Company: PTC
Filing Date: 2025-11-21
Form Type: 10-K
Source: 0001193125-25-291326
Chunk: 96

Company: PTC INC.
Filing Date: 2025-11-21
Form: 10-K
Item: Item 6
Chunk 96
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 with vesting after one to five years of service. The pension cost was actuarially computed using assumptions applicable to each subsidiary plan and economic environment. We adjust our pension liability related to our plans due to changes in actuarial assumptions and performance of plan investments, as shown below. The vested benefit obligation is determined as the actuarial present value of the vested benefits to which the employee is currently entitled to but based on the employee's expected date of separation or retirement. Effective in 1998, benefits under one of the international plans were frozen indefinitely.The following table presents the actuarial assumptions used in accounting for the pension plans: 

         2025

         2024

         2023

         Weighted average assumptions used to determine benefit obligations at September 30 measurement date:

         Discount rate

         3.8
         %

         3.3
         %

         4.2
         %

         Rate of increase in future compensation

         3.0
         %

         3.0
         %

         3.0
         %

         Weighted average assumptions used to determine net periodic pension cost for fiscal years ended September 30:

         Discount rate

         3.3
         %

         4.2
         %

         3.7
         %

         Rate of increase in future compensation

         3.0
         %

         3.0
         %

         3.6
         %

         Rate of return on plan assets

         4.8
         %

         4.8
         %

         4.8
         %
        
        In selecting the expected long-term rate of return on assets, we considered the current investment portfolio, and the investment return goals in the plans’ investment policy statements. We, with input from the plans’ professional investment managers and actuaries, also considered the average rate of earnings expected on the funds invested or to be invested to provide plan benefits. This process included determining expected returns for the various asset classes that comprise the plans’ target asset allocation. This basis for selecting the long-term asset return assumptions is consistent with the prior year. Using generally accepted diversification techniques, the plans’ assets, in aggregate and at the individual portfolio level, are invested so that the total portfolio risk exposure and risk-adjusted returns best meet the plans’ long-term liabilities to employees. Plan asset allocations are reviewed periodically and rebalanced to achieve target allocation among the asset categories when necessary. The discount rate