Waters (WAT) 10-K 26 Feb 10 2009 FY Annual report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$341,111	$428,522
Short-term investments	289,146	0
Accounts receivable, less allowances for doubtful accounts and sales returns of $6,723 and $7,608 at December 31, 2009 and December 31, 2008, respectively	314,247	291,763
Inventories	178,666	173,051
Other current assets	49,206	62,966
Total current assets	1,172,376	956,302
Property, plant and equipment, net	210,926	171,588
Intangible assets, net	182,165	149,652
Goodwill	293,077	268,364
Other assets	49,387	76,992
Total assets	1,907,931	1,622,898
Current liabilities:
Notes payable and debt	131,772	36,120
Accounts payable	49,573	47,240
Accrued employee compensation	37,050	43,535
Deferred revenue and customer advances	94,680	87,492
Accrued income taxes	13,267	0
Accrued warranty	10,109	10,276
Other current liabilities	58,117	64,843
Total current liabilities	394,568	289,506
Long-term liabilities:
Long-term debt	500,000	500,000
Long-term portion of retirement benefits	69,044	77,017
Long-term income tax liability	72,604	80,310
Other long-term liabilities	22,766	15,060
Total long-term liabilities	664,414	672,387
Total liabilities	1,058,982	961,893
Stockholders' equity:
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none issued at December 31, 2009 and December 31, 2008	0	0
Common stock, par value $0.01 per share, 400,000 shares authorized, 148,831 and 148,069 shares issued, 94,118 and 97,891 shares outstanding at December 31, 2009 and December 31, 2008, respectively	1,488	1,481
Additional paid-in capital	808,345	756,499
Retained earnings	2,236,716	1,913,403
Treasury stock, at cost, 54,713 and 50,178 shares at December 31, 2009 and December 31, 2008, respectively	(2,213,174)	(2,001,797)
Accumulated other comprehensive income (loss)	15,574	(8,581)
Total stockholders' equity	848,949	661,005
Total liabilities and stockholders' equity	$1,907,931	$1,622,898

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) (USD $)
In Thousands, except Per Share data	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Allowances for doubtful accounts and sales returns	$6,723	$7,608
Stockholders' equity:
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	148,831	148,069
Common stock, shares outstanding	94,118	97,891
Treasury stock, shares	54,713	50,178

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Product sales	$1,051,978	$1,139,886	$1,087,592
Service sales	446,722	435,238	385,456
Total net sales	1,498,700	1,575,124	1,473,048
Cost of product sales	406,681	457,886	441,877
Cost of service sales	188,201	203,380	189,245
Total cost of sales	594,882	661,266	631,122
Gross profit	903,818	913,858	841,926
Selling and administrative expenses	421,403	426,699	403,703
Research and development expenses	77,154	81,588	80,649
Purchased intangibles amortization	10,659	9,290	8,695
Litigation provisions (Note 10)	0	6,527	0
Operating income	394,602	389,754	348,879
Interest expense	(10,986)	(38,521)	(56,515)
Interest income	3,036	20,959	30,828
Income from operations before income taxes	386,652	372,192	323,192
Provision for income taxes	63,339	49,713	55,120
Net income	$323,313	$322,479	$268,072
Net income per basic common share	3.37	3.25	2.67
Weighted-average number of basic common shares	95,797	99,199	100,500
Net income per diluted common share	3.34	3.21	2.62
Weighted-average number of diluted common shares and equivalents	96,862	100,555	102,505

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity and Comprehensive Income (USD $)
In Thousands	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Common Stock [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total
Shares, Issued, Beginning Balance at Dec. 31, 2006			144,092
Stockholders' equity, beginning balance at Dec. 31, 2006	$554,169	$43,665	$1,441	($1,563,649)	$1,326,757	$362,383
Net income					268,072	268,072
Other comprehensive income (loss), foreign currency translation		26,276				26,276
Other comprehensive income (loss), net appreciation (depreciation) and realized gains (losses) on derivative instruments, net of tax		(11,720)				(11,720)
Other comprehensive income (loss), changes in pension and postretirement benefits, net of tax		8,852				8,852
Other comprehensive income (loss), unrealized losses on investments, net		(841)				(841)
Other comprehensive income (loss)		22,567				22,567
Issuance of common stock for employees, stock purchase plan	2,883		1			2,884
Issuance of common stock for employees, stock purchase plan, shares			61
Issuance of common stock for employees, stock options exercised	88,515		28			88,543
Issuance of common stock for employees, stock options exercised, shares			2,844
Tax benefit related to stock option plans	16,999					16,999
Adoption of FIN 48					(3,905)	(3,905)
Treasury stock				(200,648)		(200,648)
Stock-based compensation	29,180	0	1	0	0	29,181
Stock-based compensation, shares			64
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, ending balance at Dec. 31, 2007	691,746	66,232	1,471	(1,764,297)	1,590,924	586,076
Shares, Issued, Ending Balance at Dec. 31, 2007			147,061
Net income					322,479	322,479
Other comprehensive income (loss), foreign currency translation		(53,704)				(53,704)
Other comprehensive income (loss), net appreciation (depreciation) and realized gains (losses) on derivative instruments, net of tax		(519)				(519)
Other comprehensive income (loss), changes in pension and postretirement benefits, net of tax		(20,466)				(20,466)
Other comprehensive income (loss), unrealized losses on investments, net		(124)				(124)
Other comprehensive income (loss)		(74,813)				(74,813)
Issuance of common stock for employees, stock purchase plan	3,409		1			3,410
Issuance of common stock for employees, stock purchase plan, shares			61
Issuance of common stock for employees, stock options exercised	25,228		8			25,236
Issuance of common stock for employees, stock options exercised, shares			825
Tax benefit related to stock option plans	6,669					6,669
Increase in valuation allowance	(1,732)					(1,732)
Treasury stock				(237,500)		(237,500)
Stock-based compensation	31,179	0	1	0	0	31,180
Stock-based compensation, shares			122
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, ending balance at Dec. 31, 2008	756,499	(8,581)	1,481	(2,001,797)	1,913,403	661,005
Shares, Issued, Ending Balance at Dec. 31, 2008			148,069
Net income					323,313	323,313
Other comprehensive income (loss), foreign currency translation		19,405				19,405
Other comprehensive income (loss), net appreciation (depreciation) and realized gains (losses) on derivative instruments, net of tax		1,798				1,798
Other comprehensive income (loss), changes in pension and postretirement benefits, net of tax		2,977				2,977
Other comprehensive income (loss), unrealized losses on investments, net		(25)				(25)
Other comprehensive income (loss)		24,155				24,155
Issuance of common stock for employees, stock purchase plan	3,243		1			3,244
Issuance of common stock for employees, stock purchase plan, shares			88
Issuance of common stock for employees, stock options exercised	15,850		5			15,855
Issuance of common stock for employees, stock options exercised, shares			514
Tax benefit related to stock option plans	5,083					5,083
Increase in valuation allowance	(705)					(705)
Treasury stock				(211,377)		(211,377)
Stock-based compensation	28,375	0	1	0	0	28,376
Stock-based compensation, shares			160
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, ending balance at Dec. 31, 2009	$808,345	$15,574	$1,488	($2,213,174)	$2,236,716	$848,949
Shares, Issued, Ending Balance at Dec. 31, 2009			148,831

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net income	$323,313	$322,479	$268,072
Adjustments to reconcile net income to net cash provided by operating activities:
Provisions for doubtful accounts on accounts receivable	3,124	3,924	1,382
Provisions on inventory	9,952	10,632	6,024
Stock-based compensation	28,255	30,782	28,855
Deferred income taxes	36,276	(19,626)	5,946
Depreciation	31,805	29,071	27,467
Amortization of intangibles	25,467	36,200	25,850
Change in operating assets and liabilities, net of acquisitions:
(Increase) decrease in accounts receivable	(16,905)	21,739	(26,266)
Increase in inventories	(6,823)	(20,618)	(6,368)
Decrease (increase) in other current assets	5,925	(4,633)	(3,032)
(Increase) decrease in other assets	(689)	5,180	(6,600)
(Decrease) increase in accounts payable and other current liabilities	(10,830)	(19,970)	32,309
Increase in deferred revenue and customer advances	2,613	1,976	6,244
(Decrease) increase in other liabilities	(13,220)	21,112	10,624
Net cash provided by operating activities	418,263	418,248	370,507
Cash flows from investing activities:
Additions to property, plant, equipment and software capitalization	(93,796)	(69,065)	(60,342)
Business acquisitions, net of cash acquired	(36,086)	(7,805)	(9,076)
Investment in unaffiliated company	0	0	(3,532)
Purchase of short-term investments	(518,390)	(19,738)	(390,542)
Maturity of short-term investments	229,244	115,419	294,861
Cash received from escrow related to business acquisition	0	0	724
Net cash (used in) provided by investing activities	(419,028)	18,811	(167,907)
Cash flows from financing activities:
Proceeds from debt issuances	184,309	469,407	1,131,834
Payments on debt	(92,556)	(817,463)	(1,151,119)
Payments of debt issuance costs	0	(501)	(1,081)
Proceeds from stock plans	19,099	28,646	91,427
Purchase of treasury shares	(211,377)	(237,500)	(200,648)
Excess tax benefit related to stock option plans	5,083	6,669	16,999
Proceeds (payments) of debt swaps and other derivative contracts	5,162	(22,196)	(7,098)
Net cash used in financing activities	(90,280)	(572,938)	(119,686)
Effect of exchange rate changes on cash and cash equivalents	3,634	(32,932)	253
(Decrease) increase in cash and cash equivalents	(87,411)	(168,811)	83,167
Cash and cash equivalents at beginning of period	428,522	597,333	514,166
Cash and cash equivalents at end of period	341,111	428,522	597,333
Supplemental cash flow information:
Income taxes paid	23,818	40,571	29,294
Interest paid	$13,020	$44,081	$49,224

Description of Business and Org

Description of Business and Organization
	12 Months Ended Dec. 31, 2009 USD / shares
Description of Business and Organization [Abstract]
Description of Business and Organization	1Description of Business and Organization Waters Corporation (Waters or the Company), an analytical instrument manufacturer, primarily designs, manufactures, sells and services, through its Waters Division, high performance liquid chromatography (HPLC), ultra performance liquid chromatography (UPLC and together with HPLC, 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), food safety analysis 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 primarily designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments, which are used in predicting the suitability of fine chemicals, 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.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	2Basis of Presentation and Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles (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. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, product returns and allowances, bad debts, inventory valuation, equity investments, goodwill and intangible assets, warranty and installation provisions, income taxes, contingencies, litigation, retirement plan obligations and stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts may differ from these estimates under different assumptions or conditions. Risks and Uncertainties The Company is subject to risks common to companies in the analytical instrument industry, including, but not limited to, global economic and financial market conditions, development by its competitors of new technological innovations, risk of disruption, fluctuations in foreign currency exchange rates, dependence on key personnel, protection and litigation of proprietary technology, compliance with regulations of the U.S.Food and Drug Administration and similar foreign regulatory authorities and agencies and changes in the fair value of the underlying assets of the Companys defined benefit plans. Reclassifications Certain amounts from prior years have been reclassified in the accompanying financial statements in order to be consistent with the current years classifications. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, most of which are wholly owned. The Company consolidates entities in which it owns or controls fifty percent or more of the voting shares. All material inter-company balances and transactions have been eliminated. Translation of Foreign Currencies For most of the Companys foreign operations, assets and liabilities are translated into U.S.dollars at exchange rates prevailing on the balance sheet date, while revenues and expenses are translated at average exchange rates prevailing during the period. Any resulting translation gains or losses are included in accumulated other comprehensive income in the consolidated balance sheets. The Companys net sales derived from operations outside the United States were 69% in 2009, 70% in 2008 and 68% in 2007. Gains and losses from foreign currency transactions are included in net income in the consolidated statements of operations and were not material for the years presented. Cash and Cash Equivalents Cash equivalents primarily represent highly liquid investments, with original maturities of generally 90days or less, in ban

Out-of-Period Adjustments

Out-of-Period Adjustments
	12 Months Ended Dec. 31, 2009 USD / shares
Out-of-Period Adjustments [Abstract]
Out-of-Period Adjustments	3 Out-of-Period Adjustments During 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 Companys 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 approximately 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 year ended December 31, 2008, the errors had the effect of reducing the Companys effective tax rate by 4.0 percentage points. 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, were 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 were 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
	12 Months Ended Dec. 31, 2009 USD / shares
Inventory [Abstract]
Inventory	4Inventories Inventories are classified as follows (in thousands): December 31, 2009 December 31, 2008 Raw materials.................................................................................................. $ 57,223 $ 59,957 Work in progress............................................................................................. 15,419 12,899 Finished goods................................................................................................. 106,024 100,195 Total inventories............................................................................................ $ 178,666 $ 173,051

Property, Plant and Equipment

Property, Plant and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	5Property, Plant and Equipment Property, plant and equipment consist of the following (in thousands): December31 2009 2008 Land and land improvements............................................................................................ $ 20,688 $ 9,735 Buildings and leasehold improvements.......................................................................... 159,071 123,278 Production and other equipment...................................................................................... 245,785 222,361 Construction in progress.................................................................................................... 12,347 16,693 Total property, plant and equipment............................................................................. 437,891 372,067 Less: accumulated depreciation and amortization........................................................ (226,965) (200,479) Property, plant and equipment, net................................................................................. $ 210,926 $ 171,588 During 2009, 2008 and 2007, the Company retired and disposed of approximately $7million, $9million and $4million of property, plant and equipment, respectively, most of which was fully depreciated and no longer in use. Gains and losses on disposal were immaterial.

Acquisitions

Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions	6Acquisitions Effective January1, 2009, the Company implemented the newly issued accounting standard for 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 IPRD and either amortize it over the life of the product or write it off if the project is abandoned or impaired. This accounting standard is applicable to acquisitions completed after January1, 2009. Previous standards 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. This new accounting standard 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 previous standards or under the newly issued accounting standard, 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 its 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 of 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 the newly issued accounting standard for business combinations 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 are being amortized over five years. These intangible assets are being amortized over a weighted-average period of 13years. Included in intangible assets is a trademark in the amo

Goodwill and Other Intangibles

Goodwill and Other Intangibles
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Intangibles [Abstract]
Goodwill and Other Intangibles	7Goodwill and Other Intangibles The carrying amount of goodwill was $293million, $268million and $273 million at December31, 2009, 2008 and 2007, respectively. The increase in goodwill in 2009 is primarily due to the Companys acquisition of Thar, which increased goodwill by $22 million (Note 6). In addition, currency translation adjustments increased goodwill by $3 million in 2009. The decrease in goodwill in 2008 is attributable to an $8 million decrease due to currency translation being partially offset by the $ 3 million of goodwill from the Companys acquisitions of VTI and APG. The Companys intangible assets included in the consolidated balance sheets are detailed as follows (in thousands): December31, 2009 December31, 2008 Gross Carrying Amount Accumulated Amortization Weighted- Average Amortization Period Gross Carrying Amount Accumulated Amortization Weighted- Average Amortization Period Purchased intangibles. $ 136,604 $ 61,751 10years $ 113,526 $ 51,662 10years Capitalized software... 217,102 122,920 5years 184,434 109,876 4years Licenses........................ 9,637 8,328 8years 9,345 7,235 9years Patents and other intangibles.................. 24,185 12,364 8years 20,918 9,798 8years Total............................... $ 387,528 $ 205,363 7years $ 328,223 $ 178,571 7years During the year ended December31, 2009, the Company acquired $24million of purchased intangibles as a result of the acquisition of Thar. During 2008, the gross carrying value of capitalized software and related accumulated amortization increased by $46 million and $36 million, respectively, primarily as a result of an out-of-period adjustment (Note 3). During the year ended December 31, 2008, the Company acquired $4 million of purchased intangibles as a result of the acquisitions of VTI and APG. In addition, the gross carrying value of intangible assets increased by $4 million in 2009 and decreased by $25million in 2008 due to the effect of foreign currency translation. The gross carrying value of accumulated amortization for intangible assets increased by $3 million in 2009 and decreased by $17million in 2008 due to the effect of foreign currency translation. For the years ended December31, 2009, 2008 and 2007, amortization expense for intangible assets was $25million, $36million and $26million, respectively. Included in amortization expense for the year ended December 31, 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.

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Debt [Abstract]
Debt	8Debt In February 2010, the Company issued and sold five-year senior unsecured notes at an interest rate of 3.75% with a face value of $100 million. This debt matures in February 2015. The Company plans to use the proceeds from the issuance of these senior unsecured notes to repay other outstanding debt amounts and for general corporate purposes. Interest on both issuances of the senior unsecured notes are payable semi-annually in February and August of each year. The Company may redeem some or all of the notes at any time in an amount not less than 10% of the aggregate principal amount outstanding, plus accrued and unpaid interest, plus the applicable make-whole amount. These notes require 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 3.50:1 for any period of four consecutive fiscal quarters, respectively. In addition, these notes include negative covenants that are similar to the existing credit agreement. These notes also contain certain customary representations and warranties, affirmative covenants and events of default. In March 2008, the Company entered into a new credit agreement (the 2008 Credit Agreement) that provided for a $150 million term loan facility. 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. Both credit agreements were to mature on January 11, 2012 and required or require 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. In October 2008, the Company utilized cash balances associated with the effective liquidation of certain foreign legal entities into the U.S. to voluntarily prepay the $150 million term loan under the 2008 Credit Agreement. The Company prepaid the term loan in order to reduce interest expense and there was no penalty for prepaying the term loan. The repayment of the term loan effectively terminated all lending arrangements under the 2008 Credit Agreement. 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 an interest rate 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

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	9Income Taxes Income tax data for the years ended December31, 2009, 2008 and 2007 is as follows (in thousands): Year Ended December31 2009 2008 2007 The components of income from operations before income taxes are as follows: Domestic............................................................................................................. $ 64,942 $ (6,728) $ 1,638 Foreign................................................................................................................ 321,710 378,920 321,554 Total................................................................................................................... $ 386,652 $ 372,192 $ 323,192 Year Ended December31 2009 2008 2007 The current and deferred components of the provision for income taxes on operations are as follows: Current................................................................................................................ $ 59,472 $ 64,837 $ 62,126 Deferred.............................................................................................................. 3,867 (15,124) (7,006) Total................................................................................................................... $ 63,339 $ 49,713 $ 55,120 The jurisdictional components of the provision for income taxes on operations are as follows: Federal............................................................................................................... $ 24,080 $ 1,687 $ 10,239 State.................................................................................................................... 3,757 2,422 1,700 Foreign............................................................................................................... 35,502 45,604 43,181 Total................................................................................................................... $ 63,339 $ 49,713 $ 55,120 The differences between income taxes computed at the United States statutory rate and the provision for income taxes are summarized as follows: Federal tax computed at U.S.statutory income tax rate............................. $ 135,328 $ 130,267 $ 113,117 State income tax, net of federal income tax benefit................................... 2,442 1,575 1,105 Net effect of foreign operations..................................................................... (73,351) (82,200) (59,395) Other, net........................................................................................................... (1,080) 71 293 Provision for income taxes............................................................................. $ 63,339 $ 49,713 $ 55,120 December31 2009 2008 The tax effects of temporary differences and carryforwards which give rise to deferred tax assets and deferred tax (liabilities)

Litigation

Litigation
	12 Months Ended Dec. 31, 2009 USD / shares
Litigation [Abstract]
Litigation	10Litigation 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 made a payment of $6 million for damages and fees estimated to be incurred in connection with the French litigation case. The accrued patent litigation expense is in other current liabilities in the consolidated balance sheets at December31, 2009 and 2008. 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.

Other Commitments and Contingen

Other Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Other Commitments and Contingencies [Abstract]
Other Commitments and Contingencies	11Other Commitments and Contingencies Lease agreements, expiring at various dates through 2026, cover buildings, office equipment and automobiles. Rental expense was $34 million, $30 million and $23 million during the years ended December31, 2009, 2008 and 2007, respectively. Future minimum rents payable as of December31, 2009 under non-cancelable leases with initial terms exceeding one year are as follows (in thousands): 2010................................................................................................................................................. $ 24,039 2011................................................................................................................................................. 19,031 2012................................................................................................................................................. 14,259 2013................................................................................................................................................. 8,934 2014 and thereafter....................................................................................................................... 17,705 The Company licenses certain technology and software from third parties, which expire at various dates through 2010. Fees paid for licenses were less than $1million for each of the years ended December31, 2009, 2008 and 2007. Future minimum license fees payable under existing license agreements as of December31, 2009 are immaterial for the years ended December31, 2010 and thereafter. From time to time, the Company and its subsidiaries are involved in various litigation matters arising in the ordinary course of business. The Company believes it has meritorious arguments in its current litigation matters and any outcome, either individually or in the aggregate, will not be material to the Companys financial position or results of operations. The Company enters into standard indemnification agreements in its ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Companys business partners or customers, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to its current products, as well as claims relating to property damage or personal injury resulting from the performance of services by the Company or its subcontractors. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Historically, the Companys costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and management accordingly believes the estimated fair value of these agreements is immaterial.

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation [Abstract]
Stock-based Compensation	12Stock-Based Compensation In May2003, the Companys shareholders approved the Companys 2003 Equity Incentive Plan (2003 Plan). As of December31, 2009, the 2003 Plan has 3.0million shares available for granting in the form of incentive or non-qualified stock options, stock appreciation rights (SARs), restricted stock, restricted stock units or other types of awards. The Company issues new shares of common stock upon exercise of stock options or restricted stock unit conversion. Under the 2003 Plan, the exercise price for stock options may not be less than the fair market value of the underlying stock at the date of grant. The 2003 Plan is scheduled to terminate on March4, 2013. Options generally will expire no later than 10years after the date on which they are granted and will become exercisable as directed by the Compensation Committee of the Board of Directors and generally vest in equal annual installments over a five-year period. A SAR may be granted alone or in conjunction with an option or other award. Shares of restricted stock and restricted stock units may be issued under the 2003 Plan for such consideration as is determined by the Compensation Committee of the Board of Directors. No award of restricted stock may have a restriction period of less than three years except as may be recommended by the Compensation Committee of the Board of Directors, or with respect to any award of restricted stock which provides solely for a performance-based risk of forfeiture so long as such award has a restriction period of at least one year. As of December31, 2009, the Company had stock options, restricted stock and restricted stock unit awards outstanding. In February2009, the Company adopted its 2009 Employee Stock Purchase Plan under which eligible employees may contribute up to 15% of their earnings toward the quarterly purchase of the Companys common stock. The plan makes available 0.9million shares of the Companys common stock, which includes the remaining shares available under the 1996 Employee Stock Purchase Plan. As of December31, 2009, 0.9million shares have been issued under both the 2009 and 1996 Employee Stock Purchase Plans. Each plan period lasts three months beginning on January1, April1, July1 and October1 of each year. The purchase price for each share of stock is the lesser of 90% of the market price on the first day of the plan period or 100% of the market price on the last day of the plan period. Stock-based compensation expense related to this plan was $1million, $1 million and less than $1 million for each of the years ended December31, 2009, 2008 and 2007. The Company accounts for stock-based compensation costs in accordance with the accounting standards for stock-based compensation, which requires that all share-based payments to employees be recognized in the statements of operations based on their fair values. The Company recognizes the expense using the straight-line attribution method. The stock-based compensation expense recognized in the consolidated statements of operations is based on awards that ultimately are expected to vest; therefore, the amount of expense has been reduced for estimated forfeitures.

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share [Abstract]
Earnings Per Share	13Earnings Per Share Basic and diluted EPS calculations are detailed as follows (in thousands, except per share data): Year Ended December 31, 2009 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share.................................................... $ 323,313 95,797 $ 3.37 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding......................................................................................... 939 Exercised and cancellations............................................................. 126 Net income per diluted common share................................................. $ 323,313 96,862 $ 3.34 Year Ended December 31, 2008 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share.................................................... $ 322,479 99,199 $ 3.25 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding......................................................................................... 1,161 Exercised and cancellations............................................................. 195 Net income per diluted common share................................................. $ 322,479 100,555 $ 3.21 Year Ended December 31, 2007 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share.................................................... $ 268,072 100,500 $ 2.67 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding......................................................................................... 1,445 Exercised and cancellations............................................................. 560 Net income per diluted common share................................................. $ 268,072 102,505 $ 2.62 For the years ended December31, 2009, 2008 and 2007, the Company had 3.3million, 1.3million and 0.9million stock option securities that were antidilutive, respectively, 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
	12 Months Ended Dec. 31, 2009 USD / shares
Comprehensive Income [Abstract]
Comprehensive Income	14Comprehensive Income Comprehensive income details follow (in thousands): Year Ended December 31 2009 2008 2007 Net income................................................................................................ $ 323,313 $ 322,479 $ 268,072 Foreign currency translation.......................................................... 19,405 (53,704) 26,276 Net appreciation (depreciation) and realized gains (losses) on derivative instruments............................................................. 2,766 (798) (18,031) Income tax (expense) benefit..................................................... (968) 279 6,311 Net appreciation (depreciation) and realized gains (losses) on derivative instruments, net of tax.............................................. 1,798 (519) (11,720) Net foreign currency adjustments..................................................... 21,203 (54,223) 14,556 Unrealized losses on investments before income taxes............. (38) (191) (1,294) Income tax benefit........................................................................... 13 67 453 Unrealized losses on investments, net of tax.................................. (25) (124) (841) Retirement liability adjustment, net of tax...................................... 2,977 (20,466) 8,852 Other comprehensive income (loss) .................................................... 24,155 (74,813) 22,567 Comprehensive income.......................................................................... $ 347,468 $ 247,666 $ 290,639

Retirement Plans

Retirement Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Retirement Plans [Abstract]
Retirement Plans	15Retirement Plans U.S.employees are eligible to participate in the Waters Employee Investment Plan, a 401(k) defined contribution plan, after one month of service. Employees may contribute from 1% to 30% of eligible pay on a pre-tax basis. Prior to the amendments described below, which became effective on January 1, 2008, the Company made matching contributions of 50% for contributions up to 6% of eligible pay after one year of service. Employees are 100% vested in employee and Company matching contributions. For the years ended December31, 2009, 2008 and 2007, the Companys matching contributions amounted to $10million, $10million and $4million, respectively. U.S.employees were eligible to participate in the Waters Retirement Plan, a defined benefit, cash balance plan, after one year of service. Annually, the Company credited each employees account as a percentage of eligible pay based on years of service. In addition, each employees account is credited with interest at the end of each year based on the employees account balance at the beginning of such year. The interest rate is the one-year constant maturity Treasury bond yield in effect as of the first business day in November preceding such year plus 0.5%, limited to a minimum interest crediting rate of 5% and a maximum interest crediting rate of 10%. An employee does not vest until the completion of three years of service, at which time the employee becomes 100% vested. The Company maintains an unfunded supplemental executive retirement plan, the Waters Retirement Restoration Plan, which is non-qualified and restores the benefits under the Waters Retirement Plan that are limited by IRS benefit and compensation maximums. In September 2007, the Companys Board of Directors approved various amendments to freeze the pay credit accruals under the Waters Retirement Plan and the Waters Retirement Restoration Plan (collectively, the U.S. Pension Plans) effective December 31, 2007. In accordance with accounting standards for retirement benefits, the Company recorded a curtailment gain of $1 million. In addition, the Company re-measured the U.S. Pension Plans liabilities in September 2007 and the Company reduced the projected benefit obligation liability by $7 million with a corresponding adjustment, net of tax, to accumulated other comprehensive income as a result of the curtailment reducing the accrual for future service. The Companys Board of Directors also approved a $13 million payment that was contributed to the Waters Employee Investment Plan in the first quarter of 2008. The $13 million of expense was reduced by a curtailment gain of $1 million, relating to various amendments to freeze the pay credit accrual, resulting in $12 million of expense recorded in the consolidated statements of operations in the year ending December 31, 2007 with $3 million included in cost of sales, $7 million included in selling and administrative expenses and $2 million included in research and development expenses. In addition, effective January 1, 2008, the Companys Board of Directors increased the employer matching contribution in the Waters Employee Investment Plan to 100% for contributions up

Business Segment Information

Business Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Business Segment Information [Abstract]
Business Segment Information	16Business Segment Information The accounting standard for segment reporting establishes standards for reporting information about operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports of public business enterprises. It also establishes standards for related disclosures about products and services, geographic areas and major customers. The Companys business activities, for which 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 primarily 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 primarily 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 years ended December31, 2009, 2008 and 2007 (in thousands): 2009 2008 2007 Product net sales: Waters instrument systems.................................................... $ 699,014 $ 767,122 $ 742,045 Chemistry................................................................................. 243,629 243,855 223,593 TA instrument systems........................................................... 109,335 128,909 121,954 Total product net sales....................................................... 1,051,978 1,139,886 1,087,592 Service net sales: Waters service......................................................................... 408,482 398,409 356,544 TA service................................................................................ 38,240 36,829 28,912 Total service net sales........................................................ 446,722 435,238 385,456 Total net sales $ 1,498,700 $ 1,575,124 $ 1,473,048 Geographic sales information is presented below (in thousands): Year Ended December31 2009 2008 2007 Net Sales: United States.......................................................................................... $ 459,541 $ 476,301 $ 473,322 Europe....................................................................................................

Unaudited Quarterly Results

Unaudited Quarterly Results
	12 Months Ended Dec. 31, 2009 USD / shares
Unaudited Quarterly Results [Abstract]
Unaudited Quarterly Results	17Unaudited Quarterly Results The Companys unaudited quarterly results are summarized below (in thousands, except per share data): 2009 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales............................................................. $ 333,052 $ 362,837 $ 373,963 $ 428,848 $ 1,498,700 Cost of sales....................................................... 127,454 144,154 153,143 170,131 594,882 Gross profit....................................................... 205,598 218,683 220,820 258,717 903,818 Selling and administrative expenses.............. 99,159 109,583 102,675 109,986 421,403 Research and development expenses............ 18,332 19,722 19,310 19,790 77,154 Purchased intangibles amortization............... 2,616 2,683 2,723 2,637 10,659 Operating income............................................. 85,491 86,695 96,112 126,304 394,602 Interest expense................................................ (3,130) (2,649) (2,864) (2,343) (10,986) Interest income.................................................. 908 595 785 748 3,036 Income from operations before income taxes................................................................ 83,269 84,641 94,033 124,709 386,652 Provision for income tax expense.................. 9,922 14,734 18,097 20,586 63,339 Net income........................................................ $ 73,347 $ 69,907 $ 75,936 $ 104,123 $ 323,313 Net income per basic common share............. $ 0.75 $ 0.73 $ 0.80 $ 1.10 $ 3.37 Weighted-average number of basic common shares................................................ 97,304 96,147 95,235 94,516 95,797 Net income per diluted common share.......... $ 0.75 $ 0.72 $ 0.79 $ 1.08 $ 3.34 Weighted-average number of diluted common shares and equivalents................... 97,927 96,996 96,513 96,111 96,862 2008 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales............................................................. $ 371,712 $ 398,771 $ 386,310 $ 418,331 $ 1,575,124 Cost of sales....................................................... 155,451 175,232 158,520 172,063 661,266 Gross profit....................................................... 216,261 223,539 227,790 246,268 913,858 Selling and administrative expenses.............. 105,837 111,935 107,463 101,464 426,699 Research and development expenses............ 19,786 22,228 19,946 19,628 81,588 Purchased intangibles amortization............... 2,272 2,35

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 19, 2010	Jul. 04, 2009
Entity Information
Entity Registrant Name	WATERS CORP /DE/
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		93,586,125