WATERS EMPLOYEE INVESTMENT PLAN
Notes to Financial Statements
December 31, 2021 and 2020
Investments in mutual funds are stated at fair value based on the quoted net asset value of shares held by
the Plan on the last business day of the year.
Investments under the self-directed brokerage account are stated at fair value based on the quoted market
prices on the last business day of the year.
Investments in common collective trusts are stated at fair value based on the published net asset value
(NAV) of its underlying investments at year end. While participant transactions for common collective trusts take place daily, certain events, such as the premature termination of the contract by the Plan or the termination of the Plan,
would require a redemption notice period of up to twelve months.
The methods described above may produce a fair value that may not be indicative of the
net realizable value or reflective of future fair value. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the
fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
4 Related-Party
Transactions
Certain Plan investments are shares of mutual funds or collective trusts managed by an affiliate of Fidelity, a subsidiary of which is
the trustee of the Plan and, therefore, these transactions qualify as party-in-interest transactions. Fees paid by the Plan to Fidelity or its affiliates for
administrative services amounted to $539,933 for the year ended December 31, 2021. Transactions with respect to participant loans and the Stock Fund also qualify as
party-in-interest transactions.
The Plan has investments in shares of the
Companys common stock through the Stock Fund. During the year ended December 31, 2021, the Plan purchased units in the Stock Fund in the amount of $2,068,229; sold units in the Stock Fund in the amount of $5,419,929; and had net
investment appreciation of $31,456,424, administrative expenses of $59,834 and interest and dividend income of $276. The total value of the Plans investment in the Stock Fund was $93,109,446 and $65,064,279 at December 31, 2021 and 2020,
respectively.
Certain operating expenses and management fees are returned to the Plan based on revenue sharing arrangements with Fidelity. As Fidelity is
the trustee and custodian of the Plan, these transactions qualify as party-in-interest transactions. The revenue sharing amounts received are recorded as other income in
the statement of changes in net assets available for benefits. The Plan received $944,261 in revenue sharing payments for the year ended December 31, 2021, which was used to offset $539,933 of administrative expenses incurred by the Plan.
5 Plan Amendment and Termination
The Company
expects to continue the Plan indefinitely; however, it has the right to modify, amend or terminate the Plan at any time subject to the provisions of the Code and ERISA. No such modification or amendment, however, shall have the effect of
retroactively changing or depriving participants or beneficiaries of rights already accrued under the Plan. If the Plan is terminated, participants will remain 100% vested in their account balances.
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