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Employee Retirement Plans (Notes) | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits [Abstract] |
EMPLOYEE RETIREMENT PLANS | NOTE Q – EMPLOYEE RETIREMENT PLANS Defined Benefit Pension Plans Domestic Retirement Plans Following our 2006 acquisition of Guidant Corporation (Guidant), we assumed the Guidant Supplemental Retirement Plan, a frozen, non-qualified defined benefit plan for certain former officers and employees of Guidant. The Guidant Supplemental Retirement Plan was partially funded through a Rabbi Trust that contains segregated company assets within restricted cash used to pay the benefit obligations related to the plan. We also maintain an Executive Retirement Plan, a defined benefit plan covering executive officers and other key contributors. Participants may retire with benefits once retirement conditions have been satisfied. Other International Retirement Plans In addition, we maintain retirement plans covering certain international employees. We use a December 31 measurement date for these plans and record the net unfunded and underfunded portion as a liability within non-current liabilities, with the current portion within accrued expenses, on the consolidated balance sheets, recognizing changes primarily through OCI. As of December 31, 2024 and 2023, the funded status of our plans was unfunded or underfunded in aggregate. The outstanding obligation is as follows:
| As of December 31, 2024
(in millions) | Accumulated Benefit Obligation (ABO) |  | Projected Benefit Obligation (PBO) |  | Fair value of Plan Assets |  | Unfunded/Underfunded PBO Recognized
Domestic Retirement Plans | $ | 56 |  |  | $ | 60 |  |  | $ | — |  |  | $ | 60 |
Other International Retirement Plans | 150 |  |  | 167 |  |  | 100 |  |  | 67 |
| $ | 206 |  |  | $ | 227 |  |  | $ | 100 |  |  | $ | 127 |
| As of December 31, 2023
(in millions) | Accumulated Benefit Obligation (ABO) |  | Projected Benefit Obligation (PBO) |  | Fair value of Plan Assets |  | Unfunded/Underfunded PBO Recognized
Domestic Retirement Plans | $ | 54 |  |  | $ | 59 |  |  | $ | — |  |  | $ | 59 |
Other International Retirement Plans | 145 |  |  | 159 |  |  | 101 |  |  | 58 |
| $ | 199 |  |  | $ | 218 |  |  | $ | 101 |  |  | $ | 117 |
A reconciliation of the changes in the PBO for our retirement plans is as follows:
| Year Ended December 31,
(in millions) | 2024 |  | 2023
Beginning obligations | $ | 218 |  |  | $ | 207 |
Service costs | 10 |  |  | 10 |
Interest costs | 7 |  |  | 7 |
Actuarial (gain) loss | 10 |  |  | (4) |
Plan curtailments/settlements | — |  |  | (0) |
Plan amendments and assumption changes | 4 |  |  | 6 |
Benefits paid | (10) |  |  | (10) |
Impact of foreign currency fluctuations | (11) |  |  | 3 |
Ending obligation | $ | 227 |  |  | $ | 218 |
The critical assumptions associated with our employee retirement plans for 2024 are as follows:
| Weighted Average Discount Rate |  | Weighted Average Expected Return |  |  |  | Weighted Average Rate of Compensation Increase(1)
Domestic Retirement Plans | 5.28% |  | n/a |  | 2.00%
Other International Retirement Plans | 2.50% |  |  |  | 2.76% |  | 3.25%
(1) Rates of compensation increase were not weighted by relative fair value. As such, the amount represents the median of the inputs and is not a weighted average. The critical assumptions associated with our employee retirement plans for 2023 are as follows:
| Weighted Average Discount Rate |  | Weighted Average Expected Return |  | Weighted Average Rate of Compensation Increase(1)
Domestic Retirement Plans | 4.89% |  | n/a |  | 2.00%
Other International Retirement Plans | 2.85% |  | 2.66% |  | 3.00%
(1) Rates of compensation increase were not weighted by relative fair value. As such, the amount represents the median of the inputs and is not a weighted average. A reconciliation of the changes in the fair value of plan assets for our funded retirement plans is as follows:
| Year Ended December 31,
(in millions) | 2024 |  | 2023
Beginning fair value | $ | 101 |  |  | $ | 101 |
Actual return on plan assets | 3 |  |  | (1) |
Employer contributions | 11 |  |  | 11 |
Participant contributions | 1 |  |  | 1 |
Plan curtailments/settlements | — |  |  | (0) |
Actuarial gain (loss) | 1 |  |  | (0) |
Benefits paid | (10) |  |  | (10) |
Impact of foreign currency fluctuations | (8) |  |  | 0 |
Ending fair value | $ | 100 |  |  | $ | 101 |
For our defined benefit plans, we base our discount rate on the rates of return available on high-quality bonds with maturities approximating the expected period over which benefits will be paid. The rate of compensation increase is based on historical and expected rate increases. We base our rate of expected return on plan assets on historical experience, our investment guidelines and expectations for long-term rates of return. Our assets are invested in a variety of securities, primarily equity securities and government bonds. These securities are considered Level 1 and Level 2 investments. Expected benefit payments are estimated based on the same assumptions used in determining our benefit obligation as of December 31, 2024. Actual benefit payments will depend on future employment and compensation, average years employed and average life spans, in addition to other factors. Changes in any of these factors could significantly impact these estimated future benefit payments. Benefit payments expected to be paid during the next ten years for our Domestic Retirement Plans and our Other International Retirement Plans are as follows:
(in millions) | Post Retirement Benefits
2025 | $ | 20 |
2026 | 12 |
2027 | 15 |
2028 | 14 |
2029 | 10 |
2030 - 2034 | 76 |
Defined Contribution Plan We also sponsor a voluntary 401(k) Retirement Savings Plan for eligible employees. We match 200 percent of employee elective deferrals for the first two percent of employee eligible compensation and 50 percent of employee elective deferrals greater than two percent, but not exceeding six percent, of employee eligible compensation. Total expense for our matching contributions to the plan was $147 million in 2024, $135 million in 2023 and $123 million in 2022.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/710/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/712/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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