PART I The following table details the growth in global weighted average berths and the global, North American and European cruise guests over the past five years:
## Table 0 ##
(1) Source: Our estimates of the number of global cruise guests and the weighted-average supply of berths marketed globally are based on a combination of data that we obtain from various publicly available cruise industry trade information sources including Seatrade Insider, Cruise Industry News and CLIA.
In addition, our estimates incorporate our own statistical analysis utilizing the same publicly available cruise industry data as a base.
(2) Source: CLIA based on cruise guests carried for at least two consecutive nights (see number 1 above).
Includes the United States of America and Canada.
(3) Source: CLIA Europe, formerly European Cruise Council, (see number 2 above) North America The majority of cruise guests are sourced from North America, which represented approximately 55.7% of global cruise guests in 2014.
The compound annual growth rate in cruise guests sourced from this market was approximately 3.3% from 2010 to 2014.
Europe Cruise guests sourced from Europe represented approximately 29.7% of global cruise guests in 2014.
The compound annual growth rate in cruise guests sourced from this market was approximately 4.2% from 2010 to 2014.
Asia/Pacific In addition to expected industry growth in North America and Europe, we expect the Asia/Pacific region to demonstrate an even higher growth rate in the near term, although it will continue to represent a relatively small sector compared to North America and Europe.
Based on industry data, cruise guests sourced from the Asia/Pacific region represented approximately 8.5% of global cruise guests in 2014.
The compound annual growth rate in cruise guests sourced from this market was approximately 16.4% from 2010 to 2014.
COMPETITION We compete with a number of cruise lines.
Our principal competitors are Carnival Corporation & plc, which owns, among others, Aida Cruises, Carnival Cruise Line, Costa Cruises, Cunard Line, Holland America Line, Iberocruceros, P&O Cruises and Princess Cruises; Disney Cruise Line; MSC Cruises; Norwegian Cruise Line Holdings Ltd. , which owns Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.
Cruise lines compete with other vacation alternatives such as land-based resort hotels and sightseeing destinations for consumers’ leisure time.
Demand for such activities is influenced by political and general economic conditions.
Companies within the vacation market are dependent on consumer discretionary spending.
OPERATING STRATEGIES Our principal operating strategies are to: ?
protect the health, safety and security of our guests and employees and protect the environment in which our vessels and organization operate, ?
strengthen and support our human capital in order to better serve our global guest base and grow our business, ?
further strengthen our consumer engagement in order to enhance our revenues, ?
increase the awareness and market penetration of our brands globally, ?
focus on cost efficiency, manage our operating expenditures and ensure adequate cash and liquidity, with the overall goal of maximizing our return on invested capital and long-term shareholder value, ?
strategically invest in our fleet through the upgrade and maintenance of existing ships and the transfer of key innovations across each brand, while prudently expanding our fleet with new state-of-theart cruise ships, ?
capitalize on the portability and flexibility of our ships by deploying them into those markets and itineraries that provide opportunities to optimize returns, while continuing our focus on existing key markets, ?
further enhance our technological capabilities to service customer preferences and expectations in an innovative manner, while supporting our strategic focus on profitability, and
TELEFLEX INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) F-29 The following table provides information regarding changes in financial liabilities, the fair value of which is based on Level 3 inputs, related to contingent consideration in connection with various Company acquisitions, including those described in Note 3 to the consolidated financial statements, during the twelve months ended December 31, 2014 and 2013:
## Table 1 ##
The Company reduced contingent consideration liabilities and selling, general and administrative expense by $8.2 million and $12.3 million for the years ended December 31, 2014 and 2013, respectively.
These reductions were the result of changes in the estimated probability that specified objectives on which the contingent consideration is conditioned will be achieved.
See Note 8 to the consolidated financial statements for a discussion of the fair value of the Company’s long-term debt.
Valuation Techniques Used to Determine Fair Value The Company’s financial assets valued based upon Level 1 inputs are comprised of investments in marketable securities held in trust, which are available to satisfy benefit obligations under Company benefit plans and other arrangements.
The investment assets of the trust are valued using quoted market prices.
The Company’s financial assets and liabilities valued based upon Level 2 inputs are comprised of foreign currency forward contracts.
The Company uses foreign currency forward contracts to manage currency transaction exposure.
The fair value of the foreign currency forward contracts represents the amount required to enter into offsetting contracts with similar remaining maturities based on quoted market prices.
The Company has taken into account the creditworthiness of the counterparties in measuring fair value.
As of December 31, 2014 and 2013, there are no open forward contracts.
See Note 9 to the consolidated financial statements for additional information.
The Company’s financial liabilities valued based upon Level 3 inputs are contingent consideration arrangements pertaining to the Company’s acquisitions.
The Company estimates that contingent consideration payments will occur in 2015 and extend until 2029.
As of December 31, 2014, the range of undiscounted amounts the Company could be required to pay under contingent consideration arrangements is between $15.0 millionand $83.0 million.
The Company determines the fair value of the liabilities for the contingent consideration based on a probability-weighted discounted cash flow analysis.
This fair value measurement is based on significant inputs not observable in the market, which therefore constitute Level 3 inputs within the valuation hierarchy.
The fair value of the contingent consideration liability associated with possible future payments of contingent consideration is based on several factors including: ?
estimated cash flows projected from the success of market launches; ?
the estimated time and resources needed to complete the development of acquired technologies; ?
the uncertainty of obtaining regulatory approvals within the required time periods; and ?
the risk adjusted discount rate for fair value measurement.
TELEFLEX INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) F-41 The following table provides the weighted average assumptions for United States and foreign plans used in determining benefit obligations:
## Table 2 ##
The discount rate represents the interest rate used to determine the present value of future cash flows currently expected to be required to settle the Company’s pension and other benefit obligations.
The weighted average discount rates for United States pension plans and other benefit plans of 4.24% and 3.97%, respectively, were established by comparing the projection of expected benefit payments to the AAAbove Median yield curve as of December 31, 2014.
The expected benefit payments are discounted by each corresponding discount rate on the yield curve.
For payments beyond 30 years, the Company extends the curve assuming that the discount rate derived in year 30 is extended to the end of the plan’s payment expectations.
Once the present value of the string of benefit payments is established, the Company determines the single rate on the yield curve that, when applied to all obligations of the plan, will exactly match the previously determined present value.
As part of the evaluation of pension and other postretirement assumptions, the Company applied assumptions for mortality and healthcare cost trends that incorporate generational white and blue collar mortality trends.
In determining its benefit obligations, the Company used generational tables that take into consideration increases in plan participant longevity.
During 2014, the Society of Actuaries published new mortality tables (RP-2014), which generally reflect longer life expectancy than was projected by past tables (RP-2000).
The Company used the new mortality tables when applying mortality assumptions to the calculation of its projected benefit obligations as of December 31, 2014, which resulted in a 9% increase to the Company’s projected benefit obligation.
The Company’s assumption for the Expected Return on Plan Assets is primarily based on the determination of an expected return for its current portfolio.
This determination is made using assumptions for return and volatility of the portfolio.
Asset class assumptions are set using a combination of empirical and forward-looking analysis.
To the extent historical results have been affected by unsustainable trends or events, the effects of those trends are quantified and removed.
The Company applies a variety of models for filtering historical data and isolating the fundamental characteristics of asset classes.
These models provide empirical return estimates for each asset class, which are then reviewed and combined with a qualitative assessment of long term relationships between asset classes before a return estimate is finalized.
The qualitative analysis is intended to provide an additional means for addressing the effect of unrealistic or unsustainable short-term valuations or trends, resulting in return levels and behavior the Company believes are more likely to prevail over long periods.
Effective in 2015, the Company changed its Expected Return on Plan Assets of the United States pension plans from 8.50% to 8.25% to reflect modifications to assumptions resulting from the analysis described above.
This change had no impact on the results for the year ended December 31, 2014.
Increasing the assumed healthcare trend rate by 1% would increase the benefit obligation at December 31, 2014 by $4.4 million and would increase the 2014 benefit expense by $0.2 million.
Decreasing the trend rate by 1% would decrease the benefit obligation at December 31, 2014 by $3.8 million and would decrease the 2014 benefit expense by $0.2 million.
The accumulated benefit obligation for all United States and foreign defined benefit pension plans was $447.4 millionand $367.3 millionfor 2014and 2013, respectively.
All of our pension plans had accumulated benefit obligations in excess of their respective plan assets as of December 31, 2014 and 2013.
Financing Arrangements The following table provides our net debt to total capital ratio:
## Table 3 ##
Fixed rate borrowings comprised 81% and 49% of total borrowings at December 31, 2014 and 2013, respectively.
The increase in fixed rate borrowings as of December 31, 2014 compared to December 31, 2013 is primarily due to the issuance of the 2024 Notes in 2014 and the $245.0 million repayment of variable rate borrowings under our senior credit facility.
Our senior credit agreement contains covenants that, among other things, limit or restrict our ability, and the ability of our subsidiaries, to incur debt, create liens, consolidate, merge or dispose of certain assets, make certain investments, engage in acquisitions, pay dividends on, repurchase or make distributions in respect of capital stock and enter into swap agreements.
Our senior credit agreement also requires us to maintain a consolidated leverage ratio (generally, the ratio of Consolidated Total Indebtedness to Consolidated EBITDA, each as defined in the senior credit agreement) of not more than 4.0:1 and a consolidated interest coverage ratio (generally, Consolidated EBITDA to Consolidated Interest Expense, each as defined in the senior credit agreement) of not less than 3.50:1 as of the last day of any period of four consecutive fiscal quarters calculated in accordance with the definitions and methodology set forth in the senior credit agreement and, during the six month period prior to the maturity of our Convertible Notes, a minimum liquidity of $400.0 million.
At December 31, 2014, our consolidated leverage ratio was 2.71:1and our interest coverage ratio was 8.31:1, both of which are in compliance with the limits described in the preceding sentence.
The obligations under the senior credit agreement are guaranteed (subject to certain exceptions) by substantially all of the material domestic subsidiaries of the Company and (subject to certain exceptions and limitations) secured by a pledge on substantially all of the equity interests owned by the Company and each guarantor.
At December 31, 2014, we had $200.0 million in borrowings outstanding and approximately $6.0 million in outstanding standby letters of credit under our $850.0 million revolving credit facility.
This facility is used principally for working capital needs and, at certain times, to help fund acquisitions.
The availability of loans under our revolving credit facility is dependent upon our ability to maintain our financial condition and our continued compliance with the covenants contained in our senior credit agreement.
Moreover, additional borrowings would be prohibited if a Material Adverse Effect (as defined in the senior credit agreement) were to occur.
Notwithstanding these restrictions, we believe our revolving credit facility provides us with significant flexibility to meet our foreseeable working capital needs.
At our current level of EBITDA (as defined in the senior credit agreement) for the year ended December 31, 2014, we would have been permitted $533.1 million of additional debt beyond the levels outstanding at December 31, 2014.
Moreover, additional capacity would be available if borrowed funds were used to acquire a business or businesses through the purchase of assets or controlling equity interests so long as the aforementioned leverage and interest coverage ratios are met after calculating EBITDA on a proforma basis to give effect to the acquisition.
TELEFLEX INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) F-20 Note 7 — Goodwill and other intangible assets Changes in the carrying amount of goodwill, by reporting segment, for the twelve months ended December 31, 2014 and 2013 are as follows:
## Table 4 ##
Vascular North America
## Table 5 ##
Intangible assets at December 31, 2014 and 2013 consisted of the following:
## Table 6 ##
As of December 31, 2014, trade names of $359.3 million and all of the IPR&D are considered indefinite lived.
Acquired in-process research and development is indefinite-lived until the completion of the associated efforts, at which point amortization of the carrying value of the technology will commence.

<table><tr><td>Year</td><td>Weighted-AverageSupply ofBerthsMarketedGlobally-1</td><td>Royal Caribbean Cruises Ltd. Total Berths</td><td>GlobalCruiseGuests-1</td><td>North AmericanCruiseGuests-2</td><td>EuropeanCruiseGuests -3</td></tr><tr><td>2010</td><td>391,000</td><td>92,300</td><td>18,800,000</td><td>10,781,000</td><td>5,540,000</td></tr><tr><td>2011</td><td>412,000</td><td>92,650</td><td>20,227,000</td><td>11,625,000</td><td>5,894,000</td></tr><tr><td>2012</td><td>425,000</td><td>98,650</td><td>20,898,000</td><td>11,640,000</td><td>6,139,000</td></tr><tr><td>2013</td><td>432,000</td><td>98,750</td><td>21,300,000</td><td>11,816,000</td><td>6,399,000</td></tr><tr><td>2014</td><td>448,000</td><td>105,750</td><td>22,006,063</td><td>12,260,238</td><td>6,535,365</td></tr></table>
<table><tr><td></td><td colspan="2">Contingent consideration</td></tr><tr><td></td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="2">(Dollars in thousands)</td></tr><tr><td>Beginning balance – January 1</td><td>$20,313</td><td>$51,196</td></tr><tr><td>Initial estimate upon acquisition</td><td>20,538</td><td>—</td></tr><tr><td>Payment</td><td>—</td><td>-18,880</td></tr><tr><td>Revaluations</td><td>-7,418</td><td>-11,982</td></tr><tr><td>Translation adjustment</td><td>—</td><td>-21</td></tr><tr><td>Ending balance – December 31</td><td>$33,433</td><td>$20,313</td></tr></table>
<table><tr><td></td><td colspan="2">Pension</td><td colspan="2">Other Benefits</td></tr><tr><td></td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td>Discount rate</td><td>4.1%</td><td>5.0%</td><td>4.0%</td><td>4.7%</td></tr><tr><td>Rate of compensation increase</td><td>3.0%</td><td>3.0%</td><td>—</td><td>—</td></tr><tr><td>Initial healthcare trend rate</td><td>—</td><td>—</td><td>7.3%</td><td>7.0%</td></tr><tr><td>Ultimate healthcare trend rate</td><td>—</td><td>—</td><td>5.0%</td><td>5.0%</td></tr></table>
<table><tr><td></td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="2">(Dollars in millions)</td></tr><tr><td>Net debt includes:</td><td></td><td></td></tr><tr><td>Current borrowings</td><td>$368.4</td><td>$356.3</td></tr><tr><td>Long-term borrowings</td><td>700.0</td><td>930.0</td></tr><tr><td>Unamortized debt discount</td><td>36.2</td><td>48.4</td></tr><tr><td>Total debt</td><td>1,104.6</td><td>1,334.7</td></tr><tr><td>Less: Cash and cash equivalents</td><td>303.2</td><td>432.0</td></tr><tr><td>Net debt</td><td>$801.4</td><td>$902.7</td></tr><tr><td>Total capital includes:</td><td></td><td></td></tr><tr><td>Net debt</td><td>$801.4</td><td>$902.7</td></tr><tr><td>Shareholders’ equity</td><td>1,911.3</td><td>1,913.5</td></tr><tr><td>Total capital</td><td>$2,712.7</td><td>$2,816.2</td></tr><tr><td>Percent of net debt to total capital</td><td>30%</td><td>32%</td></tr></table>
<table><tr><td></td><td>Vascular North America</td><td>Anesthesia/Respiratory North America</td><td>Surgical North America</td><td>EMEA</td><td>Asia</td><td>All Other</td><td>Total</td></tr><tr><td></td><td colspan="7">(Dollars in thousands)</td></tr><tr><td>Balance as of December 31, 2013</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Goodwill</td><td>$459,696</td><td>$167,195</td><td>$250,506</td><td>$373,417</td><td>$136,946</td><td>$298,571</td><td>$1,686,331</td></tr><tr><td>Accumulated impairment losses</td><td>-219,527</td><td>-107,073</td><td>—</td><td>—</td><td>—</td><td>-5,528</td><td>-332,128</td></tr><tr><td></td><td>240,169</td><td>60,122</td><td>250,506</td><td>373,417</td><td>136,946</td><td>293,043</td><td>1,354,203</td></tr><tr><td>Goodwill related to acquisitions</td><td>—</td><td>—</td><td>406</td><td></td><td>15,986</td><td>—</td><td>$16,392</td></tr><tr><td>Translation adjustment</td><td>—</td><td>-681</td><td>—</td><td>-34,388</td><td>-8,220</td><td>-3,753</td><td>-47,042</td></tr><tr><td>Balance as of December 31, 2014</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Goodwill</td><td>459,696</td><td>166,514</td><td>250,912</td><td>339,029</td><td>144,712</td><td>294,818</td><td>1,655,681</td></tr><tr><td>Accumulated impairment losses</td><td>-219,527</td><td>-107,073</td><td>—</td><td>—</td><td>—</td><td>-5,528</td><td>-332,128</td></tr><tr><td></td><td>$240,169</td><td>$59,441</td><td>$250,912</td><td>$339,029</td><td>$144,712</td><td>$289,290</td><td>$1,323,553</td></tr></table>
<table><tr><td></td><td>Vascular North America</td><td>Anesthesia/Respiratory North America</td><td>Surgical North America</td><td>EMEA</td><td>Asia</td><td>All Other</td><td>Total</td></tr><tr><td></td><td colspan="7">(Dollars in thousands)</td></tr><tr><td>Balance as of December 31, 2012</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Goodwill</td><td>$407,090</td><td>$167,942</td><td>$245,794</td><td>$353,282</td><td>$139,469</td><td>$257,003</td><td>1,570,580</td></tr><tr><td>Accumulated impairment losses</td><td>-219,527</td><td>-107,073</td><td>—</td><td>—</td><td>—</td><td>-5,528</td><td>-332,128</td></tr><tr><td></td><td>187,563</td><td>60,869</td><td>245,794</td><td>353,282</td><td>139,469</td><td>251,475</td><td>1,238,452</td></tr><tr><td>Goodwill related to acquisitions</td><td>52,606</td><td>—</td><td>4,712</td><td>17,922</td><td>6,394</td><td>41,650</td><td>123,284</td></tr><tr><td>Translation adjustment</td><td>—</td><td>-747</td><td>—</td><td>2,213</td><td>-8,917</td><td>-82</td><td>-7,533</td></tr><tr><td>Balance as of December 31, 2013</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Goodwill</td><td>459,696</td><td>167,195</td><td>250,506</td><td>373,417</td><td>136,946</td><td>298,571</td><td>1,686,331</td></tr><tr><td>Accumulated impairment losses</td><td>-219,527</td><td>-107,073</td><td>—</td><td>—</td><td>—</td><td>-5,528</td><td>-332,128</td></tr><tr><td></td><td>$240,169</td><td>$60,122</td><td>$250,506</td><td>$373,417</td><td>$136,946</td><td>$293,043</td><td>$1,354,203</td></tr></table>
<table><tr><td></td><td colspan="2">Gross Carrying Amount</td><td colspan="2">Accumulated Amortization</td></tr><tr><td></td><td>2014</td><td>2013</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="4">(Dollars in thousands)</td></tr><tr><td>Customer lists</td><td>$624,574</td><td>$628,020</td><td>$-192,876</td><td>$-168,223</td></tr><tr><td>In-process research and development</td><td>68,694</td><td>68,786</td><td>—</td><td>—</td></tr><tr><td>Intellectual property</td><td>467,068</td><td>435,869</td><td>-146,131</td><td>-118,086</td></tr><tr><td>Distribution rights</td><td>16,101</td><td>16,797</td><td>-14,243</td><td>-14,592</td></tr><tr><td>Trade names</td><td>396,269</td><td>407,879</td><td>-2,764</td><td>-1,148</td></tr><tr><td>Noncompete agreements</td><td>337</td><td>337</td><td>-309</td><td>-42</td></tr><tr><td></td><td>$1,573,043</td><td>$1,557,688</td><td>$-356,323</td><td>$-302,091</td></tr></table>

Question: What's the increasing rate of Distribution rights for Gross Carrying Amount in 2014?
Answer: -0.04144