Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 02, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0001000697 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Oct. 2, 2021 | |
Entity Registrant Name | Waters Corporation | |
Entity File Number | 01-14010 | |
Entity Tax Identification Number | 13-3668640 | |
Entity Incorporation, State or Country Code | DE | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 34 Maple Street | |
Entity Address, City or Town | Milford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01757 | |
City Area Code | 508 | |
Local Phone Number | 478-2000 | |
Trading Symbol | WAT | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
Entity Common Stock, Shares Outstanding | 61,036,269 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 02, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 524,702 | $ 436,695 |
Investments | 130,490 | 6,451 |
Accounts receivable, net | 532,957 | 573,316 |
Inventories | 388,756 | 304,281 |
Other current assets | 81,171 | 80,290 |
Total current assets | 1,658,076 | 1,401,033 |
Property, plant and equipment, net | 530,061 | 494,003 |
Intangible assets, net | 246,080 | 258,645 |
Goodwill | 436,754 | 444,362 |
Operating lease assets | 84,845 | 93,252 |
Other assets | 160,099 | 148,625 |
Total assets | 3,115,915 | 2,839,920 |
Current liabilities: | ||
Notes payable and debt | 0 | 150,000 |
Accounts payable | 88,904 | 72,212 |
Accrued employee compensation | 76,182 | 72,166 |
Deferred revenue and customer advances | 262,758 | 198,240 |
Current operating lease liabilities | 26,839 | 27,764 |
Accrued income taxes | 61,404 | 76,558 |
Accrued warranty | 10,496 | 10,950 |
Other current liabilities | 145,306 | 197,093 |
Total current liabilities | 671,889 | 804,983 |
Long-term liabilities: | ||
Long-term debt | 1,613,618 | 1,206,515 |
Long-term portion of retirement benefits | 72,664 | 72,620 |
Long-term income tax liabilities | 319,161 | 357,493 |
Long-term operating lease liabilities | 58,381 | 68,197 |
Other long-term liabilities | 84,980 | 97,968 |
Total long-term liabilities | 2,148,804 | 1,802,793 |
Total liabilities | 2,820,693 | 2,607,776 |
Commitments and contingencies (Notes 6, 7 and 11) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none issued at October 2, 2021 and December 31, 2020 | 0 | |
Common stock, par value $0.01 per share, 400,000 shares authorized, 162,075 and 161,666 shares issued, 61,167 and 62,309 shares outstanding at October 2, 2021 and December 31, 2020, respectively | 1,621 | 1,617 |
Additional paid-in capital | 2,106,301 | 2,029,465 |
Retained earnings | 7,584,593 | 7,107,989 |
Treasury stock, at cost, 100,908 and 99,357 shares at October 2, 2021 and December 31, 2020, respectively | (9,281,679) | (8,788,984) |
Accumulated other comprehensive loss | (115,614) | (117,943) |
Total stockholders' equity | 295,222 | 232,144 |
Total liabilities and stockholders' equity | $ 3,115,915 | $ 2,839,920 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 02, 2021 | Dec. 31, 2020 |
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 | 162,075,000 | 161,666,000 |
Common stock, shares outstanding | 61,167,000 | 62,309,000 |
Treasury stock, shares | 100,908,000 | 99,357,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Revenues: | ||||
Total net sales | $ 659,233 | $ 593,784 | $ 1,949,425 | $ 1,578,707 |
Costs and operating expenses: | ||||
Selling and administrative expenses | 152,545 | 135,430 | 453,954 | 400,614 |
Research and development expenses | 41,986 | 34,971 | 125,027 | 101,115 |
Purchased intangibles amortization | 1,759 | 2,657 | 5,408 | 7,900 |
Litigation provisions | 0 | 1,180 | ||
Total costs and operating expenses | 467,418 | 435,400 | 1,389,918 | 1,196,929 |
Operating income | 191,815 | 158,384 | 559,507 | 381,778 |
Other income (expense), net | (607) | (1,039) | 18,073 | (2,149) |
Interest expense | (11,081) | (10,915) | (34,054) | (38,012) |
Interest income | 2,548 | 4,007 | 10,347 | 12,046 |
Income before income taxes | 182,675 | 150,437 | 553,873 | 353,663 |
Provision for income taxes | 21,490 | 23,668 | 77,269 | 50,403 |
Net income | $ 161,185 | $ 126,769 | $ 476,604 | $ 303,260 |
Net income per basic common share | $ 2.63 | $ 2.04 | $ 7.72 | $ 4.89 |
Weighted-average number of basic common shares | 61,359 | 62,002 | 61,771 | 62,057 |
Net income per diluted common share | $ 2.60 | $ 2.03 | $ 7.66 | $ 4.86 |
Weighted-average number of diluted common shares and equivalents | 61,888 | 62,303 | 62,244 | 62,371 |
Product [Member] | ||||
Revenues: | ||||
Total net sales | $ 419,133 | $ 376,239 | $ 1,242,110 | $ 965,342 |
Costs and operating expenses: | ||||
Costs and operating expenses | 171,364 | 166,330 | 506,985 | 420,971 |
Service [Member] | ||||
Revenues: | ||||
Total net sales | 240,100 | 217,545 | 707,315 | 613,365 |
Costs and operating expenses: | ||||
Costs and operating expenses | $ 99,764 | $ 96,012 | $ 298,544 | $ 265,149 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 161,185 | $ 126,769 | $ 476,604 | $ 303,260 |
Other comprehensive (loss) income: | ||||
Foreign currency translation | (4,560) | 601 | 1,256 | (7,156) |
Unrealized gains on investments before income taxes | 17 | 0 | 2 | 0 |
Unrealized gains on investments, net of tax | 17 | 0 | 2 | 0 |
Retirement liability adjustment before reclassifications | (103) | (654) | 691 | (880) |
Amounts reclassified to other income | 248 | 352 | 682 | 1,028 |
Retirement liability adjustment before income taxes | 145 | (302) | 1,373 | 148 |
Income tax expense | (37) | (85) | (302) | (197) |
Retirement liability adjustment, net of tax | 108 | (387) | 1,071 | (49) |
Other comprehensive (loss) income | (4,435) | 214 | 2,329 | (7,205) |
Comprehensive income | $ 156,750 | $ 126,983 | $ 478,933 | $ 296,055 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 476,604 | $ 303,260 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 21,949 | 27,715 |
Deferred income taxes | 9,219 | 1,089 |
Depreciation | 52,760 | 49,407 |
Amortization of intangibles | 45,166 | 41,684 |
Change in operating assets and liabilities: | ||
Decrease in accounts receivable | 23,472 | 96,955 |
Increase in inventories | (93,878) | (8,139) |
Increase in other current assets | (9,123) | (16,776) |
Increase in other assets | (6,116) | (2,612) |
(Decrease) increase in accounts payable and other current liabilities | (4,768) | 46,721 |
Increase in deferred revenue and customer advances | 71,889 | 32,053 |
Decrease in other liabilities | (57,838) | (48,332) |
Net cash provided by operating activities | 529,336 | 523,025 |
Cash flows from investing activities: | ||
Additions to property, plant, equipment and software capitalization | (116,614) | (125,340) |
Business acquisitions, net of cash acquired | 0 | (76,664) |
Investment in unaffiliated companies | (867) | (3,850) |
Payments for intellectual property licenses | (7,000) | 0 |
Purchases of investments | (241,230) | (22,458) |
Maturities and sales of investments | 117,283 | 1,751 |
Net cash used in investing activities | (248,428) | (226,561) |
Cash flows from financing activities: | ||
Proceeds from debt issuances | 510,000 | 315,000 |
Payments on debt | (250,000) | (425,366) |
Payments of debt issuance costs | (8,537) | 0 |
Proceeds from stock plans | 55,000 | 28,421 |
Purchases of treasury shares | (492,695) | (196,353) |
Proceeds from derivative contracts | 2,325 | 10,330 |
Net cash used in financing activities | (183,907) | (267,968) |
Effect of exchange rate changes on cash and cash equivalents | (8,994) | 10,723 |
Increase in cash and cash equivalents | 88,007 | 39,219 |
Cash and cash equivalents at beginning of period | 436,695 | 335,715 |
Cash and cash equivalents at end of period | $ 524,702 | $ 374,934 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2019 | $ (216,281) | $ 1,610 | $ 1,926,753 | $ 6,587,403 | $ (8,612,576) | $ (119,471) |
Beginning Balance, shares at Dec. 31, 2019 | 161,030 | |||||
Adoption of new accounting pronouncement | (985) | (985) | ||||
Net income | 303,260 | 303,260 | ||||
Other comprehensive income (loss) | (7,205) | (7,205) | ||||
Issuance of common stock for Employee Stock Purchase Plan | 5,593 | 5,593 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 31 | |||||
Issuance of common stock for stock options exercised | 22,946 | $ 2 | 22,944 | |||
Issuance of common stock for stock options exercised, shares | 184 | |||||
Treasury stock | (176,352) | (176,352) | ||||
Stock-based compensation | 27,443 | $ 2 | 27,441 | |||
Stock-based compensation, shares | 136 | |||||
Ending balance at Sep. 26, 2020 | (41,581) | $ 1,614 | 1,982,731 | 6,889,678 | (8,788,928) | (126,676) |
Ending Balance, shares at Sep. 26, 2020 | 161,381 | |||||
Beginning balance at Jun. 27, 2020 | (191,742) | $ 1,613 | 1,959,498 | 6,762,909 | (8,788,872) | (126,890) |
Beginning Balance, shares at Jun. 27, 2020 | 161,273 | |||||
Net income | 126,769 | 126,769 | ||||
Other comprehensive income (loss) | 214 | 214 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 1,641 | 1,641 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 10 | |||||
Issuance of common stock for stock options exercised | 12,041 | 12,040 | ||||
Issuance of common stock for stock options exercised, shares | 97 | |||||
Treasury stock | (56) | (56) | ||||
Stock-based compensation | 9,552 | 9,552 | ||||
Stock-based compensation, shares | 1 | |||||
Ending balance at Sep. 26, 2020 | (41,581) | $ 1,614 | 1,982,731 | 6,889,678 | (8,788,928) | (126,676) |
Ending Balance, shares at Sep. 26, 2020 | 161,381 | |||||
Beginning balance at Dec. 31, 2020 | 232,144 | $ 1,617 | 2,029,465 | 7,107,989 | (8,788,984) | (117,943) |
Beginning Balance, shares at Dec. 31, 2020 | 161,666 | |||||
Net income | 476,604 | 476,604 | ||||
Other comprehensive income (loss) | 2,329 | 2,329 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 9,578 | 9,578 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 40 | |||||
Issuance of common stock for stock options exercised | 46,112 | $ 3 | 46,109 | |||
Issuance of common stock for stock options exercised, shares | 275 | |||||
Treasury stock | (492,695) | (492,695) | ||||
Stock-based compensation | 21,150 | $ 1 | 21,149 | |||
Stock-based compensation, shares | 94 | |||||
Ending balance at Oct. 02, 2021 | 295,222 | $ 1,621 | 2,106,301 | 7,584,593 | (9,281,679) | (115,614) |
Ending Balance, shares at Oct. 02, 2021 | 162,075 | |||||
Beginning balance at Jul. 03, 2021 | 268,273 | $ 1,620 | 2,090,052 | 7,423,408 | (9,135,628) | (111,179) |
Beginning Balance, shares at Jul. 03, 2021 | 162,017 | |||||
Net income | 161,185 | 161,185 | ||||
Other comprehensive income (loss) | (4,435) | (4,435) | ||||
Issuance of common stock for Employee Stock Purchase Plan | 2,567 | 2,567 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 8 | |||||
Issuance of common stock for stock options exercised | 7,397 | $ 1 | 7,396 | |||
Issuance of common stock for stock options exercised, shares | 45 | |||||
Treasury stock | (146,051) | (146,051) | ||||
Stock-based compensation | 6,286 | 6,286 | ||||
Stock-based compensation, shares | 5 | |||||
Ending balance at Oct. 02, 2021 | $ 295,222 | $ 1,621 | $ 2,106,301 | $ 7,584,593 | $ (9,281,679) | $ (115,614) |
Ending Balance, shares at Oct. 02, 2021 | 162,075 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2021 | |
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 (“LC-MS”) LC-MS 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 third fiscal quarters for 2021 and 2020 ended on October 2, 2021 and September 26, 2020, respectively. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on Form 10-Q The preparation of consolidated financial statements in conformity with U.S. 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 Risks and Uncertainties The Company is subject to risks common to companies in the analytical instrument industry, including, but not limited to, global economic and financial market conditions, fluctuations in foreign currency exchange rates, fluctuations in customer demand, development by its competitors of new technological innovations, costs of developing new technologies, levels of debt and debt service requirements, risk of disruption, dependence on key personnel, protection and litigation of proprietary technology, shifts in taxable income between tax jurisdictions and compliance with regulations of the U.S. Food and Drug Administration and similar foreign regulatory authorities and agencies. Both the Company’s domestic and international operations have been and continue to be affected by the ongoing global COVID-19 COVID-19 Through the date of the issuance of these financial statements, the Company’s consolidated financial position, results of operations and cash flows have not been materially impacted and, thus, the Company concluded that no goodwill or long-lived asset impairment analyses were required. Further, there have been no violations of debt covenants. Any prolonged material disruption of the Company’s employees, suppliers, manufacturing, or customers could materially impact its consolidated financial position, results of operations or cash flows. 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 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 October 2, 2021 and December 31, 2020, $371 million out of $655 million and $364 million out of $443 million, respectively, of the Company’s total cash, cash equivalents and investments were held by foreign subsidiaries. In addition, $240 million out of $655 million and $254 million out of $443 million of cash, cash equivalents and investments were held in currencies other than the U.S. dollar at October 2, 2021 and December 31, 2020, respectively. Accounts Receivable and Allowance for 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 Company does not consider there to be significant concentrations of credit risk with respect to trade receivables due to the short-term nature of the balances, the Company having a large and diverse customer base, and the Company having a strong historical experience of collecting receivables with minimal defaults. As a result, credit risk is considered low across territories and trade receivables are considered to be a single class of financial asset. The allowance for credit losses is based on a number of factors and is calculated by applying a historical loss rate to trade receivable aging balances to estimate a general reserve balance along with an additional adjustment for any specific receivables with known or anticipated issues affecting the likelihood of recovery. Past due balances with a probability of default based on historical data as well as relevant available forward-looking information are included in the specific adjustment. The historical loss rate is reviewed on at least an annual basis and the allowance for credit losses is reviewed quarterly for any required adjustments. The Company does not have any off-balance sheet credit exposure related to its customers. Trade receivables related to instrument sales are collateralized by the instrument that is sold. If there is a risk of default related to a receivable that is collateralized, then the fair value of the collateral is calculated and adjusted for the cost to re-possess, re-sell The following is a summary of the activity of the Company’s allowance for credit losses for the nine months ended October 2, 2021 and September 26, 2020 (in thousands): Balance at Impact of Additions Deductions Balance at Allowance for Credit Losses October 2, 2021 $ 14,381 $ — $ 3,388 $ (4,107 ) $ 13,662 September 26, 2020 $ 9,560 $ 985 $ 7,826 $ (5,784 ) $ 12,587 Other Investments During the nine months ended October 2, 2021 and September 26, 2020, the Company made investments in unaffiliated companies of $1 million and $4 million, respectively. During the nine months ended October 2, 2021, the Company recorded an unrealized gain on an equity security still held at the reporting date of approximately $10 million within other income (expense) on the income statement. This unrealized gain was recorded as an upward price adjustment to the carrying value of the investment due to an observable price change of a similar security issued during the current period. During the nine months ended September 26, 2020, the Company recorded an unrealized loss on an equity security still held at the reporting date of approximately $1 million within other income (expense) on the income statement. This unrealized loss was recorded as a downward price adjustment to the carrying value of the investment due to an observable price change of a similar security issued during the current period. 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 October 2, 2021 and December 31, 2020. 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 Total at Quoted Prices Significant Significant Assets: U.S. Treasury securities $ 12,043 $ — $ 12,043 $ — Corporate debt securities 83,045 — 83,045 — Time deposits 35,803 — 35,803 — Waters 401(k) Restoration Plan assets 38,587 38,587 — — Foreign currency exchange contracts 93 — 93 — Total $ 169,571 $ 38,587 $ 130,984 $ — Liabilities: Contingent consideration $ 1,307 $ — $ — $ 1,307 Foreign currency exchange contracts 375 — 375 — Interest rate cross-currency swap agreements 12,322 — 12,322 — Total $ 14,004 $ — $ 12,697 $ 1,307 The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2020 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 6,451 $ — $ 6,451 $ — Waters 401(k) Restoration Plan assets 38,988 38,988 — — Foreign currency exchange contracts 836 — 836 — Total $ 46,275 $ 38,988 $ 7,287 $ — Liabilities: Contingent consideration $ 1,185 $ — $ — $ 1,185 Foreign currency exchange contracts 185 — 185 — Interest rate cross-currency swap agreements 44,996 — 44,996 — Total $ 46,366 $ — $ 45,181 $ 1,185 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, foreign currency exchange contracts and interest rate cross-currency swap agreements 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 December 2020 acquisition of Integrated Software Solutions (“ISS”) 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 achievement of certain revenue and customer account milestones over the two years after the acquisition date 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. The fair value of future contingent consideration payments related to the December 2020 acquisition of ISS was estimated to be $1 million at both October 2, 2021 and December 31, 2020. Fair Value of Other Financial Instruments The Company’s accounts receivable and accounts payable are recorded at cost, which approximates fair value due to their short-term nature. The carrying value of the Company’s variable interest rate debt approximates fair value due to the variable nature of the interest rate. The carrying value of the Company’s fixed interest rate debt was $1.3 billion and $910 million at October 2, 2021 and December 31, 2020, 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 $1.3 billion and $963 million at October 2, 2021 and December 31, 2020, 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. 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 As of October 2, 2021, the Company had entered 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): October 2, 2021 December 31, 2020 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 19,000 $ 93 $ 66,690 $ 836 Other current liabilities $ 46,772 $ 375 $ 20,000 $ 185 Interest rate cross-currency swap agreements: Other liabilities $ 340,000 $ 12,322 $ 560,000 $ 44,996 Accumulated other comprehensive loss $ 20,219 $ 44,996 The following is a summary of the activity included in the consolidated statements of operations and statements of comprehensive income related to the foreign currency exchange contracts and interest rate cross-currency swap agreements (in thousands): Financial Statement Classification Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Foreign currency exchange contracts: Realized (losses) gains on closed contracts Cost of sales $ (774 ) $ 1,113 $ 681 $ (45 ) Unrealized (losses) gains on open contracts Cost of sales (933 ) 808 (2,256 ) 1,455 Cumulative net pre-tax Cost of sales $ (1,707 ) $ 1,921 $ (1,575 ) $ 1,410 Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,305 $ 3,777 $ 9,505 $ 11,275 Unrealized gains on open contracts Other comprehensive $ 7,762 $ 19,582 $ 24,777 $ 19,675 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 pre-existing The Company had $20 million of treasury stock purchases that were accrued and unsettled at December 31, 2019. These transactions were settled in January 2020. The Company did not have any unsettled treasury stock purchases as of December 31, 2020 or October 2, 2021. 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 nine months ended October 2, 2021 and September 26, 2020 (in thousands): Balance at Accruals for Settlements Balance at Accrued warranty liability: October 2, 2021 $ 10,950 $ 6,537 $ (6,991 ) $ 10,496 September 26, 2020 $ 11,964 $ 5,442 $ (7,145 ) $ 10,261 Restructuring In January 2020, the Company made organizational changes to better align its resources with its growth and innovation strategies, resulting in a worldwide workforce reduction, impacting 3% of the Company’s employees. During the three and nine months ended September 26, 2020, the Company incurred $6 million and $27 million of severance-related costs, lease termination costs and other related costs. Restructuring charges incurred during the three and nine months ended October 2, 2021 were immaterial. Other Items During the nine months ended October 2, 2021, the Company executed a settlement agreement to resolve patent infringement litigation with Bruker Corporation and Bruker Daltronik GmbH regarding their timsTOF product line. In connection with the settlement, the Company is entitled to receive $10 million in guaranteed payments, including minimum royalty payments, which was recognized within other income in our consolidated statement of operations. During the nine months ended October 2, 2021, the Company received $3 million in guaranteed payments, net of applicable withholding taxes. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 2 Revenue Recognition The Company’s deferred revenue liabilities on the consolidated balance sheets consist 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 nine months ended October 2, 2021 and September 26, 2020 (in thousands): October 2, 2021 September 26, 2020 Balance at the beginning of the period $ 239,759 $ 213,695 Recognition of revenue included in balance at beginning of the period (197,279 ) (177,667 ) Revenue deferred during the period, net of revenue recognized 264,184 213,895 Balance at the end of the period $ 306,664 $ 249,923 The Company classified $44 million and $42 million of deferred revenue and customer advances in other long-term liabilities at October 2, 2021 and December 31, 2020, respectively. 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): October 2, 2021 Deferred revenue and customer advances expected to be recognized in: One year $ 262,758 13- 24 25,076 25 18,830 Total $ 306,664 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Oct. 02, 2021 | |
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): October 2, 2021 Amortized Unrealized Unrealized Fair Value U.S. Treasury securities $ 12,040 $ 3 $ — $ 12,043 Corporate debt securities 83,045 8 (8 ) 83,045 Time deposits 35,803 — — 35,803 Total $ 130,888 $ 11 $ (8 ) $ 130,891 Amounts included in: Cash equivalents $ 401 $ — $ — $ 401 Investments 130,487 11 (8 ) 130,490 Total $ 130,888 $ 11 $ (8 ) $ 130,891 December 31, 2020 Amortized Unrealized Unrealized Fair Time deposits 6,451 — — 6,451 Total $ 6,451 $ — $ — $ 6,451 Amounts included in: Investments 6,451 — — 6,451 Total $ 6,451 $ — $ — $ 6,451 The estimated fair value of marketable debt securities by maturity date is as follows (in thousands): October 2, 2021 December 31, 2020 Due in one year or less $ 128,149 $ 6,451 Due after one year through three years 2,742 — Total $ 130,891 $ 6,451 |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 4 Inventories Inventories are classified as follows (in thousands): October 2, 2021 December 31, 2020 Raw materials $ 158,529 $ 133,490 Work in progress 25,296 18,678 Finished goods 204,931 152,113 Total inventories $ 388,756 $ 304,281 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | 5 Goodwill and Other Intangibles The carrying amount of goodwill was $437 million and $444 million at October 2, 2021 and December 31, 2020, respectively. The effect of foreign currency translation decreased goodwill by $7 million. The Company’s intangible assets included in the consolidated balance sheets are detailed as follows (dollars in thousands): October 2, 2021 December 31, 2020 Gross Accumulated Weighted- Gross Accumulated Weighted- Capitalized software $ 576,988 $ 419,736 5 years $ 584,452 $ 409,847 5 years Purchased intangibles 202,094 162,895 11 years 205,585 160,342 11 years Trademarks 9,680 — — 9,680 — — Licenses 12,616 5,944 7 years 5,923 5,697 6 years Patents and other intangibles 99,906 66,629 8 years 90,699 61,808 8 years Total $ 901,284 $ 655,204 7 years $ 896,339 $ 637,694 7 years During the nine months ended October 2, 2021, the Company paid $7 million in connection with an existing licensing arrangement. The payment was tied to the commercial launch of Waters ™ ™ |
Debt
Debt | 9 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 6 Debt On September 17, 2021, the Company entered into an amended and restated credit agreement (the “2021 Credit Agreement”), which amended the Company’s existing credit agreement entered into in 2017 (the “2017 Credit Agreement”). The 2021 Credit Agreement provides for a $1.8 billion revolving facility (the “2021 Credit Facility”) and converted the $300 million term loan under the 2017 Credit Agreement into part of the new revolving facility. As of October 2, 2021, the 2021 Credit Facility had a total of $310 million outstanding. As of December 31, 2020, the revolving credit facility and the term loan governed by the 2017 Credit Agreement had a total of $100 million and $300 million, respectively, outstanding. The 2021 Credit Facility matures on September 17, 2026 and requires no scheduled prepayments before that date. The interest rates applicable to the 2021 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 (1) the prime rate in effect on such day, (2) the Federal Reserve Bank of New York Rate on such day plus 1/2 of 1% per annum and (3) 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, 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 2021 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 2021 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 2021 Credit Agreement includes negative covenants, affirmative covenants, representations and warranties and events of default that are customary for investment grade credit facilities. In March 2021, the Company issued the following senior unsecured notes: Senior Unsecured Notes Term Interest Rate Face Value Maturity Date Series N 5 years 1.68 % $ 100 March Series O 10 years 2.25 % $ 400 March The Company used the proceeds from the issuance of these senior unsecured notes to repay other outstanding debt and for general corporate purposes. Interest on the Series N and O Senior Notes is payable semi-annually. The Company may prepay some or all of the Senior Notes at any time in an amount not less than 10% of the aggregate principal amount of the Senior Notes then outstanding, plus the applicable make-whole amount for Series N and O Senior Notes, in each case, upon no more than 60 nor less than 20 days’ written notice to the holders of the Senior Notes. In the event of a change in control (as defined in the note purchase agreement) of the Company, the Company may be required to prepay the Senior Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. Other provisions for these senior unsecured notes are similar to the existing senior unsecured notes, as described below. As of October 2, 2021 and December 31, 2020, the Company had a total of $1.3 billion and $1.0 billion, respectively, 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 the Series H senior unsecured note. 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. The Company had the following outstanding debt at October 2, 2021 and December 31, 2020 (in thousands): October 2, 2021 December 31, 2020 Senior unsecured notes—Series E—3.97%, due March 2021 — 50,000 Senior unsecured notes—Series F—3.40%, due June 2021 — 100,000 Total notes payable and debt, current — 150,000 Senior unsecured notes—Series G—3.92%, due June 2024 50,000 50,000 Senior unsecured notes—Series H—floating rate*, due June 2024 50,000 50,000 Senior unsecured notes—Series I — 50,000 50,000 Senior unsecured notes—Series K—3.44%, due May 2026 160,000 160,000 Senior unsecured notes—Series L—3.31%, due September 2026 200,000 200,000 Senior unsecured notes—Series M—3.53%, due September 2029 300,000 300,000 Senior unsecured notes—Series N—1.68%, due March 2026 100,000 — Senior unsecured notes—Series O—2.25%, due March 2031 400,000 — Credit agreement 310,000 400,000 Unamortized debt issuance costs (6,382 ) (3,485 ) Total long-term debt 1,613,618 1,206,515 Total debt $ 1,613,618 $ 1,356,515 * Series H senior unsecured notes bear interest at a 3-month As of October 2, 2021 and December 31, 2020, the Company had a total amount available to borrow under the 2021 or 2017 Credit Agreement of $1.5 billion and $1.4 billion, respectively, after outstanding letters of credit. The weighted-average interest rates applicable to the senior unsecured notes and credit agreement borrowings collectively were 2.67% and 2.92% at October 2, 2021 and December 31, 2020, respectively. As of October 2, 2021, the Company was in compliance with all debt covenants. The Company and its foreign subsidiaries also had available short-term lines of credit totaling $122 million and $109 million at October 2, 2021 and December 31, 2020, respectively, for the purpose of short-term borrowing and issuance of commercial guarantees. None of the Company’s foreign subsidiaries had outstanding short-term borrowings as of October 2, 2021 or December 31, 2020. As of October 2, 2021, the Company had entered into three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $340 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2021 | |
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 were 21%, 12.5%, 19% and 17%, respectively, as of October 2, 2021. The Company had a contractual tax rate of 0% on qualifying activities in Singapore through March 2021, based upon the achievement of certain contractual milestones. The Company has a new Development and Expansion Incentive in Singapore that provides a concessionary income tax rate of 5% on certain types of income for the period April 1, 2021 through March 31, 2026. The effect of applying the concessionary income tax rates rather than the statutory tax rate to income from qualifying activities in Singapore increased the Company’s net income for the nine months ended October 2, 2021 and September 26, 2020 by $13 million and $12 million, respectively, and increased the Company’s net income per diluted share by $0.20 for both periods. The Company’s effective tax rate for the three months ended October 2, 2021 and September 26, 2020 was 11.8% and 15.7%, respectively. The decrease in the effective income tax rate can be attributed to the impact of quarter-specific adjustments and differences in the proportionate amounts of pre-tax The Company’s effective tax rate for the nine months ended October 2, 2021 and September 26, 2020 was 14.0% and 14.3%, respectively. The effective tax rate for the nine months ended October 2, 2021 includes a $6 million tax benefit related to stock-based compensation. This income tax benefit decreased the effective tax rate by 1.1 percentage points for the nine months ended October 2, 2021. The effective tax rate for the nine months ended September 26, 2020 includes a $6 million income tax benefit related to certain restructuring charges and a $3 million tax benefit related to stock-based compensation. These income tax benefits decreased the effective tax rate by 1.8 percentage points and 0.9 percentage points, respectively, for the nine months ended September 26, 2020. The remaining differences between the effective tax rates can primarily be attributed to differences in the proportionate amounts of pre-tax The Company accounts for its uncertain tax return positions in accordance with the accounting standards for income taxes, which require financial statement reporting of the expected future tax consequences of uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of unrecognized tax benefits associated with those reporting 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 gross unrecognized tax benefits, excluding interest and penalties, for the nine months ended October 2, 2021 and September 26, 2020 (in thousands): October 2, 2021 September 26, 2020 Balance at the beginning of the period $ 28,666 $ 27,790 Net reductions for settlement of tax audits (878 ) — Net reductions for lapse of statutes taken during the period (292 ) (427 ) Net additions for tax positions taken during the current period 966 907 Balance at the end of the period $ 28,462 $ 28,270 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, 2015. 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 October 2, 2021, the Company expects to record reductions in the measurement of its unrecognized tax benefits and related net interest and penalties of $18 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. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 02, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 8 Stock-Based Compensation The Company maintains various stockholder-approved, stock-based compensation plans which allow for the issuance of incentive or non-qualified In May 2020, the Company’s stockholders approved the Company’s 2020 Equity Incentive Plan (“2020 Plan”). As of October 2, 2021, the 2020 Plan had 6.7 million shares available for grant in the form 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 and nine months ended October 2, 2021 and September 26, 2020 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 Nine Months Ended October 2, 2021 September 26, October 2, 2021 September 26, Cost of sales $ 468 $ 645 $ 1,828 $ 1,850 Selling and administrative expenses 4,116 7,747 15,810 22,472 Research and development expenses 1,769 1,201 4,311 3,393 Total stock-based compensation $ 6,353 $ 9,593 $ 21,949 $ 27,715 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 Nine Months Ended Options Issued and Significant Assumptions Used to Estimate Option Fair Values October 2, 2021 September 26, 2020 Options issued in thousands 160 267 Risk-free interest rate 0.8 % 1.2 % Expected life in years 6 6 Expected volatility 32.4 % 27.8 % Expected dividends — — Nine Months Ended Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant October 2, 2021 September 26, 2020 Exercise price $ 281.23 $ 215.12 Fair value $ 91.46 $ 62.93 The following table summarizes stock option activity for the plans for the nine months ended October 2, 2021 (in thousands, except per share data): Number of Shares Exercise Price per Share Weighted-Average Outstanding at December 31, 2020 1,067 $ 75.94 to $ $ 179.59 Granted 160 $ 250.15 to $ $ 281.23 Exercised (275 ) $ 99.22 to $ $ 167.89 Canceled (251 ) $ 139.51 to $ $ 197.05 Outstanding at October 2, 2021 701 $ 75.94 to $ $ 200.84 Restricted Stock During the nine months ended October 2, 2021, the Company granted four thousand shares of restricted stock. The weighted-average fair value per share of these awards on the grant date was $254.51. Restricted Stock Units The following table summarizes the unvested restricted stock unit award activity for the nine months ended October 2, 2021 (in thousands, except per share data): Shares Weighted-Average Unvested at December 31, 2020 271 $ 202.00 Granted 88 $ 283.10 Vested (86 ) $ 183.94 Forfeited (22 ) $ 221.64 Unvested at October 2, 2021 251 $ 234.90 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. Beginning with the grants made in 2020, the vesting conditions for performance stock units now include a performance condition based on future sales growth. 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 zero-coupon Nine Months Ended Performance Stock Units Issued and Significant Assumptions Used to Estimate October 2, 2021 September 26, 2020 Performance stock units issued (in thousands) 41 58 Risk-free interest rate 0.2 % 1.3 % Expected life in years 2.9 2.9 Expected volatility 38.7 % 25.1 % Average volatility of peer companies 34.7 % 26.1 % Correlation coefficient 45.8 % 36.6 % Expected dividends — — The following table summarizes the unvested performance stock unit award activity for the nine months ended October 2, 2021 (in thousands, except per share data): Shares Weighted-Average Unvested at December 31, 2020 95 $ 230.36 Granted 41 $ 315.98 Vested (5 ) $ 242.94 Forfeited (44 ) $ 199.22 Unvested at October 2, 2021 87 $ 285.73 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 02, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9 Earnings Per Share Basic and diluted EPS calculations are detailed as follows (in thousands, except per share data): Three Months Ended October 2, 2021 Net Income Weighted- Average Shares Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 161,185 61,359 $ 2.63 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 529 (0.03 ) Net income per diluted common share $ 161,185 61,888 $ 2.60 Three Months Ended September 26, 2020 Net Income Weighted- Per Share Net income per basic common share $ 126,769 62,002 $ 2.04 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 301 (0.01 ) Net income per diluted common share $ 126,769 62,303 $ 2.03 Nine Months Ended October 2, 2021 Net Income Weighted- Per Share Net income per basic common share $ 476,604 61,771 $ 7.72 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 473 (0.06 ) Net income per diluted common share $ 476,604 62,244 $ 7.66 Nine Months Ended September 26, 2020 Net Income Weighted- Per Share Net income per basic common share $ 303,260 62,057 $ 4.89 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 314 (0.03 ) Net income per diluted common share $ 303,260 62,371 $ 4.86 For the three and nine months ended October 2, 2021 and September 26, 2020, the Company had fewer than one million stock options that were antidilutive due to having higher exercise prices than the Company’s average stock price during the applicable 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 | 9 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 10 Accumulated Other Comprehensive Income The components of accumulated other comprehensive loss are detailed as follows (in thousands): Currency Unrealized Gain Unrealized Gain on Accumulated Other Balance at December 31, 2020 $ (98,082 ) $ (19,861 ) $ — $ (117,943 ) Other comprehensive income (loss), net of tax 1,256 1,071 2 2,329 Balance at October 2, 2021 $ (96,826 ) $ (18,790 ) $ 2 $ (115,614 ) |
Retirement Plans
Retirement Plans | 9 Months Ended |
Oct. 02, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | 11 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 in the consolidated statements of operations. The summary of the components of net periodic pension costs for the plans for the three and nine months ended October 2, 2021 and September 26, 2020 is as follows (in thousands): Three Months Ended October 2, 2021 September 26, 2020 U.S. Retiree Non-U.S. U.S. Retiree Non-U.S. Service cost $ 198 $ 1,140 $ 197 $ 1,140 Interest cost 141 309 180 353 Expected return on plan assets (248 ) (459 ) (214 ) (476 ) Settlement loss — 102 — — Net amortization: Prior service (credit) cost (5 ) 13 (4 ) (41 ) Net actuarial loss 8 130 — 397 Net periodic pension cost $ 94 $ 1,235 $ 159 $ 1,373 Nine Months Ended October 2, 2021 September 26, 2020 U.S. Retiree Non-U.S. U.S. Retiree Non-U.S. Service cost $ 663 $ 3,447 $ 499 $ 3,334 Interest cost 419 936 533 1,036 Expected return on plan assets (758 ) (1,389 ) (653 ) (1,386 ) Settlement loss — 102 — — Net amortization: Prior service credit (14 ) (67 ) (14 ) (122 ) Net actuarial loss 8 653 — 1,164 Net periodic pension cost $ 318 $ 3,682 $ 365 $ 4,026 During fiscal year 2021, 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 | 9 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | 12 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 Net sales for the Company’s products and services are as follows for the three and nine months ended October 2, 2021 and September 26, 2020 (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, October 2, 2021 September 26, Product net sales: Waters instrument systems $ 240,475 $ 225,790 $ 717,910 $ 550,018 Chemistry consumables 123,045 108,175 368,478 300,525 TA instrument systems 55,613 42,274 155,722 114,799 Total product sales 419,133 376,239 1,242,110 965,342 Service net sales: Waters service 218,291 199,501 644,625 562,843 TA service 21,809 18,044 62,690 50,522 Total service sales 240,100 217,545 707,315 613,365 Total net sales $ 659,233 $ 593,784 $ 1,949,425 $ 1,578,707 Net sales are attributable to geographic areas based on the region of destination. Geographic sales information is presented below for the three and nine months ended October 2, 2021 and September 26, 2020 (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, October 2, 2021 September 26, Net Sales: Asia: China $ 115,886 $ 115,666 $ 346,030 $ 252,713 Japan 44,293 44,779 139,702 131,098 Asia Other 94,423 75,737 268,359 219,660 Total Asia 254,602 236,182 754,091 603,471 Americas: United States 194,776 172,267 544,124 465,093 Americas Other 36,225 27,180 109,128 81,312 Total Americas 231,001 199,447 653,252 546,405 Europe 173,630 158,155 542,082 428,831 Total net sales $ 659,233 $ 593,784 $ 1,949,425 $ 1,578,707 Net sales by customer class are as follows for the three and nine months ended October 2, 2021 and September 26, 2020 (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, October 2, 2021 September 26, Pharmaceutical $ 398,338 $ 343,001 $ 1,175,191 $ 926,582 Industrial 196,032 179,128 581,884 474,592 Academic and government 64,863 71,655 192,350 177,533 Total net sales $ 659,233 $ 593,784 $ 1,949,425 $ 1,578,707 Net sales for the Company recognized at a point in time versus over time are as follows for the three and nine months ended October 2, 2021 and September 26, 2020 (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Net sales recognized at a point in time: Instrument systems $ 296,088 $ 268,064 $ 873,632 $ 664,817 Chemistry consumables 123,045 108,175 368,478 300,525 Service sales recognized at a point in time (time & materials) 85,093 92,145 253,212 238,754 Total net sales recognized at a point in time 504,226 468,384 1,495,322 1,204,096 Net sales recognized over time: Service and software maintenance sales recognized over time (contracts) 155,007 125,400 454,103 374,611 Total net sales $ 659,233 $ 593,784 $ 1,949,425 $ 1,578,707 |
Recent Accounting Standard Chan
Recent Accounting Standard Changes and Developments | 9 Months Ended |
Oct. 02, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Standard Changes and Developments | 13 Recent Accounting Standard Changes and Developments Recently Adopted Accounting Standards In December 2019, accounting guidance was issued that simplifies the accounting for income taxes by removing certain exceptions within the current guidance, including the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendment also improves consistent application by clarifying and amending existing guidance related to aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step up in the tax basis of goodwill. This guidance is effective for annual and interim periods beginning after December 15, 2020. The Company adopted this standard on January 1, 2021. The adoption of this standard did not have a material impact on the Company’s financial position, results of operations and cash flows. In January 2020, accounting guidance Recently Issued Accounting Standards In March 2020, accounting guidance was issued that facilitates the effects of reference rate reform reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January of 2021, an update was issued to clarify that certain optional expedients and exceptions under the reference rate reform guidance for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in the reference rate reform guidance, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This temporary guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company may elect to apply this guidance for all contract modifications or eligible hedging relationships during that time period subject to certain criteria. The Company is still evaluating the impact of reference rate reform and whether this guidance will be adopted. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2021 | |
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 third fiscal quarters for 2021 and 2020 ended on October 2, 2021 and September 26, 2020, 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 The preparation of consolidated financial statements in conformity with U.S. 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 |
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 U.S. 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 |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks common to companies in the analytical instrument industry, including, but not limited to, global economic and financial market conditions, fluctuations in foreign currency exchange rates, fluctuations in customer demand, development by its competitors of new technological innovations, costs of developing new technologies, levels of debt and debt service requirements, risk of disruption, dependence on key personnel, protection and litigation of proprietary technology, shifts in taxable income between tax jurisdictions and compliance with regulations of the U.S. Food and Drug Administration and similar foreign regulatory authorities and agencies. Both the Company’s domestic and international operations have been and continue to be affected by the ongoing global COVID-19 COVID-19 Through the date of the issuance of these financial statements, the Company’s consolidated financial position, results of operations and cash flows have not been materially impacted and, thus, the Company concluded that no goodwill or long-lived asset impairment analyses were required. Further, there have been no violations of debt covenants. Any prolonged material disruption of the Company’s employees, suppliers, manufacturing, or customers could materially impact its consolidated financial position, results of operations or cash flows. |
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 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 October 2, 2021 and December 31, 2020, $371 million out of $655 million and $364 million out of $443 million, respectively, of the Company’s total cash, cash equivalents and investments were held by foreign subsidiaries. In addition, $240 million out of $655 million and $254 million out of $443 million of cash, cash equivalents and investments were held in currencies other than the U.S. dollar at October 2, 2021 and December 31, 2020, respectively. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for 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 Company does not consider there to be significant concentrations of credit risk with respect to trade receivables due to the short-term nature of the balances, the Company having a large and diverse customer base, and the Company having a strong historical experience of collecting receivables with minimal defaults. As a result, credit risk is considered low across territories and trade receivables are considered to be a single class of financial asset. The allowance for credit losses is based on a number of factors and is calculated by applying a historical loss rate to trade receivable aging balances to estimate a general reserve balance along with an additional adjustment for any specific receivables with known or anticipated issues affecting the likelihood of recovery. Past due balances with a probability of default based on historical data as well as relevant available forward-looking information are included in the specific adjustment. The historical loss rate is reviewed on at least an annual basis and the allowance for credit losses is reviewed quarterly for any required adjustments. The Company does not have any off-balance sheet credit exposure related to its customers. Trade receivables related to instrument sales are collateralized by the instrument that is sold. If there is a risk of default related to a receivable that is collateralized, then the fair value of the collateral is calculated and adjusted for the cost to re-possess, re-sell The following is a summary of the activity of the Company’s allowance for credit losses for the nine months ended October 2, 2021 and September 26, 2020 (in thousands): Balance at Impact of Additions Deductions Balance at Allowance for Credit Losses October 2, 2021 $ 14,381 $ — $ 3,388 $ (4,107 ) $ 13,662 September 26, 2020 $ 9,560 $ 985 $ 7,826 $ (5,784 ) $ 12,587 |
Income Taxes | The Company accounts for its uncertain tax return positions in accordance with the accounting standards for income taxes, which require financial statement reporting of the expected future tax consequences of uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of unrecognized tax benefits associated with those reporting 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. |
Other Investments | Other Investments During the nine months ended October 2, 2021 and September 26, 2020, the Company made investments in unaffiliated companies of $1 million and $4 million, respectively. During the nine months ended October 2, 2021, the Company recorded an unrealized gain on an equity security still held at the reporting date of approximately $10 million within other income (expense) on the income statement. This unrealized gain was recorded as an upward price adjustment to the carrying value of the investment due to an observable price change of a similar security issued during the current period. During the nine months ended September 26, 2020, the Company recorded an unrealized loss on an equity security still held at the reporting date of approximately $1 million within other income (expense) on the income statement. This unrealized loss was recorded as a downward price adjustment to the carrying value of the investment due to an observable price change of a similar security issued during the current period. |
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 October 2, 2021 and December 31, 2020. 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 Total at Quoted Prices Significant Significant Assets: U.S. Treasury securities $ 12,043 $ — $ 12,043 $ — Corporate debt securities 83,045 — 83,045 — Time deposits 35,803 — 35,803 — Waters 401(k) Restoration Plan assets 38,587 38,587 — — Foreign currency exchange contracts 93 — 93 — Total $ 169,571 $ 38,587 $ 130,984 $ — Liabilities: Contingent consideration $ 1,307 $ — $ — $ 1,307 Foreign currency exchange contracts 375 — 375 — Interest rate cross-currency swap agreements 12,322 — 12,322 — Total $ 14,004 $ — $ 12,697 $ 1,307 The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2020 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 6,451 $ — $ 6,451 $ — Waters 401(k) Restoration Plan assets 38,988 38,988 — — Foreign currency exchange contracts 836 — 836 — Total $ 46,275 $ 38,988 $ 7,287 $ — Liabilities: Contingent consideration $ 1,185 $ — $ — $ 1,185 Foreign currency exchange contracts 185 — 185 — Interest rate cross-currency swap agreements 44,996 — 44,996 — Total $ 46,366 $ — $ 45,181 $ 1,185 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, foreign currency exchange contracts and interest rate cross-currency swap agreements 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 December 2020 acquisition of Integrated Software Solutions (“ISS”) 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 achievement of certain revenue and customer account milestones over the two years after the acquisition date 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. The fair value of future contingent consideration payments related to the December 2020 acquisition of ISS was estimated to be $1 million at both October 2, 2021 and December 31, 2020. Fair Value of Other Financial Instruments The Company’s accounts receivable and accounts payable are recorded at cost, which approximates fair value due to their short-term nature. The carrying value of the Company’s variable interest rate debt approximates fair value due to the variable nature of the interest rate. The carrying value of the Company’s fixed interest rate debt was $1.3 billion and $910 million at October 2, 2021 and December 31, 2020, 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 $1.3 billion and $963 million at October 2, 2021 and December 31, 2020, 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. 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 As of October 2, 2021, the Company had entered 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): October 2, 2021 December 31, 2020 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 19,000 $ 93 $ 66,690 $ 836 Other current liabilities $ 46,772 $ 375 $ 20,000 $ 185 Interest rate cross-currency swap agreements: Other liabilities $ 340,000 $ 12,322 $ 560,000 $ 44,996 Accumulated other comprehensive loss $ 20,219 $ 44,996 The following is a summary of the activity included in the consolidated statements of operations and statements of comprehensive income related to the foreign currency exchange contracts and interest rate cross-currency swap agreements (in thousands): Financial Statement Classification Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Foreign currency exchange contracts: Realized (losses) gains on closed contracts Cost of sales $ (774 ) $ 1,113 $ 681 $ (45 ) Unrealized (losses) gains on open contracts Cost of sales (933 ) 808 (2,256 ) 1,455 Cumulative net pre-tax Cost of sales $ (1,707 ) $ 1,921 $ (1,575 ) $ 1,410 Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,305 $ 3,777 $ 9,505 $ 11,275 Unrealized gains on open contracts Other comprehensive $ 7,762 $ 19,582 $ 24,777 $ 19,675 |
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 pre-existing |
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 nine months ended October 2, 2021 and September 26, 2020 (in thousands): Balance at Accruals for Settlements Balance at Accrued warranty liability: October 2, 2021 $ 10,950 $ 6,537 $ (6,991 ) $ 10,496 September 26, 2020 $ 11,964 $ 5,442 $ (7,145 ) $ 10,261 |
Restructuring | Restructuring In January 2020, the Company made organizational changes to better align its resources with its growth and innovation strategies, resulting in a worldwide workforce reduction, impacting 3% of the Company’s employees. During the three and nine months ended September 26, 2020, the Company incurred $6 million and $27 million of severance-related costs, lease termination costs and other related costs. Restructuring charges incurred during the three and nine months ended October 2, 2021 were immaterial. |
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 theCompany’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. |
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 in the consolidated statements of operations. |
New Accounting Pronouncements | Recently Adopted Accounting Standards In December 2019, accounting guidance was issued that simplifies the accounting for income taxes by removing certain exceptions within the current guidance, including the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendment also improves consistent application by clarifying and amending existing guidance related to aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step up in the tax basis of goodwill. This guidance is effective for annual and interim periods beginning after December 15, 2020. The Company adopted this standard on January 1, 2021. The adoption of this standard did not have a material impact on the Company’s financial position, results of operations and cash flows. In January 2020, accounting guidance Recently Issued Accounting Standards In March 2020, accounting guidance was issued that facilitates the effects of reference rate reform reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January of 2021, an update was issued to clarify that certain optional expedients and exceptions under the reference rate reform guidance for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in the reference rate reform guidance, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This temporary guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company may elect to apply this guidance for all contract modifications or eligible hedging relationships during that time period subject to certain criteria. The Company is still evaluating the impact of reference rate reform and whether this guidance will be adopted. |
Revenue Recognition | The Company’s deferred revenue liabilities on the consolidated balance sheets consist 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 nine months ended October 2, 2021 and September 26, 2020 (in thousands): October 2, 2021 September 26, 2020 Balance at the beginning of the period $ 239,759 $ 213,695 Recognition of revenue included in balance at beginning of the period (197,279 ) (177,667 ) Revenue deferred during the period, net of revenue recognized 264,184 213,895 Balance at the end of the period $ 306,664 $ 249,923 The Company classified $44 million and $42 million of deferred revenue and customer advances in other long-term liabilities at October 2, 2021 and December 31, 2020, respectively. 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): October 2, 2021 Deferred revenue and customer advances expected to be recognized in: One year $ 262,758 13- 24 25,076 25 18,830 Total $ 306,664 |
Other Items | Other Items During the nine months ended October 2, 2021, the Company executed a settlement agreement to resolve patent infringement litigation with Bruker Corporation and Bruker Daltronik GmbH regarding their timsTOF product line. In connection with the settlement, the Company is entitled to receive $10 million in guaranteed payments, including minimum royalty payments, which was recognized within other income in our consolidated statement of operations. During the nine months ended October 2, 2021, the Company received $3 million in guaranteed payments, net of applicable withholding taxes. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 credit losses for the nine months ended October 2, 2021 and September 26, 2020 (in thousands): Balance at Impact of Additions Deductions Balance at Allowance for Credit Losses October 2, 2021 $ 14,381 $ — $ 3,388 $ (4,107 ) $ 13,662 September 26, 2020 $ 9,560 $ 985 $ 7,826 $ (5,784 ) $ 12,587 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table represents the Company’s assets and liabilities measured at Total at Quoted Prices Significant Significant Assets: U.S. Treasury securities $ 12,043 $ — $ 12,043 $ — Corporate debt securities 83,045 — 83,045 — Time deposits 35,803 — 35,803 — Waters 401(k) Restoration Plan assets 38,587 38,587 — — Foreign currency exchange contracts 93 — 93 — Total $ 169,571 $ 38,587 $ 130,984 $ — Liabilities: Contingent consideration $ 1,307 $ — $ — $ 1,307 Foreign currency exchange contracts 375 — 375 — Interest rate cross-currency swap agreements 12,322 — 12,322 — Total $ 14,004 $ — $ 12,697 $ 1,307 The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2020 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 6,451 $ — $ 6,451 $ — Waters 401(k) Restoration Plan assets 38,988 38,988 — — Foreign currency exchange contracts 836 — 836 — Total $ 46,275 $ 38,988 $ 7,287 $ — Liabilities: Contingent consideration $ 1,185 $ — $ — $ 1,185 Foreign currency exchange contracts 185 — 185 — Interest rate cross-currency swap agreements 44,996 — 44,996 — Total $ 46,366 $ — $ 45,181 $ 1,185 |
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): October 2, 2021 December 31, 2020 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 19,000 $ 93 $ 66,690 $ 836 Other current liabilities $ 46,772 $ 375 $ 20,000 $ 185 Interest rate cross-currency swap agreements: Other liabilities $ 340,000 $ 12,322 $ 560,000 $ 44,996 Accumulated other comprehensive loss $ 20,219 $ 44,996 |
Gains (Losses) on Foreign Exchange Contracts | The following is a summary of the activity included in the consolidated statements of operations and statements of comprehensive income related to the foreign currency exchange contracts and interest rate cross-currency swap agreements (in thousands): Financial Statement Classification Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Foreign currency exchange contracts: Realized (losses) gains on closed contracts Cost of sales $ (774 ) $ 1,113 $ 681 $ (45 ) Unrealized (losses) gains on open contracts Cost of sales (933 ) 808 (2,256 ) 1,455 Cumulative net pre-tax Cost of sales $ (1,707 ) $ 1,921 $ (1,575 ) $ 1,410 Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,305 $ 3,777 $ 9,505 $ 11,275 Unrealized gains on open contracts Other comprehensive $ 7,762 $ 19,582 $ 24,777 $ 19,675 |
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 nine months ended October 2, 2021 and September 26, 2020 (in thousands): Balance at Accruals for Settlements Balance at Accrued warranty liability: October 2, 2021 $ 10,950 $ 6,537 $ (6,991 ) $ 10,496 September 26, 2020 $ 11,964 $ 5,442 $ (7,145 ) $ 10,261 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Activity of Deferred Revenue and Customer Advances | The following is a summary of the activity of the Company’s deferred revenue and customer advances for the nine months ended October 2, 2021 and September 26, 2020 (in thousands): October 2, 2021 September 26, 2020 Balance at the beginning of the period $ 239,759 $ 213,695 Recognition of revenue included in balance at beginning of the period (197,279 ) (177,667 ) Revenue deferred during the period, net of revenue recognized 264,184 213,895 Balance at the end of the period $ 306,664 $ 249,923 |
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): October 2, 2021 Deferred revenue and customer advances expected to be recognized in: One year $ 262,758 13- 24 25,076 25 18,830 Total $ 306,664 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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): October 2, 2021 Amortized Unrealized Unrealized Fair Value U.S. Treasury securities $ 12,040 $ 3 $ — $ 12,043 Corporate debt securities 83,045 8 (8 ) 83,045 Time deposits 35,803 — — 35,803 Total $ 130,888 $ 11 $ (8 ) $ 130,891 Amounts included in: Cash equivalents $ 401 $ — $ — $ 401 Investments 130,487 11 (8 ) 130,490 Total $ 130,888 $ 11 $ (8 ) $ 130,891 December 31, 2020 Amortized Unrealized Unrealized Fair Time deposits 6,451 — — 6,451 Total $ 6,451 $ — $ — $ 6,451 Amounts included in: Investments 6,451 — — 6,451 Total $ 6,451 $ — $ — $ 6,451 |
Investments Classified By Contractual Maturity Date | The estimated fair value of marketable debt securities by maturity date is as follows (in thousands): October 2, 2021 December 31, 2020 Due in one year or less $ 128,149 $ 6,451 Due after one year through three years 2,742 — Total $ 130,891 $ 6,451 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory, Net of Reserves | Inventories are classified as follows (in thousands): October 2, 2021 December 31, 2020 Raw materials $ 158,529 $ 133,490 Work in progress 25,296 18,678 Finished goods 204,931 152,113 Total inventories $ 388,756 $ 304,281 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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): October 2, 2021 December 31, 2020 Gross Accumulated Weighted- Gross Accumulated Weighted- Capitalized software $ 576,988 $ 419,736 5 years $ 584,452 $ 409,847 5 years Purchased intangibles 202,094 162,895 11 years 205,585 160,342 11 years Trademarks 9,680 — — 9,680 — — Licenses 12,616 5,944 7 years 5,923 5,697 6 years Patents and other intangibles 99,906 66,629 8 years 90,699 61,808 8 years Total $ 901,284 $ 655,204 7 years $ 896,339 $ 637,694 7 years |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Senior Unsecured Notes Issued | In March 2021, the Company issued the following senior unsecured notes: Senior Unsecured Notes Term Interest Rate Face Value Maturity Date Series N 5 years 1.68 % $ 100 March Series O 10 years 2.25 % $ 400 March |
Summary of Outstanding Debt | The Company had the following outstanding debt at October 2, 2021 and December 31, 2020 (in thousands): October 2, 2021 December 31, 2020 Senior unsecured notes—Series E—3.97%, due March 2021 — 50,000 Senior unsecured notes—Series F—3.40%, due June 2021 — 100,000 Total notes payable and debt, current — 150,000 Senior unsecured notes—Series G—3.92%, due June 2024 50,000 50,000 Senior unsecured notes—Series H—floating rate*, due June 2024 50,000 50,000 Senior unsecured notes—Series I — 50,000 50,000 Senior unsecured notes—Series K—3.44%, due May 2026 160,000 160,000 Senior unsecured notes—Series L—3.31%, due September 2026 200,000 200,000 Senior unsecured notes—Series M—3.53%, due September 2029 300,000 300,000 Senior unsecured notes—Series N—1.68%, due March 2026 100,000 — Senior unsecured notes—Series O—2.25%, due March 2031 400,000 — Credit agreement 310,000 400,000 Unamortized debt issuance costs (6,382 ) (3,485 ) Total long-term debt 1,613,618 1,206,515 Total debt $ 1,613,618 $ 1,356,515 * Series H senior unsecured notes bear interest at a 3-month |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | The following is a summary of the activity of the Company’s gross unrecognized tax benefits, excluding interest and penalties, for the nine months ended October 2, 2021 and September 26, 2020 (in thousands): October 2, 2021 September 26, 2020 Balance at the beginning of the period $ 28,666 $ 27,790 Net reductions for settlement of tax audits (878 ) — Net reductions for lapse of statutes taken during the period (292 ) (427 ) Net additions for tax positions taken during the current period 966 907 Balance at the end of the period $ 28,462 $ 28,270 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | The consolidated statements of operations for the three and nine months ended October 2, 2021 and September 26, 2020 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 Nine Months Ended October 2, 2021 September 26, October 2, 2021 September 26, Cost of sales $ 468 $ 645 $ 1,828 $ 1,850 Selling and administrative expenses 4,116 7,747 15,810 22,472 Research and development expenses 1,769 1,201 4,311 3,393 Total stock-based compensation $ 6,353 $ 9,593 $ 21,949 $ 27,715 |
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 nine months ended October 2, 2021 and September 26, 2020 are as follows: Nine Months Ended Options Issued and Significant Assumptions Used to Estimate Option Fair Values October 2, 2021 September 26, 2020 Options issued in thousands 160 267 Risk-free interest rate 0.8 % 1.2 % Expected life in years 6 6 Expected volatility 32.4 % 27.8 % Expected dividends — — |
Stock Options Outstanding Roll Forward | Nine Months Ended Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant October 2, 2021 September 26, 2020 Exercise price $ 281.23 $ 215.12 Fair value $ 91.46 $ 62.93 |
Stock Options Outstanding by Exercise Price Range | The following table summarizes stock option activity for the plans for the nine months ended October 2, 2021 (in thousands, except per share data): Number of Shares Exercise Price per Share Weighted-Average Outstanding at December 31, 2020 1,067 $ 75.94 to $ $ 179.59 Granted 160 $ 250.15 to $ $ 281.23 Exercised (275 ) $ 99.22 to $ $ 167.89 Canceled (251 ) $ 139.51 to $ $ 197.05 Outstanding at October 2, 2021 701 $ 75.94 to $ $ 200.84 |
Restricted Stock Units Unvested Roll Forward | The following table summarizes the unvested restricted stock unit award activity for the nine months ended October 2, 2021 (in thousands, except per share data): Shares Weighted-Average Unvested at December 31, 2020 271 $ 202.00 Granted 88 $ 283.10 Vested (86 ) $ 183.94 Forfeited (22 ) $ 221.64 Unvested at October 2, 2021 251 $ 234.90 |
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 nine months ended October 2, 2021 and September 26, 2020 are as follows: Nine Months Ended Performance Stock Units Issued and Significant Assumptions Used to Estimate October 2, 2021 September 26, 2020 Performance stock units issued (in thousands) 41 58 Risk-free interest rate 0.2 % 1.3 % Expected life in years 2.9 2.9 Expected volatility 38.7 % 25.1 % Average volatility of peer companies 34.7 % 26.1 % Correlation coefficient 45.8 % 36.6 % Expected dividends — — |
Performance Stock Units Unvested Roll Forward | The following table summarizes the unvested performance stock unit award activity for the nine months ended October 2, 2021 (in thousands, except per share data): Shares Weighted-Average Unvested at December 31, 2020 95 $ 230.36 Granted 41 $ 315.98 Vested (5 ) $ 242.94 Forfeited (44 ) $ 199.22 Unvested at October 2, 2021 87 $ 285.73 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 October 2, 2021 Net Income Weighted- Average Shares Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 161,185 61,359 $ 2.63 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 529 (0.03 ) Net income per diluted common share $ 161,185 61,888 $ 2.60 Three Months Ended September 26, 2020 Net Income Weighted- Per Share Net income per basic common share $ 126,769 62,002 $ 2.04 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 301 (0.01 ) Net income per diluted common share $ 126,769 62,303 $ 2.03 Nine Months Ended October 2, 2021 Net Income Weighted- Per Share Net income per basic common share $ 476,604 61,771 $ 7.72 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 473 (0.06 ) Net income per diluted common share $ 476,604 62,244 $ 7.66 Nine Months Ended September 26, 2020 Net Income Weighted- Per Share Net income per basic common share $ 303,260 62,057 $ 4.89 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 314 (0.03 ) Net income per diluted common share $ 303,260 62,371 $ 4.86 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive loss are detailed as follows (in thousands): Currency Unrealized Gain Unrealized Gain on Accumulated Other Balance at December 31, 2020 $ (98,082 ) $ (19,861 ) $ — $ (117,943 ) Other comprehensive income (loss), net of tax 1,256 1,071 2 2,329 Balance at October 2, 2021 $ (96,826 ) $ (18,790 ) $ 2 $ (115,614 ) |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 and nine months ended October 2, 2021 and September 26, 2020 is as follows (in thousands): Three Months Ended October 2, 2021 September 26, 2020 U.S. Retiree Non-U.S. U.S. Retiree Non-U.S. Service cost $ 198 $ 1,140 $ 197 $ 1,140 Interest cost 141 309 180 353 Expected return on plan assets (248 ) (459 ) (214 ) (476 ) Settlement loss — 102 — — Net amortization: Prior service (credit) cost (5 ) 13 (4 ) (41 ) Net actuarial loss 8 130 — 397 Net periodic pension cost $ 94 $ 1,235 $ 159 $ 1,373 Nine Months Ended October 2, 2021 September 26, 2020 U.S. Retiree Non-U.S. U.S. Retiree Non-U.S. Service cost $ 663 $ 3,447 $ 499 $ 3,334 Interest cost 419 936 533 1,036 Expected return on plan assets (758 ) (1,389 ) (653 ) (1,386 ) Settlement loss — 102 — — Net amortization: Prior service credit (14 ) (67 ) (14 ) (122 ) Net actuarial loss 8 653 — 1,164 Net periodic pension cost $ 318 $ 3,682 $ 365 $ 4,026 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
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 and nine months ended October 2, 2021 and September 26, 2020 (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, October 2, 2021 September 26, Product net sales: Waters instrument systems $ 240,475 $ 225,790 $ 717,910 $ 550,018 Chemistry consumables 123,045 108,175 368,478 300,525 TA instrument systems 55,613 42,274 155,722 114,799 Total product sales 419,133 376,239 1,242,110 965,342 Service net sales: Waters service 218,291 199,501 644,625 562,843 TA service 21,809 18,044 62,690 50,522 Total service sales 240,100 217,545 707,315 613,365 Total net sales $ 659,233 $ 593,784 $ 1,949,425 $ 1,578,707 |
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 and nine months ended October 2, 2021 and September 26, 2020 (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, October 2, 2021 September 26, Net Sales: Asia: China $ 115,886 $ 115,666 $ 346,030 $ 252,713 Japan 44,293 44,779 139,702 131,098 Asia Other 94,423 75,737 268,359 219,660 Total Asia 254,602 236,182 754,091 603,471 Americas: United States 194,776 172,267 544,124 465,093 Americas Other 36,225 27,180 109,128 81,312 Total Americas 231,001 199,447 653,252 546,405 Europe 173,630 158,155 542,082 428,831 Total net sales $ 659,233 $ 593,784 $ 1,949,425 $ 1,578,707 |
Summary of Net Sales by Customer Class | Net sales by customer class are as follows for the three and nine months ended October 2, 2021 and September 26, 2020 (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, October 2, 2021 September 26, Pharmaceutical $ 398,338 $ 343,001 $ 1,175,191 $ 926,582 Industrial 196,032 179,128 581,884 474,592 Academic and government 64,863 71,655 192,350 177,533 Total net sales $ 659,233 $ 593,784 $ 1,949,425 $ 1,578,707 |
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 and nine months ended October 2, 2021 and September 26, 2020 (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Net sales recognized at a point in time: Instrument systems $ 296,088 $ 268,064 $ 873,632 $ 664,817 Chemistry consumables 123,045 108,175 368,478 300,525 Service sales recognized at a point in time (time & materials) 85,093 92,145 253,212 238,754 Total net sales recognized at a point in time 504,226 468,384 1,495,322 1,204,096 Net sales recognized over time: Service and software maintenance sales recognized over time (contracts) 155,007 125,400 454,103 374,611 Total net sales $ 659,233 $ 593,784 $ 1,949,425 $ 1,578,707 |
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 | 9 Months Ended | |||||
Jan. 31, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 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 | $ 655,000,000 | $ 655,000,000 | $ 443,000,000 | |||||
Investments in unaffiliated companies | 1,000,000 | $ 4,000,000 | ||||||
Contingent consideration | 1,307,000 | 1,307,000 | 1,185,000 | |||||
Long-term debt | 1,613,618,000 | $ 1,613,618,000 | 1,206,515,000 | |||||
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 | 146,051,000 | $ 56,000 | $ 492,695,000 | 176,352,000 | ||||
Unrealized gain on an equity security | 10,000,000 | |||||||
Unrealized loss on an equity security | $ 1,000,000 | |||||||
Settled Litigation [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Proceeds from guarnteed payments,net of tax | 3,000,000 | 3,000,000 | ||||||
Other Income [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Guaranteed payments received | 10,000,000 | 10,000,000 | ||||||
Employee Severance [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Employees Increase (Decrease), Percentage | 3.00% | |||||||
Severance Lease, Termination and Other Related Costs [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Restructuring and related cost, incurred | 6,000,000 | $ 27,000,000 | ||||||
Cross Currency Interest Rate Contract [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Term of derivative agreement | 3 years | |||||||
Notional value, derivative asset | 340,000,000 | $ 340,000,000 | 340,000,000 | |||||
Programs Authorized by Board of Directors [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Treasury stock shares acquired | 1.5 | 0.8 | ||||||
Treasury stock | $ 484,000,000 | $ 167,000,000,000 | ||||||
Related to Vesting of Restricted Stock Units [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Treasury stock | $ 9,000,000 | $ 10,000,000 | ||||||
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 | 12.7 | |||||||
Treasury stock | $ 3,000,000,000 | |||||||
Stock repurchase program remaining amount authorized for future purchases | 1,000,000,000 | 1,000,000,000 | ||||||
Treasury Stock [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Accrued treasury stock repurchases | 0 | 0 | 0 | $ 20,000,000 | ||||
Held In Currencies Other Than Us Dollars [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Cash, cash equivalents and investments | 240,000,000 | 240,000,000 | 254,000,000 | |||||
Unsecured Debt [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Long-term debt | 1,300,000,000 | 1,300,000,000 | 1,000,000,000 | |||||
Unsecured Debt [Member] | Fixed Interest Rate [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Long-term debt | 1,300,000,000 | 1,300,000,000 | 910,000,000 | |||||
Fair value of fixed interest rate debt | 1,300,000,000 | 1,300,000,000 | 963,000,000 | |||||
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Contingent consideration | 1,307,000 | 1,307,000 | 1,185,000 | |||||
Held By Foreign Subsidiaries [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Cash, cash equivalents and investments | $ 371,000,000 | $ 371,000,000 | $ 364,000,000 |
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 | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $ 14,381 | $ 9,560 |
Impact of CECL Adoption | 985 | |
Additions | 3,388 | 7,826 |
Deductions | (4,107) | (5,784) |
Ending balance | $ 13,662 | $ 12,587 |
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 | Oct. 02, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 130,891 | $ 6,451 |
Waters 401(k) Restoration Plan assets | 38,587 | 38,988 |
Total | 169,571 | 46,275 |
Contingent consideration | 1,307 | 1,185 |
Total | 14,004 | 46,366 |
Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 93 | 836 |
Foreign currency exchange contracts | 375 | 185 |
Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | 12,322 | 44,996 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 12,043 | |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 83,045 | |
Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 35,803 | 6,451 |
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 | 38,587 | 38,988 |
Total | 38,587 | 38,988 |
Contingent consideration | 0 | |
Total | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 0 | |
Foreign currency exchange contracts | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Waters 401(k) Restoration Plan assets | 0 | |
Total | 130,984 | 7,287 |
Contingent consideration | 0 | |
Total | 12,697 | 45,181 |
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 | 93 | 836 |
Foreign currency exchange contracts | 375 | 185 |
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] | ||
Foreign currency exchange contracts | 12,322 | 44,996 |
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 | 12,043 | |
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 | 83,045 | |
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 | 35,803 | 6,451 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Waters 401(k) Restoration Plan assets | 0 | |
Total | 0 | |
Contingent consideration | 1,307 | 1,185 |
Total | 1,307 | $ 1,185 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 0 | |
Foreign currency exchange contracts | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Fair Value of Forward Foreign Exchange Contracts (Detail) - USD ($) | Oct. 02, 2021 | Dec. 31, 2020 |
Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | $ 93,000 | $ 836,000 |
Fair value, derivative liability | 375,000 | 185,000 |
Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative asset | 340,000,000 | 340,000,000 |
Fair value, derivative liability | 12,322,000 | 44,996,000 |
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 | 19,000,000 | 66,690,000 |
Fair value, derivative asset | 93,000 | 836,000 |
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 | 46,772,000 | 20,000,000 |
Fair value, derivative liability | 375,000 | 185,000 |
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 | 340,000,000 | 560,000,000 |
Fair value, derivative asset | 12,322,000 | 44,996,000 |
Accumulated Other Comprehensive Loss (Income) [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | $ 20,219,000 | $ 44,996,000 |
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 | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Cost of Sales [Member] | Foreign Currency Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Realized (losses) gains on closed contracts | $ (774) | $ 1,113 | $ 681 | $ (45) |
Unrealized (losses) gains on open contracts | (933) | 808 | (2,256) | 1,455 |
Cumulative net pre-tax (losses) gains | (1,707) | 1,921 | (1,575) | 1,410 |
Interest Income [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Interest earned | 2,305 | 3,777 | 9,505 | 11,275 |
Other comprehensive income [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Unrealized (losses) gains on open contracts | $ 7,762 | $ 19,582 | $ 24,777 | $ 19,675 |
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 | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at Beginning of Period | $ 10,950 | $ 11,964 |
Accruals for Warranties | 6,537 | 5,442 |
Settlements Made | (6,991) | (7,145) |
Balance at End of Period | $ 10,496 | $ 10,261 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | Oct. 02, 2021 | Dec. 31, 2020 |
Other Long-Term Liabilities [Member] | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances | $ 44 | $ 42 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Activity of the Company's Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Balance at the beginning of the period | $ 239,759 | $ 213,695 |
Recognition of revenue included in balance at beginning of the period | (197,279) | (177,667) |
Revenue deferred during the period, net of revenue recognized | 264,184 | 213,895 |
Balance at the end of the period | $ 306,664 | $ 249,923 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Estimated Amount of Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Oct. 02, 2021 | Dec. 31, 2020 |
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 262,758 | $ 198,240 |
Deferred revenue and customer advances expected to be recognized | 306,664 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 262,758 | |
Deferred revenue and customer advances recognition period | 0 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 25,076 | |
Deferred revenue and customer advances recognition period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 18,830 | |
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 | Oct. 02, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 130,888 | $ 6,451 |
Unrealized Gain | 11 | |
Unrealized Loss | (8) | |
Fair Value | 130,891 | 6,451 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,040 | |
Unrealized Gain | 3 | |
Fair Value | 12,043 | |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 83,045 | |
Unrealized Gain | 8 | |
Unrealized Loss | (8) | |
Fair Value | 83,045 | |
Time Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 35,803 | 6,451 |
Fair Value | 35,803 | 6,451 |
Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 401 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Fair Value | 401 | |
Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 130,487 | 6,451 |
Unrealized Gain | 11 | |
Unrealized Loss | (8) | |
Fair Value | $ 130,490 | $ 6,451 |
Marketable Securities - Investm
Marketable Securities - Investments Classified By Contractual Maturity Date (Detail) - USD ($) $ in Thousands | Oct. 02, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Due in one year or less | $ 128,149 | $ 6,451 |
Due after one year through three years | 2,742 | |
Total | $ 130,891 | $ 6,451 |
Inventories - Inventory, Net of
Inventories - Inventory, Net of Reserves (Detail) - USD ($) $ in Thousands | Oct. 02, 2021 | Dec. 31, 2020 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw materials | $ 158,529 | $ 133,490 |
Work in progress | 25,296 | 18,678 |
Finished goods | 204,931 | 152,113 |
Total inventories | $ 388,756 | $ 304,281 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Dec. 31, 2020 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 436,754 | $ 436,754 | $ 444,362 | ||
Goodwill foreign currency translation adjustments | 7,000 | ||||
Intangible assets, gross foreign currency translation adjustments | (36,000) | ||||
Intangible assets, accumulated amortization foreign currency translation adjustments | (27,000) | ||||
Amortization expense | 15,000 | $ 15,000 | 45,000 | $ 42,000 | |
Future amortization expense, year 1 | 62,000 | 62,000 | |||
Future amortization expense, year 2 | 62,000 | 62,000 | |||
Future amortization expense, year 3 | 62,000 | 62,000 | |||
Future amortization expense, year 4 | 62,000 | 62,000 | |||
Future amortization expense, year 5 | $ 62,000 | 62,000 | |||
Licensing Agreements [Member] | Select Series MRT [Member] | |||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | |||||
Payments to Acquire Intangible Assets | $ 7,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 02, 2021 | Dec. 31, 2020 | |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 901,284 | $ 896,339 |
Accumulated Amortization | $ 655,204 | $ 637,694 |
Weighted-Average Amortization Period | 7 years | 7 years |
Trademarks [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,680 | $ 9,680 |
Software Development [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 576,988 | 584,452 |
Accumulated Amortization | $ 419,736 | $ 409,847 |
Weighted-Average Amortization Period | 5 years | 5 years |
Purchased Intangibles [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 202,094 | $ 205,585 |
Accumulated Amortization | $ 162,895 | $ 160,342 |
Weighted-Average Amortization Period | 11 years | 11 years |
Licensing Agreements [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,616 | $ 5,923 |
Accumulated Amortization | $ 5,944 | $ 5,697 |
Weighted-Average Amortization Period | 7 years | 6 years |
Patents and Other Intangibles [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 99,906 | $ 90,699 |
Accumulated Amortization | $ 66,629 | $ 61,808 |
Weighted-Average Amortization Period | 8 years | 8 years |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Oct. 02, 2021 | Sep. 17, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Debt facility fee | The interest rates applicable to the 2021 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 (1) the prime rate in effect on such day, (2) the Federal Reserve Bank of New York Rate on such day plus 1/2 of 1% per annum and (3) 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, 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 2021 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. | |||
Long-term debt | $ 1,613,618,000 | $ 1,613,618,000 | $ 1,206,515,000 | |
Call feature on debt instrument | In the event of a change in control (as defined in the note purchase agreement) of the Company, the Company may be required to prepay the Senior Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. | |||
Line of credit maximum borrowing capacity | 122,000,000 | $ 122,000,000 | 109,000,000 | |
Cross Currency Interest Rate Contract [Member] | ||||
Debt Instrument [Line Items] | ||||
Notional value, derivative asset | 340,000,000 | $ 340,000,000 | 340,000,000 | |
Derivative instrument, term | 3 years | |||
Notes Payable to Banks [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate terms on debt | The interest rates applicable to the 2021 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 (1) the prime rate in effect on such day, (2) the Federal Reserve Bank of New York Rate on such day plus 1/2 of 1% per annum and (3) 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, 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 2021 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 2021 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 2021 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 | 1,500,000,000 | $ 1,500,000,000 | 1,400,000,000 | |
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 | $ 1,300,000,000 | $ 1,300,000,000 | $ 1,000,000,000 | |
Debt instrument percentage of the amount to be prepaid | 10.00% | 10.00% | ||
Debt instrument interest coverage ratio | 3.50% | |||
Debt instrument leverage ratio | 3.50% | 3.50% | ||
Credit Agreements and Unsecured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted-average interest rate | 2.67% | 2.67% | 2.92% | |
Revolving Facilities [Member] | Notes Payable to Banks [Member] | ||||
Debt Instrument [Line Items] | ||||
Face value of debt | $ 1,800,000,000 | |||
Term Loan Facility [Member] | Notes Payable to Banks [Member] | 2017 Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Face value of debt | $ 300,000,000 | |||
Senior Unsecured Notes [Member] | Prepayment Not Less Than Twenty Days But No More Than Sixty Days [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of prepayemnt of aggregate principal amount of the secured senior notes | 10.00% | |||
Revolving Facility And Term Loan [Member] | Notes Payable to Banks [Member] | 2017 Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt gross | $ 100,000,000 | $ 100,000,000 | $ 300,000,000 | |
2021 Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term debt gross | $ 310,000,000 | $ 310,000,000 | ||
Debt instrument maturity date | Sep. 17, 2026 |
Debt - Summary of Senior Unsecu
Debt - Summary of Senior Unsecured Notes Issued (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 02, 2021 | Dec. 31, 2020 | |
Series N [Member] | ||
Debt Instrument [Line Items] | ||
Term | 5 years | |
Interest Rate | 1.68% | 1.68% |
Face Value | $ 100 | |
Maturity Date | Mar. 31, 2026 | |
Series O [Member] | ||
Debt Instrument [Line Items] | ||
Term | 10 years | |
Interest Rate | 2.25% | 2.25% |
Face Value | $ 400 | |
Maturity Date | Mar. 31, 2031 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Detail) - USD ($) $ in Thousands | Oct. 02, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Total notes payable and debt, current | $ 0 | $ 150,000 | |
Unamortized debt issuance costs | (6,382) | (3,485) | |
Total long-term debt | 1,613,618 | 1,206,515 | |
Total debt | 1,613,618 | 1,356,515 | |
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 310,000 | 400,000 | |
Senior Unsecured Notes Series E [Member] | |||
Debt Instrument [Line Items] | |||
Total notes payable and debt, current | 50,000 | ||
Senior Unsecured Notes Series F [Member] | |||
Debt Instrument [Line Items] | |||
Total notes payable and debt, current | 0 | 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 | |
Senior Unsecured Notes Series L [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 200,000 | 200,000 | |
Senior Unsecured Notes Series M [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300,000 | $ 300,000 | |
Senior Unsecured Notes Series N [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 100,000 | ||
Senior Unsecured Notes Series O [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 400,000 | ||
[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) | 9 Months Ended | 12 Months Ended |
Oct. 02, 2021 | Dec. 31, 2020 | |
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] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 1.25% | 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% |
Senior Unsecured Notes Series L [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.31% | 3.31% |
Senior Unsecured Notes Series M [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 3.53% | 3.53% |
Senior Unsecured Notes Series N [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 1.68% | 1.68% |
Senior Unsecured Notes Series O [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 2.25% | 2.25% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Income Taxes [Line Items] | ||||
Income tax holiday amount | $ 13 | $ 12 | ||
Income tax holiday per share benefit | $ 0.20 | $ 0.20 | ||
Effective income tax rate | 11.80% | 15.70% | 14.00% | 14.30% |
Increase (Decrease) in effective tax rate percentage points | 1.80% | 0.90% | ||
Effect of stock-based compensation | $ 6 | $ 3 | ||
Effective tax rate reconciliation restructuring charges | $ 6 | |||
Effective tax rate reconciliation restructuring charges, percentage | 1.10% | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Expected change in unrecognized tax benefits in the next twelve months | $ 18 | $ 18 | ||
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] | April Two Thousand And Twenty One To March Two Thousand And Twenty Six [Member] | New Contractual Arrangement [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 5.00% | |||
Singapore [Member] | Contractual Tax Rate Singapore [Member] | ||||
Income Taxes [Line Items] | ||||
Marginal effective income tax rate | 0.00% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at the beginning of the period | $ 28,666 | $ 27,790 |
Net reductions for settlement of tax audits | (878) | 0 |
Net reductions for lapse of statutes taken during the period | (292) | (427) |
Net additions for tax positions taken during the current period | 966 | 907 |
Balance at the end of the period | $ 28,462 | $ 28,270 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) shares in Millions | 9 Months Ended |
Oct. 02, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 5 years |
Number of shares available for grant | shares | 6.7 |
Performance Stock Unit Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant date fair value of shares granted | $ 315.98 |
Performance Stock Unit Plan [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights | 0.00% |
Performance Stock Unit Plan [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights | 200.00% |
Restricted Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant date fair value of shares granted | $ 254.51 |
Equity Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 5 years |
Award expiration period | 10 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 6,353 | $ 9,593 | $ 21,949 | $ 27,715 |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 468 | 645 | 1,828 | 1,850 |
Selling and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 4,116 | 7,747 | 15,810 | 22,472 |
Research and Development Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 1,769 | $ 1,201 | $ 4,311 | $ 3,393 |
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 | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Options Issued and Significant Assumptions Used to Estimate Option Fair Values | ||
Options issued | 160 | 267 |
Fair value assumptions, risk free interest rate | 0.80% | 1.20% |
Fair value assumptions, expected life in years | 6 years | 6 years |
Fair value assumptions, expected volatility | 32.40% | 27.80% |
Fair value assumptions, expected dividends | $ 0 | |
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | ||
Weighted-average exercise price of options granted | $ 281.23 | $ 215.12 |
Weighted-average grant date fair value of options granted | $ 91.46 | $ 62.93 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding Roll Forward (Detail) - Equity Option [Member] - $ / shares shares in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at December 31, 2020 | 1,067 | |
Granted | 160 | 267 |
Exercised | (275) | |
Canceled | (251) | |
Outstanding at October 2, 2021 | 701 | |
Weighted-average exercise price of options outstanding at beginning of period | $ 179.59 | |
Weighted-average exercise price of options granted | 281.23 | $ 215.12 |
Weighted-average exercise price of options exercised | 167.89 | |
Weighted average exercise price of options canceled | 197.05 | |
Weighted-average exercise price of options outstanding at end of period | 200.84 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price of options outstanding at beginning of period | 75.94 | |
Weighted-average exercise price of options granted | 250.15 | |
Weighted-average exercise price of options exercised | 99.22 | |
Weighted average exercise price of options canceled | 139.51 | |
Weighted-average exercise price of options outstanding at end of period | 75.94 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average exercise price of options outstanding at beginning of period | 238.52 | |
Weighted-average exercise price of options granted | 371.64 | |
Weighted-average exercise price of options exercised | 238.52 | |
Weighted average exercise price of options canceled | 280.80 | |
Weighted-average exercise price of options outstanding at end of period | $ 371.64 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Unvested Roll Forward (Detail) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended |
Oct. 02, 2021$ / 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 | 271 |
Shares, Granted | shares | 88 |
Shares, Vested | shares | (86) |
Shares, Forfeited | shares | (22) |
Unvested Ending balance, Shares | shares | 251 |
Weighted-average grant date fair value per share of shares unvested at beginning of period | $ / shares | $ 202 |
Weighted-average grant date fair value per share of shares granted | $ / shares | 283.10 |
Weighted-average grant date fair value per share of shares vested | $ / shares | 183.94 |
Weighted-average grant date fair value of shares forfeited | $ / shares | 221.64 |
Weighted-average grant date fair value per share of shares unvested at end of period | $ / shares | $ 234.90 |
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 | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values | ||
Shares granted | 41 | 58 |
Fair value assumptions, risk free interest rate | 0.20% | 1.30% |
Fair value assumptions, expected life in years | 2 years 10 months 24 days | 2 years 10 months 24 days |
Fair value assumptions, expected volatility | 38.70% | 25.10% |
Fair value assumptions, expected volatility of peer companies | 34.70% | 26.10% |
Fair value assumptions, correlation coefficient | 45.80% | 36.60% |
Fair value assumptions, expected dividends | $ 0 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Stock Units Unvested Roll Forward (Detail) - Performance Stock Unit Plan [Member] - $ / shares shares in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Beginning balance, Shares | 95 | |
Shares Granted | 41 | 58 |
Shares Vested | (5) | |
Shares Forfeited | (44) | |
Weighted-average grant date fair value per share of shares unvested at end of period | $ 285.73 | |
Weighted-average grant date fair value per share of shares unvested at beginning of period | 230.36 | |
Weighted-average grant date fair value per share of shares granted | 315.98 | |
Weighted-average grant date fair value per share of shares vested | 242.94 | |
Weighted-average grant date fair value per share of shares forfeited | $ 199.22 | |
Unvested Ending balance, Shares | 87 |
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 | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income per basic common share, Net Income (Numerator) | $ 161,185 | $ 126,769 | $ 476,604 | $ 303,260 |
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities, Net Income (Numerator) | 0 | 0 | 0 | |
Net income per diluted common share, Net Income (Numerator) | $ 161,185 | $ 126,769 | $ 476,604 | $ 303,260 |
Net income per basic common share, Weighted-Average Shares (Denominator) | 61,359 | 62,002 | 61,771 | 62,057 |
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities, Weighted-Average Shares (Denominator) | 529 | 301 | 473 | 314 |
Net income per diluted common share, Weighted-Average Shares (Denominator) | 61,888 | 62,303 | 62,244 | 62,371 |
Net income per basic common share, Per Share Amount | $ 2.63 | $ 2.04 | $ 7.72 | $ 4.89 |
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities, Per Share Amount | (0.03) | (0.01) | (0.06) | (0.03) |
Net income per diluted common share, Per Share Amount | $ 2.60 | $ 2.03 | $ 7.66 | $ 4.86 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 268,273 | $ (191,742) | $ 232,144 | $ (216,281) |
Other comprehensive income (loss), net of tax | (4,435) | 214 | 2,329 | (7,205) |
Ending balance | 295,222 | $ (41,581) | 295,222 | $ (41,581) |
Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (98,082) | |||
Other comprehensive income (loss), net of tax | 1,256 | |||
Ending balance | (96,826) | (96,826) | ||
Unrealized Loss on Retirement Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (19,861) | |||
Other comprehensive income (loss), net of tax | 1,071 | |||
Ending balance | (18,790) | (18,790) | ||
Unrealized Gain (Loss) on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 0 | |||
Other comprehensive income (loss), net of tax | 2 | |||
Ending balance | 2 | 2 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (117,943) | |||
Other comprehensive income (loss), net of tax | 2,329 | |||
Ending balance | $ (115,614) | $ (115,614) |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) $ in Millions | Oct. 02, 2021USD ($) |
Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in current fiscal year | $ 3 |
Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in current fiscal year | $ 6 |
Retirement Plans - Defined Bene
Retirement Plans - Defined Benefit Plan, Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
United States [Member] | Retiree Healthcare Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 198 | $ 197 | $ 663 | $ 499 |
Interest cost | 141 | 180 | 419 | 533 |
Expected return on plan assets | (248) | (214) | (758) | (653) |
Settlement loss | 0 | 0 | 0 | 0 |
Net amortization: Prior service credit | (5) | (4) | (14) | (14) |
Net amortization: Net actuarial loss | 8 | 8 | ||
Net periodic pension cost | 94 | 159 | 318 | 365 |
Non-U.S. Pension Plans [Member] | Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,140 | 1,140 | 3,447 | 3,334 |
Interest cost | 309 | 353 | 936 | 1,036 |
Expected return on plan assets | (459) | (476) | (1,389) | (1,386) |
Settlement loss | 102 | 0 | 102 | 0 |
Net amortization: Prior service credit | 13 | (41) | (67) | (122) |
Net amortization: Net actuarial loss | 130 | 397 | 653 | 1,164 |
Net periodic pension cost | $ 1,235 | $ 1,373 | $ 3,682 | $ 4,026 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 9 Months Ended |
Oct. 02, 2021Segment | |
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 | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 659,233 | $ 593,784 | $ 1,949,425 | $ 1,578,707 |
Waters Instrument Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 240,475 | 225,790 | 717,910 | 550,018 |
Chemistry Consumables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 123,045 | 108,175 | 368,478 | 300,525 |
TA Instrument Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 55,613 | 42,274 | 155,722 | 114,799 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 419,133 | 376,239 | 1,242,110 | 965,342 |
Waters Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 218,291 | 199,501 | 644,625 | 562,843 |
TA Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 21,809 | 18,044 | 62,690 | 50,522 |
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 240,100 | $ 217,545 | $ 707,315 | $ 613,365 |
Business Segment Information _3
Business Segment Information - Summary of Geographic Sales Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 659,233 | $ 593,784 | $ 1,949,425 | $ 1,578,707 |
China [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 115,886 | 115,666 | 346,030 | 252,713 |
Japan [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 44,293 | 44,779 | 139,702 | 131,098 |
Asia Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 94,423 | 75,737 | 268,359 | 219,660 |
Total Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 254,602 | 236,182 | 754,091 | 603,471 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 194,776 | 172,267 | 544,124 | 465,093 |
Americas Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 36,225 | 27,180 | 109,128 | 81,312 |
Total Americas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 231,001 | 199,447 | 653,252 | 546,405 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 173,630 | $ 158,155 | $ 542,082 | $ 428,831 |
Business Segment Information _4
Business Segment Information - Summary of Net Sales by Customer Class (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Revenue, Major Customer [Line Items] | ||||
Total net sales | $ 659,233 | $ 593,784 | $ 1,949,425 | $ 1,578,707 |
Pharmaceutical [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total net sales | 398,338 | 343,001 | 1,175,191 | 926,582 |
Industrial [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total net sales | 196,032 | 179,128 | 581,884 | 474,592 |
Academic and government [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total net sales | $ 64,863 | $ 71,655 | $ 192,350 | $ 177,533 |
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 | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 659,233 | $ 593,784 | $ 1,949,425 | $ 1,578,707 |
Chemistry Consumables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 123,045 | 108,175 | 368,478 | 300,525 |
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 240,100 | 217,545 | 707,315 | 613,365 |
Net Sales Recognized at a Point in Time: [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 504,226 | 468,384 | 1,495,322 | 1,204,096 |
Net Sales Recognized at a Point in Time: [Member] | Instrument Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 296,088 | 268,064 | 873,632 | 664,817 |
Net Sales Recognized at a Point in Time: [Member] | Chemistry Consumables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 123,045 | 108,175 | 368,478 | 300,525 |
Net Sales Recognized at a Point in Time: [Member] | Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 85,093 | 92,145 | 253,212 | 238,754 |
Net Sales Recognized Over Time: [Member] | Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 155,007 | $ 125,400 | $ 454,103 | $ 374,611 |