Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 186

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 8
Chunk 186
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 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 %Aptiv selects 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, Aptiv assumed a long-term expected asset rate of return of approximately 4.50% and 8.00% for the U.K. and Mexico, respectively. Aptiv evaluated input from local actuaries and asset managers, including consideration of recent fund performance and historical returns, in developing the long-term rate of return assumptions. The assumptions for the U.K. and Mexico are primarily conservative long-term, prospective rates. To determine the expected return on plan assets, the market-related value of our plan assets is actual fair value.Aptiv’s pension expense for 2025 is determined at the 2024 year end measurement date. For purposes of analysis, the following table highlights the sensitivity of the Company’ pension obligations and expense attributable to changes in key assumptions:Change in AssumptionImpact onPension ExpenseImpact on PBO25 basis point (“bp”) decrease in discount rateLess than + $1 million