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 | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
9 | ||||||||
10 | ||||||||
OTHER INFORMATION | ||||||||
October 2, 2021 | December 31, 2020 | |||||||
(In thousands, except per share data) | ||||||||
ASSETS | ||||||||
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 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
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) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, 0ne issued at October 2, 2021 and December 31, 2020 | 0 | 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 | ||||
July 2, 2022 | December 31, 2021 | |||||||
(In thousands, except per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 418,897 | $ | 501,234 | ||||
Investments | 897 | 68,051 | ||||||
Accounts receivable, net | 639,451 | 612,648 | ||||||
Inventories | 409,922 | 356,095 | ||||||
Other current assets | 95,160 | 90,914 | ||||||
Total current assets | 1,564,327 | 1,628,942 | ||||||
Property, plant and equipment, net | 545,813 | 547,913 | ||||||
Intangible assets, net | 225,101 | 242,401 | ||||||
Goodwill | 428,005 | 437,865 | ||||||
Operating lease assets | 86,102 | 84,734 | ||||||
Other assets | 191,222 | 153,077 | ||||||
Total assets | $ | 3,040,570 | $ | 3,094,932 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Notes payable and debt | $ | 50,000 | $ | — | ||||
Accounts payable | 97,980 | 96,799 | ||||||
Accrued employee compensation | 44,956 | 101,192 | ||||||
Deferred revenue and customer advances | 282,342 | 227,561 | ||||||
Current operating lease liabilities | 25,199 | 27,906 | ||||||
Accrued income taxes | 104,982 | 61,278 | ||||||
Accrued warranty | 10,156 | 10,718 | ||||||
Other current liabilities | 130,948 | 155,054 | ||||||
Total current liabilities | 746,563 | 680,508 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 1,434,374 | 1,513,870 | ||||||
Long-term portion of retirement benefits | 51,675 | 64,027 | ||||||
Long-term income tax liabilities | 247,950 | 319,547 | ||||||
Long-term operating lease liabilities | 60,579 | 59,623 | ||||||
Other long-term liabilities | 107,305 | 89,803 | ||||||
Total long-term liabilities | 1,901,883 | 2,046,870 | ||||||
Total liabilities | 2,648,446 | 2,727,378 | ||||||
Commitments and contingencies (Notes 6, 7, 8 and 1 2 ) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, NaN issued at July 2, 2022 and December 31, 2021 | — | — | ||||||
Common stock, par value $0.01 per share, 400,000 shares authorized, 162,348 and 162,084 shares issued, 59,988 and 60,728 shares outstanding at July 2, 2022 and December 31, 2021, respectively | 1,623 | 1,621 | ||||||
Additional paid-in capital | 2,166,221 | 2,114,880 | ||||||
Retained earnings | 8,125,527 | 7,800,832 | ||||||
Treasury stock, at cost, 102,360 and 101,356 shares at July 2, 2022 and December 31, 2021, respectively | (9,759,858 | ) | (9,437,914 | ) | ||||
Accumulated other comprehensive loss | (141,389 | ) | (111,865 | ) | ||||
Total stockholders’ equity | 392,124 | 367,554 | ||||||
Total liabilities and stockholders’ equity | $ | 3,040,570 | $ | 3,094,932 | ||||
Three Months Ended | ||||||||
October 2, 2021 | September 26, 2020 | |||||||
(In thousands, except per share data) | ||||||||
Revenues: | ||||||||
Product sales | $ | 419,133 | $ | 376,239 | ||||
Service sales | 240,100 | 217,545 | ||||||
Total net sales | 659,233 | 593,784 | ||||||
Costs and operating expenses: | ||||||||
Cost of product sales | 171,364 | 166,330 | ||||||
Cost of service sales | 99,764 | 96,012 | ||||||
Selling and administrative expenses | 152,545 | 135,430 | ||||||
Research and development expenses | 41,986 | 34,971 | ||||||
Purchased intangibles amortization | 1,759 | 2,657 | ||||||
Total costs and operating expenses | 467,418 | 435,400 | ||||||
Operating income | 191,815 | 158,384 | ||||||
Other expense | (607 | ) | (1,039 | ) | ||||
Interest expense | (11,081 | ) | (10,915 | ) | ||||
Interest income | 2,548 | 4,007 | ||||||
Income before income taxes | 182,675 | 150,437 | ||||||
Provision for income taxes | 21,490 | 23,668 | ||||||
Net income | $ | 161,185 | $ | 126,769 | ||||
Net income per basic common share | $ | 2.63 | $ | 2.04 | ||||
Weighted-average number of basic common shares | 61,359 | 62,002 | ||||||
Net income per diluted common share | $ | 2.60 | $ | 2.03 | ||||
Weighted-average number of diluted common shares and equivalents | 61,888 | 62,303 |
Three Months Ended | ||||||||
July 2, 2022 | July 3, 2021 | |||||||
(In thousands, except per share data) | ||||||||
Revenues: | ||||||||
Product sales | $ | 469,630 | $ | 440,955 | ||||
Service sales | 244,689 | 240,692 | ||||||
Total net sales | 714,319 | 681,647 | ||||||
Costs and operating expenses: | ||||||||
Cost of product sales | 202,356 | 176,745 | ||||||
Cost of service sales | 104,850 | 103,509 | ||||||
Selling and administrative expenses | 161,877 | 158,213 | ||||||
Research and development expenses | 44,006 | 44,949 | ||||||
Purchased intangibles amortization | 1,598 | 1,809 | ||||||
Total costs and operating expenses | 514,687 | 485,225 | ||||||
Operating income | 199,632 | 196,422 | ||||||
Other income, net | 1,535 | 9,321 | ||||||
Interest expense | (11,419 | ) | (12,027 | ) | ||||
Interest income | 2,526 | 3,698 | ||||||
Income before income taxes | 192,274 | 197,414 | ||||||
Provision for income taxes | 27,410 | 30,122 | ||||||
Net income | $ | 164,864 | $ | 167,292 | ||||
Net income per basic common share | $ | 2.74 | $ | 2.71 | ||||
Weighted-average number of basic common shares | 60,206 | 61,685 | ||||||
Net income per diluted common share | $ | 2.72 | $ | 2.69 | ||||
Weighted-average number of diluted common shares and equivalents | 60,510 | 62,157 |
Six Months Ended | ||||||||||||||||
July 2, 2022 | July 3, 2021 | |||||||||||||||
Nine Months Ended | ||||||||||||||||
October 2, 2021 | September 26, 2020 | (In thousands, except per share data) | ||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Revenues: | ||||||||||||||||
Product sales | $ | 1,242,110 | $ | 965,342 | $ | 920,470 | $ | 822,977 | ||||||||
Service sales | 707,315 | 613,365 | 484,421 | 467,215 | ||||||||||||
Total net sales | 1,949,425 | 1,578,707 | 1,404,891 | 1,290,192 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of product sales | 506,985 | 420,971 | 393,966 | 335,621 | ||||||||||||
Cost of service sales | 298,544 | 265,149 | 198,925 | 198,780 | ||||||||||||
Selling and administrative expenses | 453,954 | 400,614 | 319,352 | 301,409 | ||||||||||||
Research and development expenses | 125,027 | 101,115 | 84,478 | 83,041 | ||||||||||||
Purchased intangibles amortization | 5,408 | 7,900 | 3,271 | 3,649 | ||||||||||||
Litigation provision | 0 | 1,180 | ||||||||||||||
Acquired in-process research and development | 9,797 | — | ||||||||||||||
Total costs and operating expenses | 1,389,918 | 1,196,929 | 1,009,789 | 922,500 | ||||||||||||
Operating income | 559,507 | 381,778 | 395,102 | 367,692 | ||||||||||||
Other income (expense), net | 18,073 | (2,149 | ) | |||||||||||||
Other income, net | 1,705 | 18,680 | ||||||||||||||
Interest expense | (34,054 | ) | (38,012 | ) | (22,478 | ) | (22,973 | ) | ||||||||
Interest income | 10,347 | 12,046 | 4,640 | 7,799 | ||||||||||||
Income before income taxes | 553,873 | 353,663 | 378,969 | 371,198 | ||||||||||||
Provision for income taxes | 77,269 | 50,403 | 54,274 | 55,779 | ||||||||||||
Net income | $ | 476,604 | $ | 303,260 | $ | 324,695 | $ | 315,419 | ||||||||
Net income per basic common share | $ | 7.72 | $ | 4.89 | $ | 5.38 | $ | 5.09 | ||||||||
Weighted-average number of basic common shares | 61,771 | 62,057 | 60,399 | 61,979 | ||||||||||||
Net income per diluted common share | $ | 7.66 | $ | 4.86 | $ | 5.35 | $ | 5.05 | ||||||||
Weighted-average number of diluted common shares and equivalents | 62,244 | 62,371 | 60,744 | 62,435 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
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 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Net income | $ | 164,864 | $ | 167,292 | $ | 324,695 | $ | 315,419 | ||||||||
Other comprehensive (loss) income: | ||||||||||||||||
Foreign currency translation | (24,307 | ) | (9 | ) | (30,476 | ) | 5,816 | |||||||||
Unrealized gains (losses) on investments before income taxes | 11 | (5 | ) | 26 | (15 | ) | ||||||||||
Income tax expense | (2 | ) | — | (6 | ) | — | ||||||||||
Unrealized gains (losses) on investments, net of tax | 9 | (5 | ) | 20 | (15 | ) | ||||||||||
Retirement liability adjustment before reclassifications | 720 | (260 | ) | 988 | 794 | |||||||||||
Amounts reclassified to other income, net | 120 | 218 | 247 | 434 | ||||||||||||
Retirement liability adjustment before income taxes | 840 | (42 | ) | 1,235 | 1,228 | |||||||||||
Income tax (expense) benefit | (206 | ) | 83 | (303 | ) | (265 | ) | |||||||||
Retirement liability adjustment, net of tax | 634 | 41 | 932 | 963 | ||||||||||||
Other comprehensive (loss) income | (23,664 | ) | 27 | (29,524 | ) | 6,764 | ||||||||||
Comprehensive income | $ | 141,200 | $ | 167,319 | $ | 295,171 | $ | 322,183 | ||||||||
Nine Months Ended | ||||||||
October 2, 2021 | September 26, 2020 | |||||||
(In thousands) | ||||||||
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 | ) | ||||
I ncrease 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 | ||||
Six Months Ended | ||||||||
July 2, 2022 | July 3, 2021 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 324,695 | $ | 315,419 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Stock-based compensation | 20,722 | 15,596 | ||||||
Deferred income taxes | (12,523 | ) | 6,107 | |||||
Depreciation | 36,956 | 34,891 | ||||||
Amortization of intangibles | 29,935 | 29,852 | ||||||
Acquired in-process research and development and othernon-cash items | 7,903 | — | ||||||
Change in operating assets and liabilities: | ||||||||
(Increase) decrease in accounts receivable | (57,377 | ) | 18,985 | |||||
Increase in inventories | (65,070 | ) | (50,873 | ) | ||||
Increase in other current assets | (9,199 | ) | (10,600 | ) | ||||
Increase in other assets | 4,658 | (9,263 | ) | |||||
Increase (decrease) in accounts payable and other current liabilities | (32,197 | ) | (35,328 | ) | ||||
Increase in deferred revenue and customer advances | 70,027 | 91,631 | ||||||
Decrease in other liabilities | (63,667 | ) | (44,973 | ) | ||||
Net cash provided by operating activities | 254,863 | 361,444 | ||||||
Cash flows from investing activities: | ||||||||
Additions to property, plant, equipment and software capitalization | (74,746 | ) | (76,889 | ) | ||||
Proceeds from sale of equity investment, net | 5,646 | — | ||||||
Payments for intellectual property licenses | (4,897 | ) | (7,000 | ) | ||||
Purchases of investments | (10,959 | ) | (215,140 | ) | ||||
Maturities and sales of investments | 77,553 | 17,923 | ||||||
Net cash used investing activitie s | (7,403 | ) | (281,106 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from debt issuances | 105,000 | 500,000 | ||||||
Payments on debt | (135,000 | ) | (250,000 | ) | ||||
Payments of debt issuance costs | — | (3,637 | ) | |||||
Proceeds from stock plans | 30,914 | 45,036 | ||||||
Purchases of treasury shares | (321,944 | ) | (341,507 | ) | ||||
Proceeds from derivative contracts | 10,849 | 1,917 | ||||||
Net cash used in financing activities | (310,181 | ) | (48,191 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (19,616 | ) | (8,786 | ) | ||||
(Decrease) increase in cash and cash equivalents | (82,337 | ) | 23,361 | |||||
Cash and cash equivalents at beginning of period | 501,234 | 436,695 | ||||||
Cash and cash equivalents at end of period | $ | 418,897 | $ | 460,056 | ||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficit | ||||||||||||||||||||||
Balance June 27, 2020 | 161,273 | $ | 1,613 | $ | 1,959,498 | $ | 6,762,909 | $ | (8,788,872 | ) | $ | (126,890 | ) | $ | (191,742 | ) | ||||||||||||
Net income | — | — | — | 126,769 | — | — | 126,769 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 214 | 214 | |||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 10 | — | 1,641 | — | — | — | 1,641 | |||||||||||||||||||||
Stock options exercised | 97 | 1 | 12,040 | — | — | — | 12,041 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (56 | ) | — | (56 | ) | |||||||||||||||||||
Stock-based compensation | 1 | — | 9,552 | — | — | — | 9,552 | |||||||||||||||||||||
Balance September 26, 2020 | 161,381 | $ | 1,614 | $ | 1,982,731 | $ | 6,889,678 | $ | (8,788,928 | ) | $ | (126,676 | ) | $ | (41,581 | ) | ||||||||||||
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 Loss | Total Stockholders’ Equity | ||||||||||||||||||||||
Balance July 3, 2021 | 162,017 | $ | 1,620 | $ | 2,090,052 | $ | 7,423,408 | $ | (9,135,628 | ) | $ | (111,179 | ) | $ | 268,273 | |||||||||||||
Net income | — | — | — | 161,185 | — | — | 161,185 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (4,435 | ) | (4,435 | ) | |||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 8 | — | 2,567 | — | — | — | 2,567 | |||||||||||||||||||||
Stock options exercised | 45 | 1 | 7,396 | — | — | — | 7,397 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (146,051 | ) | — | (146,051 | ) | |||||||||||||||||||
Stock-based compensation | 5 | — | 6,286 | — | — | — | 6,286 | |||||||||||||||||||||
Balance October 2, 2021 | 162,075 | $ | 1,621 | $ | 2,106,301 | $ | 7,584,593 | $ | (9,281,679 | ) | $ | (115,614 | ) | $ | 295,222 | |||||||||||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||
Balance April 2, 2022 | 162,252 | $ | 1,623 | $ | 2,138,426 | $ | 7,960,663 | $ | (9,608,050 | ) | $ | (117,725 | ) | $ | 374,937 | |||||||||||||
Net income | — | — | — | 164,864 | — | — | 164,864 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (23,664 | ) | (23,664 | ) | |||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 11 | — | 3,559 | — | — | — | 3,559 | |||||||||||||||||||||
Stock options exercised | 81 | — | 14,523 | — | — | — | 14,523 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (151,808 | ) | — | (151,808 | ) | |||||||||||||||||||
Stock-based compensation | 4 | — | 9,713 | — | — | — | 9,713 | |||||||||||||||||||||
Balance July 2, 2022 | 162,348 | $ | 1,623 | $ | 2,166,221 | $ | 8,125,527 | $ | (9,759,858 | ) | $ | (141,389 | ) | $ | 392,124 | |||||||||||||
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 | ) | ||||||||||||
Net income | — | — | — | 303,260 | — | — | 303,260 | |||||||||||||||||||||
Adoption of new accounting pronouncement | — | — | — | (985 | ) | — | — | (985 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (7,205 | ) | (7,205 | ) | |||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 31 | — | 5,593 | — | — | — | 5,593 | |||||||||||||||||||||
Stock options exercised | 184 | 2 | 22,944 | — | — | — | 22,946 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (176,352 | ) | — | (176,352 | ) | |||||||||||||||||||
Stock-based compensation | 136 | 2 | 27,441 | — | — | — | 27,443 | |||||||||||||||||||||
Balance September 26, 2020 | 161,381 | $ | 1,614 | $ | 1,982,731 | $ | 6,889,678 | $ | (8,788,928 | ) | $ | (126,676 | ) | $ | (41,581 | ) | ||||||||||||
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 | |||||||||||||
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 | — | — | — | 476,604 | — | — | 476,604 | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 2,329 | 2,329 | |||||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 40 | 9,578 | — | — | — | 9,578 | ||||||||||||||||||||||
Stock options exercised | 275 | 3 | 46,109 | — | — | — | 46,112 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (492,695 | ) | — | (492,695 | ) | |||||||||||||||||||
Stock-based compensation | 94 | 1 | 21,149 | — | — | — | 21,150 | |||||||||||||||||||||
Balance October 2, 2021 | 162,075 | $ | 1,621 | $ | 2,106,301 | $ | 7,584,593 | $ | (9,281,679 | ) | $ | (115,614 | ) | $ | 295,222 | |||||||||||||
Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||
Balance December 31, 2021 | 162,084 | $ | 1,621 | $ | 2,114,880 | $ | 7,800,832 | $ | (9,437,914 | ) | $ | (111,865 | ) | $ | 367,554 | |||||||||||||
Net income | — | — | — | 324,695 | — | — | 324,695 | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (29,524 | ) | (29,524 | ) | |||||||||||||||||||
Issuance of common stock for employees: | ||||||||||||||||||||||||||||
Employee Stock Purchase Plan | 19 | — | 5,886 | — | — | — | 5,886 | |||||||||||||||||||||
Stock options exercised | 150 | 1 | 25,614 | — | — | — | 25,615 | |||||||||||||||||||||
Treasury stock | — | — | — | — | (321,944 | ) | — | (321,944 | ) | |||||||||||||||||||
Stock-based compensation | 95 | 1 | 19,841 | — | — | — | 19,842 | |||||||||||||||||||||
Balance July 2, 2022 | 162,348 | $ | 1,623 | $ | 2,166,221 | $ | 8,125,527 | $ | (9,759,858 | ) | $ | (141,389 | ) | $ | 392,124 | |||||||||||||
Balance at Beginning of Period | Impact of CECL Adoption | Additions | Deductions | Balance at End of Period | ||||||||||||||||
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 |
Balance at Beginning | Balance at End of | |||||||||||||||
of Period | Additions | Deductions | Period | |||||||||||||
Allowance for Credit Losses | ||||||||||||||||
July 2, 2022 | $ | 13,228 | $ | 3,690 | $ | (3,571 | ) | $ | 13,347 | |||||||
July 3, 2021 | $ | 14,381 | $ | 3,042 | $ | (2,625 | ) | $ | 14,798 |
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets | Other | Significant | ||||||||||||||
Total at | for Identical | Observable | Unobservable | |||||||||||||
July 2, | Assets | Inputs | Inputs | |||||||||||||
2022 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Time deposits | 897 | — | 897 | — | ||||||||||||
Waters 401(k) Restoration Plan assets | 26,560 | 26,560 | — | — | ||||||||||||
Foreign currency exchange contracts | 76 | — | 76 | — | ||||||||||||
Interest rate cross-currency swap agreements | 31,173 | — | 31,173 | — | ||||||||||||
Total | $ | 58,706 | $ | 26,560 | $ | 32,146 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,428 | $ | — | $ | — | $ | 1,428 | ||||||||
Foreign currency exchange contracts | 322 | — | 322 | — | ||||||||||||
Interest rate cross-currency swap agreements | 58 | — | 58 | — | ||||||||||||
Total | $ | 1,808 | $ | — | $ | 380 | $ | 1,428 | ||||||||
Total at October 2, 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 | $ | 12,043 | $ | 0 | $ | 12,043 | $ | 0 | ||||||||
Corporate debt securities | 83,045 | 0 | 83,045 | 0 | ||||||||||||
Time deposits | 35,803 | 0 | 35,803 | 0 | ||||||||||||
Waters 401(k) Restoration Plan assets | 38,587 | 38,587 | 0 | 0 | ||||||||||||
Foreign currency exchange contracts | 93 | 0 | 93 | 0 | ||||||||||||
Total | $ | 169,571 | $ | 38,587 | $ | 130,984 | $ | 0 | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,307 | $ | 0 | $ | 0 | $ | 1,307 | ||||||||
Foreign currency exchange contracts | 375 | 0 | 375 | 0 | ||||||||||||
Interest rate cross-currency swap agreements | 12,322 | 0 | 12,322 | 0 | ||||||||||||
Total | $ | 14,004 | $ | 0 | $ | 12,697 | $ | 1,307 | ||||||||
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 | ||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets | Other | Significant | ||||||||||||||
Total at | for Identical | Observable | Unobservable | |||||||||||||
December 31, | Assets | Inputs | Inputs | |||||||||||||
2021 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
U.S. Treasury securities | $ | 13,917 | $ | — | $ | 13,917 | — | |||||||||
Corporate debt securities | 39,121 | — | 39,121 | — | ||||||||||||
Time deposits | 19,030 | — | 19,030 | $ | — | |||||||||||
Waters 401(k) Restoration Plan assets | 38,729 | 38,729 | — | — | ||||||||||||
Foreign currency exchange contracts | 504 | — | 504 | — | ||||||||||||
Total | $ | 111,301 | $ | 38,729 | $ | 72,572 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 1,347 | $ | — | $ | — | $ | 1,347 | ||||||||
Foreign currency exchange contracts | 195 | — | 195 | — | ||||||||||||
Interest rate cross-currency swap agreements | 5,363 | — | 5,363 | — | ||||||||||||
Total | $ | 6,905 | $ | — | $ | 5,558 | $ | 1,347 | ||||||||
October 2, 2021 | December 31, 2020 | July 2, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||||||||||||||
Other current assets | $ | 19,000 | $ | 93 | $ | 66,690 | $ | 836 | $ | 17,000 | $ | 76 | $ | 55,309 | $ | 504 | ||||||||||||||||
Other current liabilities | $ | 46,772 | $ | 375 | $ | 20,000 | $ | 185 | $ | 42,640 | $ | 322 | $ | 9,000 | $ | 195 | ||||||||||||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||||||||||||||||||
Other assets | $ | 520,000 | $ | 31,173 | $ | — | $ | — | ||||||||||||||||||||||||
Other liabilities | $ | 340,000 | $ | 12,322 | $ | 560,000 | $ | 44,996 | 40,000 | 58 | 230,000 | 5,363 | ||||||||||||||||||||
Accumulated other comprehensive loss | $ | 20,219 | $ | 44,996 | ||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | $ | 26,761 | $ | (15,944 | ) |
Financial | Three Months Ended | Six Months Ended | ||||||||||||||||
Statement | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | ||||||||||||||
Classification | ||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||
Realized (losses) gains on closed contracts | Cost of sales | $ | (1,292 | ) | $ | (213 | ) | $ | (2,791 | ) | $ | 1,455 | ||||||
Unrealized losses on open contracts | Cost of sales | (66 | ) | (569 | ) | (555 | ) | (1,323 | ) | |||||||||
Cumulative net pre-tax (losses) gains | Cost of sales | $ | (1,358 | ) | $ | (782 | ) | $ | (3,346 | ) | $ | 132 | ||||||
Interest rate cross-currency swap agreements: | ||||||||||||||||||
Interest earned | Interest income | $ | 2,077 | $ | 3,373 | $ | 3,852 | $ | 7,200 | |||||||||
Unrealized gains (losses) on open contracts | Other comprehensive income | $ | 30,516 | $ | (4,229 | ) | $ | 42,704 | $ | 17,015 |
Financial Statement Classification | Three Months Ended | Nine Months Ended | ||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||||
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 (losses) gains | 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 income | $ | 7,762 | $ | 19,582 | $ | 24,777 | $ | 19,675 |
Balance at Beginning of Period | Accruals for Warranties | Settlements Made | Balance at End of Period | |||||||||||||
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 |
Balance at | Balance at | |||||||||||||||
Beginning | Accruals for | Settlements | End of | |||||||||||||
of Period | Warranties | Made | Period | |||||||||||||
Accrued warranty liability: | ||||||||||||||||
July 2, 2022 | $ | 10,718 | $ | 4,084 | $ | (4,646 | ) | $ | 10,156 | |||||||
July 3, 2021 | $ | 10,950 | $ | 4,719 | $ | (4,859 | ) | $ | 10,810 |
October 2, 2021 | September 26, 2020 | July 2, 2022 | July 3, 2021 | |||||||||||||
Balance at the beginning of the period | $ | 239,759 | $ | 213,695 | $ | 273,598 | $ | 239,759 | ||||||||
Recognition of revenue included in balance at beginning of the period | (197,279 | ) | (177,667 | ) | (173,606 | ) | (159,393 | ) | ||||||||
Revenue deferred during the period, net of revenue recognized | 264,184 | 213,895 | 240,928 | 251,065 | ||||||||||||
Balance at the end of the period | $ | 306,664 | $ | 249,923 | $ | 340,920 | $ | 331,431 | ||||||||
July 2, 2022 | ||||
Deferred revenue and customer advances expected to be recognized in: | ||||
One year or less | $ | 282,342 | ||
13-24 months | 36,568 | |||
25 months and beyond | 22,010 | |||
Total | $ | 340,920 | ||
October 2, 2021 | ||||
Deferred revenue and customer advances expected to be recognized in: | ||||
One year or less | $ | 262,758 | ||
13-24 months | 25,076 | |||
25 months and beyond | 18,830 | |||
Total | $ | 306,664 | ||
October 2, 2021 | ||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | 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 | $ | 0 | $ | 0 | $ | 401 | ||||||||
Investments | 130,487 | 11 | (8 | ) | 130,490 | |||||||||||
Total | $ | 130,888 | $ | 11 | $ | (8 | ) | $ | 130,891 | |||||||
December 31, 2020 | ||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | 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 | ||||||||
July 2, 2022 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gain | Loss | Value | |||||||||||||
Time deposits | 897 | — | — | 897 | ||||||||||||
Total | $ | 897 | $ | — | $ | — | $ | 897 | ||||||||
Amounts included in: | ||||||||||||||||
Investments | 897 | — | — | 897 | ||||||||||||
Total | $ | 897 | $ | — | $ | — | $ | 897 | ||||||||
December 31, 2021 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gain | Loss | Value | |||||||||||||
U.S. Treasury securities | $ | 13,929 | $ | — | $ | (12 | ) | $ | 13,917 | |||||||
Corporate debt securities | 39,135 | — | (14 | ) | 39,121 | |||||||||||
Time deposits | 19,030 | — | — | 19,030 | ||||||||||||
Total | $ | 72,094 | $ | — | $ | (26 | ) | $ | 72,068 | |||||||
Amounts included in: | ||||||||||||||||
Cash equivalents | $ | 4,017 | $ | — | $ | — | $ | 4,017 | ||||||||
Investments | 68,077 | — | (26 | ) | 68,051 | |||||||||||
Total | $ | 72,094 | $ | — | $ | (26 | ) | $ | 72,068 | |||||||
July 2, 2022 | December 31, 2021 | |||||||
Due in one year or less | $ | 897 | $ | 71,066 | ||||
Due after one year through three years | — | 1,002 | ||||||
Total | $ | 897 | $ | 72,068 | ||||
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 | ||||
October 2, 2021 | December 31, 2020 | July 2, 2022 | December 31, 2021 | |||||||||||||
Raw materials | $ | 158,529 | $ | 133,490 | $ | 180,658 | $ | 165,240 | ||||||||
Work in progress | 25,296 | 18,678 | 24,285 | 19,726 | ||||||||||||
Finished goods | 204,931 | 152,113 | 204,979 | 171,129 | ||||||||||||
Total inventories | $ | 388,756 | $ | 304,281 | $ | 409,922 | $ | 356,095 | ||||||||
October 2, 2021 | December 31, 2020 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | Gross Carrying Amount | Accumulated Amortization | Weighted- Average Amortization Period | |||||||||||||||||||
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 | ||||||||||||||
July 2, 2022 | December 31, 2021 | |||||||||||||||||||||||
Weighted- | Weighted- | |||||||||||||||||||||||
Gross | Average | Gross | Average | |||||||||||||||||||||
Carrying | Accumulated | Amortization | Carrying | Accumulated | Amortization | |||||||||||||||||||
Amount | Amortization | Period | Amount | Amortization | Period | |||||||||||||||||||
Capitalized software | $ | 555,602 | $ | 411,492 | 5 years | $ | 575,658 | $ | 420,862 | 5 years | ||||||||||||||
Purchased intangibles | 196,887 | 162,839 | 11 years | 201,302 | 163,752 | 11 years | ||||||||||||||||||
Trademarks | 9,680 | — | — | 9,680 | — | — | ||||||||||||||||||
Licenses | 11,484 | 6,091 | 7 years | 12,635 | 6,199 | 7 years | ||||||||||||||||||
Patents and other intangibles | 101,679 | 69,809 | 8 years | 102,353 | 68,414 | 8 years | ||||||||||||||||||
Total | $ | 875,332 | $ | 650,231 | 7 years | $ | 901,628 | $ | 659,227 | 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 |
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 | 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 | 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 | ||||
July 2, 2022 | December 31, 2021 | |||||||
Senior unsecured notes - Series I - 3.13%, due May 2023 | $ | 50,000 | $ | — | ||||
Total notes payable and debt, current | 50,000 | — | ||||||
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 | ||||||
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 | 100,000 | ||||||
Senior unsecured notes - Series O - 2.25%, due March 2031 | 400,000 | 400,000 | ||||||
Credit agreement | 180,000 | 210,000 | ||||||
Unamortized debt issuance costs | (5,626 | ) | (6,130 | ) | ||||
Total long-term debt | 1,434,374 | 1,513,870 | ||||||
Total debt | $ | 1,484,374 | $ | 1,513,870 | ||||
* | Series H senior unsecured notes bear interest at a 3-month LIBOR for that floating rate interest period plus 1.25%. |
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 | ) | 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 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
Cost of sales | $ | 915 | $ | 727 | $ | 1,942 | $ | 1,360 | ||||||||
Selling and administrative expenses | 7,264 | 5,274 | 15,433 | 11,694 | ||||||||||||
Research and development expenses | 1,610 | 1,290 | 3,347 | 2,542 | ||||||||||||
Total stock-based compensation | $ | 9,789 | $ | 7,291 | $ | 20,722 | $ | 15,596 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
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 | ||||||||
Six Months Ended | ||||||||
Options Issued and Significant Assumptions Used to Estimate Option Fair Values | July 2, 2022 | July 3, 2021 | ||||||
Options issued in thousands | 127 | 159 | ||||||
Risk-free interest rate | 1.9 | % | 0.8 | % | ||||
Expected life in years | 6 | 6 | ||||||
Expected volatility | 30.9 | % | 32.5 | % | ||||
Expected dividends | 0— | — |
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 | 0 | — |
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 |
Six Months Ended | ||||||||
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | July 2, 2022 | July 3, 2021 | ||||||
Exercise price | $ | 321.91 | $ | 280.92 | ||||
Fair value | $ | 107.76 | $ | 91.42 |
Number of Shares | Exercise Price per Share | Weighted-Average Exercise Price per Share | ||||||||||
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 | |||||||
Number of Shares | Exercise Price per Share | Weighted-Average Exercise Price per Share | ||||||||||||||||
Outstanding at December 31, 2021 | 691 | $ | 88.71 | to | $ | 371.64 | $ | 202.24 | ||||||||||
Granted | 127 | $ | 314.98 | to | $ | 364.59 | $ | 321.91 | ||||||||||
Exercised | (150 | ) | $ | 88.71 | to | $ | 279.90 | $ | 170.44 | |||||||||
Canceled | (18 | ) | $ | 203.37 | to | $ | 364.59 | $ | 250.27 | |||||||||
Outstanding at July 2, 2022 | 650 | $ | 88.71 | to | $ | 371.64 | $ | 231.63 | ||||||||||
Shares | Weighted-Average Grant Date Fair Value per Share | |||||||
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 | |||||
Shares | Weighted-Average Grant Date Fair Value per Share | |||||||
Unvested at December 31, 2021 | 245 | $ | 234.97 | |||||
Granted | 94 | $ | 323.65 | |||||
Vested | (71 | ) | $ | 220.07 | ||||
Forfeited | (16 | ) | $ | 256.66 | ||||
Unvested at July 2, 2022 | 252 | $ | 270.87 | |||||
Nine Months Ended | ||||||||
Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values | 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 | 0 | — |
Six Months Ended | ||||||||
Performance Stock Units Issued and Significant Assumptions Used to Estimate Fair Values | July 2, 2022 | July 3, 2021 | ||||||
Performance stock units issued (in thousands) | 40 | 41 | ||||||
Risk-free interest rate | 1.6 | % | 0.2 | % | ||||
Expected life in years | 2.9 | 2.9 | ||||||
Expected volatility | 25.4 | % | 38.7 | % | ||||
Average volatility of peer companies | 34.5 | % | 34.7 | % | ||||
Correlation coefficient | 43.0 | % | 45.8 | % | ||||
Expected dividends | 0— | — |
Shares | Weighted-Average Fair Value per Share | Shares | Weighted-Average Fair Value per Share | |||||||||||||
Unvested at December 31, 2020 | 95 | $ | 230.36 | |||||||||||||
Unvested at December 31, 2021 | 87 | $ | 285.73 | |||||||||||||
Granted | 41 | $ | 315.98 | 40 | $ | 313.21 | ||||||||||
Vested | (5 | ) | $ | 242.94 | (24 | ) | $ | 308.71 | ||||||||
Forfeited | (44 | ) | $ | 199.22 | 10 | $ | 370.15 | |||||||||
Unvested at October 2, 2021 | 87 | $ | 285.73 | |||||||||||||
Unvested at July 2, 2022 | 113 | $ | 298.05 | |||||||||||||
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 | 0 | 529 | (0.03 | ) | ||||||||
Net income per diluted common share | $ | 161,185 | 61,888 | $ | 2.60 | |||||||
Three Months Ended July 2, 2022 | ||||||||||||
Net Income | Weighted- Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
Net income per basic common share | $ | 164,864 | 60,206 | $ | 2.74 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 304 | (0.02 | ) | ||||||||
Net income per diluted common share | $ | 164,864 | 60,510 | $ | 2.72 | |||||||
Three Months Ended September 26, 2020 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
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 | |||||||
Three Months Ended July 3, 2021 | ||||||||||||
Net Income | Weighted- Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | 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 | |||||||
Nine Months Ended October 2, 2021 | ||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||
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 | 0 | 473 | (0.06 | ) | ||||||||
Net income per diluted common share | $ | 476,604 | 62,244 | $ | 7.66 | |||||||
Six Months Ended July 2, 2022 | ||||||||||||
Net Income | Weighted- Average Shares | Per Share | ||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||
Net income per basic common share | $ | 324,695 | 60,399 | $ | 5.38 | |||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | — | 345 | (0.03 | ) | ||||||||
Net income per diluted common share | $ | 324,695 | 60,744 | $ | 5.35 | |||||||
Six Months Ended July 3, 2021 | ||||||||||||||||||||||||
Net Income | Weighted- Average Shares | Per Share | ||||||||||||||||||||||
Nine Months Ended September 26, 2020 | (Numerator) | (Denominator) | Amount | |||||||||||||||||||||
Net Income (Numerator) | Weighted- Average Shares (Denominator) | Per Share Amount | ||||||||||||||||||||||
Net income per basic common share | $ | 303,260 | 62,057 | $ | 4.89 | $ | 315,419 | 61,979 | $ | 5.09 | ||||||||||||||
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities | 0 | 314 | (0.03 | ) | 0— | 456 | (0.04 | ) | ||||||||||||||||
Net income per diluted common share | $ | 303,260 | 62,371 | $ | 4.86 | $ | 315,419 | 62,435 | $ | 5.05 | ||||||||||||||
Currency Translation | Unrealized Gain (Loss) on Retirement Plans | Unrealized Gain 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 | 1,256 | 1,071 | 2 | 2,329 | ||||||||||||
Balance at October 2, 2021 | $ | (96,826 | ) | $ | (18,790 | ) | $ | 2 | $ | (115,614 | ) | |||||
Currency Translation | Unrealized Gain (Loss) on Retirement Plans | Unrealized Gain (Loss) on Investments | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at December 31, 2021 | $ | (99,985 | ) | $ | (11,860 | ) | $ | (20 | ) | $ | (111,865 | ) | ||||
Other comprehensive (loss) income, net of tax | (30,476 | ) | 932 | 20 | (29,524 | ) | ||||||||||
Balance at July 2, 2022 | $ | (130,461 | ) | $ | (10,928 | ) | $ | — | $ | (141,389 | ) | |||||
Three Months Ended | ||||||||||||||||
July 2, 2022 | July 3, 2021 | |||||||||||||||
U.S. Retiree | Non-U.S. | U.S. Retiree | Non-U.S. | |||||||||||||
Healthcare | Pension | Healthcare | Pension | |||||||||||||
Plan | Plans | Plan | Plans | |||||||||||||
Service cost | $ | 226 | $ | 1,003 | $ | 232 | $ | 1,147 | ||||||||
Interest cost | 146 | 341 | 139 | 312 | ||||||||||||
Expected return on plan assets | (269 | ) | (496 | ) | (255 | ) | (464 | ) | ||||||||
Net amortization: | ||||||||||||||||
Prior service credit | (5 | ) | (32 | ) | (4 | ) | (39 | ) | ||||||||
Net actuarial loss | — | 157 | — | 261 | ||||||||||||
Net periodic pension cost | $ | 98 | $ | 973 | $ | 112 | $ | 1,217 | ||||||||
Three Months Ended | ||||||||||||||||
October 2, 2021 | September 26, 2020 | |||||||||||||||
U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | |||||||||||||
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 | 0 | 102 | 0 | 0 | ||||||||||||
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 | ||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||
July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||||||||
Nine Months Ended | U.S. Retiree | Non-U.S. | U.S. Retiree | Non-U.S. | ||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | Healthcare | Pension | Healthcare | Pension | |||||||||||||||||||||||||||
U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | U.S. Retiree Healthcare Plan | Non-U.S. Pension Plans | Plan | Plans | Plan | Plans | |||||||||||||||||||||||||
Service cost | $ | 663 | $ | 3,447 | $ | 499 | $ | 3,334 | $ | 452 | $ | 2,085 | $ | 465 | $ | 2,307 | ||||||||||||||||
Interest cost | 419 | 936 | 533 | 1,036 | 291 | 707 | 278 | 627 | ||||||||||||||||||||||||
Expected return on plan assets | (758 | ) | (1,389 | ) | (653 | ) | (1,386 | ) | (538 | ) | (1,030 | ) | (510 | ) | (930 | ) | ||||||||||||||||
Settlement loss | 0 | 102 | 0 | 0 | ||||||||||||||||||||||||||||
Net amortization: | ||||||||||||||||||||||||||||||||
Prior service credit | (14 | ) | (67 | ) | (14 | ) | (122 | ) | (10 | ) | (69 | ) | (9 | ) | (80 | ) | ||||||||||||||||
Net actuarial loss | 8 | 653 | — | 1,164 | — | 326 | — | 523 | ||||||||||||||||||||||||
Net periodic pension cost | $ | 318 | $ | 3,682 | $ | 365 | $ | 4,026 | $ | 195 | $ | 2,019 | $ | 224 | $ | 2,447 | ||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||
Product net sales: | ||||||||||||||||||||||||||||||||
Waters instrument systems | $ | 240,475 | $ | 225,790 | $ | 717,910 | $ | 550,018 | $ | 280,846 | $ | 261,363 | $ | 550,808 | $ | 477,435 | ||||||||||||||||
Chemistry consumables | 123,045 | 108,175 | 368,478 | 300,525 | 131,947 | 126,459 | 257,565 | 245,433 | ||||||||||||||||||||||||
TA instrument systems | 55,613 | 42,274 | 155,722 | 114,799 | 56,837 | 53,133 | 112,097 | 100,109 | ||||||||||||||||||||||||
Total product sales | 419,133 | 376,239 | 1,242,110 | 965,342 | 469,630 | 440,955 | 920,470 | 822,977 | ||||||||||||||||||||||||
Service net sales: | ||||||||||||||||||||||||||||||||
Waters service | 218,291 | 199,501 | 644,625 | 562,843 | 222,359 | 219,502 | 439,935 | 426,334 | ||||||||||||||||||||||||
TA service | 21,809 | 18,044 | 62,690 | 50,522 | 22,330 | 21,190 | 44,486 | 40,881 | ||||||||||||||||||||||||
Total service sales | 240,100 | 217,545 | 707,315 | 613,365 | 244,689 | 240,692 | 484,421 | 467,215 | ||||||||||||||||||||||||
Total net sales | $ | 659,233 | $ | 593,784 | $ | 1,949,425 | $ | 1,578,707 | $ | 714,319 | $ | 681,647 | $ | 1,404,891 | $ | 1,290,192 | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
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 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
Net Sales: | ||||||||||||||||
Asia: | ||||||||||||||||
China | $ | 138,740 | $ | 127,225 | $ | 259,772 | $ | 230,144 | ||||||||
Japan | 37,504 | 45,113 | 86,127 | 95,409 | ||||||||||||
Asia Other | 101,766 | 97,609 | 186,445 | 173,936 | ||||||||||||
Total Asia | 278,010 | 269,947 | 532,344 | 499,489 | ||||||||||||
Americas: | ||||||||||||||||
United States | 213,815 | 186,915 | 422,528 | 349,348 | ||||||||||||
Americas Other | 43,456 | 37,979 | 83,580 | 72,903 | ||||||||||||
Total Americas | 257,271 | 224,894 | 506,108 | 422,251 | ||||||||||||
Europe | 179,038 | 186,806 | 366,439 | 368,452 | ||||||||||||
Total net sales | $ | 714,319 | $ | 681,647 | $ | 1,404,891 | $ | 1,290,192 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
Pharmaceutical | $ | 437,171 | $ | 416,705 | $ | 852,943 | $ | 776,853 | ||||||||
Industrial | 208,517 | 202,579 | 417,914 | 385,852 | ||||||||||||
Academic and government | 68,631 | 62,363 | 134,034 | 127,487 | ||||||||||||
Total net sales | $ | 714,319 | $ | 681,647 | $ | 1,404,891 | $ | 1,290,192 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
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 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||
Net sales recognized at a point in time: | ||||||||||||||||
Instrument systems | $ | 337,683 | $ | 314,496 | $ | 662,905 | $ | 577,544 | ||||||||
Chemistry consumables | 131,947 | 126,459 | 257,565 | 245,433 | ||||||||||||
Service sales recognized at a point in time (time & materials) | 91,571 | 88,832 | 177,350 | 168,119 | ||||||||||||
Total net sales recognized at a point in time | 561,201 | 529,787 | 1,097,820 | 991,096 | ||||||||||||
Net sales recognized over time: | ||||||||||||||||
Service and software maintenance sales recognized over time (contracts) | 153,118 | 151,860 | 307,071 | 299,096 | ||||||||||||
Total net sales | $ | 714,319 | $ | 681,647 | $ | 1,404,891 | $ | 1,290,192 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | |||||||||||||
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 | ||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | % change | October 2, 2021 | September 26, 2020 | % change | July 2, 2022 | July 3, 2021 | % change | July 2, 2022 | July 3, 2021 | % change | |||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||
Product sales | $ | 419,133 | $ | 376,239 | 11 | % | $ | 1,242,110 | $ | 965,342 | 29 | % | $ | 469,630 | $ | 440,955 | 7 | % | $ | 920,470 | $ | 822,977 | 12 | % | ||||||||||||||||||||||||
Service sales | 240,100 | 217,545 | 10 | % | 707,315 | 613,365 | 15 | % | 244,689 | 240,692 | 2 | % | 484,421 | 467,215 | 4 | % | ||||||||||||||||||||||||||||||||
Total net sales | 659,233 | 593,784 | 11 | % | 1,949,425 | 1,578,707 | 23 | % | 714,319 | 681,647 | 5 | % | 1,404,891 | 1,290,192 | 9 | % | ||||||||||||||||||||||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 271,128 | 262,342 | 3 | % | 805,529 | 686,120 | 17 | % | 307,206 | 280,254 | 10 | % | 592,891 | 534,401 | 11 | % | ||||||||||||||||||||||||||||||||
Selling and administrative expenses | 152,545 | 135,430 | 13 | % | 453,954 | 400,614 | 13 | % | 161,877 | 158,213 | 2 | % | 319,352 | 301,409 | 6 | % | ||||||||||||||||||||||||||||||||
Research and development expenses | 41,986 | 34,971 | 20 | % | 125,027 | 101,115 | 24 | % | 44,006 | 44,949 | (2 | %) | 84,478 | 83,041 | 2 | % | ||||||||||||||||||||||||||||||||
Purchased intangibles amortization | 1,759 | 2,657 | (34 | %) | 5,408 | 7,900 | (32 | %) | 1,598 | 1,809 | (12 | %) | 3,271 | 3,649 | (10 | %) | ||||||||||||||||||||||||||||||||
Litigation provision | — | — | — | — | 1,180 | (100 | %) | |||||||||||||||||||||||||||||||||||||||||
Acquired in-process research and development (Note 1) | — | — | — | 9,797 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Operating income | 191,815 | 158,384 | 21 | % | 559,507 | 381,778 | 47 | % | 199,632 | 196,422 | 2 | % | 395,102 | 367,692 | 7 | % | ||||||||||||||||||||||||||||||||
Operating income as a % of sales | 29.1 | % | 26.7 | % | 28.7 | % | 24.2 | % | 27.9 | % | 28.8 | % | 28.1 | % | 28.5 | % | ||||||||||||||||||||||||||||||||
Other expense | (607 | ) | (1,039 | ) | (42 | %) | 18,073 | (2,149 | ) | * | * | |||||||||||||||||||||||||||||||||||||
Other income, net | 1,535 | 9,321 | (84 | %) | 1,705 | 18,680 | (91 | %) | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (8,533 | ) | (6,908 | ) | 24 | % | (23,707 | ) | (25,966 | ) | (9 | %) | (8,893 | ) | (8,329 | ) | 7 | % | (17,838 | ) | (15,174 | ) | 18 | % | ||||||||||||||||||||||||
Income before income taxes | 182,675 | 150,437 | 21 | % | 553,873 | 353,663 | 57 | % | 192,274 | 197,414 | (3 | %) | 378,969 | 371,198 | 2 | % | ||||||||||||||||||||||||||||||||
Provision for income taxes | 21,490 | 23,668 | (9 | %) | 77,269 | 50,403 | 53 | % | 27,410 | 30,122 | (9 | %) | 54,274 | 55,779 | (3 | %) | ||||||||||||||||||||||||||||||||
Net income | $ | 161,185 | $ | 126,769 | 27 | % | $ | 476,604 | $ | 303,260 | 57 | % | $ | 164,864 | $ | 167,292 | (1 | %) | $ | 324,695 | $ | 315,419 | 3 | % | ||||||||||||||||||||||||
Net income per diluted common share | $ | 2.60 | $ | 2.03 | 28 | % | $ | 7.66 | $ | 4.86 | 58 | % | $ | 2.72 | $ | 2.69 | 1 | % | $ | 5.35 | $ | 5.05 | 6 | % | ||||||||||||||||||||||||
** Percentage not meaningful |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | % change | October 2, 2021 | September 26, 2020 | % change | July 2, 2022 | July 3, 2021 | % change | July 2, 2022 | July 3, 2021 | % change | |||||||||||||||||||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||||||||||||||||||||||||||
Asia: | ||||||||||||||||||||||||||||||||||||||||||||||||
China | $ | 115,886 | $ | 115,666 | — | $ | 346,030 | $ | 252,713 | 37 | % | $ | 138,740 | $ | 127,225 | 9 | % | $ | 259,772 | $ | 230,144 | 13 | % | |||||||||||||||||||||||||
Japan | 44,293 | 44,779 | (1 | %) | 139,702 | 131,098 | 7 | % | 37,504 | 45,113 | (17 | %) | 86,127 | 95,409 | (10 | %) | ||||||||||||||||||||||||||||||||
Asia Other | 94,423 | 75,737 | 25 | % | 268,359 | 219,660 | 22 | % | 101,766 | 97,609 | 4 | % | 186,445 | 173,936 | 7 | % | ||||||||||||||||||||||||||||||||
Total Asia | 254,602 | 236,182 | 8 | % | 754,091 | 603,471 | 25 | % | 278,010 | 269,947 | 3 | % | 532,344 | 499,489 | 7 | % | ||||||||||||||||||||||||||||||||
Americas: | ||||||||||||||||||||||||||||||||||||||||||||||||
United States | 194,776 | 172,267 | 13 | % | 544,124 | 465,093 | 17 | % | 213,815 | 186,915 | 14 | % | 422,528 | 349,348 | 21 | % | ||||||||||||||||||||||||||||||||
Americas Other | 36,225 | 27,180 | 33 | % | 109,128 | 81,312 | 34 | % | 43,456 | 37,979 | 14 | % | 83,580 | 72,903 | 15 | % | ||||||||||||||||||||||||||||||||
Total Americas | 231,001 | 199,447 | 16 | % | 653,252 | 546,405 | 20 | % | 257,271 | 224,894 | 14 | % | 506,108 | 422,251 | 20 | % | ||||||||||||||||||||||||||||||||
Europe | 173,630 | 158,155 | 10 | % | 542,082 | 428,831 | 26 | % | 179,038 | 186,806 | (4 | %) | 366,439 | 368,452 | (1 | %) | ||||||||||||||||||||||||||||||||
Total net sales | $ | 659,233 | $ | 593,784 | 11 | % | $ | 1,949,425 | $ | 1,578,707 | 23 | % | $ | 714,319 | $ | 681,647 | 5 | % | $ | 1,404,891 | $ | 1,290,192 | 9 | % | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
October 2, 2021 | September 26, 2020 | % change | October 2, 2021 | September 26, 2020 | % change | July 2, 2022 | July 3, 2021 | July 2, 2022 | July 3, 2021 | |||||||||||||||||||||||||||||||
Pharmaceutical | $ | 398,338 | $ | 343,001 | 16 | % | $ | 1,175,191 | $ | 926,582 | 27 | % | $ | 437,171 | $ | 416,705 | $ | 852,943 | $ | 776,853 | ||||||||||||||||||||
Industrial | 196,032 | 179,128 | 9 | % | 581,884 | 474,592 | 23 | % | 208,517 | 202,579 | 417,914 | 385,852 | ||||||||||||||||||||||||||||
Academic and government | 64,863 | 71,655 | (9 | %) | 192,350 | 177,533 | 8 | % | 68,631 | 62,363 | 134,034 | 127,487 | ||||||||||||||||||||||||||||
Total net sales | $ | 659,233 | $ | 593,784 | 11 | % | $ | 1,949,425 | $ | 1,578,707 | 23 | % | $ | 714,319 | $ | 681,647 | $ | 1,404,891 | $ | 1,290,192 | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
October 2, 2021 | % of Total | September 26, 2020 | % of Total | % change | Three Months Ended | |||||||||||||||||||||||||||||||||||
July 2, 2022 | % of Total | July 3, 2021 | % of Total | % change | ||||||||||||||||||||||||||||||||||||
Waters instrument systems | $ | 240,475 | 41 | % | $ | 225,790 | 42 | % | 7 | % | $ | 280,846 | 44 | % | $ | 261,363 | 43 | % | 7 | % | ||||||||||||||||||||
Chemistry consumables | 123,045 | 21 | % | 108,175 | 21 | % | 14 | % | 131,947 | 21 | % | 126,459 | 21 | % | 4 | % | ||||||||||||||||||||||||
Total Waters product sales | 363,520 | 62 | % | 333,965 | 63 | % | 9 | % | 412,793 | 65 | % | 387,822 | 64 | % | 6 | % | ||||||||||||||||||||||||
Waters service | 218,291 | 38 | % | 199,501 | 37 | % | 9 | % | 222,359 | 35 | % | 219,502 | 36 | % | 1 | % | ||||||||||||||||||||||||
Total Waters net sales | $ | 581,811 | 100 | % | $ | 533,466 | 100 | % | 9 | % | $ | 635,152 | 100 | % | $ | 607,324 | 100 | % | 5 | % | ||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||
July 2, 2022 | % of Total | July 3, 2021 | % of Total | % change | ||||||||||||||||
Waters instrument systems | $ | 550,808 | 44 | % | $ | 477,435 | 42 | % | 15 | % | ||||||||||
Chemistry consumables | 257,565 | 21 | % | 245,433 | 21 | % | 5 | % | ||||||||||||
Total Waters product sales | 808,373 | 65 | % | 722,868 | 63 | % | 12 | % | ||||||||||||
Waters service | 439,935 | 35 | % | 426,334 | 37 | % | 3 | % | ||||||||||||
Total Waters net sales | $ | 1,248,308 | 100 | % | $ | 1,149,202 | 100 | % | 9 | % | ||||||||||
Nine Months Ended | ||||||||||||||||||||
October 2, 2021 | % of Total | September 26, 2020 | % of Total | % change | ||||||||||||||||
Waters instrument systems | $ | 717,910 | 41 | % | $ | 550,018 | 39 | % | 31 | % | ||||||||||
Chemistry consumables | 368,478 | 22 | % | 300,525 | 21 | % | 23 | % | ||||||||||||
Total Waters product sales | 1,086,388 | 63 | % | 850,543 | 60 | % | 28 | % | ||||||||||||
Waters service | 644,625 | 37 | % | 562,843 | 40 | % | 15 | % | ||||||||||||
Total Waters net sales | $ | 1,731,013 | 100 | % | $ | 1,413,386 | 100 | % | 22 | % | ||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
October 2, 2021 | % of Total | September 26, 2020 | % of Total | % change | July 2, 2022 | % of Total | July 3, 2021 | % of Total | % change | |||||||||||||||||||||||||||||||
TA instrument systems | $ | 55,613 | 72 | % | $ | 42,274 | 70 | % | 32 | % | $ | 56,837 | 72 | % | $ | 53,133 | 71 | % | 7 | % | ||||||||||||||||||||
TA service | 21,809 | 28 | % | 18,044 | 30 | % | 21 | % | 22,330 | 28 | % | 21,190 | 29 | % | 5 | % | ||||||||||||||||||||||||
Total TA net sales | $ | 77,422 | 100 | % | $ | 60,318 | 100 | % | 28 | % | $ | 79,167 | 100 | % | $ | 74,323 | 100 | % | 7 | % | ||||||||||||||||||||
Nine Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
October 2, 2021 | % of Total | September 26, 2020 | % of Total | % change | July 2, 2022 | % of Total | July 3, 2021 | % of Total | % change | |||||||||||||||||||||||||||||||
TA instrument systems | $ | 155,722 | 71 | % | $ | 114,799 | 69 | % | 36 | % | $ | 112,097 | 72 | % | $ | 100,109 | 71 | % | 12 | % | ||||||||||||||||||||
TA service | 62,690 | 29 | % | 50,522 | 31 | % | 24 | % | 44,486 | 28 | % | 40,881 | 29 | % | 9 | % | ||||||||||||||||||||||||
Total TA net sales | $ | 218,412 | 100 | % | $ | 165,321 | 100 | % | 32 | % | $ | 156,583 | 100 | % | $ | 140,990 | 100 | % | 11 | % | ||||||||||||||||||||
Nine Months Ended | ||||||||
October 2, 2021 | September 26, 2020 | |||||||
Net income | $ | 476,604 | $ | 303,260 | ||||
Depreciation and amortization | 97,926 | 91,091 | ||||||
Stock-based compensation | 21,949 | 27,715 | ||||||
Deferred income taxes | 9,219 | 1,089 | ||||||
Change in accounts receivable | 23,472 | 96,955 | ||||||
Change in inventories | (93,878 | ) | (8,139 | ) | ||||
Change in accounts payable and other current liabilities | (4,768 | ) | 46,721 | |||||
Change in deferred revenue and customer advances | 71,889 | 32,053 | ||||||
Other changes | (73,077 | ) | (67,720 | ) | ||||
Net cash provided by operating activities | 529,336 | 523,025 | ||||||
Net cash used in investing activities | (248,428 | ) | (226,561 | ) | ||||
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 | ||||
Six Months Ended | ||||||||
July 2, 2022 | July 3, 2021 | |||||||
Net income | $ | 324,695 | $ | 315,419 | ||||
Depreciation and amortization | 66,891 | 64,743 | ||||||
Stock-based compensation | 20,722 | 15,596 | ||||||
Deferred income taxes | (12,523 | ) | 6,107 | |||||
Acquired in-process research and development and othernon-cash items | 7,903 | — | ||||||
Change in accounts receivable | (57,377 | ) | 18,985 | |||||
Change in inventories | (65,070 | ) | (50,873 | ) | ||||
Change in accounts payable and other current liabilities | (32,197 | ) | (35,328 | ) | ||||
Change in deferred revenue and customer advances | 70,027 | 91,631 | ||||||
Other changes | (68,208 | ) | (64,836 | ) | ||||
Net cash provided by operating activities | 254,863 | 361,444 | ||||||
Net cash used in investing activities | (7,403 | ) | (281,106 | ) | ||||
Net cash used in financing activities | (310,181 | ) | (48,191 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (19,616 | ) | (8,786 | ) | ||||
(Decrease) increase in cash and cash equivalents | $ | (82,337 | ) | $ | 23,361 | |||
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) | ||||||||||||||
July 4, 2021 to July 31, 2021 | 130 | $ | 373.27 | 130 | $ | 1,137,305 | ||||||||||||
August 1, 2021 to August 28, 2021 | 107 | $ | 404.75 | 107 | $ | 1,094,259 | ||||||||||||
August 29, 2021 to October 2, 2021 | 135 | $ | 401.66 | 133 | $ | 1,040,647 | ||||||||||||
Total | 372 | $ | 392.61 | 370 | $ | 1,040,647 | ||||||||||||
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 3, 2022 to April 30, 2022 | 166 | $ | 302.44 | 166 | $ | 673,941 | ||||||||||
May 1, 2022 to May 28, 2022 | 156 | $ | 320.74 | 155 | $ | 624,106 | ||||||||||
May 29, 2022 to July 2, 2022 | 158 | $ | 326.65 | 158 | $ | 572,627 | ||||||||||
Total | 480 | $ | 316.36 | 479 | $ | 572,627 | ||||||||||
(1) | The Company repurchased approximately |
(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 program replaced the remaining amounts available under thepre-existing authorization. In December 2020, the Company’s Board of Directors authorized the extension of the share repurchase program through January 21, 2023. The size and timing of these purchases, if any, will depend on our stock price and market and business conditions, |
(*) | 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/ Amol Chaubal |
Amol Chaubal |
Senior Vice President and Chief Financial Officer |
(Principal Financial Officer) |
(Principal Accounting Officer) |