Company: BWNB
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001630805-25-000007
Chunk: 79

Company: Babcock & Wilcox Enterprises, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 79
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ains) of $33.6 million, $38.0 million and $(7.7) million in the years ended, December 31, 2024, 2023 and 2022, respectively. The recognized net actuarial loss (gain) was recorded in Benefit plans, net in the Consolidated Statements of Operations.Assumptions  Pension BenefitsOther BenefitsYear ended December 31,Year ended December 31, 202420232022202420232022Weighted average assumptions used to determine net periodic benefit obligations:Comparative single equivalent discount rate5.57%5.02%5.35%5.21%4.94%5.28%Rate of compensation increase0.07%0.07%0.06%———Weighted average assumptions used to determine net periodic benefit cost:Comparative single equivalent discount rate5.03%5.39%2.88%5.21%4.94%5.28%Expected return on plan assets6.38%6.37%5.90%———Rate of compensation increase0.07%0.07%0.06%———The expected rate of return on plan assets is based on the long-term expected returns for the investment mix of assets currently in the portfolio. In setting this rate, we use a building-block approach. Historic real return trends for the various asset classes in the plan's portfolio are combined with anticipated future market conditions to estimate the real rate of return for each asset class. These rates are then adjusted for anticipated future inflation to determine estimated nominal rates of return for each asset class. The expected rate of return on plan assets is determined to be the weighted average of the nominal returns based on the weightings of the asset classes within the total asset portfolio. We use an expected return on plan assets assumption of 6.5% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2024).

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SensitivityThe following sensitivity analysis reflects the impact of a 25-basis point change in the assumed discount rate and return on assets on our pension plan obligations and expense for the year ended December 31, 2024:(in millions)0.25% increase0.25% decreaseDiscount rate:Effect on ongoing net periodic benefit cost (1)$(14.9)$15.5 Effect on projected benefit obligation(16.4)17.1 Return on assets:Effect on ongoing