☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3668640 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | WAT | New York Stock Exchange, Inc. |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page | ||||||||
PART I | FINANCIAL INFORMATION | |||||||
Item 1. | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
9 | ||||||||
10 | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
41 | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
4 3 | ||||||||
4 4 |
(In thousands, except per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 339,036 | $ | 335,715 | ||||
Investments | 16,720 | 1,429 | ||||||
Accounts receivable, net | 496,276 | 587,734 | ||||||
Inventories | 344,009 | 320,551 | ||||||
Other current assets | 73,386 | 67,062 | ||||||
Total current assets | 1,269,427 | 1,312,491 | ||||||
Property, plant and equipment, net | 459,173 | 417,342 | ||||||
Intangible assets, net | 248,993 | 240,203 | ||||||
Goodwill | 427,492 | 356,128 | ||||||
Operating lease assets | 88,619 | 93,358 | ||||||
Other assets | 154,598 | 137,533 | ||||||
Total assets | $ | 2,648,302 | $ | 2,557,055 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Notes payable and debt | $ | 150,000 | $ | 100,366 | ||||
Accounts payable | 50,325 | 49,001 | ||||||
Accrued employee compensation | 33,329 | 43,467 | ||||||
Deferred revenue and customer advances | 213,402 | 176,360 | ||||||
Current operating lease liabilities | 26,862 | 27,125 | ||||||
Accrued income taxes | 87,841 | 45,967 | ||||||
Accrued warranty | 10,113 | 11,964 | ||||||
Other current liabilities | 125,448 | 137,084 | ||||||
Total current liabilities | 697,320 | 591,334 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 1,546,159 | 1,580,797 | ||||||
Long-term portion of retirement benefits | 62,499 | 59,159 | ||||||
Long-term income tax liabilities | 356,607 | 394,562 | ||||||
Long-term operating lease liabilities | 63,828 | 66,881 | ||||||
Other long-term liabilities | 113,631 | 80,603 | ||||||
Total long-term liabilities | 2,142,724 | 2,182,002 | ||||||
Total liabilities | 2,840,044 | 2,773,336 | ||||||
Commitments and contingencies (Notes 7, 8 and 12) | ||||||||
Stockholders’ deficit: | ||||||||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, NaN issued at June 27, 2020 and December 31, 2019 | — | — | ||||||
Common stock, par value $0.01 per share, 400,000 shares authorized, 161,273 and 161,030 shares issued, 61,916 and 62,587 shares outstanding at June 27, 2020 and December 31, 2019, respectively | 1,613 | 1,610 | ||||||
Additional paid-in capital | 1,959,498 | 1,926,753 | ||||||
Retained earnings | 6,762,909 | 6,587,403 | ||||||
Treasury stock, at cost, 99,357 and 98,443 shares at June 27, 2020 and December 31, 2019, respectively | (8,788,872 | ) | (8,612,576 | ) | ||||
Accumulated other comprehensive loss | (126,890 | ) | (119,471 | ) | ||||
Total stockholders’ deficit | (191,742 | ) | (216,281 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 2,648,302 | $ | 2,557,055 | ||||
The accompanying notes are an integral part of the interim consolidated financial statements. |
Three Months Ended | ||||||||
June 27, 2020 | June 29, 2019 | |||||||
(In thousands, except per share data) | ||||||||
Revenues: | ||||||||
Product sales | $ | 314,920 | $ | 387,265 | ||||
Service sales | 205,064 | 211,897 | ||||||
Total net sales | 519,984 | 599,162 | ||||||
Costs and operating expenses: | ||||||||
Cost of product sales | 134,802 | 156,975 | ||||||
Cost of service sales | 78,332 | 92,571 | ||||||
Selling and administrative expenses | 117,449 | 133,208 | ||||||
Research and development expenses | 31,155 | 36,490 | ||||||
Purchased intangibles amortization | 2,618 | 2,264 | ||||||
Litigation provision | 514 | — | ||||||
Total costs and operating expenses | 364,870 | 421,508 | ||||||
Operating income | 155,114 | 177,654 | ||||||
Other expense | (736 | ) | (342 | ) | ||||
Interest expense | (13,018 | ) | (11,448 | ) | ||||
Interest income | 4,003 | 5,871 | ||||||
Income before income taxes | 145,363 | 171,735 | ||||||
Provision for income taxes | 22,434 | 27,325 | ||||||
Net income | $ | 122,929 | $ | 144,410 | ||||
Net income per basic common share | $ | 1.98 | $ | 2.09 | ||||
Weighted-average number of basic common shares | 61,944 | 68,989 | ||||||
Net income per diluted common share | $ | 1.98 | $ | 2.08 | ||||
Weighted-average number of diluted common shares and equivalents | 62,184 | 69,494 |
July 3, 2021 | December 31, 2020 | |||||||
(In thousands, except per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 460,056 | $ | 436,695 | ||||
Investments | 203,566 | 6,451 | ||||||
Accounts receivable, net | 543,072 | 573,316 | ||||||
Inventories | 348,770 | 304,281 | ||||||
Other current assets | 83,086 | 80,290 | ||||||
Total current assets | 1,638,550 | 1,401,033 | ||||||
Property, plant and equipment, net | 527,135 | 494,003 | ||||||
Intangible assets, net | 246,836 | 258,645 | ||||||
Goodwill | 439,826 | 444,362 | ||||||
Operating lease assets | 88,871 | 93,252 | ||||||
Other assets | 162,429 | 148,625 | ||||||
Total assets | $ | 3,103,647 | $ | 2,839,920 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Notes payable and debt | $ | 0 | $ | 150,000 | ||||
Accounts payable | 83,249 | 72,212 | ||||||
Accrued employee compensation | 48,282 | 72,166 | ||||||
Deferred revenue and customer advances | 284,765 | 198,240 | ||||||
Current operating lease liabilities | 27,583 | 27,764 | ||||||
Accrued income taxes | 52,583 | 76,558 | ||||||
Accrued warranty | 10,810 | 10,950 | ||||||
Other current liabilities | 173,746 | 197,093 | ||||||
Total current liabilities | 681,018 | 804,983 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 1,603,367 | 1,206,515 | ||||||
Long-term portion of retirement benefits | 74,794 | 72,620 | ||||||
Long-term income tax liabilities | 319,121 | 357,493 | ||||||
Long-term operating lease liabilities | 61,404 | 68,197 | ||||||
Other long-term liabilities | 95,670 | 97,968 | ||||||
Total long-term liabilities | 2,154,356 | 1,802,793 | ||||||
Total liabilities | 2,835,374 | 2,607,776 | ||||||
Commitments and contingencies (Notes 6, 7 and 11) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, 0ne issued at July 3, 2021 and December 31, 2020 | 0 | 0— | ||||||
Common stock, par value $0.01 per share, 400,000 shares authorized, 162,017 and 161,666 shares issued, 61,481 and 62,309 shares outstanding at July 3, 2021 and December 31, 2020, respectively | 1,620 | 1,617 | ||||||
Additional paid-in capital | 2,090,052 | 2,029,465 | ||||||
Retained earnings | 7,423,408 | 7,107,989 | ||||||
Treasury stock, at cost, 100,536 and 99,357 shares at July 3, 2021 and December 31, 2020, respectively | (9,135,628 | ) | (8,788,984 | ) | ||||
Accumulated other comprehensive loss | (111,179 | ) | (117,943 | ) | ||||
Total stockholders’ equity | 268,273 | 232,144 | ||||||
Total liabilities and stockholders’ equity | $ | 3,103,647 | $ | 2,839,920 | ||||
Six Months Ended | ||||||||
June 27, 2020 | June 29, 2019 | |||||||
(In thousands, except per share data) | ||||||||
Revenues: | ||||||||
Product sales | $ | 589,103 | $ | 707,768 | ||||
Service sales | 395,820 | 405,256 | ||||||
Total net sales | 984,923 | 1,113,024 | ||||||
Costs and operating expenses: | ||||||||
Cost of product sales | 254,641 | 289,365 | ||||||
Cost of service sales | 169,137 | 181,212 | ||||||
Selling and administrative expenses | 265,184 | 267,547 | ||||||
Research and development expenses | 66,144 | 71,550 | ||||||
Purchased intangibles amortization | 5,243 | 4,545 | ||||||
Litigation provision | 1,180 | — | ||||||
Total costs and operating expenses | 761,529 | 814,219 | ||||||
Operating income | 223,394 | 298,805 | ||||||
Other expense | (1,110 | ) | (867 | ) | ||||
Interest expense | (27,097 | ) | (23,011 | ) | ||||
Interest income | 8,039 | 14,186 | ||||||
Income before income taxes | 203,226 | 289,113 | ||||||
Provision for income taxes | 26,735 | 35,717 | ||||||
Net income | $ | 176,491 | $ | 253,396 | ||||
Net income per basic common share | $ | 2.84 | $ | 3.60 | ||||
Weighted-average number of basic common shares | 62,085 | 70,331 | ||||||
Net income per diluted common share | $ | 2.83 | $ | 3.57 | ||||
Weighted-average number of diluted common shares and equivalents | 62,404 | 70,904 |
Three Months Ended | ||||||||
July 3, 2021 | June 27, 2020 | |||||||
(In thousands, except per share data) | ||||||||
Revenues: | ||||||||
Product sales | $ | 440,955 | $ | 314,920 | ||||
Service sales | 240,692 | 205,064 | ||||||
Total net sales | 681,647 | 519,984 | ||||||
Costs and operating expenses: | ||||||||
Cost of product sales | 176,745 | 134,802 | ||||||
Cost of service sales | 103,509 | 78,332 | ||||||
Selling and administrative expenses | 158,213 | 117,449 | ||||||
Research and development expenses | 44,949 | 31,155 | ||||||
Purchased intangibles amortization | 1,809 | 2,618 | ||||||
Litigation provision | 0 | 514 | ||||||
Total costs and operating expenses | 485,225 | 364,870 | ||||||
Operating income | 196,422 | 155,114 | ||||||
Other income (expense) | 9,321 | (736 | ) | |||||
Interest expense | (12,027 | ) | (13,018 | ) | ||||
Interest income | 3,698 | 4,003 | ||||||
Income before income taxes | 197,414 | 145,363 | ||||||
Provision for income taxes | 30,122 | 22,434 | ||||||
Net income | $ | 167,292 | $ | 122,929 | ||||
Net income per basic common share | $ | 2.71 | $ | 1.98 | ||||
Weighted-average number of basic common shares | 61,685 | 61,944 | ||||||
Net income per diluted common share | $ | 2.69 | $ | 1.98 | ||||
Weighted-average number of diluted common shares and equivalents | 62,157 | 62,184 |
Six Months Ended | ||||||||
July 3, 2021 | June 27, 2020 | |||||||
(In thousands, except per share data) | ||||||||
Revenues: | ||||||||
Product sales | $ | 822,977 | $ | 589,103 | ||||
Service sales | 467,215 | 395,820 | ||||||
Total net sales | 1,290,192 | 984,923 | ||||||
Costs and operating expenses: | ||||||||
Cost of product sales | 335,621 | 254,641 | ||||||
Cost of service sales | 198,780 | 169,137 | ||||||
Selling and administrative expenses | 301,409 | 265,184 | ||||||
Research and development expenses | 83,041 | 66,144 | ||||||
Purchased intangibles amortization | 3,649 | 5,243 | ||||||
Litigation provision | 0 | 1,180 | ||||||
Total costs and operating expenses | 922,500 | 761,529 | ||||||
Operating income | 367,692 | 223,394 | ||||||
Other income (expense), net | 18,680 | (1,110 | ) | |||||
Interest expense | (22,973 | ) | (27,097 | ) | ||||
Interest income | 7,799 | 8,039 | ||||||
Income before income taxes | 371,198 | 203,226 | ||||||
Provision for income taxes | 55,779 | 26,735 | ||||||
Net income | $ | 315,419 | $ | 176,491 | ||||
Net income per basic common share | $ | 5.09 | $ | 2.84 | ||||
Weighted-average number of basic common shares | 61,979 | 62,085 | ||||||
Net income per diluted common share | $ | 5.05 | $ | 2.83 | ||||
Weighted-average number of diluted common shares and equivalents | 62,435 | 62,404 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Net income | $ | 122,929 | $ | 144,410 | $ | 176,491 | $ | 253,396 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation | 11,587 | (7,031 | ) | (7,757 | ) | 491 | ||||||||||
Unrealized gains on investments before income taxes | — | 710 | — | 3,054 | ||||||||||||
Income tax expense | — | (157 | ) | — | (704 | ) | ||||||||||
Unrealized gains on investments, net of tax | — | 553 | — | 2,350 | ||||||||||||
Retirement liability adjustment before reclassifications | (522 | ) | (41 | ) | (226 | ) | (102 | ) | ||||||||
Amounts reclassified to other income | 336 | 90 | 676 | 183 | ||||||||||||
Retirement liability adjustment before income taxes | (186 | ) | 49 | 450 | 81 | |||||||||||
Income tax benefit ( expense) | 126 | (23 | ) | (112 | ) | (47 | ) | |||||||||
Retirement liability adjustment, net of tax | (60 | ) | 26 | 338 | 34 | |||||||||||
Other comprehensive income (loss) | 11,527 | (6,452 | ) | (7,419 | ) | 2,875 | ||||||||||
Comprehensive income | $ | 134,456 | $ | 137,958 | $ | 169,072 | $ | 256,271 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Net income | $ | 167,292 | $ | 122,929 | $ | 315,419 | $ | 176,491 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation | (9 | ) | 11,587 | 5,816 | (7,757 | ) | ||||||||||
Unrealized losses on investments before income taxes | (5 | ) | 0 | (15 | ) | 0 | ||||||||||
Unrealized losses on investments, net of tax | (5 | ) | 0 | (15 | ) | 0 | ||||||||||
Retirement liability adjustment before reclassifications | (260 | ) | (522 | ) | 794 | (226 | ) | |||||||||
Amounts reclassified to other income | 218 | 336 | 434 | 676 | ||||||||||||
Retirement liability adjustment before income taxes | (42 | ) | (186 | ) | 1,228 | 450 | ||||||||||
Income tax benefit (expense) | 83 | 126 | (265 | ) | (112 | ) | ||||||||||
Retirement liability adjustment, net of tax | 41 | (60 | ) | 963 | 338 | |||||||||||
Other comprehensive income (loss) | 27 | 11,527 | 6,764 | (7,419 | ) | |||||||||||
Comprehensive income | $ | 167,319 | $ | 134,456 | $ | 322,183 | $ | 169,072 | ||||||||
Six Months Ended | ||||||||
June 27, 2020 | June 29, 2019 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 176,491 | $ | 253,396 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Stock-based compensation | 18,122 | 19,255 | ||||||
Deferred income taxes | (777 | ) | 1,632 | |||||
Depreciation | 33,220 | 28,704 | ||||||
Amortization of intangibles | 26,983 | 24,911 | ||||||
Change in operating assets and liabilities: | ||||||||
Decrease in accounts receivable | 86,978 | 52,508 | ||||||
Increase in inventories | (27,089 | ) | (62,200 | ) | ||||
Increase in other current assets | (14,699 | ) | (11,627 | ) | ||||
Decrease (increase) in other assets | 8,238 | (15,060 | ) | |||||
Increase (decrease) in accounts payable and other current liabilities | 34,714 | (10,439 | ) | |||||
Increase in deferred revenue and customer advances | 37,558 | 54,672 | ||||||
Effect of the 2017 Tax Cuts & Jobs Act | — | (3,229 | ) | |||||
Decrease in other liabilities | (29,293 | ) | (29,720 | ) | ||||
Net cash provided by operating activities | 350,446 | 302,803 | ||||||
Cash flows from investing activities: | ||||||||
Additions to property, plant, equipment and software capitalization | (97,029 | ) | (65,188 | ) | ||||
Business acquisitions, net of cash acquired | (76,664 | ) | — | |||||
Investment in unaffiliated companies | (3,350 | ) | (4,750 | ) | ||||
Purchases of investments | (16,828 | ) | (35,523 | ) | ||||
Maturities and sales of investments | 1,536 | 890,524 | ||||||
Net cash (used in) provided by investing activities | (192,335 | ) | 785,063 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from debt issuances | 315,000 | 363 | ||||||
Payments on debt | (300,366 | ) | (245 | ) | ||||
Proceeds from stock plans | 14,739 | 30,129 | ||||||
Purchases of treasury shares | (196,297 | ) | (1,329,635 | ) | ||||
Proceeds from derivative contracts | 7,558 | 4,654 | ||||||
Net cash used in financing activities | (159,366 | ) | (1,294,734 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 4,576 | (1,414 | ) | |||||
Increase (decrease) in cash and cash equivalents | 3,321 | (208,282 | ) | |||||
Cash and cash equivalents at beginning of period | 335,715 | 796,280 | ||||||
Cash and cash equivalents at end of period | $ | 339,036 | $ | 587,998 | ||||
Six Months Ended | ||||||||
July 3, 2021 | June 27, 2020 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 315,419 | $ | 176,491 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Stock-based compensation | 15,596 | 18,122 | ||||||
Deferred income taxes | 6,107 | (777 | ) | |||||
Depreciation | 34,891 | 33,220 | ||||||
Amortization of intangibles | 29,852 | 26,983 | ||||||
Change in operating assets and liabilities: | ||||||||
Decrease in accounts receivable | 18,985 | 86,978 | ||||||
Increase in inventories | (50,873 | ) | (27,089 | ) | ||||
Increase in other current assets | (10,600 | ) | (14,699 | ) | ||||
(Increase) decrease in other assets | (9,263 | ) | 8,238 | |||||
(Decrease) increase in accounts payable and other current liabilities | (35,328 | ) | 34,714 | |||||
Increase in deferred revenue and customer advances | 91,631 | 37,558 | ||||||
Decrease in other liabilities | (44,973 | ) | (29,293 | ) | ||||
Net cash provided by operating activities | 361,444 | 350,446 | ||||||
Cash flows from investing activities: | ||||||||
Additions to property, plant, equipment and software capitalization | (76,889 | ) | (97,029 | ) | ||||
Business acquisitions, net of cash acquired | 0 | (76,664 | ) | |||||
Investment in unaffiliated companies | 0 | (3,350 | ) | |||||
Payments for intellectual property licenses | (7,000 | ) | — | |||||
Purchases of investments | (215,140 | ) | (16,828 | ) | ||||
Maturities and sales of investments | 17,923 | 1,536 | ||||||
Net cash used in investing activities | (281,106 | ) | (192,335 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from debt issuances | 500,000 | 315,000 | ||||||
Payments on debt | (250,000 | ) | (300,366 | ) | ||||
Payments of debt issuance costs | (3,637 | ) | 0 | |||||
Proceeds from stock plans | 45,036 | 14,739 | ||||||
Purchases of treasury shares | (341,507 | ) | (196,297 | ) | ||||
Proceeds from derivative contracts | 1,917 | 7,558 | ||||||
Net cash used in financing activities | (48,191 | ) | (159,366 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (8,786 | ) | 4,576 | |||||
Increase in cash and cash equivalents | 23,361 | 3,321 | ||||||
Cash and cash equivalents at beginning of period | 436,695 | 335,715 | ||||||
Cash and cash equivalents at end of period | $ | 460,056 | $ | 339,036 | ||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance March 30, 2019 | 160,825 | $ | 1,608 | $ | 1,872,216 | $ | 6,104,191 | $ | (6,901,629 | ) | $ | (108,644 | ) | $ | 967,742 | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 144,410 | — | — | 144,410 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (6,452 | ) | (6,452 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 15 | — | 2,498 | — | — | — | 2,498 | |||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock | — | — | — | — | (561,197 | ) | — | (561,197 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 1 | — | 9,244 | — | — | — | 9,244 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 29, 2019 | 160,841 | $ | 1,608 | $ | 1,883,958 | $ | 6,248,601 | $ | (7,462,826 | ) | $ | (115,096 | ) | $ | 556,245 | |||||||||||||||||||||||||||||||||||||||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Incom Losse ( ) | Total Stockholders’ Deficit | Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficit | |||||||||||||||||||||||||||||||||||||||||||
Balance March 28, 2020 | 161,253 | $ | 1,613 | $ | 1,947,626 | $ | 6,639,980 | $ | (8,788,801 | ) | $ | (138,417 | ) | $ | (337,999 | ) | 161,253 | $ | 1,613 | $ | 1,947,626 | $ | 6,639,980 | $ | (8,788,801 | ) | $ | (138,417 | ) | $ | (337,999 | ) | ||||||||||||||||||||||||
Net income | — | — | — | 122,929 | — | — | 122,929 | — | — | — | 122,929 | — | — | 122,929 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 11,527 | 11,527 | — | — | — | — | — | 11,527 | 11,527 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 12 | — | 2,216 | — | — | — | 2,216 | 12 | — | 2,216 | — | — | — | 2,216 | ||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 6 | — | 779 | — | — | — | 779 | 6 | — | 779 | — | — | — | 779 | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock | — | — | — | — | (71 | ) | — | (71 | ) | — | — | — | — | (71 | ) | — | (71 | ) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2 | 8,877 | — | — | — | 8,877 | 2 | — | 8,877 | — | — | — | 8,877 | |||||||||||||||||||||||||||||||||||||||||||
Balance June 27, 2020 | 161,273 | $ | 1,613 | $ | 1,959,498 | $ | 6,762,909 | $ | (8,788,872 | ) | $ | (126,890 | ) | $ | (191,742 | ) | 161,273 | $ | 1,613 | $ | 1,959,498 | $ | 6,762,909 | $ | (8,788,872 | ) | $ | (126,890 | ) | $ | (191,742 | ) | ||||||||||||||||||||||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||
Balance April 3, 2021 | 161,859 | $ | 1,619 | $ | 2,054,076 | $ | 7,256,116 | $ | (8,969,643 | ) | $ | (111,206 | ) | $ | 230,962 | |||||||||||||
Net income | — | — | — | 167,292 | — | — | 167,292 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 27 | 27 | |||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 22 | — | 5,156 | — | — | — | 5,156 | |||||||||||||||||||||
Stock options exercised | 135 | 1 | 23,584 | — | — | — | 23,585 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (165,985 | ) | — | (165,985 | ) | |||||||||||||||||||
Stock-based compensation | 1 | 7,236 | — | — | — | 7,236 | ||||||||||||||||||||||
Balance July 3, 2021 | 162,017 | $ | 1,620 | $ | 2,090,052 | $ | 7,423,408 | $ | (9,135,628 | ) | $ | (111,179 | ) | $ | 268,273 | |||||||||||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | 160,472 | $ | 1,605 | $ | 1,834,741 | $ | 5,995,205 | $ | (6,146,322 | ) | $ | (117,971 | ) | $ | 1,567,258 | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 253,396 | — | — | 253,396 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 2,875 | 2,875 | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 25 | — | 4,168 | — | — | — | 4,168 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 239 | 2 | 26,097 | — | — | — | 26,099 | |||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock | — | — | — | — | (1,316,504 | ) | — | (1,316,504 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 105 | 1 | 18,952 | — | — | — | 18,953 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance June 29, 2019 | 160,841 | $ | 1,608 | $ | 1,883,958 | $ | 6,248,601 | $ | (7,462,826 | ) | $ | (115,096 | ) | $ | 556,245 | |||||||||||||||||||||||||||||||||||||||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficit | Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficit | |||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | 161,030 | $ | 1,610 | $ | 1,926,753 | $ | 6,587,403 | $ | (8,612,576 | ) | $ | (119,471 | ) | $ | (216,281 | ) | 161,030 | $ | 1,610 | $ | 1,926,753 | $ | 6,587,403 | $ | (8,612,576 | ) | $ | (119,471 | ) | $ | (216,281 | ) | ||||||||||||||||||||||||
Net income | — | — | — | 176,491 | — | — | 176,491 | — | — | — | 176,491 | — | — | 176,491 | ||||||||||||||||||||||||||||||||||||||||||
Adoption of new accounting pronouncement | — | — | — | (985 | ) | — | — | (985 | ) | — | — | — | (985 | ) | — | — | (985 | ) | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (7,419 | ) | (7,419 | ) | — | — | — | — | — | (7,419 | ) | (7,419 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 21 | 3,952 | — | — | — | 3,952 | 21 | — | 3,952 | — | — | — | 3,952 | |||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | 87 | 1 | 10,904 | — | — | — | 10,905 | 87 | 1 | 10,904 | — | — | — | 10,905 | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock | — | — | — | — | (176,296 | ) | — | (176,296 | ) | — | — | — | — | (176,296 | ) | — | (176,296 | ) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 135 | 2 | 17,889 | — | — | — | 17,891 | 135 | 2 | 17,889 | — | — | — | 17,891 | ||||||||||||||||||||||||||||||||||||||||||
Balance June 27, 2020 | 161,273 | $ | 1,613 | $ | 1,959,498 | $ | 6,762,909 | $ | (8,788,872 | ) | $ | (126,890 | ) | $ | (191,742 | ) | 161,273 | $ | 1,613 | $ | 1,959,498 | $ | 6,762,909 | $ | (8,788,872 | ) | $ | (126,890 | ) | $ | (191,742 | ) | ||||||||||||||||||||||||
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Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||
Balance December 31, 2020 | 161,666 | $ | 1,617 | $ | 2,029,465 | $ | 7,107,989 | $ | (8,788,984 | ) | $ | (117,943 | ) | $ | 232,144 | |||||||||||||
Net income | — | — | — | 315,419 | — | — | 315,419 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 6,764 | 6,764 | |||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 32 | 7,011 | — | — | — | 7,011 | ||||||||||||||||||||||
Stock options exercised | 230 | 2 | 38,713 | — | — | — | 38,715 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (346,644 | ) | — | (346,644 | ) | |||||||||||||||||||
Stock-based compensation | 89 | 1 | 14,863 | — | — | — | 14,864 | |||||||||||||||||||||
Balance July 3, 2021 | 162,017 | $ | 1,620 | $ | 2,090,052 | $ | 7,423,408 | $ | (9,135,628 | ) | $ | (111,179 | ) | $ | 268,273 | |||||||||||||
Balance at Beginning of Period | Impact of CECL Adoption | Additions | Deductions | Balance at End of Period | ||||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
July 3, 2021 | $ | 14,381 | $ | — | $ | 3,042 | $ | (2,625 | ) | $ | 14,798 | |||||||||
June 27, 2020 | $ | 9,560 | $ | 985 | $ | 6,664 | $ | (3,901 | ) | $ | 13,308 |
Balance at Beginning of Period | Impact of CECL Adoption | Additions | Deduction | Balance at End of Period | ||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||
June 27, 2020 | $ | 9,560 | $ | 985 | $ | 6,664 | $ | (3,901 | ) | $ | 13,308 | |||||||||
June 29, 2019 | $ | 7,663 | $ | — | $ | 3,793 | $ | (3,426 | ) | $ | 8,030 |
Total at June 27, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Time deposits | $ | 16,720 | $ | — | $ | 16,720 | $ | — | ||||||||
Waters 401(k) Restoration Plan assets | 33,453 | 33,453 | — | — | ||||||||||||
Foreign currency exchange contracts | 366 | — | 366 | — | ||||||||||||
Interest rate cross-currency swap agreements | 4,392 | — | 4,392 | — | ||||||||||||
Total | $ | 54,931 | $ | 33,453 | $ | 21,478 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 2,787 | $ | — | $ | — | $ | 2,787 | ||||||||
Foreign currency exchange contracts | 733 | — | 733 | — | ||||||||||||
Total | $ | 3,520 | $ | — | $ | 733 | $ | 2,787 | ||||||||
Total at July 3, 2021 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
U.S. Treasury securities | $ | 12,051 | $ | 0 | $ | 12,051 | $ | 0 | ||||||||
Corporate debt securities | 130,231 | 0 | 130,231 | 0 | ||||||||||||
Time deposits | 75,897 | 0 | 75,897 | 0 | ||||||||||||
Waters 401(k) Restoration Plan assets | 40,965 | 40,965 | 0 | 0 | ||||||||||||
Foreign currency exchange contracts | 223 | 0 | 223 | 0 | ||||||||||||
Total | $ | 259,367 | $ | 40,965 | $ | 218,402 | $ | 0 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,266 | $ | 0 | $ | 0 | $ | 1,266 | ||||||||
Foreign currency exchange contracts | 142 | 0 | 142 | 0 | ||||||||||||
Interest rate cross-currency swap agreements | 22,457 | 0 | 22,457 | 0 | ||||||||||||
Total | $ | 23,865 | $ | 0 | $ | 22,599 | $ | 1,266 | ||||||||
Total at December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Time deposits | $ | 1,642 | $ | — | $ | 1,642 | $ | — | ||||||||
Waters 401(k) Restoration Plan assets | 30,158 | 30,158 | — | — | ||||||||||||
Foreign currency exchange contracts | 16 | — | 16 | — | ||||||||||||
Interest rate cross-currency swap agreements | 4,485 | 4,485 | ||||||||||||||
Total | $ | 36,301 | $ | 30,158 | $ | 6,143 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 2,557 | $ | — | $ | — | $ | 2,557 | ||||||||
Foreign currency exchange contracts | 1,028 | — | 1,028 | — | ||||||||||||
Total | $ | 3,585 | $ | — | $ | 1,028 | $ | 2,557 | ||||||||
Total at December 31, 2020 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Time deposits | $ | 6,451 | $ | — | $ | 6,451 | $ | — | ||||||||
Waters 401(k) Restoration Plan assets | 38,988 | 38,988 | — | — | ||||||||||||
Foreign currency exchange contracts | 836 | — | 836 | — | ||||||||||||
Total | $ | 46,275 | $ | 38,988 | $ | 7,287 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,185 | $ | — | $ | — | $ | 1,185 | ||||||||
Foreign currency exchange contracts | 185 | — | 185 | — | ||||||||||||
Interest rate cross-currency swap agreements | 44,996 | — | 44,996 | — | ||||||||||||
Total | $ | 46,366 | $ | — | $ | 45,181 | $ | 1,185 | ||||||||
June 27, 2020 | December 31, 2019 | July 3, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||||||||||||||
Other current assets | $ | 29,735 | $ | 366 | $ | 119,576 | $ | 16 | $ | 21,000 | $ | 223 | $ | 66,690 | $ | 836 | ||||||||||||||||
Other current liabilities | $ | 91,393 | $ | 733 | $ | 29,495 | $ | 1,028 | $ | 40,030 | $ | 142 | $ | 20,000 | $ | 185 | ||||||||||||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||||||||||||||||||
Other assets | $ | 560,000 | $ | 4,392 | $ | 560,000 | $ | 4,485 | ||||||||||||||||||||||||
Accumulated other comprehensive income | $ | (4,392 | ) | $ | (4,485 | ) | ||||||||||||||||||||||||||
Other liabilities | $ | 490,000 | $ | (22,457 | ) | $ | 560,000 | $ | (44,996 | ) | ||||||||||||||||||||||
Accumulated other comprehensive loss | $ | 27,981 | $ | 44,996 |
Financial Statement Classification | Three Months Ended | Six Months Ended | ||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||
Realized (losses) gains on closed contracts | Cost of sales | $ | (213 | ) | $ | 1,823 | $ | 1,455 | $ | (1,157 | ) | |||||||
Unrealized (losses) gains on open contracts | Cost of sales | (569 | ) | (678 | ) | (1,323 | ) | 646 | ||||||||||
Cumulative net pre-tax (losses) gains | Cost of sales | $ | (782 | ) | $ | 1,145 | $ | 132 | $ | (511 | ) | |||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||||
Interest earned | Interest income | $ | 3,373 | $ | 3,784 | $ | 7,200 | $ | 7,498 | |||||||||
Unrealized (losses) gains on open contracts | Stockholders’ equity (deficit) | $ | (4,229 | ) | $ | (5,615 | ) | $ | 17,015 | $ | (93 | ) |
Financial | Three Months Ended | Six Months Ended | ||||||||||||||||
Statement | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||
Classification | ||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||
Realized gains (losses) on closed contracts | Cost of sales | $ | 1,823 | $ | 136 | $ | (1,157 | ) | $ | (407 | ) | |||||||
Unrealized (losses) gains on open contracts | Cost of sales | (678 | ) | (3,044 | ) | 646 | (2,518 | ) | ||||||||||
Cumulative net pre-tax gains (losses) | Cost of sales | $ | 1,145 | $ | (2,908 | ) | $ | (511 | ) | $ | (2,925 | ) | ||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||||
Interest earned | Interest income | $ | 3,784 | $ | 2,923 | $ | 7,498 | $ | 5,150 | |||||||||
Unrealized (losses) gains on open contracts | Stockholders’ equity | $ | (5,615 | ) | $ | (6,022 | ) | $ | (93 | ) | $ | 1,098 |
Balance at Beginning of Period | Accruals for Warranties | Settlements Made | Balance at End of Period | |||||||||||||
Accrued warranty liability: | ||||||||||||||||
June 27, 2020 | $ | 11,964 | $ | 3,577 | $ | (5,428 | ) | $ | 10,113 | |||||||
June 29, 2019 | $ | 12,300 | $ | 3,571 | $ | (4,288 | ) | $ | 11,583 |
Balance at Beginning of Period | Accruals for Warranties | Settlements Made | Balance at End of Period | |||||||||||||
Accrued warranty liability: | ||||||||||||||||
July 3, 2021 | $ | 10,950 | $ | 4,719 | $ | (4,859 | ) | $ | 10,810 | |||||||
June 27, 2020 | $ | 11,964 | $ | 3,577 | $ | (5,428 | ) | $ | 10,113 |
June 27, 2020 | June 29, 2019 | |||||||
Balance at the beginning of the period | $ | 213,695 | $ | 204,257 | ||||
Recognition of revenue included in balance at beginning of the period | (141,297 | ) | (172,949 | ) | ||||
Revenue deferred during the period, net of revenue recognized | 195,444 | 229,162 | ||||||
Balance at the end of the period | $ | 267,842 | $ | 260,470 | ||||
July 3, 2021 | June 27, 2020 | |||||||
Balance at the beginning of the period | $ | 239,759 | $ | 213,695 | ||||
Recognition of revenue included in balance at beginning of the period | (159,393 | ) | (141,297 | ) | ||||
Revenue deferred during the period, net of revenue recognized | 251,065 | 195,444 | ||||||
Balance at the end of the period | $ | 331,431 | $ | 267,842 | ||||
June 27, 2020 | ||||
Deferred revenue and customer advances expected to be recognized in: | ||||
One year or less | $ | 213,402 | ||
13-24 months | 34,151 | |||
25 months and beyond | 20,289 | |||
Total | $ | 267,842 | ||
July 3, 2021 | ||||
Deferred revenue and customer advances expected to be recognized in: | ||||
One year or less | $ | 284,765 | ||
13 -24 | 28,343 | |||
25 months and beyond | 18,323 | |||
Total | $ | 331,431 | ||
June 27, 2020 | July 3, 2021 | |||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 12,050 | $ | 1 | $ | — | $ | 12,051 | ||||||||||||||||||||||||
Corporate debt securities | 130,246 | 3 | (18 | ) | 130,231 | |||||||||||||||||||||||||||
Time deposits | 16,720 | — | — | 16,720 | 75,897 | — | — | 75,897 | ||||||||||||||||||||||||
Total | $ | 16,720 | $ | — | $ | — | $ | 16,720 | $ | 218,193 | $ | 4 | $ | (18 | ) | $ | 218,179 | |||||||||||||||
Amounts included in: | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 14,614 | $ | 0 | $ | (1 | ) | $ | 14,613 | |||||||||||||||||||||||
Investments | 16,720 | — | — | 16,720 | 203,579 | 4 | (17 | ) | 203,566 | |||||||||||||||||||||||
Total | $ | 16,720 | $ | — | $ | — | $ | 16,720 | $ | 218,193 | $ | 4 | $ | (18 | ) | $ | 218,179 | |||||||||||||||
December 31, 2019 | December 31, 2020 | |||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | |||||||||||||||||||||||||
Time deposits | 1,642 | — | — | 1,642 | 6,451 | — | — | 6,451 | ||||||||||||||||||||||||
Total | $ | 1,642 | $ | — | $ | — | $ | 1,642 | $ | 6,451 | $ | — | $ | — | $ | 6,451 | ||||||||||||||||
Amounts included in: | ||||||||||||||||||||||||||||||||
Cash equivalents | $ | 213 | $ | — | $ | — | $ | 213 | ||||||||||||||||||||||||
Investments | 1,429 | — | — | 1,429 | 6,451 | — | — | 6,451 | ||||||||||||||||||||||||
Total | $ | 1,642 | $ | — | $ | — | $ | 1,642 | $ | 6,451 | $ | — | $ | — | $ | 6,451 | ||||||||||||||||
June 27, 2020 | December 31, 2019 | |||||||
Due in one year or less | $ | 16,720 | $ | 1,642 | ||||
Total | $ | 16,720 | $ | 1,642 | ||||
July 3, 2021 | December 31, 2020 | |||||||
Due in one year or less | $ | 203,368 | $ | 6,451 | ||||
Due after one year through three years | 14,811 | — | ||||||
Total | $ | 218,179 | $ | 6,451 | ||||
June 27, 2020 | December 31, 2019 | |||||||
Raw materials | $ | 139,452 | $ | 126,850 | ||||
Work in progress | 15,878 | 15,457 | ||||||
Finished goods | 188,679 | 178,244 | ||||||
Total inventories | $ | 344,009 | $ | 320,551 | ||||
July 3, 2021 | December 31, 2020 | |||||||
Raw materials | $ | 149,562 | $ | 133,490 | ||||
Work in progress | 23,224 | 18,678 | ||||||
Finished goods | 175,984 | 152,113 | ||||||
Total inventories | $ | 348,770 | $ | 304,281 | ||||
Cash | $ | 713 | ||
Accounts receivable and current other assets | 806 | |||
Inventory | 669 | |||
Prepaid and other assets | 611 | |||
Property, plant and equipment, net | 757 | |||
Operating lease assets | 847 | |||
Intangible assets | 6,960 | |||
Goodwill | 71,632 | |||
Total assets acquired | 82,995 | |||
Accrued expenses and other liabilities | 2,093 | |||
Total consideration | 80,902 | |||
Fair value of minority investment | 3,525 | |||
Cash consideration paid | $ | 77,377 | ||
June 27, 2020 | December 31, 2019 | July 3, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | |||||||||||||||||||||||||||||||||||||||||||||
Capitalized software | $ | 512,047 | $ | 356,036 | 5 years | $ | 481,986 | $ | 333,255 | 5 years | $ | 578,641 | $ | 418,409 | 5 | years | $ | 584,452 | $ | 409,847 | 5 | years | ||||||||||||||||||||||||||||||||||
Purchased intangibles | 207,733 | 156,065 | 11 years | 200,523 | 151,722 | 11 years | 203,421 | 162,312 | 11 | years | 205,585 | 160,342 | 11 | years | ||||||||||||||||||||||||||||||||||||||||||
Trademarks and IPR&D | 13,601 | — | — | 13,782 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | 9,680 | — | — | 9,680 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Licenses | 5,483 | 5,195 | 6 years | 5,669 | 5,298 | 6 years | 12,882 | 5,803 | 7 | years | 5,923 | 5,697 | 6 | years | ||||||||||||||||||||||||||||||||||||||||||
Patents and other intangibles | 84,453 | 57,028 | 8 years | 83,035 | 54,517 | 8 years | 94,043 | 65,307 | 8 | years | 90,699 | 61,808 | 8 | years | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 823,317 | $ | 574,324 | 7 years | $ | 784,995 | $ | 544,792 | 7 years | $ | 898,667 | $ | 651,831 | 7 | years | $ | 896,339 | $ | 637,694 | 7 | years | ||||||||||||||||||||||||||||||||||
Senior Unsecured Notes | Term | Interest Rate | Face Value (in millions) | Maturity Date | ||||||||||||
Series N | 5 years | 1.68 | % | $ | 100 | March 2026 | ||||||||||
Series O | 10 years | 2.25 | % | $ | 400 | March 2031 |
June 27, 2020 | December 31, 2019 | |||||||
Foreign subsidiary lines of credit | $ | — | $ | 366 | ||||
Senior unsecured notes - Series B - 5.00%, due February 2020 | — | 100,000 | ||||||
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 | 100,366 | ||||||
Senior unsecured notes - Series E - 3.97%, due March 2021 | — | 50,000 | ||||||
Senior unsecured notes - Series F - 3.40%, due June 2021 | — | 100,000 | ||||||
Senior unsecured notes - Series G - 3.92%, due June 2024 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series H - floating rate*, due June 2024 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series I - 3.13%, due May 2023 | 50,000 | 50,000 | ||||||
Senior unsecured notes - Series K - 3.44%, due May 2026 | 160,000 | 160,000 | ||||||
Senior unsecured notes - Series L - 3.31%, due September 2026 | 200,000 | 200,000 | ||||||
Senior unsecured notes - Series M - 3.53%, due September 2029 | 300,000 | 300,000 | ||||||
Credit agreement | 740,000 | 625,000 | ||||||
Unamortized debt issuance costs | (3,841 | ) | (4,203 | ) | ||||
Total long-term debt | 1,546,159 | 1,580,797 | ||||||
Total debt | $ | 1,696,159 | $ | 1,681,163 | ||||
July 3, 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 | 0 | 100,000 | ||||||
Total notes payable and debt, current | 0 | 150,000 | ||||||
Senior unsecured notes—Series G—3.92%, due June 2024 | 50,000 | 50,000 | ||||||
Senior unsecured notes—Series H—floating rate*, due June 2024 | 50,000 | 50,000 | ||||||
Senior unsecured notes—Series I—3.13%, due May 2023 | 50,000 | 50,000 | ||||||
Senior unsecured notes—Series K—3.44%, due May 2026 | 160,000 | 160,000 | ||||||
Senior unsecured notes—Series L—3.31%, due September 2026 | 200,000 | 200,000 | ||||||
Senior unsecured notes—Series M—3.53%, due September 2029 | 300,000 | 300,000 | ||||||
Senior unsecured notes—Series N—1.68%, due March 2026 | 100,000 | — | ||||||
Senior unsecured notes—Series O—2.25%, due March 2031 | 400,000 | — | ||||||
Credit agreement | 300,000 | 400,000 | ||||||
Unamortized debt issuance costs | (6,633 | ) | (3,485 | ) | ||||
Total long-term debt | 1,603,367 | 1,206,515 | ||||||
Total debt | $ | 1,603,367 | $ | 1,356,515 | ||||
* | Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. |
June 27, 2020 | June 29, 2019 | |||||||
Balance at the beginning of the period | $ | 27,790 | $ | 26,108 | ||||
Net reductions for lapse of statutes taken during the period | (252 | ) | (105 | ) | ||||
Net additions for tax positions taken during the current period | 536 | 801 | ||||||
Balance at the end of the period | $ | 28,074 | $ | 26,804 | ||||
July 3, 2021 | June 27, 2020 | |||||||
Balance at the beginning of the period | $ | 28,666 | $ | 27,790 | ||||
Net reductions for settlement of tax audits | (593 | ) | 0 | |||||
Net reductions for lapse of statutes taken during the period | (198 | ) | (252 | ) | ||||
Net additions for tax positions taken during the current period | 653 | 536 | ||||||
Balance at the end of the period | $ | 28,528 | $ | 28,074 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Cost of sales | $ | 635 | $ | 567 | $ | 1,205 | $ | 1,142 | ||||||||
Selling and administrative expenses | 7,352 | 7,402 | 14,725 | 15,527 | ||||||||||||
Research and development expenses | 939 | 1,345 | 2,192 | 2,586 | ||||||||||||
Total stock-based compensation | $ | 8,926 | $ | 9,314 | $ | 18,122 | $ | 19,255 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||
Cost of sales | $ | 727 | $ | 635 | $ | 1,360 | $ | 1,205 | ||||||||
Selling and administrative expenses | 5,274 | 7,352 | 11,694 | 14,725 | ||||||||||||
Research and development expenses | 1,290 | 939 | 2,542 | 2,192 | ||||||||||||
Total stock-based compensation | $ | 7,291 | $ | 8,926 | $ | 15,596 | $ | 18,122 | ||||||||
Six Months Ended | ||||||||
Options Issued and Significant Assumptions Used to Estimate Option Fair Values | June 27, 2020 | June 29, 2019 | ||||||
Options issued in thousands | 227 | 139 | ||||||
Risk-free interest rate | 1.4 | % | 2.5 | % | ||||
Expected life in years | 6 | 5 | ||||||
Expected volatility | 26.5 | % | 24.3 | % | ||||
Expected dividends | — | — |
Six Months Ended | ||||||||
Options Issued and Significant Assumptions Used to Estimate Option Fair Values | July 3, 2021 | June 27, 2020 | ||||||
Options issued in thousands | 159 | 227 | ||||||
Risk-free interest rate | 0.8 | % | 1.4 | % | ||||
Expected life in years | 6 | 6 | ||||||
Expected volatility | 32.5 | % | 26.5 | % | ||||
Expected dividends | 0 | — |
Six Months Ended | ||||||||
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | July 3, 2021 | June 27, 2020 | ||||||
Exercise price | $ | 280.92 | $ | 216.08 | ||||
Fair value | $ | 91.42 | $ | 61.70 |
Six Months Ended | ||||||||
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | June 27, 2020 | June 29, 2019 | ||||||
Exercise price | $ | 216.08 | $ | 231.30 | | |||
Fair value | $ | 61.70 | $ | 61.85 |
Number of Shares | Exercise Price per Share | Weighted-Average Exercise Price per Share | ||||||||||||||||
Outstanding at December 31, 2019 | 1,455 | $ | 61.63 | to | $ | 238.52 | $ | 158.61 | ||||||||||
Granted | 227 | $ | 203.37 | to | $ | 235.06 | $ | 216.08 | ||||||||||
Exercised | (87 | ) | $ | 61.63 | to | $ | 208.47 | $ | 125.50 | |||||||||
Canceled | (148 | ) | $ | 128.93 | to | $ | 238.52 | $ | 172.91 | |||||||||
Outstanding at June 27, 2020 | 1,447 | $ | 75.94 | to | $ | 238.52 | $ | 168.15 | ||||||||||
Number of Shares | Exercise Price per Share | Weighted-Average Exercise Price per Share | ||||||||||||||||||
Outstanding at December 31, 2020 | 1,067 | $ | 75.94 | to | $ | 238.52 | $ | 179.59 | ||||||||||||
Granted | 159 | $ | 250.15 | to | $ | 346.56 | $ | 280.92 | ||||||||||||
Exercised | (230 | ) | $ | 99.22 | to | $ | 238.52 | $ | 168.39 | |||||||||||
Canceled | (228 | ) | $ | 139.51 | to | $ | 224.37 | $ | 194.59 | |||||||||||
Outstanding at July 3, 2021 | 768 | $ | 75.94 | to | $ | 346.56 | $ | 199.21 | ||||||||||||
Shares | Weighted-Average Grant Date Fair Value per Share | |||||||
Unvested at December 31, 2019 | 260 | $ | 184.70 | |||||
Granted | 105 | $ | 206.73 | |||||
Vested | (86 | ) | $ | 161.84 | ||||
Forfeited | (15 | ) | $ | 185.91 | ||||
Unvested at June 27, 2020 | 264 | $ | 200.84 | |||||
Shares | Weighted-Average Grant Date Fair Value per Share | |||||||
Unvested at December 31, 2020 | 271 | $ | 202.00 | |||||
Granted | 88 | $ | 282.94 | |||||
Vested | (81 | ) | $ | 182.26 | ||||
Forfeited | (14 | ) | $ | 220.23 | ||||
Unvested at July 3, 2021 | 264 | $ | 234.07 | |||||
Six Months Ended | ||||||||
Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values | June 27, 2020 | June 29, 2019 | ||||||
Performance stock units issued (in thousands) | 58 | 13 | ||||||
Risk-free interest rate | 1.3 | % | 2.4 | % | ||||
Expected life in years | 2.9 | 2.8 | ||||||
Expected volatility | 25.1 | % | 23.5 | % | ||||
Average volatility of peer companies | 26.1 | % | 26.2 | % | ||||
Correlation coefficient | 36.6 | % | 34.2 | % | ||||
Expected dividends | — | — |
Six Months Ended | ||||||||
Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values | July 3, 2021 | June 27, 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 | 0 | — |
Shares | Weighted-Average Fair Value per Share | |||||||
Unvested at December 31, 2019 | 105 | $ | 233.11 | |||||
Granted | 58 | $ | 190.45 | |||||
Vested | (37 | ) | $ | 184.51 | ||||
Forfeited | (24 | ) | $ | 233.31 | ||||
Unvested at June 27, 2020 | 102 | $ | 226.44 | |||||
Shares | Weighted-Average Fair Value per Share | |||||||
Unvested at December 31, 2020 | 95 | $ | 230.36 | |||||
Granted | 41 | $ | 315.98 | |||||
Vested | (5 | ) | $ | 242.94 | ||||
Forfeited | (39 | ) | $ | 229.78 | ||||
Unvested at July 3, 2021 | 92 | $ | 268.08 | |||||
Three Months Ended June 27, 2020 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
Net income per basic common share | $ | 122,929 | 61,944 | $ | 1.98 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 240 | — | |||||||||
Net income per diluted common share | $ | 122,929 | 62,184 | $ | 1.98 | |||||||
Three Months Ended July 3, 2021 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
Net income per basic common share | $ | 167,292 | 61,685 | $ | 2.71 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | 0 | 472 | (0.02 | ) | ||||||||
Net income per diluted common share | $ | 167,292 | 62,157 | $ | 2.69 | |||||||
Three Months Ended June 27, 2020 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
Net income per basic common share | $ | 122,929 | 61,944 | $ | 1.98 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 240 | — | |||||||||
Net income per diluted common share | $ | 122,929 | 62,184 | $ | 1.98 | |||||||
Three Months Ended June 29, 2019 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
Net income per basic common share | $ | 144,410 | 68,989 | $ | 2.09 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 505 | (0.01 | ) | ||||||||
Net income per diluted common share | $ | 144,410 | 69,494 | $ | 2.08 | |||||||
Six Months Ended June 27, 2020 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
Net income per basic common share | $ | 176,491 | 62,085 | $ | 2.84 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 319 | (0.01 | ) | ||||||||
Net income per diluted common share | $ | 176,491 | 62,404 | $ | 2.83 | |||||||
Six Months Ended July 3, 2021 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
Net income per basic common share | $ | 315,419 | 61,979 | $ | 5.09 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | 0 | 456 | (0.04 | ) | ||||||||
Net income per diluted common share | $ | 315,419 | 62,435 | $ | 5.05 | |||||||
Six Months Ended June 27, 2020 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
Net income per basic common share | $ | 176,491 | 62,085 | $ | 2.84 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | 0 | 319 | (0.01 | ) | ||||||||
Net income per diluted common share | $ | 176,491 | 62,404 | $ | 2.83 | |||||||
Six Months Ended June 29, 2019 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
Net income per basic common share | $ | 253,396 | 70,331 | $ | 3.60 | |||||||
Effect of dilutive stock option, restricted stock, performance s ck unit and restricted stock unit securitiesto | — | 573 | (0.03 | ) | ||||||||
Net income per diluted common share | $ | 253,396 | 70,904 | $ | 3.57 | |||||||
Currency Translation | Unrealized Gain (Loss) on Retirement Plans | Unrealized Loss on Investments | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at December 31, 2020 | $ | (98,082 | ) | $ | (19,861 | ) | $ | 0 | $ | (117,943 | ) | |||||
Other comprehensive income (loss), net of tax | 5,816 | 963 | (15 | ) | 6,764 | |||||||||||
Balance at July 3, 2021 | $ | (92,266 | ) | $ | (18,898 | ) | $ | (15 | ) | $ | (111,179 | ) | ||||
Currency Translation | Unrealized Gain (Loss) on Retirement Plans | Accumulated Other Comprehensive Loss | ||||||||||
Balance at December 31, 2019 | $ | (104,066 | ) | $ | (15,405 | ) | $ | (119,471 | ) | |||
Other comprehensive income (loss), net of tax | (7,757 | ) | 338 | (7,419 | ) | |||||||
Balance at June 27, 2020 | $ | (111,822 | ) | $ | (15,067 | ) | $ | (126,890 | ) | |||
Three Months Ended | ||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | |||||||||||||||||||||||
U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | |||||||||||||||||||
Service cost | $ | — | $ | 151 | $ | 1,095 | $ | — | $ | 108 | $ | 1,075 | ||||||||||||
Interest cost | — | 177 | 338 | 10 | 230 | 430 | ||||||||||||||||||
Expected return on plan assets | — | (220 | ) | (454 | ) | — | (177 | ) | (538 | ) | ||||||||||||||
Net amortization: | ||||||||||||||||||||||||
Prior service credit | — | (5 | ) | (41 | ) | — | (5 | ) | (37 | ) | ||||||||||||||
Net actuarial loss | — | — | 382 | — | — | 132 | ||||||||||||||||||
Net periodic pension cost | $ | — | $ | 103 | $ | 1,320 | $ | 10 | $ | 156 | $ | 1,062 | ||||||||||||
Six Months Ended | ||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | |||||||||||||||||||||||
U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | |||||||||||||||||||
Service cost | $ | — | $ | 302 | $ | 2,194 | $ | — | $ | 250 | $ | 2,157 | ||||||||||||
Interest cost | — | 353 | 683 | 23 | 389 | 864 | ||||||||||||||||||
Expected return on plan assets | — | (439 | ) | (910 | ) | — | (354 | ) | (1,081 | ) | ||||||||||||||
Net amortization: | ||||||||||||||||||||||||
Prior service credit | — | (10 | ) | (81 | ) | — | (10 | ) | (74 | ) | ||||||||||||||
Net actuarial loss | — | — | 767 | — | — | 267 | ||||||||||||||||||
Net periodic pension cost | $ | — | $ | 206 | $ | 2,653 | $ | 23 | $ | 275 | $ | 2,133 | ||||||||||||
Three Months Ended | ||||||||||||||||
July 3, 2021 | June 27, 2020 | |||||||||||||||
U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | |||||||||||||
Service cost | $ | 232 | $ | 1,147 | $ | 151 | $ | 1,095 | ||||||||
Interest cost | 139 | 312 | 177 | 338 | ||||||||||||
Expected return on plan assets | (255 | ) | (464 | ) | (220 | ) | (454 | ) | ||||||||
Net amortization: | ||||||||||||||||
Prior service credit | (4 | ) | (39 | ) | (5 | ) | (41 | ) | ||||||||
Net actuarial loss | 0 | 261 | — | 382 | ||||||||||||
Net periodic pension cost | $ | 112 | $ | 1,217 | $ | 103 | $ | 1,320 | ||||||||
Six Months Ended | ||||||||||||||||
July 3, 2021 | June 27, 2020 | |||||||||||||||
U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | |||||||||||||
Service cost | $ | 465 | $ | 2,307 | $ | 302 | $ | 2,194 | ||||||||
Interest cost | 278 | 627 | 353 | 683 | ||||||||||||
Expected return on plan assets | (510 | ) | (930 | ) | (439 | ) | (910 | ) | ||||||||
Net amortization: | ||||||||||||||||
Prior service credit | (9 | ) | (80 | ) | (10 | ) | (81 | ) | ||||||||
Net actuarial loss | 0 | 523 | — | 767 | ||||||||||||
Net periodic pension cost | $ | 224 | $ | 2,447 | $ | 206 | $ | 2,653 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Product net sales: | ||||||||||||||||
Waters instrument systems | $ | 181,399 | $ | 238,777 | $ | 324,228 | $ | 423,389 | ||||||||
Chemistry consumables | 95,105 | 100,292 | 192,350 | 199,545 | ||||||||||||
TA instrument systems | 38,416 | 48,196 | 72,525 | 84,834 | ||||||||||||
Total product sales | 314,920 | 387,265 | 589,103 | 707,768 | ||||||||||||
Service net sales: | ||||||||||||||||
Waters service | 189,205 | 192,048 | 363,342 | 368,097 | ||||||||||||
TA service | 15,859 | 19,849 | 32,478 | 37,159 | ||||||||||||
Total service sales | 205,064 | 211,897 | 395,820 | 405,256 | ||||||||||||
Total net sales | $ | 519,984 | $ | 599,162 | $ | 984,923 | $ | 1,113,024 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||
Product net sales: | ||||||||||||||||
Waters instrument systems | $ | 261,363 | $ | 181,399 | $ | 477,435 | $ | 324,228 | ||||||||
Chemistry consumables | 126,459 | 95,105 | 245,433 | 192,350 | ||||||||||||
TA instrument systems | 53,133 | 38,416 | 100,109 | 72,525 | ||||||||||||
Total product sales | 440,955 | 314,920 | 822,977 | 589,103 | ||||||||||||
Service net sales: | ||||||||||||||||
Waters service | 219,502 | 189,205 | 426,334 | 363,342 | ||||||||||||
TA service | 21,190 | 15,859 | 40,881 | 32,478 | ||||||||||||
Total service sales | 240,692 | 205,064 | 467,215 | 395,820 | ||||||||||||
Total net sales | $ | 681,647 | $ | 519,984 | $ | 1,290,192 | $ | 984,923 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Net Sales: | ||||||||||||||||
Asia: | ||||||||||||||||
China | $ | 89,816 | $ | 112,796 | $ | 137,047 | $ | 202,887 | ||||||||
Japan | 41,230 | 45,958 | 86,319 | 89,462 | �� | |||||||||||
Asia Other | 77,163 | 80,081 | 143,923 | 146,998 | ||||||||||||
Total Asia | 208,209 | 238,835 | 367,289 | 439,347 | ||||||||||||
Americas: | ||||||||||||||||
United States | 148,928 | 173,940 | 292,826 | 323,097 | ||||||||||||
Americas Other | 25,854 | 32,835 | 54,132 | 65,546 | ||||||||||||
Total Americas | 174,782 | 206,775 | 346,958 | 388,643 | ||||||||||||
Europe | 136,993 | 153,552 | 270,676 | 285,034 | ||||||||||||
Total net sales | $ | 519,984 | $ | 599,162 | $ | 984,923 | $ | 1,113,024 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||
Net Sales: | ||||||||||||||||
Asia: | ||||||||||||||||
China | $ | 127,225 | $ | 89,816 | $ | 230,144 | $ | 137,047 | ||||||||
Japan | 45,113 | 41,230 | 95,409 | 86,319 | ||||||||||||
Asia Other | 97,609 | 77,163 | 173,936 | 143,923 | ||||||||||||
Total Asia | 269,947 | 208,209 | 499,489 | 367,289 | ||||||||||||
Americas: | ||||||||||||||||
United States | 186,915 | 148,928 | 349,348 | 292,826 | ||||||||||||
Americas Other | 37,979 | 25,854 | 72,903 | 54,132 | ||||||||||||
Total Americas | 224,894 | 174,782 | 422,251 | 346,958 | ||||||||||||
Europe | 186,806 | 136,993 | 368,452 | 270,676 | ||||||||||||
Total net sales | $ | 681,647 | $ | 519,984 | $ | 1,290,192 | $ | 984,923 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Pharmaceutical | $ | 311,018 | $ | 350,145 | $ | 583,581 | $ | 644,657 | ||||||||
Industrial | 152,110 | 176,109 | 295,464 | 331,327 | ||||||||||||
Academic and governmental | 56,856 | 72,908 | 105,878 | 137,040 | ||||||||||||
Total net sales | $ | 519,984 | $ | 599,162 | $ | 984,923 | $ | 1,113,024 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||
Pharmaceutical | $ | 416,705 | $ | 311,018 | $ | 776,853 | $ | 583,581 | ||||||||
Industrial | 202,579 | 152,110 | 385,852 | 295,464 | ||||||||||||
Academic and government | 62,363 | 56,856 | 127,487 | 105,878 | ||||||||||||
Total net sales | $ | 681,647 | $ | 519,984 | $ | 1,290,192 | $ | 984,923 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Net sales recognized at a point in time: | ||||||||||||||||
Instrument systems | $ | 219,815 | $ | 286,973 | $ | 396,753 | $ | 508,223 | ||||||||
Chemistry consumables | 95,105 | 100,292 | 192,350 | 199,545 | ||||||||||||
Service sales recognized at a point in time (time & materials) | 78,867 | 84,807 | 146,609 | 157,566 | ||||||||||||
Total net sales recognized at a point in time | 393,787 | 472,072 | 735,712 | 865,334 | ||||||||||||
Net sales recognized over time: | ||||||||||||||||
Service and software maintenance sales recognized over time (contracts) | 126,197 | 127,090 | 249,211 | 247,690 | ||||||||||||
Total net sales | $ | 519,984 | $ | 599,162 | $ | 984,923 | $ | 1,113,024 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||
Net sales recognized at a point in time: | ||||||||||||||||
Instrument systems | $ | 314,496 | $ | 219,815 | $ | 577,544 | $ | 396,753 | ||||||||
Chemistry consumables | 126,459 | 95,105 | 245,433 | 192,350 | ||||||||||||
Service sales recognized at a point in time (time & materials) | 88,832 | 78,867 | 168,119 | 146,609 | ||||||||||||
Total net sales recognized at a point in time | 529,787 | 393,787 | 991,096 | 735,712 | ||||||||||||
Net sales recognized over time: | ||||||||||||||||
Service and software maintenance sales recognized over time (contracts) | 151,860 | 126,197 | 299,096 | 249,211 | ||||||||||||
Total net sales | $ | 681,647 | $ | 519,984 | $ | 1,290,192 | $ | 984,923 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | % change | June 27, 2020 | June 29, 2019 | % change | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product sales | $ | 314,920 | $ | 387,265 | (19 | %) | $ | 589,103 | $ | 707,768 | (17 | %) | ||||||||||||
Service sales | 205,064 | 211,897 | (3 | %) | 395,820 | 405,256 | (2 | %) | ||||||||||||||||
Total net sales | 519,984 | 599,162 | (13 | %) | 984,923 | 1,113,024 | (12 | %) | ||||||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||
Cost of sales | 213,134 | 249,546 | (15 | %) | 423,778 | 470,577 | (10 | %) | ||||||||||||||||
Selling and administrative expenses | 117,449 | 133,208 | (12 | %) | 265,184 | 267,547 | (1 | %) | ||||||||||||||||
Research and development expenses | 31,155 | 36,490 | (15 | %) | 66,144 | 71,550 | (8 | %) | ||||||||||||||||
Purchased intangibles amortization | 2,618 | 2,264 | 16 | % | 5,243 | 4,545 | 15 | % | ||||||||||||||||
Litigation provision | 514 | — | — | 1,180 | — | — | ||||||||||||||||||
Operating income | 155,114 | 177,654 | (13 | %) | 223,394 | 298,805 | (25 | %) | ||||||||||||||||
Operating income as a % of sales | 29.8 | % | 29.7 | % | 22.7 | % | 26.8 | % | ||||||||||||||||
Other expense | (736 | ) | (342 | ) | 115 | % | (1,110 | ) | (867 | ) | 28 | % | ||||||||||||
Interest expense, net | (9,015 | ) | (5,577 | ) | 62 | % | (19,058 | ) | (8,825 | ) | 116 | % | ||||||||||||
Income before income taxes | 145,363 | 171,735 | (15 | %) | 203,226 | 289,113 | (30 | %) | ||||||||||||||||
Provision for income taxes | 22,434 | 27,325 | (18 | %) | 26,735 | 35,717 | (25 | %) | ||||||||||||||||
Net income | $ | 122,929 | $ | 144,410 | (15 | %) | $ | 176,491 | $ | 253,396 | (30 | %) | ||||||||||||
Net income per diluted common share | $ | 1.98 | $ | 2.08 | (5 | %) | $ | 2.83 | $ | 3.57 | (21 | %) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | % change | July 3, 2021 | June 27, 2020 | % change | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Product sales | $ | 440,955 | $ | 314,920 | 40 | % | $ | 822,977 | $ | 589,103 | 40 | % | ||||||||||||
Service sales | 240,692 | 205,064 | 17 | % | 467,215 | 395,820 | 18 | % | ||||||||||||||||
Total net sales | 681,647 | 519,984 | 31 | % | 1,290,192 | 984,923 | 31 | % | ||||||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||
Cost of sales | 280,254 | 213,134 | 31 | % | 534,401 | 423,778 | 26 | % | ||||||||||||||||
Selling and administrative expenses | 158,213 | 117,449 | 35 | % | 301,409 | 265,184 | 14 | % | ||||||||||||||||
Research and development expenses | 44,949 | 31,155 | 44 | % | 83,041 | 66,144 | 26 | % | ||||||||||||||||
Purchased intangibles amortization | 1,809 | 2,618 | (31 | %) | 3,649 | 5,243 | (30 | %) | ||||||||||||||||
Litigation provision | — | 514 | (100 | %) | — | — | — | |||||||||||||||||
Acquired in-process research and development | — | — | — | — | 1,180 | (100 | %) | |||||||||||||||||
Operating income | 196,422 | 155,114 | 27 | % | 367,692 | 223,394 | 65 | % | ||||||||||||||||
Operating income as a % of sales | 28.8 | % | 29.8 | % | 28.5 | % | 22.7 | % | ||||||||||||||||
Other income (expense) | 9,321 | (736 | ) | * | * | 18,680 | (1,110 | ) | * | * | ||||||||||||||
Interest expense, net | (8,329 | ) | (9,015 | ) | (8 | %) | (15,174 | ) | (19,058 | ) | (20 | %) | ||||||||||||
Income before income taxes | 197,414 | 145,363 | 36 | % | 371,198 | 203,226 | 83 | % | ||||||||||||||||
Provision for income taxes | 30,122 | 22,434 | 34 | % | 55,779 | 26,735 | 109 | % | ||||||||||||||||
Net income | $ | 167,292 | $ | 122,929 | 36 | % | $ | 315,419 | $ | 176,491 | 79 | % | ||||||||||||
Net income per diluted common share | $ | 2.69 | $ | 1.98 | 36 | % | $ | 5.05 | $ | 2.83 | 78 | % |
** | Percentage not meaningful |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | % change | June 27, 2020 | June 29, 2019 | % change | |||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Asia: | ||||||||||||||||||||||||
China | $ | 89,816 | $ | 112,796 | (20 | %) | $ | 137,047 | $ | 202,887 | (32 | %) | ||||||||||||
Japan | 41,230 | 45,958 | (10 | %) | 86,319 | 89,462 | (4 | %) | ||||||||||||||||
Asia Other | 77,163 | 80,081 | (4 | %) | 143,923 | 146,998 | (2 | %) | ||||||||||||||||
Total Asia | 208,209 | 238,835 | (13 | %) | 367,289 | 439,347 | (16 | %) | ||||||||||||||||
Americas: | ||||||||||||||||||||||||
United States | 148,928 | 173,940 | (14 | %) | 292,826 | 323,097 | (9 | %) | ||||||||||||||||
Americas Other | 25,854 | 32,835 | (21 | %) | 54,132 | 65,546 | (17 | %) | ||||||||||||||||
Total Americas | 174,782 | 206,775 | (15 | %) | 346,958 | 388,643 | (11 | %) | ||||||||||||||||
Europe | 136,993 | 153,552 | (11 | %) | 270,676 | 285,034 | (5 | %) | ||||||||||||||||
Total net sales | $ | 519,984 | $ | 599,162 | (13 | %) | $ | 984,923 | $ | 1,113,024 | (12 | %) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | % change | July 3, 2021 | June 27, 2020 | % change | |||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Asia: | ||||||||||||||||||||||||
China | $ | 127,225 | $ | 89,816 | 42 | % | $ | 230,144 | $ | 137,047 | 68 | % | ||||||||||||
Japan | 45,113 | 41,230 | 9 | % | 95,409 | 86,319 | 11 | % | ||||||||||||||||
Asia Other | 97,609 | 77,163 | 26 | % | 173,936 | 143,923 | 21 | % | ||||||||||||||||
Total Asia | 269,947 | 208,209 | 30 | % | 499,489 | 367,289 | 36 | % | ||||||||||||||||
Americas: | ||||||||||||||||||||||||
United States | 186,915 | 148,928 | 26 | % | 349,348 | 292,826 | 19 | % | ||||||||||||||||
Americas Other | 37,979 | 25,854 | 47 | % | 72,903 | 54,132 | 35 | % | ||||||||||||||||
Total Americas | 224,894 | 174,782 | 29 | % | 422,251 | 346,958 | 22 | % | ||||||||||||||||
Europe | 186,806 | 136,993 | 36 | % | 368,452 | 270,676 | 36 | % | ||||||||||||||||
Total net sales | $ | 681,647 | $ | 519,984 | 31 | % | $ | 1,290,192 | $ | 984,923 | 31 | % | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | % change | June 27, 2020 | June 29, 2019 | % change | |||||||||||||||||||
Pharmaceutical | $ | 311,018 | $ | 350,145 | (11 | %) | $ | 583,581 | $ | 644,657 | (9 | %) | ||||||||||||
Industrial | 152,110 | 176,109 | (14 | %) | 295,464 | 331,327 | (11 | %) | ||||||||||||||||
Academic and governmental | 56,856 | 72,908 | (22 | %) | 105,878 | 137,040 | (23 | %) | ||||||||||||||||
Total net sales | $ | 519,984 | $ | 599,162 | (13 | %) | $ | 984,923 | $ | 1,113,024 | (12 | %) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | % change | July 3, 2021 | June 27, 2020 | % change | |||||||||||||||||||
Pharmaceutical | $ | 416,705 | $ | 311,018 | 34 | % | $ | 776,853 | $ | 583,581 | 33 | % | ||||||||||||
Industrial | 202,579 | 152,110 | 33 | % | 385,852 | 295,464 | 31 | % | ||||||||||||||||
Academic and government | 62,363 | 56,856 | 10 | % | 127,487 | 105,878 | 20 | % | ||||||||||||||||
Total net sales | $ | 681,647 | $ | 519,984 | 31 | % | $ | 1,290,192 | $ | 984,923 | 31 | % | ||||||||||||
Three Months Ended | ||||||||||||||||||||
June 27, 2020 | % of Total | June 29, 2019 | % of Total | % change | ||||||||||||||||
Waters instrument systems | $ | 181,399 | 39 | % | $ | 238,777 | 45 | % | (24 | %) | ||||||||||
Chemistry consumables | 95,105 | 20 | % | 100,292 | 19 | % | (5 | %) | ||||||||||||
Total Waters product sales | 276,504 | 59 | % | 339,069 | 64 | % | (18 | %) | ||||||||||||
Waters service | 189,205 | 41 | % | 192,048 | 36 | % | (1 | %) | ||||||||||||
Total Waters net sales | $ | 465,709 | 100 | % | $ | 531,117 | 100 | % | (12 | %) | ||||||||||
Three Months Ended | ||||||||||||||||||||
July 3, 2021 | % of Total | June 27, 2020 | % of Total | % change | ||||||||||||||||
Waters instrument systems | $ | 261,363 | 43 | % | $ | 181,399 | 39 | % | 44 | % | ||||||||||
Chemistry consumables | 126,459 | 21 | % | 95,105 | 20 | % | 33 | % | ||||||||||||
Total Waters product sales | 387,822 | 64 | % | 276,504 | 59 | % | 40 | % | ||||||||||||
Waters service | 219,502 | 36 | % | 189,205 | 41 | % | 16 | % | ||||||||||||
Total Waters net sales | $ | 607,324 | 100 | % | $ | 465,709 | 100 | % | 30 | % | ||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | % of Total | June 29, 2019 | % of Total | % change | Six Months Ended | |||||||||||||||||||||||||||||||||||
July 3, 2021 | % of Total | June 27, 2020 | % of Total | % change | ||||||||||||||||||||||||||||||||||||
Waters instrument systems | $ | 324,228 | 37 | % | $ | 423,389 | 43 | % | (23 | %) | $ | 477,435 | 42 | % | $ | 324,228 | 37 | % | 47 | % | ||||||||||||||||||||
Chemistry consumables | 192,350 | 22 | % | 199,545 | 20 | % | (4 | %) | 245,433 | 21 | % | 192,350 | 22 | % | 28 | % | ||||||||||||||||||||||||
Total Waters product sales | 516,578 | 59 | % | 622,934 | 63 | % | (17 | %) | 722,868 | 63 | % | 516,578 | �� | 59 | % | 40 | % | |||||||||||||||||||||||
Waters service | 363,342 | 41 | % | 368,097 | 37 | % | (1 | %) | 426,334 | 37 | % | 363,342 | 41 | % | 17 | % | ||||||||||||||||||||||||
Total Waters net sales | $ | 879,920 | 100 | % | $ | 991,031 | 100 | % | (11 | %) | $ | 1,149,202 | 100 | % | $ | 879,920 | 100 | % | 31 | % | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
June 27, 2020 | % of Total | June 29, 2019 | % of Total | % change | ||||||||||||||||
TA instrument systems | $ | 38,416 | 71 | % | $ | 48,196 | 71 | % | (20 | %) | ||||||||||
TA service | 15,859 | 29 | % | 19,849 | 29 | % | (20 | %) | ||||||||||||
Total TA net sales | $ | 54,275 | 100 | % | $ | 68,045 | 100 | % | (20 | %) | ||||||||||
Three Months Ended | ||||||||||||||||||||
July 3, 2021 | % of Total | June 27, 2020 | % of Total | % change | ||||||||||||||||
TA instrument systems | $ | 53,133 | 71 | % | $ | 38,416 | 71 | % | 38 | % | ||||||||||
TA service | 21,190 | 29 | % | 15,859 | 29 | % | 34 | % | ||||||||||||
Total TA net sales | $ | 74,323 | 100 | % | $ | 54,275 | 100 | % | 37 | % | ||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
June 27, 2020 | % of Total | June 29, 2019 | % of Total | % change | July 3, 2021 | % of Total | June 27, 2020 | % of Total | % change | |||||||||||||||||||||||||||||||
TA instrument systems | $ | 72,525 | 69 | % | $ | 84,834 | 70 | % | (15 | %) | $ | 100,109 | 71 | % | $ | 72,525 | 69 | % | 38 | % | ||||||||||||||||||||
TA service | 32,478 | 31 | % | 37,159 | 30 | % | (13 | %) | 40,881 | 29 | % | 32,478 | 31 | % | 26 | % | ||||||||||||||||||||||||
Total TA net sales | $ | 105,003 | 100 | % | $ | 121,993 | 100 | % | (14 | %) | $ | 140,990 | 100 | % | $ | 105,003 | 100 | % | 34 | % | ||||||||||||||||||||
Six Months Ended | ||||||||
June 27, 2020 | June 29, 2019 | |||||||
Net income | $ | 176,491 | $ | 253,396 | ||||
Depreciation and amortization | 60,203 | 53,615 | ||||||
Stock-based compensation | 18,122 | 19,255 | ||||||
Deferred income taxes | (777 | ) | 1,632 | |||||
Change in accounts receivable | 86,978 | 52,508 | ||||||
Change in inventories | (27,089 | ) | (62,200 | ) | ||||
Change in accounts payable and other current liabilities | 34,714 | (10,439 | ) | |||||
Change in deferred revenue and customer advances | 37,558 | 54,672 | ||||||
Effect of the 2017 Tax Cuts & Jobs Act | — | (3,229 | ) | |||||
Other changes | (35,754 | ) | (56,407 | ) | ||||
Net cash provided by operating activities | 350,446 | 302,803 | ||||||
Net cash (used in) provided by investing activities | (192,335 | ) | 785,063 | |||||
Net cash used in financing activities | (159,366 | ) | (1,294,734 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 4,576 | (1,414 | ) | |||||
Increase (decrease) in cash and cash equivalents | $ | 3,321 | $ | (208,282 | ) | |||
Six Months Ended | ||||||||
July 3, 2021 | June 27, 2020 | |||||||
Net income | $ | 315,419 | $ | 176,491 | ||||
Depreciation and amortization | 64,743 | 60,203 | ||||||
Stock-based compensation | 15,596 | 18,122 | ||||||
Deferred income taxes | 6,107 | (777 | ) | |||||
Change in accounts receivable | 18,985 | 86,978 | ||||||
Change in inventories | (50,873 | ) | (27,089 | ) | ||||
Change in accounts payable and other current liabilities | (35,328 | ) | 34,714 | |||||
Change in deferred revenue and customer advances | 91,631 | 37,558 | ||||||
Other changes | (64,836 | ) | (35,754 | ) | ||||
Net cash provided by operating activities | 361,444 | 350,446 | ||||||
Net cash used in investing activities | (281,106 | ) | (192,335 | ) | ||||
Net cash used in financing activities | (48,191 | ) | (159,366 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (8,786 | ) | 4,576 | |||||
Increase in cash and cash equivalents | $ | 23,361 | $ | 3,321 | ||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs (2) | ||||||||||||||
March 29, 2020 to April 25, 2020 | — | $ | — | — | $ | 1,524,905 | ||||||||||||
April 26, 2020 to May 23, 2020 | — | $ | — | — | $ | 1,524,905 | ||||||||||||
May 24, 2020 to June 27, 2020 | — | $ | — | — | $ | 1,524,905 | ||||||||||||
Total | — | $ | — | — | $ | 1,524,905 | ||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs (2) | ||||||||||||
April 4, 2021 to May 1, 2021 | 188 | $ | 301.59 | 188 | $ | 1,295,113 | ||||||||||
May 2, 2021 to May 29, 2021 | 153 | $ | 314.28 | 153 | $ | 1,247,189 | ||||||||||
May 30, 2021 to July 3, 2021 | 183 | $ | 334.37 | 183 | $ | 1,185,905 | ||||||||||
Total | 524 | $ | 316.76 | 524 | $ | 1,185,905 | ||||||||||
(1) | The Company repurchased |
(2) | In January 2019, the Company’s Board of Directors authorized the Company to repurchase up to $4 billion of its outstanding common stock in open market or private transactions over a two-year period. This pre-existing authorization. |
(*) | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any filing, except to the extent the Company specifically incorporates it by reference. |
W ATERS CORPORATION |
/s/ | ||
Senior Vice President and Chief Financial Officer | ||
(Principal Financial Officer) | ||
(Principal Accounting Officer) |