17-Attachment D - Audited Financial Statements 2024.pdf

July 18, 2025

To the Members of the Retirement/Investment Committee

Dallas Fort Worth International Airport Board

We have audited the financial statements of the Retirement Plans for Employees and Department of Public Safety (DPS) Covered Employees of the Dallas Fort Worth International Airport (collectively, the “Plans”) as of and for the year ended December 31, 2024 and have issued our report thereon dated July 18, 2025.

Professional standards require that we provide you with the following information related to our audit.

Our Responsibility Under U.S. Generally Accepted Auditing Standards

As stated in our engagement letter dated May 19, 2025, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement.

As part of our audit, we considered the internal control of the Plans. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters.

Planned Scope and Timing of the Audit

We performed the audit according to the planned scope and timing previously communicated to you in our letter about planning matters dated May 21, 2025.

Significant Audit Findings

Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the Plans are described in Note 2 to the financial statements.

No new accounting policies were adopted, and the application of existing policies was not changed during 2024.

We noted no transactions entered into by the Plans during the year for which there is a lack of authoritative guidance or consensus.

We noted no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred.

Attachment D – Audited Financial Statements

To the Members of the Retirement/Investment July 18, 2025 Committee

Dallas Fort Worth International Airport Board

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.

The most sensitive estimates affecting the financial statements were the assumptions utilized in the development of the total pension liability.

The financial statement disclosures and required supplementary information schedules contain information about the plan sponsors’ total pension liability. In order to determine the total pension liability, the actuary must apply certain assumptions that are highly sensitive to estimation. The most sensitive estimates used in the determination of the total pension liability were as follows:

• Assumed long-term investment rate of return and single discount rate - For the purpose of Governmental Accounting Standards Board (GASB) Statement No. 67, as of December 31, 2024, the Plans are currently using 7.00 percent for the assumed long-term investment rate of return. The use of

7.00 percent assumed long-term investment rate of return is based on the current approved asset mix and capital market assumptions. The calculation of the single discount rate under GASB Statement No.

67 uses the long-term investment rate of return as one of many assumptions and is also sensitive to estimates the actuary makes about future contributions and future benefit payments. The actuary assumed member contributions for DPS employees would be made at the current contribution rate and that employer contributions would be made as required, and these contributions will be sufficient to pay benefits as required by the Plans.

• Mortality assumptions - The pre- and postretirement mortality assumptions impact the calculation of the total pension liability. The assumptions about mortality were estimated by the actuary by using the Pub- 2010 General Healthy Retiree Amount-Weighted Above-Median Mortality Table (separate tables for males and females), projected generationally with the two-dimensional mortality improvement scale

MP-2020.

We evaluated the key assumptions used to develop the total pension liability in determining that they are reasonable in relation to the financial statements as a whole.

The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were the disclosures related to GASB Statement No. 67, including the actuarial valuation results.

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in performing and completing our audit.

Disagreements with Management

For the purpose of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.

We are pleased to report that no such disagreements arose during the course of our audit.

Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management.

We did not detect any misstatements as a result of audit procedures.

To the Members of the Retirement/Investment July 18, 2025

Dallas Fort Worth International Airport Board

Significant Findings or Issues

We generally discuss a variety of matters, including the application of accounting principles and auditing standards, business conditions affecting the Plans, and business plans and strategies that may affect the risks of material misstatement, with management each year prior to our retention as the Plans’ auditors.

However, these discussions occurred in the normal course of our professional relationship, and our responses were not a condition of our retention.

Management Representations

We have requested certain representations from management that are included in the management representation letter dated July 18, 2025.

Management Consultations with Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a second opinion on certain situations. If a consultation involves application of an accounting principle to the Plans’ financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.

To our knowledge, there were no such consultations with other accountants.

Other Information Included in Annual Reports

Our responsibility for other information included in annual reports does not extend beyond the financial statements, and we do not express an opinion or any form of assurance on the other information. However, we read the schedule of external investment fees and the history of the Dallas Fort Worth Retirement Plans, and nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially misstated or materially inconsistent with the information or manner of its presentation appearing in the financial statements.

This information is intended solely for the use of the members of the retirement/investment committee and management of the Plans and is not intended to be and should not be used by anyone other than these specified parties.

We would like to take this opportunity to thank the Plans’ staff for the cooperation and courtesy extended to us during our audit. Their assistance and professionalism are invaluable.

We welcome any questions you may have regarding the preceding communications, and we would be willing to discuss these or any other questions that you might have at your convenience.

Very truly yours, Plante & Moran, PLLC

Ali Hijazi, CPA Partner

RETIREMENT PLANS

FOR EMPLOYEES AND DPS COVERED EMPLOYEES

OF THE

DALLAS FORT WORTH INTERNATIONAL AIRPORT

Financial Statements and

Required Supplementary Information

As of and for the year ended December 31, 2024

Prepared by Department of Finance

Christopher A. Poinsatte Executive Vice President and Chief Financial Officer

Retirement Plans for Employees and DPS Covered Employees of the Dallas Fort Worth International Airport

Financial Statements, Notes, and Required Supplementary Information

Independent Auditor’s Report

Management’s Discussion and Analysis

Statement of Fiduciary Net Position

Statement of Changes in Fiduciary Net Position

Notes to the Financial Statements

Required Supplementary Information

Other Information

Independent Auditor's Report

To the Members of the Retirement/Investment Committee

Dallas Fort Worth International Airport Board

Opinion

We have audited the financial statements of the Retirement Plans for Employees and Department of Public Safety (DPS) Covered Employees of the Dallas Fort Worth International Airport (collectively, the "Plans") as of and for the year ended December 31, 2024 and the related notes to the financial statements, which collectively comprise the Plans' basic financial statements, as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the fiduciary net position of the Retirement Plans for Employees and Department of Public Safety (DPS) Covered Employees of the Dallas Fort Worth International Airport as of December 31, 2024 and the changes in its fiduciary net position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Plans and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Plans' ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

To the Members of the Retirement/Investment

Dallas Fort Worth International Airport Board

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Plans' internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Plans' ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the schedules of changes in the net pension liability and related ratios, contributions, and investment returns be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Additional Information

Management is responsible for the accompanying schedule of external investment fees and history of the Dallas Fort Worth Retirement Plans, which are presented for the purpose of additional analysis and are not a required part of the basic financial statements. Our opinion on the financial statements does not cover such information, and we do not express an opinion or any form of assurance thereon.

July 18, 2025

3 DFW International Airport

MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)

The following discussion and analysis provides a narrative overview and analysis of the financial summary for the year ended December 31, 2024, as compared to 2023, of the Retirement Plan for Employees of Dallas/Fort Worth International Airport Board (“Employee Plan”) and the Retirement Plan for Department of Public Safety (“DPS”) Covered Employees of Dallas/Fort Worth International Airport Board (“DPS Plan”), collectively (the “Plans”).

The Employee Plan and the DPS Plan are single-employer defined benefit retirement plans. The MD&A has been prepared by management and should be read in conjunction with the financial statements and notes which follow this section.

Financial Highlights and Analysis

The Plans’ assets are held in a trust account. The trustee administers contributions and distributions and allocates income and expenses to the Plans. The Plans’ holdings include alternative investments, equities, fixed income securities, and short-term money market funds through 69 asset managers. The Plans’ investments holdings as of December 31, 2024, were valued at $950.3 million.

Plans' Investment Holdings by Asset Class December 31, 2024

4 DFW International Airport

The Plans’ actuarially determined total pension liability was $1,126.0 million as of December 31, 2024, compared to $1,079.0 million, as of December 31, 2023. The Plans’ funded ratio was 84.6% and 83.3% as of December 31, 2024, and 2023, respectively. Refer to Required Supplementary Information for more details.

Plans’ Fiduciary Net Position

The following table shows a financial summary of the Plans’ fiduciary net position and changes in fiduciary net position (in thousands).

The Plans' total fiduciary net position increased $53.9 million in 2024, from $898.6 million in 2023 to $952.5 million. This growth was primarily driven by changes in the fair market value of investments and an additional $6.5 million discretionary employer contribution.

Global financial markets and asset values continued to perform well in 2024, driven by lower inflation, robust corporate earnings, and an expectation of lower interest rates. The Standard and Poor's 500 (S&P 500) index recorded a significant gain of 25.02% for calendar year 2024. This positive performance was underpinned by a combination of factors, including the resolution of supply chain

87.9% 91.5%

80.7% 83.3% 84.6%

70%

80%

90%

100%

2020 2021 2022 2023 2024

Plans Funding Levels

2024 2023 Change

Total assets 954,095$ 898,742$ 55,353$ Total liabilities 1,587 175 1,412 Total fiduciary net position 952,508$ 898,567$ 53,941$

Total investment income 70,864$ 81,069$ (10,205)$ Employer contributions 38,797 30,059 8,738 Plan members contributions 2,754 2,479 275 Total additions 112,415 113,607 (1,192)

Benefit payments (56,327) (54,867) (1,460) Administrative expenses (2,147) (1,356) (791) Total deductions (58,474) (56,223) (2,251)

Changes in fiduciary net position 53,941 57,384 (3,443)

Beginning fiduciary net position 898,567 841,183 57,384 Ending fiduciary net position 952,508$ 898,567$ 53,941$

5 DFW International Airport disruptions, which helped to stabilize prices, and strong consumer demand, which bolstered corporate revenues. A notable contributor to the success of the S&P 500 index was the remarkable performance of technology growth trends in artificial intelligence, cloud computing, and cutting-edge hardware and software. These technology advancements drove approximately 40% of the S&P 500 index's overall performance. U.S. core fixed income was mostly flat with the Barclay’s Aggregate Index returning 1.70% in 2024. Bonds rallied mid-2024 on hopes for Fed rate cuts, reaching a ~+5.25% return by September. But those gains reversed as yields climbed again before year-end, particularly a late-year drop as the 10-year Treasury yield surged roughly 70 bps to ~4.58%. While positive, developed and emerging international markets did not fair near as well as the U.S. The benchmark MSCI All-Country World Index (MSCI ACWI xUS) returned a mediocre 6.09%, including dividends, for calendar year 2024. A strong U.S. dollar early in the year and dovish U.S. rate policy later created mixed effects. International markets, particularly EM, faced inflation and interest rate uncertainty.

The Plans' net investment income decreased $10.2 million in 2024 compared to 2023. This was primarily due to lower unrealized gains on investments, which dropped from $50.9 million in 2023 to $12.7 million in 2024, partially offset by higher realized gains, which rose from $22.1 million in 2023 to $51.1 million in 2024. The Plans' annual money-weighted rate of return was 7.9%. The Plans' actuarially assumed investment return rate is 7.0%.

Employer contributions to the Plans totaled $38.8 million in 2024, an increase from $30.1 million in 2023. The 2024 contributions included $32.3 million in actuarially determined contributions and an incremental $6.5 million discretionary contribution. In 2023, employer contributions were solely based on actuarially determined amounts. Over the last ten years, DFW has met, or exceeded through a year-end additional contribution, the annual actuarially determined contribution. It is DFW’s intention to contribute the Plans' normal cost plus the amortization amount of the unfunded actuarial accrued liability gain/loss bases.

Participants in the DPS Plan are required to contribute seven percent of their annual compensation.

During 2024, DPS Plan participants contributed $2.8 million compared to $2.5 million in 2023.

Benefit payments and administrative expenses were $58.5 million in 2024 and $56.2 million in 2023.

The increase was due to the annual cost of living adjustment and higher administrative expense invoices.

The Plans’ total membership as of December 31, 2024, was 2,975. Actively employed members were 716, inactive members or beneficiaries currently receiving benefits were 1,910, and inactive members that were entitled to but were not receiving benefits were 349.

Additional information about the Plans’ assets and liabilities, including significant accounting policies, can be found in the notes to the financial statements.

Requests for Information

This financial report is designed to provide a general overview of the Plans’ finances. Questions concerning any of the information presented in this report or requests for additional information should be addressed to the Office of the Executive Vice President and Chief Financial Officer, 2400 Aviation Drive, DFW Airport, Texas 75261-9428.

Statement of Fiduciary Net Position

As of December 31, 2024 (Amounts in Thousands)

6 DFW International Airport

Employee DPS Total Assets

Cash and cash equivalents 1,929$ 865$ 2,794$

Domestic equity 140,395 62,942 203,337 International equity 115,877 51,950 167,827 Non-core fixed income 107,051 47,993 155,044 Private equity 84,851 38,040 122,891 Core fixed income 64,658 28,988 93,646 Real estate 60,944 27,322 88,266 Infrastructure 57,765 25,897 83,662 Total Investments at fair value 631,541 283,132 914,673

Money market funds 24,571 11,016 35,587

Total Investments 656,112 294,148 950,260 Receivables

Accrued interest and dividends 719 322 1,041 Total Receivables 719 322 1,041

Total assets 658,760 295,335 954,095

Liabilities Due to broker for securities purchased 457 205 662 Accrued administrative fees 300 137 437 Accrued management fees 335 153 488

Total liabilities 1,092 495 1,587

657,668$ 294,840$ 952,508$

The accompanying notes to the financial statements are an integral part of these statements.

Investments held in Master Trust at fair value (Notes 6, 7)

Investments held in Master Trust at amortized cost (Notes 6, 7)

Fiduciary net position restricted for pensions

Statement of Changes in Fiduciary Net Position For the year ended December 31, 2024

(Amounts in Thousands)

7 DFW International Airport

Additions Contributions (Note 5)

Employer contributions 25,049$ 13,748$ 38,797$ Plan member contributions - 2,754 2,754

Total contributions 25,049 16,502 41,551

Plans' interest in Master Trust investments gain (Note 8) 54,952 24,962 79,914 Less: Investment fees (Note 9) (6,215) (2,835) (9,050)

Total investment gain 48,737 22,127 70,864

Total additions 73,786 38,629 112,415

Deductions Benefits paid to plan members and beneficiaries (Note 1) 42,159 14,168 56,327 Administrative fees (Note 9) 1,475 672 2,147

Total deductions 43,634 14,840 58,474

Net increase in fiduciary net position 30,152$ 23,789$ 53,941$

Fiduciary net position restricted for pensions At beginning of the year 627,516 271,051 898,567 At end of the year 657,668$ 294,840$ 952,508$

The accompanying notes to the financial statements are an integral part of these statements.

Notes to the Financial Statements

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1. DESCRIPTION OF THE PLANS

The following brief description of the Retirement Plans for Employees (“Employee Plan”) and for DPS Covered Employees (“DPS Plan”) of Dallas Fort Worth International Airport Board (collectively the “Plans”) is provided for general information purposes only. Participants should refer to the specific plan agreements for more complete information.

General

The Employee Plan and the DPS Plan are single-employer defined benefit retirement plans covering certain Dallas Fort Worth International Airport (“DFW”) employees. The Employee Plan was established in 1969 and amended in 1978. The DPS Plan was established in 1999. Both plans are governed by the DFW Board of Directors (“the Board”) which consists of the mayors of Dallas and Fort Worth, five members appointed by the City of Dallas and four members appointed by the City of Fort Worth. The Board also includes one non-voting member who rotates on an annual basis among the cities of Coppell, Euless, Grapevine, and Irving. The Board is a semi-autonomous body charged with governing DFW and may enter into contracts without approval of City Councils.

The Board has the authority to establish and amend benefits terms and contribution requirements. The Executive Vice President of Administration and Diversity and the Vice President of Human Resources serve as the “Plan Administrators”. The management of the assets of the Plans is the responsibility of the DFW Board’s Retirement/Investment Committee, the Executive Vice President/CFO, and the Vice President of Treasury Management. DFW has contracted with JPMorgan Chase Bank (“Trustee”) for custody and safekeeping of investments, accounting for transactions based on the instructions of asset managers, and payment of benefits to participants, subject to the policies and guidelines established by DFW.

Membership

Plans’ participation according to current membership classifications as of December 31, 2024, is as follows:

Inactive plan members or beneficiaries 1,649 261 1,910 currently receiving benefits

Inactive plan members entitled to 296 53 349 but not yet receiving benefits

Active plan members 326 390 716

Total plan members 2,271 704 2,975

9 DFW International Airport

Pension Benefits

The Employee Plan and DPS Plan both provide that employees with five or more years of service are entitled to annual pension benefits, beginning at normal retirement age of 62, equal to a certain percentage of their final average monthly compensation for each year of credited service. The final average monthly compensation is determined by utilizing the average monthly rate of compensation for the latest 36 completed months of service immediately prior to the date of service termination.

During the year ended December 31, 2024, the Plans paid benefits to members and beneficiaries amounting to $56.3 million of which $42.1 million was paid to Employee Plan participants and $14.2 million to DPS Plan participants.

Employee Plan

The Employee Plan covers employees hired prior to January 1, 2010, and provides a Normal/Late Retirement benefit on/after age 62 and permits Early Retirement between the ages of 55 and 61.

Employees who terminate before rendering five years of service forfeit the right to receive Employee Plan benefits. Retired employees receive pension benefits in one of four ways (1) Single life annuity

(2) Qualified joint and survivor annuity employee (3) Guaranteed period option or (4) Level income option. Lump sum distributions upon retirement or termination are available only in limited situations.

Pension benefits increase by a cost-of-living adjustment (“COLA”) up to a maximum of 3%, as applicable, each January 1st.

DFW has amended the Employee Plan for employees hired on or after January 1, 2010, whereby those employees will not be eligible to participate in the defined benefit employee retirement plan. Employees hired on or after January 1, 2010, are eligible to participate in either of two Savings Plus defined contribution plans based on the employee’s date of hire. Both Savings Plus plans have two main components: the mandatory employee contribution with DFW matching and the voluntary employee contribution with additional DFW matching. MissionSquare Retirement is the administrator of this Plan.

The defined contribution plans and the employer matching are not part of the Retirement Plans.

DPS Plan

The DPS Plan is open and available to all public safety officers employed by DFW. DPS participants may retire upon the satisfaction of the “Rule of 80” or the “25-Year Rule”. The “Rule of 80” is the attainment of age fifty and the completion of the number of years of benefit service that when added to the participant’s age equals the sum of eighty. The “25-year Rule” is the attainment of twenty-five years of benefit service, regardless of age, in a DPS covered position. Normal Retirement occurs, when vested, at the age of 62. The DPS Plan permits Early Retirement, when vested, between the ages of 55 and 61. Each plan participant is required to contribute seven percent of their compensation to the DPS Plan.

10 DFW International Airport

Retired DPS covered employees receive pension benefits in one of four ways (1) Single life annuity (2) Qualified joint and survivor annuity employee (3) Guaranteed period option or (4) Level income option.

Lump sum distributions upon retirement or termination are available only in limited situations. Pension benefits increase by COLA up to a maximum of 3%, as applicable, each January 1st. DPS covered employees who terminate before rendering five years of service forfeit the right to receive DPS Plan benefits. DPS covered employees who do not qualify under the “Rule of 80” or the “25-Year Rule” will be refunded the whole amount contributed (by the employee) to the plan (without interest) upon termination or retirement.

Death and Disability Benefits

If an active employee participating in either of the Plans dies, a death benefit is provided to the employee’s beneficiary calculated under the provisions of both the Employee Plan and DPS Plan.

Active employees who become disabled receive disability compensation in accordance with DFW’s Long Term Disability Income Plan. Upon returning to employment after the disability period, the employee’s years of service are determined without regard to the disability period. Employees on long-term disability will continue to accrue pension service credits while on disability.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The financial statements of the Employee Plan and DPS Plan are presented using the accrual basis of accounting and the economic resources measurement focus. Revenue is recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Plan member contributions are recognized in the period in which they are due. Employer contributions are recognized when due pursuant to legal requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

The Plans’ financial statements are reported in accordance with GASB Statement No. 67, “Financial Reporting for Pension Plans, an amendment of GASB Statement No. 25,” as amended (“Statement No.

67”). This statement requires the presentation of a statement of fiduciary net position (the amount held in a trust for paying retirement benefits) and a statement of changes in fiduciary net position. Statement No. 67 also requires the presentation of annual money-weighted rates of return in the notes to the financial statements and in the 10-year historical Required Supplementary Information (RSI) schedules.

Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires the use of estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

Investments

The Plans’ investments are stated at fair value or amortized cost. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments are valued at fair value based on quoted market prices when available. Uninvested cash positions are held in a designated money market sweep vehicle that is measured at its amortized cost. See Note 6 for descriptions of the basis and method of valuation for each type of investment held by the Plans.

11 DFW International Airport

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plans’ gains and losses on investments bought and sold as well as those held during the year.

Cash and cash equivalents

Cash balances are normally swept nightly to a money market fund and re-established the next business day. Any remaining cash is not collateralized. As of December 31, 2024, the bank and book balance of cash and cash equivalents was $2.8 million.

Future GASB Statements

In April 2024, the GASB issued Statement No. 103, “Financial Reporting Model Improvements” (GASB 103”), with the objective of improving key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This statement also addresses certain application issues. GASB 103 focuses on improvements in the following areas: Management’s discussion and analysis (MD&A), Unusual or infrequent items, Presentation of proprietary fund statement of revenues, expenses and changes in fund net position, Major component unit information, Budgetary comparison information, and Financial trends information in the statistical section. The requirements of this standard are effective for fiscal years beginning after June 15, 2025. DFW is evaluating the statement’s effects on its financial statements.

3. ACTUARIAL ASSUMPTIONS

In determining costs and liabilities, actuaries use assumptions about the future, such as rates of salary increase, probabilities of retirement, termination, death and disability, and an investment return assumption. The actuary also makes use of an actuarial funding method to allocate costs to past, current and future years of service. The actuarial assumptions and methods are adopted by the Board of Directors, based upon the recommendation of the actuary. For calculating the net pension liability, the Plans’ assets were valued at fair value.

The 2021 Actuarial Experience Study for the Plans was performed for the period ending December 31, 2020. This study included discussion of recent experience, presented recommendations for new actuarial assumptions and methods, and provided information about the actuarial impact of those recommendations on the liabilities and other key actuarial measures. The study was conducted by a qualified actuary in accordance with generally accepted actuarial principles and practices.

As a result of that study, DFW made two major assumption changes to the Plans. First, the discount rate (investment return) was lowered from 7.25% to 7.0%. Second, DFW changed its non-disabled mortality rates from RP-2014 Combined Healthy Mortality with Blue Collar adjustments projected with Scale BB from 2014 (incorporating Generational Mortality) to Pub-2010 Public Sector rates. The Public Sector rates were further segregated for General and Public Safety employees. In both Plans, the rate of future improvements in longevity will use MP-2020 scales for all years. Actuarial valuations of costs and liabilities as of December 31, 2024, are based upon the set of actuarial assumptions and methods adopted by DFW as a result of the 2021 Actuarial Experience Study.

12 DFW International Airport

Employee Plan

The Entry Age Normal Level Percentage of Pay funding method is used to allocate the actuarial present value of future benefits between the portion due for the current year (the normal cost), prior years (the actuarial accrued liability) and future years (present value of future normal cost). Under this cost method, the current and future normal costs are determined as a level percentage of pay. The following actuarial assumptions are based on the presumption that the Employee Plan will continue. Were the Employee Plan to terminate, different actuarial assumptions and other factors might be applicable in determining the actuarial accrued liability.

Valuation date As of January 1, 2025.

Actuarially assumed investment return 7.00% per annum compounded annually, net of investment expenses. Administrative expenses are added to the annual Actuarially Determined Contribution.

Mortality rates for males and females Experience-based table of rates that are specific to the class of employee. Last updated for the 2022 valuation pursuant to an experience study for the period ending December 31, 2020.

a. Retirees: Non-Disabled (Healthy)

Retirement Plans gender-distinct Pub-2010, Amount-Weighted, General, Healthy Retiree tables. Rates are projected by the long-term rates of Scale MP 2020 to account for future mortality improvements.

b. Retirees: Disabled

Retirement Plans gender-distinct Pub-2010, General, Healthy Retiree tables with a 3-year set-forward. The rates are projected on a fully generational basis by the long-term rates of scale MP 2020 to account for future mortality improvements. A minimum rate of 0.03 is applied to male and 0.03 to female.

c. Pre-retirement (Active)

Retirement Plans gender-distinct Pub-2010, Amount-Weighted, General, Healthy Retiree tables. Rates are projected by the long-term rates of Scale MP 2020 to account for future mortality improvements.

Retirement, disablement and separation rate Graduated rates based on age or years of employment (detailed in actuary's report).

Actuarial cost method Entry Age Normal Level Percentage of Pay.

Cost of living adjustment (at core inflation rate) 2.50% per annum.

Projected salary increase Variable Rate (3.50% to 6.00%) of increase based on years of services which includes inflation rate (2.50%).

Asset valuation method: Net pension liability Fair value.

Asset valuation method:

Actuarially determined contribution

Employee Plan's Significant Actuarial Assumptions:

Actuarial Value of Assets equals the Fair Value of Assets (FVA) adjusted to reflect 100% of any gains or losses from the current year against prior years' deferred gains or losses. Any remaining amount is recognized at a rate of at least 20% per year with each base being recognized over a period of no more than 5 years, but subject to the constraint that the result cannot be less than 67% or greater than 133% of the FVA.

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DPS Plan

The Entry Age Normal Level Percentage of Pay funding method is used to allocate the actuarial present value of future benefits between the portion due for the current year (the normal cost), prior years (the actuarial accrued liability) and future years (present value of future normal cost). Under this cost method, the current and future normal costs are determined as a level percentage of pay. The foregoing actuarial assumptions are based on the presumption that the DPS Plan will continue. Were the DPS Plan to terminate, different actuarial assumptions and other factors might be applicable in determining the actuarial accrued liability.

Valuation date As of January 1, 2025.

Actuarially assumed investment return 7.00% per annum compounded annually, net of investment expenses. Administrative expenses are added to the annual Actuarially Determined Contribution.

Mortality rates for males and females Experience-based table of rates that are specific to the class of employee. Last updated for the 2022 valuation pursuant to an experience study for the period ending December 31, 2020.

a. Retirees: Non-Disabled (Healthy)

Retirement Plans gender-distinct Pub-2010, Amount-Weighted, Public Safety, Healthy Retiree tables for Public Safety. Rates are projected by the long-term rates of Scale MP 2020 to account for future mortality improvements.

b. Retirees: Disabled

Retirement Plans gender-distinct Pub-2010, Public Safety, Healthy Retiree tables with a 3-year set-forward. The rates are projected on a fully generational basis by the long-term rates of scale MP 2020 to account for future mortality improvements. A minimum rate of 0.03 is applied to male and 0.03 to female.

c. Pre-retirement (Active)

Retirement Plans gender-distinct Pub-2010, Amount-Weighted, Public Safety, Healthy Retiree tables for Public Safety. Rates are projected by the long-term rates of Scale MP 2020 to account for future mortality improvements.

Retirement, disablement and separation rate Graduated rates based on age or years of employment (detailed in actuary's report).

Actuarial cost method Entry Age Normal Level Percentage of Pay.

Cost of living adjustment (at core inflation rate) 2.50% per annum.

Projected salary increase Variable Rate (3.50% to 11.25%) of increase based on years of services which includes inflation rate (2.50%).

Asset valuation method: Net pension liability Fair value.

Asset valuation method:

Actuarially determined contribution

Employee contribution rate 7.0% of compensation.

DPS Plan's Significant Actuarial Assumptions:

Actuarial Value of Assets equals the Fair Value of Assets (FVA) adjusted to reflect 100% of any gains or losses from the current year against prior years' deferred gains or losses. Any remaining amount is recognized at a rate of at least 20% per year with each base being recognized over a period of no more than 5 years, but subject to the constraint that the result cannot be less than 67% or greater than 133% of the FVA.

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4. PENSION LIABILITY AND RATES OF RETURN

Net Pension Liability

The net pension liability is measured as the total pension liability, less the fiduciary net position. Based on the assumptions listed in Note (3) and the projection of cash flows, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Accordingly, a single discount rate of 7.0% was applied to all periods of projected benefit payments to determine the net pension liability as of December 31, 2024. This single discount rate was used for both plans. The table below is based on the actuarial valuation dated January 1, 2025 (in thousands):

Sensitivity of Net Pension Liability

The table below provides the sensitivity of the net pension liability (asset) to changes in the discount rate as of December 31, 2024. In particular, the table presents the net pension liability, if it were calculated using a single discount rate that is one percentage point lower or one percentage point higher than the single discount rate. The table below is based on the actuarial valuation dated January 1, 2025 (in thousands):

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Plan 1% decrease from

7.00% to 6.00% Current discount rate 7.00% 1% increase from 7.00% to 8.00%

Employee 205,160$ 112,462$ 34,824$

DPS 112,262 60,990 19,110

Total 317,422$ 173,452$ 53,934$

Employee DPS Total

Total pension liability 770,130$ 355,830$ 1,125,960$ Plan fiduciary net position 657,668 294,840 952,508

Net pension liability 112,462$ 60,990$ 173,452$

Plan fiduciary net position as a percentage of the total pension liability 85.4% 82.9% 84.6%

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Real Rate of Return for the Asset Portfolio

The table below provides real rates of return and expected rates of return by asset class. The long-term expected rate of return on pension plan assets was determined using a building block method in which the best-estimate range of expected future real rates of return (expected returns, net of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates by the target asset allocation percentage and by adding the expected inflation. The target allocation and the best estimates of the geometric real rates of return for each major asset class are summarized in the following table:

Target Geometric Asset Class Allocation Real Return Return Domestic Equity 20.0% 4.8% 1.0% International / Global Equity 17.5% 5.6% 1.0% Core Fixed Income 10.0% 2.3% 0.2% Non-Core Fixed Income 15.0% 3.6% 0.5% Real Estate 12.5% 4.4% 0.6% Private Equity 12.5% 8.0% 1.0% Infrastructure (Real Assets, MLPs) 10.0% 4.5% 0.4% Cash 2.5% 1.1% 0.0% Total 100.0% 4.7%

Inflation 2.5% Geometric return before impact of asset correlation 7.2% Expected impact from diversified portfolio (0.2%) Expected geometric mean return

(50th percentile) 7.0%

The average expected geometric return on the portfolio was 7.0%, which was consistent with the 7.0% long-term expected rate of return assumption. The expected impact from a diversified portfolio is the balancing item based on the difference between the multiplicative returns by asset class and the expected return based on the expected correlations between asset classes.

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5. FUNDING POLICY AND CONTRIBUTIONS

DFW Board of Directors’ Retirement and Investment Committee determines each Plan’s funding policy.

In general, DFW contributes an amount approximately equal to the actuarially determined contribution for each fiscal year. This contribution becomes a component of the fiscal year operating budget approved annually by the Board of Directors. The Entry Age Normal funding method is used to determine the contribution requirement for each plan. The significant actuarial assumptions used to compute the Actuarially Determined Contribution (ADC) requirement are the same as those used to compute the total pension liability. The ADC is computed through an actuarial valuation performed as of each previous calendar year-end. Contribution amounts are determined by combining the normal cost with the layered amortization of the Unfunded Actuarially Accrued Liability (UAAL). The initial UAAL as of January 1, 2021, and each subsequent year’s gain/loss liability is amortized over a 15-year period (the initial base), as a level dollar for the Employee Plan and as a level percentage of payroll for the DPS Plan.

Employee Plan

Based on the annual ADC requirements for the Employee Plan, DFW contributed $20.6 million to the Trustee of Employee Retirement Plan in calendar year 2024. DFW also made an additional contribution of $4.4 million to the Trustee of Employee Retirement Plan in calendar year 2024, making a total contribution of $25.0 million in calendar year 2024.

DPS Plan

Based on the annual ADC requirements for the DPS Plan, DFW contributed $11.6 million to the Trustee of DPS Retirement Plan in calendar year 2024. DFW also made an additional contribution of $2.1 million to the Trustee of DPS Retirement Plan in calendar year 2024, making a total contribution of $13.7 million in calendar year 2024.

6. INVESTMENT VALUATION AND PERFORMANCE

The Plans’ investments by investment type as of December 31, 2024, are as follows (in thousands):

Investment type Employee DPS Total Limited Partnerships 296,184$ 132,785$ 428,969$ Commingled funds 190,314 85,322 275,636 Common stock 54,979 24,648 79,627 Mortgage backed securities 27,566 12,358 39,924 Money market funds 24,571 11,016 35,587 Government bonds 21,978 9,853 31,831 Mutual funds 13,669 6,128 19,797 Corporate bonds 12,089 5,420 17,509 Exchange traded funds 10,714 4,803 15,517 Asset backed bonds 2,307 1,034 3,341 American depository receipts 1,022 458 1,480 Commercial mortgage backed securities 521 234 755

CMO REMIC 198 89 287

Total 656,112$ 294,148$ 950,260$

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The following is a description of the hierarchy level and valuation methodologies for the Plans’ investments:

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement, not an entity specific measurement. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels. These three levels are as follows:

Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities in active markets that a government can access at the measurement date. An active market for the asset or liability is a market in which transactions for an asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.