Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | Apr. 26, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WATERS CORP /DE/ | |
Entity Central Index Key | 0001000697 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | WAT | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 69,475,245 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 684,970 | $ 796,280 |
Investments | 482,293 | 938,944 |
Accounts receivable, net | 508,285 | 568,316 |
Inventories | 333,308 | 291,569 |
Other current assets | 68,935 | 68,054 |
Total current assets | 2,077,791 | 2,663,163 |
Property, plant and equipment, net | 355,965 | 343,083 |
Intangible assets, net | 243,415 | 246,902 |
Goodwill | 356,632 | 355,614 |
Operating lease assets | 94,680 | |
Other assets | 121,245 | 118,664 |
Total assets | 3,249,728 | 3,727,426 |
Current liabilities: | ||
Notes payable and debt | 100,263 | 178 |
Accounts payable | 72,367 | 68,168 |
Accrued employee compensation | 31,563 | 64,545 |
Current operating lease liabilities | 26,926 | |
Accrued treasury stock repurchases | 25,208 | 23,005 |
Deferred revenue and customer advances | 222,263 | 164,965 |
Accrued income taxes | 19,854 | 22,943 |
Accrued warranty | 11,462 | 12,300 |
Other current liabilities | 93,373 | 92,827 |
Total current liabilities | 603,279 | 448,931 |
Long-term liabilities: | ||
Long-term debt | 1,048,283 | 1,148,172 |
Long-term income tax liabilities | 431,224 | 430,866 |
Long-term operating lease liabilities | 67,788 | |
Long-term portion of retirement benefits | 56,376 | 55,853 |
Other long-term liabilities | 75,036 | 76,346 |
Total long-term liabilities | 1,678,707 | 1,711,237 |
Total liabilities | 2,281,986 | 2,160,168 |
Commitments and contingencies (Notes 6, 7,8 and 12) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none issued at March 30, 2019 and December 31, 2018 | ||
Common stock, par value $0.01 per share, 400,000 shares authorized, 160,825 and 160,472 shares issued, 70,136 and 73,115 shares outstanding at March 30, 2019 and December 31, 2018, respectively | 1,608 | 1,605 |
Additional paid-in capital | 1,872,216 | 1,834,741 |
Retained earnings | 6,104,191 | 5,995,205 |
Treasury stock, at cost, 90,689 and 87,357 shares at March 30, 2019 and December 31, 2018, respectively | (6,901,629) | (6,146,322) |
Accumulated other comprehensive loss | (108,644) | (117,971) |
Total stockholders' equity | 967,742 | 1,567,258 |
Total liabilities and stockholders' equity | $ 3,249,728 | $ 3,727,426 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 160,825,000 | 160,472,000 |
Common stock, shares outstanding | 70,136,000 | 73,115,000 |
Treasury stock, shares | 90,689,000 | 87,357,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total net sales | $ 513,862 | $ 530,670 |
Costs and operating expenses: | ||
Selling and administrative expenses | 134,339 | 130,407 |
Research and development expenses | 35,060 | 34,480 |
Purchased intangibles amortization | 2,281 | 1,659 |
Litigation settlement | (1,672) | |
Total costs and operating expenses | 392,711 | 386,295 |
Operating income | 121,151 | 144,375 |
Other (expense) income | (525) | 346 |
Interest expense | (11,563) | (13,838) |
Interest income | 8,315 | 9,666 |
Income before income taxes | 117,378 | 140,549 |
Provision for income taxes | 8,392 | 28,598 |
Net income | $ 108,986 | $ 111,951 |
Net income per basic common share | $ 1.52 | $ 1.42 |
Weighted-average number of basic common shares | 71,704 | 78,883 |
Net income per diluted common share | $ 1.51 | $ 1.40 |
Weighted-average number of diluted common shares and equivalents | 72,415 | 79,715 |
Product [Member] | ||
Revenues: | ||
Total net sales | $ 320,503 | $ 339,117 |
Costs and operating expenses: | ||
Costs and operating expenses | 132,390 | 140,466 |
Service [Member] | ||
Revenues: | ||
Total net sales | 193,359 | 191,553 |
Costs and operating expenses: | ||
Costs and operating expenses | $ 88,641 | $ 80,955 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 108,986 | $ 111,951 |
Other comprehensive income (loss): | ||
Foreign currency translation | 7,522 | 23,913 |
Unrealized gains (losses) on investments before income taxes | 2,344 | (2,976) |
Income tax (expense) benefit | (547) | 93 |
Unrealized gains (losses) on investments, net of tax | 1,797 | (2,883) |
Retirement liability adjustment before reclassifications | (61) | (385) |
Amounts reclassified to other (expense) income | 93 | 907 |
Retirement liability adjustment before income taxes | 32 | 522 |
Income tax expense | (24) | (116) |
Retirement liability adjustment, net of tax | 8 | 406 |
Other comprehensive income | 9,327 | 21,436 |
Comprehensive income | $ 118,313 | $ 133,387 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 108,986 | $ 111,951 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 9,941 | 9,892 |
Deferred income taxes | 1,442 | 1,071 |
Depreciation | 12,006 | 16,083 |
Amortization of intangibles | 12,758 | 12,557 |
Change in operating assets and liabilities: | ||
Decrease in accounts receivable | 59,331 | 40,588 |
Increase in inventories | (44,438) | (28,101) |
Increase in other current assets | (3,547) | (13,049) |
Decrease (increase) in other assets | 4,637 | (4,409) |
Decrease in accounts payable and other current liabilities | (33,485) | (34,258) |
Increase in deferred revenue and customer advances | 57,539 | 45,096 |
Effect of the 2017 Tax & Jobs Act | (3,229) | 12,450 |
(Decrease) increase in other liabilities | (6,162) | 5,970 |
Net cash provided by operating activities | 175,779 | 175,841 |
Cash flows from investing activities: | ||
Additions to property, plant, equipment and software capitalization | (25,666) | (15,992) |
Investment in unaffiliated companies | (3,215) | |
Purchases of investments | (26,732) | (170,041) |
Maturities and sales of investments | 486,437 | 1,085,087 |
Net cash provided by investing activities | 434,039 | 895,839 |
Cash flows from financing activities: | ||
Proceeds from debt issuances | 166 | 81 |
Payments on debt | (80) | (750,000) |
Proceeds from stock plans | 27,631 | 24,287 |
Purchases of treasury shares | (753,105) | (282,370) |
Proceeds from derivative contracts | 2,254 | 1,937 |
Net cash used in financing activities | (723,134) | (1,006,065) |
Effect of exchange rate changes on cash and cash equivalents | 2,006 | 8,588 |
(Decrease) increase in cash and cash equivalents | (111,310) | 74,203 |
Cash and cash equivalents at beginning of period | 796,280 | 642,319 |
Cash and cash equivalents at end of period | $ 684,970 | $ 716,522 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2017 | $ 2,233,788 | $ 1,598 | $ 1,745,088 | $ 5,405,380 | $ (4,808,211) | $ (110,067) |
Beginning Balance, shares at Dec. 31, 2017 | 159,845 | |||||
Adoption of new accounting pronouncement | (3,969) | (3,969) | ||||
Net income | 111,951 | 111,951 | ||||
Other comprehensive income | 21,436 | 21,436 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 1,565 | 1,565 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 10 | |||||
Issuance of common stock for stock options exercised | 22,709 | $ 2 | 22,707 | |||
Issuance of common stock for stock options exercised, shares | 222 | |||||
Treasury stock | (282,370) | (282,370) | ||||
Stock-based compensation | 9,784 | $ 2 | 9,782 | |||
Stock-based compensation, shares | 123 | |||||
Ending balance at Mar. 31, 2018 | 2,114,894 | $ 1,602 | 1,779,142 | 5,513,362 | (5,090,581) | (88,631) |
Ending Balance, shares at Mar. 31, 2018 | 160,200 | |||||
Beginning balance at Dec. 31, 2018 | 1,567,258 | $ 1,605 | 1,834,741 | 5,995,205 | (6,146,322) | (117,971) |
Beginning Balance, shares at Dec. 31, 2018 | 160,472 | |||||
Net income | 108,986 | 108,986 | ||||
Other comprehensive income | 9,327 | 9,327 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 1,670 | 1,670 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 10 | |||||
Issuance of common stock for stock options exercised | 26,099 | $ 2 | 26,097 | |||
Issuance of common stock for stock options exercised, shares | 239 | |||||
Treasury stock | (755,307) | (755,307) | ||||
Stock-based compensation | 9,709 | $ 1 | 9,708 | |||
Stock-based compensation, shares | 104 | |||||
Ending balance at Mar. 30, 2019 | $ 967,742 | $ 1,608 | $ 1,872,216 | $ 6,104,191 | $ (6,901,629) | $ (108,644) |
Ending Balance, shares at Mar. 30, 2019 | 160,825 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1 Basis of Presentation and Summary of Significant Accounting Policies Waters Corporation (the “Company,” “we,” “our,” or “us”) is a specialty measurement company that operates with a fundamental underlying purpose to advance the science that enables our customers to enhance human health and well-being. The Company has pioneered analytical workflow solutions involving liquid chromatography, mass spectrometry and thermal analysis innovations serving the life, materials and food sciences for more than 60 years. The Company primarily designs, manufactures, sells and services high performance liquid chromatography (“HPLC”), ultra performance liquid chromatography (“UPLC TM TM The Company’s interim fiscal quarter typically ends on the thirteenth Saturday of each quarter. Since the Company’s fiscal year end is December 31, the first and fourth fiscal quarters may have more or less than thirteen complete weeks. The Company’s first fiscal quarters for 2019 and 2018 ended on March 30, 2019 and March 31, 2018, respectively. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on Form 10-Q and do not include all of the information and footnote disclosures required for annual financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America. The consolidated financial statements include the accounts of the Company and its subsidiaries, which are wholly owned. All inter-company balances and transactions have been eliminated. The preparation of consolidated financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities at the dates of the financial statements. Actual amounts may differ from these estimates under different assumptions or conditions. It is management’s opinion that the accompanying interim consolidated financial statements reflect all adjustments (which are normal and recurring) that are necessary for a fair statement of the results for the interim periods. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2018, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 1, 2019. Translation of Foreign Currencies The functional currency of each of the Company’s foreign operating subsidiaries is the local currency of its country of domicile, except for the Company’s subsidiaries in Hong Kong, Singapore and the Cayman Islands, where the underlying transactional cash flows are denominated in currencies other than the respective local currency of domicile. The functional currency of the Hong Kong, Singapore and Cayman Islands subsidiaries is the U.S. dollar, based on the respective entity’s cash flows. For most of the Company’s foreign operations, assets and liabilities are translated into U.S. dollars at exchange rates prevailing on the balance sheet date, while revenues and expenses are translated at average exchange rates prevailing during the respective period. Any resulting translation gains or losses are included in accumulated other comprehensive income in the consolidated balance sheets. Cash, Cash Equivalents and Investments Cash equivalents represent highly liquid investments, with original maturities of 90 days or less, while investments with longer maturities are classified as investments. The Company maintains cash balances in various operating accounts in excess of federally insured limits, and in foreign subsidiary accounts in currencies other than the U.S. dollar. As of March 30, 2019 and December 31, 2018, $411 million out of $1,167 million and $471 million out of $1,735 million, respectively, of the Company’s total cash, cash equivalents and investments were held by foreign subsidiaries. In addition, $263 million out of $1,167 million and $251 million out of $1,735 million of cash, cash equivalents and investments were held in currencies other than the U.S. dollar at March 30, 2019 and December 31, 2018, respectively. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company has very limited use of rebates and other cash considerations payable to customers and, as a result, the transaction price determination does not have any material variable consideration. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in the existing accounts receivable. The allowance is based on a number of factors, including historical experience and the customer’s credit-worthiness. The allowance for doubtful accounts is reviewed on at least a quarterly basis. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. Account balances are charged against the allowance when the Company determines it is probable that the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers. Historically, the Company has not experienced significant bad debt losses. The following is a summary of the activity of the Company’s allowance for doubtful accounts for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Balance at Balance at Beginning End of of Period Additions Deduction Period Allowance for Doubtful Accounts March 30, 2019 $ 7,663 $ 2,159 $ (2,324 ) $ 7,498 March 31, 2018 $ 6,109 $ 1,056 $ (1,033 ) $ 6,132 Fair Value Measurements In accordance with the accounting standards for fair value measurements and disclosures, certain of the Company’s assets and liabilities are measured at fair value on a recurring basis as of March 30, 2019 and December 31, 2018. Fair values determined by Level 1 inputs utilize observable data, such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points for which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at March 30, 2019 (in thousands): Quoted Prices in Active Significant Markets Other Significant Total at for Identical Observable Unobservable March 30, Assets Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Assets: U.S. Treasury securities $ 98,576 $ — $ 98,576 $ — Foreign government securities 3,476 — 3,476 — Corporate debt securities 367,621 — 367,621 — Time deposits 52,507 — 52,507 — Waters 401(k) Restoration Plan assets 33,951 33,951 — — Foreign currency exchange contracts 355 — 355 — Interest rate cross-currency swap agreements 7,120 — 7,120 — Total $ 563,606 $ 33,951 $ 529,655 $ — Liabilities: Contingent consideration $ 2,591 $ — $ — $ 2,591 Foreign currency exchange contracts 619 — 619 — Total $ 3,210 $ — $ 619 $ 2,591 The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2018 (in thousands): Quoted Prices in Active Significant Markets Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2018 (Level 1) (Level 2) (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 Fair Value of 401(k) Restoration Plan Assets The 401(k) Restoration Plan is a nonqualified defined contribution plan and the assets were held in registered mutual funds and have been classified as Level 1. The fair values of the assets in the plan are determined through market and observable sources from daily quoted prices on nationally recognized securities exchanges. Fair Value of Cash Equivalents, Investments, Foreign Currency Exchange Contracts and Interest Rate Cross-Currency Swap Agreements The fair values of the Company’s cash equivalents, investments and foreign currency exchange contracts are determined through market and observable sources and have been classified as Level 2. These assets and liabilities have been initially valued at the transaction price and subsequently valued, typically utilizing third-party pricing services. The pricing services use many inputs to determine value, including reportable trades, benchmark yields, credit spreads, broker/dealer quotes, current spot rates and other industry and economic events. The Company validates the prices provided by third-party pricing services by reviewing their pricing methods and obtaining market values from other pricing sources. Fair Value of Contingent Consideration The fair value of the Company’s liability for contingent consideration relates to earnout payments in connection with the July 2014 acquisition of Medimass Research, Development and Service Kft. and is determined using a probability-weighted discounted cash flow model, which uses significant unobservable inputs, and has been classified as Level 3. Subsequent changes in the fair value of the contingent consideration liability are recorded in the results of operations. The fair value of the contingent consideration liability associated with future earnout payments is based on several factors, including the estimated future results and a discount rate that reflects both the likelihood of achieving the estimated future results and the Company’s creditworthiness. A change in any of these unobservable inputs can significantly change the fair value of the contingent consideration. Although there is no contractual limit, the fair value of future contingent consideration payments was estimated to be $3 million and $2 million at March 30, 2019 and December 31, 2018, respectively, based on the Company’s best estimate, as the earnout is based on future sales of certain products, some of which are currently in development, through 2034. Fair Value of Other Financial Instruments The Company’s accounts receivable, accounts payable and variable interest rate debt are recorded at cost, which approximates fair value due to their short-term nature. The carrying value of the Company’s fixed interest rate debt was $510 million at both March 30, 2019 and December 31, 2018, respectively. The fair value of the Company’s fixed interest rate debt was estimated using discounted cash flow models, based on estimated current rates offered for similar debt under current market conditions for the Company. The fair value of the Company’s fixed interest rate debt was estimated to be $508 million and $502 million at March 30, 2019 and December 31, 2018, respectively, using Level 2 inputs. Derivative Transactions The Company is a global company that operates in over 35 countries and, as a result, the Company’s net sales, cost of sales, operating expenses and balance sheet amounts are significantly impacted by fluctuations in foreign currency exchange rates. The Company is exposed to currency price risk on foreign currency exchange rate fluctuations when it translates its non-U.S. dollar foreign subsidiaries’ financial statements into U.S. dollars, and when any of the Company’s subsidiaries purchase or sell products or services in a currency other than its own currency. The Company’s principal strategies in managing exposures to changes in foreign currency exchange rates are to (1) naturally hedge the foreign-currency-denominated liabilities on the Company’s balance sheet against corresponding assets of the same currency, such that any changes in liabilities due to fluctuations in foreign currency exchange rates are typically offset by corresponding changes in assets and (2) mitigate foreign exchange risk exposure of international operations by hedging the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. The Company presents the derivative transactions in financing activities in the statement of cash flows. Foreign Currency Exchange Contracts The Company does not specifically enter into any derivatives that hedge foreign-currency-denominated operating assets, liabilities or commitments on its balance sheet, other than a portion of certain third-party accounts receivable and accounts payable, and the Company’s net worldwide intercompany receivables and payables, which are eliminated in consolidation. The Company periodically aggregates its net worldwide balances by currency and then enters into foreign currency exchange contracts that mature within 90 days to hedge a portion of the remaining balance to minimize some of the Company’s currency price risk exposure. The foreign currency exchange contracts are not designated for hedge accounting treatment. Principal hedged currencies include the Euro, Japanese yen, British pound, Mexican peso and Brazilian real. Interest Rate Cross-Currency Swap Agreements In 2018, the Company entered into three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $300 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. Under hedge accounting, the change in fair value of the derivative that relates to changes in the foreign currency spot rate are recorded in the currency translation adjustment in other comprehensive income and remain in accumulated comprehensive income in stockholders’ equity until the sale or substantial liquidation of the foreign operation. The difference between the interest rate received and paid under the interest rate cross-currency swap derivative agreement is recorded in interest income in the statement of operations. The Company’s foreign currency exchange contracts and interest rate cross-currency swap agreements included in the consolidated balance sheets are classified as follows (in thousands): March 30, 2019 December 31, 2018 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 34,219 $ 355 $ 112,212 $ 503 Other current liabilities $ 98,745 $ 619 $ 40,175 $ 224 Interest rate cross-currency swap agreements: Other assets $ 300,000 $ 7,120 $ 300,000 $ 1,093 Accumulated other comprehensive income $ (7,120 ) $ (1,093 ) The following is a summary of the activity included in the statements of comprehensive income related to the foreign currency exchange contracts (in thousands): Financial Statement Classification Three Months Ended March 30, 2019 March 31, 2018 Foreign currency exchange contracts: Realized (losses) gains on closed contracts Cost of sales $ (543 ) $ 1,937 Unrealized gains (losses) on open contracts Cost of sales 526 (985 ) Cumulative net pre-tax (losses) gains Cost of sales $ (17 ) $ 952 Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,227 $ — Unrealized gains on contracts Stockholders’ equity $ 7,120 $ — In April 2019, the Company entered into three-year interest rate cross-currency swap derivative agreements with a notional value of $110 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. Stockholders’ Equity In January 2019, the Company’s Board of Directors authorized the Company to repurchase up to $4 billion of its outstanding common stock over a two-year period. This new program replaced the remaining amounts available from the pre-existing program. During the three months ended March 30, 2019 and March 31, 2018, the Company repurchased 3.3 million and 1.3 million shares of the Company’s outstanding common stock at a cost of $747 million and $275 million, respectively, under the January 2019 authorization and other previously announced programs. As of March 30, 2019, the Company had repurchased an aggregate of 2.5 million shares at a cost of $598 million under the January 2019 repurchase program and had a total of $3.4 billion authorized for future repurchases. In addition, the Company repurchased $8 million of common stock related to the vesting of restricted stock units during both the three months ended March 30, 2019 and March 31, 2018, respectively. The Company believes that it has the financial flexibility to fund these share repurchases given current cash levels and debt borrowing capacity, as well as to invest in research, technology and business acquisitions. As of March 30, 2019, the Company accrued $25 million as a result of treasury stock purchases that were settled in the second quarter of 2019. Product Warranty Costs The Company accrues estimated product warranty costs at the time of sale, which are included in cost of sales in the consolidated statements of operations. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. The amount of the accrued warranty liability is based on historical information, such as past experience, product failure rates, number of units repaired and estimated costs of material and labor. The liability is reviewed for reasonableness at least quarterly. The following is a summary of the activity of the Company’s accrued warranty liability for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Balance at Balance at Beginning Accruals for Settlements End of of Period Warranties Made Period Accrued warranty liability: March 30, 2019 $ 12,300 $ 1,500 $ (2,338 ) $ 11,462 March 31, 2018 $ 13,026 $ 1,767 $ (2,167 ) $ 12,626 Restructuring and Other Charges In January 2019, the Company made organizational changes to better align our resources with our growth and innovation strategies, resulting in a worldwide workforce reduction, impacting 1% of the Company’s employees. The Company recorded $8 million of severance and related costs during 2019. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 2 Revenue Recognition The Company recognizes revenue upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company generally enters into contracts that include a combination of products and services. Revenue is allocated to distinct performance obligations and is recognized net of allowances for returns and discounts. The Company recognizes revenue on product sales at the time control of the product transfers to the customer. In substantially all of the Company’s arrangements, title of the product transfers at shipping point and, as a result, the Company determined control transfers at the point of shipment. In more limited cases, there are destination-based shipping terms and, thus, control is deemed to transfer when the products arrive at the customer site. All incremental costs of obtaining a contract are expensed as and when incurred if the expected amortization period of the asset that would have been recognized is one year or less. Shipping and handling costs are included as a component of cost of sales. In situations where the control of the goods transfers prior to the completion of the Company’s obligation to ship the products to its customers, the Company has elected the practical expedient to account for the shipping services as a fulfillment cost. Accordingly, such costs are recognized when control of the related goods is transferred to the customer. In more rare situations, the Company has revenue associated with products that contain specific customer acceptance criteria and the related revenue is not recognized before the customer acceptance criteria are satisfied. The Company elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with specific revenue-producing transactions and collected by the Company from a customer. Generally, the Company’s contracts for products include a performance obligation related to installation. The Company has determined that the installation represents a distinct performance obligation and revenue is recognized separately upon the completion of installation. The Company determines the amount of the transaction price to allocate to the installation service based on the standalone selling price of the product and the service, which requires judgment. The Company determines relative standalone selling price of installation based upon a number of factors, including hourly service billing rates and estimated installation hours. In developing these estimates, the Company considers past history, competition, billing rates of current services and other factors. The Company has sales from standalone software, which is included in instrument systems revenue. These arrangements typically include software licenses and maintenance contracts, both of which the Company has determined are distinct performance obligations. The Company determines the amount of the transaction price to allocate to the license and maintenance contract based on the relative standalone selling price of each performance obligation. Software license revenue is recognized at the point in time when control has been transferred to the customer. The revenue allocated to the software maintenance contract is recognized on a straight-line basis over the maintenance period, which is the contractual term of the contract, as a time-based measure of progress best reflects the Company’s performance in satisfying this obligation. Unspecified rights to software upgrades are typically sold as part of the maintenance contract on a when-and-if-available basis. Payment terms and conditions vary among the Company’s revenue streams, although terms generally include a requirement of payment within 30 to 60 days of product shipment. Prior to providing payment terms to customers, an evaluation of the customer’s credit risk is performed. Returns and customer credits are infrequent and insignificant and are recorded as a reduction to sales. Rights of return are not included in sales arrangements and, therefore, there is minimal variable consideration included in the transaction price of our products. Service revenue includes (i) service and software maintenance contracts and (ii) service calls (time and materials). Instrument service contracts and software maintenance contracts are typically annual contracts, which are billed at the beginning of the contract or maintenance period. The amount of the service and software maintenance contract is recognized on a straight-line basis to revenue over the maintenance service period, which is the contractual term of the contract, as a time-based measure of progress best reflects the Company’s performance in satisfying this obligation. There are no deferred costs associated with the service contract, as the cost of the service is recorded when the service is performed. Service calls are recognized to revenue at the time a service is performed. The Company’s deferred revenue liabilities on the consolidated balance sheets consists of the obligation on instrument service contracts and customer payments received in advance, prior to transfer of control of the instrument. The Company records deferred revenue primarily related to its service contracts, where consideration is billable at the beginning of the service period. The following is a summary of the activity of the Company’s deferred revenue and customer advances for the three months ended March , and March , (in thousands): March 30, 2019 March 31, 2018 Balance at the beginning of the period $ 204,257 $ 192,590 Recognition of revenue included in balance at beginning of the period (77,742 ) (93,286 ) Revenue deferred during the period, net of revenue recognized 134,506 147,939 Balance at the end of the period $ 261,021 $ 247,243 The Company classified $39 million of deferred revenue and customer advances in other long-term liabilities at both March 30, 2019 and December 31, 2018. The amount of deferred revenue and customer advances equals the transaction price allocated to unfulfilled performance obligations for the period presented. Such amounts are expected to be recognized in the future as follows (in thousands): March 30, 2019 Deferred revenue and customer advances expected to be recognized in: One year or less $ 222,263 13-24 months 22,180 25 months and beyond 16,578 Total $ 261,021 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 3 Marketable Securities The Company’s marketable securities within cash equivalents and investments included in the consolidated balance sheets are detailed as follows (in thousands): March 30, 2019 Amortized Unrealized Unrealized Fair Cost Gain Loss Value U.S. Treasury securities $ 98,723 $ 12 $ (159 ) $ 98,576 Foreign government securities 3,489 1 (14 ) 3,476 Corporate debt securities 368,163 121 (663 ) 367,621 Time deposits 52,507 — — 52,507 Total $ 522,882 $ 134 $ (836 ) $ 522,180 Amounts included in: Cash equivalents $ 39,886 $ 1 $ — $ 39,887 Investments 482,996 133 (836 ) 482,293 Total $ 522,882 $ 134 $ (836 ) $ 522,180 December 31, 2018 Amortized Unrealized Unrealized Fair Cost Gain Loss Value 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 Time deposits 108,638 — — 108,638 Total $ 1,002,521 $ 58 $ (3,104 ) $ 999,475 Amounts included in: Cash equivalents $ 60,532 $ — $ (1 ) $ 60,531 Investments 941,989 58 (3,103 ) 938,944 Total $ 1,002,521 $ 58 $ (3,104 ) $ 999,475 The estimated fair value of marketable debt securities by maturity date is as follows (in thousands): March 30, 2019 December 31, 2018 Due in one year or less $ 437,648 $ 797,649 Due after one year through three years 84,532 201,826 Total $ 522,180 $ 999,475 |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 4 Inventories Inventories are classified as follows (in thousands): March 30, 2019 December 31, 2018 Raw materials $ 119,101 $ 111,641 Work in progress 18,314 15,552 Finished goods 195,893 164,376 Total inventories $ 333,308 $ 291,569 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | 5 Goodwill and Other Intangibles The carrying amount of goodwill was $357 million and $356 million at March 30, 2019 and December 31, 2018, respectively. During the three months ended March 30, 2019, the effect of foreign currency translation increased goodwill by $1 million. The Company’s intangible assets included in the consolidated balance sheets are detailed as follows (dollars in thousands): March 30, 2019 December 31, 2018 Weighted- Weighted- Gross Average Gross Average Carrying Accumulated Amortization Carrying Accumulated Amortization Amount Amortization Period Amount Amortization Period Capitalized software $ 456,388 $ 311,229 5 years $ 454,307 $ 307,634 5 years Purchased intangibles 201,126 145,970 11 201,566 144,184 11 Trademarks and IPR&D 13,817 — — 13,677 — — Licenses 5,710 5,119 6 5,568 4,875 6 Patents and other intangibles 79,940 51,248 8 77,753 49,276 8 Total $ 756,981 $ 513,566 7 $ 752,871 $ 505,969 7 The gross carrying value of intangible assets and accumulated amortization for intangible assets decreased by $7 million and $5 million, respectively, in the three months ended March 30, 2019 due to the effects of foreign currency translation. Amortization expense for intangible assets was $13 million for both the three months ended March 30, 2019 and March 31, 2018. Amortization expense for intangible assets is estimated to be $52 million per year for each of the next five years. |
Debt
Debt | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 6 Debt In November 2017, the Company entered into a new credit agreement (the “2017 Credit Agreement”) that provides for a $1.5 billion revolving facility and a $300 million term loan. The revolving facility and term loan both mature on November 30, 2022 and require no scheduled prepayments before that date. The interest rates applicable to the 2017 Credit Agreement are, at the Company’s option, equal to either the alternate base rate (which is a rate per annum equal to the greatest of (a) the prime rate in effect on such day, (b) the Federal Reserve Bank of New York Rate on such day plus 1/2 of 1% per annum and (c) the adjusted LIBO rate on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in U.S. dollars with a maturity of one month plus 1% per annum) or the applicable 1, 2, 3 or 6 month adjusted LIBO rate or EURIBO rate for Euro-denominated loans, in each case, plus an interest rate margin based upon the Company’s leverage ratio, which can range between 0 and 12.5 basis points for alternate base rate loans and between 80 and 112.5 basis points for LIBO rate or EURIBO rate loans. The facility fee on the 2017 Credit Agreement ranges between 7.5 and 25 basis points per annum, based on the leverage ratio, of the amount of the revolving facility commitments and the outstanding term loan. The 2017 Credit Agreement requires that the Company comply with an interest coverage ratio test of not less than 3.50:1 as of the end of any fiscal quarter for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. In addition, the 2017 Credit Agreement includes negative covenants, affirmative covenants, representations and warranties and events of default that are customary for investment grade credit facilities. As of both March 30, 2019 and December 31, 2018, the Company had a total of $560 million of outstanding senior unsecured notes. Interest on the fixed rate senior unsecured notes is payable semi-annually each year. Interest on the floating rate senior unsecured notes is payable quarterly. The Company may prepay all or some of the senior unsecured notes at any time in an amount not less than 10% of the aggregate principal amount outstanding, plus the applicable make-whole amount or prepayment premium for Series H and J senior unsecured notes. In the event of a change in control of the Company (as defined in the note purchase agreement), the Company may be required to prepay the senior unsecured notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. These senior unsecured notes require that the Company comply with an interest coverage ratio test of not less than 3.50:1 for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. In addition, these senior unsecured notes include customary negative covenants, affirmative covenants, representations and warranties and events of default. In February 2019, certain defined terms related to the subsidiary guarantors were amended in the 2017 Credit Agreement and senior unsecured note agreements. In addition, the Company amended the senior unsecured note agreements to allow the Company to elect an increase in the permitted leverage ratio from 3.50:1 to 4.0:1, for a period of three consecutive quarters, for a material acquisition of $400 million or more. During the period of time where the leverage ratio exceeds 3.50:1, the interest payable on the senior unsecured notes shall increase by 0.50%. The debt covenants in the senior unsecured note agreements were also modified to address the change in accounting guidance for leases. In 2018, the Company entered into three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $300 The Company had the following outstanding debt at March 30, 2019 and December 31, 2018 (in thousands): March 30, 2019 December 31, 2018 Foreign subsidiary lines of credit $ 263 $ 178 Senior unsecured notes - Series B - 5.00%, due February 2020 100,000 — Total notes payable and debt, current 100,263 178 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 Credit agreement 590,000 590,000 Unamortized debt issuance costs (1,717 ) (1,828 ) Total long-term debt 1,048,283 1,148,172 Total debt $ 1,148,546 $ 1,148,350 * Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. As of both March 30, 2019 and December 31, 2018, the Company had a total amount available to borrow under the 2017 Credit Agreement of $1,208 million after outstanding letters of credit. The weighted-average interest rates applicable to the senior unsecured notes and credit agreement borrowings collectively were 3.80% and 3.83% at March 30, 2019 and December 31, 2018, respectively. As of March 30, 2019, the Company was in compliance with all debt covenants. The Company and its foreign subsidiaries also had available short-term lines of credit totaling $90 million at both March 30, 2019 and December 31, 2018, for the purpose of short-term borrowing and issuance of commercial guarantees. The weighted-average interest rates applicable to these short-term borrowings were 4.44% and 1.88% for March 30, 2019 and December 31, 2018, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7 Income Taxes The four principal jurisdictions in which the Company manufactures are the U.S., Ireland, the U.K. and Singapore, where the statutory tax rates are 21%, 12.5%, 19% and 17%, respectively, as of March 30, 2019. The Company has a contractual tax rate of 0% on qualifying activities in Singapore through March 2021, based upon the achievement of certain contractual milestones, which the Company expects to continue to meet. The effect of applying the contractual tax rate rather than the statutory tax rate to income from qualifying activities in Singapore increased the Company’s net income for the three months ended March 30, 2019 and March 31, 2018 by $ 4 million and $6 million, respectively, and increased the Company’s net income per diluted share by $0.06 and $0.07, respectively. The Company’s effective tax rate for the three months ended March 30, 2019 and March 31, 2018 was 7.1% and 20.3%, respectively. The Company accounts for its uncertain tax positions in accordance with the accounting standards for income taxes, which require financial statement reporting of the expected future tax consequences of uncertain tax positions on the presumption that all concerned tax authorities possess full knowledge of those tax positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of unrecognized tax benefits associated with those positions for the time value of money. The Company continues to classify interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The following is a summary of the activity of the Company’s uncertain tax positions for the three months ended March 30, 2019 and March 31, 2018 (in thousands): March 30, 2019 March 31, 2018 Balance at the beginning of the period $ 26,108 $ 5,843 Net reductions for lapse of statutes taken during the period (43 ) (83 ) Net additions for tax positions taken during the current period 325 177 Balance at the end of the period $ 26,390 $ 5,937 With limited exceptions, the Company is no longer subject to tax audit examinations in significant jurisdictions for the years ended on or before December 31, 2013. However, carryforward tax attributes that were generated in years beginning on or before January 1, 2014 may still be adjusted upon examination by tax authorities if the attributes are utilized. The Company continuously monitors the lapsing of statutes of limitations on potential tax assessments for related changes in the measurement of unrecognized tax benefits, related net interest and penalties, and deferred tax assets and liabilities. As of March 30, 2019, the Company expects to record additional reductions in the measurement of its unrecognized tax benefits and related net interest and penalties of less than $1 million within the next twelve months due to potential tax audit settlements and the lapsing of statutes of limitations on potential tax assessments. The Company does not expect to record any other material reductions in the measurement of its unrecognized tax benefits within the next twelve months. |
Leases
Leases | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 8 Leases The Company adopted new accounting guidance regarding the accounting for leases as of January 1, 2019 using a modified retrospective transition approach that was applied to leases existing as of, or entered into after, January 1, 2019. The Company elected the package of transition provisions available for expired or existing contracts, which allowed the Company to carryforward historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Upon adoption, the Company recorded a right-of-use lease asset and lease liabilities in the amount $100 million as of January 1, 2019. The adoption of this standard did not have a material impact on the Company’s results of operations, cash flows and retained earnings. Prior to the adoption of the new lease accounting standard, undiscounted future minimum rents payable as of December 31, 2018 under non-cancelable leases with initial terms exceeding one year were as follows (in thousands): 2019 $ 28,417 2020 23,424 2021 16,032 2022 11,816 2023 and thereafter 23,269 Total future minimum lease payments $ 102,958 The Company’s operating leases consist of property leases for sales, demonstration, laboratory, warehouse and office spaces, automotive leases for sales and service personnel and equipment leases, primarily used in our manufacturing and distribution operations. The lease policies described below were effective as of January 1, 2019. For leases with terms greater than 12 months, the Company recorded the related right-of-use asset and lease liability obligation at the present value of lease payments over the term of the leases. Some of the Company’s leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments. A certain number of these leases contain rent escalation clauses, either fixed or adjusted periodically for inflation of market rates, that are factored into the Company’s determination of lease payments. The Company also has variable lease payments that do not depend on a rate or index, primarily for items such as common area maintenance and real estate taxes, which are recorded as variable costs when incurred. In addition, the Company’s lease agreements that contain lease and non-lease components are generally accounted for as a single lease component. The Company has elected not to apply the recognition requirements of the new accounting guidance to leases with terms less than 12 months. For these leases, the Company recognizes lease payments in net income on a straight-line basis over the term of the lease. As of March 30, 2019 and March 31, 2018, the Company does not have leases that are classified as finance leases. When available, the Company uses the rate implicit in the lease to discount lease payments to determine the present value of the lease liabilities; however, most of the leases do not provide a readily determinable implicit rate and, as required by the accounting guidance, the Company estimated its incremental secured borrowing rate to discount the lease payments based on information available at lease commencement (or, for the leases in existence on the adoption date, the January 1, 2019 information). The Company’s incremental borrowing rate reflects the estimated rate of interest that the Company would pay to borrow on a collateralized basis over a similar term to the lease payments in a similar economic environment. As of March 30, 2019, the Company has lease agreements that expire at various dates through 2033, with a weighted-average remaining lease term of 4.8 years. Rental expense was $9 million for the three months ended March 30, 2019 under the new lease accounting standard and $7 million for the three months ended March 31, 2018 under the previous lease accounting standard. The weighted-average discount rate used to determine the present value of lease liabilities was 3.95%. Cash paid for amounts included in the measurement of lease liabilities in operating activities in the statement of cash flows was $9 million during the three months ended March 30, 2019. The Company’s right-of-use lease assets and lease liabilities included in the consolidated balance sheets are classified as follows (in thousands): Financial Statement Classification March 30, 2019 Assets: Property operating lease assets Operating lease assets $ 64,439 Automobile operating lease assets Operating lease assets 27,573 Equipment operating lease assets Operating lease assets 2,668 Total lease assets $ 94,680 Liabilities: Current operating lease liabilities Current operating lease liabilities $ 26,926 Long-term operating lease liabilities Long-term operating lease liabilities 67,788 Total lease liabilities $ 94,714 Undiscounted future minimum rents payable as of March 30, 2019 under non-cancelable leases with initial terms exceeding one year reconcile to lease liabilities included in the consolidated balance sheet as follows (in thousands): 2019 (remaining 9 months) $ 22,145 2020 25,541 2021 16,426 2022 11,579 2023 6,039 2024 and thereafter 23,816 Total future minimum lease payments 105,546 Less: amount of lease payments representing interest (10,832 ) Present value of future minimum lease payments 94,714 Less: current operating lease liabilities (26,926 ) Long-term operating lease liabilities $ 67,788 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 9 Stock-Based Compensation The Company maintains various shareholder-approved, stock-based compensation plans which allow for the issuance of incentive or non-qualified The Company accounts for stock-based compensation costs in accordance with the accounting standards for stock-based compensation, which require that all share-based payments to employees be recognized in the statements of operations, based on their grant date fair values. The Company recognizes the expense using the straight-line attribution method. The stock-based compensation expense recognized in the consolidated statements of operations is based on awards that ultimately are expected to vest; therefore, the amount of expense has been reduced for estimated forfeitures. Forfeitures are estimated based on historical experience. If actual results differ significantly from these estimates, stock-based compensation expense and the Company’s results of operations could be materially impacted. In addition, if the Company employs different assumptions in the application of these standards, the compensation expense that the Company records in the future periods may differ significantly from what the Company has recorded in the current period. The consolidated statements of operations for the three months ended March 30, 2019 and March 31, 2018 include the following stock-based compensation expense related to stock option awards, restricted stock awards, restricted stock unit awards, performance stock unit awards and the employee stock purchase plan (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Cost of sales $ 575 $ 605 Selling and administrative expenses 8,125 8,483 Research and development expenses 1,241 804 Total stock-based compensation $ 9,941 $ 9,892 Stock Options In determining the fair value of the stock options, the Company makes a variety of assumptions and estimates, including volatility measures, expected yields and expected stock option lives. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model. The Company uses implied volatility on its publicly-traded options as the basis for its estimate of expected volatility. The Company believes that implied volatility is the most appropriate indicator of expected volatility because it is generally reflective of historical volatility and expectations of how future volatility will differ from historical volatility. The expected life assumption for grants is based on historical experience for the population of non-qualified zero-coupon Three Months Ended Options Issued and Significant Assumptions Used to Estimate Option Fair Values March 30, 2019 March 31, 2018 Options issued in thousands 136 133 Risk-free interest rate 2.5 % 2.7 % Expected life in years 5 6 Expected volatility 24.2 % 23.2 % Expected dividends — — Three Months Ended Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant March 30, 2019 March 31, 2018 Exercise price $ 232.08 $ 206.66 Fair value $ 61.97 $ 58.38 The following table summarizes stock option activity for the plans for the three months ended March 30, 2019 (in thousands, except per share data): Number of Shares Exercise Price per Share Weighted-Average Outstanding at December 31, 2018 1,790 $ 38.09 to $ 208.47 $ 142.47 Granted 136 $ 183.41 to $ 238.52 $ 232.08 Exercised (239 ) $ 38.09 to $ 208.47 $ 108.57 Outstanding at March 30, 2019 1,687 $ 61.63 to $ 238.52 $ 154.42 Restricted Stock During the three months ended March 30, 2019, the Company granted five thousand shares of restricted stock. The weighted-average fair value per share of these awards on the grant date was $183.41. Restricted Stock Units The following table summarizes the unvested restricted stock unit award activity for the three months ended March 30, 2019 (in thousands, except per share data): Shares Weighted-Average Unvested at December 31, 2018 304 $ 153.31 Granted 78 $ 238.52 Vested (102 ) $ 138.48 Forfeited (6 ) $ 158.22 Unvested at March 30, 2019 274 $ 182.98 Restricted stock units are generally granted annually in February and vest in equal annual installments over a five-year period. Performance Stock Units The Company’s performance stock units are equity compensation awards with a market vesting condition based on the Company’s Total Shareholder Return (“TSR”) relative to the TSR of the components of the S&P Health Care Index. TSR is the change in value of a stock price over time, including the reinvestment of dividends. The vesting schedule ranges from 0% to 200% of the target shares awarded. In determining the fair value of the performance stock units, the Company makes a variety of assumptions and estimates, including volatility measures, expected yields and expected terms. The fair value of each performance stock unit grant was estimated on the date of grant using the Monte Carlo simulation model. The Company uses implied volatility on its publicly-traded options as the basis for its estimate of expected volatility. The Company believes that implied volatility is the most appropriate indicator of expected volatility because it is generally reflective of historical volatility and expectations of how future volatility will differ from historical volatility. The expected life assumption for grants is based on the performance period of the underlying performance stock units. The risk-free interest rate is the yield currently available on U.S. Treasury zero-coupon Three Months Ended Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values March 30, 2019 March 31, 2018 Performance stock units issued (in thousands) 12 15 Risk-free interest rate 2.4 % 2.0 % Expected life in years 2.8 2.9 Expected volatility 23.5 % 18.0 % Average volatility of peer companies 26.2 % 25.8 % Correlation coefficient 34.2 % 37.4 % Expected dividends — — The following table summarizes the unvested performance stock unit award activity for the three months ended March 30, 2019 (in thousands, except per share data): Shares Weighted-Average Unvested at December 31, 2018 100 $ 212.34 Granted 12 $ 391.21 Unvested at March 30, 2019 112 $ 231.50 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10 Earnings Per Share Basic and diluted EPS calculations are detailed as follows (in thousands, except per share data): Three Months Ended March 30, 2019 Net Income (Numerator) Weighted- Average Shares (Denominator) Per Share Amount Net income per basic common share $ 108,986 71,704 $ 1.52 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 711 (0.01 ) Net income per diluted common share $ 108,986 72,415 $ 1.51 Three Months Ended March 31, 2018 Net Income (Numerator) Weighted- Average Shares (Denominator) Per Share Amount Net income per basic common share $ 111,951 78,883 $ 1.42 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 832 (0.02 ) Net income per diluted common share $ 111,951 79,715 $ 1.40 For the three months ended March 30, 2019 and March 31, 2018, the Company had 0.1 million and 0.3 million stock options that were antidilutive, respectively, due to having higher exercise prices than the Company’s average stock price during the period. These securities were not included in the computation of diluted EPS. The effect of dilutive securities was calculated using the treasury stock method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 11 Accumulated Other Comprehensive Income The components of accumulated other comprehensive income (loss) are detailed as follows (in thousands): Currency Translation Unrealized Gain (Loss) on Retirement Plans Unrealized Gain (Loss) on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2018 $ (105,697 ) $ (9,869 ) $ (2,405 ) $ (117,971 ) Other comprehensive income, net of tax 7,522 8 1,797 9,327 Balance at March 30, 2019 $ (98,175 ) $ (9,861 ) $ (608 ) $ (108,644 ) |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | 12 Retirement Plans The Company sponsors various retirement plans. The components of net periodic benefit cost other than the service cost component are included in other (expense) income in the consolidated statements of operations. The summary of the components of net periodic pension costs for the plans for the three months ended March 30, 2019 and March 31, 2018 is as follows (in thousands): Three Months Ended March 30, 2019 March 31, 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 Service cost $ — $ 142 $ 1,082 $ 142 $ 132 $ 1,374 Interest cost 13 159 434 1,619 156 428 Expected return on plan assets — (177 ) (543 ) (2,785 ) (178 ) (493 ) Net amortization: Prior service credit — (5 ) (37 ) — (8 ) (31 ) Net actuarial loss — — 135 769 — 177 Net periodic pension cost (benefit) $ 13 $ 119 $ 1,071 $ (255 ) $ 102 $ 1,455 In 2018, the Company terminated and settled its frozen U.S. defined benefit pension plan, the Waters Retirement Plan, by making lump-sum cash payments and purchasing annuity contracts for participants to permanently extinguish the pension plan’s obligations. The Company also anticipates that it will settle the Waters Retirement Restoration Plan during 2019, and the Company may incur pension accounting charges in connection with the termination of this plan. During fiscal year 2019, the Company expects to contribute a total of approximately $3 million to $6 million to the Company’s defined benefit plans. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | 13 Business Segment Information The Company’s business activities, for which discrete financial information is available, are regularly reviewed and evaluated by the chief operating decision maker. As a result of this evaluation, the Company determined that it has two operating segments: Waters TM TM The Waters operating segment is primarily in the business of designing, manufacturing, selling and servicing LC and MS instruments, columns and other precision chemistry consumables that can be integrated and used along with other analytical instruments. The TA operating segment is primarily in the business of designing, manufacturing, selling and servicing thermal analysis, rheometry and calorimetry instruments. The Company’s two operating segments have similar economic characteristics; product processes; products and services; types and classes of customers; methods of distribution; and regulatory environments. Because of these similarities, the two segments have been aggregated into one reporting segment for financial statement purposes. Please refer to the consolidated financial statements for financial information regarding the one reportable segment of the Company. Net sales for the Company’s products and services are as follows for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Product net sales: Waters instrument systems $ 184,612 $ 198,103 Chemistry consumables 99,253 98,710 TA instrument systems 36,638 42,304 Total product sales 320,503 339,117 Service net sales: Waters service 176,049 174,333 TA service 17,310 17,220 Total service sales 193,359 191,553 Total net sales $ 513,862 $ 530,670 Net sales are attributable to geographic areas based on the region of destination. Geographic sales information is presented below for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Net Sales: Asia: China $ 90,091 $ 93,828 Japan 43,504 42,765 Asia Other 66,917 63,687 Total Asia 200,512 200,280 Americas: United States 149,157 146,821 Americas Other 32,711 34,889 Total Americas 181,868 181,710 Europe 131,482 148,680 Total net sales $ 513,862 $ 530,670 Net sales by customer class are as follows for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Pharmaceutical $ 294,512 $ 305,328 Industrial 155,218 162,330 Academic and governmental 64,132 63,012 Total net sales $ 513,862 $ 530,670 Net sales for the Company recognized at a point in time versus over time are as follows for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Net sales recognized at a point in time: Instrument systems $ 221,250 $ 240,407 Chemistry consumables 99,253 98,710 Service sales recognized at a point in time (time & materials) 72,759 72,518 Total net sales recognized at a point in time 393,262 411,635 Net sales recognized over time: Service and software sales recognized over time (contracts) 120,600 119,035 Total net sales $ 513,862 $ 530,670 |
Recent Accounting Standard Chan
Recent Accounting Standard Changes and Developments | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Standard Changes and Developments | 14 Recent Accounting Standard Changes and Developments Recently Adopted Accounting Standards In February 2016, accounting guidance was issued regarding the accounting for leases. This new comprehensive lease standard amends various aspects of existing accounting guidance for leases. The core principle of the new guidance requires lessees to present the assets and liabilities that arise from leases on their balance sheets. This guidance was effective for annual and interim reporting periods beginning after December 15, 2018. The Company has adopted this standard using a modified retrospective transition approach to be applied to leases existing as of, or entered into after, January 1, 2019. The adoption of this standard did have a material effect on the Company’s balance sheet by recording a right-of-use lease asset and lease liabilities in the amount $100 million as of January 1, 2019; however, it did not have a material impact on the Company’s results of operations, cash flows and retained earnings. In March 2017, accounting guidance was issued to amend the amortization period for certain purchased callable debt securities held at a premium. Specifically, the amortization period for certain callable debt securities was shortened to end at the earliest call date. This guidance was effective for annual and interim periods beginning after December 15, 2018. The Company adopted this standard as of January 1, 2019 and the adoption of this standard did not have a material impact on the Company’s financial position, results of operations and cash flows. In February 2018, accounting guidance was issued to address the impact of the 2017 Tax Act on items recorded in accumulated other comprehensive income. Current accounting guidance requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect recorded in income from continuing operations, even if the related tax effects were originally recognized in other comprehensive income, the new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Act. This guidance was effective for annual and interim periods beginning after December 15, 2018. The Company adopted this standard as of January 1, 2019 and Recently Issued Accounting Standards In June 2016, accounting guidance was issued that modifies the recognition of credit losses related to financial assets, such as debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, and other financial assets that have the contractual right to receive cash. Current guidance requires the recognition of a credit loss when it is considered probable that a loss event has occurred. The new guidance requires the measurement of expected credit losses to be based upon relevant information, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the asset. As such, expected credit losses may be recognized sooner under the new guidance due to the broader range of information that will be required to determine credit loss estimates. The new guidance also amends the current other-than-temporary impairment model used for debt securities classified as available-for-sale. When the fair value of an available-for-sale debt security is below its amortized cost, the new guidance requires the total unrealized loss to be bifurcated into its credit and non-credit components. Any expected credit losses or subsequent recoveries will be recognized in earnings and any changes not considered credit related will continue to be recognized within other comprehensive income. This guidance is effective for annual and interim periods beginning after December 15, 2019. The Company currently does not expect that the adoption of this standard will have a material effect on the Company’s financial position, results of operations and cash flows. In January 2017, accounting guidance was issued that simplifies the accounting for goodwill impairment. The guidance eliminates step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. This guidance is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted. The Company currently does not expect that the adoption of this standard will have a material effect on the Company’s financial position, results of operations and cash flows. In August 2018, accounting guidance was issued that modifies the disclosure requirements of fair value measurements. The amendments remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosure and add disclosure requirements identified as relevant. This guidance is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted. The Company does not expect that the adoption of this standard will have a material impact on the Company’s financial position, results of operations and cash flows. In August 2018, accounting guidance was issued that modifies the disclosure requirements of retirement benefit plans. The amendments remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosure and add disclosure requirement identified as relevant. This guidance is effective for annual and interim periods beginning after December 15, 2020 and early adoption is permitted. The Company does not expect that the adoption of this standard will have a material impact on the Company’s financial position, results of operations and cash flows. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Period | The Company’s interim fiscal quarter typically ends on the thirteenth Saturday of each quarter. Since the Company’s fiscal year end is December 31, the first and fourth fiscal quarters may have more or less than thirteen complete weeks. The Company’s first fiscal quarters for 2019 and 2018 ended on March 30, 2019 and March 31, 2018, respectively. |
Basis of Accounting | The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on Form 10-Q and do not include all of the information and footnote disclosures required for annual financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America. It is management’s opinion that the accompanying interim consolidated financial statements reflect all adjustments (which are normal and recurring) that are necessary for a fair statement of the results for the interim periods. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2018, as filed with the U.S. Securities and Exchange Commission (“SEC”) on March 1, 2019. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its subsidiaries, which are wholly owned. All inter-company balances and transactions have been eliminated. |
Use of Estimates | The preparation of consolidated financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities at the dates of the financial statements. Actual amounts may differ from these estimates under different assumptions or conditions. |
Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency of each of the Company’s foreign operating subsidiaries is the local currency of its country of domicile, except for the Company’s subsidiaries in Hong Kong, Singapore and the Cayman Islands, where the underlying transactional cash flows are denominated in currencies other than the respective local currency of domicile. The functional currency of the Hong Kong, Singapore and Cayman Islands subsidiaries is the U.S. dollar, based on the respective entity’s cash flows. For most of the Company’s foreign operations, assets and liabilities are translated into U.S. dollars at exchange rates prevailing on the balance sheet date, while revenues and expenses are translated at average exchange rates prevailing during the respective period. Any resulting translation gains or losses are included in accumulated other comprehensive income in the consolidated balance sheets. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Cash equivalents represent highly liquid investments, with original maturities of 90 days or less, while investments with longer maturities are classified as investments. The Company maintains cash balances in various operating accounts in excess of federally insured limits, and in foreign subsidiary accounts in currencies other than the U.S. dollar. As of March 30, 2019 and December 31, 2018, $411 million out of $1,167 million and $471 million out of $1,735 million, respectively, of the Company’s total cash, cash equivalents and investments were held by foreign subsidiaries. In addition, $263 million out of $1,167 million and $251 million out of $1,735 million of cash, cash equivalents and investments were held in currencies other than the U.S. dollar at March 30, 2019 and December 31, 2018, respectively. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company has very limited use of rebates and other cash considerations payable to customers and, as a result, the transaction price determination does not have any material variable consideration. The allowance for doubtful accounts is the best estimate of the amount of probable credit losses in the existing accounts receivable. The allowance is based on a number of factors, including historical experience and the customer’s credit-worthiness. The allowance for doubtful accounts is reviewed on at least a quarterly basis. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. Account balances are charged against the allowance when the Company determines it is probable that the receivable will not be recovered. The Company does not have any off-balance sheet credit exposure related to its customers. Historically, the Company has not experienced significant bad debt losses. The following is a summary of the activity of the Company’s allowance for doubtful accounts for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Balance at Balance at Beginning End of of Period Additions Deduction Period Allowance for Doubtful Accounts March 30, 2019 $ 7,663 $ 2,159 $ (2,324 ) $ 7,498 March 31, 2018 $ 6,109 $ 1,056 $ (1,033 ) $ 6,132 |
Income Taxes | The Company accounts for its uncertain tax positions in accordance with the accounting standards for income taxes, which require financial statement reporting of the expected future tax consequences of uncertain tax positions on the presumption that all concerned tax authorities possess full knowledge of those tax positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of unrecognized tax benefits associated with those positions for the time value of money. The Company continues to classify interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. |
Fair Value Measurements | Fair Value Measurements In accordance with the accounting standards for fair value measurements and disclosures, certain of the Company’s assets and liabilities are measured at fair value on a recurring basis as of March 30, 2019 and December 31, 2018. Fair values determined by Level 1 inputs utilize observable data, such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points for which there is little or no market data, which require the reporting entity to develop its own assumptions. The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at March 30, 2019 (in thousands): Quoted Prices in Active Significant Markets Other Significant Total at for Identical Observable Unobservable March 30, Assets Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Assets: U.S. Treasury securities $ 98,576 $ — $ 98,576 $ — Foreign government securities 3,476 — 3,476 — Corporate debt securities 367,621 — 367,621 — Time deposits 52,507 — 52,507 — Waters 401(k) Restoration Plan assets 33,951 33,951 — — Foreign currency exchange contracts 355 — 355 — Interest rate cross-currency swap agreements 7,120 — 7,120 — Total $ 563,606 $ 33,951 $ 529,655 $ — Liabilities: Contingent consideration $ 2,591 $ — $ — $ 2,591 Foreign currency exchange contracts 619 — 619 — Total $ 3,210 $ — $ 619 $ 2,591 The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2018 (in thousands): Quoted Prices in Active Significant Markets Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2018 (Level 1) (Level 2) (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 Fair Value of 401(k) Restoration Plan Assets The 401(k) Restoration Plan is a nonqualified defined contribution plan and the assets were held in registered mutual funds and have been classified as Level 1. The fair values of the assets in the plan are determined through market and observable sources from daily quoted prices on nationally recognized securities exchanges. Fair Value of Cash Equivalents, Investments, Foreign Currency Exchange Contracts and Interest Rate Cross-Currency Swap Agreements The fair values of the Company’s cash equivalents, investments and foreign currency exchange contracts are determined through market and observable sources and have been classified as Level 2. These assets and liabilities have been initially valued at the transaction price and subsequently valued, typically utilizing third-party pricing services. The pricing services use many inputs to determine value, including reportable trades, benchmark yields, credit spreads, broker/dealer quotes, current spot rates and other industry and economic events. The Company validates the prices provided by third-party pricing services by reviewing their pricing methods and obtaining market values from other pricing sources. Fair Value of Contingent Consideration The fair value of the Company’s liability for contingent consideration relates to earnout payments in connection with the July 2014 acquisition of Medimass Research, Development and Service Kft. and is determined using a probability-weighted discounted cash flow model, which uses significant unobservable inputs, and has been classified as Level 3. Subsequent changes in the fair value of the contingent consideration liability are recorded in the results of operations. The fair value of the contingent consideration liability associated with future earnout payments is based on several factors, including the estimated future results and a discount rate that reflects both the likelihood of achieving the estimated future results and the Company’s creditworthiness. A change in any of these unobservable inputs can significantly change the fair value of the contingent consideration. Although there is no contractual limit, the fair value of future contingent consideration payments was estimated to be $3 million and $2 million at March 30, 2019 and December 31, 2018, respectively, based on the Company’s best estimate, as the earnout is based on future sales of certain products, some of which are currently in development, through 2034. Fair Value of Other Financial Instruments The Company’s accounts receivable, accounts payable and variable interest rate debt are recorded at cost, which approximates fair value due to their short-term nature. The carrying value of the Company’s fixed interest rate debt was $510 million at both March 30, 2019 and December 31, 2018, respectively. The fair value of the Company’s fixed interest rate debt was estimated using discounted cash flow models, based on estimated current rates offered for similar debt under current market conditions for the Company. The fair value of the Company’s fixed interest rate debt was estimated to be $508 million and $502 million at March 30, 2019 and December 31, 2018, respectively, using Level 2 inputs. |
Derivative Transactions | Derivative Transactions The Company is a global company that operates in over 35 countries and, as a result, the Company’s net sales, cost of sales, operating expenses and balance sheet amounts are significantly impacted by fluctuations in foreign currency exchange rates. The Company is exposed to currency price risk on foreign currency exchange rate fluctuations when it translates its non-U.S. dollar foreign subsidiaries’ financial statements into U.S. dollars, and when any of the Company’s subsidiaries purchase or sell products or services in a currency other than its own currency. The Company’s principal strategies in managing exposures to changes in foreign currency exchange rates are to (1) naturally hedge the foreign-currency-denominated liabilities on the Company’s balance sheet against corresponding assets of the same currency, such that any changes in liabilities due to fluctuations in foreign currency exchange rates are typically offset by corresponding changes in assets and (2) mitigate foreign exchange risk exposure of international operations by hedging the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. The Company presents the derivative transactions in financing activities in the statement of cash flows. Foreign Currency Exchange Contracts The Company does not specifically enter into any derivatives that hedge foreign-currency-denominated operating assets, liabilities or commitments on its balance sheet, other than a portion of certain third-party accounts receivable and accounts payable, and the Company’s net worldwide intercompany receivables and payables, which are eliminated in consolidation. The Company periodically aggregates its net worldwide balances by currency and then enters into foreign currency exchange contracts that mature within 90 days to hedge a portion of the remaining balance to minimize some of the Company’s currency price risk exposure. The foreign currency exchange contracts are not designated for hedge accounting treatment. Principal hedged currencies include the Euro, Japanese yen, British pound, Mexican peso and Brazilian real. Interest Rate Cross-Currency Swap Agreements In 2018, the Company entered into three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $300 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. Under hedge accounting, the change in fair value of the derivative that relates to changes in the foreign currency spot rate are recorded in the currency translation adjustment in other comprehensive income and remain in accumulated comprehensive income in stockholders’ equity until the sale or substantial liquidation of the foreign operation. The difference between the interest rate received and paid under the interest rate cross-currency swap derivative agreement is recorded in interest income in the statement of operations. The Company’s foreign currency exchange contracts and interest rate cross-currency swap agreements included in the consolidated balance sheets are classified as follows (in thousands): March 30, 2019 December 31, 2018 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 34,219 $ 355 $ 112,212 $ 503 Other current liabilities $ 98,745 $ 619 $ 40,175 $ 224 Interest rate cross-currency swap agreements: Other assets $ 300,000 $ 7,120 $ 300,000 $ 1,093 Accumulated other comprehensive income $ (7,120 ) $ (1,093 ) The following is a summary of the activity included in the statements of comprehensive income related to the foreign currency exchange contracts (in thousands): Financial Statement Classification Three Months Ended March 30, 2019 March 31, 2018 Foreign currency exchange contracts: Realized (losses) gains on closed contracts Cost of sales $ (543 ) $ 1,937 Unrealized gains (losses) on open contracts Cost of sales 526 (985 ) Cumulative net pre-tax (losses) gains Cost of sales $ (17 ) $ 952 Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,227 $ — Unrealized gains on contracts Stockholders’ equity $ 7,120 $ — In April 2019, the Company entered into three-year interest rate cross-currency swap derivative agreements with a notional value of $110 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. |
Stockholders' Equity | Stockholders’ Equity In January 2019, the Company’s Board of Directors authorized the Company to repurchase up to $4 billion of its outstanding common stock over a two-year period. This new program replaced the remaining amounts available from the pre-existing program. During the three months ended March 30, 2019 and March 31, 2018, the Company repurchased 3.3 million and 1.3 million shares of the Company’s outstanding common stock at a cost of $747 million and $275 million, respectively, under the January 2019 authorization and other previously announced programs. As of March 30, 2019, the Company had repurchased an aggregate of 2.5 million shares at a cost of $598 million under the January 2019 repurchase program and had a total of $3.4 billion authorized for future repurchases. In addition, the Company repurchased $8 million of common stock related to the vesting of restricted stock units during both the three months ended March 30, 2019 and March 31, 2018, respectively. The Company believes that it has the financial flexibility to fund these share repurchases given current cash levels and debt borrowing capacity, as well as to invest in research, technology and business acquisitions. As of March 30, 2019, the Company accrued $25 million as a result of treasury stock purchases that were settled in the second quarter of 2019. |
Product Warranty Costs | Product Warranty Costs The Company accrues estimated product warranty costs at the time of sale, which are included in cost of sales in the consolidated statements of operations. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. The amount of the accrued warranty liability is based on historical information, such as past experience, product failure rates, number of units repaired and estimated costs of material and labor. The liability is reviewed for reasonableness at least quarterly. The following is a summary of the activity of the Company’s accrued warranty liability for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Balance at Balance at Beginning Accruals for Settlements End of of Period Warranties Made Period Accrued warranty liability: March 30, 2019 $ 12,300 $ 1,500 $ (2,338 ) $ 11,462 March 31, 2018 $ 13,026 $ 1,767 $ (2,167 ) $ 12,626 |
Stock-based Compensation | The Company accounts for stock-based compensation costs in accordance with the accounting standards for stock-based compensation, which require that all share-based payments to employees be recognized in the statements of operations, based on their grant date fair values. The Company recognizes the expense using the straight-line attribution method. The stock-based compensation expense recognized in the consolidated statements of operations is based on awards that ultimately are expected to vest; therefore, the amount of expense has been reduced for estimated forfeitures. Forfeitures are estimated based on historical experience. If actual results differ significantly from these estimates, stock-based compensation expense and the Company’s results of operations could be materially impacted. In addition, if the Company employs different assumptions in the application of these standards, the compensation expense that the Company records in the future periods may differ significantly from what the Company has recorded in the current period. In determining the fair value of the stock options, the Company makes a variety of assumptions and estimates, including volatility measures, expected yields and expected stock option lives. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model. The Company uses implied volatility on its publicly-traded options as the basis for its estimate of expected volatility. The Company believes that implied volatility is the most appropriate indicator of expected volatility because it is generally reflective of historical volatility and expectations of how future volatility will differ from historical volatility. The expected life assumption for grants is based on historical experience for the population of non-qualified stock option exercises. The risk-free interest rate is the yield currently available on U.S. Treasury zero-coupon issues with a remaining term approximating the expected term used as the input to the Black-Scholes model. Performance Stock Units The Company’s performance stock units are equity compensation awards with a market vesting condition based on the Company’s Total Shareholder Return (“TSR”) relative to the TSR of the components of the S&P Health Care Index. TSR is the change in value of a stock price over time, including the reinvestment of dividends. The vesting schedule ranges from 0% to 200% of the target shares awarded. In determining the fair value of the performance stock units, the Company makes a variety of assumptions and estimates, including volatility measures, expected yields and expected terms. The fair value of each performance stock unit grant was estimated on the date of grant using the Monte Carlo simulation model. The Company uses implied volatility on its publicly-traded options as the basis for its estimate of expected volatility. The Company believes that implied volatility is the most appropriate indicator of expected volatility because it is generally reflective of historical volatility and expectations of how future volatility will differ from historical volatility. The expected life assumption for grants is based on the performance period of the underlying performance stock units. The risk-free interest rate is the yield currently available on U.S. Treasury zero-coupon issues with a remaining term approximating the expected term used as the input to the Monte Carlo simulation model. The correlation coefficient is used to model the way in which each company in the S&P Health Care Index tends to move in relation to each other during the performance period. The relevant data used to determine the value of the performance stock units granted during the three months ended March 30, 2019 and March 31, 2018 are as follows: |
Earnings Per Share | The effect of dilutive securities was calculated using the treasury stock method. |
Retirement Plans | The Company sponsors various retirement plans. The components of net periodic benefit cost other than the service cost component are included in other (expense) income in the consolidated statements of operations. |
New Accounting Pronouncements | Recently Adopted Accounting Standards In February 2016, accounting guidance was issued regarding the accounting for leases. This new comprehensive lease standard amends various aspects of existing accounting guidance for leases. The core principle of the new guidance requires lessees to present the assets and liabilities that arise from leases on their balance sheets. This guidance was effective for annual and interim reporting periods beginning after December 15, 2018. The Company has adopted this standard using a modified retrospective transition approach to be applied to leases existing as of, or entered into after, January 1, 2019. The adoption of this standard did have a material effect on the Company’s balance sheet by recording a right-of-use lease asset and lease liabilities in the amount $100 million as of January 1, 2019; however, it did not have a material impact on the Company’s results of operations, cash flows and retained earnings. In March 2017, accounting guidance was issued to amend the amortization period for certain purchased callable debt securities held at a premium. Specifically, the amortization period for certain callable debt securities was shortened to end at the earliest call date. This guidance was effective for annual and interim periods beginning after December 15, 2018. The Company adopted this standard as of January 1, 2019 and the adoption of this standard did not have a material impact on the Company’s financial position, results of operations and cash flows. In February 2018, accounting guidance was issued to address the impact of the 2017 Tax Act on items recorded in accumulated other comprehensive income. Current accounting guidance requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect recorded in income from continuing operations, even if the related tax effects were originally recognized in other comprehensive income, the new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Act. This guidance was effective for annual and interim periods beginning after December 15, 2018. The Company adopted this standard as of January 1, 2019 and Recently Issued Accounting Standards In June 2016, accounting guidance was issued that modifies the recognition of credit losses related to financial assets, such as debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, and other financial assets that have the contractual right to receive cash. Current guidance requires the recognition of a credit loss when it is considered probable that a loss event has occurred. The new guidance requires the measurement of expected credit losses to be based upon relevant information, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the asset. As such, expected credit losses may be recognized sooner under the new guidance due to the broader range of information that will be required to determine credit loss estimates. The new guidance also amends the current other-than-temporary impairment model used for debt securities classified as available-for-sale. When the fair value of an available-for-sale debt security is below its amortized cost, the new guidance requires the total unrealized loss to be bifurcated into its credit and non-credit components. Any expected credit losses or subsequent recoveries will be recognized in earnings and any changes not considered credit related will continue to be recognized within other comprehensive income. This guidance is effective for annual and interim periods beginning after December 15, 2019. The Company currently does not expect that the adoption of this standard will have a material effect on the Company’s financial position, results of operations and cash flows. In January 2017, accounting guidance was issued that simplifies the accounting for goodwill impairment. The guidance eliminates step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. This guidance is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted. The Company currently does not expect that the adoption of this standard will have a material effect on the Company’s financial position, results of operations and cash flows. In August 2018, accounting guidance was issued that modifies the disclosure requirements of fair value measurements. The amendments remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosure and add disclosure requirements identified as relevant. This guidance is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted. The Company does not expect that the adoption of this standard will have a material impact on the Company’s financial position, results of operations and cash flows. In August 2018, accounting guidance was issued that modifies the disclosure requirements of retirement benefit plans. The amendments remove disclosures that are no longer considered cost beneficial, clarify the specific requirements of disclosure and add disclosure requirement identified as relevant. This guidance is effective for annual and interim periods beginning after December 15, 2020 and early adoption is permitted. The Company does not expect that the adoption of this standard will have a material impact on the Company’s financial position, results of operations and cash flows. |
Revenue Recognition | 2 Revenue Recognition The Company recognizes revenue upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company generally enters into contracts that include a combination of products and services. Revenue is allocated to distinct performance obligations and is recognized net of allowances for returns and discounts. The Company recognizes revenue on product sales at the time control of the product transfers to the customer. In substantially all of the Company’s arrangements, title of the product transfers at shipping point and, as a result, the Company determined control transfers at the point of shipment. In more limited cases, there are destination-based shipping terms and, thus, control is deemed to transfer when the products arrive at the customer site. All incremental costs of obtaining a contract are expensed as and when incurred if the expected amortization period of the asset that would have been recognized is one year or less. Shipping and handling costs are included as a component of cost of sales. In situations where the control of the goods transfers prior to the completion of the Company’s obligation to ship the products to its customers, the Company has elected the practical expedient to account for the shipping services as a fulfillment cost. Accordingly, such costs are recognized when control of the related goods is transferred to the customer. In more rare situations, the Company has revenue associated with products that contain specific customer acceptance criteria and the related revenue is not recognized before the customer acceptance criteria are satisfied. The Company elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with specific revenue-producing transactions and collected by the Company from a customer. Generally, the Company’s contracts for products include a performance obligation related to installation. The Company has determined that the installation represents a distinct performance obligation and revenue is recognized separately upon the completion of installation. The Company determines the amount of the transaction price to allocate to the installation service based on the standalone selling price of the product and the service, which requires judgment. The Company determines relative standalone selling price of installation based upon a number of factors, including hourly service billing rates and estimated installation hours. In developing these estimates, the Company considers past history, competition, billing rates of current services and other factors. The Company has sales from standalone software, which is included in instrument systems revenue. These arrangements typically include software licenses and maintenance contracts, both of which the Company has determined are distinct performance obligations. The Company determines the amount of the transaction price to allocate to the license and maintenance contract based on the relative standalone selling price of each performance obligation. Software license revenue is recognized at the point in time when control has been transferred to the customer. The revenue allocated to the software maintenance contract is recognized on a straight-line basis over the maintenance period, which is the contractual term of the contract, as a time-based measure of progress best reflects the Company’s performance in satisfying this obligation. Unspecified rights to software upgrades are typically sold as part of the maintenance contract on a when-and-if-available basis. Payment terms and conditions vary among the Company’s revenue streams, although terms generally include a requirement of payment within 30 to 60 days of product shipment. Prior to providing payment terms to customers, an evaluation of the customer’s credit risk is performed. Returns and customer credits are infrequent and insignificant and are recorded as a reduction to sales. Rights of return are not included in sales arrangements and, therefore, there is minimal variable consideration included in the transaction price of our products. Service revenue includes (i) service and software maintenance contracts and (ii) service calls (time and materials). Instrument service contracts and software maintenance contracts are typically annual contracts, which are billed at the beginning of the contract or maintenance period. The amount of the service and software maintenance contract is recognized on a straight-line basis to revenue over the maintenance service period, which is the contractual term of the contract, as a time-based measure of progress best reflects the Company’s performance in satisfying this obligation. There are no deferred costs associated with the service contract, as the cost of the service is recorded when the service is performed. Service calls are recognized to revenue at the time a service is performed. The Company’s deferred revenue liabilities on the consolidated balance sheets consists of the obligation on instrument service contracts and customer payments received in advance, prior to transfer of control of the instrument. The Company records deferred revenue primarily related to its service contracts, where consideration is billable at the beginning of the service period. The following is a summary of the activity of the Company’s deferred revenue and customer advances for the three months ended March , and March , (in thousands): |
Leases | The Company adopted new accounting guidance regarding the accounting for leases as of January 1, 2019 using a modified retrospective transition approach that was applied to leases existing as of, or entered into after, January 1, 2019. The Company elected the package of transition provisions available for expired or existing contracts, which allowed the Company to carryforward historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Upon adoption, the Company recorded a right-of-use lease asset and lease liabilities in the amount $100 million as of January 1, 2019. The adoption of this standard did not have a material impact on the Company’s results of operations, cash flows and retained earnings. The Company’s operating leases consist of property leases for sales, demonstration, laboratory, warehouse and office spaces, automotive leases for sales and service personnel and equipment leases, primarily used in our manufacturing and distribution operations. The lease policies described below were effective as of January 1, 2019. For leases with terms greater than 12 months, the Company recorded the related right-of-use asset and lease liability obligation at the present value of lease payments over the term of the leases. Some of the Company’s leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments. A certain number of these leases contain rent escalation clauses, either fixed or adjusted periodically for inflation of market rates, that are factored into the Company’s determination of lease payments. The Company also has variable lease payments that do not depend on a rate or index, primarily for items such as common area maintenance and real estate taxes, which are recorded as variable costs when incurred. In addition, the Company’s lease agreements that contain lease and non-lease components are generally accounted for as a single lease component. The Company has elected not to apply the recognition requirements of the new accounting guidance to leases with terms less than 12 months. For these leases, the Company recognizes lease payments in net income on a straight-line basis over the term of the lease. As of March 30, 2019 and March 31, 2018, the Company does not have leases that are classified as finance leases. When available, the Company uses the rate implicit in the lease to discount lease payments to determine the present value of the lease liabilities; however, most of the leases do not provide a readily determinable implicit rate and, as required by the accounting guidance, the Company estimated its incremental secured borrowing rate to discount the lease payments based on information available at lease commencement (or, for the leases in existence on the adoption date, the January 1, 2019 information). The Company’s incremental borrowing rate reflects the estimated rate of interest that the Company would pay to borrow on a collateralized basis over a similar term to the lease payments in a similar economic environment. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Activity of Company's Allowance for Doubtful Accounts | The following is a summary of the activity of the Company’s allowance for doubtful accounts for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Balance at Balance at Beginning End of of Period Additions Deduction Period Allowance for Doubtful Accounts March 30, 2019 $ 7,663 $ 2,159 $ (2,324 ) $ 7,498 March 31, 2018 $ 6,109 $ 1,056 $ (1,033 ) $ 6,132 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at March 30, 2019 (in thousands): Quoted Prices in Active Significant Markets Other Significant Total at for Identical Observable Unobservable March 30, Assets Inputs Inputs 2019 (Level 1) (Level 2) (Level 3) Assets: U.S. Treasury securities $ 98,576 $ — $ 98,576 $ — Foreign government securities 3,476 — 3,476 — Corporate debt securities 367,621 — 367,621 — Time deposits 52,507 — 52,507 — Waters 401(k) Restoration Plan assets 33,951 33,951 — — Foreign currency exchange contracts 355 — 355 — Interest rate cross-currency swap agreements 7,120 — 7,120 — Total $ 563,606 $ 33,951 $ 529,655 $ — Liabilities: Contingent consideration $ 2,591 $ — $ — $ 2,591 Foreign currency exchange contracts 619 — 619 — Total $ 3,210 $ — $ 619 $ 2,591 The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2018 (in thousands): Quoted Prices in Active Significant Markets Other Significant Total at for Identical Observable Unobservable December 31, Assets Inputs Inputs 2018 (Level 1) (Level 2) (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 |
Summary of Foreign Currency Exchange Contracts and Interest Rate Cross-Currency Swap Agreements | The Company’s foreign currency exchange contracts and interest rate cross-currency swap agreements included in the consolidated balance sheets are classified as follows (in thousands): March 30, 2019 December 31, 2018 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 34,219 $ 355 $ 112,212 $ 503 Other current liabilities $ 98,745 $ 619 $ 40,175 $ 224 Interest rate cross-currency swap agreements: Other assets $ 300,000 $ 7,120 $ 300,000 $ 1,093 Accumulated other comprehensive income $ (7,120 ) $ (1,093 ) |
Gains (Losses) on Foreign Exchange Contracts | The following is a summary of the activity included in the statements of comprehensive income related to the foreign currency exchange contracts (in thousands): Financial Statement Classification Three Months Ended March 30, 2019 March 31, 2018 Foreign currency exchange contracts: Realized (losses) gains on closed contracts Cost of sales $ (543 ) $ 1,937 Unrealized gains (losses) on open contracts Cost of sales 526 (985 ) Cumulative net pre-tax (losses) gains Cost of sales $ (17 ) $ 952 Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,227 $ — Unrealized gains on contracts Stockholders’ equity $ 7,120 $ — |
Summary of Activity of Company's Accrued Warranty Liability | The following is a summary of the activity of the Company’s accrued warranty liability for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Balance at Balance at Beginning Accruals for Settlements End of of Period Warranties Made Period Accrued warranty liability: March 30, 2019 $ 12,300 $ 1,500 $ (2,338 ) $ 11,462 March 31, 2018 $ 13,026 $ 1,767 $ (2,167 ) $ 12,626 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Activity of Deferred Revenue and Customer Advances | March 30, 2019 March 31, 2018 Balance at the beginning of the period $ 204,257 $ 192,590 Recognition of revenue included in balance at beginning of the period (77,742 ) (93,286 ) Revenue deferred during the period, net of revenue recognized 134,506 147,939 Balance at the end of the period $ 261,021 $ 247,243 |
Schedule of Amount of Deferred Revenue and Customer Advances | The amount of deferred revenue and customer advances equals the transaction price allocated to unfulfilled performance obligations for the period presented. Such amounts are expected to be recognized in the future as follows (in thousands): March 30, 2019 Deferred revenue and customer advances expected to be recognized in: One year or less $ 222,263 13-24 months 22,180 25 months and beyond 16,578 Total $ 261,021 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities Reconciliation | The Company’s marketable securities within cash equivalents and investments included in the consolidated balance sheets are detailed as follows (in thousands): March 30, 2019 Amortized Unrealized Unrealized Fair Cost Gain Loss Value U.S. Treasury securities $ 98,723 $ 12 $ (159 ) $ 98,576 Foreign government securities 3,489 1 (14 ) 3,476 Corporate debt securities 368,163 121 (663 ) 367,621 Time deposits 52,507 — — 52,507 Total $ 522,882 $ 134 $ (836 ) $ 522,180 Amounts included in: Cash equivalents $ 39,886 $ 1 $ — $ 39,887 Investments 482,996 133 (836 ) 482,293 Total $ 522,882 $ 134 $ (836 ) $ 522,180 December 31, 2018 Amortized Unrealized Unrealized Fair Cost Gain Loss Value 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 Time deposits 108,638 — — 108,638 Total $ 1,002,521 $ 58 $ (3,104 ) $ 999,475 Amounts included in: Cash equivalents $ 60,532 $ — $ (1 ) $ 60,531 Investments 941,989 58 (3,103 ) 938,944 Total $ 1,002,521 $ 58 $ (3,104 ) $ 999,475 |
Investments Classified By Contractual Maturity Date | The estimated fair value of marketable debt securities by maturity date is as follows (in thousands): March 30, 2019 December 31, 2018 Due in one year or less $ 437,648 $ 797,649 Due after one year through three years 84,532 201,826 Total $ 522,180 $ 999,475 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Net of Reserves | Inventories are classified as follows (in thousands): March 30, 2019 December 31, 2018 Raw materials $ 119,101 $ 111,641 Work in progress 18,314 15,552 Finished goods 195,893 164,376 Total inventories $ 333,308 $ 291,569 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The Company’s intangible assets included in the consolidated balance sheets are detailed as follows (dollars in thousands): March 30, 2019 December 31, 2018 Weighted- Weighted- Gross Average Gross Average Carrying Accumulated Amortization Carrying Accumulated Amortization Amount Amortization Period Amount Amortization Period Capitalized software $ 456,388 $ 311,229 5 years $ 454,307 $ 307,634 5 years Purchased intangibles 201,126 145,970 11 201,566 144,184 11 Trademarks and IPR&D 13,817 — — 13,677 — — Licenses 5,710 5,119 6 5,568 4,875 6 Patents and other intangibles 79,940 51,248 8 77,753 49,276 8 Total $ 756,981 $ 513,566 7 $ 752,871 $ 505,969 7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The Company had the following outstanding debt at March 30, 2019 and December 31, 2018 (in thousands): March 30, 2019 December 31, 2018 Foreign subsidiary lines of credit $ 263 $ 178 Senior unsecured notes - Series B - 5.00%, due February 2020 100,000 — Total notes payable and debt, current 100,263 178 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 Credit agreement 590,000 590,000 Unamortized debt issuance costs (1,717 ) (1,828 ) Total long-term debt 1,048,283 1,148,172 Total debt $ 1,148,546 $ 1,148,350 * Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Uncertain Tax Positions Roll Forward | The following is a summary of the activity of the Company’s uncertain tax positions for the three months ended March 30, 2019 and March 31, 2018 (in thousands): March 30, 2019 March 31, 2018 Balance at the beginning of the period $ 26,108 $ 5,843 Net reductions for lapse of statutes taken during the period (43 ) (83 ) Net additions for tax positions taken during the current period 325 177 Balance at the end of the period $ 26,390 $ 5,937 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Prior to the adoption of the new lease accounting standard, undiscounted future minimum rents payable as of December 31, 2018 under non-cancelable leases with initial terms exceeding one year were as follows (in thousands): 2019 $ 28,417 2020 23,424 2021 16,032 2022 11,816 2023 and thereafter 23,269 Total future minimum lease payments $ 102,958 |
Schedule Of Supplemental Balance Sheet Information Related To Operating Leases [Table Text Block] | The Company’s right-of-use lease assets and lease liabilities included in the consolidated balance sheets are classified as follows (in thousands): Financial Statement Classification March 30, 2019 Assets: Property operating lease assets Operating lease assets $ 64,439 Automobile operating lease assets Operating lease assets 27,573 Equipment operating lease assets Operating lease assets 2,668 Total lease assets $ 94,680 Liabilities: Current operating lease liabilities Current operating lease liabilities $ 26,926 Long-term operating lease liabilities Long-term operating lease liabilities 67,788 Total lease liabilities $ 94,714 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Undiscounted future minimum rents payable as of March 30, 2019 under non-cancelable leases with initial terms exceeding one year reconcile to lease liabilities included in the consolidated balance sheet as follows (in thousands): 2019 (remaining 9 months) $ 22,145 2020 25,541 2021 16,426 2022 11,579 2023 6,039 2024 and thereafter 23,816 Total future minimum lease payments 105,546 Less: amount of lease payments representing interest (10,832 ) Present value of future minimum lease payments 94,714 Less: current operating lease liabilities (26,926 ) Long-term operating lease liabilities $ 67,788 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | The consolidated statements of operations for the three months ended March 30, 2019 and March 31, 2018 include the following stock-based compensation expense related to stock option awards, restricted stock awards, restricted stock unit awards, performance stock unit awards and the employee stock purchase plan (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Cost of sales $ 575 $ 605 Selling and administrative expenses 8,125 8,483 Research and development expenses 1,241 804 Total stock-based compensation $ 9,941 $ 9,892 |
Relevant Data Used to Determine the Value of Stock Options Granted During the Period | The relevant data used to determine the value of the stock options granted during the three months ended March 30, 2019 and March 31, 2018 are as follows: Three Months Ended Options Issued and Significant Assumptions Used to Estimate Option Fair Values March 30, 2019 March 31, 2018 Options issued in thousands 136 133 Risk-free interest rate 2.5 % 2.7 % Expected life in years 5 6 Expected volatility 24.2 % 23.2 % Expected dividends — — Three Months Ended Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant March 30, 2019 March 31, 2018 Exercise price $ 232.08 $ 206.66 Fair value $ 61.97 $ 58.38 |
Stock Options Outstanding Roll Forward | The following table summarizes stock option activity for the plans for the three months ended March 30, 2019 (in thousands, except per share data): 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 136 $ 183.41 to $ 238.52 $ 232.08 Exercised (239 ) $ 38.09 to $ 208.47 $ 108.57 Outstanding at March 30, 2019 1,687 $ 61.63 to $ 238.52 $ 154.42 |
Restricted Stock Units Unvested Roll Forward | The following table summarizes the unvested restricted stock unit award activity for the three months ended March 30, 2019 (in thousands, except per share data): Shares Weighted-Average Fair Value per Share Unvested at December 31, 2018 304 $ 153.31 Granted 78 $ 238.52 Vested (102 ) $ 138.48 Forfeited (6 ) $ 158.22 Unvested at March 30, 2019 274 $ 182.98 |
Relevant Data Used to Determine the Value of Performance Shares | The relevant data used to determine the value of the performance stock units granted during the three months ended March 30, 2019 and March 31, 2018 are as follows: Three Months Ended Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values March 30, 2019 March 31, 2018 Performance stock units issued (in thousands) 12 15 Risk-free interest rate 2.4 % 2.0 % Expected life in years 2.8 2.9 Expected volatility 23.5 % 18.0 % Average volatility of peer companies 26.2 % 25.8 % Correlation coefficient 34.2 % 37.4 % Expected dividends — — |
Performance Stock Units Unvested Roll Forward | The following table summarizes the unvested performance stock unit award activity for the three months ended March 30, 2019 (in thousands, except per share data): Shares Weighted-Average Fair Value per Share Unvested at December 31, 2018 100 $ 212.34 Granted 12 $ 391.21 Unvested at March 30, 2019 112 $ 231.50 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Reconciliation | Basic and diluted EPS calculations are detailed as follows (in thousands, except per share data): Three Months Ended March 30, 2019 Net Income (Numerator) Weighted- Average Shares (Denominator) Per Share Amount Net income per basic common share $ 108,986 71,704 $ 1.52 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 711 (0.01 ) Net income per diluted common share $ 108,986 72,415 $ 1.51 Three Months Ended March 31, 2018 Net Income (Numerator) Weighted- Average Shares (Denominator) Per Share Amount Net income per basic common share $ 111,951 78,883 $ 1.42 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 832 (0.02 ) Net income per diluted common share $ 111,951 79,715 $ 1.40 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (loss) are detailed as follows (in thousands): Currency Translation Unrealized Gain (Loss) on Retirement Plans Unrealized Gain (Loss) on Investments Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2018 $ (105,697 ) $ (9,869 ) $ (2,405 ) $ (117,971 ) Other comprehensive income, net of tax 7,522 8 1,797 9,327 Balance at March 30, 2019 $ (98,175 ) $ (9,861 ) $ (608 ) $ (108,644 ) |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plan, Net Periodic Benefit Cost | The summary of the components of net periodic pension costs for the plans for the three months ended March 30, 2019 and March 31, 2018 is as follows (in thousands): Three Months Ended March 30, 2019 March 31, 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 Service cost $ — $ 142 $ 1,082 $ 142 $ 132 $ 1,374 Interest cost 13 159 434 1,619 156 428 Expected return on plan assets — (177 ) (543 ) (2,785 ) (178 ) (493 ) Net amortization: Prior service credit — (5 ) (37 ) — (8 ) (31 ) Net actuarial loss — — 135 769 — 177 Net periodic pension cost (benefit) $ 13 $ 119 $ 1,071 $ (255 ) $ 102 $ 1,455 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Net Sales for Company's Products and Services | Net sales for the Company’s products and services are as follows for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Product net sales: Waters instrument systems $ 184,612 $ 198,103 Chemistry consumables 99,253 98,710 TA instrument systems 36,638 42,304 Total product sales 320,503 339,117 Service net sales: Waters service 176,049 174,333 TA service 17,310 17,220 Total service sales 193,359 191,553 Total net sales $ 513,862 $ 530,670 |
Summary of Geographic Sales Information | Net sales are attributable to geographic areas based on the region of destination. Geographic sales information is presented below for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Net Sales: Asia: China $ 90,091 $ 93,828 Japan 43,504 42,765 Asia Other 66,917 63,687 Total Asia 200,512 200,280 Americas: United States 149,157 146,821 Americas Other 32,711 34,889 Total Americas 181,868 181,710 Europe 131,482 148,680 Total net sales $ 513,862 $ 530,670 |
Summary of Net Sales by Customer Class | Net sales by customer class are as follows for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Pharmaceutical $ 294,512 $ 305,328 Industrial 155,218 162,330 Academic and governmental 64,132 63,012 Total net sales $ 513,862 $ 530,670 |
Summary of Net Sales of Company Recognized at a Point in Time Versus Over Time | Net sales for the Company recognized at a point in time versus over time are as follows for the three months ended March 30, 2019 and March 31, 2018 (in thousands): Three Months Ended March 30, 2019 March 31, 2018 Net sales recognized at a point in time: Instrument systems $ 221,250 $ 240,407 Chemistry consumables 99,253 98,710 Service sales recognized at a point in time (time & materials) 72,759 72,518 Total net sales recognized at a point in time 393,262 411,635 Net sales recognized over time: Service and software sales recognized over time (contracts) 120,600 119,035 Total net sales $ 513,862 $ 530,670 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Mar. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Apr. 30, 2019 | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Cash equivalents description | Cash equivalents represent highly liquid investments, with original maturities of 90 days or less, while investments with longer maturities are classified as investments | ||||
Cash, cash equivalents and investments | $ 1,167,000,000 | $ 1,735,000,000 | |||
Allowance for doubtful accounts description | Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. | ||||
Contingent consideration | $ 2,591,000 | 2,476,000 | |||
Long-term debt | $ 1,048,283,000 | 1,148,172,000 | |||
Foreign currency exposure | The Company is a global company that operates in over 35 countries and, as a result, the Company’s net sales, cost of sales, operating expenses and balance sheet amounts are significantly impacted by fluctuations in foreign currency exchange rates. | ||||
Maturity period of foreign exchange contracts | The Company periodically aggregates its net worldwide balances by currency and then enters into foreign currency exchange contracts that mature within 90 days to hedge a portion of the remaining balance to minimize some of the Company’s currency price risk exposure. The foreign currency exchange contracts are not designated for hedge accounting treatment. | ||||
Treasury stock | $ 755,307,000 | $ 282,370,000 | |||
Severance and related costs | $ 8,000,000 | ||||
Percentage of workforce reduction | 1.00% | ||||
Accrued treasury stock repurchases | $ 25,208,000 | $ 23,005,000 | |||
Subsequent Event [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Notional value, derivative asset | $ 110,000,000 | ||||
January 2019 Program [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Stock repurchase program authorization amount | $ 4,000,000,000 | ||||
Stock repurchase program period | 2 years | ||||
Treasury stock shares acquired | 2.5 | ||||
Treasury stock | $ 598,000,000 | ||||
Stock repurchase program remaining amount authorized for future purchases | $ 3,400,000,000 | ||||
Cross Currency Interest Rate Contract [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Term of derivative agreement | 3 years | 3 years | |||
Notional value, derivative asset | $ 300,000,000 | $ 300,000,000 | |||
Unsecured Debt [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Long-term debt | 560,000,000 | 560,000,000 | |||
Unsecured Debt [Member] | Fixed Interest Rate [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Long-term debt | 510,000,000 | 510,000,000 | |||
Fair value of fixed interest rate debt | 508,000,000 | 502,000,000 | |||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Contingent consideration | 2,591,000 | 2,476,000 | |||
Held In Currencies Other Than Us Dollars [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Cash, cash equivalents and investments | $ 263,000,000 | 251,000,000 | |||
Programs Authorized by Board of Directors [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Treasury stock shares acquired | 3.3 | 1.3 | |||
Treasury stock | $ 747,000,000 | $ 275,000,000 | |||
Related to Vesting of Restricted Stock Units [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Treasury stock | 8,000,000 | $ 8,000,000 | |||
Held By Foreign Subsidiaries [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Cash, cash equivalents and investments | $ 411,000,000 | $ 471,000,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts Roll Forward (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $ 7,663 | $ 6,109 |
Additions | 2,159 | 1,056 |
Deduction | (2,324) | (1,033) |
Ending balance | $ 7,498 | $ 6,132 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 522,180 | $ 999,475 |
Waters 401(k) Restoration Plan assets | 33,951 | 33,104 |
Total | 563,606 | 1,034,175 |
Contingent consideration | 2,591 | 2,476 |
Total | 3,210 | 2,700 |
Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 355 | 503 |
Foreign currency exchange contracts | 619 | 224 |
Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 7,120 | 1,093 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 98,576 | 164,315 |
Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 3,476 | 3,463 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 367,621 | 723,059 |
Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 52,507 | 108,638 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Waters 401(k) Restoration Plan assets | 33,951 | 33,104 |
Total | 33,951 | 33,104 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 529,655 | 1,001,071 |
Total | 619 | 224 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 355 | 503 |
Foreign currency exchange contracts | 619 | 224 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 7,120 | 1,093 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 98,576 | 164,315 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | Foreign Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 3,476 | 3,463 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 367,621 | 723,059 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 52,507 | 108,638 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 2,591 | 2,476 |
Total | $ 2,591 | $ 2,476 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Fair Value of Forward Foreign Exchange Contracts (Detail) - USD ($) | Mar. 30, 2019 | Dec. 31, 2018 |
Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | $ 355,000 | $ 503,000 |
Fair value, derivative liability | 619,000 | 224,000 |
Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative asset | 300,000,000 | 300,000,000 |
Fair value, derivative asset | 7,120,000 | 1,093,000 |
Other Current Assets [Member] | Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative asset | 34,219,000 | 112,212,000 |
Fair value, derivative asset | 355,000 | 503,000 |
Other Current Liabilities [Member] | Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative liability | 98,745,000 | 40,175,000 |
Fair value, derivative liability | 619,000 | 224,000 |
Other Assets [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative asset | 300,000,000 | 300,000,000 |
Fair value, derivative asset | 7,120,000 | 1,093,000 |
Accumulated Other Comprehensive Income (Loss) [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | $ (7,120,000) | $ (1,093,000) |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Gains (Losses) on Foreign Exchange Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cost of Sales [Member] | Foreign Currency Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Realized (losses) gains on closed contracts | $ (543) | $ 1,937 |
Unrealized gains (losses) on open contracts | 526 | (985) |
Cumulative net pre-tax (losses) gains | (17) | $ 952 |
Interest Income [Member] | Cross Currency Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Interest earned | 2,227 | |
Stockholders' Equity [Member] | Cross Currency Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Unrealized gains on contracts | $ 7,120 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Activity of Company's Accrued Warranty Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at Beginning of Period | $ 12,300 | $ 13,026 |
Accruals for Warranties | 1,500 | 1,767 |
Settlements Made | (2,338) | (2,167) |
Balance at End of Period | $ 11,462 | $ 12,626 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Dec. 31, 2018 | |
Revenue Recognition [Line Items] | ||
Accounts receivable, payment terms and conditions | Payment terms and conditions vary among the Company’s revenue streams, although terms generally include a requirement of payment within 30 to 60 days of product shipment. | |
Other Long-Term Liabilities [Member] | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances | $ 39 | $ 39 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Activity of Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Balance at the beginning of the period | $ 204,257 | $ 192,590 |
Recognition of revenue included in balance at beginning of the period | (77,742) | (93,286) |
Revenue deferred during the period, net of revenue recognized | 134,506 | 147,939 |
Balance at the end of the period | $ 261,021 | $ 247,243 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Estimated Amount of Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 222,263 | $ 164,965 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-30 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 222,263 | |
Deferred revenue and customer advances recognition period | 0 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 22,180 | |
Deferred revenue and customer advances recognition period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-27 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 16,578 | |
Deferred revenue and customer advances recognition period | 2 years |
Marketable Securities - Schedul
Marketable Securities - Schedule of Available-for-Sale Securities Reconciliation (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 522,882 | $ 1,002,521 |
Unrealized Gain | 134 | 58 |
Unrealized Loss | (836) | (3,104) |
Fair Value | 522,180 | 999,475 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 98,723 | 164,619 |
Unrealized Gain | 12 | 16 |
Unrealized Loss | (159) | (320) |
Fair Value | 98,576 | 164,315 |
Foreign Government Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,489 | 3,486 |
Unrealized Gain | 1 | 1 |
Unrealized Loss | (14) | (24) |
Fair Value | 3,476 | 3,463 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 368,163 | 725,778 |
Unrealized Gain | 121 | 41 |
Unrealized Loss | (663) | (2,760) |
Fair Value | 367,621 | 723,059 |
Time Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 52,507 | 108,638 |
Fair Value | 52,507 | 108,638 |
Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 39,886 | 60,532 |
Unrealized Gain | 1 | |
Unrealized Loss | 0 | (1) |
Fair Value | 39,887 | 60,531 |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 482,996 | 941,989 |
Unrealized Gain | 133 | 58 |
Unrealized Loss | (836) | (3,103) |
Fair Value | $ 482,293 | $ 938,944 |
Marketable Securities - Investm
Marketable Securities - Investments Classified By Contractual Maturity Date (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Due in one year or less | $ 437,648 | $ 797,649 |
Due after one year through three years | 84,532 | 201,826 |
Total | $ 522,180 | $ 999,475 |
Inventories - Inventory, Net of
Inventories - Inventory, Net of Reserves (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw materials | $ 119,101 | $ 111,641 |
Work in progress | 18,314 | 15,552 |
Finished goods | 195,893 | 164,376 |
Total inventories | $ 333,308 | $ 291,569 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 356,632 | $ 355,614 | |
Goodwill foreign currency translation adjustments | 1,000 | ||
Intangible assets, gross foreign currency translation adjustments | (7,000) | ||
Intangible assets, accumulated amortization foreign currency translation adjustments | (5,000) | ||
Amortization expense | 13,000 | $ 13,000 | |
Future amortization expense, year 1 | 52,000 | ||
Future amortization expense, year 2 | 52,000 | ||
Future amortization expense, year 3 | 52,000 | ||
Future amortization expense, year 4 | 52,000 | ||
Future amortization expense, year 5 | $ 52,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Dec. 31, 2018 | |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 756,981 | $ 752,871 |
Accumulated Amortization | $ 513,566 | $ 505,969 |
Weighted-Average Amortization Period | 7 years | 7 years |
Trademarks and In Process Research and Development [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 13,817 | $ 13,677 |
Software Development [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 456,388 | 454,307 |
Accumulated Amortization | $ 311,229 | $ 307,634 |
Weighted-Average Amortization Period | 5 years | 5 years |
Purchased Intangibles [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 201,126 | $ 201,566 |
Accumulated Amortization | $ 145,970 | $ 144,184 |
Weighted-Average Amortization Period | 11 years | 11 years |
Licensing Agreements [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,710 | $ 5,568 |
Accumulated Amortization | $ 5,119 | $ 4,875 |
Weighted-Average Amortization Period | 6 years | 6 years |
Patents and Other Intangibles [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 79,940 | $ 77,753 |
Accumulated Amortization | $ 51,248 | $ 49,276 |
Weighted-Average Amortization Period | 8 years | 8 years |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 26, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Apr. 30, 2019 | Nov. 30, 2017 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,048,283,000 | $ 1,148,172,000 | |||
Line of credit maximum borrowing capacity | $ 90,000,000 | $ 90,000,000 | |||
Line of credit interest rate during the period | 4.44% | 1.88% | |||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Notional value, derivative asset | $ 110,000,000 | ||||
Cross Currency Interest Rate Contract [Member] | |||||
Debt Instrument [Line Items] | |||||
Notional value, derivative asset | $ 300,000,000 | $ 300,000,000 | |||
Derivative instrument, term | 3 years | 3 years | |||
Notes Payable to Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate terms on debt | The interest rates applicable to the 2017 Credit Agreement are, at the Company’s option, equal to either the alternate base rate (which is a rate per annum equal to the greatest of (a) the prime rate in effect on such day, (b) the Federal Reserve Bank of New York Rate on such day plus 1/2 of 1% per annum and (c) the adjusted LIBO rate on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in U.S. dollars with a maturity of one month plus 1% per annum) or the applicable 1, 2, 3 or 6 month adjusted LIBO rate or EURIBO rate for Euro-denominated loans, in each case, plus an interest rate margin based upon the Company’s leverage ratio, which can range between 0 and 12.5 basis points for alternate base rate loans and between 80 and 112.5 basis points for LIBO rate or EURIBO rate loans. | ||||
Debt facility fee | The facility fee on the 2017 Credit Agreement ranges between 7.5 and 25 basis points per annum, based on the leverage ratio, of the amount of the revolving facility commitments and the outstanding term loan. | ||||
Debt covenant description | The 2017 Credit Agreement requires that the Company comply with an interest coverage ratio test of not less than 3.50:1 as of the end of any fiscal quarter for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. In addition, the 2017 Credit Agreement includes negative covenants, affirmative covenants, representations and warranties and events of default that are customary for investment grade credit facilities. | ||||
Unused borrowing capacity | $ 1,208,000,000 | $ 1,208,000,000 | |||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt covenant description | These senior unsecured notes require that the Company comply with an interest coverage ratio test of not less than 3.50:1 for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. In addition, these senior unsecured notes include customary negative covenants, affirmative covenants, representations and warranties and events of default. | ||||
Long-term debt | $ 560,000,000 | $ 560,000,000 | |||
Call feature on debt instrument | The Company may prepay all or some of the senior unsecured notes at any time in an amount not less than 10% of the aggregate principal amount outstanding, plus the applicable make-whole amount or prepayment premium for Series H and J senior unsecured notes. In the event of a change in control of the Company (as defined in the note purchase agreement), the Company may be required to prepay the senior unsecured notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. | ||||
Credit Agreements and Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted-average interest rate | 3.80% | 3.83% | |||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt covenant description | In February 2019, certain defined terms related to the subsidiary guarantors were amended in the 2017 Credit Agreement and senior unsecured note agreements. In addition, the Company amended the senior unsecured note agreements to allow the Company to elect an increase in the permitted leverage ratio from 3.50:1 to 4.0:1, for a period of three consecutive quarters, for a material acquisition of $400 million or more. During the period of time where the leverage ratio exceeds 3.50:1, the interest payable on the senior unsecured notes shall increase by 0.50%. The debt covenants in the senior unsecured note agreements were also modified to address the change in accounting guidance for leases. | ||||
Revolving Facilities [Member] | Notes Payable to Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Face value of debt | $ 1,500,000,000 | ||||
Term Loan Facility [Member] | Notes Payable to Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Face value of debt | $ 300,000,000 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Foreign subsidiary lines of credit | $ 263 | $ 178 | |
Total notes payable and debt, current | 100,263 | 178 | |
Unamortized debt issuance costs | (1,717) | (1,828) | |
Long-term debt | 1,048,283 | 1,148,172 | |
Total debt | 1,148,546 | 1,148,350 | |
Senior Unsecured Notes Series B [Member] | |||
Debt Instrument [Line Items] | |||
Total notes payable and debt, current | 100,000 | ||
Long-term debt | 100,000 | ||
Senior Unsecured Notes Series E [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 50,000 | 50,000 | |
Senior Unsecured Notes Series F [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 100,000 | 100,000 | |
Senior Unsecured Notes Series G [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 50,000 | 50,000 | |
Senior Unsecured Notes Series H [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | [1] | 50,000 | 50,000 |
Senior Unsecured Notes Series I [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 50,000 | 50,000 | |
Senior Unsecured Notes Series K [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 160,000 | 160,000 | |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 590,000 | $ 590,000 | |
[1] | Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Interest rate margin | 1.25% | 1.25% |
Senior Unsecured Notes Series B [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 5.00% | 5.00% |
Senior Unsecured Notes Series E [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.97% | 3.97% |
Senior Unsecured Notes Series F [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.40% | 3.40% |
Senior Unsecured Notes Series G [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.92% | 3.92% |
Senior Unsecured Notes Series H [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate terms on debt | Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. | Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. |
Senior Unsecured Notes Series I [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.13% | 3.13% |
Senior Unsecured Notes Series K [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.44% | 3.44% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Taxes [Line Items] | ||
Income tax holiday amount | $ 4 | $ 6 |
Income tax holiday per share benefit | $ 0.06 | $ 0.07 |
Effective income tax rate | 7.10% | 20.30% |
Effect of stock-based compensation | $ 7 | $ 6 |
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 3 | |
Foreign currency exchange rate impact | $ 12 | |
Increase in effective tax rate percentage points | (2.90%) | 8.90% |
Maximum [Member] | ||
Income Taxes [Line Items] | ||
Expected change in unrecognized tax benefits in the next twelve months | $ (1) | |
United States [Member] | ||
Income Taxes [Line Items] | ||
Statutory tax rate | 21.00% | |
Ireland [Member] | ||
Income Taxes [Line Items] | ||
Statutory tax rate | 12.50% | |
U.K [Member] | ||
Income Taxes [Line Items] | ||
Statutory tax rate | 19.00% | |
Singapore [Member] | ||
Income Taxes [Line Items] | ||
Statutory tax rate | 17.00% | |
Singapore [Member] | Contractual Tax Rate Singapore [Member] | ||
Income Taxes [Line Items] | ||
Marginal effective income tax rate | 0.00% |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions Roll Forward (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at the beginning of the period | $ 26,108 | $ 5,843 |
Net reductions for lapse of statutes taken during the period | (43) | (83) |
Net additions for tax positions taken during the current period | 325 | 177 |
Balance at the end of the period | $ 26,390 | $ 5,937 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Lease, right of use asset | $ 94,680 | $ 100,000 | |
Lease liability | $ 94,714 | $ 100,000 | |
Weighted Average Remaining Lease Term | 4 years 9 months 18 days | ||
Rental expense | $ 9,000 | $ 7,000 | |
Weighted Average Discount Rate | 3.95% | ||
Operating activities in the statement of cash flows | $ 9,000 |
Leases - Future minimum rents p
Leases - Future minimum rents payable (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 28,417 |
2020 | 23,424 |
2021 | 16,032 |
2022 | 11,816 |
2023 and thereafter | 23,269 |
Total | $ 102,958 |
Leases - Schedule of Company's
Leases - Schedule of Company's right-of-use lease assets and lease liabilities (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Jan. 01, 2019 |
Assets: | ||
Total lease assets | $ 94,680 | $ 100,000 |
Liabilities: | ||
Operating lease liabilities - current | 26,926 | |
Operating lease liabilities - long-term | 67,788 | |
Total lease liabilities | 94,714 | $ 100,000 |
Current operating lease liabilities [Member] | ||
Liabilities: | ||
Operating lease liabilities - current | 26,926 | |
Long-term operating lease liabilities [Member] | ||
Liabilities: | ||
Operating lease liabilities - long-term | 67,788 | |
Property Operating lease assets [Member] | ||
Assets: | ||
Total lease assets | 64,439 | |
Automobile Operating lease assets [Member] | ||
Assets: | ||
Total lease assets | 27,573 | |
Equipment operating lease assets [Member] | ||
Assets: | ||
Total lease assets | $ 2,668 |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted future minimum rents payable (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Jan. 01, 2019 |
2019 (remaining 9 months) | $ 22,145 | |
2020 | 25,541 | |
2021 | 16,426 | |
2022 | 11,579 | |
2023 | 6,039 | |
2024 and thereafter | 23,816 | |
Total future minimum lease payments | 105,546 | |
Less: amount of lease payments representing interest | (10,832) | |
Present value of future minimum lease payments | 94,714 | $ 100,000 |
Less: current operating lease liabilities | 26,926 | |
Long-term operating lease liabilities | $ 67,788 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 3 Months Ended |
Mar. 30, 2019$ / shares | |
Performance Stock Unit Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant date fair value of shares granted | $ 391.21 |
Performance Stock Unit Plan | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights | 0.00% |
Performance Stock Unit Plan | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights | 200.00% |
Restricted Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant date fair value of shares granted | $ 183.41 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 9,941 | $ 9,892 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 575 | 605 |
Selling and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 8,125 | 8,483 |
Research and Development Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 1,241 | $ 804 |
Stock-Based Compensation - Rele
Stock-Based Compensation - Relevant Data Used to Determine the Value of Stock Options Granted During the Period (Detail) - Equity Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Options Issued and Significant Assumptions Used to Estimate Option Fair Values | ||
Options issued | 136 | 133 |
Fair value assumptions, risk free interest rate | 2.50% | 2.70% |
Fair value assumptions, expected life in years | 5 years | 6 years |
Fair value assumptions, expected volatility | 24.20% | 23.20% |
Fair value assumptions, expected dividends | $ 0 | $ 0 |
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | ||
Weighted-average exercise price of options granted | $ 232.08 | $ 206.66 |
Weighted-average grant date fair value of options granted | $ 61.97 | $ 58.38 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding Roll Forward (Detail) - Equity Option [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at December 31, 2018 | 1,790 | |
Granted | 136 | 133 |
Exercised | (239) | |
Outstanding at March 30, 2019 | 1,687 | |
Weighted-average exercise price of options outstanding at beginning of period | $ 142.47 | |
Weighted-average exercise price of options granted | 232.08 | $ 206.66 |
Weighted-average exercise price of options exercised | 108.57 | |
Weighted-average exercise price of options outstanding at end of period | 154.42 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price of options outstanding at beginning of period | 38.09 | |
Weighted-average exercise price of options granted | 183.41 | |
Weighted-average exercise price of options exercised | 38.09 | |
Weighted-average exercise price of options outstanding at end of period | 61.63 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price of options outstanding at beginning of period | 208.47 | |
Weighted-average exercise price of options granted | 238.52 | |
Weighted-average exercise price of options exercised | 208.47 | |
Weighted-average exercise price of options outstanding at end of period | $ 238.52 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Unvested Roll Forward (Detail) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 3 Months Ended |
Mar. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested Beginning balance, Shares | shares | 304 |
Shares, Granted | shares | 78 |
Shares, Vested | shares | (102) |
Shares, Forfeited | shares | (6) |
Unvested Ending balance, Shares | shares | 274 |
Weighted-average grant date fair value per share of shares unvested at beginning of period | $ / shares | $ 153.31 |
Weighted-average grant date fair value per share of shares granted | $ / shares | 238.52 |
Weighted-average grant date fair value per share of shares vested | $ / shares | 138.48 |
Weighted-average grant date fair value of shares forfeited | $ / shares | 158.22 |
Weighted-average grant date fair value per share of shares unvested at end of period | $ / shares | $ 182.98 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Relevant Data Used to Determine the Value of Performance Shares (Detail) - Performance Stock Unit Plan [Member] - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values | ||
Shares granted | 12 | 15 |
Fair value assumptions, risk free interest rate | 2.40% | 2.00% |
Fair value assumptions, expected life in years | 2 years 9 months 18 days | 2 years 10 months 24 days |
Fair value assumptions, expected volatility | 23.50% | 18.00% |
Fair value assumptions, expected volatility of peer companies | 26.20% | 25.80% |
Fair value assumptions, correlation coefficient | 34.20% | 37.40% |
Fair value assumptions, expected dividends | $ 0 | $ 0 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Stock Units Unvested Roll Forward (Detail) - Performance Stock Unit Plan [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Beginning balance, Shares | 100 | |
Shares granted | 12 | 15 |
Unvested Ending balance, Shares | 112 | |
Weighted-average grant date fair value per share of shares unvested at beginning of period | $ 212.34 | |
Weighted-average grant date fair value per share of shares granted | 391.21 | |
Weighted-average grant date fair value per share of shares unvested at end of period | $ 231.50 |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share Reconciliation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income per basic common share, Net Income (Numerator) | $ 108,986 | $ 111,951 |
Net income per diluted common share, Net Income (Numerator) | $ 108,986 | $ 111,951 |
Net income per basic common share, Weighted-Average Shares (Denominator) | 71,704 | 78,883 |
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities, Weighted-Average Shares (Denominator) | 711 | 832 |
Net income per diluted common share, Weighted-Average Shares (Denominator) | 72,415 | 79,715 |
Net income per basic common share, Per Share Amount | $ 1.52 | $ 1.42 |
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities, Per Share Amount | (0.01) | (0.02) |
Net income per diluted common share, Per Share Amount | $ 1.51 | $ 1.40 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 0.1 | 0.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 1,567,258 | $ 2,233,788 |
Other comprehensive income, net of tax | 9,327 | 21,436 |
Ending balance | 967,742 | $ 2,114,894 |
Currency Translation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (105,697) | |
Other comprehensive income, net of tax | 7,522 | |
Ending balance | (98,175) | |
Unrealized Gain (Loss) on Retirement Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (9,869) | |
Other comprehensive income, net of tax | 8 | |
Ending balance | (9,861) | |
Unrealized Gain (Loss) on Investments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (2,405) | |
Other comprehensive income, net of tax | 1,797 | |
Ending balance | (608) | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (117,971) | |
Other comprehensive income, net of tax | 9,327 | |
Ending balance | $ (108,644) |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) | Mar. 30, 2019USD ($) |
Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in current fiscal year | $ 3,000,000 |
Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in current fiscal year | $ 6,000,000 |
Retirement Plans - Defined Bene
Retirement Plans - Defined Benefit Plan, Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Pension Plans [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 142 | |
Interest cost | $ 13 | 1,619 |
Expected return on plan assets | (2,785) | |
Net amortization: Net actuarial loss | 769 | |
Net periodic pension cost (benefit) | 13 | (255) |
Pension Plans [Member] | Non-U.S. Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,082 | 1,374 |
Interest cost | 434 | 428 |
Expected return on plan assets | (543) | (493) |
Net amortization: Prior service credit | (37) | (31) |
Net amortization: Net actuarial loss | 135 | 177 |
Net periodic pension cost (benefit) | 1,071 | 1,455 |
Retiree Healthcare Plan [Member] | United States [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 142 | 132 |
Interest cost | 159 | 156 |
Expected return on plan assets | (177) | (178) |
Net amortization: Prior service credit | (5) | (8) |
Net periodic pension cost (benefit) | $ 119 | $ 102 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Business Segment Information _2
Business Segment Information - Summary of Net Sales for Company's Products and Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 513,862 | $ 530,670 |
Waters Instrument Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 184,612 | 198,103 |
Chemistry Consumables [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 99,253 | 98,710 |
TA Instrument Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 36,638 | 42,304 |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 320,503 | 339,117 |
Waters Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 176,049 | 174,333 |
TA Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 17,310 | 17,220 |
Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 193,359 | $ 191,553 |
Business Segment Information _3
Business Segment Information - Summary of Geographic Sales Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 513,862 | $ 530,670 |
China [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 90,091 | 93,828 |
Japan [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 43,504 | 42,765 |
Asia Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 66,917 | 63,687 |
Total Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 200,512 | 200,280 |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 149,157 | 146,821 |
Americas Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 32,711 | 34,889 |
Total Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 181,868 | 181,710 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 131,482 | $ 148,680 |
Business Segment Information _4
Business Segment Information - Summary of Net Sales by Customer Class (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenue, Major Customer [Line Items] | ||
Total net sales | $ 513,862 | $ 530,670 |
Pharmaceutical [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total net sales | 294,512 | 305,328 |
Industrial [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total net sales | 155,218 | 162,330 |
Governmental and Academic [Member] | ||
Revenue, Major Customer [Line Items] | ||
Total net sales | $ 64,132 | $ 63,012 |
Business Segment Information _5
Business Segment Information - Summary of Net Sales of Company Recognized at a Point in Time Versus Over Time (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 513,862 | $ 530,670 |
Chemistry Consumables [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 99,253 | 98,710 |
Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 193,359 | 191,553 |
Net Sales Recognized at a Point in Time: [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 393,262 | 411,635 |
Net Sales Recognized at a Point in Time: [Member] | Instrument Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 221,250 | 240,407 |
Net Sales Recognized at a Point in Time: [Member] | Chemistry Consumables [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 99,253 | 98,710 |
Net Sales Recognized at a Point in Time: [Member] | Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 72,759 | 72,518 |
Net Sales Recognized Over Time: [Member] | Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 120,600 | $ 119,035 |
Recent Accounting Standard Ch_2
Recent Accounting Standard Changes and Developments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease, right of use asset | $ 94,680 | $ 100,000 |
Lease liability | $ 94,714 | $ 100,000 |