade-in price above the fair market value at the time the new aircraft is delivered is treated as a reduction of revenue in the new-aircraft sales transaction.

As of December 31, 2025, the estimated change in fair market values from the date of the commitments was not material.

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On December 4, 2024, the Board authorized management to repurchase up to 10 million additional shares of the company’s outstanding stock.

In 2024, we repurchased 5.4 million of

our outstanding shares for $ 1.5 billion.

In 2025, we repurchased 2.5 million of our outstanding shares for $ 637 to cover dilution.

On December 31, 2025, 6.8 million shares remained authorized by our Board for repurchase, representing 2.5 % of our total shares outstanding.

We repurchased 2 million shares for $ 434 in 2023 and 5.3 million shares for $ 1.2 billion in 2022.

We repurchased 5.4 million shares for $ 1.5 billion in 2024 and 2 million shares for $ 434 in 2023.

Dividends per Share.

Our Board declared dividends per share of $ 6.00 in 2025 , $ 5.68 in 2024 and $ 5.28 in 2023.

We paid cash dividends of $ 1.5 billion in 2024, and $ 1.4 billion in 2023 and 2022.

We paid cash dividends of $ 1.6 billion in 2025, $ 1.5 billion in 2024 and $ 1.4 billion in 2023.

Accumulated Other Comprehensive Loss.

3 unchanged sentences

December 31, 2022 $ 4 $ 260 $ ( 2,416 ) $ ( 2,152 )

Other comprehensive loss, pretax ( 190 ) ( 278 ) 241 ( 227 )

Provision for income tax, net 50 — ( 55 ) ( 5 )

Other comprehensive loss, net of tax ( 140 ) ( 278 ) 186 ( 232 )

December 31, 2022 4 260 ( 2,416 ) ( 2,152 )

Other comprehensive income, pretax 10 413 722 1,145

6 unchanged sentences

December 31, 2024 ( 76 ) 235 ( 1,677 ) ( 1,518 )

Other comprehensive income, pretax 113 638 398 1,149

Provision for income tax, net ( 27 ) — ( 87 ) ( 114 )

Other comprehensive income, net of tax 86 638 311 1,035

December 31, 2025 $ 10 $ 873 $ ( 1,366 ) $ ( 483 )

Amounts reclassified out of AOCL related primarily to changes in our retirement plans’ funded status and included pretax recognized net actuarial losses and amortization of prior service credit.

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(b) Other segment items consist of material and labor costs, depreciation and amortization, and other overhead and general and administrative expenses.

The following is additional summary financial information for each of our segments:

Identifiable Assets Capital Expenditures Depreciation and Amortization*

Capital Expenditures Depreciation and Amortization* Identifiable Assets

Year Ended December 31 2025 2024 2023 2025 2024 2023 2025 2024 2023

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* Depreciation and amortization by reportable segment is included within the other segment items expense caption.

Our revenue from our operations located outside the U.S.

was $ 5.4 billion in 2025, $ 5 billion in 2024 and $ 4.3 billion in 2023, and associated earnings from continuing operations before income taxes were $ 904 in 2025, $ 732 in 2024 and $ 631 in 2023.

The long-lived assets associated with these operations were less than 5% of our total long-lived assets for the past three years.

The following table presents our revenue by geographic area based on the location of our customers:

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Total revenue $ 52,550 $ 47,716 $ 42,272

Our revenue from non-U.S.

operations was $ 5 billion in 2024, $ 4.3 billion in 2023 and $ 4 billion in 2022, and earnings from continuing operations before income taxes from non-U.S.

operations were $ 732 in 2024, $ 631 in 2023 and $ 567 in 2022.

The long-lived assets associated with these operations were 3 % of our total long-lived assets on December 31, 2024 and 4 % of our total long-lived assets on December 31, 2023 and 2022.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants.

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Short- and long-term debt principal ( 8,826 ) ( 8,103 ) — ( 8,103 ) —

Our Level 1 assets include commingled equity and fixed-income funds that are valued using a unit price or net asset value (NAV).

Our Level 1 assets include commingled equity and fixed-income funds that are valued using a unit

price or net asset value (NAV).

These funds are actively traded and valued using quoted prices for identical securities from the market exchanges.

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To the extent possible, we include in our contracts terms that are designed to protect us from this risk.

Otherwise, we

enter into derivative financial instruments, principally foreign currency forward purchase and sale contracts, designed to offset and minimize our risk.

Otherwise, we enter into derivative financial instruments, principally foreign currency forward purchase and sale contracts, designed to offset and minimize our risk.

The dollar-weighted two-year average maturity of these instruments generally matches the duration of the activities that are at risk.

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The resulting foreign currency translation adjustments are a component of AOCL.

We do not hedge the fluctuation in reported revenue and earnings resulting from the translation of these international operations’ results into U.S.

The impact of translating our non-U.S.

operations’ revenue and earnings into U.S.

dollars was not material to our results of operations in any of

the past three years.

dollars was not material to our results of operations in any of the past three years.

In addition, the effect of changes in foreign exchange rates on non-U.S.

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• Expected volatility is based on the historical volatility of our common stock

• Expected term is based on assumptions used by a set of comparable peer companies

• Expected term is based on our historical experience

• Risk-free interest rate is the yield on a U.S.

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Participants generally vest in restricted stock and RSUs, over a three-year restriction period after the grant date, during which recipients may not sell, transfer, pledge, assign or otherwise convey their restricted shares to another party.

During this period, restricted stock recipients receive cash dividends

on their restricted shares and are entitled to vote those shares, while RSU recipients receive dividend-equivalent units instead of cash dividends and are not entitled to vote their RSUs or dividend-equivalent units.

During this period, restricted stock recipients receive cash dividends on their restricted shares and are entitled to vote those shares, while RSU recipients receive dividend-equivalent units instead of cash dividends and are not entitled to vote their RSUs or dividend-equivalent units.

We grant RSUs with one or more performance measures (performance stock units or PSUs) determined by the compensation committee of the Board as described in our proxy statement.

26 unchanged sentences

Our contributions to these plans totaled $ 560 in 2025, $ 517 in 2024 and $ 462 in 2023.

On December 31, 2024 and 2023, the defined-contribution plans held approximately 15 million and 16 million shares of our common stock respectively, each representing approximately 6 % of our outstanding shares.

On December 31, 2025 and 2024, the defined-contribution plans held approximately 14 million and 15 million shares of our common stock respectively, each representing approximately 5 % and 6 % of our outstanding shares, on December 31, 2025 and 2024, respectively.

Defined Benefit Plans

16 unchanged sentences

Therefore, we may make discretionary contributions in addition to the required contributions determined in accordance with IRS regulations.

We contributed $ 73 to our qualified pension plans in 2024.

In 2025, our required contributions are $ 241 .

We contributed $ 537 to our qualified pension plans in 2025, which is reported in other operating activities in our Consolidated Statement of Cash Flows.

Our 2025 contribution included the payment of our required 2026 contribution of $ 293 .

We maintain several tax-advantaged accounts, primarily Voluntary Employees’ Beneficiary Association (VEBA) trusts, to fund the obligations for some of our other post-retirement benefit plans.

32 unchanged sentences

Settlement/curtailment/other ( 5 ) 87 3

Net annual benefit cost (credit) $ 149 $ 629 $ ( 250 )

Net annual benefit cost $ 38 $ 149 $ 629

What changed 10-K

Item 8. Financial Statements and Supplementary Data