Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | ||
Apr. 04, 2015 | 1-May-15 | Jun. 28, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | WATERS CORP /DE/ | ||
Entity Trading Symbol | WAT | ||
Entity Central Index Key | 1000697 | ||
Document Type | 10-Q | ||
Document Fiscal Period Focus | Q1 | ||
Document Period End Date | 4-Apr-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2015 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $8,843,973,000 | ||
Entity Common Stock, Shares Outstanding | 82,692,719 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $440,798 | $422,177 |
Investments | 1,668,247 | 1,633,211 |
Accounts receivable, less allowances for doubtful accounts and sales returns of $7,002 and $7,179 at April 4, 2015 and December 31, 2014, respectively | 394,370 | 433,616 |
Inventories | 257,530 | 246,430 |
Other current assets | 115,028 | 118,302 |
Total current assets | 2,875,973 | 2,853,736 |
Property, plant and equipment, net | 316,814 | 321,583 |
Intangible assets, net | 213,108 | 232,371 |
Goodwill | 350,021 | 354,838 |
Other assets | 116,810 | 115,406 |
Total assets | 3,872,726 | 3,877,934 |
Current liabilities: | ||
Notes payable and debt | 175,316 | 225,243 |
Accounts payable | 63,954 | 65,704 |
Accrued employee compensation | 28,950 | 47,198 |
Deferred revenue and customer advances | 167,343 | 129,706 |
Accrued income taxes | 19,405 | 15,143 |
Accrued warranty | 12,871 | 13,266 |
Other current liabilities | 70,632 | 85,335 |
Total current liabilities | 538,471 | 581,595 |
Long-term liabilities: | ||
Long-term debt | 1,310,000 | 1,240,000 |
Long-term portion of retirement benefits | 84,239 | 85,230 |
Long-term income tax liabilities | 21,313 | 20,397 |
Other long-term liabilities | 56,463 | 56,046 |
Total long-term liabilities | 1,472,015 | 1,401,673 |
Total liabilities | 2,010,486 | 1,983,268 |
Commitments and contingencies (Notes 5, 6 and 9) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none issued at April 4, 2015 and December 31, 2014 | 0 | 0 |
Common stock, par value $0.01 per share, 400,000 shares authorized, 157,030 and 156,716 shares issued, 82,701 and 83,147 shares outstanding at April 4, 2015 and December 31, 2014, respectively | 1,570 | 1,567 |
Additional paid-in capital | 1,414,700 | 1,392,494 |
Retained earnings | 4,490,574 | 4,394,513 |
Treasury stock, at cost, 74,329 and 73,569 shares at April 4, 2015 and December 31, 2014, respectively | -3,906,228 | -3,815,203 |
Accumulated other comprehensive loss | -138,376 | -78,705 |
Total stockholders' equity | 1,862,240 | 1,894,666 |
Total liabilities and stockholders' equity | $3,872,726 | $3,877,934 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts and sales returns | $7,002 | $7,179 |
Preferred stock, par value per share | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 157,030,000 | 156,716,000 |
Common stock, shares outstanding | 82,701,000 | 83,147,000 |
Treasury stock, shares | 74,329,000 | 73,569,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income Statement [Abstract] | ||
Product sales | $302,873 | $284,795 |
Service sales | 157,531 | 145,713 |
Total net sales | 460,404 | 430,508 |
Cost of product sales | 121,953 | 122,475 |
Cost of service sales | 67,293 | 65,244 |
Total cost of sales | 189,246 | 187,719 |
Gross profit | 271,158 | 242,789 |
Selling and administrative expenses | 119,751 | 126,635 |
Research and development expenses | 28,951 | 24,746 |
Purchased intangibles amortization | 2,474 | 2,647 |
Operating income | 119,982 | 88,761 |
Interest expense | -8,975 | -7,489 |
Interest income | 2,340 | 1,458 |
Income from operations before income taxes | 113,347 | 82,730 |
Provision for income taxes | 17,286 | 12,428 |
Net income | $96,061 | $70,302 |
Net income per basic common share | $1.16 | $0.83 |
Weighted-average number of basic common shares | 83,025 | 84,977 |
Net income per diluted common share | $1.15 | $0.82 |
Weighted-average number of diluted common shares and equivalents | 83,752 | 85,873 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $96,061 | $70,302 |
Foreign currency translation | -64,348 | 26,717 |
Unrealized gains on investments before income taxes | 2,767 | 142 |
Income tax (expense) benefit from unrealized gains on investments | -116 | 2 |
Unrealized gains on investments, net of tax | 2,651 | 144 |
Retirement liability adjustment before reclassifications | 2,136 | -931 |
Retirement liability amounts reclassified to selling and administrative expenses | 921 | 516 |
Retirement liability adjustment before income taxes | 3,057 | -415 |
Income tax (expense) benefit from retirement liability adjustment | -1,031 | 132 |
Retirement liability adjustment, net of tax | 2,026 | -283 |
Other comprehensive (loss) income | -59,671 | 26,578 |
Comprehensive income | $36,390 | $96,880 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Cash flows from operating activities: | ||
Net income | $96,061 | $70,302 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provisions for doubtful accounts on accounts receivable | 159 | 1,059 |
Provisions on inventory | 1,368 | 1,139 |
Stock-based compensation | 8,455 | 8,129 |
Deferred income taxes | 2,828 | -2,218 |
Depreciation | 11,445 | 8,819 |
Amortization of intangibles | 11,104 | 11,523 |
Change in operating assets and liabilities, net of acquisitions: | ||
Decrease in accounts receivable | 24,802 | 30,147 |
Increase in inventories | -21,369 | -24,163 |
Increase in other current assets | -1,776 | -8,008 |
Increase in other assets | -4,891 | -7,169 |
Decrease in accounts payable and other current liabilities | -25,518 | -11,491 |
Increase in deferred revenue and customer advances | 42,555 | 34,356 |
Increase in other liabilities | 9,367 | 3,330 |
Net cash provided by operating activities | 154,590 | 115,755 |
Cash flows from investing activities: | ||
Additions to property, plant, equipment and software capitalization | -21,410 | -21,395 |
Business acquisitions, net of cash acquired | -3,615 | |
Purchases of investments | -794,422 | -607,028 |
Maturities of investments | 759,386 | 512,089 |
Net cash used in investing activities | -56,446 | -119,949 |
Cash flows from financing activities: | ||
Proceeds from debt issuances | 120,073 | 10,053 |
Payments on debt | -100,000 | -1,295 |
Proceeds from stock plans | 11,269 | 35,322 |
Purchases of treasury shares | -91,025 | -92,572 |
Excess tax benefit related to stock option plans | 2,757 | 8,507 |
Payments of derivative contracts | -3,348 | -314 |
Net cash used in financing activities | -60,274 | -40,299 |
Effect of exchange rate changes on cash and cash equivalents | -19,249 | -921 |
Increase (decrease) in cash and cash equivalents | 18,621 | -45,414 |
Cash and cash equivalents at beginning of period | 422,177 | 440,796 |
Cash and cash equivalents at end of period | $440,798 | $395,382 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||||
Apr. 04, 2015 | |||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | 1 Basis of Presentation and Summary of Significant Accounting Policies | ||||||||||||||
Waters Corporation (“Waters®” or the “Company”) is an analytical instrument manufacturer that 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”) technology systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. These systems are complementary products that are frequently employed together (“LC-MS”) and sold as integrated instrument systems using a common software platform. 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”), nutritional safety analysis and environmental testing. LC-MS instruments combine 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 and stability of fine chemicals, pharmaceuticals, water, 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 Company's instruments, as well as other suppliers' instruments, and are typically purchased by customers as part of the instrument system. | |||||||||||||||
The Company's interim fiscal quarter typically ends on the thirteenth Saturday of each quarter. Since the Company's fiscal year end is December 31, the first and fourth fiscal quarters may have more or less than thirteen complete weeks. The Company's first fiscal quarters for 2015 and 2014 ended on April 4, 2015 and March 29, 2014, respectively. | |||||||||||||||
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on 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 management's opinion that the accompanying interim consolidated financial statements reflect all adjustments (which are normal and recurring) that are necessary for a fair statement of the results for the interim periods. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the U.S. Securities and Exchange Commission on February 27, 2015. | |||||||||||||||
Cash, Cash Equivalents and Investments | |||||||||||||||
Cash equivalents represent highly liquid investments, with original maturities of 90 days or less, while investments with longer maturities are classified as investments. The Company maintains cash balances in various operating accounts in excess of federally insured limits, and in foreign subsidiary accounts in currencies other than U.S. dollars. As of April 4, 2015 and December 31, 2014, $2,067 million out of $2,109 million and $1,971 million out of $2,055 million, respectively, of the Company's total cash, cash equivalents and investments were held by foreign subsidiaries and may be subject to material tax effects on distribution to U.S. legal entities. | |||||||||||||||
Fair Value Measurements | |||||||||||||||
In accordance with the accounting standards for fair value measurements and disclosures, certain of the Company's assets and liabilities are measured at fair value on a recurring basis as of April 4, 2015 and December 31, 2014. Fair values determined by Level 1 inputs utilize observable data, such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points for which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||||||||
The following table represents the Company's assets and liabilities measured at fair value on a recurring basis at April 4, 2015 (in thousands): | |||||||||||||||
Quoted Prices | |||||||||||||||
in Active | Significant | ||||||||||||||
Markets | Other | Significant | |||||||||||||
for Identical | Observable | Unobservable | |||||||||||||
Total at | Assets | Inputs | Inputs | ||||||||||||
4-Apr-15 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | |||||||||||||||
U.S. Treasury securities | $ | 641,693 | $ | - | $ | 641,693 | $ | - | |||||||
Foreign government securities | 24,994 | - | 24,994 | - | |||||||||||
Corporate debt securities | 1,067,736 | - | 1,067,736 | - | |||||||||||
Time deposits | 64,265 | - | 64,265 | - | |||||||||||
Equity securities | 147 | - | 147 | - | |||||||||||
Other cash equivalents | 29,000 | - | 29,000 | - | |||||||||||
Waters 401(k) Restoration Plan assets | 35,678 | - | 35,678 | - | |||||||||||
Foreign currency exchange contracts | 445 | - | 445 | - | |||||||||||
Total | $ | 1,863,958 | $ | - | $ | 1,863,958 | $ | - | |||||||
Liabilities: | |||||||||||||||
Contingent consideration | $ | 3,780 | $ | - | $ | - | $ | 3,780 | |||||||
Foreign currency exchange contracts | 631 | - | 631 | - | |||||||||||
Total | $ | 4,411 | $ | - | $ | 631 | $ | 3,780 | |||||||
The following table represents the Company's assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands): | |||||||||||||||
Quoted Prices | |||||||||||||||
in Active | Significant | ||||||||||||||
Markets | Other | Significant | |||||||||||||
Total at | for Identical | Observable | Unobservable | ||||||||||||
December 31, | Assets | Inputs | Inputs | ||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | |||||||||||||||
U.S. Treasury securities | $ | 626,772 | $ | - | $ | 626,772 | $ | - | |||||||
Foreign government securities | 24,998 | - | 24,998 | - | |||||||||||
Corporate debt securities | 984,105 | - | 984,105 | - | |||||||||||
Time deposits | 64,240 | - | 64,240 | - | |||||||||||
Equity securities | 147 | - | 147 | - | |||||||||||
Other cash equivalents | 29,000 | - | 29,000 | - | |||||||||||
Waters 401(k) Restoration Plan assets | 33,935 | - | 33,935 | - | |||||||||||
Foreign currency exchange contracts | 123 | - | 123 | - | |||||||||||
Total | $ | 1,763,320 | $ | - | $ | 1,763,320 | $ | - | |||||||
Liabilities: | |||||||||||||||
Contingent consideration | $ | 3,612 | $ | - | $ | - | $ | 3,612 | |||||||
Foreign currency exchange contracts | 651 | - | 651 | - | |||||||||||
Total | $ | 4,263 | $ | - | $ | 651 | $ | 3,612 | |||||||
The fair values of the Company's cash equivalents, investments, 401(k) restoration plan assets and foreign currency exchange contracts are determined through market and observable sources and have been classified as Level 2. These assets and liabilities have been initially valued at the transaction price and subsequently valued, typically utilizing third-party pricing services. The pricing services use many inputs to determine value, including reportable trades, benchmark yields, credit spreads, broker/dealer quotes, current spot rates and other industry and economic events. The Company validates the prices provided by third-party pricing services by reviewing their pricing methods and obtaining market values from other pricing sources. After completing these validation procedures, the Company did not adjust or override any fair value measurements provided by third-party pricing services as of April 4, 2015 and December 31, 2014. | |||||||||||||||
Fair Value of Contingent Consideration | |||||||||||||||
The fair value of the Company's liability for contingent consideration related to the July 2014 acquisition of Medimass Research, Development and Service Kft. is determined using a probability-weighted discounted cash flow model, which uses significant unobservable inputs, and has been classified as Level 3. Subsequent changes in the fair value of the contingent consideration liability are recorded in the results of operations. The fair value of the contingent consideration liability associated with future earnout payments is based on several factors, including the development of future products, estimated sales of those products and a discount rate reflective of the Company's creditworthiness. A change in any of these unobservable inputs can significantly change the fair value of the contingent consideration. Although there is no contractual limit, the fair value of future contingent consideration payments was estimated to be $4 million at both April 4, 2015 and December 31, 2014, based on the Company's best estimate, as the earnout is based on future sales of certain products through 2034. There have been no changes in significant assumptions since December 31, 2014 and the change in fair value since then is primarily due to change in time value of money. | |||||||||||||||
Fair Value of Other Financial Instruments | |||||||||||||||
The Company's cash, accounts receivable, accounts payable and variable interest rate debt are recorded at cost, which approximates fair value. The carrying value of the Company's fixed interest rate debt was $500 million and $600 million at April 4, 2015 and December 31, 2014, respectively. The fair value of the Company's fixed interest rate debt was estimated using discounted cash flow models, based on estimated current rates offered for similar debt under current market conditions for the Company. The fair value of the Company's fixed interest rate debt was estimated to be $515 million and $608 million at April 4, 2015 and December 31, 2014, respectively, using Level 2 inputs. | |||||||||||||||
Derivative Transactions | |||||||||||||||
The Company enters into foreign currency exchange contracts to manage exposures to changes in foreign currency exchange rates on certain inter-company balances and short-term assets and liabilities. Principal hedged currencies include the Euro, Japanese yen, British pound and Brazilian real. At April 4, 2015 and December 31, 2014, the Company held forward foreign exchange contracts with notional amounts totaling $109 million and $110 million, respectively. | |||||||||||||||
The Company's foreign currency exchange contracts included in the consolidated balance sheets are classified as follows (in thousands): | |||||||||||||||
4-Apr-15 | 31-Dec-14 | ||||||||||||||
Other current assets | $ | 445 | $ | 123 | |||||||||||
Other current liabilities | $ | 631 | $ | 651 | |||||||||||
The following is a summary of the activity in cost of sales in the statements of operations related to the forward foreign exchange contracts (in thousands): | |||||||||||||||
Three Months Ended | |||||||||||||||
4-Apr-15 | 29-Mar-14 | ||||||||||||||
Realized losses on closed contracts | $ | -3,348 | $ | -314 | |||||||||||
Unrealized gains (losses) on open contracts | 342 | -881 | |||||||||||||
Cumulative net pre-tax losses | $ | -3,006 | $ | -1,195 | |||||||||||
Stockholders' Equity | |||||||||||||||
In May 2014, the Company's Board of Directors authorized the Company to repurchase up to $750 million of its outstanding common stock over a three-year period and authorized the extension of the May 2012 program until May 2015. During the three months ended April 4, 2015 and March 29, 2014, the Company repurchased 0.7 million and 0.8 million shares of the Company's outstanding common stock at a cost of $85 million and $86 million, respectively, under the May 2012 and May 2014 authorizations. As of April 4, 2015, the Company repurchased an aggregate of 7.6 million shares at a cost of $750 million under the May 2012 repurchase program, which is now completed. The Company has a total of $684 million authorized for future repurchases under the May 2014 plan. In addition, the Company repurchased $6 million and $7 million of common stock related to the vesting of restricted stock units during the three months ended April 4, 2015 and March 29, 2014, respectively. The Company believes that it has the financial flexibility to fund these share repurchases given current cash levels and debt borrowing capacity, as well as to invest in research, technology and business acquisitions to further grow the Company's sales and profits. | |||||||||||||||
Product Warranty Costs | |||||||||||||||
The Company accrues estimated product warranty costs at the time of sale, which are included in cost of sales in the consolidated statements of operations. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company's warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. The amount of the accrued warranty liability is based on historical information, such as past experience, product failure rates, number of units repaired and estimated costs of material and labor. The liability is reviewed for reasonableness at least quarterly. | |||||||||||||||
The following is a summary of the activity of the Company's accrued warranty liability for the three months ended April 4, 2015 and March 29, 2014 (in thousands): | |||||||||||||||
Balance at | Balance at | ||||||||||||||
Beginning | Accruals for | Settlements | End of | ||||||||||||
of Period | Warranties | Made | Period | ||||||||||||
Accrued warranty liability: | |||||||||||||||
4-Apr-15 | $ | 13,266 | $ | 1,762 | $ | -2,157 | $ | 12,871 | |||||||
29-Mar-14 | $ | 12,962 | $ | 1,752 | $ | -1,919 | $ | 12,795 | |||||||
Subsequent Events | |||||||||||||||
The Company did not have any material subsequent events, except for the amendment of the Company's credit agreement discussed in Note 5, “Debt”. |
Marketable_Securities
Marketable Securities | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ||||||||||||||
Cash, Cash Equivalents and Short-term Investments | 2 Marketable Securities | |||||||||||||
The Company's marketable securities within cash equivalents and investments included in the consolidated balance sheets are detailed as follows (in thousands): | ||||||||||||||
4-Apr-15 | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
Cost | Gain | Loss | Value | |||||||||||
U.S. Treasury securities | $ | 640,441 | $ | 1,270 | $ | -18 | $ | 641,693 | ||||||
Foreign government securities | 24,994 | - | - | 24,994 | ||||||||||
Corporate debt securities | 1,066,695 | 1,171 | -130 | 1,067,736 | ||||||||||
Time deposits | 64,265 | - | - | 64,265 | ||||||||||
Equity securities | 77 | 70 | - | 147 | ||||||||||
Total | $ | 1,796,472 | $ | 2,511 | $ | -148 | $ | 1,798,835 | ||||||
Amounts included in: | ||||||||||||||
Cash equivalents | $ | 130,588 | $ | - | $ | - | $ | 130,588 | ||||||
Investments | 1,665,884 | 2,511 | -148 | 1,668,247 | ||||||||||
Total | $ | 1,796,472 | $ | 2,511 | $ | -148 | $ | 1,798,835 | ||||||
31-Dec-14 | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
Cost | Gain | Loss | Value | |||||||||||
U.S. Treasury securities | $ | 626,683 | $ | 246 | $ | -157 | $ | 626,772 | ||||||
Foreign government securities | 24,998 | - | - | 24,998 | ||||||||||
Corporate debt securities | 984,668 | 125 | -688 | 984,105 | ||||||||||
Time deposits | 64,240 | - | - | 64,240 | ||||||||||
Equity securities | 77 | 70 | - | 147 | ||||||||||
Total | $ | 1,700,666 | $ | 441 | $ | -845 | $ | 1,700,262 | ||||||
Amounts included in: | ||||||||||||||
Cash equivalents | $ | 67,051 | $ | - | $ | - | $ | 67,051 | ||||||
Investments | 1,633,615 | 441 | -845 | 1,633,211 | ||||||||||
Total | $ | 1,700,666 | $ | 441 | $ | -845 | $ | 1,700,262 | ||||||
The estimated fair value of marketable debt securities by maturity date is as follows (in thousands): | ||||||||||||||
4-Apr-15 | 31-Dec-14 | |||||||||||||
Due in one year or less | $ | 897,303 | $ | 872,872 | ||||||||||
Due after one year through three years | 837,120 | 763,003 | ||||||||||||
Total | $ | 1,734,423 | $ | 1,635,875 |
Inventories
Inventories | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Inventory Items, Net Of Reserves Alternative [Abstract] | ||||||||
Inventories Disclosure | 3 Inventories | |||||||
Inventories are classified as follows (in thousands): | ||||||||
4-Apr-15 | 31-Dec-14 | |||||||
Raw materials | $ | 85,943 | $ | 84,952 | ||||
Work in progress | 19,513 | 16,749 | ||||||
Finished goods | 152,074 | 144,729 | ||||||
Total inventories | $ | 257,530 | $ | 246,430 |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||
Goodwill and Other Intangibles [Abstract] | ||||||||||||||||||||
Goodwill and Other Intangibles | 4 Goodwill and Other Intangibles | |||||||||||||||||||
The carrying amount of goodwill was $350 million and $355 million at April 4, 2015 and December 31, 2014, respectively. During the three months ended April 4, 2015, the effect of foreign currency translation decreased goodwill by $5 million. | ||||||||||||||||||||
The Company's intangible assets included in the consolidated balance sheets are detailed as follows (in thousands): | ||||||||||||||||||||
4-Apr-15 | 31-Dec-14 | |||||||||||||||||||
Weighted- | Weighted- | |||||||||||||||||||
Gross | Average | Gross | Average | |||||||||||||||||
Carrying | Accumulated | Amortization | Carrying | Accumulated | Amortization | |||||||||||||||
Amount | Amortization | Period | Amount | Amortization | Period | |||||||||||||||
Capitalized software | 308,213 | 183,036 | 7 | years | 334,280 | 196,477 | 7 | years | ||||||||||||
Purchased intangibles | $ | 158,050 | $ | 111,965 | 11 | years | $ | 163,855 | $ | 112,279 | 11 | years | ||||||||
Trademarks and IPR&D | 13,857 | - | - | 14,095 | - | - | ||||||||||||||
Licenses | 5,390 | 3,620 | 6 | years | 5,371 | 3,634 | 6 | years | ||||||||||||
Patents and other | ||||||||||||||||||||
intangibles | 55,897 | 29,678 | 8 | years | 56,513 | 29,353 | 8 | years | ||||||||||||
Total | $ | 541,407 | $ | 328,299 | 8 | years | $ | 574,114 | $ | 341,743 | 8 | years | ||||||||
During the three months ended April 4, 2015, the effect of foreign currency translation decreased the gross carrying value of intangible assets and accumulated amortization for intangible assets by $42 million and $24 million, respectively. Amortization expense for intangible assets was $11 million and $12 million for the three months ended April 4, 2015 and March 29, 2014, respectively. Amortization expense for intangible assets is estimated to be approximately $44 million per year for each of the next five years. |
Debt
Debt | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Debt [Abstract] | |||||||||
Debt Disclosure | 5 Debt | ||||||||
In June 2013, the Company entered into a credit agreement (the “2013 Credit Agreement”) that provides for a $1.1 billion revolving facility and a $300 million term loan facility. The revolving facility and term loan facility both mature on June 25, 2018 and require no scheduled prepayments before that date. | |||||||||
The interest rates applicable to the 2013 Credit Agreement are, at the Company's option, equal to either the alternate base rate calculated daily (which is a rate per annum equal to the greatest of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 1/2% per annum, or (c) the adjusted LIBO rate on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in U.S. dollars with a maturity of one month plus 1% per annum) or the applicable 1, 2, 3 or 6 month adjusted LIBO rate, in each case, plus an interest rate margin based upon the Company's leverage ratio, which can range between 0 to 12.5 basis points for alternate base rate loans and between 75 basis points and 112.5 basis points for adjusted LIBO rate loans. The facility fee on the 2013 Credit Agreement ranges between 12.5 basis points and 25 basis points. The 2013 Credit Agreement requires that the Company comply with an interest coverage ratio test of not less than 3.50:1 as of the end of any fiscal quarter for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. In addition, the 2013 Credit Agreement includes negative covenants, affirmative covenants, representations and warranties and events of default that are customary for investment grade credit facilities. | |||||||||
As of April 4, 2015, $125 million of the outstanding portion of the revolving facility were classified as short-term liabilities in the consolidated balance sheet due to the fact that the Company expects to repay this portion of the borrowing under the revolving line of credit within the next twelve months. The remaining $560 million of the outstanding portion of the revolving facility were classified as long-term liabilities in the consolidated balance sheet, as this portion is not expected to be repaid within the next twelve months. | |||||||||
As of April 4, 2015 and December 31, 2014, the Company had a total of $500 million and $600 million of outstanding senior unsecured notes, respectively. Interest on the fixed rate senior unsecured notes is payable semi-annually each year. Interest on the floating rate senior unsecured notes is payable quarterly. The Company may prepay all or some of the senior unsecured notes at any time in an amount not less than 10% of the aggregate principal amount outstanding, plus the applicable make-whole amount or prepayment premium for Series H senior unsecured notes. In the event of a change in control of the Company (as defined in the note purchase agreement), the Company may be required to prepay the senior unsecured notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. These senior unsecured notes require that the Company comply with an interest coverage ratio test of not less than 3.50:1 for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. In addition, these senior unsecured notes include customary negative covenants, affirmative covenants, representations and warranties and events of default. | |||||||||
The Company had the following outstanding debt at April 4, 2015 and December 31, 2014 (in thousands): | |||||||||
4-Apr-15 | 31-Dec-14 | ||||||||
Foreign subsidiary lines of credit | $ | 316 | $ | 243 | |||||
Senior unsecured notes - Series A - 3.75%, due February 2015 | - | 100,000 | |||||||
Senior unsecured notes - Series C - 2.50%, due March 2016 | 50,000 | - | |||||||
2013 Credit Agreement | 125,000 | 125,000 | |||||||
Total notes payable and debt | 175,316 | 225,243 | |||||||
Senior unsecured notes - Series B - 5.00%, due February 2020 | 100,000 | 100,000 | |||||||
Senior unsecured notes - Series C - 2.50%, due March 2016 | - | 50,000 | |||||||
Senior unsecured notes - Series D - 3.22%, due March 2018 | 100,000 | 100,000 | |||||||
Senior unsecured notes - Series E - 3.97%, due March 2021 | 50,000 | 50,000 | |||||||
Senior unsecured notes - Series F - 3.40%, due June 2021 | 100,000 | 100,000 | |||||||
Senior unsecured notes - Series G - 3.92%, due June 2024 | 50,000 | 50,000 | |||||||
Senior unsecured notes - Series H - floating rate*, due June 2024 | 50,000 | 50,000 | |||||||
2013 Credit Agreement | 860,000 | 740,000 | |||||||
Total long-term debt | 1,310,000 | 1,240,000 | |||||||
Total debt | $ | 1,485,316 | $ | 1,465,243 | |||||
* Series H senior unsecured notes bear interest at 3 month LIBOR for that floating rate interest period plus 1.25%. | |||||||||
As of April 4, 2015 and December 31, 2014, the Company had a total amount available to borrow of $413 million and $533 million, respectively, after outstanding letters of credit, under the 2013 Credit Agreement. The weighted-average interest rates applicable to the senior unsecured notes and 2013 Credit Agreement borrowings collectively were 2.09% and 2.31% at April 4, 2015 and December 31, 2014, respectively. As of April 4, 2015, the Company was in compliance with all debt covenants. | |||||||||
The Company and its foreign subsidiaries also had available short-term lines of credit totaling $87 million and $88 million at April 4, 2015 and December 31, 2014, respectively, for the purpose of short-term borrowing and issuance of commercial guarantees. At April 4, 2015 and December 31, 2014, the weighted-average interest rates applicable to these short-term borrowings were 1.12% and 1.48%, respectively. | |||||||||
On April 23, 2015, Waters entered into an amendment to the 2013 Credit Agreement. The amended credit agreement provides for an increase of the revolving commitments from $1.1 billion to $1.3 billion and extends the maturity of the original credit agreement from June 25, 2018 until April 23, 2020. The Company plans to use future proceeds from the revolving facility for general corporate purposes. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Income Taxes [Abstract] | ||||||||
Income Taxes | 6 Income Taxes | |||||||
The Company's effective tax rate was 15.3% and 15.0% for the three months ended April 4, 2015 and March 29, 2014, respectively. 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 uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those reporting positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of unrecognized tax benefits associated with those reporting positions for the time value of money. | ||||||||
The following is a summary of the activity of the Company's unrecognized tax benefits for the three months ended April 4, 2015 and March 29, 2014 (in thousands): | ||||||||
4-Apr-15 | 29-Mar-14 | |||||||
Balance at the beginning of the period | $ | 19,596 | $ | 24,716 | ||||
Net changes in uncertain tax benefits | 933 | -812 | ||||||
Balance at the end of the period | $ | 20,529 | $ | 23,904 | ||||
With limited exceptions, the Company is no longer subject to tax audit examinations in significant jurisdictions for the years ended on or before December 31, 2007. However, carryforward attributes that were generated in years beginning on or before January 1, 2010 may still be adjusted upon examination by tax authorities if the attributes are utilized. 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 4, 2015, the Company expects to record additional reductions in the measurement of its unrecognized tax benefits and related net interest and penalties of approximately $5 million within the next twelve months due to the lapsing of statutes of limitations on potential tax assessments. The Company does not expect to record any other material reductions in the measurement of its unrecognized tax benefits within the next twelve months. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||
Stock-Based Compensation | 7 Stock-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 Company's results of operations could be materially impacted. In addition, if the Company employs different assumptions in the application of these standards, 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 4, 2015 and March 29, 2014 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 | ||||||||||||||
4-Apr-15 | 29-Mar-14 | |||||||||||||
Cost of sales | $ | 674 | $ | 756 | ||||||||||
Selling and administrative expenses | 6,634 | 6,435 | ||||||||||||
Research and development expenses | 1,147 | 938 | ||||||||||||
Total stock-based compensation | $ | 8,455 | $ | 8,129 | ||||||||||
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. Treasury zero-coupon issues with a remaining term approximating the expected term used as the input to the Black-Scholes model. The relevant data used to determine the value of the stock options granted during the three months ended April 4, 2015 and March 29, 2014 are as follows: | ||||||||||||||
Options Issued and Significant Assumptions Used to Estimate Option Fair Values | 4-Apr-15 | 29-Mar-14 | ||||||||||||
Options issued in thousands | 32 | 32 | ||||||||||||
Risk-free interest rate | 1.60% | 1.90% | ||||||||||||
Expected life in years | 4 | 4 | ||||||||||||
Expected volatility | 0.267 | 0.245 | ||||||||||||
Expected dividends | - | - | ||||||||||||
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | 4-Apr-15 | 29-Mar-14 | ||||||||||||
Exercise price | $ | 113.88 | $ | 99.22 | ||||||||||
Fair value | $ | 26.94 | $ | 22.38 | ||||||||||
The following table summarizes stock option activity for the plans for the three months ended April 4, 2015 (in thousands, except per share data): | ||||||||||||||
Number of Shares | Price per Share | Weighted-Average Exercise Price | ||||||||||||
Outstanding at December 31, 2014 | 3,280 | $ | 37.84 | to | $ | 113.36 | $ | 82.85 | ||||||
Granted | 32 | $ | 113.88 | $ | 113.88 | |||||||||
Exercised | -135 | $ | 37.84 | to | $ | 98.21 | $ | 75.5 | ||||||
Canceled | -72 | $ | 79.05 | to | $ | 87.06 | $ | 83.25 | ||||||
Outstanding at April 4, 2015 | 3,105 | $ | 38.09 | to | $ | 113.88 | $ | 83.48 | ||||||
Restricted Stock | ||||||||||||||
During the three months ended April 4, 2015, the Company granted ten thousand shares of restricted stock. The fair value of these awards on the grant date was $113.88 per share. | ||||||||||||||
Restricted Stock Units | ||||||||||||||
The following table summarizes the unvested restricted stock unit award activity for the three months ended April 4, 2015 (in thousands, except for per share amounts): | ||||||||||||||
Shares | Weighted-Average Price | |||||||||||||
Unvested at December 31, 2014 | 533 | $ | 94.38 | |||||||||||
Granted | 129 | $ | 118.75 | |||||||||||
Vested | -143 | $ | 85.34 | |||||||||||
Forfeited | -2 | $ | 92.09 | |||||||||||
Unvested at April 4, 2015 | 517 | $ | 102.97 | |||||||||||
Restricted stock units are generally granted annually in February and vest in equal annual installments over a five-year period. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||||
Apr. 04, 2015 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share | 8 Earnings Per Share | ||||||||||
Basic and diluted earnings per share (“EPS”) calculations are detailed as follows (in thousands, except per share data): | |||||||||||
Three Months Ended April 4, 2015 | |||||||||||
Net Income | Weighted-Average Shares | Per Share | |||||||||
(Numerator) | (Denominator) | Amount | |||||||||
Net income per basic common share | $ | 96,061 | 83,025 | $ | 1.16 | ||||||
Effect of dilutive stock option, restricted | |||||||||||
stock and restricted stock unit securities | 727 | ||||||||||
Net income per diluted common share | $ | 96,061 | 83,752 | $ | 1.15 | ||||||
Three Months Ended March 29, 2014 | |||||||||||
Net Income | Weighted-Average Shares | Per Share | |||||||||
(Numerator) | (Denominator) | Amount | |||||||||
Net income per basic common share | $ | 70,302 | 84,977 | $ | 0.83 | ||||||
Effect of dilutive stock option, restricted | |||||||||||
stock and restricted stock unit securities | 896 | ||||||||||
Net income per diluted common share | $ | 70,302 | 85,873 | $ | 0.82 | ||||||
For both the three months ended April 4, 2015 and March 29, 2014, the Company had 0.6 million stock options that were antidilutive due to having higher exercise prices than the Company's 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. |
Retirement_Plans
Retirement Plans | 3 Months Ended | ||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||
Retirement Plans [Abstract] | |||||||||||||||||||||
Retirement Plans | 9 Retirement 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 4, 2015 and March 29, 2014 is as follows (in thousands): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
4-Apr-15 | 29-Mar-14 | ||||||||||||||||||||
U.S. | U.S. Retiree | Non-U.S. | U.S. | U.S. Retiree | Non-U.S. | ||||||||||||||||
Pension | Healthcare | Pension | Pension | Healthcare | Pension | ||||||||||||||||
Plans | Plan | Plans | Plans | Plan | Plans | ||||||||||||||||
Service cost | $ | - | $ | 262 | $ | 1,337 | $ | - | $ | 199 | $ | 1,212 | |||||||||
Interest cost | 1,513 | 118 | 402 | 1,595 | 118 | 592 | |||||||||||||||
Expected return on plan | |||||||||||||||||||||
assets | -2,318 | -122 | -410 | -2,308 | -107 | -392 | |||||||||||||||
Net amortization: | |||||||||||||||||||||
Prior service cost (credit) | - | - | 14 | - | -13 | -47 | |||||||||||||||
Net actuarial loss (gain) | 679 | - | 273 | 485 | -4 | 97 | |||||||||||||||
Net periodic pension | |||||||||||||||||||||
(benefit) cost | $ | -126 | $ | 258 | $ | 1,616 | $ | -228 | $ | 193 | $ | 1,462 | |||||||||
During fiscal year 2015, the Company expects to contribute a total of approximately $4 million to $11 million to the Company's defined benefit plans. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Business Segment Information [Abstract] | |||||||||
Business Segment Information | 10 Business Segment Information | ||||||||
The Company's business activities, for which discrete financial information is available, are regularly reviewed and evaluated by the chief operating decision maker. 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 Company's 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 Company's products and services are as follows for the three months ended April 4, 2015 and March 29, 2014 (in thousands): | |||||||||
Three Months Ended | |||||||||
4-Apr-15 | 29-Mar-14 | ||||||||
Product net sales: | |||||||||
Waters instrument systems | $ | 188,504 | $ | 176,364 | |||||
Chemistry | 78,183 | 75,203 | |||||||
TA instrument systems | 36,186 | 33,228 | |||||||
Total product sales | 302,873 | 284,795 | |||||||
Service net sales: | |||||||||
Waters service | 142,981 | 132,042 | |||||||
TA service | 14,550 | 13,671 | |||||||
Total service sales | 157,531 | 145,713 | |||||||
Total net sales | $ | 460,404 | $ | 430,508 |
Recent_Accounting_Standard_Cha
Recent Accounting Standard Changes and Developments | 3 Months Ended |
Apr. 04, 2015 | |
Recent Accounting Standard Changes and Developments [Abstract] | |
Recent Accounting Standard Changes and Developments | 11 Recent Accounting Standard Changes and Developments |
Recently Issued Accounting Standards | |
In May 2014, amended accounting guidance was issued regarding the recognition of revenue from contracts with customers. The objective of this guidance is to significantly enhance comparability and clarify principles of revenue recognition practices across entities, industries, jurisdictions and capital markets. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016; however, there is currently a proposal to delay the effective period by one year. Adoption prior to December 15, 2016 is not permitted. The Company is currently evaluating the potential impact that the adoption of this standard will have on the Company's financial position, results of operations or cash flows. | |
In April 2015, accounting guidance was issued which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. This guidance is effective for annual and interim reporting periods beginning after December 15, 2015 and early adoption is permitted. The Company is currently evaluating the potential impact that the adoption of this standard will have on the Company's financial position, results of operations or cash flows. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 04, 2015 | |
Basis of Presentation and Summary of Significant Accounting Policies (Policies) [Abstract] | |
Nature of Operations | Waters Corporation (“Waters®” or the “Company”) is an analytical instrument manufacturer that 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”) technology systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. These systems are complementary products that are frequently employed together (“LC-MS”) and sold as integrated instrument systems using a common software platform. 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”), nutritional safety analysis and environmental testing. LC-MS instruments combine 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 and stability of fine chemicals, pharmaceuticals, water, 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 Company's instruments, as well as other suppliers' instruments, and are typically purchased by customers as part of the instrument system. |
Fiscal Period Description | The Company's interim fiscal quarter typically ends on the thirteenth Saturday of each quarter. Since the Company's fiscal year end is December 31, the first and fourth fiscal quarters may have more or less than thirteen complete weeks. The Company's first fiscal quarters for 2015 and 2014 ended on April 4, 2015 and March 29, 2014, respectively. |
Basis of Accounting | The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on 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. |
It is management's opinion that the accompanying interim consolidated financial statements reflect all adjustments (which are normal and recurring) that are necessary for a fair statement of the results for the interim periods. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the U.S. Securities and Exchange Commission on February 27, 2015. | |
Consolidation Policy | 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. |
Use of Estimates | 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. |
Cash, Cash Equivalents and Investments Policy | Cash equivalents represent highly liquid investments, with original maturities of 90 days or less, while investments with longer maturities are classified as investments. |
Fair Value Measurements Policy | Fair Value Measurements |
In accordance with the accounting standards for fair value measurements and disclosures, certain of the Company's assets and liabilities are measured at fair value on a recurring basis as of April 4, 2015 and December 31, 2014. Fair values determined by Level 1 inputs utilize observable data, such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points for which there is little or no market data, which require the reporting entity to develop its own assumptions. | |
Fair Value of Other Financial Instruments | |
The Company's cash, accounts receivable, accounts payable and variable interest rate debt are recorded at cost, which approximates fair value. | |
Product Warranty Policy | Product Warranty Costs |
The Company accrues estimated product warranty costs at the time of sale, which are included in cost of sales in the consolidated statements of operations. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company's warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. The amount of the accrued warranty liability is based on historical information, such as past experience, product failure rates, number of units repaired and estimated costs of material and labor. The liability is reviewed for reasonableness at least quarterly. |
Income_Taxes_Policies
Income Taxes (Policies) | 3 Months Ended |
Apr. 04, 2015 | |
Income Taxes [Abstract] | |
Uncertain Income Tax Reporting Positions Policy | 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 uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those reporting positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of unrecognized tax benefits associated with those reporting positions for the time value of money. |
StockBased_Compensation_Polici
Stock-Based Compensation (Policies) | 3 Months Ended |
Apr. 04, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation Policy | 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 Company's results of operations could be materially impacted. In addition, if the Company employs different assumptions in the application of these standards, the compensation expense that the Company records in the future periods may differ significantly from what the Company has recorded in the current period. |
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. Treasury zero-coupon issues with a remaining term approximating the expected term used as the input to the Black-Scholes model. |
Earnings_Per_Share_Policies
Earnings Per Share (Policies) | 3 Months Ended |
Apr. 04, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Policy | The effect of dilutive securities was calculated using the treasury stock method. |
Recent_Accounting_Standard_Cha1
Recent Accounting Standard Changes and Developments (Policies) | 3 Months Ended |
Apr. 04, 2015 | |
Recent Accounting Standard Changes and Developments [Abstract] | |
New Accounting Pronouncements | 11 Recent Accounting Standard Changes and Developments |
Recently Issued Accounting Standards | |
In May 2014, amended accounting guidance was issued regarding the recognition of revenue from contracts with customers. The objective of this guidance is to significantly enhance comparability and clarify principles of revenue recognition practices across entities, industries, jurisdictions and capital markets. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016; however, there is currently a proposal to delay the effective period by one year. Adoption prior to December 15, 2016 is not permitted. The Company is currently evaluating the potential impact that the adoption of this standard will have on the Company's financial position, results of operations or cash flows. | |
In April 2015, accounting guidance was issued which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. This guidance is effective for annual and interim reporting periods beginning after December 15, 2015 and early adoption is permitted. The Company is currently evaluating the potential impact that the adoption of this standard will have on the Company's financial position, results of operations or cash flows. |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||
Apr. 04, 2015 | |||||||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring Basis [Abstract] | |||||||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following table represents the Company's assets and liabilities measured at fair value on a recurring basis at April 4, 2015 (in thousands): | ||||||||||||||
Quoted Prices | |||||||||||||||
in Active | Significant | ||||||||||||||
Markets | Other | Significant | |||||||||||||
for Identical | Observable | Unobservable | |||||||||||||
Total at | Assets | Inputs | Inputs | ||||||||||||
4-Apr-15 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | |||||||||||||||
U.S. Treasury securities | $ | 641,693 | $ | - | $ | 641,693 | $ | - | |||||||
Foreign government securities | 24,994 | - | 24,994 | - | |||||||||||
Corporate debt securities | 1,067,736 | - | 1,067,736 | - | |||||||||||
Time deposits | 64,265 | - | 64,265 | - | |||||||||||
Equity securities | 147 | - | 147 | - | |||||||||||
Other cash equivalents | 29,000 | - | 29,000 | - | |||||||||||
Waters 401(k) Restoration Plan assets | 35,678 | - | 35,678 | - | |||||||||||
Foreign currency exchange contracts | 445 | - | 445 | - | |||||||||||
Total | $ | 1,863,958 | $ | - | $ | 1,863,958 | $ | - | |||||||
Liabilities: | |||||||||||||||
Contingent consideration | $ | 3,780 | $ | - | $ | - | $ | 3,780 | |||||||
Foreign currency exchange contracts | 631 | - | 631 | - | |||||||||||
Total | $ | 4,411 | $ | - | $ | 631 | $ | 3,780 | |||||||
The following table represents the Company's assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands): | |||||||||||||||
Quoted Prices | |||||||||||||||
in Active | Significant | ||||||||||||||
Markets | Other | Significant | |||||||||||||
Total at | for Identical | Observable | Unobservable | ||||||||||||
December 31, | Assets | Inputs | Inputs | ||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | |||||||||||||||
U.S. Treasury securities | $ | 626,772 | $ | - | $ | 626,772 | $ | - | |||||||
Foreign government securities | 24,998 | - | 24,998 | - | |||||||||||
Corporate debt securities | 984,105 | - | 984,105 | - | |||||||||||
Time deposits | 64,240 | - | 64,240 | - | |||||||||||
Equity securities | 147 | - | 147 | - | |||||||||||
Other cash equivalents | 29,000 | - | 29,000 | - | |||||||||||
Waters 401(k) Restoration Plan assets | 33,935 | - | 33,935 | - | |||||||||||
Foreign currency exchange contracts | 123 | - | 123 | - | |||||||||||
Total | $ | 1,763,320 | $ | - | $ | 1,763,320 | $ | - | |||||||
Liabilities: | |||||||||||||||
Contingent consideration | $ | 3,612 | $ | - | $ | - | $ | 3,612 | |||||||
Foreign currency exchange contracts | 651 | - | 651 | - | |||||||||||
Total | $ | 4,263 | $ | - | $ | 651 | $ | 3,612 | |||||||
Summary of Derivative Instruments by Risk Exposure [Abstract] | |||||||||||||||
Gains (Losses) on Foreign Currency Exchange Contracts | The following is a summary of the activity in cost of sales in the statements of operations related to the forward foreign exchange contracts (in thousands): | ||||||||||||||
Three Months Ended | |||||||||||||||
4-Apr-15 | 29-Mar-14 | ||||||||||||||
Realized losses on closed contracts | $ | -3,348 | $ | -314 | |||||||||||
Unrealized gains (losses) on open contracts | 342 | -881 | |||||||||||||
Cumulative net pre-tax losses | $ | -3,006 | $ | -1,195 | |||||||||||
Fair Value of Forward Foreign Exchange Contracts | The Company's foreign currency exchange contracts included in the consolidated balance sheets are classified as follows (in thousands): | ||||||||||||||
4-Apr-15 | 31-Dec-14 | ||||||||||||||
Other current assets | $ | 445 | $ | 123 | |||||||||||
Other current liabilities | $ | 631 | $ | 651 | |||||||||||
Warranty Accrual Roll Forward [Abstract] | |||||||||||||||
Warranty Accrual Roll Forward | The following is a summary of the activity of the Company's accrued warranty liability for the three months ended April 4, 2015 and March 29, 2014 (in thousands): | ||||||||||||||
Balance at | Balance at | ||||||||||||||
Beginning | Accruals for | Settlements | End of | ||||||||||||
of Period | Warranties | Made | Period | ||||||||||||
Accrued warranty liability: | |||||||||||||||
4-Apr-15 | $ | 13,266 | $ | 1,762 | $ | -2,157 | $ | 12,871 | |||||||
29-Mar-14 | $ | 12,962 | $ | 1,752 | $ | -1,919 | $ | 12,795 |
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ||||||||||||||
Schedule of Cash, Cash Equivalents and Short-term Investments | The Company's marketable securities within cash equivalents and investments included in the consolidated balance sheets are detailed as follows (in thousands): | |||||||||||||
4-Apr-15 | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
Cost | Gain | Loss | Value | |||||||||||
U.S. Treasury securities | $ | 640,441 | $ | 1,270 | $ | -18 | $ | 641,693 | ||||||
Foreign government securities | 24,994 | - | - | 24,994 | ||||||||||
Corporate debt securities | 1,066,695 | 1,171 | -130 | 1,067,736 | ||||||||||
Time deposits | 64,265 | - | - | 64,265 | ||||||||||
Equity securities | 77 | 70 | - | 147 | ||||||||||
Total | $ | 1,796,472 | $ | 2,511 | $ | -148 | $ | 1,798,835 | ||||||
Amounts included in: | ||||||||||||||
Cash equivalents | $ | 130,588 | $ | - | $ | - | $ | 130,588 | ||||||
Investments | 1,665,884 | 2,511 | -148 | 1,668,247 | ||||||||||
Total | $ | 1,796,472 | $ | 2,511 | $ | -148 | $ | 1,798,835 | ||||||
31-Dec-14 | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
Cost | Gain | Loss | Value | |||||||||||
U.S. Treasury securities | $ | 626,683 | $ | 246 | $ | -157 | $ | 626,772 | ||||||
Foreign government securities | 24,998 | - | - | 24,998 | ||||||||||
Corporate debt securities | 984,668 | 125 | -688 | 984,105 | ||||||||||
Time deposits | 64,240 | - | - | 64,240 | ||||||||||
Equity securities | 77 | 70 | - | 147 | ||||||||||
Total | $ | 1,700,666 | $ | 441 | $ | -845 | $ | 1,700,262 | ||||||
Amounts included in: | ||||||||||||||
Cash equivalents | $ | 67,051 | $ | - | $ | - | $ | 67,051 | ||||||
Investments | 1,633,615 | 441 | -845 | 1,633,211 | ||||||||||
Total | $ | 1,700,666 | $ | 441 | $ | -845 | $ | 1,700,262 | ||||||
Investments Classified by Contractual Maturity Date | The estimated fair value of marketable debt securities by maturity date is as follows (in thousands): | |||||||||||||
4-Apr-15 | 31-Dec-14 | |||||||||||||
Due in one year or less | $ | 897,303 | $ | 872,872 | ||||||||||
Due after one year through three years | 837,120 | 763,003 | ||||||||||||
Total | $ | 1,734,423 | $ | 1,635,875 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Inventory Items, Net Of Reserves Alternative [Abstract] | ||||||||
Inventory, Net of Reserves | Inventories are classified as follows (in thousands): | |||||||
4-Apr-15 | 31-Dec-14 | |||||||
Raw materials | $ | 85,943 | $ | 84,952 | ||||
Work in progress | 19,513 | 16,749 | ||||||
Finished goods | 152,074 | 144,729 | ||||||
Total inventories | $ | 257,530 | $ | 246,430 |
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 3 Months Ended | |||||||||||||||||||
Apr. 04, 2015 | ||||||||||||||||||||
Goodwill and Other Intangibles [Abstract] | ||||||||||||||||||||
Schedule of Intangible Assets by Major Class | The Company's intangible assets included in the consolidated balance sheets are detailed as follows (in thousands): | |||||||||||||||||||
4-Apr-15 | 31-Dec-14 | |||||||||||||||||||
Weighted- | Weighted- | |||||||||||||||||||
Gross | Average | Gross | Average | |||||||||||||||||
Carrying | Accumulated | Amortization | Carrying | Accumulated | Amortization | |||||||||||||||
Amount | Amortization | Period | Amount | Amortization | Period | |||||||||||||||
Capitalized software | 308,213 | 183,036 | 7 | years | 334,280 | 196,477 | 7 | years | ||||||||||||
Purchased intangibles | $ | 158,050 | $ | 111,965 | 11 | years | $ | 163,855 | $ | 112,279 | 11 | years | ||||||||
Trademarks and IPR&D | 13,857 | - | - | 14,095 | - | - | ||||||||||||||
Licenses | 5,390 | 3,620 | 6 | years | 5,371 | 3,634 | 6 | years | ||||||||||||
Patents and other | ||||||||||||||||||||
intangibles | 55,897 | 29,678 | 8 | years | 56,513 | 29,353 | 8 | years | ||||||||||||
Total | $ | 541,407 | $ | 328,299 | 8 | years | $ | 574,114 | $ | 341,743 | 8 | years |
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Debt [Abstract] | |||||||||
Schedule of Outstanding Debt | The Company had the following outstanding debt at April 4, 2015 and December 31, 2014 (in thousands): | ||||||||
4-Apr-15 | 31-Dec-14 | ||||||||
Foreign subsidiary lines of credit | $ | 316 | $ | 243 | |||||
Senior unsecured notes - Series A - 3.75%, due February 2015 | - | 100,000 | |||||||
Senior unsecured notes - Series C - 2.50%, due March 2016 | 50,000 | - | |||||||
2013 Credit Agreement | 125,000 | 125,000 | |||||||
Total notes payable and debt | 175,316 | 225,243 | |||||||
Senior unsecured notes - Series B - 5.00%, due February 2020 | 100,000 | 100,000 | |||||||
Senior unsecured notes - Series C - 2.50%, due March 2016 | - | 50,000 | |||||||
Senior unsecured notes - Series D - 3.22%, due March 2018 | 100,000 | 100,000 | |||||||
Senior unsecured notes - Series E - 3.97%, due March 2021 | 50,000 | 50,000 | |||||||
Senior unsecured notes - Series F - 3.40%, due June 2021 | 100,000 | 100,000 | |||||||
Senior unsecured notes - Series G - 3.92%, due June 2024 | 50,000 | 50,000 | |||||||
Senior unsecured notes - Series H - floating rate*, due June 2024 | 50,000 | 50,000 | |||||||
2013 Credit Agreement | 860,000 | 740,000 | |||||||
Total long-term debt | 1,310,000 | 1,240,000 | |||||||
Total debt | $ | 1,485,316 | $ | 1,465,243 | |||||
* Series H senior unsecured notes bear interest at 3 month LIBOR for that floating rate interest period plus 1.25%. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Apr. 04, 2015 | ||||||||
Income Taxes [Abstract] | ||||||||
Unrecognized Tax Benefits Roll Forward | The following is a summary of the activity of the Company's unrecognized tax benefits for the three months ended April 4, 2015 and March 29, 2014 (in thousands): | |||||||
4-Apr-15 | 29-Mar-14 | |||||||
Balance at the beginning of the period | $ | 19,596 | $ | 24,716 | ||||
Net changes in uncertain tax benefits | 933 | -812 | ||||||
Balance at the end of the period | $ | 20,529 | $ | 23,904 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Apr. 04, 2015 | ||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||
Schedule of Stock-Based Compensation Expense | The consolidated statements of operations for the three months ended April 4, 2015 and March 29, 2014 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 | ||||||||||||||
4-Apr-15 | 29-Mar-14 | |||||||||||||
Cost of sales | $ | 674 | $ | 756 | ||||||||||
Selling and administrative expenses | 6,634 | 6,435 | ||||||||||||
Research and development expenses | 1,147 | 938 | ||||||||||||
Total stock-based compensation | $ | 8,455 | $ | 8,129 | ||||||||||
Relevant Data Used to Determine the Value of Stock Options Granted During the Period | The relevant data used to determine the value of the stock options granted during the three months ended April 4, 2015 and March 29, 2014 are as follows: | |||||||||||||
Options Issued and Significant Assumptions Used to Estimate Option Fair Values | 4-Apr-15 | 29-Mar-14 | ||||||||||||
Options issued in thousands | 32 | 32 | ||||||||||||
Risk-free interest rate | 1.60% | 1.90% | ||||||||||||
Expected life in years | 4 | 4 | ||||||||||||
Expected volatility | 0.267 | 0.245 | ||||||||||||
Expected dividends | - | - | ||||||||||||
Weighted-Average Exercise Price and Fair Value of Options on the Date of Grant | 4-Apr-15 | 29-Mar-14 | ||||||||||||
Exercise price | $ | 113.88 | $ | 99.22 | ||||||||||
Fair value | $ | 26.94 | $ | 22.38 | ||||||||||
Stock Options Outstanding Roll Forward | The following table summarizes stock option activity for the plans for the three months ended April 4, 2015 (in thousands, except per share data): | |||||||||||||
Number of Shares | Price per Share | Weighted-Average Exercise Price | ||||||||||||
Outstanding at December 31, 2014 | 3,280 | $ | 37.84 | to | $ | 113.36 | $ | 82.85 | ||||||
Granted | 32 | $ | 113.88 | $ | 113.88 | |||||||||
Exercised | -135 | $ | 37.84 | to | $ | 98.21 | $ | 75.5 | ||||||
Canceled | -72 | $ | 79.05 | to | $ | 87.06 | $ | 83.25 | ||||||
Outstanding at April 4, 2015 | 3,105 | $ | 38.09 | to | $ | 113.88 | $ | 83.48 | ||||||
Restricted Stock Units Unvested Roll Forward | The following table summarizes the unvested restricted stock unit award activity for the three months ended April 4, 2015 (in thousands, except for per share amounts): | |||||||||||||
Shares | Weighted-Average Price | |||||||||||||
Unvested at December 31, 2014 | 533 | $ | 94.38 | |||||||||||
Granted | 129 | $ | 118.75 | |||||||||||
Vested | -143 | $ | 85.34 | |||||||||||
Forfeited | -2 | $ | 92.09 | |||||||||||
Unvested at April 4, 2015 | 517 | $ | 102.97 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||||
Apr. 04, 2015 | |||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Earnings Per Share Reconciliation | Basic and diluted earnings per share (“EPS”) calculations are detailed as follows (in thousands, except per share data): | ||||||||||
Three Months Ended April 4, 2015 | |||||||||||
Net Income | Weighted-Average Shares | Per Share | |||||||||
(Numerator) | (Denominator) | Amount | |||||||||
Net income per basic common share | $ | 96,061 | 83,025 | $ | 1.16 | ||||||
Effect of dilutive stock option, restricted | |||||||||||
stock and restricted stock unit securities | 727 | ||||||||||
Net income per diluted common share | $ | 96,061 | 83,752 | $ | 1.15 | ||||||
Three Months Ended March 29, 2014 | |||||||||||
Net Income | Weighted-Average Shares | Per Share | |||||||||
(Numerator) | (Denominator) | Amount | |||||||||
Net income per basic common share | $ | 70,302 | 84,977 | $ | 0.83 | ||||||
Effect of dilutive stock option, restricted | |||||||||||
stock and restricted stock unit securities | 896 | ||||||||||
Net income per diluted common share | $ | 70,302 | 85,873 | $ | 0.82 |
Retirement_Plans_Tables
Retirement Plans (Tables) | 3 Months Ended | ||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||
Retirement Plans [Abstract] | |||||||||||||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost | The summary of the components of net periodic pension costs for the plans for the three months ended April 4, 2015 and March 29, 2014 is as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
4-Apr-15 | 29-Mar-14 | ||||||||||||||||||||
U.S. | U.S. Retiree | Non-U.S. | U.S. | U.S. Retiree | Non-U.S. | ||||||||||||||||
Pension | Healthcare | Pension | Pension | Healthcare | Pension | ||||||||||||||||
Plans | Plan | Plans | Plans | Plan | Plans | ||||||||||||||||
Service cost | $ | - | $ | 262 | $ | 1,337 | $ | - | $ | 199 | $ | 1,212 | |||||||||
Interest cost | 1,513 | 118 | 402 | 1,595 | 118 | 592 | |||||||||||||||
Expected return on plan | |||||||||||||||||||||
assets | -2,318 | -122 | -410 | -2,308 | -107 | -392 | |||||||||||||||
Net amortization: | |||||||||||||||||||||
Prior service cost (credit) | - | - | 14 | - | -13 | -47 | |||||||||||||||
Net actuarial loss (gain) | 679 | - | 273 | 485 | -4 | 97 | |||||||||||||||
Net periodic pension | |||||||||||||||||||||
(benefit) cost | $ | -126 | $ | 258 | $ | 1,616 | $ | -228 | $ | 193 | $ | 1,462 |
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Business Segment Information [Abstract] | |||||||||
Revenue from External Customers by Products and Services | Net sales for the Company's products and services are as follows for the three months ended April 4, 2015 and March 29, 2014 (in thousands): | ||||||||
Three Months Ended | |||||||||
4-Apr-15 | 29-Mar-14 | ||||||||
Product net sales: | |||||||||
Waters instrument systems | $ | 188,504 | $ | 176,364 | |||||
Chemistry | 78,183 | 75,203 | |||||||
TA instrument systems | 36,186 | 33,228 | |||||||
Total product sales | 302,873 | 284,795 | |||||||
Service net sales: | |||||||||
Waters service | 142,981 | 132,042 | |||||||
TA service | 14,550 | 13,671 | |||||||
Total service sales | 157,531 | 145,713 | |||||||
Total net sales | $ | 460,404 | $ | 430,508 |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 1 Months Ended | 35 Months Ended | ||
Share data in Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | 31-May-14 | Apr. 04, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | |||||
Notional amount of foreign exchange contracts | $109,000,000 | $109,000,000 | $110,000,000 | ||
Cumulative net pre-tax losses on foreign exchange contracts | -3,006,000 | -1,195,000 | |||
Realized losses on foreign exchange contracts | -3,348,000 | -314,000 | |||
Unrealized gains (losses) on foreign exchange contracts | 342,000 | -881,000 | |||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 1,798,835,000 | 1,798,835,000 | 1,700,262,000 | ||
Other cash equivalents | 29,000,000 | 29,000,000 | 29,000,000 | ||
Waters 401(k) Restoration Plan assets | 35,678,000 | 35,678,000 | 33,935,000 | ||
Forward foreign exchange contract assets | 445,000 | 445,000 | 123,000 | ||
Fair value of total assets measured on a recurring basis | 1,863,958,000 | 1,863,958,000 | 1,763,320,000 | ||
Contingent consideration | 3,780,000 | 3,780,000 | 3,612,000 | ||
Forward foreign exchange contract liabilities | 631,000 | 631,000 | 651,000 | ||
Fair value of total liabilities measured on a recurring basis | 4,411,000 | 4,411,000 | 4,263,000 | ||
Cash Equivalents and Investments [Line Items] | |||||
Cash equivalents description | Cash equivalents represent highly liquid investments, with original maturities of 90 days or less, while investments with longer maturities are classified as investments. | ||||
Cash, cash equivalents and investments | 2,109,000,000 | 2,109,000,000 | 2,055,000,000 | ||
Debt [Line Items] | |||||
Long-term debt | 1,310,000,000 | 1,310,000,000 | 1,240,000,000 | ||
Warranty Accrual Roll Forward [Abstract] | |||||
Accrued warranty liability, balance at beginning of period | 13,266,000 | 12,962,000 | |||
Accruals for warranties | 1,762,000 | 1,752,000 | |||
Settlements made | -2,157,000 | -1,919,000 | |||
Accrued warranty liability, balance at end of period | 12,871,000 | 12,795,000 | 12,871,000 | ||
Programs authorized by Board of Directors [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Treasury stock shares acquired | 0.7 | 0.8 | |||
Treasury stock | 85,000,000 | 86,000,000 | |||
Stock repurchase program remaining amount authorized for future purchases | 684,000,000 | 684,000,000 | |||
Related To Vesting Of Restricted Stock Units [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Treasury stock | 6,000,000 | 7,000,000 | |||
May 2014 Program [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Stock repurchase program authorization amount | 750,000,000 | ||||
Stock repurchase program period, in years | 3 years | ||||
May 2012 Program [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Treasury stock shares acquired | 7.6 | ||||
Treasury stock | 750,000,000 | ||||
Unsecured debt [Member] | |||||
Debt [Line Items] | |||||
Long-term debt | 500,000,000 | 500,000,000 | 600,000,000 | ||
Fair value of debt instruments | 515,000,000 | 515,000,000 | 608,000,000 | ||
Held by foreign subsidiaries [Member] | |||||
Cash Equivalents and Investments [Line Items] | |||||
Cash, cash equivalents and investments | 2,067,000,000 | 2,067,000,000 | 1,971,000,000 | ||
US Treasury Securities | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 641,693,000 | 641,693,000 | 626,772,000 | ||
Foreign Government Debt Securities | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 24,994,000 | 24,994,000 | 24,998,000 | ||
Corporate Debt Securities | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 1,067,736,000 | 1,067,736,000 | 984,105,000 | ||
Time Deposits | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 64,265,000 | 64,265,000 | 64,240,000 | ||
Equity Securities | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 147,000 | 147,000 | 147,000 | ||
Significant Other Observable Inputs (Level 2) | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Other cash equivalents | 29,000,000 | 29,000,000 | 29,000,000 | ||
Waters 401(k) Restoration Plan assets | 35,678,000 | 35,678,000 | 33,935,000 | ||
Forward foreign exchange contract assets | 445,000 | 445,000 | 123,000 | ||
Fair value of total assets measured on a recurring basis | 1,863,958,000 | 1,863,958,000 | 1,763,320,000 | ||
Forward foreign exchange contract liabilities | 631,000 | 631,000 | 651,000 | ||
Fair value of total liabilities measured on a recurring basis | 631,000 | 631,000 | 651,000 | ||
Significant Other Observable Inputs (Level 2) | US Treasury Securities | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 641,693,000 | 641,693,000 | 626,772,000 | ||
Significant Other Observable Inputs (Level 2) | Foreign Government Debt Securities | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 24,994,000 | 24,994,000 | 24,998,000 | ||
Significant Other Observable Inputs (Level 2) | Corporate Debt Securities | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 1,067,736,000 | 1,067,736,000 | 984,105,000 | ||
Significant Other Observable Inputs (Level 2) | Time Deposits | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 64,265,000 | 64,265,000 | 64,240,000 | ||
Significant Other Observable Inputs (Level 2) | Equity Securities | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents and Investments, Fair Value | 147,000 | 147,000 | 147,000 | ||
Significant Unobservable Inputs (Level 3) | |||||
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration | 3,780,000 | 3,780,000 | 3,612,000 | ||
Fair value of total liabilities measured on a recurring basis | $3,780,000 | $3,780,000 | $3,612,000 |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Cash Equivalents and Investments [Line Items] | ||
Amortized Cost | $1,796,472 | $1,700,666 |
Unrealized Gain | 2,511 | 441 |
Unrealized Loss | -148 | -845 |
Fair Value | 1,798,835 | 1,700,262 |
Debt securities due in one year or less | 897,303 | 872,872 |
Debt securities due after one year through three years | 837,120 | 763,003 |
Total debt securities | 1,734,423 | 1,635,875 |
Cash Equivalents [Member] | ||
Cash Equivalents and Investments [Line Items] | ||
Amortized Cost | 130,588 | 67,051 |
Fair Value | 130,588 | 67,051 |
Investments [Member] | ||
Cash Equivalents and Investments [Line Items] | ||
Amortized Cost | 1,665,884 | 1,633,615 |
Unrealized Gain | 2,511 | 441 |
Unrealized Loss | -148 | -845 |
Fair Value | 1,668,247 | 1,633,211 |
US Treasury Securities | ||
Cash Equivalents and Investments [Line Items] | ||
Amortized Cost | 640,441 | 626,683 |
Unrealized Gain | 1,270 | 246 |
Unrealized Loss | -18 | -157 |
Fair Value | 641,693 | 626,772 |
Foreign Government Debt Securities | ||
Cash Equivalents and Investments [Line Items] | ||
Amortized Cost | 24,994 | 24,998 |
Fair Value | 24,994 | 24,998 |
Corporate Debt Securities | ||
Cash Equivalents and Investments [Line Items] | ||
Amortized Cost | 1,066,695 | 984,668 |
Unrealized Gain | 1,171 | 125 |
Unrealized Loss | -130 | -688 |
Fair Value | 1,067,736 | 984,105 |
Time Deposits | ||
Cash Equivalents and Investments [Line Items] | ||
Amortized Cost | 64,265 | 64,240 |
Fair Value | 64,265 | 64,240 |
Equity Securities | ||
Cash Equivalents and Investments [Line Items] | ||
Amortized Cost | 77 | 77 |
Unrealized Gain | 70 | 70 |
Fair Value | $147 | $147 |
Inventories_Details
Inventories (Details) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Items, Net Of Reserves Alternative [Abstract] | ||
Raw materials | $85,943 | $84,952 |
Work in progress | 19,513 | 16,749 |
Finished goods | 152,074 | 144,729 |
Total inventories | $257,530 | $246,430 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Goodwill | $350,021,000 | $354,838,000 | |
Goodwill foreign currency translation adjustments | -5,000,000 | ||
Intangible Assets [Line Items] | |||
Intangible assets, gross | 541,407,000 | 574,114,000 | |
Intangible assets, accumulated amortization | 328,299,000 | 341,743,000 | |
Weighted-average useful life of acquired intangible assets | 8 years | 8 years | |
Intangible assets, gross foreign currency translation adjustments | -42,000,000 | ||
Intangible assets, accumulated amortization foreign currency translation adjustments | -24,000,000 | ||
Amortization expense | 11,000,000 | 12,000,000 | |
Future amortization expense, year 1 | 44,000,000 | ||
Future amortization expense, year 2 | 44,000,000 | ||
Future amortization expense, year 3 | 44,000,000 | ||
Future amortization expense, year 4 | 44,000,000 | ||
Future amortization expense, year 5 | 44,000,000 | ||
Capitalized software [Member] | |||
Intangible Assets [Line Items] | |||
Intangible assets, gross | 308,213,000 | 334,280,000 | |
Intangible assets, accumulated amortization | 183,036,000 | 196,477,000 | |
Weighted-average useful life of acquired intangible assets | 7 years | 7 years | |
Purchased intangibles [Member] | |||
Intangible Assets [Line Items] | |||
Intangible assets, gross | 158,050,000 | 163,855,000 | |
Intangible assets, accumulated amortization | 111,965,000 | 112,279,000 | |
Weighted-average useful life of acquired intangible assets | 11 years | 11 years | |
Trademarks and IPR&D[Member] | |||
Intangible Assets [Line Items] | |||
Intangible assets, gross | 13,857,000 | 14,095,000 | |
Licenses [Member] | |||
Intangible Assets [Line Items] | |||
Intangible assets, gross | 5,390,000 | 5,371,000 | |
Intangible assets, accumulated amortization | 3,620,000 | 3,634,000 | |
Weighted-average useful life of acquired intangible assets | 6 years | 6 years | |
Patents and other intangibles [Member] | |||
Intangible Assets [Line Items] | |||
Intangible assets, gross | 55,897,000 | 56,513,000 | |
Intangible assets, accumulated amortization | $29,678,000 | $29,353,000 | |
Weighted-average useful life of acquired intangible assets | 8 years | 8 years |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | |||
Apr. 04, 2015 | Apr. 23, 2015 | Dec. 31, 2014 | Jun. 30, 2013 | |
Debt [Line Items] | ||||
Face value of debt | $1,300,000,000 | |||
Notes payable and debt | 175,316,000 | 225,243,000 | ||
Long-term debt | 1,310,000,000 | 1,240,000,000 | ||
Total debt | 1,485,316,000 | 1,465,243,000 | ||
Senior unsecured notes - Series A [Member] | ||||
Debt [Line Items] | ||||
Stated interest rate on debt instrument | 3.75% | |||
Notes payable and debt | 100,000,000 | |||
Senior unsecured notes - Series B [Member] | ||||
Debt [Line Items] | ||||
Stated interest rate on debt instrument | 5.00% | |||
Long-term debt | 100,000,000 | 100,000,000 | ||
Senior unsecured notes - Series C [Member] | ||||
Debt [Line Items] | ||||
Stated interest rate on debt instrument | 2.50% | |||
Notes payable and debt | 50,000,000 | |||
Long-term debt | 50,000,000 | |||
Senior unsecured notes - Series D [Member] | ||||
Debt [Line Items] | ||||
Stated interest rate on debt instrument | 3.22% | |||
Long-term debt | 100,000,000 | 100,000,000 | ||
Senior unsecured notes - Series E [Member] | ||||
Debt [Line Items] | ||||
Stated interest rate on debt instrument | 3.97% | |||
Long-term debt | 50,000,000 | 50,000,000 | ||
Senior unsecured notes - Series F [Member] | ||||
Debt [Line Items] | ||||
Stated interest rate on debt instrument | 3.40% | |||
Long-term debt | 100,000,000 | 100,000,000 | ||
Senior Unsecured Notes - Series G [Member] | ||||
Debt [Line Items] | ||||
Stated interest rate on debt instrument | 3.92% | |||
Long-term debt | 50,000,000 | 50,000,000 | ||
Senior Unsecured Note - Series H [Member] | ||||
Debt [Line Items] | ||||
Interest rate terms on debt | * Series H senior unsecured notes bear interest at 3 month LIBOR for that floating rate interest period plus 1.25%. | |||
Long-term debt | 50,000,000 | 50,000,000 | ||
Foreign subsidiary lines of credit [Member] | ||||
Debt [Line Items] | ||||
Notes payable and debt | 316,000 | 243,000 | ||
Weighted-average interest rate | 1.12% | 1.48% | ||
Line of credit maximum borrowing capacity | 87,000,000 | 88,000,000 | ||
Unsecured debt [Member] | ||||
Debt [Line Items] | ||||
Call feature on debt instrument | The Company may prepay all or some of the senior unsecured notes at any time in an amount not less than 10% of the aggregate principal amount outstanding, plus the applicable make-whole amount or prepayment premium for Series H senior unsecured notes. In the event of a change in control of the Company (as defined in the note purchase agreement), the Company may be required to prepay the senior unsecured notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. | |||
Debt covenant description | These senior unsecured notes require that the Company comply with an interest coverage ratio test of not less than 3.50:1 for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. | |||
Long-term debt | 500,000,000 | 600,000,000 | ||
Credit Agreement dated June 2013 [Member] | ||||
Debt [Line Items] | ||||
Interest rate terms on debt | The interest rates applicable to the 2013 Credit Agreement are, at the Company’s option, equal to either the alternate base rate calculated daily (which is a rate per annum equal to the greatest of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 1/2% per annum, or (c) the adjusted LIBO rate on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in U.S. dollars with a maturity of one month plus 1% per annum) or the applicable 1, 2, 3 or 6 month adjusted LIBO rate, in each case, plus an interest rate margin based upon the Company’s leverage ratio, which can range between 0 to 12.5 basis points for alternate base rate loans and between 75 basis points and 112.5 basis points for adjusted LIBO rate loans. | |||
Debt facility fee | The facility fee on the 2013 Credit Agreement ranges between 12.5 basis points and 25 basis points. | |||
Debt covenant description | The 2013 Credit Agreement requires that the Company comply with an interest coverage ratio test of not less than 3.50:1 as of the end of any fiscal quarter for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. | |||
Notes payable and debt | 125,000,000 | 125,000,000 | ||
Long-term debt | 860,000,000 | 740,000,000 | ||
Unused borrowing capacity | 413,000,000 | 533,000,000 | ||
Credit Agreement dated June 2013 [Member] | Term loan facility [Member] | ||||
Debt [Line Items] | ||||
Face value of debt | 300,000,000 | |||
Credit Agreement dated June 2013 [Member] | Revolving facilities [Member] | ||||
Debt [Line Items] | ||||
Face value of debt | 1,100,000,000 | |||
Notes payable and debt | 125,000,000 | |||
Long-term debt | $560,000,000 | |||
Credit Agreement dated July 2013 and unsecured debt [Member] | ||||
Debt [Line Items] | ||||
Weighted-average interest rate | 2.09% | 2.31% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits, balance at the beginning of the period | $19,596,000 | $24,716,000 |
Other changes in uncertain tax benefits | 933,000 | -812,000 |
Unrecognized tax benefits, balance at the end of the period | 20,529,000 | 23,904,000 |
Expected change in unrecognized tax benefits in the next twelve months | ($5,000,000) | |
Income Taxes [Line Items] | ||
Effective income tax rate | 15.30% | 15.00% |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Stock-Based Compensation Allocation of Recognized Period Expense [Line Items] | ||
Allocated stock-based compensation expense | $8,455,000 | $8,129,000 |
Stock Options Outstanding Roll Forward [Line Items] | ||
Options outstanding at beginning of period | 3,280 | |
Options granted | 32 | 32 |
Options exercised | -135 | |
Options canceled | -72 | |
Options outstanding at end of period | 3,105 | |
Weighted-average exercise price of options outstanding at beginning of period | $82.85 | |
Weighted-average exercise price of options granted | $113.88 | $99.22 |
Weighted-average exercise price of options exercised | $75.50 | |
Weighted average exercise price of options canceled | $83.25 | |
Weighted-average exercise price of options outstanding at end of period | $83.48 | |
Stock Option Fair Value Assumptions and Methodology [Abstract] | ||
Stock option fair value assumptions, risk free interest rate | 1.60% | 1.90% |
Stock option fair value assumptions, expected life in years | 4 years | 4 years |
Stock option fair value assumptions, expected volatility | 26.70% | 24.50% |
Stock option fair value assumptions, expected dividends | 0 | 0 |
Weighted-average grant date fair value of options granted | $26.94 | $22.38 |
Minimum | ||
Stock Options Outstanding Roll Forward [Line Items] | ||
Weighted-average exercise price of options outstanding at beginning of period | $37.84 | |
Weighted-average exercise price of options exercised | $37.84 | |
Weighted average exercise price of options canceled | $79.05 | |
Weighted-average exercise price of options outstanding at end of period | $38.09 | |
Maximum | ||
Stock Options Outstanding Roll Forward [Line Items] | ||
Weighted-average exercise price of options outstanding at beginning of period | $113.36 | |
Weighted-average exercise price of options exercised | $98.21 | |
Weighted average exercise price of options canceled | $87.06 | |
Weighted-average exercise price of options outstanding at end of period | $113.88 | |
Restricted Stock Plan [Member] | ||
Stock-Based Compensation by Award [Line Items] | ||
Shares granted | 10 | |
Weighted-average grant date fair value of shares granted | $113.88 | |
Restricted Stock Unit Plan [Member] | ||
Stock-Based Compensation by Award [Line Items] | ||
Unvested shares at beginning of period | 533 | |
Shares granted | 129 | |
Shares vested | -143 | |
Shares forfeited | -2 | |
Unvested shares at end of period | 517 | |
Weighted-average grant date fair value of shares unvested at beginning of period | $94.38 | |
Weighted-average grant date fair value of shares granted | $118.75 | |
Weighted-average grant date fair value of shares vested | $85.34 | |
Weighted-average grant date fair value of shares forfeited | $92.09 | |
Weighted-average grant date fair value of shares unvested at end of period | $102.97 | |
Award vesting period | 5 years | |
Cost of sales [Member] | ||
Stock-Based Compensation Allocation of Recognized Period Expense [Line Items] | ||
Allocated stock-based compensation expense | 674,000 | 756,000 |
Selling and administrative expenses [Member] | ||
Stock-Based Compensation Allocation of Recognized Period Expense [Line Items] | ||
Allocated stock-based compensation expense | 6,634,000 | 6,435,000 |
Research and development expenses [Member] | ||
Stock-Based Compensation Allocation of Recognized Period Expense [Line Items] | ||
Allocated stock-based compensation expense | $1,147,000 | $938,000 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 600,000 | 600,000 |
Earnings Per Share Reconciliation [Abstract] | ||
Net income | $96,061 | $70,302 |
Net income per basic common share | $1.16 | $0.83 |
Net income per diluted common share | $1.15 | $0.82 |
Weighted-average number of basic common shares | 83,025,000 | 84,977,000 |
Effect of dilutive stock option, restricted stock and restricted stock unit securities | 727,000 | 896,000 |
Weighted-average number of diluted common shares and equivalents | 83,752,000 | 85,873,000 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 3 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated future employer contributions to defined benefit plans in current fiscal year | $4,000,000 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated future employer contributions to defined benefit plans in current fiscal year | 11,000,000 | |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 1,513,000 | 1,595,000 |
Expected return on plan assets | -2,318,000 | -2,308,000 |
Net amortization: Net actuarial loss (gain) | 679,000 | 485,000 |
Net periodic pension (benefit) cost | -126,000 | -228,000 |
U.S. Retiree Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 262,000 | 199,000 |
Interest cost | 118,000 | 118,000 |
Expected return on plan assets | -122,000 | -107,000 |
Net amortization: Prior service cost (credit) | -13,000 | |
Net amortization: Net actuarial loss (gain) | -4,000 | |
Net periodic pension (benefit) cost | 258,000 | 193,000 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,337,000 | 1,212,000 |
Interest cost | 402,000 | 592,000 |
Expected return on plan assets | -410,000 | -392,000 |
Net amortization: Prior service cost (credit) | 14,000 | -47,000 |
Net amortization: Net actuarial loss (gain) | 273,000 | 97,000 |
Net periodic pension (benefit) cost | $1,616,000 | $1,462,000 |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Entity-Wide Revenue from External Customers [Line Items] | ||
Number of operating segments | 2 | |
Number of reportable segments | 1 | |
Product sales | $302,873 | $284,795 |
Service sales | 157,531 | 145,713 |
Total net sales | 460,404 | 430,508 |
Waters instrument systems [Member] | ||
Entity-Wide Revenue from External Customers [Line Items] | ||
Product sales | 188,504 | 176,364 |
Chemistry [Member] | ||
Entity-Wide Revenue from External Customers [Line Items] | ||
Product sales | 78,183 | 75,203 |
TA instrument systems [Member] | ||
Entity-Wide Revenue from External Customers [Line Items] | ||
Product sales | 36,186 | 33,228 |
Waters service [Member] | ||
Entity-Wide Revenue from External Customers [Line Items] | ||
Service sales | 142,981 | 132,042 |
TA service [Member] | ||
Entity-Wide Revenue from External Customers [Line Items] | ||
Service sales | $14,550 | $13,671 |