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Retirement Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Retirement Plans
16 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, 2024, 2023 and 2022, the Company’s matching contributions amounted to $20 million, $22 million and $21 million, respectively.
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 $18 million, $18 million and $16 million in the years ended December 31, 2024, 2023 and 2022, 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. Retiree Healthcare Plan and
Non-U.S. Pension
Plans are
presented
in the following tables, using
the
measurement
dates of December 31, 2024 and 2023, respectively.
The reconciliation of the projected benefit obligations for the plans at December 31, 2024 and 2023 is as follows (in thousands):
 
2024
2023
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
    $ 25,742     $ 92,391     $ 22,583     $ 74,025  
Service cost
      340       3,398       275       3,073  
Employee contributions
      1,037       554       1,105       601  
Interest cost
      1,282       2,610       1,262       2,797  
Actuarial (gains) losses
      (690 )
 
     (2,124 )
 
     2,166       11,387  
Benefits paid
      (1,860 )     (2,834 )     (1,649 )      (2,051 ) 
Plan amendments
      —        (965 )     —        (500 ) 
Plan settlements
      —        (3,288 )     —        (488 ) 
Currency impact
      —        (5,861 )     —        3,547  
  
 
 
    
 
 
    
 
 
    
 
 
  
Projected benefit obligation, December 31
    $ 25,851     $ 83,881     $ 25,742     $ 92,391  
  
 
 
    
 
 
    
 
 
    
 
 
  
 
 

The reconciliation of the fair value of the plan assets at December 31, 2024 and 2023 is as follows (in thousands):
 
2024
2023
U.S.
Retiree
Non-U.S.
U.S.
Retiree
Non-U.S.
Healthcare
Pension
Healthcare
Pension
Plan
Plans
Plan
Plans
Fair value of plan assets, January 1
    $ 18,153     $ 86,587     $ 15,724     $ 77,697  
Actual return on plan assets
      1,764       2,201       2,444       4,144  
Company contributions
      686       3,083       529       3,224  
Employee contributions
      1,037       554       1,105       601  
Plan settlements
      —        (3,288 )     —        (488 ) 
Benefits paid
      (1,860 )
 
     (2,834 )     (1,649 )      (2,051 ) 
Currency impact
      —        (5,553 )
 
     —        3,460  
  
 
 
    
 
 
    
 
 
    
 
 
  
Fair value of plan assets, December 31
    $ 19,780     $ 80,750     $ 18,153     $ 86,587  
  
 
 
    
 
 
    
 
 
    
 
 
  
The summary of the funded status for the plans at December 31, 2024 and 2023 is as follows (in thousands):
 
2024
2023
U.S.
Retiree
Non-U.S.
U.S.
Retiree
Non-U.S.
Healthcare
Pension
Healthcare
Pension
Plan
Plans
Plan
Plans
Projected benefit obligation
    $ (25,851 )
 
   $ (83,881 )
 
   $ (25,742 )    $ (92,391 ) 
Fair value of plan assets
      19,780       80,750       18,153       86,587  
  
 
 
    
 
 
    
 
 
    
 
 
  
Funded status
    $ (6,071 )   $ (3,131 )   $ (7,589 )    $ (5,804 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
The change in the Company’s projected benefit obligation for the year ended December 31, 2024 was primarily due to net actuarial gains that arose during the year driven by a
n
increase in discount rates, differences between expected and actual return on plan assets, and fluctuations in foreign currency exchange rates during the year. The change in the Company’s projected benefit obligation for the year ended December 31, 2023 was primarily due to net actuarial losses that arose during the year driven by a decrease in discount rates, differences between expected and actual return on plan assets, and fluctuations in foreign currency exchange rates during the year.
The summary of the amounts recognized in the consolidated balance sheets for the plans at December 31, 2024 and 2023 is as follows (in thousands):
 
2024
2023
U.S.
Retiree
Non-U.S.
U.S.
Retiree
Non-U.S.
Healthcare
Pension
Healthcare
Pension
Plan
Plans
Plan
Plans
Long-term assets
    $ —      $ 5,109     $ —      $ 5,220  
Long-term liabilities
      (6,071 )
 
     (8,240 )
 
     (7,589 )      (11,024 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net amount recognized at December 31
    $ (6,071 )   $ (3,131 )   $ (7,589 )    $ (5,804 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
The accumulated benefit obligation for all defined benefit pension plans was $74 million and $81 million at December 31, 2024 and 2023, respectively.
 
The summary of the
Non-U.S.
Pension Plans that have accumulated benefit obligations in excess of plan assets at December 31, 2024 and 2023 is as follows (in thousands):
 
    
2024
     
2023
  
Accumulated benefit obligations
    $ 38,076      $ 60,815  
Fair value of plan assets
    $ 33,998      $ 52,894  
The summary of the
Non-U.S.
Pension Plans that have projected benefit obligations in excess of plan assets at December 31, 2024 and 2023 is as follows (in thousands):
 
    
2024
     
2023
  
Projected benefit obligations
    $ 42,238      $ 63,918  
Fair value of plan assets
    $ 33,998      $ 52,894  
The summary of the components of net periodic pension costs for the plans for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):
 
2024
2023
2022
U.S.

Retiree

Healthcare

Plan
Non-U.S.

Pension

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

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

Pension
Plans
Service cost
    $ 340     $ 3,398     $ 275     $ 3,073     $ 775     $ 4,018  
Interest cost
      1,282       2,610       1,262       2,797       706       1,360  
Expected return on plan assets
      (1,120 )     (2,825 )     (978 )      (2,653 )      (1,138 )      (1,972 ) 
Settlement loss
      —        552       —        221       —        73  
Net amortization:
             
Prior service credit
      (17 )
 
     (73 )
 
     (19 )      (105 )      (19 )      (129 ) 
Net actuarial (gain) loss
      —        (14 )     —        (195 )      —        649  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net periodic pension cost
    $ 485     $ 3,648     $ 540     $ 3,138     $ 324     $ 3,999  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The summary of the changes in amounts recognized in other comprehensive income (loss) for the plans for the years ended December 31, 2024, 2023 and 2022 is as follows (in thousands):
 
2024
2023
2022
U.S.

Retiree

Healthcare

Plan
Non-U.S.

Pension

Plans
U.S.

Retiree

Healthcare

Plan
Non-U.S.

Pension

Plans
U.S.

Retiree

Healthcare

Plan
Non-U.S.

Pension

Plans
Prior service cost
    $ —      $ 965     $ —      $ —      $ —      $ —   
Net gain (loss) arising during the year
      1,333       1,500       (699 )      (9,396 )      623       19,025  
Amortization:
             
Prior service credit
      (17 )
 
     (73 )
 
     (19 )      (105 )      (19 )      (129 ) 
Net loss
      —        538       —        26       —        722  
Currency impact
      —        30       —        (58 )      —        1,305  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total recognized in other comprehensive income (loss)
    $ 1,316     $ 2,960     $ (718 )    $ (9,533 )    $ 604     $ 20,923  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The components of net periodic benefit cost other than the service cost component are included in other income, net 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, 2024 and 2023 is as follows (in thousands):
 
2024
2023
U.S.

Retiree

Healthcare

Plan
Non-U.S.

Pension

Plans
U.S.

Retiree

Healthcare

Plan
Non-U.S.

Pension

Plans
Net actuarial gain (loss)
    $ 369     $ (1,153 )
 
   $ (964 )    $ (3,241 ) 
Prior service credit (cost)
      —        716       17       (156 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total
    $ 369     $ (437 )   $ (947 )    $ (3,397 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
The plans’ investment asset mix is as follows at December 31, 2024 and 2023:
 
2024
2023
U.S.

Retiree

Healthcare

Plan
Non-U.S.

Pension

Plans
U.S.

Retiree

Healthcare

Plan
Non-U.S.

Pension

Plans
Equity securities
      65 %      6 %      70 %      4 % 
Debt securities
      35 %      17 %      30 %      18 % 
Cash and cash equivalents
      0 %      1 %      0 %      2 % 
Insurance contracts and other
      0 %      76 %      0 %      76 % 
  
 
 
    
 
 
    
 
 
    
 
 
  
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
      65 %     
30% - 90%
        18 % 
Debt securities
      35 %     
20% - 50%
        22 % 
Cash and cash equivalents
      0 %     
0% - 10%
        4 % 
Insurance contracts and other
      0 %     
0% - 10%
        56 % 
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, 2024 and 2023.
The fair value of the Company’s retirement plan assets are as follows at December 31, 2024 (in thousands):
 
Total at

December 31,

2024
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)
    $ 19,780      $ 19,780      $ —       $ —   
  
 
 
     
 
 
     
 
 
     
 
 
  
Total U.S. Retiree Healthcare Plan
      19,780        19,780        —         —   
Non-U.S.
Pension Plans:
            
Cash equivalents
(b)
      910        910        —         —   
Mutual funds
(c)
      18,413        18,413        —         —   
Bank and insurance investment contracts
(d)
      61,427        —         —         61,427  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
Non-U.S.
Pension Plans
      80,750        19,323        —         61,427  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total fair value of retirement plan assets
    $ 100,530      $ 39,103      $ —       $ 61,427  
  
 
 
     
 
 
     
 
 
     
 
 
  
The fair value of the Company’s retirement plan assets are as follows at December 31, 2023 (in thousands):
 
Total at

December 31,

2023
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)
    $ 18,153      $ 18,153      $ —       $ —   
  
 
 
     
 
 
     
 
 
     
 
 
  
Total U.S. Retiree Healthcare Plan
      18,153        18,153        —         —   
Non-U.S.
Pension Plans:
            
Cash equivalents
(b)
      1,611        1,611        —         —   
Mutual funds
(f)
      18,785        18,785        —         —   
Bank and insurance investment contracts
(d)
      66,191        —         —         66,191  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
Non-U.S.
Pension Plans
      86,587        20,396        —         66,191  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total fair value of retirement plan assets
    $ 104,740      $ 38,549      $ —       $ 66,191  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
a)
The mutual fund balance in the U.S. Retiree Healthcare Plan is invested in the following categories: 47% in the common stock of
large-cap
U.S. companies, 18% in the common stock of international growth companies and 35% 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: 71% in international bonds, 25% in the common stock of international companies and 4% 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: 41% in the common stock of
large-cap
U.S. companies, 29% in the common stock of international growth companies and 30% 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: 76% in international bonds, 18% in the common stock of international companies and 7% 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, 2024 and 2023 (in thousands):
 
Insurance

Guaranteed

Investment

Contracts
Fair value of assets, December 31, 2022
    $ 57,994  
Net purchases (sales) and appreciation (depreciation)
      8,197  
  
 
 
  
Fair value of assets, December 31, 2023
      66,191  
Net purchases (sales) and appreciation (depreciation)
      (4,764 )
 
  
 
 
  
Fair value of assets, December 31, 2024
    $ 61,427  
  
 
 
  
The weighted-average assumptions used to determine the benefit obligation in the consolidated balance sheets at December 31, 2024, 2023 and 2022 are as follows:
 
2024
2023
2022
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Discount rate
      5.62 %      3.00 %      5.18 %      2.97 %      5.42 %      3.82 % 
Increases in compensation levels
      * *      2.92 %      * *      2.90 %      * *      3.14 % 
Interest crediting rate
      5.25 %      2.09 %      5.25 %      2.05 %      5.25 %      1.57 % 
 
**
Not applicable
The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31, 2024, 2023 and 2022 are as follows:
 
2024
2023
2022
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Discount rate
      5.18 %      3.58 %      5.42 %      4.70 %      2.70 %      2.09 % 
Return on plan assets
      6.25 %      3.80 %      6.25 %      3.95 %      6.25 %      3.07 % 
Increases in compensation levels
      * *      3.74 %      * *      4.32 %      * *      3.58 % 
Interest crediting rate
      5.25 %      2.03 %      5.25 %      1.47 %      5.25 %      1.55 % 
 
**
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 2025, 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, 2024 are as follows (in thousands):
 
U.S.

Retiree Healthcare

Plans
Non-U.S.

Pension

Plans
Total
2025
    $ 2,180      $ 4,617      $ 6,797  
2026
      2,228        3,091        5,319  
2027
      2,314        3,538        5,852  
2028
      2,443        4,902        7,345  
2029
      2,586        4,232        6,818  
2030 - 2034
      13,769        25,518        39,287