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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Defined Benefit Plans

The Company maintains defined benefit pension plans in Japan and certain European countries.
 Years Ended December 31,
 20242023
(in millions)
Change in projected benefit obligation:  
Beginning of year$111.7 $94.1 
Service cost5.0 4.3 
Interest cost1.9 2.3 
Participant contributions2.0 1.9 
Actuarial loss3.6 9.9 
Benefits paid(1.5)(3.8)
Plan amendment(0.5)(0.4)
Divestiture (Note 5)(4.4)— 
Settlements and curtailment gain (Note 5)(5.4)— 
Currency exchange rate changes and other(5.7)3.4 
End of year$106.7 $111.7 
Change in fair value of plan assets:  
Beginning of year$75.5 $70.6 
Actual return on plan assets6.3 0.8 
Employer contributions6.4 3.5 
Participant contributions2.0 1.9 
Divestiture (Note 5)(4.4)— 
Settlements(5.9)— 
Benefits paid(1.5)(3.8)
Currency exchange rate changes and other(3.8)2.5 
End of year$74.6 $75.5 
Funded Status  
Projected benefit obligation$(106.7)$(111.7)
Plan assets at fair value74.6 75.5 
Underfunded status$(32.1)$(36.2)
Net amounts recognized on the consolidated balance sheet:  
Other liabilities$32.1 $36.2 
Accumulated other comprehensive loss, net of tax:  
Net actuarial loss$(9.1)$(10.3)
Net prior service credit4.4 5.2 
Deferred income tax benefit0.6 0.9 
Total$(4.1)$(4.2)
The accumulated benefit obligation for all defined benefit pension plans was $102.1 million and $106.8 million as of December 31, 2024 and 2023, respectively. Pension plans with accumulated benefit obligations in excess of plan assets and plans with projected benefit obligations in excess of plan assets were as follows:

 December 31,
 20242023
(in millions)
Plans with accumulated benefit obligation in excess of plan assets
Accumulated benefit obligation$89.1 $106.8 
Fair value of plan assets61.6 75.5 
Plans with projected benefit obligation in excess of plan assets
Projected benefit obligation$106.7 $111.7 
Fair value of plan assets74.6 75.5 

The components of net periodic pension benefit cost are as follows (in millions):

 Years Ended December 31,
 202420232022
Service cost, net$5.0 $4.3 $5.5 
Interest cost1.9 2.3 0.5 
Expected return on plan assets(3.1)(2.7)(1.5)
Settlements and curtailment gain1.2 — 0.1 
Amortization of actuarial loss0.2 — 0.5 
Amortization of prior service credit (0.8)(0.8)(0.7)
Net periodic pension benefit cost$4.4 $3.1 $4.4 

Expected long-term returns for each of the plans' strategic asset classes were developed through consultation with investment advisors. Several factors were considered, including a survey of investment managers' expectations, current market data, minimum guaranteed returns in certain insurance contracts, and historical market returns over long periods. Using policy target allocation percentages and the asset class expected returns, a weighted-average expected return was calculated.

To select the discount rates for the defined benefit pension plans, the Company uses a modeling process that involves matching the expected duration of its benefit plans to a yield curve constructed from a portfolio of AA-rated fixed-income debt instruments, or their equivalent. For each country, the Company uses the implied yield of this hypothetical portfolio at the appropriate duration as a discount rate benchmark.

The weighted-average assumptions used to determine the benefit obligations are as follows:
 December 31,
 20242023
Discount rate1.5 %1.8 %
Rate of compensation increase2.8 %2.9 %
Cash balance interest crediting rate1.5 %1.5 %
Social securities increase1.8 %1.8 %
Pension increase2.2 %2.2 %
The weighted-average assumptions used to determine the net periodic pension benefit cost are as follows:
 Years ended December 31,
 202420232022
Discount rate1.8 %2.5 %0.5 %
Expected return on plan assets4.3 %3.7 %2.1 %
Rate of compensation increase2.9 %2.9 %2.6 %
Cash balance interest crediting rate1.5 %1.5 %1.5 %
Social securities increase1.8 %1.8 %1.6 %
Pension increase2.2 %2.2 %1.8 %

Plan Assets

The Company's investment strategy for plan assets is to seek a competitive rate of return relative to an appropriate level of risk and to earn performance rates of return in accordance with the benchmarks adopted for each asset class. Risk management practices include diversification across asset classes and investment styles, and periodic rebalancing toward asset allocation targets.

The Company's Administrative and Investment Committee decides on the defined benefit plan provider in each location and that provider decides the target allocation for the Company's defined benefit plan at that location. The target asset allocation selected reflects a risk/return profile the Company feels is appropriate relative to the plans' liability structure and return goals. In certain plans, asset allocations may be governed by local requirements. Target weighted-average asset allocations at December 31, 2024, by asset category, are as follows:
Equity securities30.9 %
Debt securities37.2 %
Real estate14.7 %
Other17.2 %
Total100.0 %

The fair values of the Company's defined benefit plan assets at December 31, 2024 and 2023, by asset category, are as follows (in millions):
December 31, 2024Level 1Level 2Level 3Total
Asset Category    
Cash$1.1 $— $— $1.1 
Equity securities:    
United States equities2.0 — — 2.0 
International equities21.1 — — 21.1 
Debt securities:    
United States government bonds3.2 — — 3.2 
International government bonds24.6 — — 24.6 
Real estate— 11.0 — 11.0 
Mortgages— 3.0 — 3.0 
Insurance contracts— — 0.7 0.7 
Total plan assets measured at fair value
$52.0 $14.0 $0.7 $66.7 
Alternative investments measured at net asset value (a)
7.9 
Total plan assets
$74.6 
 
December 31, 2023Level 1Level 2Level 3Total
Asset Category
Cash$2.0 $— $— $2.0 
Equity securities:
United States equities2.6 — — 2.6 
International equities21.0 — — 21.0 
Debt securities:
United States government bonds3.5 — — 3.5 
International government bonds26.0 — — 26.0 
Real estate— 8.7 — 8.7 
Mortgages— 4.0 — 4.0 
Insurance contracts— — 0.8 0.8 
Total plan assets $55.1 $12.7 $0.8 $68.6 
Alternative investments measured at net asset value (a)6.9 
Total plan assets $75.5 
_______________________________________
(a)     Certain investments that were measured at net asset value per share have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total plan assets.

The following table summarizes the changes in fair value of the Company's defined benefit plan assets that have been classified as Level 3 for the years ended December 31, 2024 and 2023 (in millions):

 Insurance
Contracts
Balance at December 31, 2022$0.8 
Actual return on plan assets: 
Relating to assets still held at December 31, 2023
0.2 
Purchases, sales and settlements(0.2)
Balance at December 31, 20230.8 
Actual return on plan assets: 
Relating to assets still held at December 31, 2024
0.4 
Purchases, sales and settlements(0.5)
Balance at December 31, 2024$0.7 

Equity and debt securities are valued at fair value based on quoted market prices reported on the active markets on which the individual securities are traded. Real estate investments are valued by discounting to present value the cash flows expected to be generated by the specific properties. Investments in mortgages are valued at cost, which is deemed to approximate its fair value. The insurance contracts are valued at the cash surrender value of the contracts, which is deemed to approximate its fair value. Alternative investments include hedge funds, private equity funds and other miscellaneous investments, and are valued using the net asset value provided by the fund administrator as a practical expedient. The net asset value is based on the fair value of the underlying assets owned by the fund divided by the number of shares outstanding.
The following benefit payments, which reflect expected future service, as appropriate, at December 31, 2024, are expected to be paid (in millions):

2025$6.9 
20265.5 
20275.8 
20287.5 
20297.2 
2030-203436.5 

As of December 31, 2024, expected employer contributions for 2025 are $2.6 million.

Defined Contribution Plans

The Company's employees in the United States are eligible to participate in a qualified defined contribution plan. In the United States, participants may contribute up to 25% of their eligible compensation (subject to tax code limitation) to the plan. Edwards Lifesciences matches the first 4% of the participant's annual eligible compensation contributed to the plan on a dollar-for-dollar basis. Edwards Lifesciences matches the next 2% of the participant's annual eligible compensation to the plan on a 50% basis. Prior to the sale of the Company's Critical Care product group (see Note 5), participants in Puerto Rico could contribute up to 25% of their annual compensation (subject to tax code limitation) to the plan. Edwards Lifesciences matched the first 4% of participant's annual eligible compensation contributed to the plan on a 50% basis. The Company also provided a 2% profit sharing contribution calculated on eligible earnings for each employee. Matching contributions relating to Edwards Lifesciences employees were $56.2 million, $51.0 million, and $45.1 million in 2024, 2023, and 2022, respectively.

The Company also has nonqualified deferred compensation plans for a select group of employees. The plans provide eligible participants the opportunity to defer eligible compensation to future dates specified by the participant with a return based on investment alternatives selected by the participant. The amount accrued under these nonqualified plans was $146.5 million and $125.6 million at December 31, 2024 and 2023, respectively.