Waters (WAT) 10-Q 7 Aug 09 2009 Q2 Quarterly report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Jul. 04, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$358,445	$428,522
Short-term investments	147,236	0
Accounts receivable, less allowances for doubtful accounts and sales returns of $7,043 and $7,608 at July 4, 2009 and December 31, 2008, respectively	294,936	291,763
Inventories	196,316	173,051
Other current assets	61,324	62,966
Total current assets	1,058,257	956,302
Property, plant and equipment, net	203,293	171,588
Intangible assets, net	177,407	149,652
Goodwill	292,312	268,364
Other assets	71,348	76,992
Total assets	1,802,617	1,622,898
Current liabilities:
Notes payable and debt	130,757	36,120
Accounts payable	51,297	47,240
Accrued employee compensation	29,639	43,535
Deferred revenue and customer advances	112,936	87,492
Accrued income taxes	11,196	0
Accrued warranty	10,030	10,276
Other current liabilities	54,241	64,843
Total current liabilities	400,096	289,506
Long-term liabilities:
Long-term debt	500,000	500,000
Long-term portion of retirement benefits	74,423	77,017
Long-term income tax liability	78,741	80,310
Other long-term liabilities	18,608	15,060
Total long-term liabilities	671,772	672,387
Total liabilities	1,071,868	961,893
Stockholders' equity:
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none issued at July 4, 2009 and December 31, 2008	0	0
Common stock, par value $0.01 per share, 400,000 shares authorized, 148,353 and 148,069 shares issued, 95,478 and 97,891 shares outstanding at July 4, 2009 and December 31, 2008, respectively	1,484	1,481
Additional paid-in capital	774,375	756,499
Retained earnings	2,056,657	1,913,403
Treasury stock, at cost, 52,875 and 50,178 shares at July 4, 2009 and December 31, 2008, respectively	(2,110,682)	(2,001,797)
Accumulated other comprehensive income	8,915	(8,581)
Total stockholders' equity	730,749	661,005
Total liabilities and stockholders' equity	$1,802,617	$1,622,898

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) (USD $)
In Thousands, except Per Share data	Jul. 04, 2009	Dec. 31, 2008
Allowances for doubtful accounts and sales returns	$7,043	$7,608
Preferred stock, par value per share	0.01	0.01
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Common stock, par value per share	0.01	0.01
Common stock, shares authorized	400,000	400,000
Common stock, shares issued	148,353	148,069
Common stock, shares outstanding	95,478	97,891
Treasury stock, shares	52,875	50,178

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data	3 Months Ended Jul. 04, 2009	3 Months Ended Jun. 28, 2008	6 Months Ended Jul. 04, 2009	6 Months Ended Jun. 28, 2008
Product sales	$253,521	$287,121	$480,969	$557,586
Service sales	109,316	111,650	214,920	212,897
Total net sales	362,837	398,771	695,889	770,483
Cost of product sales	98,506	121,256	181,908	227,596
Cost of service sales	45,648	53,976	89,700	103,087
Total cost of sales	144,154	175,232	271,608	330,683
Gross profit	218,683	223,539	424,281	439,800
Selling and administrative expenses	109,583	111,935	208,742	217,772
Research and development expenses	19,722	22,228	38,054	42,014
Purchased intangibles amortization	2,683	2,352	5,299	4,624
Operating income	86,695	87,024	172,186	175,390
Interest expense	(2,649)	(9,807)	(5,779)	(20,964)
Interest income	595	4,952	1,503	11,865
Income from operations before income taxes	84,641	82,169	167,910	166,291
Provision for income tax expense (benefit)	14,734	(979)	24,656	14,668
Net income	$69,907	$83,148	$143,254	$151,623
Net income per basic common share	0.73	0.83	1.48	1.52
Weighted-average number of basic common shares	96,147	99,586	96,696	99,981
Net income per diluted common share	0.72	0.82	1.47	1.49
Weighted-average number of diluted common shares and equivalents	96,996	101,035	97,388	101,531

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	6 Months Ended Jul. 04, 2009	6 Months Ended Jun. 28, 2008
Cash flows from operating activities:
Net income	$143,254	$151,623
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for doubtful accounts on accounts receivable	787	890
Provisions on inventory	3,560	5,466
Stock-based compensation	14,506	15,509
Deferred income taxes	5,007	(13,373)
Depreciation	16,296	15,611
Amortization of intangibles	12,611	23,176
Change in operating assets and liabilities, net of acquisitions:
(Increase) decrease in accounts receivable	(1,845)	22,164
Increase in inventories	(18,584)	(33,684)
Decrease in other current assets	2,383	2,909
Decrease (increase) in other assets	178	(3,085)
Decrease in accounts payable and other current liabilities	(24,829)	(10,275)
Increase in deferred revenue and customer advances	22,220	19,761
(Decrease) increase in other liabilities	(1,710)	6,596
Net cash provided by operating activities	173,834	203,288
Cash flows from investing activities:
Additions to property, plant, equipment and software capitalization	(57,754)	(32,574)
Business acquisitions, net of cash acquired	(36,086)	0
Purchase of short-term investments	(147,236)	(19,738)
Maturity of short-term investments	0	115,419
Net cash (used in) provided by investing activities	(241,076)	63,107
Cash flows from financing activities:
Proceeds from debt issuances	143,625	389,904
Payments on debt	(52,888)	(290,060)
Payments of debt issuance costs	0	(501)
Proceeds from stock plans	3,955	16,247
Purchase of treasury shares	(108,885)	(154,336)
Excess tax benefit related to stock option plans	0	6,168
Proceeds (payments) of debt swaps and other derivative contracts	8,318	(483)
Net cash used in financing activities	(5,875)	(33,061)
Effect of exchange rate changes on cash and cash equivalents	3,040	14
(Decrease) increase in cash and cash equivalents	(70,077)	233,348
Cash and cash equivalents at beginning of period	428,522	597,333
Cash and cash equivalents at end of period	$358,445	$830,681

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies
	6 Months Ended Jul. 04, 2009 USD / shares
Basis of Presentation and Significant Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	1Basis of Presentation and Significant Accounting Policies Waters Corporation (Waters or the Company), an analytical instrument manufacturer, designs, manufactures, sells and services, through its Waters Division, high performance liquid chromatography (HPLC), ultra performance liquid chromatography (UPLC and together with HPLC, herein referred to as LC) and mass spectrometry (MS) instrument systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. These systems are complementary products that can be integrated together and used along with other analytical instruments. LC is a standard technique and is utilized in a broad range of industries to detect, identify, monitor and measure the chemical, physical and biological composition of materials, and to purify a full range of compounds. MS instruments are used in drug discovery and development, including clinical trial testing, the analysis of proteins in disease processes (known as proteomics) and environmental testing. LC is often combined with MS to create LC-MS instruments that include a liquid phase sample introduction and separation system with mass spectrometric compound identification and quantification. Through its TA Division (TA), the Company designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments which are used in predicting the suitability of polymers and viscous liquids for various industrial, consumer goods and healthcare products, as well as for life science research. The Company is also a developer and supplier of software-based products that interface with the Companys instruments and are typically purchased by customers as part of the instrument system. The Companys interim fiscal quarter typically ends on the thirteenth Saturday of each quarter. Since the Companys fiscal year end is December 31, the first and fourth fiscal quarters may not consist of thirteen complete weeks. The Companys second fiscal quarters for 2009 and 2008 ended on July 4, 2009 and June 28, 2008, respectively. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles (GAAP) in the United States of America. The consolidated financial statements include the accounts of the Company and its subsidiaries, most of which are wholly owned. All material inter-company balances and transactions have been eliminated. The preparation of consolidated financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities at the dates of the financial statements. Actual amounts may differ from these estimates under different assumptions or conditions. It is managements opinion that the accompanying interim consolidated financial statements reflect all adjustments (which are normal and recurring) that are necessary for a fair s

Out-of-Period Adjustments

Out-of-Period Adjustments
	6 Months Ended Jul. 04, 2009 USD / shares
Out-of-Period Adjustments [Abstract]
Out-of-Period Adjustments	2 Out-of-Period Adjustments During the second quarter of 2008, the Company identified errors originating in periods prior to the three months ended June 28, 2008. The errors primarily related to (i) an overstatement of the Company's income tax expense of $16 million as a result of errors in recording its income tax provision during the period from 2000 to March 29, 2008 and (ii) an understatement of amortization expense of $9 million for certain capitalized software. The Company incorrectly calculated its provision for income taxes by tax-effecting its tax liability utilizing a U.S. tax rate of 35% instead of an Irish tax rate of 10%. In addition, the Company incorrectly accounted for Irish-based capitalized software and the related amortization expense as U.S. Dollar-denominated instead of Euro-denominated, resulting in an understatement of amortization expense and cumulative translation adjustment. The Company identified and corrected the errors in the three months ended June 28, 2008, which had the effect of increasing cost of sales by $9 million; reducing gross profit and income from operations before income tax by $9 million; reducing the provision for income taxes by $16 million and increasing net income by $8 million. For the three and six months ended June 28, 2008, the errors reduced the Companys effective tax rate by 18.1 percentage points and 8.9 percentage points, respectively. In addition, the out-of-period adjustments had the following effect on the consolidated balance sheet as of June 28, 2008: increased the gross carrying value of capitalized software by $46 million; increased accumulated amortization for capitalized software by $36 million; reduced deferred tax liabilities by $14 million and increased accumulated other comprehensive income by $17 million. The Company did not believe that the prior period errors, individually or in the aggregate, are material to any previously issued annual or quarterly financial statements. In addition, the Company did not believe that the adjustments described above to correct the cumulative effect of the errors in the three months ended June 28, 2008 are material to the three months ended June 28, 2008 or to the full year results for 2008. As a result, the Company did not restate its previously issued annual financial statements or interim financial data.

Inventory

Inventory
	6 Months Ended Jul. 04, 2009 USD / shares
Inventory [Abstract]
Inventory	3Inventories Inventories are classified as follows (in thousands): July 4, 2009 December 31, 2008 Raw materials $ 59,212 $ 59,957 Work in progress 15,753 12,899 Finished goods 121,351 100,195 Total inventories $ 196,316 $ 173,051

Acquisitions

Acquisitions
	6 Months Ended Jul. 04, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions	4 Acquisitions Effective January1, 2009, the Company implemented SFAS No. 141(R), Business Combinations. This standard requires an acquiring company to measure all assets acquired and liabilities assumed, including contingent considerations and all contractual contingencies, at fair value as of the acquisition date. In addition, an acquiring company is required to capitalize in-process research and development (IPRD) and either amortize it over the life of the product or write it off if the project is abandoned or impaired. SFASNo. 141(R) is applicable to acquisitions completed after January1, 2009. SFAS No.141(R) amended SFAS No.109, Accounting for Income Taxes, and Financial Accounting Standards Board (FASB) Interpretation No.48, Accounting for Uncertainty in Income Taxes an Interpretation of FASB Statement No. 109 (FIN 48). Previously, SFASNo. 109 and FIN48, respectively, generally required post-acquisition adjustments related to business combination deferred tax asset valuation allowances and liabilities for uncertain tax positions to be recorded as an increase or decrease to goodwill. SFASNo. 141(R) does not permit this accounting and generally requires any such changes to be recorded in current period income tax expense. Thus, all changes to valuation allowances and liabilities for uncertain tax positions established in acquisition accounting, whether the business combination was accounted for under SFASNo. 141 or SFASNo. 141(R), will be recognized in current period income tax expense. In February 2009, the Company acquired all of the remaining outstanding capital stock of Thar Instruments, Inc. (Thar), a privately held global leader in the design, development and manufacture of analytical and preparative supercritical fluid chromatography and supercritical fluid extraction (SFC) systems, for $36 million in cash, including the assumption of $4 million of debt. Thar was acquired to add the environmentally-friendly SFC technology to the Companys product line and to leverage the Companys distribution channels. The Company had previously made a $4 million equity investment in Thar in June 2007. Immediately prior to the acquisition date, the Company remeasured the fair value of its original equity investment in Thar, resulting in an acquisition date fair value of $4 million. Thus, there was no gain or loss recognized in the statement operations as a result of remeasuring the Companys equity interest in Thar to fair value prior to the business combination. The acquisition of Thar was accounted for under SFAS No. 141(R) and the results of Thar have been included in the consolidated results of the Company from the acquisition date. The purchase price of the acquisition was allocated to tangible and intangible assets and assumed liabilities based on their estimated fair values. The Company has allocated $24 million of the purchase price to intangible assets comprised of customer relationships, non-compete agreements, acquired technology, IPRD and other purchased intangibles. The Company is amortizing the customer relationships and acquired technology over 15 years. The non-compete agreements and other purchased intangibles a

Goodwill and Other Intangibles

Goodwill and Other Intangibles
	6 Months Ended Jul. 04, 2009 USD / shares
Goodwill and Other Intangibles [Abstract]
Goodwill and Other Intangibles	5Goodwill and Other Intangibles The carrying amount of goodwill was $292 million and $268million at July 4, 2009 and December 31, 2008, respectively. The increase is primarily due to the Companys acquisition of Thar, which increased goodwill by $22 million (Note 4). Currency translation adjustments increased goodwill by $2 million. The Companys intangible assets included in the consolidated balance sheets are detailed as follows (in thousands): July4, 2009 December31, 2008 Gross Carrying Amount Accumulated Amortization Weighted- Average Amortization Period Gross Carrying Amount Accumulated Amortization Weighted- Average Amortization Period Purchased intangibles $ 136,053 $ 56,144 10years $ 113,526 $ 51,662 10years Capitalized software 198,518 114,604 4years 184,434 109,876 4years Licenses 9,619 7,885 9years 9,345 7,235 9years Patents and other intangibles 23,090 11,240 8years 20,918 9,798 8years Total $ 367,280 $ 189,873 7years $ 328,223 $ 178,571 7years During the six months ended July 4, 2009, the Company acquired $24 million of purchased intangibles as a result of the acquisition of Thar. In addition, the gross carrying value of intangible assets and accumulated amortization for intangible assets decreased by $1 million and less than $1 million, respectively, in the six months ended July 4, 2009 due to the effect of foreign currency translation. For the three months ended July 4, 2009 and June28, 2008, amortization expense for intangible assets was $7 million and $17million, respectively. For the six months ended July 4, 2009 and June28, 2008, amortization expense for intangible assets was $13 million and $23million, respectively. Included in amortization expense for both the three and six months ended June 28, 2008 is a $9 million out-of-period adjustment related to capitalized software. Amortization expense for intangible assets is estimated to be approximately $30million for each of the next five years. In April 2008, the FASB issued FASB Staff Position (FSP) No. 142-3, Determination of the Useful Life of Intangible Assets. This FSP amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, Goodwill and Other Intangible Assets. The objective of this FSP is to improve the consistency between the useful life of a recognized intangible asset under SFAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141(R) and other U.S. GAAP. This FSP applies to all intangible assets, whether acquired in a business combination or otherwise, and was effective for financial statements issued for fiscal years beginning after December 15, 2008 and interim periods within those fiscal years and is applied prospective

Debt

Debt
	6 Months Ended Jul. 04, 2009 USD / shares
Debt [Abstract]
Debt	6Debt In January 2007, the Company entered into a credit agreement (the 2007 Credit Agreement) that provides for a $500 million term loan facility and $600 million in revolving facilities, which include both a letter of credit and a swingline subfacility. The 2007 Credit Agreement matures on January 11, 2012 and requires no scheduled prepayments before that date. The outstanding portions of the revolving facilities have been classified as short-term liabilities in the consolidated balance sheets due to the fact that the Company utilizes the revolving line of credit to fund its working capital needs. It is the Companys intention to pay the outstanding revolving line of credit balance during the subsequent twelve months following the respective period end date. The interest rates applicable to the 2007 Credit Agreement are, at the Companys option, equal to either the base rate (which is the higher of the prime rate or the federal funds rate plus 1/2%) or the applicable 1, 2, 3, 6, 9 or 12 month LIBOR rate, in each case plus a credit margin based upon the Companys leverage ratio, which can range between 33 basis points and 72.5 basis points for LIBOR rate loans and range between zero basis points and 37.5 basis points for base rate loans. The 2007 Credit Agreement requires that the Company comply with an interest coverage ratio test of not less than 3.50:1 and a leverage ratio test of not more than 3.25:1 for any period of four consecutive fiscal quarters, respectively. In addition, the 2007 Credit Agreement includes negative covenants that are customary for investment grade credit facilities. The 2007 Credit Agreement also contains certain customary representations and warranties, affirmative covenants and events of default. As of July 4, 2009, the Company was in compliance with all such covenants. At July 4, 2009 and December 31, 2008, the Company had a total of $595 million and $500 million, respectively, borrowed under the 2007 Credit Agreement, of which $500 million was classified as long-term debt in the consolidated balance sheets at both dates. As of July 4, 2009 and December 31, 2008, the Company had a total amount available to borrow of $504 million and $599 million, respectively, after outstanding letters of credit. The weighted-average interest rates applicable to these borrowings were 0.78% and 2.43% at July 4, 2009 and December 31, 2008, respectively. The Company, and its foreign subsidiaries, also had available short-term lines of credit totaling $87 million and $88 million at July 4, 2009 and December 31, 2008, respectively. At July 4, 2009 and December 31, 2008, the related short-term borrowings were $36 million at a weighted-average interest rate of 2.15% and $36 million at a weighted average interest rate of 2.18%, respectively.

Income Taxes

Income Taxes
	6 Months Ended Jul. 04, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	7Income Taxes The Companys effective tax rates for the three months ended July 4, 2009 and June 28, 2008 were an income tax provision of 17.4% and an income tax benefit of 1.2%, respectively. The Companys effective tax rates for the six months ended July 4, 2009 and June 28, 2008 were an income tax provision of 14.7% and 8.8%, respectively. Included in the effective tax rates for the three and six months ended June 28, 2008 is a $16 million benefit resulting from the out-of-period adjustments related to software capitalization amortization. The out-of-period adjustments had the effect of reducing the Companys effective tax rate by 18.1 percentage points and 8.9 percentage points in the three and six months ended June 28, 2008, respectively. In addition, the income tax provision for the six months ended July 4, 2009 included approximately $5 million of tax benefit associated with the reversal of a $5 million tax provision, recorded in the three months ended September 27, 2008, related to the reorganization of certain foreign legal entities. The recognition of this tax benefit was a result of changes in income tax regulations promulgated by the U.S. Treasury in February 2009. This $5 million tax benefit decreased the Companys effective tax rate by 2.7 percentage points for the six months ended July 4, 2009. After consideration of these items, the remaining changes in the effective tax rates for the three and six months ended July 4, 2009 as compared to the three and six months ended June 28, 2008 are primarily attributable to changes in income in jurisdictions with different effective tax rates. The Company accounts for its uncertain tax return reporting positions in accordance with FIN 48. FIN 48 requires financial statement reporting of the expected future tax consequences of uncertain tax return reporting positions on the presumption that all relevant tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but it prohibits any discounting of any of the related tax effects for the time value of money. The following is a summary of the activity of the Companys unrecognized tax benefits for the six months ended July 4, 2009 and June 28, 2008 (in thousands): July 4, 2009 June 28, 2008 Balance at the beginning of the period $ 77,295 $ 68,463 Change in tax positions of the current year (2,283) 2,111 Balance at the end of the period $ 75,012 $ 70,574 For the six months ended July 4, 2009, the Company recorded approximately $5 million of tax benefit associated with the reversal of a $5 million tax provision, recorded in the three months ended September 27, 2008, related to the reorganization of certain foreign legal entities and an increase of approximately $3 million in other unrecognized tax benefits. If all of the Companys unrecognized tax benefits accrued as of July 4, 2009 were to become recognizable in the future, the Company would record a total reduction of approximately $74 million in the income tax provision. As of July 4, 2009, however, the Company is not able to e

Patent Litigation

Patent Litigation
	6 Months Ended Jul. 04, 2009 USD / shares
Patent Litigation [Abstract]
Patent Litigation	8Litigation The Company is involved in various litigation matters arising in the ordinary course of business. The Company believes the outcome, if the plaintiff ultimately prevails, will not have a material impact on the Companys financial position. The Company has been engaged in ongoing patent litigation with Agilent Technologies GmbH in France and Germany. In January 2009, the French appeals court affirmed that the Company had infringed the Agilent Technologies GmbH patent and a judgment was issued against the Company. The Company has appealed this judgment. In 2008, the Company recorded a $7 million provision and in the first quarter of 2009 the Company has made a payment of $6 million for damages and fees estimated to be incurred in connection with the French litigation case. No provision has been made for the German patent litigation and the Company believes the outcome, if the plaintiff ultimately prevails, will not have a material impact on the Companys financial position.

Stock-based Compensation

Stock-based Compensation
	6 Months Ended Jul. 04, 2009 USD / shares
Stock-based Compensation [Abstract]
Stock-based Compensation	9Stock-Based Compensation The Company maintains various shareholder-approved stock-based compensation plans which allow for the issuance of incentive or non-qualified stock options, stock appreciation rights, restricted stock or other types of awards (e.g. restricted stock units). The Company accounts for stock-based compensation costs in accordance with SFASNo.123(R), Share-Based Payment, and SEC Staff Accounting Bulletin (SAB) No.107, Share-Based Payment. These standards require that all share-based payments to employees be recognized in the statements of operations based on their fair values. The stock-based compensation expense recognized in the consolidated statements of operations is based on awards that ultimately are expected to vest; therefore, the amount of expense has been reduced for estimated forfeitures. SFASNo.123(R) requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience. If actual results differ significantly from these estimates, stock-based compensation expense and the Companys results of operations could be materially impacted. In addition, if the Company employs different assumptions in the application of SFASNo.123(R), the compensation expense that the Company records in the future periods may differ significantly from what the Company has recorded in the current period. The consolidated statements of operations for the three and six months ended July 4, 2009 and June 28, 2008 include the following stock-based compensation expense related to stock option awards, restricted stock, restricted stock unit awards and the employee stock purchase plan (in thousands): Three Months Ended Six Months Ended July 4, 2009 June 28, 2008 July 4, 2009 June 28, 2008 Cost of sales $ 707 $ 631 $ 1,435 $ 1,538 Selling and administrative expenses 5,491 6,100 11,525 11,639 Research and development expenses 960 1,325 1,546 2,332 Total stock-based compensation $ 7,158 $ 8,056 $ 14,506 $ 15,509 Stock Options In determining the fair value of the stock options, the Company makes a variety of assumptions and estimates, including volatility measures, expected yields and expected stock option lives. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model. The Company uses implied volatility on its publicly traded options as the basis for its estimate of expected volatility. The Company believes that implied volatility is the most appropriate indicator of expected volatility because it is generally reflective of historical volatility and expectations of how future volatility will differ from historical volatility. The expected life assumption for grants is based on historical experience for the population of non-qualified stock optionees. The risk-free interest rate is the yield currently available on U.S.

Earnings Per Share

Earnings Per Share
	6 Months Ended Jul. 04, 2009 USD / shares
Earnings Per Share Footnote [Abstract]
Earnings Per Share	10Earnings Per Share Basic and diluted earnings per share (EPS) calculations are detailed as follows (in thousands, except per share data): Three Months Ended July 4, 2009 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share $ 69,907 96,147 $ 0.73 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding 834 Exercised and cancellations 15 Net income per diluted common share $ 69,907 96,996 $ 0.72 Three Months Ended June 28, 2008 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share $ 83,148 99,586 $ 0.83 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding 1,424 Exercised and cancellations 25 Net income per diluted common share $ 83,148 101,035 $ 0.82 Six Months Ended July 4, 2009 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share $ 143,254 96,696 $ 1.48 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding 624 Exercised and cancellations 68 Net income per diluted common share $ 143,254 97,388 $ 1.47 Six Months Ended June 28, 2008 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share 151,623 99,981 $ 1.52 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding 1,463 Exercised and cancellations 87 Net income per diluted common share 151,623 101,531 $ 1.49 For the three and six months ended July 4, 2009, the Company had 3.3million and 3.9 million stock option securities that were antidilutive, respectively, due to having higher exercise prices than the average price during the period. For both the three and six months ended June 28, 2008, the Company had 1.3million stock option securities that were antidilutive due to having higher exercise prices than the average price during the period. These securities were not included in the computation of diluted EPS. The effect of dilutive securities was calculated using the treasury stock method.

Comprehensive Income

Comprehensive Income
	6 Months Ended Jul. 04, 2009 USD / shares
Comprehensive Income [Abstract]
Comprehensive Income	11Comprehensive Income Comprehensive income is detailed as follows (in thousands): Three Months Ended Six Months Ended July 4, 2009 June 28, 2008 July 4, 2009 June 28, 2008 Net income $ 69,907 $ 83,148 $ 143,254 $ 151,623 Foreign currency translation 29,252 14,560 15,956 29,621 Net appreciation (depreciation) and realized gains (losses) on derivative instruments 654 1,913 1,877 (612) Income tax (expense) benefit (229) (670) (657) 214 Net appreciation (depreciation) and realized gains (losses) on derivative instruments, net of tax 425 1,243 1,220 (398) Net foreign currency adjustments 29,677 15,803 17,176 29,223 Unrealized gains (losses) on investments before income taxes 6 (110) (32) (84) Income tax (expense) benefit (2) 38 11 29 Unrealized gains (losses) on investments, net of tax 4 (72) (21) (55) Retirement liability adjustment, net of tax 175 - 341 - Other comprehensive income 29,856 15,731 17,496 29,168 Comprehensive income $ 99,763 $ 98,879 $ 160,750 $ 180,791

Retirement Plans

Retirement Plans
	6 Months Ended Jul. 04, 2009 USD / shares
Retirement Plans [Abstract]
Retirement Plans	12Retirement Plans The Company sponsors various retirement plans. The summary of the components of net periodic pension costs for the plans for the three and six months ended July 4, 2009 and June 28, 2008 is as follows (in thousands): Three Months Ended July 4, 2009 June 28, 2008 U.S. Pension Plans U.S. Retirement Healthcare Plan Non-U.S. Pension Plans U.S. Pension Plans U.S. Retirement Healthcare Plan Non-U.S. Pension Plans Service cost $ 23 $ 58 $ 424 $ 31 $ 53 $ 374 Interest cost 1,544 96 210 1,481 83 227 Expected return on plan assets (1,678) (37) (83) (1,528) (39) (114) Net amortization: Prior service costs (credits) 37 (14) 38 (14) Net actuarial (gain) loss 98 3 12 33 (7) Net periodic pension cost $ 24 $ 106 $ 563 $ 55 $ 83 $ 480 Six Months Ended July 4, 2009 June 28, 2008 U.S. Pension Plans U.S. Retirement Healthcare Plan Non-U.S. Pension Plans U.S. Pension Plans U.S. Retirement Healthcare Plan Non-U.S. Pension Plans Service cost $ 46 $ 116 $ 848 $ 62 $ 106 $ 748 Interest cost 3,088 192 420 2,962 166 454 Expected return on plan assets (3,356) (74) (166) (3,056) (78) (228) Net amortization: Prior service costs (credits) 74 (28) 76 (28) Net actuarial (gain) loss 196 6 24 66 (14) Net periodic pension cost $ 48 $ 212 $ 1,126 $ 110 $ 166 $ 960 For the three and six months ended July 4, 2009, the Company contributed $3 million and $6 million, respectively, to the U.S. Pension Plans. During fiscal year 2009, the Company expects to contribute a total of approximately $7 million to $11 million to the defined benefit plans.

Business Segment Information

Business Segment Information
	6 Months Ended Jul. 04, 2009 USD / shares
Business Segment Information [Abstract]
Business Segment Information	13Business Segment Information The Companys business activities, for which discrete financial information is available, are regularly reviewed and evaluated by the chief operating decision makers. As a result of this evaluation, the Company determined that it has two operating segments: Waters Division and TA Division. Waters Division is in the business of designing, manufacturing, distributing and servicing LC and MS instruments, columns and other chemistry consumables that can be integrated and used along with other analytical instruments. TA Division is in the business of designing, manufacturing, distributing and servicing thermal analysis, rheometry and calorimetry instruments. The Companys two divisions are its operating segments and each has similar economic characteristics; product processes; products and services; types and classes of customers; methods of distribution and regulatory environments. Because of these similarities, the two segments have been aggregated into one reporting segment for financial statement purposes. Please refer to the consolidated financial statements for financial information regarding the one reportable segment of the Company. Net sales for the Companys products and services are as follows for the three and six months ended July 4, 2009 and June 28, 2008 (in thousands): Three Months Ended Six Months Ended July 4, 2009 June 28, 2008 July 4, 2009 June 28, 2008 Product net sales Waters instrument systems $ 170,959 $ 195,422 $ 313,770 $ 376,773 Chemistry 59,160 63,275 118,372 122,539 TA instrument systems 23,402 28,424 48,827 58,274 Total product net sales 253,521 287,121 480,969 557,586 Service net sales Waters service 100,453 102,032 197,509 196,065 TA service 8,863 9,618 17,411 16,832 Total service net sales 109,316 111,650 214,920 212,897 Total net sales $ 362,837 $ 398,771 $ 695,889 $ 770,483

Recent Accounting Standards Cha

Recent Accounting Standards Changes and Developments
	6 Months Ended Jul. 04, 2009 USD / shares
Recent Accounting Standards Changes and Developments [Abstract]
Recent Accounting Standards Changes and Developments	14Recent Accounting Standards Changes and Developments Effective this quarter, the Company implemented SFAS No.165, Subsequent Events. This standard establishes general standards of accounting for and disclosure of events that occur after the balance sheet date, but before financial statements are issued. The adoption of SFAS No.165 did not impact the Companys financial position or results of operations. The Company evaluated all events or transactions that occurred after July 4, 2009 up through August 7, 2009, the date the Company issued these financial statements. During this period, the Company did not have any material recognizable subsequent events. In December 2008, the FASB issued FSP No. 132(R)-1, Employers Disclosures about Postretirement Benefit Plan Assets. This FSP amends the standard to provide guidance on employers disclosures about plan assets of a defined benefit pension or other postretirement plan. This FSP is effective for financial statements issued for fiscal years ending after December 15, 2009. The provisions of this FSP are not required for earlier periods presented and early adoption is permitted. The Company is in the process of evaluating whether the adoption of this standard will have a material effect on its financial position, results of operations or cash flows. In April 2009, the FASB issued FSPFAS 157-4, Determining Whether a Market Is Not Active and a Transaction Is Not Distressed. FSP FAS157-4 provides guidelines for making fair value measurements more consistent with the principles presented in SFAS157. FSP FAS157-4 provides additional authoritative guidance in determining whether a market is active or inactive, and whether a transaction is distressed, is applicable to all assets and liabilities (i.e. financial and non-financial) and will require enhanced disclosures. This standard was effective for periods ending after June15, 2009. The adoption of this standard did not have a material effect on the Companys financial position, results of operations or cash flows. In April 2009, the FASB issued FSP FAS115-2, FSP FAS124-2 and EITF99-20-2, Recognition and Presentation of Other-Than-Temporary Impairments. FSP FAS115-2, FAS124-2 and EITF99-20-2 provide additional guidance to provide greater clarity about the credit and noncredit component of an other-than-temporary impairment event and to more effectively communicate when an other-than-temporary impairment event has occurred. This FSP applies to debt securities. This standard was effective for periods ending after June15, 2009. The adoption of this standard did not have a material effect on the Companys financial position, results of operations or cash flows. In April 2009, the FASB issued FSP FAS107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments. FSP FAS107-1 and APB 28-1 amend SFAS No.107, Disclosures about Fair Value of Financial Instruments, to require disclosures about fair value of financial instruments in interim as well as in annual financial statements. This FSP also amends APB Opinion No.28, Interim Financial Reporting, to require those disclosures in all interim financial statements. This st

Document Information

Document Information
	6 Months Ended Jul. 04, 2009 USD / shares
Document Information
Document Type	10-Q
Amendment Flag	false
Amendment Description	Not Applicable
Document Period End Date	2009-07-04

Entity Information

Entity Information (USD $)
	6 Months Ended Jul. 04, 2009	Jul. 31, 2009
Entity Information
Entity Registrant Name	Waters Corporation
Entity Central Index Key	0001000697
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$4,680,348,128
Entity Listings
Entity Common Stock, Shares Outstanding		95,518,481