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 $17 million, $14 million and $15 million in the years ended December 31, 2021, 2020 and 2019, 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, 2021 and 2020, respectively.

The reconciliation of the projected benefit obligations for the plans at December 31, 2021 and 2020 is as follows (in thousands):


	2021						2020
	U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans			U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans
Projected benefit obligation, January 1	$	25,369		$	119,590		$	21,186		$	103,366
Service cost		884			4,577			665			4,519
Employee contributions		1,176			561			1,149			514
Interest cost		559			1,247			711			1,413
Actuarial (gains) losses		(852	)		(5,803	)		2,788			2,624
Benefits paid		(1,178	)		(5,334	)		(1,130	)		(1,474	)
Plan amendments		—			69			—			—
Plan settlements		—			(341	)		—			(1,449	)
Currency impact		—			(7,642	)		—			10,077

Projected benefit obligation, December 31	$	25,958		$	106,924		$	25,369		$	119,590

The reconciliation of the fair value of the plan assets at December 31, 2021 and 2020 is as follows (in thousands):


	2021						2020
	U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans			U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans
Fair value of plan assets, January 1	$	16,168		$	93,890		$	13,773		$	83,011
Actual return on plan assets		1,682			2,739			1,967			1,395
Company contributions		466			5,529			409			3,581
Employee contributions		1,176			561			1,149			514
Plan settlements		—			(341	)		—			(1,449	)
Benefits paid		(1,178	)		(5,334	)		(1,130	)		(1,474	)
Currency impact		—			(5,875	)		—			8,312

Fair value of plan assets, December 31	$	18,314		$	91,169		$	16,168		$	93,890

The summary of the funded status for the plans at December 31, 2021 and 2020 is as follows (in thousands):


	2021						2020
	U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans			U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans
Projected benefit obligation	$	(25,958	)	$	(106,924	)	$	(25,369	)	$	(119,590	)
Fair value of plan assets		18,314			91,169			16,168			93,890

Funded status	$	(7,644	)	$	(15,755	)	$	(9,201	)	$	(25,700	)

The change in the Company’s projected benefit obligation for the year ended December 31, 2021 was primarily due to fluctuations in foreign currency exchange rates during the year, net actuarial gains that arose during the year driven by an increase 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, 2020 was primarily due to net actuarial losses that arose during the year driven by a decline in discount rates, differences between expected and actual return on plan assets, and also fluctuations in foreign currency exchange rates during the year.

The summary of the amount

recognized in the consolidated balance sheets for the plans at December 31, 2021 and 2020 is as follows (in thousands):


	2021						2020
	U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans			U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans
Long-term assets	$	—		$	1,992		$	—		$	971
Current liabilities		(466	)		—			(409	)		(1,999	)
Long-term liabilities		(7,178	)		(17,747	)		(8,792	)		(24,672	)

Net amount recognized at December 31	$	(7,644	)	$	(15,755	)	$	(9,201	)	$	(25,700	)

The accumulated benefit obligation for all defined benefit pension plans was $92 million and $103 million at December 31, 2021 and 2020, respectively.

The summary of the

Non-U.S.

Pension Plans that have accumulated benefit obligations in excess of plan assets at December 31, 2021 and 2020 is as follows (in thousands):


	2021		2020
Accumulated benefit obligations	$	75,178	$	84,940
Fair value of plan assets	$	66,414	$	68,334

The summary of the

Non-U.S.

Pension Plans that have projected benefit obligations in excess of plan assets at December 31, 2021 and 2020 is as follows (in thousands):


	2021		2020
Projected benefit obligations	$	96,010	$	107,093
Fair value of plan assets	$	78,264	$	80,422

The summary of the components of net periodic pension costs for the plans for the years ended December 31, 2021, 2020 and 2019 is as follows (in thousands):


	2021								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			U.S. Pension Plans		U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans
Service cost	$	—	$	884		$	4,577		$	—	$	665		$	4,519		$	—	$	499		$	4,339
Interest cost		—		559			1,247			—		711			1,413			29		777			1,735
Expected return on plan assets		—		(1,011	)		(1,835	)		—		(871	)		(1,874	)		—		(706	)		(2,154	)
Settlement loss		—		—			77			—		—			235			27		—			1,548
Net amortization:
Prior service credit		—		(19	)		(87	)		—		(19	)		(163	)		—		(19	)		(108	)
Net actuarial loss		—		10			1,186			—		—			1,571			—		—			531

Net periodic pension cost	$	—	$	423		$	5,165		$	—	$	486		$	5,701		$	56	$	551		$	5,891

The summary of the changes in amounts recognized in other comprehensive income (loss) for the plans for the years ended December 31, 2021, 2020 and 2019 is as follows (in thousands):


	2021								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			U.S. Pension Plans		U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans
Prior service credit	$	—	$	—		$	(69	)	$	—	$	—		$	—		$	—	$	—		$	—
Net gain (loss) arising during the year		—		1,524			6,708			—		(1,692	)		(3,104	)		32		(648	)		(8,940	)
Amortization:
Prior service credit		—		(19	)		(87	)		—		(19	)		(163	)		—		(19	)		(108	)
Net loss		—		10			1,263			—		—			1,806			27		—			2,079
Other Plans		—		—			—			—		—			—			—		—			18
Currency impact		—		—			1,179			—		—			(2,225	)		—		—			178

Total recognized in other comprehensive income (loss)	$	—	$	1,515		$	8,994		$	—	$	(1,711	)	$	(3,686	)	$	59	$	(667	)	$	(6,773	)

The components of net periodic benefit cost other than the service cost component are included in other income (expense) in the consolidated statements of operations.

The summary of the amounts included in accumulated other comprehensive loss in stockholders’ equity for the plans at December 31, 2021 and 2020 is as follows (in thousands):


	2021						2020
	U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans			U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans
Net actuarial loss	$	(889	)	$	(14,938	)	$	(2,423	)	$	(24,138	)
Prior service credit		55			152			74			358

Total	$	(834	)	$	(14,786	)	$	(2,349	)	$	(23,780	)

The plans’ investment asset mix is as follows at December 31, 2021 and 2020:


	2021						2020
	U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans			U.S. Retiree Healthcare Plan			Non-U.S. Pension Plans
Equity securities		77	%		8	%		67	%		5	%
Debt securities		23	%		18	%		33	%		20	%
Cash and cash equivalents		0	%		1	%		0	%		1	%
Insurance contracts and other		0	%		73	%		0	%		74	%

Total		100	%		100	%		100	%		100	%

The plans’ investment policies include th

following asset allocation guidelines:


	U.S. Retiree Healthcare Plan					Non-U.S. Pension Plans Policy Target
	Policy Target			Range		Non-U.S. Pension Plans Policy Target
Equity securities		60	%		30% - 90%		13	%
Debt securities		35	%		20% - 50%		19	%
Cash and cash equivalents		0	%		0% - 10%		8	%
Insurance contracts and other		5	%		0% - 10%		60	%

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, 2021 and 2020.

The fair value of the Company’s retirement plan assets are as follows at December 31, 2021 (in thousands):


	Total at December 31, 2021		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)		18,314		18,314		—		—

Total U.S. Retiree Healthcare Plan		18,314		18,314		—		—
Non-U.S. Pension Plans:
Cash equivalents (b)		1,333		1,333		—		—
Mutual funds (c)		23,891		23,891		—		—
Bank and insurance investment contracts (d)		65,945		—		—		65,945

Total Non-U.S. Pension Plans		91,169		25,224		—		65,945

Total fair value of retirement plan assets	$	109,483	$	43,538	$	—	$	65,945

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 (e)		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 (f)		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

(a)	The mutual fund balance in the U.S. Retiree Healthcare Plan is invested in the following categories: 48% in the common stock of large-cap U.S. companies, 29% in the common stock of international growth companies and 23% 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: 58% in international bonds, 31% in the common stock of international companies and 11% 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: 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.

(f)	The mutual fund balance in the Non-U.S. Pension Plans is invested in the following categories: 64% in international bonds, 19% in the common stock of international companies and 17% 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, 2021 and 2020 (in thousands):


	Insurance Guaranteed Investment Contracts
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
Net purchases (sales) and appreciation (depreciation)		(3,175	)

Fair value of assets, December 31, 2021	$	65,945

The weighted-average assumptions used to determine the benefit obligation in the consolidated balance sheets at December 31, 2021, 2020 and 2019 are as follows:


	2021						2020						2019
	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Discount rate		2.70	%		1.40	%		2.25	%		1.12	%		3.42	%		1.38	%
Increases in compensation levels		*	*		2.74	%		*	*		2.69	%		*	*		2.83	%
Interest crediting rate		5.25	%		0.99	%		5.25	%		0.85	%		5.25	%		0.79	%

**	Not applicable

The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31, 2021, 2020 and 2019 are as follows:


	2021						2020						2019
	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
Discount rate		2.25	%		1.40	%		3.42	%		1.98	%		4.41	%		2.25	%
Return on plan assets		6.25	%		2.58	%		6.25	%		2.99	%		6.25	%		3.11	%
Increases in compensation levels		*	*		3.11	%		*	*		3.62	%		*	*		3.20	%
Interest crediting rate		5.25	%		0.77	%		5.25	%		0.63	%		5.25	%		0.58	%

**	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 2022, 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, 2021 are as follows (in thousands):


	U.S. Retiree Healthcare Plans		Non-U.S. Pension Plans		Total
2022	$	1,452	$	4,090	$	5,542
2023		1,554		2,285		3,839
2024		1,643		2,635		4,278
2025		1,703		3,815		5,518
2026		1,726		3,093		4,819
2027 - 2031		8,358		23,408		31,766