☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) |
OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) |
OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3668640 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||
Common Stock , par value $0.01 per share | WAT | New York Stock Exchange , Inc. |
Securities registered pursuant to Section 12(g) of the Act: | None |
Large accelerated filer ☑ | Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company ☐ | ||||
Emerging growth company ☐ |
Item No. | Page | |||||||
PART I | ||||||||
1. | 1 | |||||||
1A. | 12 | |||||||
1B. | 19 | |||||||
2. | 19 | |||||||
3. | 20 | |||||||
4. | 20 | |||||||
20 | ||||||||
PART II | ||||||||
5. | 22 | |||||||
6. | 25 | |||||||
7. | 26 | |||||||
7A. | 43 | |||||||
8. | 46 | |||||||
9. | 96 | |||||||
9A. | 96 | |||||||
9B. | 96 | |||||||
PART III | ||||||||
10. | 97 | |||||||
11. | 97 | |||||||
12. | 97 | |||||||
13. | 98 | |||||||
14. | 98 | |||||||
PART IV | ||||||||
15. | 99 | |||||||
16. | 103 | |||||||
104 |
Item No. | Page | |||||||
1. | 3 | |||||||
1A. | 16 | |||||||
1B. | 25 | |||||||
2. | 26 | |||||||
3. | 27 | |||||||
4. | 27 | |||||||
5. | 28 | |||||||
6. | 31 | |||||||
7. | 31 | |||||||
7A. | 48 | |||||||
8. | 51 | |||||||
52 | ||||||||
9. | 102 | |||||||
9A. | 102 | |||||||
9B. | 102 | |||||||
9C. | 102 | |||||||
10. | 102 | |||||||
102 | ||||||||
11. | 104 | |||||||
12. | 104 | |||||||
13. | 105 | |||||||
14. | 105 | |||||||
15. | 106 | |||||||
16. | 110 | |||||||
111 |
Item 1: Business |
The Company sponsors various retirement plans, both inside and outside the United States. Any changes in regulations made by governments in countries in which the Company sponsors retirement plans could adversely impact the Company’s cash flows or results of operations. In connection with these retirement plans, the Company is exposed to market risks associated with changes in the various capital markets. For example, changes in long-term interest rates affect the discount rate that is used to measure the Company’s retirement plan 24 obligations and related expense. In addition, changes in the market value of investments held by the retirement plans could materially impact the funded status of the retirement plans, and affect the related pension expense and level and timing of contributions required under applicable laws. The Company’s financial condition and results of operations could be adversely affected if the Company is unable to maintain a sufficient level of cash flow. The Company had $1.5 billion in debt and $569 million in cash, cash equivalents and investments as of December 31, 2021. As of December 31, 2021, the Company also had the ability to borrow an additional $1.6 billion from its existing, committed credit facility. All but a small portion of the Company’s debt was in the U.S. There is a substantial cash requirement in the United States to fund operations and capital expenditures, service debt interest obligations, finance potential United States acquisitions and continue authorized stock repurchase programs. As such, the Company’s financial condition and results of operations could be adversely impacted if the Company is unable to generate and maintain a sufficient level of cash flow to address these requirements through (1) cash from operations, (2) the Company’s ability to access its existing cash and revolving credit facility, (3) the ability to expand the Company’s borrowing capacity and (4) other sources of capital obtained at an acceptable cost. Debt covenants, and the Company’s failure to comply with them, could negatively impact the Company’s capital and financial results. The Company’s debt is subject to restrictive debt covenants that limit the Company’s ability to engage in certain activities that could otherwise benefit the Company. These debt covenants include restrictions on the Company’s ability to enter into certain contracts or agreements, which may limit the Company’s ability to make dividend or other payments, secure other indebtedness, enter into transactions with affiliates and consolidate, merge or transfer all or substantially all of the Company’s assets. The Company is also required to meet specified financial ratios under the terms of the Company’s debt agreements. The Company’s ability to comply with these financial restrictions and all other covenants is dependent on the Company’s future performance, which is subject to, but not limited to, prevailing economic conditions and other factors, including factors that are beyond the Company’s control, such as foreign exchange rates, interest rates, changes in technology and changes in the level of competition. Item 1B: Unresolved Staff Comments |
Location | Function (2) | Owned/Leased | ||||||||
Golden, CO | M, R, S, D, A | Leased | ||||||||
New Castle, DE | M, R, S, D, A | Owned | ||||||||
Franklin, MA | D | Leased | ||||||||
Milford, MA | M, R, S, A | Owned | ||||||||
Taunton, MA | M, R | Owned | ||||||||
Cambridge, MA | R, S | Leased | ||||||||
Eden Prairie, MN | M, R, S, D, A | Leased | ||||||||
Nixa, MO | M, S, D, A | Leased | ||||||||
Lindon, UT | M, R, S, D, A | Leased | ||||||||
S, A | Leased | |||||||||
S, | Leased | |||||||||
Solihull, England | M,A | Owned | ||||||||
Wilmslow, England | M, R, S, D, A | Owned | ||||||||
St. Quentin, France | S, A | Leased | ||||||||
Huellhorst, Germany | M, R, S, D, A | Owned | ||||||||
S, A | Leased | |||||||||
Wexford, Ireland | M, R, D, A | Owned | ||||||||
M, S, D, A | Owned | |||||||||
Etten-Leur, Netherlands | S, D, A | Owned | ||||||||
Brasov, Romania | R, A | Leased | ||||||||
Singapore | R, S, D, A | Leased |
(1) | The Company operates more than one primary facility within certain states and foreign countries. |
(2) | M = Manufacturing; R = Research; S = Sales and Service; D = Distribution; A = Administration |
United States | International | ||||||||
Costa Mesa, CA | Australia | ||||||||
Pleasanton, CA | Austria | ||||||||
Wood Dale, IL | Belgium | ||||||||
Carmel, IN | Brazil | ||||||||
Columbia, MD | Canada | ||||||||
Morrisville, NC | |||||||||
Parsippany, NJ | Sweden | ||||||||
Plymouth Meeting, PA | Switzerland | ||||||||
Bellaire, TX | Taiwan | ||||||||
Germany | Netherlands | United Arab Emirates | |||||||
United Kingdom |
The Company operates more than one field office within certain states and foreign countries. |
Item 5: Market | for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
WATERS CORPORATION | $ | 100.00 | $ | 119.39 | $ | 119.22 | $ | 171.39 | $ | 167.36 | $ | 207.28 | |||||||||||||
NYSE MARKET INDEX | $ | 100.00 | $ | 95.91 | $ | 107.36 | $ | 127.46 | $ | 116.06 | $ | 145.66 | |||||||||||||
SIC CODE INDEX | $ | 100.00 | $ | 111.14 | $ | 102.42 | $ | 156.71 | $ | 165.13 | $ | 205.80 | |||||||||||||
S&P 500 INDEX | $ | 100.00 | $ | 101.38 | $ | 113.51 | $ | 138.29 | $ | 132.23 | $ | 173.86 |
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||
WATERS CORPORATION | 100.00 | 143.75 | 140.38 | 173.86 | 184.11 | 277.25 | ||||||||||||||||||
NYSE MARKET INDEX | 100.00 | 118.73 | 108.10 | 135.68 | 145.16 | 175.18 | ||||||||||||||||||
SIC CODE INDEX | 100.00 | 121.83 | 116.49 | 153.17 | 181.35 | 233.41 | ||||||||||||||||||
S&P 500 INDEX | 100.00 | 139.02 | 142.44 | 200.67 | 275.70 | 372.23 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs (2) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs (2) | ||||||||||||
September 29, 2019 to October 26, 2019 | 646 | $ | 217.06 | 646 | $ | 2,112,901 | ||||||||||
October 27, 2019 to November 23, 2019 | 797 | $ | 214.93 | 797 | $ | 1,941,602 | ||||||||||
November 24, 2019 to December 31, 2019 | 1,092 | $ | 228.96 | 1,092 | $ | 1,691,643 | ||||||||||
Total | 2,535 | $ | 221.52 | 2,535 | $ | 1,691,643 | ||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs (2) | ||||||||||||
October 3, 2021 to October 30, 2021 | 145 | $ | 351.92 | 145 | $ | 989,582 | ||||||||||
October 31, 2021 to November 27, 2021 | 141 | $ | 348.42 | 141 | $ | 940,385 | ||||||||||
November 28, 2021 to December 31, 2021 | 162 | $ | 346.16 | 162 | $ | 884,561 | ||||||||||
Total | 448 | $ | 348.74 | 448 | $ | 884,561 | ||||||||||
(1) | The |
(2) | In January 2019, the Company’s Board of Directors authorized the Company to repurchase up to $4 billion of its outstanding common stock in open market or private transactions over a two-year period. This pre-existing authorization. In December 2020, the Company’s Board of Directors authorized the extension of the share repurchase program through January 21, 2023. The size and timing of these purchases, if any, will depend on our stock price and market and business conditions, as well as other factors. |
In thousands, except per share and employees data | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
STATEMENT OF OPERATIONS DATA: | ||||||||||||||||||||
Net sales | $ | 2,406,596 | $ | 2,419,929 | $ | 2,309,078 | $ | 2,167,423 | $ | 2,042,332 | ||||||||||
Income from operations before income taxes | $ | 678,239 | $ | 682,146 | $ | 641,097 | $ | 600,114 | $ | 541,918 | ||||||||||
Net income* | $ | 592,198 | $ | 593,794 | $ | 20,311 | $ | 521,503 | $ | 469,275 | ||||||||||
Net income per basic common share* | $ | 8.76 | $ | 7.71 | $ | 0.25 | $ | 6.46 | $ | 5.70 | ||||||||||
Weighted-average number of basic common shares | 67,627 | 76,992 | 79,793 | 80,786 | 82,336 | |||||||||||||||
Net income per diluted common share* | $ | 8.69 | $ | 7.65 | $ | 0.25 | $ | 6.41 | $ | 5.65 | ||||||||||
Weighted-average number of diluted common shares and equivalents | 68,166 | 77,618 | 80,604 | 81,417 | 83,087 | |||||||||||||||
BALANCE SHEET AND OTHER DATA: | ||||||||||||||||||||
Cash, cash equivalents and investments | $ | 337,144 | $ | 1,735,224 | $ | 3,393,701 | $ | 2,813,032 | $ | 2,399,263 | ||||||||||
Working capital, including current maturities of debt** | $ | 721,157 | $ | 2,214,232 | $ | 3,663,977 | $ | 3,115,124 | $ | 2,649,457 | ||||||||||
Total assets** | $ | 2,557,055 | $ | 3,727,426 | $ | 5,324,354 | $ | 4,662,059 | $ | 4,268,677 | ||||||||||
Long-term debt | $ | 1,580,797 | $ | 1,148,172 | $ | 1,897,501 | $ | 1,701,966 | $ | 1,493,027 | ||||||||||
Stockholders’ (deficit) equity*** | $ | (216,281 | ) | $ | 1,567,258 | $ | 2,233,788 | $ | 2,301,949 | $ | 2,058,851 | |||||||||
Employees | 7,467 | 7,246 | 7,020 | 6,899 | 6,594 |
Year Ended December 31, | % change | |||||||||||||||||||
2019 | 2018 | 2017 | 2019 vs. 2018 | 2018 vs. 2017 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Product sales | $ | 1,567,189 | $ | 1,604,993 | $ | 1,552,349 | (2 | %) | 3 | % | ||||||||||
Service sales | 839,407 | 814,936 | 756,729 | 3 | % | 8 | % | |||||||||||||
Total net sales | 2,406,596 | 2,419,929 | 2,309,078 | (1 | %) | 5 | % | |||||||||||||
Costs and operating expenses: | ||||||||||||||||||||
Cost of sales | 1,010,700 | 992,564 | 947,067 | 2 | % | 5 | % | |||||||||||||
Selling and administrative expenses | 534,791 | 536,902 | 544,363 | — | (1 | %) | ||||||||||||||
Research and development expenses | 142,955 | 143,403 | 132,593 | — | 8 | % | ||||||||||||||
Purchased intangibles amortization | 9,693 | 7,712 | 6,743 | 26 | % | 14 | % | |||||||||||||
Litigation (settlement) provision | — | (426 | ) | 11,114 | 100 | % | (104 | %) | ||||||||||||
Acquired in-process research and development | — | — | 5,000 | — | (100 | %) | ||||||||||||||
Operating income | 708,457 | 739,774 | 662,198 | (4 | %) | 12 | % | |||||||||||||
Operating income as a % of sales | 29.4 | % | 30.6 | % | 28.7 | % | ||||||||||||||
Other expense | (3,586 | ) | (47,794 | ) | (340 | ) | ** | ** | ||||||||||||
Interest expense, net | (26,632 | ) | (9,834 | ) | (20,761 | ) | 171 | % | (53 | %) | ||||||||||
Income before income taxes | 678,239 | 682,146 | 641,097 | (1 | %) | 6 | % | |||||||||||||
Provision for income taxes | 86,041 | 88,352 | 620,786 | (3 | %) | (86 | %) | |||||||||||||
Net income | $ | 592,198 | $ | 593,794 | $ | 20,311 | — | ** | ||||||||||||
Net income per diluted common share | $ | 8.69 | $ | 7.65 | $ | 0.25 | 14 | % | ** |
Year Ended December 31, | % change | |||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Product sales | $ | 1,822,070 | $ | 1,497,333 | $ | 1,567,189 | 22 | % | (4 | %) | ||||||||||
Service sales | 963,804 | 868,032 | 839,407 | 11 | % | 3 | % | |||||||||||||
Total net sales | 2,785,874 | 2,365,365 | 2,406,596 | 18 | % | (2 | %) | |||||||||||||
Costs and operating expenses: | ||||||||||||||||||||
Cost of sales | 1,156,533 | 1,006,689 | 1,010,700 | 15 | % | — | % | |||||||||||||
Selling and administrative expenses | 626,968 | 553,698 | 534,791 | 13 | % | 4 | % | |||||||||||||
Research and development expenses | 168,358 | 140,777 | 142,955 | 20 | % | (2 | %) | |||||||||||||
Purchased intangibles amortization | 7,143 | 10,587 | 9,693 | (33 | %) | 9 | % | |||||||||||||
Asset impairments | — | 6,945 | — | (100 | %) | * | * | |||||||||||||
Litigation provision | 5,165 | 1,180 | — | 338 | % | * | * | |||||||||||||
Operating income | 821,707 | 645,489 | 708,457 | 27 | % | (9 | %) | |||||||||||||
Operating income as a % of sales | 29.5 | % | 27.3 | % | 29.4 | % | ||||||||||||||
Other income (expense), net | 17,203 | (1,775 | ) | (3,586 | ) | * | * | 51 | % | |||||||||||
Interest expense, net | (32,717 | ) | (32,800 | ) | (26,632 | ) | — | % | (23 | %) | ||||||||||
Income before income taxes | 806,193 | 610,914 | 678,239 | 32 | % | (10 | %) | |||||||||||||
Provision for income taxes | 113,350 | 89,343 | 86,041 | 27 | % | 4 | % | |||||||||||||
Net income | $ | 692,843 | $ | 521,571 | $ | 592,198 | 33 | % | (12 | %) | ||||||||||
Net income per diluted common share | $ | 11.17 | $ | 8.36 | $ | 8.69 | 34 | % | (4 | %) |
Year Ended December 31, | % change | |||||||||||||||||||
2019 | 2018 | 2017 | 2019 vs. 2018 | 2018 vs. 2017 | ||||||||||||||||
Net Sales: | ||||||||||||||||||||
Asia: | ||||||||||||||||||||
China | $ | 439,557 | $ | 443,321 | $ | 387,059 | (1 | %) | 15 | % | ||||||||||
Japan | 180,707 | 173,357 | 167,258 | 4 | % | 4 | % | |||||||||||||
Asia Other | 318,848 | 305,613 | 308,300 | 4 | % | (1 | %) | |||||||||||||
Total Asia | 939,112 | 922,291 | 862,617 | 2 | % | 7 | % | |||||||||||||
Americas: | ||||||||||||||||||||
United States | 692,277 | 683,596 | 669,274 | 1 | % | 2 | % | |||||||||||||
Americas Other | 137,964 | 151,581 | 140,715 | (9 | %) | 8 | % | |||||||||||||
Total Americas | 830,241 | 835,177 | 809,989 | (1 | %) | 3 | % | |||||||||||||
Europe | 637,243 | 662,461 | 636,472 | (4 | %) | 4 | % | |||||||||||||
Total net sales | $ | 2,406,596 | $ | 2,419,929 | $ | 2,309,078 | (1 | %) | 5 | % | ||||||||||
Year Ended December 31, | % change | |||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||
Net Sales: | ||||||||||||||||||||
Asia: | ||||||||||||||||||||
China | $ | 521,128 | $ | 404,352 | $ | 439,557 | 29 | % | (8 | %) | ||||||||||
Japan | 182,597 | 179,815 | 180,707 | 2 | % | — | % | |||||||||||||
Asia Other | 372,040 | 315,010 | 318,848 | 18 | % | (1 | %) | |||||||||||||
Total Asia | 1,075,765 | 899,177 | 939,112 | 20 | % | (4 | %) | |||||||||||||
Americas: | ||||||||||||||||||||
United States | 774,014 | 678,313 | 692,277 | 14 | % | (2 | %) | |||||||||||||
Americas Other | 151,206 | 119,529 | 137,964 | 27 | % | (13 | %) | |||||||||||||
Total Americas | 925,220 | 797,842 | 830,241 | 16 | % | (4 | %) | |||||||||||||
Europe | 784,889 | 668,346 | 637,243 | 17 | % | 5 | % | |||||||||||||
Total net sales | $ | 2,785,874 | $ | 2,365,365 | $ | 2,406,596 | 18 | % | (2 | %) | ||||||||||
Year Ended December 31, | % change | |||||||||||||||||||
2019 | 2018 | 2017 | 2019 vs. 2018 | 2018 vs. 2017 | ||||||||||||||||
Pharmaceutical | $ | 1,365,275 | $ | 1,365,731 | $ | 1,294,668 | — | 5 | % | |||||||||||
Industrial | 719,377 | 737,144 | 721,088 | (2 | %) | 2 | % | |||||||||||||
Academic and governmental | 321,944 | 317,054 | 293,322 | 2 | % | 8 | % | |||||||||||||
Total net sales | $ | 2,406,596 | $ | 2,419,929 | $ | 2,309,078 | (1 | %) | 5 | % | ||||||||||
Year Ended December 31, | % change | |||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs. 2020 | 2020 vs. 2019 | ||||||||||||||||
Pharmaceutical | $ | 1,667,061 | $ | 1,386,966 | $ | 1,365,275 | 20 | % | 2 | % | ||||||||||
Industrial | 829,204 | 707,772 | 719,377 | 17 | % | (2 | %) | |||||||||||||
Academic and governmental | 289,609 | 270,627 | 321,944 | 7 | % | (16 | %) | |||||||||||||
Total net sales | $ | 2,785,874 | $ | 2,365,365 | $ | 2,406,596 | 18 | % | (2 | %) | ||||||||||
Year Ended December 31, | % change | |||||||||||||||||||||||||||||||
2019 | % of Total | 2018 | % of Total | 2017 | % of Total | 2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||||||||||||||
Waters instrument systems | $ | 963,871 | 45 | % | $ | 1,000,625 | 47 | % | $ | 988,750 | 48 | % | (4 | %) | 1 | % | ||||||||||||||||
Chemistry consumables | 412,018 | 19 | % | 400,287 | 18 | % | 372,157 | 18 | % | 3 | % | 8 | % | |||||||||||||||||||
Total Waters product sales | 1,375,889 | 64 | % | 1,400,912 | 65 | % | 1,360,907 | 66 | % | (2 | %) | 3 | % | |||||||||||||||||||
Waters service | 761,594 | 36 | % | 738,433 | 35 | % | 686,656 | 34 | % | 3 | % | 8 | % | |||||||||||||||||||
Total Waters net sales | $ | 2,137,483 | 100 | % | $ | 2,139,345 | 100 | % | $ | 2,047,563 | 100 | % | — | 4 | % | |||||||||||||||||
Year Ended December 31, | % change | |||||||||||||||||||||||||||||||
2021 | % of Total | 2020 | % of Total | 2019 | % of Total | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||
Waters instrument systems | $ | 1,089,248 | 44 | % | $ | 890,855 | 42 | % | $ | 963,871 | 45 | % | 22 | % | (8 | %) | ||||||||||||||||
Chemistry consumables | 507,209 | 21 | % | 432,080 | 20 | % | 412,018 | 19 | % | 17 | % | 5 | % | |||||||||||||||||||
Total Waters product sales | 1,596,457 | 65 | % | 1,322,935 | 62 | % | 1,375,889 | 64 | % | 21 | % | (4 | %) | |||||||||||||||||||
Waters service | 876,626 | 35 | % | 794,189 | 38 | % | 761,594 | 36 | % | 10 | % | 4 | % | |||||||||||||||||||
Total Waters net sales | $ | 2,473,083 | 100 | % | $ | 2,117,124 | 100 | % | $ | 2,137,483 | 100 | % | 17 | % | (1 | %) | ||||||||||||||||
Year Ended December 31, | % change | |||||||||||||||||||||||||||||||
2019 | % of Total | 2018 | % of Total | 2017 | % of Total | 2019 vs. 2018 | 2018 vs. 2017 | |||||||||||||||||||||||||
TA instrument systems | $ | 191,300 | 71 | % | $ | 204,081 | 73 | % | $ | 191,442 | 73 | % | (6 | %) | 7 | % | ||||||||||||||||
TA service | 77,813 | 29 | % | 76,503 | 27 | % | 70,073 | 27 | % | 2 | % | 9 | % | |||||||||||||||||||
Total TA net sales | $ | 269,113 | 100 | % | $ | 280,584 | 100 | % | $ | 261,515 | 100 | % | (4 | %) | 7 | % | ||||||||||||||||
Year Ended December 31, | % change | |||||||||||||||||||||||||||||||
2021 | % of Total | 2020 | % of Total | 2019 | % of Total | 2021 vs. 2020 | 2020 vs. 2019 | |||||||||||||||||||||||||
TA instrument systems | $ | 225,613 | 72 | % | $ | 174,398 | 70 | % | $ | 191,300 | 71 | % | 29 | % | (9 | %) | ||||||||||||||||
TA service | 87,178 | 28 | % | 73,843 | 30 | % | 77,813 | 29 | % | 18 | % | (5 | %) | |||||||||||||||||||
Total TA net sales | $ | 312,791 | 100 | % | $ | 248,241 | 100 | % | $ | 269,113 | 100 | % | 26 | % | (8 | %) | ||||||||||||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net income | $ | 592,198 | $ | 593,794 | $ | 20,311 | ||||||
Depreciation and amortization | 105,296 | 108,408 | 106,002 | |||||||||
Stock-based compensation | 38,577 | 37,541 | 39,436 | |||||||||
Deferred income taxes | 9,620 | 2,405 | 45,510 | |||||||||
In-process research and development and othernon-cash charges | — | — | 5,000 | |||||||||
Change in accounts receivable | (22,195 | ) | (47,921 | ) | (24,013 | ) | ||||||
Change in inventories | (31,854 | ) | (25,396 | ) | 731 | |||||||
Change in accounts payable and other current liabilities | 9,784 | (81,663 | ) | 3,175 | ||||||||
Change in deferred revenue and customer advances | 12,189 | 2,721 | 10,386 | |||||||||
Effect of the 2017 Tax Cuts and Jobs Act | (3,229 | ) | (6,059 | ) | 530,383 | |||||||
Other changes | (67,299 | ) | 20,616 | (39,281 | ) | |||||||
Net cash provided by operating activities | 643,087 | 604,446 | 697,640 | |||||||||
Net cash provided by (used in) investing activities | 768,802 | 1,683,302 | (535,752 | ) | ||||||||
Net cash used in financing activities | (1,872,678 | ) | (2,119,522 | ) | (63,869 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 224 | (14,265 | ) | 38,669 | ||||||||
(Decrease) increase in cash and cash equivalents | $ | (460,565 | ) | $ | 153,961 | $ | 136,688 | |||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Net income | $ | 692,843 | $ | 521,571 | $ | 592,198 | ||||||
Depreciation and amortization | 131,680 | 125,361 | 105,296 | |||||||||
Stock-based compensation | 29,918 | 36,865 | 38,577 | |||||||||
Deferred income taxes | 16,633 | (2,693 | ) | 9,620 | ||||||||
Asset impairments | — | 6,945 | — | |||||||||
Observable unrealized gain on investment | (9,707 | ) | — | — | ||||||||
Change in accounts receivable | (62,448 | ) | 37,467 | (22,195 | ) | |||||||
Change in inventories | (67,250 | ) | 18,940 | (31,854 | ) | |||||||
Change in accounts payable and other current liabilities | 46,110 | 140,598 | 9,784 | |||||||||
Change in deferred revenue and customer advances | 37,845 | 11,073 | 12,189 | |||||||||
Effect of the 2017 Tax Cuts and Jobs Act | — | — | (3,229 | ) | ||||||||
Other changes | (68,350 | ) | (105,620 | ) | (67,299 | ) | ||||||
Net cash provided by operating activities | 747,274 | 790,507 | 643,087 | |||||||||
Net cash (used in) provided by investing activities | (231,630 | ) | (264,094 | ) | 768,802 | |||||||
Net cash used in financing activities | (438,275 | ) | (440,502 | ) | (1,872,678 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (12,830 | ) | 15,069 | 224 | ||||||||
Increase (decrease) in cash and cash equivalents | $ | 64,539 | $ | 100,980 | $ | (460,565 | ) | |||||
Payments Due by Year (1) | ||||||||||||||||||||||||||||||||
Total | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | After 2025 | |||||||||||||||||||||||||
Notes payable and debt | $ | 100,366 | $ | 100,366 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Interest on senior unsecured notes | 214,160 | 33,962 | 30,273 | 28,160 | 27,182 | 24,654 | 22,714 | 47,215 | ||||||||||||||||||||||||
Long-term debt (2) | 1,585,000 | — | 150,000 | 625,000 | 50,000 | 100,000 | — | 660,000 | ||||||||||||||||||||||||
2017 Tax Act liability | 403,768 | 38,454 | 38,454 | 38,454 | 72,101 | 96,135 | 120,170 | — | ||||||||||||||||||||||||
Operating leases | 103,359 | 29,489 | 21,774 | 16,743 | 9,175 | 6,867 | 5,550 | 13,761 | ||||||||||||||||||||||||
Total | $ | 2,406,653 | $ | 202,271 | $ | 240,501 | $ | 708,357 | $ | 158,458 | $ | 227,656 | $ | 148,434 | $ | 720,976 | ||||||||||||||||
Amount of Commitments Expiration Per Period | ||||||||||||||||||||||||||||||||
Total | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | After 2025 | |||||||||||||||||||||||||
Letters of credit | $ | 1,797 | $ | 1,797 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Unrecognized Compensation Costs | Weighted-Average Life in Years | |||||||
Stock options | $ | 32 | 3.2 | |||||
Restricted stock units | 36 | 3.3 | ||||||
Performance stock units | 10 | 1.9 | ||||||
Restricted stock | — | — | ||||||
Total | $ | 78 | 3.1 | |||||
Unrecognized Compensation Costs | Weighted-Average Life in Years | |||||||
Stock options | $ | 20 | 3.5 | |||||
Restricted stock units | 44 | 3.3 | ||||||
Performance stock units | 12 | 2.0 | ||||||
Total | $ | 76 | 3.1 | |||||
December 31, 2019 | December 31, 2018 | |||||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
Other current assets | $ | 119,576 | $ | 16 | $ | 112,212 | $ | 503 | ||||||||
Other current liabilities | $ | 29,495 | $ | 1,028 | $ | 40,175 | $ | 224 | ||||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||
Other assets | $ | 560,000 | $ | 4,485 | $ | 300,000 | $ | 1,093 | ||||||||
Accumulated other comprehensive income | $ | (4,485 | ) | $ | (1,093 | ) |
December 31, 2021 | December 31, 2020 | |||||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
Other current assets | $ | 55,309 | $ | 504 | $ | 66,690 | $ | 836 | ||||||||
Other current liabilities | $ | 9,000 | $ | 195 | $ | 20,000 | $ | 185 | ||||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||
Other liabilities | $ | 230,000 | $ | 5,363 | $ | 560,000 | $ | 44,996 | ||||||||
Accumulated other comprehensive loss | $ | 15,944 | $ | 44,996 |
Financial Statement Classification | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
Realized (losses) gains on closed contracts | Cost of sales | $ | (3,552 | ) | $ | (6,684 | ) | $ | 3,894 | |||||||
Unrealized (losses) gains on open contracts | Cost of sales | (1,292 | ) | (105 | ) | 1,054 | ||||||||||
Cumulative net pre-tax (losses) gains | Cost of sales | $ | (4,844 | ) | $ | (6,789 | ) | $ | 4,948 | |||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||
Interest earned | Interest income | $ | 11,709 | $ | 2,713 | $ | — | |||||||||
Unrealized gains on open contracts | Stockholders’ (deficit) equity | $ | 4,485 | $ | 1,093 | $ | — |
Financial Statement Classification | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2021 | 2020 | 2019 | ||||||||||||
Foreign currency exchange contracts: | ||||||||||||||
Realized (losses) gains on closed contracts | Cost of sales | $ | (1,973 | ) | $ | 1,444 | $ | (3,552 | ) | |||||
Unrealized (losses) gains on open contracts | Cost of sales | (343 | ) | 1,663 | (1,292 | ) | ||||||||
Cumulative net pre-tax (losses) gains | Cost of sales | $ | (2,316 | ) | $ | 3,107 | $ | (4,844 | ) | |||||
Interest rate cross-currency swap agreements: | ||||||||||||||
Interest earned | Interest income | $ | 11,084 | $ | 15,296 | $ | 11,709 | |||||||
Unrealized gains (losses) on open contracts | Accumulated other comprehensive loss | $ | 29,052 | $ | (44,996 | ) | $ | 4,485 |
Item 8: |
/s/ PricewaterhouseCoopers LLP |
Boston, Massachusetts |
February |
December 31, | ||||||||
2019 | 2018 | |||||||
(In thousands, except per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 335,715 | $ | 796,280 | ||||
Investments | 1,429 | 938,944 | ||||||
Accounts receivable, net | 587,734 | 568,316 | ||||||
Inventories | 320,551 | 291,569 | ||||||
Other current assets | 67,062 | 68,054 | ||||||
Total current assets | 1,312,491 | 2,663,163 | ||||||
Property, plant and equipment, net | 417,342 | 343,083 | ||||||
Intangible assets, net | 240,203 | 246,902 | ||||||
Goodwill | 356,128 | 355,614 | ||||||
Operating lease assets | 93,358 | — | ||||||
Other assets | 137,533 | 118,664 | ||||||
Total assets | $ | 2,557,055 | $ | 3,727,426 | ||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||
Current liabilities: | ||||||||
Notes payable and debt | $ | 100,366 | $ | 178 | ||||
Accounts payable | 49,001 | 68,168 | ||||||
Accrued employee compensation | 43,467 | 64,545 | ||||||
Deferred revenue and customer advances | 176,360 | 164,965 | ||||||
Current operating lease liabilities | 27,125 | — | ||||||
Accrued income taxes | 45,967 | 22,943 | ||||||
Accrued warranty | 11,964 | 12,300 | ||||||
Other current liabilities | 137,084 | 115,832 | ||||||
Total current liabilities | 591,334 | 448,931 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 1,580,797 | 1,148,172 | ||||||
Long-term portion of retirement benefits | 59,159 | 55,853 | ||||||
Long-term income tax liabilities | 394,562 | 430,866 | ||||||
Long-term operating lease liabilities | 66,881 | — | ||||||
Other long-term liabilities | 80,603 | 76,346 | ||||||
Total long-term liabil ities | 2,182,002 | 1,711,237 | ||||||
Total liabilities | 2,773,336 | 2,160,168 | ||||||
Commitments and contingencies (Notes 6, 9, 10, 11, 12, 13 and 17 ) | ||||||||
Stockholders’ (deficit) equity: | ||||||||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, 0 ne issued at December 31, 2019 and December 31, 2018 | — | — | ||||||
Common stock, par value $0.01 per share, 400,000 shares authorized, 161,030 and 160,472 shares issued, 62,587 and 73,115 shares outstanding at December 31, 2019 and December 31, 2018, respectively | 1,610 | 1,605 | ||||||
Additional paid-in capital | 1,926,753 | 1,834,741 | ||||||
Retained earnings | 6,587,403 | 5,995,205 | ||||||
Treasury stock, at cost, 98,443 and 87,357 shares at December 31, 2019 and December 31, 2018, respectively | (8,612,576 | ) | (6,146,322 | ) | ||||
Accumulated other comprehensive loss | (119,471 | ) | (117,971 | ) | ||||
Total stockholders’ (deficit) equity | (216,281 | ) | 1,567,258 | |||||
Total liabilities and stockholders’ (deficit) equity | $ | 2,557,055 | $ | 3,727,426 | ||||
December 31, | ||||||||
2021 | 2020 | |||||||
(In thousands, except per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 501,234 | $ | 436,695 | ||||
Investments | 68,051 | 6,451 | ||||||
Accounts receivable, net | 612,648 | 573,316 | ||||||
Inventories | 356,095 | 304,281 | ||||||
Other current assets | 90,914 | 80,290 | ||||||
Total current assets | 1,628,942 | 1,401,033 | ||||||
Property, plant and equipment, net | 547,913 | 494,003 | ||||||
Intangible assets, net | 242,401 | 258,645 | ||||||
Goodwill | 437,865 | 444,362 | ||||||
Operating lease assets | 84,734 | 93,252 | ||||||
Other assets | 153,077 | 148,625 | ||||||
Total assets | $ | 3,094,932 | $ | 2,839,920 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Notes payable and debt | $ | 0 | $ | 150,000 | ||||
Accounts payable | 96,799 | 72,212 | ||||||
Accrued employee compensation | 101,192 | 72,166 | ||||||
Deferred revenue and customer advances | 227,561 | 198,240 | ||||||
Current operating lease liabilities | 27,906 | 27,764 | ||||||
Accrued income taxes | 61,278 | 76,558 | ||||||
Accrued warranty | 10,718 | 10,950 | ||||||
Other current liabilities | 155,054 | 197,093 | ||||||
Total current liabilities | 680,508 | 804,983 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 1,513,870 | 1,206,515 | ||||||
Long-term portion of retirement benefits | 64,027 | 72,620 | ||||||
Long-term income tax liabilities | 319,547 | 357,493 | ||||||
Long-term operating lease liabilities | 59,623 | 68,197 | ||||||
Other long-term liabilities | 89,803 | 97,968 | ||||||
Total long-term liabilities | 2,046,870 | 1,802,793 | ||||||
Total liabilities | 2,727,378 | 2,607,776 | ||||||
Commitments and contingencies (Notes 6, 9, 10, 11, 12, 13 and 17) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, NaN issued at December 31, 2021 and December 31, 2020 | 0 | 0 | ||||||
Common stock, par value $0.01 per share, 400,000 shares authorized, 162,084 and 161,666 shares issued, 60,728 and 62,309 shares outstanding at December 31, 2021 and December 31, 2020, respectively | 1,621 | 1,617 | ||||||
Additional paid-in capital | 2,114,880 | 2,029,465 | ||||||
Retained earnings | 7,800,832 | 7,107,989 | ||||||
Treasury stock, at cost, 101,356 and 99,357 shares at December 31, 2021 and December 31, 2020, respectively | (9,437,914 | ) | (8,788,984 | ) | ||||
Accumulated other comprehensive loss | (111,865 | ) | (117,943 | ) | ||||
Total stockholders’ equity | 367,554 | 232,144 | ||||||
Total liabilities and stockholders’ equity | $ | 3,094,932 | $ | 2,839,920 | ||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Revenues: | ||||||||||||
Product sales | $ | 1,567,189 | $ | 1,604,993 | $ | 1,552,349 | ||||||
Service sales | 839,407 | 814,936 | 756,729 | |||||||||
Total net sales | 2,406,596 | 2,419,929 | 2,309,078 | |||||||||
Costs and operating expenses: | ||||||||||||
Cost of product sales | 642,706 | 656,275 | 623,214 | |||||||||
Cost of service sales | 367,994 | 336,289 | 323,853 | |||||||||
Selling and administrative expenses | 534,791 | 536,902 | 544,363 | |||||||||
Research and development expenses | 142,955 | 143,403 | 132,593 | |||||||||
Purchased intangibles amortization | 9,693 | 7,712 | 6,743 | |||||||||
Litigation provision (settlement) (Note 11) | — | (426 | ) | 11,114 | ||||||||
Acquired in-process research and development (Note 2) | — | — | 5,000 | |||||||||
Total costs and operating expenses | 1,698,139 | 1,680,155 | 1,646,880 | |||||||||
Operating income | 708,457 | 739,774 | 662,198 | |||||||||
Other expense | (3,586 | ) | (47,794 | ) | (340 | ) | ||||||
Interest expense | (48,690 | ) | (48,641 | ) | (56,839 | ) | ||||||
Interest income | 22,058 | 38,807 | 36,078 | |||||||||
Income before income taxes | 678,239 | 682,146 | 641,097 | |||||||||
Provision for income taxes | 86,041 | 88,352 | 620,786 | |||||||||
Net income | $ | 592,198 | $ | 593,794 | $ | 20,311 | ||||||
Net income per basic common share | $ | 8.76 | $ | 7.71 | $ | 0.25 | ||||||
Weighted-average number of basic common shares | 67,627 | 76,992 | 79,793 | |||||||||
Net income per diluted common share | $ | 8.69 | $ | 7.65 | $ | 0.25 | ||||||
Weighted-average number of diluted common shares and equivalents | 68,166 | 77,618 | 80,604 |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(In thousands, except per share data) | ||||||||||||
Revenues: | ||||||||||||
Product sales | $ | 1,822,070 | $ | 1,497,333 | $ | 1,567,189 | ||||||
Service sales | 963,804 | 868,032 | 839,407 | |||||||||
Total net sales | 2,785,874 | 2,365,365 | 2,406,596 | |||||||||
Costs and operating expenses: | ||||||||||||
Cost of product sales | 752,514 | 638,033 | 642,706 | |||||||||
Cost of service sales | 404,019 | 368,656 | 367,994 | |||||||||
Selling and administrative expenses | 626,968 | 553,698 | 534,791 | |||||||||
Research and development expenses | 168,358 | 140,777 | 142,955 | |||||||||
Purchased intangibles amortization | 7,143 | 10,587 | 9,693 | |||||||||
Asset impairments | 0 | 6,945 | 0 | |||||||||
Litigation provision (Note 11) | 5,165 | 1,180 | 0 | |||||||||
Total costs and operating expenses | 1,964,167 | 1,719,876 | 1,698,139 | |||||||||
Operating income | 821,707 | 645,489 | 708,457 | |||||||||
Other income (expense), net | 17,203 | (1,775 | ) | (3,586 | ) | |||||||
Interest expense | (44,938 | ) | (49,070 | ) | (48,690 | ) | ||||||
Interest income | 12,221 | 16,270 | 22,058 | |||||||||
Income before income taxes | 806,193 | 610,914 | 678,239 | |||||||||
Provision for income taxes | 113,350 | 89,343 | 86,041 | |||||||||
Net income | $ | 692,843 | $ | 521,571 | $ | 592,198 | ||||||
Net income per basic common share | $ | 11.25 | $ | 8.40 | $ | 8.76 | ||||||
Weighted-average number of basic common shares | 61,575 | 62,094 | 67,627 | |||||||||
Net income per diluted common share | $ | 11.17 | $ | 8.36 | $ | 8.69 | ||||||
Weighted-average number of diluted common shares and equivalents | 62,028 | 62,414 | 68,166 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(In thousands) | ||||||||||||
Net income | $ | 592,198 | $ | 593,794 | $ | 20,311 | ||||||
Other comprehensive (loss) income: | ||||||||||||
Foreign currency translation | 1,631 | (36,279 | ) | 101,148 | ||||||||
Unrealized gains (losses) on investments before income taxes | 3,046 | 698 | (1,794 | ) | ||||||||
Income tax (expense) benefit | (641 | ) | 443 | 68 | ||||||||
Unrealized gains (losses) on investments, net of tax | 2,405 | 1,141 | (1,726 | ) | ||||||||
Retirement liability adjustment before reclassifications | (9,360 | ) | (6,722 | ) | 7,832 | |||||||
Amounts reclassified to other expense | 1,979 | 48,792 | 3,948 | |||||||||
Retirement liability adjustment before income taxes | (7,381 | ) | 42,070 | 11,780 | ||||||||
Income tax benefit (expense) | 1,845 | (14,836 | ) | (4,989 | ) | |||||||
Retirement liability adjustment, net of tax | (5,536 | ) | 27,234 | 6,791 | ||||||||
Other comprehensive (loss) income | (1,500 | ) | (7,904 | ) | 106,213 | |||||||
Comprehensive income | $ | 590,698 | $ | 585,890 | $ | 126,524 | ||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(In thousands) | ||||||||||||
Net income | $ | 692,843 | $ | 521,571 | $ | 592,198 | ||||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation | (1,903 | ) | 5,984 | 1,631 | ||||||||
Unrealized (losses) gains on investments before income taxes | (26 | ) | 0 | 3,046 | ||||||||
Income tax benefit (expense) | 6 | 0 | (641 | ) | ||||||||
Unrealized (losses) gains on investments, net of tax | (20 | ) | 0 | 2,405 | ||||||||
Retirement liability adjustment before reclassifications | 9,342 | (6,786 | ) | (9,360 | ) | |||||||
Amounts reclassified to other income (expense), net | 1,167 | 1,389 | 1,979 | |||||||||
Retirement liability adjustment before income taxes | 10,509 | (5,397 | ) | (7,381 | ) | |||||||
Income tax (expense) benefit | (2,508 | ) | 941 | 1,845 | ||||||||
Retirement liability adjustment, net of tax | 8,001 | (4,456 | ) | (5,536 | ) | |||||||
Other comprehensive income (loss) | 6,078 | 1,528 | (1,500 | ) | ||||||||
Comprehensive income | $ | 698,921 | $ | 523,099 | $ | 590,698 | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 592,198 | $ | 593,794 | $ | 20,311 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Stock-based compensation | 38,577 | 37,541 | 39,436 | |||||||||
Deferred income taxes | 9,620 | 2,405 | 45,510 | |||||||||
Depreciation | 53,839 | 57,952 | 61,450 | |||||||||
Amortization of intangibles | 51,457 | 50,456 | 44,552 | |||||||||
In-process research and development and othernon-cash charges | — | — | 5,000 | |||||||||
Change in operating assets and liabilities, net of acquisitions: | ||||||||||||
Increase in accounts receivable | (22,195 | ) | (47,921 | ) | (24,013 | ) | ||||||
( Increase) decrease in inventories | (31,854 | ) | (25,396 | ) | 731 | |||||||
Increase in other current assets | (10,918 | ) | (12,446 | ) | (16,323 | ) | ||||||
(Increase) decrease in other assets | (16,470 | ) | 6,047 | (24,098 | ) | |||||||
Increase (decrease) in accounts payable and other current liabilities | 9,784 | (81,663 | ) | 3,175 | ||||||||
I ncrease in deferred revenue and customer advances | 12,189 | 2,721 | 10,386 | |||||||||
Effect of the 2017 Tax Cuts and Jobs Act | (3,229 | ) | (6,059 | ) | 530,383 | |||||||
(Decrease) ncrease in other liabilitiesi | (39,911 | ) | 27,015 | 1,140 | ||||||||
Net cash provided by operating activities | 643,087 | 604,446 | 697,640 | |||||||||
Cash flows from investing activities: | ||||||||||||
Additions to property, plant, equipment and software capitalization | (163,823 | ) | (96,079 | ) | (85,473 | ) | ||||||
Asset and business acquisitions, net of cash acquired | — | (31,486 | ) | — | ||||||||
Investment in unaffiliated company | (8,843 | ) | (7,615 | ) | (7,000 | ) | ||||||
Paym ents for intellectual p roperty licen ses | — | — | (5,000 | ) | ||||||||
P of investmentsurc hases | (36,951 | ) | (1,006,080 | ) | (2,960,379 | ) | ||||||
Maturities and sales of inves tments | 978,419 | 2,824,562 | 2,522,100 | |||||||||
Net cash provided by (used in) investing activities | 768,802 | 1,683,302 | (535,752 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from debt issuances | 925,670 | 274 | 1,480,190 | |||||||||
Payments on debt | (390,482 | ) | (850,435 | ) | (1,310,214 | ) | ||||||
Payments of debt issuance costs | (2,932 | ) | — | (2,984 | ) | |||||||
Proceeds from stock plans | 53,715 | 52,429 | 97,789 | |||||||||
Purchases of treasury shares | (2,469,258 | ) | (1,315,106 | ) | (332,544 | ) | ||||||
Proceeds from (payments for) derivative contracts | 10,609 | (6,684 | ) | 3,894 | ||||||||
Net cash used in financing activities | (1,872,678 | ) | (2,119,522 | ) | (63,869 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 224 | (14,265 | ) | 38,669 | ||||||||
(Decrease) increase in cash and cash equivalents | (460,565 | ) | 153,961 | 136,688 | ||||||||
Cash and cash equivalents at beginning of period | 796,280 | 642,319 | 505,631 | |||||||||
Cash and cash equivalents at end of period | $ | 335,715 | $ | 796,280 | $ | 642,319 | ||||||
Supplemental cash flow information: | ||||||||||||
Income taxes paid | $ | 87,998 | $ | 159,397 | $ | 70,583 | ||||||
Interest paid | $ | 42,843 | $ | 50,798 | $ | 56,503 |
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(In thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 692,843 | $ | 521,571 | $ | 592,198 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Stock-based compensation | 29,918 | 36,865 | 38,577 | |||||||||
Deferred income taxes | 16,633 | (2,693 | ) | 9,620 | ||||||||
Depreciation | 71,560 | 68,685 | 53,839 | |||||||||
Amortization of intangibles | 60,120 | 56,676 | 51,457 | |||||||||
Asset impairments | 0 | 6,945 | 0 | |||||||||
Observable unrealized gain o n investment | (9,707 | ) | 0 | 0 | ||||||||
Change in operating assets and liabilities, net of acquisitions: | ||||||||||||
(Increase) decrease in accounts receivable | (62,448 | ) | 37,467 | (22,195 | ) | |||||||
(Increase) decrease in inventories | (67,250 | ) | 18,940 | (31,854 | ) | |||||||
Increase in other current assets | (20,765 | ) | (27,030 | ) | (10,918 | ) | ||||||
Decrease (increase) in other assets | 4,490 | (37,865 | ) | (16,470 | ) | |||||||
Increase in accounts payable and other current liabilities | 46,110 | 140,598 | 9,784 | |||||||||
Increase in deferred revenue and customer advances | 37,845 | 11,073 | 12,189 | |||||||||
Effect of the 2017 Tax Cuts and Jobs Act | 0 | 0 | (3,229 | ) | ||||||||
Decrease in other liabilities | (52,075 | ) | (40,725 | ) | (39,911 | ) | ||||||
Net cash provided by operating activities | 747,274 | 790,507 | 643,087 | |||||||||
Cash flows from investing activities: | ||||||||||||
Additions to property, plant, equipment and software capitalization | (161,266 | ) | (172,384 | ) | (163,823 | ) | ||||||
Asset and business acquisitions, net of cash acquired | 0 | (80,545 | ) | 0 | ||||||||
Investment in unaffiliated company | (1,788 | ) | (6,143 | ) | (8,843 | ) | ||||||
Payments for intellectual property licenses | (7,000 | ) | 0 | 0— | ||||||||
Purchases of investments | (279,660 | ) | (25,884 | ) | (36,951 | ) | ||||||
Maturities and sales of investments | 218,084 | 20,862 | 978,419 | |||||||||
Net cash (used in) provided by investing activities | (231,630 | ) | (264,094 | ) | 768,802 | |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from debt issuances | 510,000 | 315,000 | 925,670 | |||||||||
Payments on debt | (350,000 | ) | (640,366 | ) | (390,482 | ) | ||||||
Payments of debt issuance costs | (8,537 | ) | 0 | (2,932 | ) | |||||||
Proceeds from stock plans | 55,643 | 66,033 | 53,715 | |||||||||
Purchases of treasury shares | (648,930 | ) | (196,409 | ) | (2,469,258 | ) | ||||||
Proceeds from derivative contracts | 3,549 | 15,240 | 10,609 | |||||||||
Net cash used in financing activities | (438,275 | ) | (440,502 | ) | (1,872,678 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (12,830 | ) | 15,069 | 224 | ||||||||
Increase (decrease) in cash and cash equivalents | 64,539 | 100,980 | (460,565 | ) | ||||||||
Cash and cash equivalents at beginning of period | 436,695 | 335,715 | 796,280 | |||||||||
Cash and cash equivalents at end of period | $ | 501,234 | $ | 436,695 | $ | 335,715 | ||||||
Supplemental cash flow information: | ||||||||||||
Income taxes paid | $ | 153,504 | $ | 97,621 | $ | 87,998 | ||||||
Interest paid | $ | 42,408 | $ | 52,103 | $ | 42,843 |
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity ( Defi cit) | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance December 31, 2016 | 158,634 | $ | 1,586 | $ | 1,607,241 | $ | 5,385,069 | $ | (4,475,667 | ) | $ | (216,280 | ) | $ | 2,301,949 | |||||||||||||
Net income | — | — | — | 20,311 | — | — | 20,311 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 106,213 | 106,213 | |||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 50 | 1 | 6,874 | — | — | — | 6,875 | |||||||||||||||||||||
Stock options exercised | 972 | 10 | 90,904 | — | — | — | 90,914 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (332,544 | ) | — | (332,544 | ) | |||||||||||||||||||
Stock-based compensation | 189 | 1 | 40,069 | — | — | — | 40,070 | |||||||||||||||||||||
Balance December 31, 2017 | 159,845 | $ | 1,598 | $ | 1,745,088 | $ | 5,405,380 | $ | (4,808,211 | ) | $ | (110,067 | ) | $ | 2,233,788 | |||||||||||||
Adoption of new accounting pronouncement | — | — | — | (3,969 | ) | — | — | (3,969 | ) | |||||||||||||||||||
Net income | — | — | — | 593,794 | — | — | 593,794 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (7,904 | ) | (7,904 | ) | |||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 45 | — | 7,874 | — | — | — | 7,874 | |||||||||||||||||||||
Stock options exercised | 438 | 5 | 44,550 | — | — | — | 44,555 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (1,338,111 | ) | — | (1,338,111 | ) | |||||||||||||||||||
Stock-based compensation | 144 | 2 | 37,229 | — | — | — | 37,231 | |||||||||||||||||||||
Balance December 31, 2018 | 160,472 | $ | 1,605 | $ | 1,834,741 | $ | 5,995,205 | $ | (6,146,322 | ) | $ | (117,971 | ) | $ | 1,567,258 | |||||||||||||
Net income | — | — | — | 592,198 | — | — | 592,198 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (1,500 | ) | (1,500 | ) | |||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 43 | — | 7,996 | — | — | — | 7,996 | |||||||||||||||||||||
Stock options exercised | 406 | 4 | 45,715 | — | �� | — | — | 45,719 | ||||||||||||||||||||
Treasury stock | — | — | — | — | (2,466,254 | ) | — | (2,466,254 | ) | |||||||||||||||||||
Stock-based compensation | 109 | 1 | 38,301 | — | — | — | 38,302 | |||||||||||||||||||||
Balance December 31, 2019 | 161,030 | $ | 1,610 | $ | 1,926,753 | $ | 6,587,403 | $ | (8,612,576 | ) | $ | (119,471 | ) | $ | (216,281 | ) | ||||||||||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Balance December 31, 2018 | 160,472 | $ | 1,605 | $ | 1,834,741 | $ | 5,995,205 | $ | (6,146,322 | ) | $ | (117,971 | ) | $ | 1,567,258 | |||||||||||||
Net income | — | — | — | 592,198 | — | — | 592,198 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (1,500 | ) | (1,500 | ) | |||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 43 | — | 7,996 | — | — | — | 7,996 | |||||||||||||||||||||
Stock options exercised | 406 | 4 | 45,715 | — | — | — | 45,719 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (2,466,254 | ) | — | (2,466,254 | ) | |||||||||||||||||||
Stock-based compensation | 109 | 1 | 38,301 | — | — | — | 38,302 | |||||||||||||||||||||
Balance December 31, 2019 | 161,030 | $ | 1,610 | $ | 1,926,753 | $ | 6,587,403 | $ | (8,612,576 | ) | $ | (119,471 | ) | $ | (216,281 | ) | ||||||||||||
Adoption of new accounting pronouncement | — | — | — | (985 | ) | — | — | (985 | ) | |||||||||||||||||||
Net income | — | — | — | 521,571 | — | — | 521,571 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 1,528 | 1,528 | |||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 43 | — | 7,531 | — | — | — | 7,531 | |||||||||||||||||||||
Stock options exercised | 456 | 5 | 58,497 | — | — | — | 58,502 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (176,408 | ) | — | (176,408 | ) | |||||||||||||||||||
Stock-based compensation | 137 | 2 | 36,684 | — | — | — | 36,686 | |||||||||||||||||||||
Balance December 31, 2020 | 161,666 | $ | 1,617 | $ | 2,029,465 | $ | 7,107,989 | $ | (8,788,984 | ) | $ | (117,943 | ) | $ | 232,144 | |||||||||||||
Net income | — | — | — | 692,843 | — | — | 692,843 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 6,078 | 6,078 | |||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 40 | — | 9,578 | — | — | — | 9,578 | |||||||||||||||||||||
Stock options exercised | 282 | 3 | 46,062 | — | — | — | 46,065 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (648,930 | ) | — | (648,930 | ) | |||||||||||||||||||
Stock-based compensation | 96 | 1 | 29,775 | — | — | — | 29,776 | |||||||||||||||||||||
Balance December 31, 2021 | 162,084 | $ | 1,621 | $ | 2,114,880 | $ | 7,800,832 | $ | (9,437,914 | ) | $ | (111,865 | ) | $ | 367,554 | |||||||||||||
Balance at Beginning of Period | Additions | Deduction | Balance at End of Period | |||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||
December 31, 2019 | $ | 7,663 | $ | 4,701 | $ | (2,804 | ) | $ | 9,560 | |||||||
December 31, 2018 | $ | 6,109 | $ | 6,333 | $ | (4,779 | ) | $ | 7,663 | |||||||
December 31, 2017 | $ | 5,141 | $ | 3,752 | $ | (2,784 | ) | $ | 6,109 |
Balance at Beginning | Impact of CECL Adoption | Additions | Deductions | Balance at End of Period | ||||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
December 31, 2021 | $ | 14,381 | $ | 0 | $ | 5,380 | $ | (6,533 | ) | $ | 13,228 | |||||||||
December 31, 2020 | $ | 9,560 | $ | 985 | $ | 9,051 | $ | (5,215 | ) | $ | 14,381 | |||||||||
December 31, 2019 | $ | 7,663 | $ | — | $ | 4,701 | $ | (2,804 | ) | $ | 9,560 |
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) | |||||||||||||
Assets: | ||||||||||||||||
Time deposits | $ | 1,642 | $ | — | $ | 1,642 | $ | — | ||||||||
Waters 401(k) Restoration Plan assets | 30,158 | 30,158 | — | — | ||||||||||||
Foreign currency exchange contracts | 16 | — | 16 | — | ||||||||||||
Interest rate cross-currency swap agreements | 4,485 | — | 4,485 | — | ||||||||||||
Total | $ | 36,301 | $ | 30,158 | $ | 6,143 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 2,557 | $ | — | $ | — | $ | 2,557 | ||||||||
Foreign currency exchange contracts | 1,028 | — | 1,028 | — | ||||||||||||
Total | $ | 3,585 | $ | — | $ | 1,028 | $ | 2,557 | ||||||||
Total at December 31, 2021 | Quoted Prices in Active Markets for Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
U.S. Treasury securities | $ | 13,917 | $ | — | $ | 13,917 | $ | — | ||||||||
Corporate debt securities | 39,121 | — | 39,121 | — | ||||||||||||
Time deposits | 19,030 | — | 19,030 | — | ||||||||||||
Waters 401(k) Restoration Plan assets | 38,729 | 38,729 | 0 | — | ||||||||||||
Foreign currency exchange contracts | 504 | — | 504 | — | ||||||||||||
Total | $ | 111,301 | $ | 38,729 | $ | 72,572 | $ | 0 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,347 | $ | — | $ | — | $ | 1,347 | ||||||||
Foreign currency exchange contracts | 195 | — | 195 | — | ||||||||||||
Interest rate cross-currency swap agreements | 5,363 | — | 5,363 | — | ||||||||||||
Total | $ | 6,905 | $ | 0 | $ | 5,558 | $ | 1,347 | ||||||||
Total at December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
U.S. Treasury securities | $ | 164,315 | $ | — | $ | 164,315 | $ | — | ||||||||
Foreign government securities | 3,463 | — | 3,463 | — | ||||||||||||
Corporate debt securities | 723,059 | — | 723,059 | — | ||||||||||||
Time deposits | 108,638 | — | 108,638 | — | ||||||||||||
Waters 401(k) Restoration Plan assets | 33,104 | 33,104 | — | — | ||||||||||||
Foreign currency exchange contracts | 503 | — | 503 | — | ||||||||||||
Interest rate cross-currency swap agreements | 1,093 | 1,093 | ||||||||||||||
Total | $ | 1,034,175 | $ | 33,104 | $ | 1,001,071 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 2,476 | $ | — | $ | — | $ | 2,476 | ||||||||
Foreign currency exchange contracts | 224 | — | 224 | — | ||||||||||||
Total | $ | 2,700 | $ | — | $ | 224 | $ | 2,476 | ||||||||
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) | |||||||||||||
Assets: | ||||||||||||||||
Time deposits | $ | 6,451 | $ | — | $ | 6,451 | $ | — | ||||||||
Waters 401(k) Restoration Plan assets | 38,988 | 38,988 | — | — | ||||||||||||
Foreign currency exchange contracts | 836 | — | 836 | — | ||||||||||||
Total | $ | 46,275 | $ | 38,988 | $ | 7,287 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,185 | $ | — | $ | — | $ | 1,185 | ||||||||
Foreign currency exchange contracts | 185 | — | 185 | — | ||||||||||||
Interest rate cross-currency swap agreements | 44,996 | — | 44,996 | — | ||||||||||||
Total | $ | 46,366 | $ | — | $ | 45,181 | $ | 1,185 | ||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
Other current assets | $ | 119,576 | $ | 16 | $ | 112,212 | $ | 503 | ||||||||
Other current liabilities | $ | 29,495 | $ | 1,028 | $ | 40,175 | $ | 224 | ||||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||
Other assets | $ | 560,000 | $ | 4,485 | $ | 300,000 | $ | 1,093 | ||||||||
Accumulated other comprehensive income | $ | (4,485 | ) | $ | (1,093 | ) |
December 31, 2021 | December 31, 2020 | |||||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
Other current assets | $ | 55,309 | $ | 504 | $ | 66,690 | $ | 836 | ||||||||
Other current liabilities | $ | 9,000 | $ | 195 | $ | 20,000 | $ | 185 | ||||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||
Other liabilities | $ | 230,000 | $ | 5,363 | $ | 560,000 | $ | 44,996 | ||||||||
Accumulated other comprehensive loss | $ | 15,944 | $ | 44,996 |
Financial Statement Classification | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||
Realized (losses) gains on closed contracts | Cost of sales | $ | (3,552 | ) | $ | (6,684 | ) | $ | 3,894 | |||||||
Unrealized (losses) gains on open contracts | Cost of sales | (1,292 | ) | (105 | ) | 1,054 | ||||||||||
Cumulative net pre-tax (losses) gains | Cost of sales | $ | (4,844 | ) | $ | (6,789 | ) | $ | 4,948 | |||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||
Interest earned | Interest income | $ | 11,709 | $ | 2,713 | $ | — | |||||||||
Unrealized gains on open contracts | Stockholders’ ( def i cit equity | $ | 4,485 | $ | 1,093 | $ | — |
Financial Statement Classification | Year Ended December 31, | |||||||||||||
2021 | 2020 | 2019 | ||||||||||||
Foreign currency exchange contracts: | ||||||||||||||
Realized (losses) gains on closed contracts | Cost of sales | $ | (1,973 | ) | $ | 1,444 | $ | (3,552 | ) | |||||
Unrealized (losses) gains on open contracts | Cost of sales | (343 | ) | 1,663 | (1,292 | ) | ||||||||
Cumulative net pre-tax (losses) gains | Cost of sales | $ | (2,316 | ) | $ | 3,107 | $ | (4,844 | ) | |||||
Interest rate cross-currency swap agreements: | ||||||||||||||
Interest earned | Interest income | $ | 11,084 | $ | 15,296 | $ | 11,709 | |||||||
Unrealized gains (losses) on open contracts | Accumulated other | |||||||||||||
comprehensive loss | $ | 29,052 | $ | (44,996 | ) | $ | 4,485 |
Balance at Beginning of Period | Accruals for Warranties | Settlements Made | Balance at End of Period | |||||||||||||
Accrued warranty liability: | ||||||||||||||||
December 31, 2019 | $ | 12,300 | $ | 7,540 | $ | (7,876 | ) | $ | 11,964 | |||||||
December 31, 2018 | $ | 13,026 | $ | 5,033 | $ | (5,759 | ) | $ | 12,300 | |||||||
December 31, 2017 | $ | 13,391 | $ | 8,746 | $ | (9,111 | ) | $ | 13,026 |
Balance at Beginning of Period | Accruals for Warranties | Settlements Made | Balance at End of Period | |||||||||||||
Accrued warranty liability: | ||||||||||||||||
December 31, 2021 | $ | 10,950 | $ | 8,799 | $ | (9,031 | ) | $ | 10,718 | |||||||
December 31, 2020 | $ | 11,964 | $ | 7,909 | $ | (8,923 | ) | $ | 10,950 | |||||||
December 31, 2019 | $ | 12,300 | $ | 7,540 | $ | (7,876 | ) | $ | 11,964 |
December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Balance at the beginning of the period | $ | 204,257 | $ | 192,589 | $ | 173,780 | ||||||
Recognition of revenue included in balance at beginning of the period | (176,981 | ) | (159,258 | ) | (143,589 | ) | ||||||
Revenue deferred during the period, net of revenue recognized | 186,419 | 170,926 | 162,398 | |||||||||
Balance at the end of the period | $ | 213,695 | $ | 204,257 | $ | 192,589 | ||||||
December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Balance at the beginning of the period | $ | 239,759 | $ | 213,695 | $ | 204,257 | ||||||
Recognition of revenue included in balance at beginning of the period | (216,920 | ) | (198,209 | ) | (176,981 | ) | ||||||
Revenue deferred during the period, net of revenue recognized | 250,759 | 224,273 | 186,419 | |||||||||
Balance at the end of the period | $ | 273,598 | $ | 239,759 | $ | 213,695 | ||||||
December 31, 2019 | ||||
Deferred revenue and customer advances expected to be recognized in: | ||||
One year or less | $ | 176,360 | ||
13-24 months | 21,029 | |||
25 months and beyond | 16,306 | |||
Total | $ | 213,695 | ||
December 31, 2021 | ||||
Deferred revenue and customer advances expected to be recognized in: | ||||
One year or less | $ | 227,561 | ||
13-24 months | 26,840 | |||
25 months and beyond | 19,197 | |||
Total | $ | 273,598 | ||
December 31, 2019 | ||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | |||||||||||||
Time deposits | $ | 1,642 | $ | — | $ | — | $ | 1,642 | ||||||||
Total | $ | 1,642 | $ | — | $ | — | $ | 1,642 | ||||||||
Amounts included in: | ||||||||||||||||
Cash equivalents | $ | 213 | $ | — | $ | — | $ | 213 | ||||||||
Investments | 1,429 | — | — | 1,429 | ||||||||||||
Total | $ | 1,642 | $ | — | $ | — | $ | 1,642 | ||||||||
December 31, 2021 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gain | Loss | Value | |||||||||||||
U.S. Treasury securities | $ | 13,929 | $ | 0 | $ | (12 | ) | $ | 13,917 | |||||||
Corporate debt securities | 39,135 | 0 | (14 | ) | 39,121 | |||||||||||
Time deposits | 19,030 | — | — | 19,030 | ||||||||||||
Total | $ | 72,094 | $ | 0 | $ | (26 | ) | $ | 72,068 | |||||||
Amounts included in: | ||||||||||||||||
Cash equivalents | $ | 4,017 | $ | — | $ | — | $ | 4,017 | ||||||||
Investments | 68,077 | 0 | (26 | ) | 68,051 | |||||||||||
Total | $ | 72,094 | $ | 0 | $ | (26 | ) | $ | 72,068 | |||||||
December 31, 2018 | December 31, 2020 | |||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 164,619 | $ | 16 | $ | (320 | ) | $ | 164,315 | |||||||||||||||||||||||
Foreign government securities | 3,486 | 1 | (24 | ) | 3,463 | |||||||||||||||||||||||||||
Corporate debt securities | 725,778 | 41 | (2,760 | ) | 723,059 | |||||||||||||||||||||||||||
Cost | Gain | Loss | Value | |||||||||||||||||||||||||||||
Time deposits | 108,638 | — | — | 108,638 | 6,451 | — | — | 6,451 | ||||||||||||||||||||||||
Total | $ | 1,002,521 | $ | 58 | $ | (3,104 | ) | $ | 999,475 | $ | 6,451 | $ | — | $ | — | $ | 6,451 | |||||||||||||||
Amounts included in: | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 60,532 | $ | — | $ | (1 | ) | $ | 60,531 | |||||||||||||||||||||||
Investments | 941,989 | 58 | (3,103 | ) | 938,944 | 6,451 | — | — | 6,451 | |||||||||||||||||||||||
Total | $ | 1,002,521 | $ | 58 | $ | (3,104 | ) | $ | 999,475 | $ | 6,451 | $ | — | $ | — | $ | 6,451 | |||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||
Due in one year or less | $ | 1,642 | $ | 797,649 | ||||
Due after one year through three years | — | 201,826 | ||||||
Total | $ | 1,642 | $ | 999,475 | ||||
December 31, 2021 | December 31, 2020 | |||||||
Due in one year or less | $ | 71,066 | $ | 6,451 | ||||
Due after one year through three years | 1,002 | — | ||||||
Total | $ | 72,068 | $ | 6,451 | ||||
December 31, 2019 | December 31, 2018 | |||||||
Raw materials | $ | 126,850 | $ | 111,641 | ||||
Work in progress | 15,457 | 15,552 | ||||||
Finished goods | 178,244 | 164,376 | ||||||
Total inventories | $ | 320,551 | $ | 291,569 | ||||
December 31, 2021 | December 31, 2020 | |||||||
Raw materials | $ | 165,240 | $ | 133,490 | ||||
Work in progress | 19,726 | 18,678 | ||||||
Finished goods | 171,129 | 152,113 | ||||||
Total inventories | $ | 356,095 | $ | 304,281 | ||||
December 31, | ||||||||
2019 | 2018 | |||||||
Land and land improvements | $ | 37,040 | $ | 36,554 | ||||
Buildings and leasehold improvements | 355,425 | 299,103 | ||||||
Production and other equipment | 537,211 | 494,302 | ||||||
Construction in progress | 57,985 | 41,909 | ||||||
Total property, plant and equipment | 987,661 | 871,868 | ||||||
Less: accumulated depreciation and amortization | (570,319 | ) | (528,785 | ) | ||||
Property, plant and equipment, net | $ | 417,342 | $ | 343,083 | ||||
December 31, | ||||||||
2021 | 2020 | |||||||
Land and land improvements | $ | 36,428 | $ | 36,884 | ||||
Buildings and leasehold improvements | 446,061 | 376,705 | ||||||
Production and other equipment | 621,792 | 588,625 | ||||||
Construction in progress | 117,148 | 125,925 | ||||||
Total property, plant and equipment | 1,221,429 | 1,128,139 | ||||||
Less: accumulated depreciation and amortization | (673,516 | ) | (634,136 | ) | ||||
Property, plant and equipment, net | $ | 547,913 | $ | 494,003 | ||||
Cash | $ | 713 | ||
Accounts receivable and current other assets | 806 | |||
Inventory | 669 | |||
Prepaid and other assets | 611 | |||
Property, plant and equipment, net | 757 | |||
Operating lease assets | 847 | |||
Intangible assets | 6,960 | |||
Goodwill | 71,632 | |||
Total assets acquired | 82,995 | |||
Accrued expenses and other liabilities | 2,093 | |||
Total consideration | 80,902 | |||
Fair value of minority investment | 3,525 | |||
Cash consideration paid | $ | 77,377 | ||
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | |||||||||||||||||||
Capitalized software | $ | 481,986 | $ | 333,255 | 5 years | $ | 454,307 | $ | 307,634 | 5 years | ||||||||||||||
Purchased intangibles | 200,523 | 151,722 | 11 years | 201,566 | 144,184 | 11 years | ||||||||||||||||||
Trademarks and IPR&D | 13,782 | — | — | 13,677 | — | — | ||||||||||||||||||
Licenses | 5,669 | 5,298 | 6 years | 5,568 | 4,875 | 6 years | ||||||||||||||||||
Patents and other intangibles | 83,035 | 54,517 | 8 years | 77,753 | 49,276 | 8 years | ||||||||||||||||||
Total | $ | 784,995 | $ | 544,792 | 7 years | $ | 752,871 | $ | 505,969 | 7 years | ||||||||||||||
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | |||||||||||||||||||
Capitalized software | $ | 575,658 | $ | 420,862 | 5 years | $ | 584,452 | $ | 409,847 | 5 years | ||||||||||||||
Purchased intangibles | 201,302 | 163,752 | 11 years | 205,585 | 160,342 | 11 years | ||||||||||||||||||
Trademarks | 9,680 | — | — | 9,680 | — | — | ||||||||||||||||||
Licenses | 12,635 | 6,199 | 7 years | 5,923 | 5,697 | 6 years | ||||||||||||||||||
Patents and other intangibles | 102,353 | 68,414 | 8 years | 90,699 | 61,808 | 8 years | ||||||||||||||||||
Total | $ | 901,628 | $ | 659,227 | 7 years | $ | 896,339 | $ | 637,694 | 7 years | ||||||||||||||
Senior | Face Value | |||||||||||||||
Unsecured Notes | Term | Interest Rate | (in millions) | Maturity Date | ||||||||||||
Series L | 7 years | 3.31 | % | $ | 200 | September 2026 | ||||||||||
Series M | 10 years | 3.53 | % | $ | 300 | September 2029 |
Senior Unsecured Notes | Term | Interest Rate | Face Value (in millions) | Maturity Date | ||||||||||||
Series N | 5 years | 1.68 | % | $ | 100 | March 2026 | ||||||||||
Series O | 10 years | 2.25 | % | $ | 400 | March 2031 |
December 31, 2021 | December 31, 2020 | |||||||
Senior unsecured notes - Series E - 3.97%, due March 2021 | 0 | 50,000 | ||||||
Senior unsecured notes - Series F - 3.40%, due June 2021 | 0 | 100,000 | ||||||
Total notes payable and debt, current | 0 | 150,000 | ||||||
Senior unsecured notes - Series G - 3.92%, due June 2024 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series H - floating rate*, due June 2024 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series I - 3.13%, due May 2023 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series K - 3.44%, due May 2026 | 160,000 | 160,000 | ||||||
Senior unsecured notes - Series L - 3.31%, due September 2026 | 200,000 | 200,000 | ||||||
Senior unsecured notes - Series M - 3.53%, due September 2029 | 300,000 | 300,000 | ||||||
Senior unsecured notes - Series N - 1.68%, due March 2026 | 100,000 | — | ||||||
Senior unsecured notes - Series O - 2.25%, due March 2031 | 400,000 | — | ||||||
Credit agreement | 210,000 | 400,000 | ||||||
Unamortized debt issuance costs | (6,130 | ) | (3,485 | ) | ||||
Total long-term debt | 1,513,870 | 1,206,515 | ||||||
Total debt | $ | 1,513,870 | $ | 1,356,515 | ||||
* | Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. |
December 31, 2019 | December 31, 2018 | |||||||
Foreign subsidiary lines of credit | $ | 366 | $ | 178 | ||||
Senior unsecured notes - Series B - 5.00%, due February 2020 | 100,000 | — | ||||||
Total notes payable and debt, current | 100,366 | 178 | ||||||
Senior unsecured notes - Series B - 5.00%, due February 2020 | — | 100,000 | ||||||
Senior unsecured notes - Series E - 3.97%, due March 2021 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series F - 3.40%, due June 2021 | 100,000 | 100,000 | ||||||
Senior unsecured notes - Series G - 3.92%, due June 2024 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series H - floating rate*, due June 2024 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series I - 3.13%, due May 2023 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series K - 3.44%, due May 2026 | 160,000 | 160,000 | ||||||
Senior unsecured notes - Series L - 3.31%, due September 2026 | 200,000 | — | ||||||
Senior unsecured notes - Series M - 3.53%, due September 2029 | 300,000 | — | ||||||
Credit agreement | 625,000 | 590,000 | ||||||
Unamortized debt issuance costs | (4,203 | ) | (1,828 | ) | ||||
Total long-term debt | 1,580,797 | 1,148,172 | ||||||
Total debt | $ | 1,681,163 | $ | 1,148,350 | ||||
* Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. |
Total | ||||
2022 | $ | 0 | ||
2023 | 50,000 | |||
2024 | 100,000 | |||
2025 | 0 | |||
2026 | 670,000 | |||
Thereafter | 700,000 | |||
Total | $ | 1,520,000 | ||
Total | ||||
2020 | $ | 100,366 | ||
2021 | 150,000 | |||
2022 | 625,000 | |||
2023 | 50,000 | |||
2024 | 100,000 | |||
Thereafter | 660,000 | |||
Total | $ | 1,685,366 | ||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
The components of income from operations before income taxes are as follows: | ||||||||||||
Domestic | $ | 97,325 | $ | 57,822 | $ | 55,751 | ||||||
Foreign | 580,914 | 624,324 | 585,346 | |||||||||
Total | $ | 678,239 | $ | 682,146 | $ | 641,097 | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
The components of the income tax provision from operations were as follows: | ||||||||||||
Federal | $ | 7,009 | $ | 27,277 | $ | 499,828 | ||||||
State | 3,329 | (11,964 | ) | 21,163 | ||||||||
Foreign | 66,083 | 70,634 | 54,285 | |||||||||
Total current tax provision | $ | 76,421 | $ | 85,947 | $ | 575,276 | ||||||
Federal | $ | 6,913 | $ | (3,256 | ) | $ | 35,949 | |||||
Stat e | 1,253 | 2,247 | 5,398 | |||||||||
Foreign | 1,454 | 3,414 | 4,163 | |||||||||
Total deferred tax provision | 9,620 | 2,405 | 45,510 | |||||||||
Total provision | $ | 86,041 | $ | 88,352 | $ | 620,786 | ||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
The components of income before income taxes are as follows: | ||||||||||||
Domestic | $ | 144,410 | $ | 75,193 | $ | 97,325 | ||||||
Foreign | 661,783 | 535,721 | 580,914 | |||||||||
Total | $ | 806,193 | $ | 610,914 | $ | 678,239 | ||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
The components of the income tax provision were as follows: | ||||||||||||
Federal | $ | 16,302 | $ | 28,385 | $ | 7,009 | ||||||
State | 3,691 | 4,243 | 3,329 | |||||||||
Foreign | 76,724 | 59,408 | 66,083 | |||||||||
Total current tax provision | $ | 96,717 | $ | 92,036 | $ | 76,421 | ||||||
Federal | $ | 10,491 | $ | (8,244 | ) | $ | 6,913 | |||||
State | 345 | (506 | ) | 1,253 | ||||||||
Foreign | 5,797 | 6,057 | 1,454 | |||||||||
Total deferred tax provision | 16,633 | (2,693 | ) | 9,620 | ||||||||
Total provision | $ | 113,350 | $ | 89,343 | $ | 86,041 | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Federal tax computed at U.S. statutory income tax rate | $ | 142,430 | $ | 143,251 | $ | 224,384 | ||||||
Enactment of the 2017 Tax Cuts and Jobs Act | — | (6,059 | ) | 550,000 | ||||||||
Foreign currency exchange impact on distributed earnings | (3,229 | ) | 7,495 | — | ||||||||
GILTI, net of foreign tax credits | 10,523 | 13,727 | — | |||||||||
Settlement of tax audits | — | — | 706 | |||||||||
State income tax, net of federal income tax benefit | 3,459 | 2,910 | 1,289 | |||||||||
Net effect of foreign operations | (52,727 | ) | (57,003 | ) | (131,694 | ) | ||||||
Effect of stock-based compensation | (9,211 | ) | (9,089 | ) | (19,566 | ) | ||||||
Other, net | (5,204 | ) | (6,880 | ) | (4,333 | ) | ||||||
Provision for income taxes | $ | 86,041 | $ | 88,352 | $ | 620,786 | ||||||
Year Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Federal tax computed at U.S. statutory income tax rate | $ | 169,300 | $ | 128,292 | $ | 142,430 | ||||||
Foreign currency exchange impact on distributed earnings | — | — | (3,229 | ) | ||||||||
GILTI, net of foreign tax credits | 10,476 | 13,319 | 10,523 | |||||||||
State income tax, net of federal income tax benefit | 4,036 | 2,415 | 3,459 | |||||||||
Net effect of foreign operations | (54,566 | ) | (48,962 | ) | (52,727 | ) | ||||||
Effect of stock-based compensation | (6,682 | ) | (6,798 | ) | (9,211 | ) | ||||||
Other, net | (9,214 | ) | 1,077 | (5,204 | ) | |||||||
�� | ||||||||||||
Provision for income taxes | $ | 113,350 | $ | 89,343 | $ | 86,041 | ||||||
December 31, | ||||||||
2019 | 2018 | |||||||
Deferred tax assets: | ||||||||
Net operating losses and credits | $ | 55,939 | $ | 63,052 | ||||
Depreciation | 4,776 | 7,495 | ||||||
Operating leases | 19,849 | — | ||||||
Amortization | 3,738 | 3,633 | ||||||
Stock-based compensation | 9,790 | 9,984 | ||||||
Deferred compensation | 20,077 | 22,058 | ||||||
Unrealized foreign currency gain/loss | 7,955 | 5,881 | ||||||
Deferred revenue | 9,696 | 4,654 | ||||||
Revaluation of equity investments and licenses | 3,424 | 3,148 | ||||||
Inventory | 4,824 | 4,588 | ||||||
Accrued liabilities and reserves | 7,215 | 7,213 | ||||||
Other | 3,839 | 4,073 | ||||||
Total deferred tax assets | 151,122 | 135,779 | ||||||
Valuation allowance | (51,221 | ) | (53,893 | ) | ||||
Deferred tax assets, net of valuation allowance | 99,901 | 81,886 | ||||||
Deferred tax liabilities: | ||||||||
Capitalized software | (21,025 | ) | (19,491 | ) | ||||
Operating leases | (19,553 | ) | — | |||||
Indefinite-lived intangibles | (14,363 | ) | (13,753 | ) | ||||
Deferred tax liability on foreign earning s | (18,027 | ) | (20,443 | ) | ||||
Total deferred tax liabilities | (72,968 | ) | (53,687 | ) | ||||
Net deferred tax assets | $ | 26,933 | $ | 28,199 | ||||
December 31, | ||||||||
2021 | 2020 | |||||||
Deferred tax assets: | ||||||||
Net operating losses and credits | $ | 55,813 | $ | 61,962 | ||||
Depreciation | 0 | 5,701 | ||||||
Operating leases | 19,288 | 24,317 | ||||||
Amortization | 2,316 | 2,377 | ||||||
Stock-based compensation | 8,074 | 7,773 | ||||||
Deferred compensation | 30,105 | 27,754 | ||||||
Deferred revenue | 10,997 | 11,341 | ||||||
Revaluation of equity investments and licenses | 3,083 | 4,492 | ||||||
Inventory | 5,405 | 5,060 | ||||||
Accrued liabilities and reserves | 6,675 | 10,639 | ||||||
Unrealized foreign currency gain/loss | 2,266 | 0 | ||||||
Other | 6,713 | 3,483 | ||||||
Total deferred tax assets | 150,735 | 164,899 | ||||||
Valuation allowance | (58,834 | ) | (60,101 | ) | ||||
Deferred tax assets, net of valuation allowance | 91,901 | 104,798 | ||||||
Deferred tax liabilities: | ||||||||
Capitalized software | (24,357 | ) | (23,748 | ) | ||||
Operating leases | (19,251 | ) | (24,314 | ) | ||||
Indefinite-lived intangibles | (15,534 | ) | (14,973 | ) | ||||
Unrealized foreign currency gain/loss | 0 | (10,819 | ) | |||||
Depreciation | (3,481 | ) | 0 | |||||
Deferred tax liability on foreign earnings | (17,283 | ) | (17,277 | ) | ||||
Total deferred tax liabilities | (79,906 | ) | (91,131 | ) | ||||
Net deferred tax assets | $ | 11,995 | $ | 13,667 | ||||
2019 | 2018 | 2017 | ||||||||||
Balance at the beginning of the period | $ | 26,108 | $ | 5,843 | $ | 9,964 | ||||||
Net reductions for settlement of tax audits | — | — | (22 | ) | ||||||||
Net reductions for lapse of statutes taken during the period | (261 | ) | (436 | ) | (5,178 | ) | ||||||
Net additions for tax positions taken during the prior period | — | 17,651 | — | |||||||||
Net additions for tax positions taken during the current period | 1,943 | 3,050 | 1,079 | |||||||||
Balance at the end of the period | $ | 27,790 | $ | 26,108 | $ | 5,843 | ||||||
2021 | 2020 | 2019 | ||||||||||
Balance at the beginning of the period | $ | 28,666 | $ | 27,790 | $ | 26,108 | ||||||
Net reductions for settlement of tax audits | (1,300 | ) | (399 | ) | — | |||||||
Net reductions for lapse of statutes taken during the period | (433 | ) | (684 | ) | (261 | ) | ||||||
Net additions for tax positions taken during the current period | 1,759 | 1,959 | 1,943 | |||||||||
Balance at the end of the period | $ | 28,692 | $ | 28,666 | $ | 27,790 | ||||||
Balance at Beginning of Period | Charged to Provision for Income Taxes* | Other** | Balance at End of Period | |||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||
2019 | $ | 53,893 | $ | (1,242 | ) | $ | (1,430 | ) | $ | 51,221 | ||||||
2018 | $ | 62,098 | $ | (2,128 | ) | $ | (6,077 | ) | $ | 53,893 | ||||||
201 7 | $ | 61,225 | $ | (6,363 | ) | $ | 7,236 | $ | 62,098 |
Balance at Beginning of Period | Charged to Provision for Income Taxes* | Other** | Balance at End of Period | |||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||
2021 | $ | 60,101 | $ | 2,919 | $ | (4,186 | ) | $ | 58,834 | |||||||
2020 | $ | 51,221 | $ | 1,137 | $ | 7,743 | $ | 60,101 | ||||||||
2019 | $ | 53,893 | $ | (1,242 | ) | $ | (1,430 | ) | $ | 51,221 |
* | These amounts have been recorded as part of the income statement provision for income taxes. The income statement effects of these amounts have largely been offset by amounts related to changes in other deferred tax balance sheet accounts. |
** | The change in the valuation allowance during the year ended December 31, |
Financial Statement Classification | December 31, 2019 | |||||
Assets: | ||||||
Property operating lease assets | Operating lease assets | $ | 64,206 | |||
Automobile operating lease assets | Operating lease assets | 27,197 | ||||
Equipment operating lease assets | Operating lease assets | 1,955 | ||||
Total lease assets | $ | 93,358 | ||||
Liabilities: | ||||||
Current operating lease liabilities | Current operating lease liabilities | $ | 27,125 | |||
Long-term operating lease liabilities | Long-term operating lease liabilities | 66,881 | ||||
Total lease liabilities | $ | 94,006 | ||||
December 31, | ||||||||||
Financial Statement Classification | 2021 | 2020 | ||||||||
Assets: | ||||||||||
Property operating lease assets | Operating lease assets | $ | 55,774 | $ | 62,374 | |||||
Automobile operating lease assets | Operating lease assets | 28,236 | 29,694 | |||||||
Equipment operating lease assets | Operating lease assets | 724 | 1,184 | |||||||
Total lease assets | $ | 84,734 | $ | 93,252 | ||||||
Liabilities: | ||||||||||
Current operating lease liabilities | Current operating lease liabilities | $ | 27,906 | $ | 27,764 | |||||
Long-term operating lease liabilities | Long-term operating lease liabilities | 59,623 | 68,197 | |||||||
Total lease liabilities | $ | 87,529 | $ | 95,961 | ||||||
2020 | $ | 29,489 | ||
2021 | 21,774 | |||
2022 | 16,743 | |||
2023 | 9,175 | |||
2024 | 6,867 | |||
2025 and thereafter | 19,311 | |||
Total future minimum lease payments | 103,359 | |||
Less: amount of lease payments representing interest | (9,353 | ) | ||
Present value of future minimum lease payments | 94,006 | |||
Less: current operating lease liabilities | (27,125 | ) | ||
Long-term operating lease liabilities | $ | 66,881 | ||
2019 | $ | 28,417 | ||
2020 | 23,424 | |||
2021 | 16,032 | |||
2022 | 11,816 | |||
2023 and thereafter | 23,269 | |||
Total future minimum lease payments | $ | 102,958 | ||
2022 | $ | 29,311 | ||
2023 | 20,763 | |||
2024 | 14,688 | |||
2025 | 10,642 | |||
2026 | 7,107 | |||
2027 and thereafter | 11,072 | |||
Total future minimum lease payments | 93,583 | |||
Less: amount of lease payments representing interest | (6,054 | ) | ||
Present value of future minimum lease payments | 87,529 | |||
Less: current operating lease liabilities | (27,906 | ) | ||
Long-term operating lease liabilities | $ | 59,623 | ||
2019 | 2018 | 2017 | ||||||||||
Cost of sales | $ | 2,271 | $ | 2,212 | $ | 3,032 | ||||||
Selling and administrative expenses | 30,907 | 30,443 | 33,335 | |||||||||
Research and development expenses | 5,399 | 4,886 | 3,069 | |||||||||
Total stock-based compensation | $ | 38,577 | $ | 37,541 | $ | 39,436 | ||||||
2021 | 2020 | 2019 | ||||||||||
Cost of sales | $ | 2,500 | $ | 2,485 | $ | 2,271 | ||||||
Selling and administrative expenses | 21,727 | 29,711 | 30,907 | |||||||||
Research and development expenses | 5,691 | 4,669 | 5,399 | |||||||||
Total stock-based compensation | $ | 29,918 | $ | 36,865 | $ | 38,577 | ||||||
Options Issued and Significant Assumptions Used to Estimate Option Fair Values | 2019 | 2018 | 2017 | |||||||||
Options issued in thousands | 146 | 321 | 389 | |||||||||
Risk-free interest rate | 2.5 | % | 2.7 | % | 2.2 | % | ||||||
Expected life in years | 5 | 6 | 6 | |||||||||
Expected volatility | 24.5 | % | 25.3 | % | 22.7 | % | ||||||
Expected dividends | — | — | — |
Options Issued and Significant Weighted-Average Assumptions Used to Estimate Option Fair Values | 2021 | 2020 | 2019 | |||||||||
Options issued in thousands | 160 | 267 | 146 | |||||||||
Risk-free interest rate | 0.8 | % | 1.2 | % | 2.5 | % | ||||||
Expected life in years | 6 | 6 | 5 | |||||||||
Expected volatility | 32.4 | % | 27.8 | % | 24.5 | % | ||||||
Expected dividends | 0 | — | — |
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | 2019 | 2018 | 2017 | |||||||||
Exercise price | $ | 230.37 | $ | 196.78 | $ | 170.24 | ||||||
Fair value | $ | 61.75 | $ | 59.89 | $ | 45.73 |
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | 2021 | 2020 | 2019 | |||||||||
Exercise price | $ | 281.33 | $ | 215.12 | $ | 230.37 | ||||||
Fair value | $ | 91.48 | $ | 63.14 | $ | 61.75 |
Number of Shares | Exercise Price per Share | Weighted- Average Exercise Price per Share | ||||||||||||||||||
Outstanding at December 31, 2018 | 1,790 | $ | 38.09 | to | $ | 208.47 | $ | 142.47 | ||||||||||||
Granted | 146 | $ | 183.41 | to | $ | 238.52 | $ | 230.37 | ||||||||||||
Exercised | (406 | ) | $ | 38.09 | to | $ | 208.47 | $ | 113.06 | |||||||||||
Canceled | (75 | ) | $ | 113.36 | to | $ | 238.52 | $ | 159.67 | |||||||||||
Outstanding at December 31, 2019 | 1,455 | $ | 61.63 | to | $ | 238.52 | $ | 158.61 | ||||||||||||
Number of Shares | Exercise Price per Share | Weighted- Average Exercise Price per Share | ||||||||||||||||||
Outstanding at December 31, 2020 | 1,067 | $ | 75.94 | to | $ | 238.52 | $ | 179.59 | ||||||||||||
Granted | 160 | $ | 250.15 | to | $ | 371.64 | $ | 281.33 | ||||||||||||
Exercised | (282 | ) | $ | 75.94 | to | $ | 238.52 | $ | 165.29 | |||||||||||
Canceled | (254 | ) | $ | 139.51 | to | $ | 280.80 | $ | 198.05 | |||||||||||
Outstanding at December 31, 2021 | 691 | $ | 88.71 | to | $ | 371.64 | $ | 202.24 | ||||||||||||
Exercise Price Range | Number of Shares Outstanding | Weighted- Average Exercise Price | Remaining Contractual Life of Options Outstanding | Number of Shares Exercisable | Weighted- Average Exercise Price | |||||||||||||||
$61.63 to $128.93 | 529 | $ | 117.10 | 5.1 | 430 | $ | 114.85 | |||||||||||||
$128.94 to $192.62 | 520 | $ | 160.06 | 7.7 | 208 | $ | 149.37 | |||||||||||||
$192.63 to $238.52 | 406 | $ | 210.84 | 8.2 | 91 | $ | 196.83 | |||||||||||||
Total | 1,455 | $ | 158.61 | 6.9 | 729 | $ | 134.94 | |||||||||||||
Exercise Price Range | Number of Shares Outstanding | Weighted- Average Exercise Price | Remaining Contractual Life of Options Outstanding | Number of Shares Exercisable | Weighted- Average Exercise Price | |||||||||||||||
$88.71 to $194.2 5 | 232 | $ | 135.77 | 4.3 | 213 | $ | 133.11 | |||||||||||||
$194.2 6 to $224.37 | 232 | $ | 206.51 | 7.4 | 84 | $ | 204.73 | |||||||||||||
$224.38 to $371.64 | 227 | $ | 265.81 | 8.4 | 34 | $ | 237.24 | |||||||||||||
Total | 691 | $ | 202.24 | 6.7 | 331 | $ | 162.09 | |||||||||||||
Shares | Weighted-Average Grant Fair Dat e Value per | |||||||
Unvested at December 31, 2018 | 304 | $ | 153.31 | |||||
Granted | 86 | $ | 235.31 | |||||
Vested | (104 | ) | $ | 139.07 | ||||
Forfeited | (26 | ) | $ | 167.60 | ||||
Unvested at December 31, 2019 | 260 | $ | 184.70 | |||||
Shares | Weighted-Average Grant Date Fair Value per Share | |||||||
Unvested at December 31, 2020 | 271 | $ | 202.00 | |||||
Granted | 88 | $ | 283.10 | |||||
Vested | (88 | ) | $ | 184.60 | ||||
Forfeited | (26 | ) | $ | 224.71 | ||||
Unvested at December 31, 2021 | 245 | $ | 234.97 | |||||
Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values | 2019 | 2018 | 2017 | |||||||||
Performance stock units issued in thousands | 13 | 40 | 40 | |||||||||
Risk-free interest rate | 2.4 | % | 2.4 | % | 1.6 | % | ||||||
Expected life in years | 2.8 | 3.0 | 3.0 | |||||||||
Expected volatility | 23.5 | % | 22.0 | % | 20.9 | % | ||||||
Average volatility of peer companies | 26.2 | % | 25.9 | % | 25.6 | % | ||||||
Correlation Coefficient | 34.2 | % | 35.9 | % | 37.8 | % | ||||||
Expected dividends | — | — | — |
Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values | 2021 | 2020 | 2019 | |||||||||
Performance stock units issued in thousands | 41 | 58 | 13 | |||||||||
Risk-free interest rate | 0.2 | % | 1.3 | % | 2.4 | % | ||||||
Expected life in years | 2.9 | 2.9 | 2.8 | |||||||||
Expected volatility | 38.7 | % | 25.1 | % | 23.5 | % | ||||||
Average volatility of peer companies | 34.7 | % | 26.1 | % | 26.2 | % | ||||||
Correlation Coefficient | 45.8 | % | 36.6 | % | 34.2 | % | ||||||
Expected dividends | 0 | — | — |
Shares | Weighted-Average Fair Value per Share | |||||||
Unvested at December 31, 2018 | 100 | $ | 212.34 | |||||
Granted | 13 | $ | 372.68 | |||||
Forfeited | (8 | ) | $ | 200.26 | ||||
Unvested at December 31, 2019 | 105 | $ | 233.11 | |||||
Shares | Weighted-Average Fair Value per Share | |||||||
Unvested at December 31, 2020 | 95 | $ | 230.36 | |||||
Granted | 41 | $ | 315.98 | |||||
Vested | (5 | ) | $ | 242.94 | ||||
Forfeited | (44 | ) | $ | 199.22 | ||||
Unvested at December 31, 2021 | 87 | $ | 285.73 | |||||
Year Ended December 31, 2019 | ||||||||||||
Net Income | Weighted-Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
Net income per basic common share | $ | 592,198 | 67,627 | $ | 8.76 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 539 | (0.07 | ) | ||||||||
Net income per diluted common share | $ | 592,198 | 68,166 | $ | 8.69 | |||||||
Year Ended December 31, 2021 | ||||||||||||
Net Income | Weighted-Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
Net income per basic common share | $ | 692,843 | 61,575 | $ | 11.25 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 453 | (0.08 | ) | ||||||||
Net income per diluted common share | $ | 692,843 | 62,028 | $ | 11.17 | |||||||
Year Ended December 31, 2020 | ||||||||||||
Net Income | Weighted-Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
Net income per basic common share | $ | 521,571 | 62,094 | $ | 8.40 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 320 | (0.04 | ) | ||||||||
Net income per diluted common share | $ | 521,571 | 62,414 | $ | 8.36 | |||||||
Year Ended December 31, 2018 | ||||||||||||
Net Income | Weighted-Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
Net income per basic common share | $ | 593,794 | 76,992 | $ | 7.71 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 626 | (0.06 | ) | ||||||||
Net income per diluted common share | $ | 593,794 | 77,618 | $ | 7.65 | |||||||
Year Ended December 31, 2017 | ||||||||||||
Net Income | Weighted-Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
Net income per basic common share | $ | 20,311 | 79,793 | $ | 0.25 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 811 | — | |||||||||
Net income per diluted common share | $ | 20,311 | 80,604 | $ | 0.25 | |||||||
Year Ended December 31, 2019 | ||||||||||||
Net Income | Weighted-Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
Net income per basic common share | $ | 592,198 | 67,627 | $ | 8.76 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 539 | (0.07 | ) | ||||||||
Net income per diluted common share | $ | 592,198 | 68,166 | $ | 8.69 | |||||||
Currency Translation | Unrealized Gain (Loss) on Retirement Plans | Unrealized Gain (Loss) on Investments | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Balance at December 31, 2017 | $ | (69,418 | ) | $ | (37,103 | ) | $ | (3,546 | ) | $ | (110,067 | ) | ||||
Other comprehensive (loss) income, net of tax | (36,279 | ) | 27,234 | 1,141 | (7,904 | ) | ||||||||||
Balance at December 31, 2018 | $ | (105,697 | ) | $ | (9,869 | ) | $ | (2,405 | ) | $ | (117,971 | ) | ||||
Other comprehensive income (loss), net of tax | 1,631 | (5,536 | ) | 2,405 | (1,500 | ) | ||||||||||
Balance at December 31, 2019 | $ | (104,066 | ) | $ | (15,405 | ) | $ | — | $ | (119,471 | ) | |||||
Currency Translation | Unrealized Gain (Loss) on Retirement Plans | Unrealized Loss on Investments | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at December 31, 2019 | $ | (104,066 | ) | $ | (15,405 | ) | $ | 0 | $ | (119,471 | ) | |||||
Other comprehensive income (loss), net of tax | 5,984 | (4,456 | ) | 0 | 1,528 | |||||||||||
Balance at December 31, 2020 | $ | (98,082 | ) | $ | (19,861 | ) | $ | 0 | $ | (117,943 | ) | |||||
Other comprehensive income (loss), net of tax | (1,903 | ) | 8,001 | (20 | ) | 6,078 | ||||||||||
Balance at December 31, 2021 | $ | (99,985 | ) | $ | (11,860 | ) | $ | (20 | ) | $ | (111,865 | ) | ||||
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 | |||||||||||||||||||
Projected benefit obligation, January 1 | $ | 972 | $ | 17,724 | $ | 93,722 | $ | 168,064 | $ | 17,121 | $ | 96,378 | ||||||||||||
Service cost | — | 499 | 4,339 | 568 | 566 | 5,368 | ||||||||||||||||||
Employee contributions | — | 1,214 | 499 | — | 1,159 | 622 | ||||||||||||||||||
Interest cost | 29 | 777 | 1,735 | 6,491 | 636 | 1,707 | ||||||||||||||||||
Actuarial (gains) losses | (32 | ) | 2,081 | 13,385 | 6,415 | (621 | ) | (2,274 | ) | |||||||||||||||
Benefits paid | — | (1,109 | ) | (3,281 | ) | (3,416 | ) | (1,007 | ) | (3,277 | ) | |||||||||||||
Plan amendments | — | — | — | — | (130 | ) | (44 | ) | ||||||||||||||||
Plan settlements | (969 | ) | — | (7,407 | ) | (177,150 | ) | — | (2,791 | ) | ||||||||||||||
Other plans | — | — | 1,598 | — | — | 1,063 | ||||||||||||||||||
Currency impact | — | — | (1,224 | ) | — | — | (3,030 | ) | ||||||||||||||||
Projected benefit obligation, December 31 | $ | — | $ | 21,186 | $ | 103,366 | $ | 972 | $ | 17,724 | $ | 93,722 | ||||||||||||
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 | |||||||||||||||||||
Accumulated benefit obligation | $ | — | ** | $ | 88,105 | $ | 972 | ** | $ | 82,026 |
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 | ||||||||
92 |
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 | |||||||||||||||||||
Fair value of plan assets, January 1 | $ | — | $ | 11,080 | $ | 81,587 | $ | 171,373 | $ | 11,125 | $ | 74,990 | ||||||||||||
Actual return on plan assets | — | 2,140 | 6,237 | 2,555 | (584 | ) | 1,070 | |||||||||||||||||
Company contributions | 969 | 448 | 6,103 | 6,625 | 387 | 10,778 | ||||||||||||||||||
Employee contributions | — | 1,214 | 499 | — | 1,159 | 622 | ||||||||||||||||||
Plan settlements | (969 | ) | — | (7,044 | ) | (177,137 | ) | — | — | |||||||||||||||
Benefits paid | — | (1,109 | ) | (3,281 | ) | (3,416 | ) | (1,007 | ) | (3,277 | ) | |||||||||||||
Other plans | — | — | 82 | — | — | — | ||||||||||||||||||
Currency impact | — | — | (1,172 | ) | — | — | (2,596 | ) | ||||||||||||||||
Fair value of plan assets, December 31 | $ | — | $ | 13,773 | $ | 83,011 | $ | — | $ | 11,080 | $ | 81,587 | ||||||||||||
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 | ||||||||
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 | |||||||||||||||||||
Projected benefit obligation | $ | — | $ | (21,186 | ) | $ | (103,366 | ) | $ | (972 | ) | $ | (17,724 | ) | $ | (93,722 | ) | |||||||
Fair value of plan assets | — | 13,773 | 83,011 | — | 11,080 | 81,587 | ||||||||||||||||||
Funded status | $ | — | $ | (7,413 | ) | $ | (20,355 | ) | $ | (972 | ) | $ | (6,644 | ) | $ | (12,135 | ) | |||||||
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 | ) | ||||
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 | |||||||||||||||||||
Long-term assets | $ | — | $ | — | $ | 1,466 | $ | — | $ | — | $ | 3,284 | ||||||||||||
Current liabilities | — | (448 | ) | (4 | ) | (972 | ) | (387 | ) | (1 | ) | |||||||||||||
Long-term liabilities | — | (6,965 | ) | (21,817 | ) | — | (6,257 | ) | (15,418 | ) | ||||||||||||||
Net amount recognized at December 31 | $ | — | $ | (7,413 | ) | $ | (20,355 | ) | $ | (972 | ) | $ | (6,644 | ) | $ | (12,135 | ) | |||||||
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 | ) | 0 | (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 | ) | ||||
2021 | 2020 | |||||||
Accumulated benefit obligations | $ | 75,178 | $ | 84,940 | ||||
Fair value of plan assets | $ | 66,414 | $ | 68,334 |
2019 | 2018 | |||||||
Projected benefit obligation | $ | 81,566 | $ | 60,359 | ||||
Accumulated benefit obligations | $ | 73,644 | $ | 56,029 | ||||
Fair value of plan assets | $ | 60,832 | $ | 44,940 |
2021 | 2020 | |||||||
Projected benefit obligations | $ | 96,010 | $ | 107,093 | ||||
Fair value of plan assets | $ | 78,264 | $ | 80,422 |
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||
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 | $ | — | $ | 499 | $ | 4,339 | $ | 568 | $ | 566 | $ | 5,368 | $ | 450 | $ | 546 | $ | 5,082 | ||||||||||||||||||
Interest cost | 29 | 777 | 1,735 | 6,491 | 636 | 1,707 | 6,829 | 618 | 1,518 | |||||||||||||||||||||||||||
Expected return on plan assets | — | (706 | ) | (2,154 | ) | (6,833 | ) | (706 | ) | (1,974 | ) | (10,298 | ) | (587 | ) | (1,688 | ) | |||||||||||||||||||
Settlement loss | 27 | — | 1,548 | 45,157 | — | — | 155 | — | 232 | |||||||||||||||||||||||||||
Net amortization: | ||||||||||||||||||||||||||||||||||||
Prior service credit | — | (19 | ) | (108 | ) | — | (19 | ) | (108 | ) | — | — | (168 | ) | ||||||||||||||||||||||
Net actuarial loss | — | — | 531 | 3,082 | — | 680 | 2,770 | — | 959 | |||||||||||||||||||||||||||
Net periodic pension cost (benefit) | $ | 56 | $ | 551 | $ | 5,891 | $ | 48,465 | $ | 477 | $ | 5,673 | $ | (94 | ) | $ | 577 | $ | 5,935 | |||||||||||||||||
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 | $ | 0 | $ | 499 | $ | 4,339 | ||||||||||||||||||
Interest cost | — | 559 | 1,247 | 0 | 711 | 1,413 | 29 | 777 | 1,735 | |||||||||||||||||||||||||||
Expected return on plan assets | — | (1,011 | ) | (1,835 | ) | — | (871 | ) | (1,874 | ) | 0 | (706 | ) | (2,154 | ) | |||||||||||||||||||||
Settlement loss | — | — | 77 | 0 | — | 235 | 27 | — | 1,548 | |||||||||||||||||||||||||||
Net amortization: | ||||||||||||||||||||||||||||||||||||
Prior service credit | — | (19 | ) | (87 | ) | — | (19 | ) | (163 | ) | — | (19 | ) | (108 | ) | |||||||||||||||||||||
Net actuarial loss | — | 10 | 1,186 | — | — | 1,571 | 0 | — | 531 | |||||||||||||||||||||||||||
Net periodic pension cost | $ | — | $ | 423 | $ | 5,165 | $ | 0 | $ | 486 | $ | 5,701 | $ | 56 | $ | 551 | $ | 5,891 | ||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||
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) credit | $ | — | $ | — | $ | — | $ | — | $ | 130 | $ | 44 | $ | — | $ | — | $ | (636 | ) | |||||||||||||||||
Net gain (loss) arising during the year | 32 | (648 | ) | (8,940 | ) | (10,616 | ) | (670 | ) | 4,088 | 8,879 | 13 | 1,609 | |||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||||||||||||
Prior service credit | — | (19 | ) | (108 | ) | — | (19 | ) | (35 | ) | — | — | (168 | ) | ||||||||||||||||||||||
Net loss | 27 | — | 2,079 | 48,239 | — | 680 | 2,925 | — | 1,191 | |||||||||||||||||||||||||||
Other Plans | — | — | 18 | — | — | (354 | ) | — | — | — | ||||||||||||||||||||||||||
Currency impact | — | — | 178 | — | — | 583 | — | — | (2,033 | ) | ||||||||||||||||||||||||||
Total recognized in other comprehensive (loss) income | $ | 59 | $ | (667 | ) | $ | (6,773 | ) | $ | 37,623 | $ | (559 | ) | $ | 5,006 | $ | 11,804 | $ | 13 | $ | (37 | ) | ||||||||||||||
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 | ) | $ | — | $ | — | $ | — | $ | — | $ | 0 | $ | 0 | |||||||||||||||||
Net gain (loss) arising during the year | — | 1,524 | 6,708 | 0 | (1,692 | ) | (3,104 | ) | 32 | (648 | ) | (8,940 | ) | |||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||||||||||||
Prior service credit | — | (19 | ) | (87 | ) | — | (19 | ) | (163 | ) | — | (19 | ) | (108 | ) | |||||||||||||||||||||
Net loss | — | 10 | 1,263 | 0 | — | 1,806 | 27 | — | 2,079 | |||||||||||||||||||||||||||
Other Plans | — | — | — | — | — | 0 | — | — | 18 | |||||||||||||||||||||||||||
Currency impact | — | — | 1,179 | — | — | (2,225 | ) | — | — | 178 | ||||||||||||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | 0 | $ | 1,515 | $ | 8,994 | $ | 0 | $ | (1,711 | ) | $ | (3,686 | ) | $ | 59 | $ | (667 | ) | $ | (6,773 | ) | ||||||||||||||
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 | |||||||||||||||||||
Net actuarial loss | $ | — | $ | (731 | ) | $ | (20,600 | ) | $ | (59 | ) | $ | (83 | ) | $ | (13,987 | ) | |||||||
Prior service credit | — | 93 | 506 | — | 112 | 666 | ||||||||||||||||||
Total | $ | — | $ | (638 | ) | $ | (20,094 | ) | $ | (59 | ) | $ | 29 | $ | (13,321 | ) | ||||||||
2019 | ||||||||||||
U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | ||||||||||
Net actuarial loss | $ | — | $ | — | $ | (1,541 | ) | |||||
Prior service credit | — | 19 | 158 | |||||||||
Total | $ | — | $ | 19 | $ | (1,383 | ) | |||||
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 | ) | ||||
2019 | 2018 | |||||||||||||||
U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | |||||||||||||
Equity securities | 64 | % | 6 | % | 61 | % | 7 | % | ||||||||
Debt securities | 36 | % | 21 | % | 39 | % | 18 | % | ||||||||
Cash and cash equivalents | 0 | % | 1 | % | 0 | % | 5 | % | ||||||||
Insurance contracts and other | 0 | % | 72 | % | 0 | % | 70 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
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 | % | ||||||||
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% - | 20 | % | |||||||
Cash and cash equivalents | 0 | % | 0% - | 10 | % | |||||||
Insurance contracts and other | 5 | % | 0% - | 65 | % |
U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans Policy Target | |||||||||||
Policy Target | Range | |||||||||||
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 | % |
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. |
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 (a) | 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 (c) | 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 | ||||||||
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 | |||||||||||||
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 | ||||||||
Total at December 31, 2018 | Quoted Prices in Active Markets for Identical (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
U.S. Retiree Healthcare Plan: | ||||||||||||||||
Mutual funds ( e ) | 11,080 | 11,080 | — | — | ||||||||||||
Total U.S. Retiree Healthcare Plan | 11,080 | 11,080 | — | — | ||||||||||||
Non-U.S. Pension Plans: | ||||||||||||||||
Cash equivalents (b) | 4,439 | 4,439 | — | — | ||||||||||||
Mutual funds ( f ) | 20,430 | 20,430 | — | — | ||||||||||||
Bank and insurance investment contracts (d) | 56,718 | — | — | 56,718 | ||||||||||||
Total Non-U.S. Pension Plans | 81,587 | 24,869 | — | 56,718 | ||||||||||||
Total fair value of retirement plan assets | $ | 92,667 | $ | 35,949 | $ | — | $ | 56,718 | ||||||||
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: large-cap U.S. companies, 29% in the common stock of international growth 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: |
(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: large-cap U.S. companies, of U.S. companies andthe U.S. government. |
(f) | The mutual fund balance in the Pension Plans is invested in the following categories: international bonds, 17% in various other global investments. |
Insurance Guaranteed Investment Contracts | ||||
Fair value of assets, December 31, 2017 | $ | 51,963 | ||
Net purchases (sales) and appreciation (depreciation) | 4,755 | |||
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 | ||
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 | ||
2019 | 2018 | 2017 | ||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||
Discount rate | 3.42 | % | 1.38 | % | 4.40 | % | 1.95 | % | 3.94 | % | 1.79 | % | ||||||||||||
Increases in compensation levels | ** | 2.83 | % | ** | 2.66 | % | ** | 2.43 | % |
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 |
2019 | 2018 | 2017 | ||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||
Discount rate | 4.41 | % | 2.25 | % | 3.96 | % | 1.93 | % | 4.28 | % | 1.80 | % | ||||||||||||
Return on plan assets | 6.25 | % | 3.11 | % | 4.35 | % | 2.75 | % | 6.53 | % | 2.64 | % | ||||||||||||
Increases in compensation levels | ** | 3.20 | % | ** | 2.70 | % | ** | 2.63 | % |
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 |
U.S. Retiree Healthcare Plans | Non-U.S. Pension Plans | Total | ||||||||||
2020 | $ | 1,123 | $ | 2,723 | $ | 3,846 | ||||||
2021 | 1,209 | 4,746 | 5,955 | |||||||||
2022 | 1,281 | 3,238 | 4,519 | |||||||||
2023 | 1,376 | 2,749 | 4,125 | |||||||||
2024 | 1,437 | 2,884 | 4,321 | |||||||||
2025 - 2029 | 7,420 | 20,691 | 28,111 |
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 |
2019 | 2018 | 2017 | ||||||||||
Product net sales: | ||||||||||||
Waters instrument systems | $ | 963,871 | $ | 1,000,625 | $ | 988,750 | ||||||
Chemistry consumables | 412,018 | 400,287 | 372,157 | |||||||||
TA instrument systems | 191,300 | 204,081 | 191,442 | |||||||||
Total product sales | 1,567,189 | 1,604,993 | 1,552,349 | |||||||||
Service net sales: | ||||||||||||
Waters service | 761,594 | 738,433 | 686,656 | |||||||||
TA service | 77,813 | 76,503 | 70,073 | |||||||||
Total service sales | 839,407 | 814,936 | 756,729 | |||||||||
Total net sales | $ | 2,406,596 | $ | 2,419,929 | $ | 2,309,078 | ||||||
2021 | 2020 | 2019 | ||||||||||
Product net sales: | ||||||||||||
Waters instrument systems | $ | 1,089,248 | $ | 890,855 | $ | 963,871 | ||||||
Chemistry consumables | 507,209 | 432,080 | 412,018 | |||||||||
TA instrument systems | 225,613 | 174,398 | 191,300 | |||||||||
Total product sales | 1,822,070 | 1,497,333 | 1,567,189 | |||||||||
Service net sales: | ||||||||||||
Waters service | 876,626 | 794,189 | 761,594 | |||||||||
TA service | 87,178 | 73,843 | 77,813 | |||||||||
Total service sales | 963,804 | 868,032 | 839,407 | |||||||||
Total net sales | $ | 2,785,874 | $ | 2,365,365 | $ | 2,406,596 | ||||||
2019 | 2018 | 2017 | ||||||||||
Net Sales: | ||||||||||||
Asia: | ||||||||||||
China | $ | 439,557 | $ | 443,321 | $ | 387,059 | ||||||
Japan | 180,707 | 173,357 | 167,258 | |||||||||
Asia Other | 318,848 | 305,613 | 308,300 | |||||||||
Total Asia | 939,112 | 922,291 | 862,617 | |||||||||
Americas: | ||||||||||||
United States | 692,277 | 683,596 | 669,274 | |||||||||
Americas Other | 137,964 | 151,581 | 140,715 | |||||||||
Total Americas | 830,241 | 835,177 | 809,989 | |||||||||
Europe | 637,243 | 662,461 | 636,472 | |||||||||
Total net sales | $ | 2,406,596 | $ | 2,419,929 | $ | 2,309,078 | ||||||
2021 | 2020 | 2019 | ||||||||||
Net Sales: | ||||||||||||
Asia: | ||||||||||||
China | $ | 521,128 | $ | 404,352 | $ | 439,557 | ||||||
Japan | 182,597 | 179,815 | 180,707 | |||||||||
Asia Other | 372,040 | 315,010 | 318,848 | |||||||||
Total Asia | 1,075,765 | 899,177 | 939,112 | |||||||||
Americas: | ||||||||||||
United States | 774,014 | 678,313 | 692,277 | |||||||||
Americas Other | 151,206 | 119,529 | 137,964 | |||||||||
Total Americas | 925,220 | 797,842 | 830,241 | |||||||||
Europe | 784,889 | 668,346 | 637,243 | |||||||||
Total net sales | $ | 2,785,874 | $ | 2,365,365 | $ | 2,406,596 | ||||||
2019 | 2018 | 2017 | ||||||||||
Pharmaceutical | $ | 1,365,275 | $ | 1,365,731 | $ | 1,294,668 | ||||||
Industrial | 719,377 | 737,144 | 721,088 | |||||||||
Academic and governmental | 321,944 | 317,054 | 293,322 | |||||||||
Total net sales | $ | 2,406,596 | $ | 2,419,929 | $ | 2,309,078 | ||||||
2021 | 2020 | 2019 | ||||||||||
Pharmaceutical | $ | 1,667,061 | $ | 1,386,966 | $ | 1,365,275 | ||||||
Industrial | 829,204 | 707,772 | 719,377 | |||||||||
Academic and governmental | 289,609 | 270,627 | 321,944 | |||||||||
Total net sales | $ | 2,785,874 | $ | 2,365,365 | $ | 2,406,596 | ||||||
2019 | 2018 | 2017 | ||||||||||
Net sales recognized at a point in time: | ||||||||||||
Instrument systems | $ | 1,155,171 | $ | 1,204,706 | $ | 1,180,192 | ||||||
Chemistry consumables | 412,018 | 400,287 | 372,157 | |||||||||
Service sales recognized at a point in time (time & materials) | 323,247 | 317,549 | 299,385 | |||||||||
Total net sales recognized at a point in time | 1,890,436 | 1,922,542 | 1,851,734 | |||||||||
Net sales recognized over time: | ||||||||||||
Service and software sales recognized over time (contracts) | 516,160 | 497,387 | 457,344 | |||||||||
Total net sales | $ | 2,406,596 | $ | 2,419,929 | $ | 2,309,078 | ||||||
2021 | 2020 | 2019 | ||||||||||
Net sales recognized at a point in time: | ||||||||||||
Instrument systems | $ | 1,314,861 | $ | 1,065,253 | $ | 1,155,171 | ||||||
Chemistry consumables | 507,209 | 432,080 | 412,018 | |||||||||
Service sales recognized at a point in time (time & materials) | 354,666 | 365,776 | 323,247 | |||||||||
Total net sales recognized at a point in time | 2,176,736 | 1,863,109 | 1,890,436 | |||||||||
Net sales recognized over time: | ||||||||||||
Service and software sales recognized over time (contracts) | 609,138 | 502,256 | 516,160 | |||||||||
Total net sales | $ | 2,785,874 | $ | 2,365,365 | $ | 2,406,596 | ||||||
2019 | 2018 | 2017 | ||||||||||
Long-lived assets: | ||||||||||||
United States | $ | 276,891 | $ | 203,664 | $ | 186,344 | ||||||
Americas Other | 1,929 | 1,680 | 1,720 | |||||||||
Total Americas | 278,820 | 205,344 | 188,064 | |||||||||
Europe | 116,734 | 118,513 | 136,440 | |||||||||
Asia | 21,788 | 19,226 | 24,774 | |||||||||
Total long-lived assets | $ | 417,342 | $ | 343,083 | $ | 349,278 | ||||||
2021 | 2020 | 2019 | ||||||||||
Long-lived assets: | ||||||||||||
United States | $ | 395,446 | $ | 350,615 | $ | 276,891 | ||||||
Americas Other | 1,662 | 1,179 | 1,929 | |||||||||
Total Americas | 397,108 | 351,794 | 278,820 | |||||||||
Europe | 130,806 | 119,978 | 116,734 | |||||||||
Asia | 19,999 | 22,231 | 21,788 | |||||||||
Total long-lived assets | $ | 547,913 | $ | 494,003 | $ | 417,342 | ||||||
First | Second | Third | Fourth | |||||||||||||||||
2019 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Net sales | $ | 513,862 | $ | 599,162 | $ | 577,278 | $ | 716,294 | $ | 2,406,596 | ||||||||||
Costs and operating expenses: | ||||||||||||||||||||
Cost of sales | 221,031 | 249,546 | 241,055 | 299,068 | 1,010,700 | |||||||||||||||
Selling and administrative expenses | 134,339 | 133,208 | 126,036 | 141,208 | 534,791 | |||||||||||||||
Research and development expenses | 35,060 | 36,490 | 34,333 | 37,072 | 142,955 | |||||||||||||||
Purchased intangibles amortization | 2,281 | 2,264 | 2,619 | 2,529 | 9,693 | |||||||||||||||
Total costs and operating expenses | 392,711 | 421,508 | 404,043 | 479,877 | 1,698,139 | |||||||||||||||
Operating income | 121,151 | 177,654 | 173,235 | 236,417 | 708,457 | |||||||||||||||
Other expense | (525 | ) | (342 | ) | (496 | ) | (2,223 | ) | (3,586 | ) | ||||||||||
Interest expense | (11,563 | ) | (11,448 | ) | (11,456 | ) | (14,223 | ) | (48,690 | ) | ||||||||||
Interest income | 8,315 | 5,871 | 3,455 | 4,417 | 22,058 | |||||||||||||||
Income before income taxes | 117,378 | 171,735 | 164,738 | 224,388 | 678,239 | |||||||||||||||
Provision for income taxes | 8,392 | 27,325 | 26,605 | 23,719 | 86,041 | |||||||||||||||
Net income | $ | 108,986 | $ | 144,410 | $ | 138,133 | $ | 200,669 | $ | 592,198 | ||||||||||
Net income per basic common share | 1.52 | 2.09 | 2.09 | 3.15 | 8.76 | |||||||||||||||
Weighted-average number of basic common shares | 71,704 | 68,989 | 66,226 | 63,795 | 67,627 | |||||||||||||||
Net income per diluted common share | 1.51 | 2.08 | 2.07 | 3.12 | 8.69 | |||||||||||||||
Weighted-average number of diluted common shares and equivalents | 72,415 | 69,494 | 66,768 | 64,348 | 68,166 |
First | Second | Third | Fourth | |||||||||||||||||
2021 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Net sales | $ | 608,545 | $ | 681,647 | $ | 659,233 | $ | 836,449 | $ | 2,785,874 | ||||||||||
Costs and operating expenses: | ||||||||||||||||||||
Cost of sales | 254,147 | 280,254 | 271,128 | 351,004 | 1,156,533 | |||||||||||||||
Selling and administrative expenses | 143,196 | 158,213 | 152,545 | 173,014 | 626,968 | |||||||||||||||
Research and development expenses | 38,092 | 44,949 | 41,986 | 43,331 | 168,358 | |||||||||||||||
Purchased intangibles amortization | 1,840 | 1,809 | 1,759 | 1,735 | 7,143 | |||||||||||||||
Litigation provisions | 0 | 0 | — | 5,165 | 5,165 | |||||||||||||||
Total costs and operating expenses | 437,275 | 485,225 | 467,418 | 574,249 | 1,964,167 | |||||||||||||||
Operating income | 171,270 | 196,422 | 191,815 | 262,200 | 821,707 | |||||||||||||||
Other income (expense) | 9,359 | 9,321 | (607 | ) | (870 | ) | 17,203 | |||||||||||||
Interest expense | (10,946 | ) | (12,027 | ) | (11,081 | ) | (10,884 | ) | (44,938 | ) | ||||||||||
Interest income | 4,101 | 3,698 | 2,548 | 1,874 | 12,221 | |||||||||||||||
Income before income taxes | 173,784 | 197,414 | 182,675 | 252,320 | 806,193 | |||||||||||||||
Provision for income taxes | 25,657 | 30,122 | 21,490 | 36,081 | 113,350 | |||||||||||||||
Net income | $ | 148,127 | $ | 167,292 | $ | 161,185 | $ | 216,239 | $ | 692,843 | ||||||||||
Net income per basic common share | 2.38 | 2.71 | 2.63 | 3.55 | 11.25 | |||||||||||||||
Weighted-average number of basic common shares | 62,260 | 61,685 | 61,359 | 60,984 | 61,575 | |||||||||||||||
Net income per diluted common share | 2.37 | 2.69 | 2.60 | 3.52 | 11.17 | |||||||||||||||
Weighted-average number of diluted common shares and equivalents | 62,632 | 62,157 | 61,888 | 61,423 | 62,028 |
First | Second | Third | Fourth | |||||||||||||||||
2018 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Net sales | $ | 530,670 | $ | 596,219 | $ | 578,021 | $ | 715,019 | $ | 2,419,929 | ||||||||||
Costs and operating expenses: | ||||||||||||||||||||
Cost of sales | 221,421 | 243,135 | 241,139 | 286,869 | 992,564 | |||||||||||||||
Selling and administrative expenses | 130,407 | 136,645 | 126,997 | 142,853 | 536,902 | |||||||||||||||
Research and development expenses | 34,480 | 35,644 | 35,173 | 38,106 | 143,403 | |||||||||||||||
Purchased intangibles amortization | 1,659 | 1,602 | 2,114 | 2,337 | 7,712 | |||||||||||||||
Litigation provisions | (1,672 | ) | — | 924 | 322 | (426 | ) | |||||||||||||
Total costs and operating expenses | 386,295 | 417,026 | 406,347 | 470,487 | 1,680,155 | |||||||||||||||
Operating income | 144,375 | 179,193 | 171,674 | 244,532 | 739,774 | |||||||||||||||
Other income (expense) | 346 | (1,828 | ) | (811 | ) | (45,501 | ) | (47,794 | ) | |||||||||||
Interest expense | (13,838 | ) | (11,692 | ) | (11,435 | ) | (11,676 | ) | (48,641 | ) | ||||||||||
Interest income | 9,666 | 8,888 | 9,802 | 10,451 | 38,807 | |||||||||||||||
Income before income taxes | 140,549 | 174,561 | 169,230 | 197,806 | 682,146 | |||||||||||||||
Provision for income taxes | 28,598 | 18,884 | 28,216 | 12,654 | 88,352 | |||||||||||||||
Net income | $ | 111,951 | $ | 155,677 | $ | 141,014 | $ | 185,152 | $ | 593,794 | ||||||||||
Net income per basic common share | 1.42 | 2.00 | 1.84 | 2.48 | 7.71 | |||||||||||||||
Weighted-average number of basic common shares | 78,883 | 77,833 | 76,575 | 74,802 | 76,992 | |||||||||||||||
Net income per diluted common share | 1.40 | 1.98 | 1.83 | 2.46 | 7.65 | |||||||||||||||
Weighted-average number of diluted common shares and equivalents | 79,715 | 78,438 | 77,136 | 75,345 | 77,618 |
First | Second | Third | Fourth | |||||||||||||||||
2020 | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Net sales | $ | 464,939 | $ | 519,984 | $ | 593,784 | $ | 786,658 | $ | 2,365,365 | ||||||||||
Costs and operating expenses: | ||||||||||||||||||||
Cost of sales | 210,644 | 213,134 | 262,342 | 320,569 | 1,006,689 | |||||||||||||||
Selling and administrative expenses | 147,735 | 117,449 | 135,430 | 153,084 | 553,698 | |||||||||||||||
Research and development expenses | 34,989 | 31,155 | 34,971 | 39,662 | 140,777 | |||||||||||||||
Purchased intangibles amortization | 2,625 | 2,618 | 2,657 | 2,687 | 10,587 | |||||||||||||||
Asset Impairments | — | — | — | 6,945 | 6,945 | |||||||||||||||
Litigation provisions | 666 | 514 | — | — | 1,180 | |||||||||||||||
Total costs and operating expenses | 396,659 | 364,870 | 435,400 | 522,947 | 1,719,876 | |||||||||||||||
Operating income | 68,280 | 155,114 | 158,384 | 263,711 | 645,489 | |||||||||||||||
Other (expense) income | (374 | ) | (736 | ) | (1,039 | ) | 374 | (1,775 | ) | |||||||||||
Interest expense | (14,079 | ) | (13,018 | ) | (10,915 | ) | (11,058 | ) | (49,070 | ) | ||||||||||
Interest income | 4,036 | 4,003 | 4,007 | 4,224 | 16,270 | |||||||||||||||
Income before income taxes | 57,863 | 145,363 | 150,437 | 257,251 | 610,914 | |||||||||||||||
Provision for income taxes | 4,301 | 22,434 | 23,668 | 38,940 | 89,343 | |||||||||||||||
Net income | $ | 53,562 | $ | 122,929 | $ | 126,769 | $ | 218,311 | $ | 521,571 | ||||||||||
Net income per basic common share | 0.86 | 1.98 | 2.04 | 3.51 | 8.40 | |||||||||||||||
Weighted-average number of basic common shares | 62,232 | 61,944 | 62,002 | 62,170 | 62,094 | |||||||||||||||
Net income per diluted common share | 0.86 | 1.98 | 2.03 | 3.49 | 8.36 | |||||||||||||||
Weighted-average number of diluted common shares and equivalents | 62,626 | 62,184 | 62,303 | 62,501 | 62,414 |
Item 9B: |
Item 10: | Directors, Executive Officers and Corporate Governance |
Item 11: | Executive Compensation |
Item 12: | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
A | B | C | ||||||||||
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1) | Weighted-Average ExercisePrice of Outstanding Options, Warrants and Rights (1) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (A)) | ||||||||||
Equity compensation plans approved by security holders | 1,861 | $ | 158.61 | 2,711 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 1,861 | $ | 158.61 | 2,711 | ||||||||
A | B | C | ||||||||||
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1) | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (1) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (A)) | ||||||||||
Equity compensation plans approved by security holders | 1,064 | $ | 202.24 | 7,177 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 1,064 | $ | 202.24 | 7,177 | ||||||||
(1) | Column (a) includes an aggregate of |
Item 13: | Certain Relationships and Related Transactions and Director Independence |
Item 14: | Principal Accountant Fees and Services |
Item 15: | Exhibits, Financial Statement Schedules |
(1) | Financial Statements: |
(2) | Exhibits: |
Exhibit Number | Description of Document | ||||
3.1 | |||||
Second Amended and Restated Certificate of Incorporation of Waters Corporation.(1)(P) | |||||
3.2 | |||||
3.3 | |||||
3.4 | |||||
3.5 | |||||
4.1 | |||||
10.1 | |||||
Waters Corporation Retirement Plan.(2)(P)(*) | |||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6 | |||||
10.7 | |||||
10.8 | |||||
10.9 | |||||
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31.1 | |||||
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32.1 | |||||
32.2 | |||||
101 | The following materials from Waters Corporation’s Annual Report on Form 10-K for the year ended December 31, |
Exhibit Number | Description of Document | |||
104 | Cover Page Interactive Date File (formatted in iXBRL and contained in Exhibit 101). |
(1) | Incorporated by reference to the Registrant’s Report on Form 10-K dated March 29, 1996 (FileNo. 001-14010). |
(2) | Incorporated by reference to the Registrant’s Registration Statement on Form S-1 dated October 24, 1996 (FileNo. 333-96934). |
(3) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated August 11, 1999 (FileNo. 001-14010). |
(4) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated August 8, 2000 (FileNo. 001-14010). |
(5) | Incorporated by reference to the Registrant’s Report on Form 10-K dated March 28, 2002 (FileNo. 001-14010). |
(6) | Incorporated by reference to Exhibit 4.1 of the Registrant’s Report on Form 10-K dated February 24, 2021 (FileNo. 001-14010) |
(7) | Incorporated by reference to the Registrant’s Report on Form S-8 dated November 20, 2003 (FileNo. 333-110613). |
(8) | Incorporated by reference to the Registrant’s Report on Form 10-K dated March 12, 2004 (FileNo. 001-14010). |
(9) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated November 10, 2004 (FileNo. 001-14010). |
(10) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated August 5, 2005 (FileNo. 001-14010). |
(11) | Incorporated by reference to the Registrant’s Report on Form 10-K dated March 1, 2007 (FileNo. 001-14010). |
(12) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated November 2, 2007 (FileNo. 001-14010). |
(13) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated February 27, 2009 (FileNo. 001-14010). |
(14) | Incorporated by reference to the Registrant’s Report on Form S-8 dated July 10, 2009 (FileNo. 333-160507). |
(15) | Incorporated by reference to the Registrant’s Report on Form 10-K dated February 26, 2010 (FileNo. 001-14010). |
(16) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated May 6, 2011 (FileNo. 001-14010). |
(17) | Incorporated by reference to the Registrant’s Report on Form S-8 dated September 5, 2012 (FileNo. 333-183721). |
(18) | Incorporated by reference to the Registrant’s Report on Form 8-K dated December 11, 2012 (FileNo. 001-14010). |
(19) | Incorporated by reference to the Registrant’s Report on Form 8-K dated December 11, 2013 (FileNo. 001-14010). |
(20) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated August 1, 2014 (FileNo. 001-14010). |
(21) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated February 27, 2015 (FileNo. 001-14010). |
(22) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated May 8, 2015 (FileNo. 001-14010). |
(23) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated August 7, 2015 (FileNo. 001-14010). |
(24) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated August 5, 2016 (FileNo. 001-14010). |
(25) | Incorporated by reference to the Registrant’s Report on Form 8-K dated December 15, 2016 (FileNo. 001-14010). |
(26) | Incorporated by reference to the Registrant’s Report on Form 10-K dated February 24, 2017 (FileNo. 001-14010). |
(27) | Incorporated by reference to the Registrant’s Report on Form 8-K dated March 27, 2017 (FileNo. 001-14010). |
(28) | Incorporated by reference to the Registrant’s Report on Form 10-Q dated November 3, 2017 (FileNo. 001-14010). |
(29) | Incorporated by reference to the Registrant’s Report on Form 8-K dated December 8, 2017 (FileNo. 001-14010). |
(30) | Incorporated by reference to the Registrant’s Report on Form 10-K dated February 27, 2018 (FileNo. 001-14010). |
(31) | Incorporated by reference to the Registrant’s Report on Form 10-K/A dated March 1, 2019 (FileNo. 001-14010). |
(32) | Incorporated by reference to the Registrant’s Report on Form 8-K dated September 16, 2019 (FileNo. 001-14010). |
(33) | Incorporated by reference to the Registrant’s Report on Form No. 001-14010). |
Incorporated by reference to the Registrant’s Report on Form 10-Q dated No. 001-14010). |
(35) | Incorporated by reference to Exhibit 4.2 of the Registration Statement filed on Form S-8 dated June 8, 2020 (FileNo. 333-239020). |
Incorporated by reference to the Registrant’s Report on Form 10-K dated February 25, 2020 (FileNo. 001-14010). |
(37) | Incorporated by reference to the Registrant’s Report on Form No. 001-14010). |
Incorporated by reference to the Registrant’s Report on Form No. 001-14010). |
Incorporated by reference to the Registrant’s Report on Form |
8-K dated September No. 001-14010). |
(P) | Paper Filing |
(*) | Management contract or compensatory plan required to be filed as an Exhibit to this Form 10-K. |
(**) | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act, |
(b) | See Item 15 (a) |
Item 16: | Form 10-K Summary |
W ORPORATION |
/s/ Amol Chaubal |
Senior Vice President and Chief Financial Officer |
(Principal Financial Officer) |
(Principal Accounting Officer) |
/s/ | Chairman of the Board of Directors | ||
Dr. Flemming Ornskov, M.D., M.P.H. | |||
/s/ Dr. Udit Batra, Ph.D. | President and Chief Executive Officer | ||
Dr. Udit Batra, Ph.D. | Director (Principal Executive Officer) | ||
/s/ | Senior Vice President and Chief Financial Officer | ||
( ( | |||
/s/ Linda Baddour | Director | ||
Linda Baddour | |||
/s/ | Director | ||
/s/ Edward Conard | Director | ||
Edward Conard | |||
/s/ | Director | ||
/s/ | Director | ||
/s/ Wei Jiang | Director | ||
Wei Jiang | |||
/s/ Christopher A. Kuebler | Director | ||
Christopher A. Kuebler | |||
/s/ Thomas P. Salice | Director | ||
Thomas P. Salice |