| Document and Entity Information (USD $) | |||
| 3 Months Ended
Apr. 03, 2010 | Apr. 30, 2010
| Jul. 04, 2009
| |
| Document and Entity Information [Abstract] | |||
| Entity Registrant Name | WATERS CORP /DE/ | ||
| Entity Central Index Key | 0001000697 | ||
| Document Type | 10-Q | ||
| Document Fiscal Period Focus | Q1 | ||
| Document Period End Date | 2010-04-03 | ||
| Amendment Flag | false | ||
| Document Fiscal Year Focus | 2,010 | ||
| 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 Common Stock, Shares Outstanding | 92,945,028 |
| Consolidated Balance Sheets (Unaudited) (USD $) | ||
| In Thousands | 3 Months Ended
Apr. 03, 2010 | 12 Months Ended
Dec. 31, 2009 |
| Current assets: | ||
| Cash and cash equivalents | $297,012 | $341,111 |
| Short-term investments | 395,168 | 289,146 |
| Accounts receivable, less allowances for doubtful accounts and sales returns of $7,852 and $6,723 at April 3, 2010 and December 31, 2009, respectively | 313,951 | 314,247 |
| Inventories | 189,221 | 178,666 |
| Other current assets | 53,865 | 49,206 |
| Total current assets | 1,249,217 | 1,172,376 |
| Property, plant and equipment, net | 208,957 | 210,926 |
| Intangible assets, net | 179,557 | 182,165 |
| Goodwill | 291,734 | 293,077 |
| Other assets | 51,777 | 49,387 |
| Total assets | 1,981,242 | 1,907,931 |
| Current liabilities: | ||
| Notes payable and debt | 12,382 | 131,772 |
| Accounts payable | 57,823 | 49,573 |
| Accrued employee compensation | 32,783 | 37,050 |
| Deferred revenue and customer advances | 117,850 | 94,680 |
| Accrued income taxes | 18,550 | 13,267 |
| Accrued warranty | 10,042 | 10,109 |
| Other current liabilities | 55,774 | 58,117 |
| Total current liabilities | 305,204 | 394,568 |
| Long-term liabilities: | ||
| Long-term debt | 700,000 | 500,000 |
| Long-term portion of retirement benefits | 69,443 | 69,044 |
| Long-term income tax liability | 72,479 | 72,604 |
| Other long-term liabilities | 21,074 | 22,766 |
| Total long-term liabilities | 862,996 | 664,414 |
| Total liabilities | 1,168,200 | 1,058,982 |
| Commitments and contingencies (Notes 5, 6, 7 and 11) | ||
| Stockholders' equity: | ||
| Preferred stock, par value $0.01 per share, 5,000 shares authorized, none issued at April 3, 2010 and December 31, 2009 | 0 | 0 |
| Common stock, par value $0.01 per share, 400,000 shares authorized, 149,283 and 148,831 shares issued, 92,846 and 94,118 shares outstanding at April 3, 2010 and December 31, 2009, respectively | 1,493 | 1,488 |
| Additional paid-in capital | 825,188 | 808,345 |
| Retained earnings | 2,312,234 | 2,236,716 |
| Treasury stock, at cost, 56,437 and 54,713 shares at April 3, 2010 and December 31, 2009, respectively | (2,318,193) | (2,213,174) |
| Accumulated other comprehensive (loss) income | (7,680) | 15,574 |
| Total stockholders' equity | 813,042 | 848,949 |
| Total liabilities and stockholders' equity | $1,981,242 | $1,907,931 |
| Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | ||
| In Thousands, except Per Share data | Apr. 03, 2010
| Dec. 31, 2009
|
| Current assets: | ||
| Allowances for doubtful accounts and sales returns | $7,852 | $6,723 |
| 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 | 149,283 | 148,831 |
| Common stock, shares outstanding | 92,846 | 94,118 |
| Treasury stock, shares | 56,437 | 54,713 |
| Consolidated Statements of Operations (Unaudited) (USD $) | ||
| In Thousands, except Per Share data | 3 Months Ended
Apr. 03, 2010 | 3 Months Ended
Apr. 04, 2009 |
| Product sales | $253,042 | $227,448 |
| Service sales | 114,658 | 105,604 |
| Total net sales | 367,700 | 333,052 |
| Cost of product sales | 97,405 | 83,402 |
| Cost of service sales | 48,527 | 44,052 |
| Total cost of sales | 145,932 | 127,454 |
| Gross profit | 221,768 | 205,598 |
| Selling and administrative expenses | 106,693 | 99,159 |
| Research and development expenses | 20,076 | 18,332 |
| Purchased intangibles amortization | 2,642 | 2,616 |
| Operating income | 92,357 | 85,491 |
| Interest expense | (2,614) | (3,130) |
| Interest income | 329 | 908 |
| Income from operations before income taxes | 90,072 | 83,269 |
| Provision for income taxes | 14,554 | 9,922 |
| Net income | $75,518 | $73,347 |
| Net income per basic common share | 0.81 | 0.75 |
| Weighted-average number of basic common shares | 93,629 | 97,304 |
| Net income per diluted common share | 0.79 | 0.75 |
| Weighted-average number of diluted common shares and equivalents | 95,223 | 97,927 |
| Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
| In Thousands | 3 Months Ended
Apr. 03, 2010 | 3 Months Ended
Apr. 04, 2009 |
| Cash flows from operating activities: | ||
| Net income | $75,518 | $73,347 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Provisions for doubtful accounts on accounts receivable | 904 | 375 |
| Provisions on inventory | 2,648 | 1,777 |
| Stock-based compensation | 6,031 | 7,348 |
| Deferred income taxes | (1,950) | (1,977) |
| Depreciation | 8,441 | 8,363 |
| Amortization of intangibles | 6,544 | 6,048 |
| Change in operating assets and liabilities, net of acquisitions: | ||
| (Increase) decrease in accounts receivable | (6,230) | 5,542 |
| Increase in inventories | (16,134) | (17,792) |
| (Increase) decrease in other current assets | (4,679) | 1,449 |
| (Increase) decrease in other assets | (4,222) | 210 |
| Increase (decrease) in accounts payable and other current liabilities | 13,720 | (24,378) |
| Increase in deferred revenue and customer advances | 23,732 | 26,059 |
| Decrease in other liabilities | (1,168) | (5,683) |
| Net cash provided by operating activities | 103,155 | 80,688 |
| Cash flows from investing activities: | ||
| Additions to property, plant, equipment and software capitalization | (10,165) | (22,156) |
| Business acquisitions, net of cash acquired | 0 | (36,086) |
| Purchase of short-term investments | (216,748) | (43,119) |
| Maturity of short-term investments | 110,726 | 0 |
| Net cash used in investing activities | (116,187) | (101,361) |
| Cash flows from financing activities: | ||
| Proceeds from debt issuances | 213,273 | 94,764 |
| Payments on debt | (132,663) | (46,724) |
| Payments of debt issuance costs | (1,473) | 0 |
| Proceeds from stock plans | 8,852 | 944 |
| Purchase of treasury shares | (105,019) | (63,846) |
| Excess tax benefit related to stock option plans | 2,182 | 0 |
| (Payments) proceeds from debt swaps and other derivative contracts | (3,631) | 829 |
| Net cash used in financing activities | (18,479) | (14,033) |
| Effect of exchange rate changes on cash and cash equivalents | (12,588) | (5,663) |
| Decrease in cash and cash equivalents | (44,099) | (40,369) |
| Cash and cash equivalents at beginning of period | 341,111 | 428,522 |
| Cash and cash equivalents at end of period | $297,012 | $388,153 |
| Basis of Presentation and Significant Accounting Policies | |
| 3 Months Ended
Apr. 03, 2010 | |
| 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, 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. 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 will not consist of thirteen complete weeks. The Companys first fiscal quarters for 2010 and 2009 ended on April 3, 2010 and April 4, 2009, 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 |
| Inventory | |
| 3 Months Ended
Apr. 03, 2010 | |
| Inventories [Abstract] | |
| Inventory | 2Inventories Inventories are classified as follows (in thousands): April 3, 2010 December 31, 2009 Raw materials $ 64,703 $ 57,223 Work in progress 16,122 15,419 Finished goods 108,396 106,024 Total inventories $ 189,221 $ 178,666 |
| Acquisitions | |
| 3 Months Ended
Apr. 03, 2010 | |
| Acquisitions [Abstract] | |
| Acquisitions | 3 Acquisitions 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. The acquisition of Thar was accounted for under the accounting standards for business combinations and the results of Thar have been included in the consolidated results of the Company from the acquisition date. The pro forma effect of the results of the ongoing operations for the Company and Thar as though the acquisition of Thar had occurred at the beginning of the periods covered by this report is immaterial. |
| Goodwill and Other Intangibles | |
| 3 Months Ended
Apr. 03, 2010 | |
| Goodwill and Other Intangibles [Abstract] | |
| Goodwill and Other Intangibles | 4Goodwill and Other Intangibles The carrying amount of goodwill was $292 million and $293million at April 3, 2010 and December 31, 2009, respectively. Currency translation adjustments decreased goodwill by $1 million. The Companys intangible assets included in the consolidated balance sheets are detailed as follows (in thousands): April 3, 2010 December31, 2009 Gross Carrying Amount Accumulated Amortization Weighted- Average Amortization Period Gross Carrying Amount Accumulated Amortization Weighted- Average Amortization Period Purchased intangibles $ 135,444 $ 63,663 10years $ 136,604 $ 61,751 10years Capitalized software 212,995 119,544 5years 217,102 122,920 5years Licenses 9,551 8,474 8years 9,637 8,328 8years Patents and other intangibles 26,183 12,935 8years 24,185 12,364 8years Total $ 384,173 $ 204,616 7years $ 387,528 $ 205,363 7years The gross carrying value of intangible assets and accumulated amortization for intangible assets decreased by $12 million and $7 million, respectively, in the three months ended April 3, 2010 due to the effect of foreign currency translation. For the three months ended April 3, 2010 and April 4, 2009, amortization expense for intangible assets was $7 million and $6million, respectively. Amortization expense for intangible assets is estimated to be approximately $30million for each of the next five years. |
| Debt | |
| 3 Months Ended
Apr. 03, 2010 | |
| Debt [Abstract] | |
| Debt | 5Debt 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. In March 2010, the Company issued and sold ten-year senior unsecured notes at an interest rate of 5.00% with a face value of $100 million. This debt matures in February 2020. The Company used 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 senior unsecured notes are payable semi-annually in February and August of each year. The Company may redeem some 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 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 in January 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 April 3, 2010, the Company was in compliance with all such covenants. At April 3, 2010 and December 31, 2009, the Company had the following outstanding debt |
| Income Taxes | |
| 3 Months Ended
Apr. 03, 2010 | |
| Income Taxes [Abstract] | |
| Income Taxes | 6Income Taxes The Company accounts for its uncertain tax return reporting positions in accordance with the accounting standards for income taxes, which require financial statement reporting of the expected future tax consequences of those tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but prohibits any discounting of those unrecognized tax benefits for the time value of money. The following is a summary of the activity of the Companys unrecognized tax benefits for the three months ended April 3, 2010 and April 4, 2009 (in thousands): April 3, 2010 April 4, 2009 Balance at the beginning of the period $ 77,924 $ 77,295 Net change in uncertain tax reporting positions (448) (3,524) Balance at the end of the period $ 77,476 $ 73,771 For the three months ended April 3, 2010, the Company recorded approximately $2 million of tax benefit in the income tax provision that was associated with the resolution of a pre-acquisition tax exposure, relating to an acquisition made in 2006. For the three months ended April 4, 2009, the Company recorded approximately $5 million of tax benefit in the income tax provision that was associated with the reversal of a $5 million tax provision, which was originally recorded in 2008, relating to the reorganization of certain foreign legal entities. The recognition of this tax benefit in 2009 was a result of changes in income tax regulations promulgated by the U.S. Treasury in February 2009. The Company also recorded increases of approximately $1 million of other unrecognized tax benefits in the income tax provision in both the three months ended April 3, 2010 and April 4, 2009. The Companys uncertain tax positions are taken with respect to income tax return reporting periods beginning after December 31, 1999, which are the periods that generally remain open to income tax audit examination by the concerned income tax authorities. The Company continuously monitors the lapsing of statutes of limitations on potential tax assessments for related changes in the measurement of unrecognized tax benefits, related net interest and penalties, and deferred tax assets and liabilities. As of April 3, 2010, the Company expects that a tax audit of one of the Companys U.K. affiliates tax returns for 2003, 2004 and 2005 will be settled before December 31, 2010. As of April 3, 2010, the Company does not expect the settlement of this audit to have a material effect on its consolidated financial statements. In addition, as of April 3, 2010, the Company does not expect to record any material changes in the measurement of any other unrecognized tax benefits, related net interest and penalties or deferred tax assets and liabilities due to the settlement of tax audit examinations or to the lapsing of statutes of limitations on potential tax assessments within the next twelve months. The Companys effective tax rates for the three months ended April 3, 2010 and April 4, 2009 were 16.2% and 11.9%, respectively. Included in the income |
| Litigation | |
| 3 Months Ended
Apr. 03, 2010 | |
| Litigation [Abstract] | |
| Litigation | 7Litigation 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 April 3, 2010 and December 31, 2009. 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 | |
| 3 Months Ended
Apr. 03, 2010 | |
| Stock-based Compensation [Abstract] | |
| Stock-based Compensation | 8Stock-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 the accounting standards for stock-based compensation, which require that all share-based payments to employees be recognized in the statements of operations based on their 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. The stock-based compensation accounting standards require 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 this standard, 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 months ended April 3, 2010 and April 4, 2009 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 April 3, 2010 April 4, 2009 Cost of sales $ 625 $ 728 Selling and administrative expenses 4,657 6,034 Research and development expenses 749 586 Total stock-based compensation $ 6,031 $ 7,348 As of both April 3, 2010 and December 31, 2009, the Company has capitalized stock-based compensation costs of less than $1 million in inventory in the consolidated balance sheets. As of both April 3, 2010 and December 31, 2009, the Company has capitalized stock-based compensation costs of $3 million in capitalized software in the consolidated balance sheets. The reduction in stock-based compensation expense for the three months ended April 3, 2010 as compared to the three months ended April 4, 2009 is primarily a result of a shift over time in stock-based compensation grants from stock options to restricted stock units. 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 |
| Earnings Per Share | |
| 3 Months Ended
Apr. 03, 2010 | |
| Earnings Per Share [Abstract] | |
| Earnings Per Share | 9Earnings Per Share Basic and diluted earnings per share (EPS) calculations are detailed as follows (in thousands, except per share data): Three Months Ended April 3, 2010 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share $ 75,518 93,629 $ 0.81 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding 1,430 Exercised and cancellations 164 Net income per diluted common share $ 75,518 95,223 $ 0.79 Three Months Ended April 4, 2009 Net Income (Numerator) Weighted-Average Shares (Denominator) Per Share Amount Net income per basic common share $ 73,347 97,304 $ 0.75 Effect of dilutive stock option, restricted stock and restricted stock unit securities: Outstanding 529 Exercised and cancellations 94 Net income per diluted common share $ 73,347 97,927 $ 0.75 For the three months ended April 3, 2010 and April 4, 2009, the Company had 1.9million and 4.4 million stock option securities that were antidilutive, respectively, due to having higher exercise prices than the Companys average stock 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 | |
| 3 Months Ended
Apr. 03, 2010 | |
| Comprehensive Income [Abstract] | |
| Comprehensive Income | 10Comprehensive Income Comprehensive income is detailed as follows (in thousands): Three Months Ended April 3, 2010 April 4, 2009 Net income $ 75,518 $ 73,347 Foreign currency translation (23,410) (13,296) Net appreciation and realized gains on derivative instruments 1,223 Income tax expense (428) Net appreciation and realized gains on derivative instruments, net of tax 795 Net foreign currency adjustments (23,410) (12,501) Unrealized gain (loss) on investments before income taxes 41 (38) Income tax (expense) benefit (14) 13 Unrealized gain (loss) on investments, net of tax 27 (25) Retirement liability adjustment, net of tax 129 166 Other comprehensive loss (23,254) (12,360) Comprehensive income $ 52,264 $ 60,987 |
| Retirement Plans | |
| 3 Months Ended
Apr. 03, 2010 | |
| Retirement Plans [Abstract] | |
| Retirement Plans | 11Retirement Plans The Company sponsors various retirement plans. The summary of the components of net periodic pension costs for the plans for the three months ended April 3, 2010 and April 4, 2009 is as follows (in thousands): Three Months Ended April 3, 2010 April 4, 2009 U.S. Pension Plans U.S. Retiree Healthcare Plan Non-U.S. Pension Plans U.S. Pension Plans U.S. Retiree Healthcare Plan Non-U.S. Pension Plans Service cost $ 15 $ 96 $ 424 $ 23 $ 58 $ 424 Interest cost 1,585 103 256 1,544 96 210 Expected return on plan assets (1,785) (53) (79) (1,678) (37) (83) Net amortization: Prior service costs (credits) (13) 37 (14) Net actuarial (gain) loss 262 (13) 98 3 12 Net periodic pension cost $ 77 $ 133 $ 588 $ 24 $ 106 $ 563 During fiscal year 2010, the Company expects to contribute a total of approximately $3 million to $5 million to the Companys defined benefit plans. |
| Business Segment Information | |
| 3 Months Ended
Apr. 03, 2010 | |
| Business Segment Information [Abstract] | |
| Business Segment Information | 12Business 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 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 three months ended April 3, 2010 and April 4, 2009 (in thousands): Three Months Ended April 3, 2010 April 4, 2009 Product net sales: Waters instrument systems $ 158,567 $ 142,811 Chemistry 66,678 59,212 TA instrument systems 27,797 25,425 Total product net sales 253,042 227,448 Service net sales: Waters service 105,008 97,056 TA service 9,650 8,548 Total service net sales 114,658 105,604 Total net sales $ 367,700 $ 333,052 |
| Recent Accounting Standards Changes and Developments | |
| 3 Months Ended
Apr. 03, 2010 | |
| Recent Accounting Standards Changes and Developments [Abstract] | |
| Recent Accounting Standards Changes and Developments | 13Recent Accounting Standard Changes and Developments Recently Adopted Accounting Standards In June 2009, a new accounting standard was issued relating to the consolidation of variable interest entities. This statement addresses (1) the effects on certain provisions on existing accounting standards as a result of the elimination of the qualifying special-purpose entity concept and (2) constituent concerns about the application of certain key provisions of existing accounting standards, including those in which the accounting and disclosures under existing accounting standards do not always provide timely and useful information about an enterprises involvement in a variable interest entity. This standard is effective for periods beginning after November 15, 2009. The adoption of this standard did not have a material effect on the Companys financial position, results of operations or cash flows. In January 2010, the Company adopted a newly issued accounting standard which requires additional disclosure about the amounts of and reasons for significant transfers in and out of Level 1 and Level 2 fair-value measurements. This standard also clarifies existing disclosure requirements related to the level of disaggregation of fair value measurements for each class of assets and liabilities and disclosure about inputs and valuation techniques used to measure fair value for both recurring and nonrecurring Level 2 and Level 3 measurements. As this newly issued accounting standard only requires enhanced disclosure, the adoption of this standard did not impact the Companys financial position or results of operations. In addition, effective for interim and annual period beginning after December 15, 2010, this standard will require additional disclosure and require an entity to present disaggregated information about activity in Level 3 fair-value measurements on a gross basis, rather than as one net amount. Recently Issued Accounting Standards In October 2009, a new accounting consensus was issued for multiple-deliverable revenue arrangements. This consensus amends existing revenue recognition accounting standards. This consensus provides accounting principles and application guidance on whether multiple deliverables exist, how the arrangement should be separated and the consideration allocated. This guidance eliminates the requirement to establish the fair value of undelivered products and services and instead provides for separate revenue recognition based upon managements estimate of the selling price for an undelivered item when there is no other means to determine the fair value of that undelivered item. Previously, the existing accounting consensus required that the fair value of the undelivered item be the price of the item either sold in a separate transaction between unrelated third parties or the price charged for each item when the item is sold separately by the vendor. Under the existing accounting consensus, if the fair value of all of the elements in the arrangement was not determinable, then revenue was deferred until all of the items were delivered or fair value was determined. This new approach is effective prospectively |
