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Retirement Plans
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Retirement Plans
17    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 up to 60% of eligible pay on a
pre-tax
or
post-tax
basis and the Company makes matching contributions of 100% for contributions up to 6% of eligible pay. The Company also sponsors a 401(k) Restoration Plan, which is a nonqualified defined contribution plan. Employees are 100% vested in employee and Company matching contributions for both plans. For the years ended December 31, 2020, 2019 and 2018, the Company’s matching contributions amounted to $
7 million, $17 million and $17 million, respectively. Due to the uncertain global business environment relating to the COVID-19 pandemic, the Company’s management temporarily suspended the employer matching contributions associated with these 401(k) plans, which was implemented from May 22, 2020 through the end of 2020. 
In May 2018, the Company’s Board of Directors approved the termination of two defined benefit pension 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”). In December 2018, the Company settled the Waters Retirement Plan obligation by making lump-sum cash payments and purchasing annuity contracts for participants to permanently extinguish the pension plan’s obligations. As a result, the Company 
recorded a $46 million charge to other expense, which consisted of a $6 million cash contribution to the plan and a $40 million
non-cash
charge related to the reversal of unrecognized actuarial losses recorded in accumulated other comprehensive income in the stockholders’ equity. The $46 million
pre-tax
charge reduced net income per diluted share by $0.39. The termination of the Waters Retirement Restoration Plan was completed in 2019.
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 $14 million, 
$15 million and $13 million in the years ended December 31, 2020, 2019 and 2018, 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 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 actuarial 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
Non-U.S. Pension
Plans are presented in the following tables, using the measurement dates of December 31, 2020 and 2019, respectively.
The reconciliation of the projected benefit obligations for the plans at December 31, 2020 and 2019 is as follows (in thousands):
 
 
  
2020
 
 
2019
 
 
  
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
 
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
Projected benefit obligation, January 1
  
$
—
 
  
$
21,186
 
 
$
103,366
 
 
$
972
 
 
$
17,724
 
 
$
93,722
 
Service cost
  
 
—
 
  
 
665
 
 
 
4,519
 
 
 
—  
 
 
 
499
 
 
 
4,339
 
Employee contributions
  
 
—
 
  
 
1,149
 
 
 
514
 
 
 
—  
 
 
 
1,214
 
 
 
499
 
Interest cost
  
 
—
 
  
 
711
 
 
 
1,413
 
 
 
29
 
 
 
777
 
 
 
1,735
 
Actuarial losses (gains)
  
 
—
 
  
 
2,788
 
 
 
2,624
 
 
 
(32
) 
 
 
2,081
 
 
 
13,385
 
Benefits paid
  
 
—
 
  
 
(1,130
) 
 
 
(1,474
) 
 
 
—  
 
 
 
(1,109
) 
 
 
(3,281
) 
Plan settlements
  
 
—
 
  
 
—
 
 
 
(1,449
) 
 
 
(969
) 
 
 
—  
 
 
 
(7,407
) 
Other plans
  
 
—
 
  
 
—
 
 
 
—
 
 
 
—  
 
 
 
—  
 
 
 
1,598
 
Currency impact
  
 
—
 
  
 
—
 
 
 
10,077
 
 
 
—  
 
 
 
—  
 
 
 
(1,224
) 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Projected benefit obligation, December 31
  
$
—
 
  
$
25,369
 
 
$
119,590
 
 
$
—  
 
 
$
21,186
 
 
$
103,366
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The reconciliation of the fair value of the plan assets at December 31, 2020 and 2019 is as follows (in thousands):
 
 
  
2020
 
 
2019
 
 
  
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
 
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
Fair value of plan assets, January 1
  
$
—
 
  
$
13,773
 
 
$
83,011
 
 
$
—  
 
 
$
11,080
 
 
$
81,587
 
Actual return on plan assets
  
 
—
 
  
 
1,967
 
 
 
1,395
 
 
 
—  
 
 
 
2,140
 
 
 
6,237
 
Company contributions
  
 
—
 
  
 
409
 
 
 
3,581
 
 
 
969
 
 
 
448
 
 
 
6,103
 
Employee contributions
  
 
—
 
  
 
1,149
 
 
 
514
 
 
 
—  
 
 
 
1,214
 
 
 
499
 
Plan settlements
  
 
—
 
  
 
—
 
 
 
(1,449
) 
 
 
(969
) 
 
 
—  
 
 
 
(7,044
) 
Benefits paid
  
 
—
 
  
 
(1,130
) 
 
 
(1,474
) 
 
 
—  
 
 
 
(1,109
) 
 
 
(3,281
) 
Other plans
  
 
—
 
  
 
—
 
 
 
—
 
 
 
—  
 
 
 
—  
 
 
 
82
 
Currency impact
  
 
—
 
  
 
—
 
 
 
8,312
 
 
 
—  
 
 
 
—  
 
 
 
(1,172
) 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Fair value of plan assets, December 31
  
$
—
 
  
$
16,168
 
 
$
93,890
 
 
$
—  
 
 
$
13,773
 
 
$
83,011
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The summary of the funded status for the plans at December 31, 2020 and 2019 is as follows (in thousands):
 
 
  
2020
 
 
2019
 
 
  
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
Projected benefit obligation
  
$
—
 
  
$
(25,369
) 
 
$
(119,590
) 
 
$
—  
 
  
$
(21,186
) 
 
$
(103,366
) 
Fair value of plan assets
  
 
—
 
  
 
16,168
 
 
 
93,890
 
 
 
—  
 
  
 
13,773
 
 
 
83,011
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
Funded status
  
$
—
 
  
$
(9,201
) 
 
$
(25,700
) 
 
$
—  
 
  
$
(7,413
) 
 
$
(20,355
) 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
 
T
h
e change in the Company’s projected benefit obligation for the year ended December 31, 2020 was primarily due to fluctuations in foreign currency exchange rates during the year, net actuarial losses that arose during the year driven by a decline in discount rates and differences between expected and actual return on plan assets. The change in the Company’s projected benefit obligation for the year ended December 31, 2019 was primarily due to net actuarial losses that arose during the year driven by a decline in discount rates and differences between expected and actual return on plan assets.
The summary of the amounts recognized in the consolidated balance sheets for the plans at Dec
e
mber 31, 2020 and 2019 is as follows (in thousands):
 
 
  
2020
 
 
2019
 
 
  
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
Long-term assets
  
$
—
 
  
$
—
 
 
$
971
 
 
$
—  
 
  
$
—  
 
 
$
1,466
 
Current liabilities
  
 
—
 
  
 
(409
) 
 
 
(1,999
) 
 
 
—  
 
  
 
(448
) 
 
 
(4
) 
Long-term liabilities
  
 
—
 
  
 
(8,792
) 
 
 
(24,672
) 
 
 
—  
 
  
 
(6,965
) 
 
 
(21,817
) 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
Net amount recognized at December 31
  
$
—
 
  
$
(9,201
) 
 
$
(25,700
) 
 
$
—  
 
  
$
(7,413
) 
 
$
(20,355
) 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
The accumulated benefit obligation for all defined benefit pension plans was $103 million and $88
 million at December 31,
 
2020 and 
2019
, respectively
.
The summary of the
Non-U.S.
Pension Plans that have accumulated benefit obligations in excess of plan assets at December 31, 2020 and 2019 is as follows (in thousands):
 
 
  
2020
 
  
2019
 
Accumulated benefit obligations
  
$
84,940
 
  
$
73,644
 
Fair value of plan assets
  
$
68,334
 
  
$
60,832
 
The summary of the
Non-U.S.
Pension Plans that have projected benefit obligations in excess of plan assets at December 31, 2020 and 2019 is as follows (in thousands):
 
 
  
2020
 
  
2019
 
Projected benefit obligations
  
$
107,093
 
  
$
92,984
 
Fair value of plan assets
  
$
80,422
 
  
$
71,163
 
The sum
m
ary of the components of net periodic pension costs for the plans for the years ended December 31, 2020, 2019 and 2018 is as follows (in thousands):
 
 
  
2020
 
 
2019
 
 
2018
 
 
  
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
 
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
Service cost
  
$
—
 
  
$
665
 
 
$
4,519
 
 
$
—  
 
  
$
499
 
 
$
4,339
 
 
$
568
 
 
$
566
 
 
$
5,368
 
Interest cost
  
 
—
 
  
 
711
 
 
 
1,413
 
 
 
29
 
  
 
777
 
 
 
1,735
 
 
 
6,491
 
 
 
636
 
 
 
1,707
 
Expected return on plan assets
  
 
—
 
  
 
(871
) 
 
 
(1,874
) 
 
 
—  
 
  
 
(706
) 
 
 
(2,154
) 
 
 
(6,833
) 
 
 
(706
) 
 
 
(1,974
) 
Settlement loss
  
 
—
 
  
 
—
 
 
 
235
 
 
 
27
 
  
 
—  
 
 
 
1,548
 
 
 
45,157
 
 
 
—  
 
 
 
—  
 
Net amortization:
  
      
  
      
 
      
 
      
  
      
 
      
 
      
 
      
 
      
Prior service credit
  
 
—
 
  
 
(19
) 
 
 
(163
) 
 
 
—  
 
  
 
(19
) 
 
 
(108
) 
 
 
—  
 
 
 
(19
) 
 
 
(108
) 
Net actuarial loss
  
 
—
 
  
 
—
 
 
 
1,571
 
 
 
—  
 
  
 
—  
 
 
 
531
 
 
 
3,082
 
 
 
—  
 
 
 
680
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net periodic pension cost
  
$
—
 
  
$
486
 
 
$
5,701
 
 
$
56
 
  
$
551
 
 
$
5,891
 
 
$
48,465
 
 
$
477
 
 
$
5,673
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The summary of the changes in amounts recognized in other comprehensive income (loss) for the plans for the years ended December 31, 2020, 2019 and 2018 is as follows (in thousands):
 
 
  
2020
 
 
2019
 
 
2018
 
 
  
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
 
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
Prior service cost
  
$
—
 
  
$
—
 
 
$
—
 
 
$
—  
 
  
$
—  
 
 
$
—  
 
 
$
—  
 
 
$
130
 
 
$
44
 
Net (loss) gain arising during the year
  
 
—
 
  
 
(1,692
) 
 
 
(3,104
) 
 
 
32
 
  
 
(648
) 
 
 
(8,940
) 
 
 
(10,616
) 
 
 
(670
) 
 
 
4,088
 
Amortization:
  
      
  
      
 
      
 
      
  
      
 
      
 
      
 
      
 
      
Prior service credit
  
 
—
 
  
 
(19
) 
 
 
(163
) 
 
 
—  
 
  
 
(19
) 
 
 
(108
) 
 
 
—  
 
 
 
(19
) 
 
 
(35
) 
Net loss
  
 
—
 
  
 
—
 
 
 
1,806
 
 
 
27
 
  
 
—  
 
 
 
2,079
 
 
 
48,239
 
 
 
—  
 
 
 
680
 
Other Plans
  
 
—
 
  
 
—
 
 
 
—
 
 
 
—  
 
  
 
—  
 
 
 
18
 
 
 
—  
 
 
 
—  
 
 
 
(354
) 
Currency impact
  
 
—
 
  
 
—
 
 
 
(2,225
) 
 
 
—  
 
  
 
—  
 
 
 
178
 
 
 
—  
 
 
 
—  
 
 
 
583
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total recognized in other comprehensive income (loss)
  
$
—
 
  
$
(1,711
) 
 
$
(3,686
 )
 
 
$
59
 
  
$
(667
) 
 
$
(6,773
) 
 
$
37,623
 
 
$
(559
) 
 
$
5,006
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The components of net periodic benefit cost other than the service cost component are included in other expense in the consolidated statements of operations.
The summary of the amounts included in accumulated other comprehensive loss in stockholders’ equity (deficit) for the plans at December 31, 2020 and 2019 is as follows (in thousands):
 
 
  
2020
 
 
2019
 
 
  
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Pension
Plans
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
Net actuarial loss
  
$
—
 
  
$
(2,423
) 
 
$
(24,138
 )
 
 
$
—  
 
  
$
(731
) 
 
$
(20,600
) 
Prior service credit
  
 
—
 
  
 
74
 
 
 
358
 
 
 
—  
 
  
 
93
 
 
 
506
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
Total
  
$
—
 
  
$
(2,349
) 
 
$
(23,780
 )
 
 
$
—  
 
  
$
(638
) 
 
$
(20,094
) 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  

 
                          
The plans’ investment asset mix is as follows at December 31, 2020 and 2019:
 
 
  
2020
 
 
2019
 
 
  
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
 
U.S.
Retiree
Healthcare
Plan
 
 
Non-U.S.

Pension
Plans
 
Equity securities
  
 
67
% 
 
 
5
% 
 
 
64
% 
 
 
6
% 
Debt securities
  
 
33
% 
 
 
20
% 
 
 
36
% 
 
 
21
% 
Cash and cash equivalents
  
 
0
% 
 
 
1
% 
 
 
0
% 
 
 
1
% 
Insurance contracts and other
  
 
0
% 
 
 
74
% 
 
 
0
% 
 
 
72
% 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
  
 
100
% 
 
 
100
% 
 
 
100
% 
 
 
100
% 
    
 
 
    
 
 
    
 
 
    
 
 
  
The plans’ investment policies include the following asset allocation guidelines:
 
 
  
U.S. Retiree Healthcare Plan
 
  
Non-U.S.

Pension Plans

Policy Target
 
 
 
Policy Target
 
 
Range
 
Equity securities
  
60
% 
 
 
30% - 90%
 
  
 
5
% 
Debt securities
  
35
% 
 
 
20% - 50%
 
  
 
20
% 
Cash and cash equivalents
  
0
% 
 
 
0% - 10%
 
  
 
10
% 
Insurance contracts and other
  
5
% 
 
 
0% - 10%
 
  
 
65
% 
The asset allocation policy for the 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 compare favorably with those of other similar plans, professionally managed portfolios and of appropriate market indexes and maintaining sufficient liquidity to meet the obligations of the plan. Within the equity portfolio of the U.S. Retiree
 Healthcare Plan, investments are diversified among market capitalization and investment strategy, and targets a 45% allocation of the 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. Retiree Healthcare Plan’s assets.
Plan assets are measured at fair value using the following valuation techniques and inputs:
 
Level 1:
  
The fair value of these types of investments is based on market and observable sources from daily quoted prices on nationally recognized securities exchanges.
   
Level 2:
  
The fair value of these types of investments utilizes data points other than quoted prices in active markets that are observable either directly or indirectly.
   
Level 3:
  
These bank and insurance investment contracts are issued by well-known, highly-rated companies. The fair value disclosed represents the present value of future cash flows under the terms of the respective contracts. Significant assumptions used to determine the fair value of these contracts include the amount and timing of future cash flows and counterparty credit risk.
There have been no changes in the above valuation techniques associated with determining the value of the plans’ assets during the years ended December 31, 2020 and 2019.
The fair value of the Company’s retirement plan assets are as follows at December 31, 2020 (in thousands):
 
 
  
Total at
December 31,
2020
 
  
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
  
Significant
Other
Observable
Inputs
(Level 2)
 
  
Significant
Unobservable
Inputs

(Level 3)
 
U.S. Retiree Healthcare Plan:
  
      
  
      
  
      
  
      
Mutual funds
(a)
  
 
16,168
 
  
 
16,168
 
  
 
—
 
  
 
—
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total U.S. Retiree Healthcare Plan
  
 
16,168
 
  
 
16,168
 
  
 
—
 
  
 
—
 
Non-U.S.
Pension Plans:
  
      
  
      
  
      
  
      
Cash equivalents
(b)
  
 
1,188
 
  
 
1,188
 
  
 
—
 
  
 
—
 
Mutual funds
(c)
  
 
23,582
 
  
 
23,582
 
  
 
—
 
  
 
—
 
Bank and insurance investment contracts
(d)
  
 
69,120
 
  
 
—
 
  
 
—
 
  
 
69,120
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
Non-U.S.
Pension Plans
  
 
93,890
 
  
 
24,770
 
  
 
—
 
  
 
69,120
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total fair value of retirement plan assets
  
$
110,058
 
  
$
40,938
 
  
$
—
 
  
$
69,120
 
    
 
 
     
 
 
     
 
 
     
 
 
  
The fair value of the Company’s retirement plan assets are as follows at December 31, 2019 (in thousands):
 
 
  
Total at
December 31,
2019
 
  
Quoted Prices
in Active
Markets for
Identical Assets

(Level 1)
 
  
Significant
Other
Observable
Inputs
(Level 2)
 
  
Significant
Unobservable
Inputs

(Level 3)
 
U.S. Retiree Healthcare Plan:
  
      
  
      
  
      
  
      
Mutual funds
(e)
  
 
13,773
 
  
 
13,773
 
  
 
—  
 
  
 
—  
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total U.S. Retiree Healthcare Plan
  
 
13,773
 
  
 
13,773
 
  
 
—  
 
  
 
—  
 
Non-U.S.
Pension Plans:
  
      
  
      
  
      
  
      
Cash equivalents
(b)
  
 
690
 
  
 
690
 
  
 
—  
 
  
 
—  
 
Mutual funds
(f)
  
 
22,202
 
  
 
22,202
 
  
 
—  
 
  
 
—  
 
Bank and insurance investment contracts
(d)
  
 
60,119
 
  
 
—  
 
  
 
—  
 
  
 
60,119
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
Non-U.S.
Pension Plans
  
 
83,011
 
  
 
22,892
 
  
 
—  
 
  
 
60,119
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total fair value of retirement plan assets
  
$
96,784
 
  
$
36,665
 
  
$
—  
 
  
$
60,119
 
    
 
 
     
 
 
     
 
 
     
 
 
  
(a)
The mutual fund balance in the U.S. Retiree Healthcare Plan is invested in the following categories: 36% in the common stock of
large-cap
U.S. companies, 31% in the common stock of international growth companies and 33% in fixed income bonds of U.S. companies and the U.S. government
.
(b)
Primarily represents deposit account funds held with various financial institutions. 
(c)
The mutual fund balance in the
Non-U.S.
Pension Plans is primarily invested in the following categories: 64% in international bonds, 19% in the common stock of international companies and 17% in various other global investments.
(d)
Amount represents bank and insurance guaranteed investment contracts.
(e)
The mutual fund balance in the U.S. Retiree Healthcare Plan is invested in the following categories: 35% in the common stock of
 
large-cap
 
U.S. companies, 29% in the common stock of international growth companies and 36% in fixed income bonds of U.S. companies and the U.S. government.
(f)
The mutual fund balance in the
 
Non-U.S.
 
Pension Plans is invested in the following categories: 57% in international bonds, 23% in the common stock of international companies and 20% in various other global investments.
The following table summarizes the changes in fair value of the Level 3 retirement plan assets for the years ended December 31, 2020 and 2019 (in thousands):
 
 
  
Insurance
Guaranteed
Investment
Contracts
 
Fair value of assets, December 31, 2018
  
$
56,718
 
Net purchases (sales) and appreciation (depreciation)
  
 
3,401
 
    
 
 
  
Fair value of assets, December 31, 2019
  
 
60,119
 
Net purchases (sales) and appreciation (depreciation)
  
 
9,001
 
    
 
 
  
Fair value of assets, December 31, 2020
  
$
69,120
 
    
 
 
  
The weighted-average assumptions used to determine the benefit obligation in the consolidated balance sheets at December 31, 2020, 2019 and 2018 are as follows:
 
 
  
2020
 
 
2019
 
 
2018
 
 
  
U.S.
 
 
Non-U.S.
 
 
U.S.
 
 
Non-U.S.
 
 
U.S.
 
 
Non-U.S.
 
Discount rate
  
 
2.25
% 
 
 
1.12
% 
 
 
3.42
% 
 
 
1.38
% 
 
 
4.40
% 
 
 
1.95
% 
Increases in compensation levels
  
 
*
* 
 
 
2.69
% 
 
 
*
* 
 
 
2.83
% 
 
 
*
* 
 
 
2.66
% 
Interest crediting rat
e
 
 
5.25  
 
%
 
 
 
0.85
 
%
 
 
5.25
 
%
 
 
 
 
0.79
 
%
 
 
5.25
 
 
%
 
 
 
0.81
 
%
 
**
Not applicable
The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31, 2020, 2019 and 2018 are as follows:
 
 
  
2020
 
 
2019
 
 
2018
 
 
  
U.S.
  
 
 
Non-U.S.
 
 
U.S.
 
 
Non-U.S.
 
 
U.S.
 
 
Non-U.S.
 
Discount rate
  
 
3.42
  
% 
 
 
1.98
% 
 
 
4.41
% 
 
 
2.25
% 
 
 
3.96
% 
 
 
1.93
% 
Return on plan assets
  
 
6.25
  
% 
 
 
2.99
% 
 
 
6.25
% 
 
 
3.11
% 
 
 
4.35
% 
 
 
2.75
% 
Increases in compensation levels
  
 
*
*
 
 
3.62
% 
 
 
*
* 
 
 
3.20
% 
 
 
*
* 
 
 
2.70
% 
Interest crediting rat
e
 
 
5.25
  
 
%
 
 
 
0.63
%
 
 
 
5.25
 
 
%
 
 
0.58
 
%
 
 
 
5.25
 
 
%
 
 
0.6
0
 
%
 
 
**
Not applicable
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 by less than $1 million. A
one-quarter
percentage point increase in the discount rate would decrease the Company’s net periodic benefit cost by less than $1 million.
During fiscal year 2021, the Company expects to contribute a total of approximately $3 million to $6 million to the Company’s defined benefit plans. Estimated future benefit payments from the plans as of December 31, 2020 are as follows (in thousands):
 
 
  
U.S.
Retiree Healthcare
Plans
 
  
Non-U.S.

Pension
Plans
 
  
Total
 
2021
  
$
1,279
 
  
$
5,177
 
  
$
6,456
 
2022
  
 
1,338
 
  
 
3,539
 
  
 
4,877
 
2023
  
 
1,460
 
  
 
3,086
 
  
 
4,546
 
2024
  
 
1,534
 
  
 
3,204
 
  
 
4,738
 
2025
  
 
1,549
 
  
 
4,436
 
  
 
5,985
 
2026 - 2030
  
 
7,790
 
  
 
23,898
 
  
 
31,688