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Retirement Plans | 12 Months Ended
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Dec. 31, 2013
Retirement Plans [Abstract] |
Retirement Plans | 14 Retirement Plans U.S. employees are eligible to participate in the Waters Employee Investment Plan, a 401(k) defined contribution plan, immediately upon hire. Employees may contribute from 1% to 30% of eligible pay on a pre-tax basis and the Company makes matching contributions of 100% for contributions up to 6% of eligible pay. Employees are 100% vested in employee and Company matching contributions. For the years ended December 31, 2013, 2012 and 2011, the Company's matching contributions amounted to $13 million, $12 million and $12 million, respectively. The Company maintains two defined benefit plans in the U.S. for which the pay credit accruals have been frozen, the Waters Retirement Plan and the Waters Retirement Restoration Plan (collectively, the “U.S. Pension Plans”). The Company also sponsors other employee benefit plans in the U.S., including a retiree healthcare plan, which provides reimbursement for medical expenses and is contributory. There are various employee benefit plans outside the United States (both defined benefit and defined contribution plans). Certain non-U.S. defined benefit plans (“Non-U.S. Pension Plans”) are included in the disclosures below, which are required under the accounting standards for retirement benefits. The Company contributed $12 million, $11 million and $10 million in the years ended December 31, 2013, 2012 and 2011, respectively, to the non-U.S. plans (primarily defined contribution plans) which are currently outside of the scope of the required disclosures. The eligibility and vesting of non-U.S. plans are generally consistent with local laws and regulations. The net periodic pension cost is made up of several components that reflect different aspects of the Company's financial arrangements as well as the cost of benefits earned by employees. These components are determined using the projected unit credit actua rial cost method and are based on certain actuarial assumptions. The Company's accounting policy is to reflect in the projected benefit obligation all benefit changes to which the Company is committed as of the current valuation date; use a market-related value of assets to determine pension expense; amortize increases in prior service costs on a straight-line basis over the expected future service of active participants as of the date such costs are first recognized; and amortize cumulative actuarial gains and losses in excess of 10% of the larger of the market-related value of plan assets and the projected benefit obligation over the expected future service of active participants. Summary data for the U.S. Pension Plans, U.S. retiree healthcare plan and N on-U.S. Pension P lans are presented in the following tables, using the measurement dates of December 31, 2013 and 2012, respectively. The reconciliation of the projected benefit obligations at December 31, 2013 and 2012 is as follows (in thousands):
|  |  |  |  | 2013 |  | 2012
|  |  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Projected benefit obligation, January 1 |  | $ | 145,047 |  | $ | 10,788 |  | $ | 64,857 |  | $ | 136,256 |  | $ | 9,146 |  | $ | 29,195
| Service cost |  |  | - |  |  | 1,733 |  |  | 5,079 |  |  | 9 |  |  | 1,447 |  |  | 4,318
| Interest cost |  |  | 5,505 |  |  | 333 |  |  | 1,966 |  |  | 5,806 |  |  | 350 |  |  | 1,988
| Actuarial (gains) losses |  |  | (13,328) |  |  | (1,292) |  |  | (925) |  |  | 6,184 |  |  | 325 |  |  | 5,790
| Benefits paid |  |  | (2,631) |  |  | (542) |  |  | (1,743) |  |  | (3,208) |  |  | (480) |  |  | (1,011)
| Plan amendments |  |  | - |  |  | - |  |  | 232 |  |  | - |  |  | - |  |  | -
| Other plans |  |  | - |  |  | - |  |  | 227 |  |  | - |  |  | - |  |  | 25,041
| Currency impact |  |  | - |  |  | - |  |  | (577) |  |  | - |  |  | - |  |  | (464)
Projected benefit obligation, December 31 |  | $ | 134,593 |  | $ | 11,020 |  | $ | 69,116 |  | $ | 145,047 |  | $ | 10,788 |  | $ | 64,857
The accumulated benefit obligations at December 31, 2013 and 2012 are as follows (in thousands):
|  |  |  | 2013 |  | 2012
|  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Accumulated benefit obligation |  | $ | 134,592 |  |  | ** |  | $ | 58,471 |  | $ | 145,045 |  |  | ** |  | $ | 55,937
** | Not applicable.
The reconciliation of the fair value of the plan assets at December 31, 2013 and 2012 is as follows (in thousands):
|  |  |  |  | 2013 |  | 2012
|  |  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Fair value of plan assets, January 1 |  | $ | 106,572 |  | $ | 5,357 |  | $ | 35,859 |  | $ | 91,610 |  | $ | 4,319 |  | $ | 12,798
| Actual return on plan assets |  |  | 19,755 |  |  | 693 |  |  | 1,948 |  |  | 11,761 |  |  | 516 |  |  | 1,007
| Company contributions |  |  | 4,820 |  |  | 290 |  |  | 4,104 |  |  | 6,409 |  |  | 275 |  |  | 4,243
| Employee contributions |  |  | - |  |  | 818 |  |  | 612 |  |  | - |  |  | 727 |  |  | 566
| Benefits paid |  |  | (2,631) |  |  | (542) |  |  | (1,743) |  |  | (3,208) |  |  | (480) |  |  | (1,011)
| Other plans |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 18,382
| Currency impact |  |  | - |  |  | - |  |  | 40 |  |  | - |  |  | - |  |  | (126)
Fair value of plan assets, December 31 |  | $ | 128,516 |  | $ | 6,616 |  | $ | 40,820 |  | $ | 106,572 |  | $ | 5,357 |  | $ | 35,859
The summary of the funded status of the plans at December 31, 2013 and 2012 is as follows (in thousands):
|  |  |  | 2013 |  | 2012
|  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Projected benefit obligation |  | $ | (134,593) |  | $ | (11,020) |  | $ | (69,116) |  | $ | (145,047) |  | $ | (10,788) |  | $ | (64,857)
Fair value of plan assets |  |  | 128,516 |  |  | 6,616 |  |  | 40,820 |  |  | 106,572 |  |  | 5,357 |  |  | 35,859
Projected benefit obligation in |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| excess of fair value of plan assets |  | $ | (6,077) |  | $ | (4,404) |  | $ | (28,296) |  | $ | (38,475) |  | $ | (5,431) |  | $ | (28,998)
The summary of the amounts recognized in the consolidated balance sheets for the plans at December 31, 2013 and 2012 is as follows (in thousands):
|  |  |  | 2013 |  | 2012
|  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Long-term assets |  | $ | - |  | $ | - |  | $ | 1,370 |  | $ | - |  | $ | - |  | $ | 1,407
Current liabilities |  |  | - |  |  | (262) |  |  | (193) |  |  | (140) |  |  | (283) |  |  | (175)
Long-term liabilities |  |  | (6,077) |  |  | (4,142) |  |  | (29,473) |  |  | (38,335) |  |  | (5,148) |  |  | (30,230)
Net amount recognized at December 31 |  | $ | (6,077) |  | $ | (4,404) |  | $ | (28,296) |  | $ | (38,475) |  | $ | (5,431) |  | $ | (28,998)
The summary of the components of net periodic pension costs for the plans for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):
|  |  |  | 2013 |  | 2012 |  | 2011
|  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Service cost |  | $ | - |  | $ | 915 |  | $ | 4,467 |  | $ | 9 |  | $ | 720 |  | $ | 3,752 |  | $ | 7 |  | $ | 545 |  | $ | 1,872
Interest cost |  |  | 5,505 |  |  | 333 |  |  | 1,966 |  |  | 5,806 |  |  | 350 |  |  | 1,988 |  |  | 6,166 |  |  | 364 |  |  | 1,079
Expected return on plan |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| assets |  |  | (8,034) |  |  | (355) |  |  | (901) |  |  | (7,619) |  |  | (287) |  |  | (838) |  |  | (7,443) |  |  | (277) |  |  | (313)
Net amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Prior service credit |  |  | - |  |  | (54) |  |  | (216) |  |  | - |  |  | (54) |  |  | (267) |  |  | - |  |  | (53) |  |  | (89)
| Net actuarial loss |  |  | 3,432 |  |  | - |  |  | 516 |  |  | 3,009 |  |  | - |  |  | 367 |  |  | 1,782 |  |  | - |  |  | 37
Net periodic pension cost |  | $ | 903 |  | $ | 839 |  | $ | 5,832 |  | $ | 1,205 |  | $ | 729 |  | $ | 5,002 |  | $ | 512 |  | $ | 579 |  | $ | 2,586
The summary of the changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):
|  |  |  | 2013 |  | 2012 |  | 2011
|  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Prior service cost |  | $ | - |  | $ | - |  | $ | 232 |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | - |  | $ | (3,619)
Net (loss) gain arising |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| during the year |  |  | (25,048) |  |  | (1,629) |  |  | (1,940) |  |  | 2,042 |  |  | 96 |  |  | 5,622 |  |  | 23,170 |  |  | 546 |  |  | 481
Amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Prior service credit |  |  | - |  |  | 54 |  |  | 216 |  |  | - |  |  | 54 |  |  | 267 |  |  | - |  |  | 53 |  |  | 89
| Net loss |  |  | (3,432) |  |  | - |  |  | (516) |  |  | (3,009) |  |  | - |  |  | (367) |  |  | (1,782) |  |  | - |  |  | (37)
Other Plans |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 5,970 |  |  | - |  |  | - |  |  | -
Currency impact |  |  | - |  |  | - |  |  | 497 |  |  | - |  |  | - |  |  | 424 |  |  | - |  |  | - |  |  | 55
Total recognized in other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| comprehensive income (loss) |  | $ | (28,480) |  | $ | (1,575) |  | $ | (1,511) |  | $ | (967) |  | $ | 150 |  | $ | 11,916 |  | $ | 21,388 |  | $ | 599 |  | $ | (3,031)
The summary of the amounts included in accumulated other comprehensive (loss) income in stockholders' equity for the plans at December 31, 2013 and 2012 is as follows (in thousands):
|  |  |  | 2013 |  | 2012
|  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Net actuarial (loss) gain |  | $ | (27,999) |  | $ | 1,233 |  | $ | (11,190) |  | $ | (56,479) |  | $ | (395) |  | $ | (13,674)
Prior service credit |  |  | - |  |  | 52 |  |  | 1,933 |  |  | - |  |  | 105 |  |  | 2,938
Total |  | $ | (27,999) |  | $ | 1,285 |  | $ | (9,257) |  | $ | (56,479) |  | $ | (290) |  | $ | (10,736)
The summary of the amounts included in accumulated other comprehensive income (loss) expected to be included in next year's net periodic benefit cost for the plans at December 31, 2013 is as follows (in thousands):
|  | 2013
|  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  | Pension |  | Healthcare |  | Pension
|  | Plans |  | Plan |  | Plans
Net actuarial (loss) gain |  | $ | (1,941) |  | $ | 16 |  | $ | (373)
Prior service credit |  |  | - |  |  | 52 |  |  | 187
Total |  | $ | (1,941) |  | $ | 68 |  | $ | (186)
The plans' investment asset mix is as follow at December 31, 2013 and 2012:
|  |  |  | 2013 |  | 2012
|  |  |  | U.S. |  | U.S. Retiree |  | Non-U.S. |  | U.S. |  | U.S. Retiree |  | Non-U.S.
|  |  |  | Pension |  | Healthcare |  | Pension |  | Pension |  | Healthcare |  | Pension
|  |  |  | Plans |  | Plan |  | Plans |  | Plans |  | Plan |  | Plans
Equity securities |  | 75% |  | 59% |  | 0% |  | 65% |  | 57% |  | 0%
Debt securities |  | 24% |  | 25% |  | 0% |  | 33% |  | 22% |  | 0%
Cash and cash equivalents |  | 1% |  | 16% |  | 16% |  | 2% |  | 21% |  | 17%
Insurance contracts and other |  | 0% |  | 0% |  | 84% |  | 0% |  | 0% |  | 83%
Total |  | 100% |  | 100% |  | 100% |  | 100% |  | 100% |  | 100%
The plans' investment policies include the following asset allocation guidelines:
|  | U.S. Pension and U.S. Retiree |  | Non-U.S.
|  | Healthcare Plans |  | Pension Plans
|  | Policy Target |  | Range |  | Policy Target
Equity securities |  | 60% |  | 40% | - | 80% |  | 0%
Debt securities |  | 25% |  | 20% | - | 60% |  | 0%
Cash and cash equivalents |  | 5% |  | 0% | - | 20% |  | 20%
Other |  | 10% |  | 0% | - | 20% |  | 80%
The asset allocation policy for the U.S. Pension Plans and U.S. retiree healthcare plan was developed in consideration of the following long-term investment objectives: achieving a return on assets consistent with the investment policy, achieving portfolio returns which exceed the average return for similarly invested funds and maximizing portfolio returns with at least a return of 2.5% above the one-year constant maturity Treasury bond yield over reasonable measurement periods and based on reasonable market cycles. Within the equity portfolio of the U.S. retirement plans, investments are diversified among market capitalization and investment strategy. The Company targets a 20% allocation of its U.S. retirement plans' equity portfolio to be invested in financial markets outside of the United States. The Company does not invest in its own stock within the U.S. retirement plans' assets. The fair value of the Company's retirement plan assets are as follows at December 31, 2013 (in thousands):
|  |  |  |  |  |  |  | Quoted Prices |  |  |  |  |  |
|  |  |  |  |  |  |  | in Active |  | Significant |  |  |
|  |  |  |  |  |  |  | Markets |  | Other |  | Significant
|  |  |  |  | Total at |  | for Identical |  | Observable |  | Unobservable
|  |  |  |  | December 31, |  | Assets |  | Inputs |  | Inputs
|  |  |  |  | 2013 |  | (Level 1) |  | (Level 2) |  | (Level 3)
U.S. Pension Plans: |  |  |  |  |  |  |  |  |  |  |  |
| Mutual funds(a) |  | $ | 117,718 |  | $ | 117,718 |  | $ | - |  | $ | -
| Common stocks(b) |  |  | 3,123 |  |  | 3,123 |  |  | - |  |  | -
| Cash equivalents(c) |  |  | 650 |  |  | - |  |  | 650 |  |  | -
| Hedge funds(d) |  |  | 7,025 |  |  | - |  |  | - |  |  | 7,025
|  | Total U.S. Pension Plans |  |  | 128,516 |  |  | 120,841 |  |  | 650 |  |  | 7,025
U.S. Retiree Healthcare Plan: |  |  |  |  |  |  |  |  |  |  |  |
| Mutual funds(e) |  |  | 5,589 |  |  | 5,589 |  |  | - |  |  | -
| Cash equivalents(c) |  |  | 1,027 |  |  | - |  |  | 1,027 |  |  | -
|  | Total U.S. Retiree Healthcare Plan |  |  | 6,616 |  |  | 5,589 |  |  | 1,027 |  |  | -
Non-U.S. Pension Plans: |  |  |  |  |  |  |  |  |  |  |  |
| Cash equivalents(c) |  |  | 6,400 |  |  | 6,400 |  |  | - |  |  | -
| Bank and insurance investment contracts(f) |  |  | 34,420 |  |  | - |  |  | - |  |  | 34,420
|  | Total Non-U.S. Pension Plans |  |  | 40,820 |  |  | 6,400 |  |  | - |  |  | 34,420
|  |  | Total fair value of retirement plan assets |  | $ | 175,952 |  | $ | 132,830 |  | $ | 1,677 |  | $ | 41,445
The fair value of the Company's retirement plan assets are as follows at December 31, 2012 (in thousands):
|  |  |  |  |  |  |  | Quoted Prices |  |  |  |  |  |
|  |  |  |  |  |  |  | in Active |  | Significant |  |  |
|  |  |  |  |  |  |  | Markets |  | Other |  | Significant
|  |  |  |  | Total at |  | for Identical |  | Observable |  | Unobservable
|  |  |  |  | December 31, |  | Assets |  | Inputs |  | Inputs
|  |  |  |  | 2012 |  | (Level 1) |  | (Level 2) |  | (Level 3)
U.S. Pension Plans: |  |  |  |  |  |  |  |  |  |  |  |
| Mutual funds(g) |  | $ | 93,061 |  | $ | 92,830 |  | $ | 231 |  | $ | -
| Common stocks(b) |  |  | 4,886 |  |  | 4,886 |  |  | - |  |  | -
| Cash equivalents(c) |  |  | 2,359 |  |  | - |  |  | 2,359 |  |  | -
| Hedge funds(d) |  |  | 6,266 |  |  | - |  |  | - |  |  | 6,266
|  | Total U.S. Pension Plans |  |  | 106,572 |  |  | 97,716 |  |  | 2,590 |  |  | 6,266
U.S. Retiree Healthcare Plan: |  |  |  |  |  |  |  |  |  |  |  |
| Mutual funds(h) |  |  | 4,236 |  |  | 4,236 |  |  | - |  |  | -
| Cash equivalents(c) |  |  | 1,121 |  |  | - |  |  | 1,121 |  |  | -
|  | Total U.S. Retiree Healthcare Plan |  |  | 5,357 |  |  | 4,236 |  |  | 1,121 |  |  | -
Non-U.S. Pension Plans: |  |  |  |  |  |  |  |  |  |  |  |
| Cash equivalents(c) |  |  | 6,162 |  |  | 6,162 |  |  | - |  |  | -
| Bank and insurance investment contracts(f) |  |  | 29,697 |  |  | - |  |  | - |  |  | 29,697
|  | Total Non-U.S. Pension Plans |  |  | 35,859 |  |  | 6,162 |  |  | - |  |  | 29,697
|  |  | Total fair value of retirement plan assets |  | $ | 147,788 |  | $ | 108,114 |  | $ | 3,711 |  | $ | 35,963
The mutual fund balance in the U.S. Pension Plans are invested in the following categories: 41% in the common stock of large-cap U.S. companies, 33% in the common stock of international growth companies, and 26% in fixed income bonds issued by U.S. companies and by the U.S. government and its agencies. Represents primarily amounts invested in common stock of technology, healthcare, financial, energy and consumer staples and discretionary U.S. companies. Primarily represents money market funds held with various financial institutions. Hedge fund invests in both short and long term U.S. common stocks. Management of the hedge funds has the ability to shift investments from value to growth strategies, from large to small capitalization stocks and from a net long position to a net short position. The mutual fund balance in the U.S. Retiree Healthcare Plan is invested in the following categories: 58% in the common stock of large-cap U.S. companies, 12% in the common stock of international growth companies and 30% in fixed income bonds of U.S. companies and U.S. government. Amount represents bank and insurance guaranteed investment contracts. The mutual fund balance in the U.S. Pension Plans are invested in the following categories: 34% in the common stock of large-cap U.S. companies, 27% in the common stock of international growth companies, and 39% in fixed income bonds issued by U.S. companies and by the U.S. government and its agencies. The mutual fund balance in the U.S. Retiree Healthcare Plan is invested in the following categories: 63% in the common stock of large-cap U.S. companies, 9% in the common stock of international growth companies and 28% in fixed income bonds of U.S. companies and U.S. government. The following table summarizes the changes in fair value of the Level 3 retirement plan assets for the years ended December 31, 2013 and 2012 (in thousands):
|  |  |  |  |  |  |  |  |  | Insurance
|  |  |  |  |  |  |  |  |  | Guaranteed
|  |  |  |  |  |  | Hedge |  | Investment
|  |  |  | Total |  | Funds |  | Contracts
Fair value of assets, December 31, 2011 |  | $ | 13,057 |  | $ | 6,018 |  | $ | 7,039
| Net purchases (sales) and appreciation (depreciation) |  |  | 4,524 |  |  | 248 |  |  | 4,276
| Other Plans |  |  | 18,382 |  |  | - |  |  | 18,382
Fair value of assets, December 31, 2012 |  |  | 35,963 |  |  | 6,266 |  |  | 29,697
| Net purchases (sales) and appreciation (depreciation) |  |  | 5,482 |  |  | 759 |  |  | 4,723
Fair value of assets, December 31, 2013 |  | $ | 41,445 |  | $ | 7,025 |  | $ | 34,420
The weighted-average assumptions used to determine the benefit obligation in the consolidated balance sheets at December 31, 2013, 2012 and 2011 are as follows:
|  | 2013 |  | 2012 |  | 2011
|  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S.
Discount rate |  | 4.82% |  | 3.29% |  | 3.90% |  | 3.10% |  | 4.33% |  | 3.29%
Increases in compensation levels |  | 4.75% |  | 2.54% |  | 4.75% |  | 2.59% |  | 4.75% |  | 2.91%
The weighted-average assumptions used to determine the net periodic pension cost at December 31, 2013, 2012 and 2011 are as follows:
|  | 2013 |  | 2012 |  | 2011
|  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S.
Discount rate |  | 3.61% |  | 3.10% |  | 4.26% |  | 3.29% |  | 5.10% |  | 3.63%
Return on plan assets |  | 6.94% |  | 2.40% |  | 7.12% |  | 1.88% |  | 7.20% |  | 2.50%
Increases in compensation levels |  | 4.75% |  | 2.59% |  | 4.75% |  | 2.91% |  | 4.75% |  | 2.90%
To develop the expected long-term rate of return on assets assumption, the Company considered historical returns and future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio and historical expenses paid by the plan. A one-quarter percentage point increase in the assumed long-term rate of return on assets would decrease the Company's net periodic benefit cost for the Waters Retirement Plan by less than $1 million. A one-quarter percentage point increase in the discount rate would decrease the Company's net periodic benefit cost for the Waters Retirement Plan by less than $1 million. During fiscal year 2014, the Company expects to contribute a total of approximately $8 million to $10 million to the Company's defined benefit plans. Estimated future benefit payments as of December 31, 2013 are as follows (in thousands):
|  | U.S. Pension and |  | Non-U.S. |  |
|  | Retiree Healthcare |  | Pension |  |
|  | Plans |  | Plans |  | Total
2014 |  | $ | 7,162 |  | $ | 982 |  | $ | 8,144
2015 |  |  | 7,191 |  |  | 1,176 |  |  | 8,367
2016 |  |  | 7,516 |  |  | 3,236 |  |  | 10,752
2017 |  |  | 8,097 |  |  | 1,844 |  |  | 9,941
2018 |  |  | 8,654 |  |  | 1,841 |  |  | 10,495
2019 - 2023 |  |  | 55,140 |  |  | 14,750 |  |  | 69,890

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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