Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 117

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 7
Chunk 117
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 rates; (2) asset return assumptions; and (3) actuarial assumptions such as retirement age and mortality which are determined as of the current year measurement date. We review our actuarial assumptions on an annual basis and make modifications to the assumptions based on current rates and trends when appropriate. Experience gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions are recognized in other comprehensive income. Cumulative actuarial gains and losses in excess of 10% of the projected benefit obligation (“PBO”) for a particular plan are amortized over the average future service period of the employees in that plan.

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The principal assumptions used to determine the pension expense and the actuarial value of the projected benefit obligation for the U.S. and non-U.S. pension plans were:

Assumptions used to determine benefit obligations at December 31:

 Pension Benefits U.S. PlansNon-U.S. Plans 2024202320242023Weighted-average discount rate4.90 %5.50 %6.23 %5.91 %Weighted-average rate of increase in compensation levelsN/AN/A2.66 %2.93 %

Assumptions used to determine net expense for years ended December 31:

 Pension Benefits U.S. PlansNon-U.S. Plans 202420232022202420232022Weighted-average discount rate5.50 %5.20 %1.90 %5.91 %5.95 %3.09 %Weighted-average rate of increase in compensation levelsN/AN/AN/A2.93 %2.82 %2.47 %Weighted-average expected long-term rate of return on plan assetsN/AN/AN/A5.18 %4.98 %4.46 %

We select discount rates by analyzing the results of matching each plan’s projected benefit obligations with a portfolio of high-quality fixed income investments rated AA or higher by Standard and Poor’s or Moody’s.

Aptiv does not have any U.S. pension assets; therefore no U.S. asset rate of return calculation was necessary. The primary funded non-U.S. plans are in the U.K. and Mexico. For the determination of 2024 expense, we assumed a long-term expected asset rate of return of approximately 4.50% and 8.00% for the U.K. and Mexico, respectively. We evaluated