Cover Page
Cover Page - shares | 6 Months Ended | |
Jul. 01, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Interactive Data Current | Yes | |
Entity Central Index Key | 0001000697 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 01, 2023 | |
Entity Registrant Name | Waters Corporation | |
Entity File Number | 01-14010 | |
Entity Tax Identification Number | 13-3668640 | |
Entity Incorporation, State or Country Code | DE | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 34 Maple Street | |
Entity Address, City or Town | Milford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01757 | |
City Area Code | 508 | |
Local Phone Number | 478-2000 | |
Trading Symbol | WAT | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Entity Common Stock, Shares Outstanding | 59,102,922 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 329,693 | $ 480,529 |
Investments | 885 | 862 |
Accounts receivable, net | 693,436 | 722,892 |
Inventories | 536,828 | 455,710 |
Other current assets | 120,342 | 103,910 |
Total current assets | 1,681,184 | 1,763,903 |
Property, plant and equipment, net | 615,211 | 582,217 |
Intangible assets, net | 649,731 | 227,399 |
Goodwill | 1,313,501 | 430,328 |
Operating lease assets | 92,412 | 86,506 |
Other assets | 196,157 | 191,100 |
Total assets | 4,548,196 | 3,281,453 |
Current liabilities: | ||
Notes payable and debt | 50,000 | 50,000 |
Accounts payable | 81,918 | 93,302 |
Accrued employee compensation | 35,522 | 103,300 |
Deferred revenue and customer advances | 324,665 | 227,908 |
Current operating lease liabilities | 25,908 | 26,429 |
Accrued income taxes | 121,294 | 132,545 |
Accrued warranty | 12,409 | 11,949 |
Other current liabilities | 157,671 | 140,304 |
Total current liabilities | 809,387 | 785,737 |
Long-term liabilities: | ||
Long-term debt | 2,580,198 | 1,524,878 |
Long-term portion of retirement benefits | 43,565 | 38,203 |
Long-term income tax liabilities | 154,376 | 248,496 |
Long-term operating lease liabilities | 66,856 | 62,108 |
Other long-term liabilities | 122,585 | 117,543 |
Total long-term liabilities | 2,967,580 | 1,991,228 |
Total liabilities | 3,776,967 | 2,776,965 |
Commitments and contingencies (Notes 7, 8 and 9) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none issued at July 1, 2023 and December 31, 2022 | 0 | 0 |
Common stock, par value $0.01 per share, 400,000 shares authorized, 162,576 and 162,425 shares issued, 59,046 and 59,104 shares outstanding at July 1, 2023 and December 31, 2022, respectively | 1,626 | 1,624 |
Additional paid-in capital | 2,232,055 | 2,199,824 |
Retained earnings | 8,800,064 | 8,508,587 |
Treasury stock, at cost, 103,530 and 103,321 shares at July 1, 2023 and December 31, 2022, respectively | (10,133,716) | (10,063,975) |
Accumulated other comprehensive loss | (128,800) | (141,572) |
Total stockholders' equity | 771,229 | 504,488 |
Total liabilities and stockholders' equity | $ 4,548,196 | $ 3,281,453 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000 | 400,000 |
Common stock, shares issued | 162,576 | 162,425 |
Common stock, shares outstanding | 59,046 | 59,104 |
Treasury stock, shares | 103,530 | 103,321 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Revenues: | ||||
Total net sales | $ 740,576 | $ 714,319 | $ 1,425,250 | $ 1,404,891 |
Costs and operating expenses: | ||||
Selling and administrative expenses | 186,953 | 161,877 | 368,909 | 319,352 |
Research and development expenses | 45,873 | 44,006 | 88,564 | 84,478 |
Purchased intangibles amortization | 6,815 | 1,598 | 8,294 | 3,271 |
Acquired in-process research and development | 0 | 9,797 | ||
Total costs and operating expenses | 540,717 | 514,687 | 1,051,223 | 1,009,789 |
Operating income | 199,859 | 199,632 | 374,027 | 395,102 |
Other (expense) income, net | (352) | 1,535 | 1,036 | 1,705 |
Interest expense | (23,272) | (11,419) | (37,716) | (22,478) |
Interest income | 4,040 | 2,526 | 8,101 | 4,640 |
Income before income taxes | 180,275 | 192,274 | 345,448 | 378,969 |
Provision for income taxes | 29,721 | 27,410 | 53,971 | 54,274 |
Net income | $ 150,554 | $ 164,864 | $ 291,477 | $ 324,695 |
Net income per basic common share | $ 2.56 | $ 2.74 | $ 4.97 | $ 5.38 |
Weighted-average number of basic common shares | 58,857 | 60,206 | 58,703 | 60,399 |
Net income per diluted common share | $ 2.55 | $ 2.72 | $ 4.95 | $ 5.35 |
Weighted-average number of diluted common shares and equivalents | 59,010 | 60,510 | 58,909 | 60,744 |
Product [Member] | ||||
Revenues: | ||||
Total net sales | $ 477,926 | $ 469,630 | $ 914,383 | $ 920,470 |
Costs and operating expenses: | ||||
Costs and operating expenses | 194,354 | 202,356 | 374,708 | 393,966 |
Service [Member] | ||||
Revenues: | ||||
Total net sales | 262,650 | 244,689 | 510,867 | 484,421 |
Costs and operating expenses: | ||||
Costs and operating expenses | $ 106,722 | $ 104,850 | $ 210,748 | $ 198,925 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 150,554 | $ 164,864 | $ 291,477 | $ 324,695 |
Other comprehensive income (loss): | ||||
Foreign currency translation | 3,984 | (24,307) | 12,767 | (30,476) |
Unrealized gains on investments before income taxes | 0 | 11 | 0 | 26 |
Income tax expense | 0 | (2) | 0 | (6) |
Unrealized gains on investments, net of tax | 0 | 9 | 0 | 20 |
Retirement liability adjustment before reclassifications | 91 | 720 | 171 | 988 |
Amounts reclassified to other income, net | (84) | 120 | (167) | 247 |
Retirement liability adjustment before income taxes | 7 | 840 | 4 | 1,235 |
Income tax benefit (expense) | 5 | (206) | 1 | (303) |
Retirement liability adjustment, net of tax | 12 | 634 | 5 | 932 |
Other comprehensive income (loss) | 3,996 | (23,664) | 12,772 | (29,524) |
Comprehensive income | $ 154,550 | $ 141,200 | $ 304,249 | $ 295,171 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 291,477 | $ 324,695 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 23,734 | 20,722 |
Deferred income taxes | (6,435) | (12,523) |
Depreciation | 40,172 | 36,956 |
Amortization of intangibles | 29,866 | 29,935 |
Acquired in-process research and development and other non-cash items | 0 | 7,903 |
Change in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 50,273 | (57,377) |
Increase in inventories | (63,607) | (65,070) |
Increase in other current assets | (19,044) | (9,199) |
Decrease in other assets | 12 | 4,658 |
Decrease in accounts payable and other current liabilities | (122,836) | (32,197) |
Increase in deferred revenue and customer advances | 81,659 | 70,027 |
Decrease in other liabilities | (90,402) | (63,667) |
Net cash provided by operating activities | 214,869 | 254,863 |
Cash flows from investing activities: | ||
Additions to property, plant, equipment and software capitalization | (80,997) | (74,746) |
Business acquisitions, net of cash acquired | (1,285,907) | 0 |
Proceeds from equity investments, net | 0 | 5,646 |
Payments for intellectual property licenses | 0 | (4,897) |
Purchases of investments | (893) | (10,959) |
Maturities and sales of investments | 877 | 77,553 |
Net cash used in investing activities | (1,366,920) | (7,403) |
Cash flows from financing activities: | ||
Proceeds from debt issuances | 1,450,040 | 105,000 |
Payments on debt | (395,040) | (135,000) |
Payments of debt issuance costs | (218) | 0 |
Proceeds from stock plans | 8,628 | 30,914 |
Purchases of treasury shares | (69,741) | (321,944) |
Proceeds from derivative contracts | 5,294 | 10,849 |
Net cash provided by (used in) financing activities | 998,963 | (310,181) |
Effect of exchange rate changes on cash and cash equivalents | 2,252 | (19,616) |
Decrease in cash and cash equivalents | (150,836) | (82,337) |
Cash and cash equivalents at beginning of period | 480,529 | 501,234 |
Cash and cash equivalents at end of period | $ 329,693 | $ 418,897 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2021 | $ 367,554 | $ 1,621 | $ 2,114,880 | $ 7,800,832 | $ (9,437,914) | $ (111,865) |
Beginning Balance, shares at Dec. 31, 2021 | 162,084 | |||||
Net income | 324,695 | 324,695 | ||||
Other comprehensive income (loss) | (29,524) | (29,524) | ||||
Issuance of common stock for Employee Stock Purchase Plan | 5,886 | 5,886 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 19 | |||||
Issuance of common stock for stock options exercised | 25,615 | $ 1 | 25,614 | |||
Issuance of common stock for stock options exercised, shares | 150 | |||||
Treasury stock | (321,944) | (321,944) | ||||
Stock-based compensation | 19,842 | $ 1 | 19,841 | |||
Stock-based compensation, shares | 95 | |||||
Ending balance at Jul. 02, 2022 | 392,124 | $ 1,623 | 2,166,221 | 8,125,527 | (9,759,858) | (141,389) |
Ending Balance, shares at Jul. 02, 2022 | 162,348 | |||||
Beginning balance at Apr. 02, 2022 | 374,937 | $ 1,623 | 2,138,426 | 7,960,663 | (9,608,050) | (117,725) |
Beginning Balance, shares at Apr. 02, 2022 | 162,252 | |||||
Net income | 164,864 | 164,864 | ||||
Other comprehensive income (loss) | (23,664) | (23,664) | ||||
Issuance of common stock for Employee Stock Purchase Plan | 3,559 | 3,559 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 11 | |||||
Issuance of common stock for stock options exercised | 14,523 | 14,523 | ||||
Issuance of common stock for stock options exercised, shares | 81 | |||||
Treasury stock | (151,808) | (151,808) | ||||
Stock-based compensation | 9,713 | 9,713 | ||||
Stock-based compensation, shares | 4 | |||||
Ending balance at Jul. 02, 2022 | 392,124 | $ 1,623 | 2,166,221 | 8,125,527 | (9,759,858) | (141,389) |
Ending Balance, shares at Jul. 02, 2022 | 162,348 | |||||
Beginning balance at Dec. 31, 2022 | 504,488 | $ 1,624 | 2,199,824 | 8,508,587 | (10,063,975) | (141,572) |
Beginning Balance, shares at Dec. 31, 2022 | 162,425 | |||||
Net income | 291,477 | 291,477 | ||||
Other comprehensive income (loss) | 12,772 | 12,772 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 5,933 | 5,933 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 21 | |||||
Issuance of common stock for stock options exercised | 3,285 | 3,285 | ||||
Issuance of common stock for stock options exercised, shares | 17 | |||||
Treasury stock | (69,741) | (69,741) | ||||
Stock-based compensation | 23,015 | $ 2 | 23,013 | |||
Stock-based compensation, shares | 113 | |||||
Ending balance at Jul. 01, 2023 | 771,229 | $ 1,626 | 2,232,055 | 8,800,064 | (10,133,716) | (128,800) |
Ending Balance, shares at Jul. 01, 2023 | 162,576 | |||||
Beginning balance at Apr. 01, 2023 | 599,823 | $ 1,626 | 2,214,963 | 8,649,510 | (10,133,480) | (132,796) |
Beginning Balance, shares at Apr. 01, 2023 | 162,550 | |||||
Net income | 150,554 | 150,554 | ||||
Other comprehensive income (loss) | 3,996 | 3,996 | ||||
Issuance of common stock for Employee Stock Purchase Plan | 3,933 | 3,933 | ||||
Issuance of common stock for Employee Stock Purchase Plan, shares | 13 | |||||
Issuance of common stock for stock options exercised | 2,316 | 2,316 | ||||
Issuance of common stock for stock options exercised, shares | 11 | |||||
Treasury stock | (236) | (236) | ||||
Stock-based compensation | 10,843 | 10,843 | ||||
Stock-based compensation, shares | 2 | |||||
Ending balance at Jul. 01, 2023 | $ 771,229 | $ 1,626 | $ 2,232,055 | $ 8,800,064 | $ (10,133,716) | $ (128,800) |
Ending Balance, shares at Jul. 01, 2023 | 162,576 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1 Basis of Presentation and Summary of Significant Accounting Policies Waters Corporation (the “Company,” “we,” “our,” or “us”) is a specialty measurement company that operates with a fundamental underlying purpose to advance the science that enables our customers to enhance human health and well-being. The Company has pioneered analytical workflow solutions involving liquid chromatography, mass spectrometry and thermal analysis innovations serving the life, materials and food sciences for more than 60 years. The Company primarily designs, manufactures, sells and services high-performance liquid chromatography (“HPLC”), ultra-performance liquid chromatography (“UPLC TM (“LC-MS”) LC-MS TM On May 16, 2023, the Company completed the acquisition of Wyatt Technology, LLC and its three operating subsidiaries, Wyatt Technology Europe GmbH, Wyatt Technology France and Wyatt Technology UK Ltd. (collectively, “Wyatt”), for a total purchase price of $1.3 billion in cash. Wyatt is a pioneer in innovative light scattering and field-flow fractionation instruments, software, accessories and services. The acquisition will expand Waters’ portfolio and increase exposure to large molecule applications. The Company financed this transaction with a combination of cash on its balance sheet and borrowings under its revolving credit facility. The Company’s interim consolidated financial statements for the three and six months ended July 1, 2023 include Wyatt’s operating results from May 16, 2023 to July 1, 2023. 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 second fiscal quarters for 2023 and 2022 ended on July 1, 2023 and July 2, 2022, respectively. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on Form 10-Q The preparation of consolidated financial statements in conformity with U.S. 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 Risks and Uncertainties The Company is subject to risks common to companies in the analytical instrument industry, including, but not limited to, global economic and financial market conditions, fluctuations in foreign currency exchange rates, fluctuations in customer demand, development by its competitors of new technological innovations, costs of developing new technologies, levels of debt and debt service requirements, risk of disruption, dependence on key personnel, protection and litigation of proprietary technology, shifts in taxable income between tax jurisdictions and compliance with regulations of the U.S. Food and Drug Administration and similar foreign regulatory authorities and agencies. Through the date of the issuance of these financial statements, the Company’s consolidated financial position, results of operations and cash flows have not been materially impacted and, thus, the Company concluded that no interim goodwill or long-lived asset impairment analyses were required. Further, there have been no violations of debt covenants. Any prolonged material disruption to the Company’s employees, suppliers, manufacturing, or customers could result in a material impact to its consolidated financial position, results of operations or cash flows in the future. Translation of Foreign Currencies The functional currency of each of the Company’s foreign operating subsidiaries is the local currency of its country of domicile, except for the Company’s subsidiaries in Hong Kong, Singapore and the Cayman Islands, where the underlying transactional cash flows are denominated in currencies other than the respective local currency of domicile. The functional currency of the Hong Kong, Singapore and Cayman Islands subsidiaries is the U.S. dollar, based on the respective entity’s cash flows. For the Company’s foreign operations, assets and liabilities are translated into U.S. dollars at exchange rates prevailing on the balance sheet date, while revenues and expenses are translated at average exchange rates prevailing during the respective period. Any resulting translation gains or losses are included in accumulated other comprehensive loss in the consolidated balance sheets. 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 the U.S. dollar. As of July 1, 2023 and December 31, 2022, $272 million out of $331 million and $472 million out of $481 million, respectively, of the Company’s total cash, cash equivalents and investments were held by foreign subsidiaries. In addition, $184 million out of $331 million and $336 million out of $481 million of cash, cash equivalents and investments were held in currencies other than the U.S. dollar at July 1, 2023 and December 31, 2022, respectively. Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company has very limited use of rebates and other cash considerations payable to customers and, as a result, the transaction price determination does not have any material variable consideration. The Company does not consider there to be significant concentrations of credit risk with respect to trade receivables due to the short-term nature of the balances, the Company having a large and diverse customer base, and the Company having a strong historical experience of collecting receivables with minimal defaults. As a result, credit risk is considered low across territories and trade receivables are considered to be a single class of financial asset. The allowance for credit losses is based on a number of factors and is calculated by applying a historical loss rate to trade receivable aging balances to estimate a general reserve balance along with an additional adjustment for any specific receivables with known or anticipated issues affecting the likelihood of recovery. Past due balances with a probability of default based on historical data as well as relevant available forward-looking information are included in the specific adjustment. The historical loss rate is reviewed on at least an annual basis and the allowance for credit losses is reviewed quarterly for any required adjustments. The Company does not have any off-balance Trade receivables related to instrument sales are collateralized by the instrument that is sold. If there is a risk of default related to a receivable that is collateralized, then the fair value of the collateral is calculated and adjusted for the cost to re-possess, re-sell The following is a summary of the activity of the Company’s allowance for credit losses for the six months ended July 1, 2023 and July 2, 2022 (in thousands): Balance at Balance at of Period Additions Deductions Period Allowance for Credit Losses July 1, 2023 $ 14,311 $ 3,075 $ (2,432 ) $ 14,954 July 2, 2022 $ 13,228 $ 3,690 $ (3,571 ) $ 13,347 Other Investments During the six months ended July 1, 2023, the Company did not have any other investment activity. During the six months ended July 2, 2022, the Company recorded a realized gain of $4 million in other income, net in the consolidated statement of operations due to the sale of an equity investment as well as incurring $4 million in impairment losses on an equity investment. Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Accordingly, at the date of each acquisition, the Company measures the fair value of all identifiable assets acquired (including intangible assets) and liabilities assumed and allocates the amounts paid to all items measured. The fair value of identifiable intangible assets acquired is based on valuations that use information and assumptions determined by management and which consider management’s best estimates of inputs and assumptions that a market participant would use. Any excess of the fair value consideration transferred over the estimated fair values of the net assets acquired is recognized as goodwill. Goodwill and Other Intangible Assets The Company evaluates goodwill for impairment on an annual basis, or on an interim basis when events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level, which is the operating segment or one level below an operating segment. The Company has the option of performing a qualitative assessment to determine whether further impairment testing is necessary before performing the quantitative assessment. If, as a result of the qualitative assessment, it is more-likely-than-not TM TM The Company’s intangible assets include purchased technology; capitalized software; costs associated with acquiring Company patents, trademarks and intellectual properties, such as licenses; and acquired IPR&D. Purchased intangibles are recorded at their fair market values as of the acquisition date and amortized over their estimated useful lives, ranging from one one 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 July 1, 2023 and December 31, 2022. 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 July 1, 2023 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 885 $ — $ 885 $ — Waters 401(k) Restoration Plan assets 28,485 28,485 — — Foreign currency exchange contracts 53 — 53 — Interest rate cross-currency swap agreements 11,889 — 11,889 — Total $ 41,312 $ 28,485 $ 12,827 $ — Liabilities: Foreign currency exchange contracts $ 211 $ — $ 211 $ — Interest rate cross-currency swap agreements 6,164 — 6,164 — Total $ 6,375 $ — $ 6,375 $ — The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 862 $ — $ 862 $ — Waters 401(k) Restoration Plan assets 25,532 25,532 — — Foreign currency exchange contracts 231 — 231 — Interest rate cross-currency swap agreements 19,163 — 19,163 — Total $ 45,788 $ 25,532 $ 20,256 $ — Liabilities: Contingent consideration $ 1,509 $ — $ — $ 1,509 Foreign currency exchange contracts 98 — 98 — Interest rate cross-currency swap agreements 4,783 — 4,783 — Total $ 6,390 $ — $ 4,881 $ 1,509 Fair Value of 401(k) Restoration Plan Assets The 401(k) Restoration Plan is a nonqualified defined contribution plan and the assets were held in registered mutual funds and have been classified as Level 1. The fair values of the assets in the plan are determined through market and observable sources from daily quoted prices on nationally recognized securities exchanges. Fair Value of Cash Equivalents, Investments, Foreign Currency Exchange Contracts and Interest Rate Cross-Currency Swap Agreements The fair values of the Company’s cash equivalents, investments, foreign currency exchange contracts and interest rate cross-currency swap agreements 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. Fair Value of Other Financial Instruments The Company’s accounts receivable and accounts payable are recorded at cost, which approximates fair value due to their short-term nature. The carrying value of the Company’s variable interest rate debt approximates fair value due to the variable nature of the interest rate. The carrying value of the Company’s fixed interest rate debt was $1.3 billion at both July 1, 2023 and December 31, 2022. 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 $1.2 billion and $1.1 billion at July 1, 2023 and December 31, 2022, respectively, using Level 2 inputs. Derivative Transactions The Company is a global company that operates in over 35 countries and, as a result, the Company’s net sales, cost of sales, operating expenses and balance sheet amounts are significantly impacted by fluctuations in foreign currency exchange rates. The Company is exposed to currency price risk on foreign currency exchange rate fluctuations when it translates its non-U.S. The Company’s principal strategies in managing exposures to changes in foreign currency exchange rates are to (1) naturally hedge the foreign-currency-denominated liabilities on the Company’s balance sheet against corresponding assets of the same currency, such that any changes in liabilities due to fluctuations in foreign currency exchange rates are typically offset by corresponding changes in assets and (2) mitigate foreign exchange risk exposure of international operations by hedging the variability in the movement of foreign currency exchange rates on a portion of its euro-denominated and yen-denominated Foreign Currency Exchange Contracts The Company does not specifically enter into any derivatives that hedge foreign-currency-denominated operating assets, liabilities or commitments on its balance sheet, other than a portion of certain third-party accounts receivable and accounts payable, and the Company’s net worldwide intercompany receivables and payables, which are eliminated in consolidation. The Company periodically aggregates its net worldwide balances by currency and then enters into foreign currency exchange contracts that mature within 90 days to hedge a portion of the remaining balance to minimize some of the Company’s currency price risk exposure. The foreign currency exchange contracts are not designated for hedge accounting treatment. Principal hedged currencies include the euro, Japanese yen, British pound, Mexican peso and Brazilian real. Interest Rate Cross-Currency Swap Agreements As of July 1, 2023, the Company had three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $625 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its euro-denominated and yen-denominated The Company’s foreign currency exchange contracts and interest rate cross-currency swap agreements included in the consolidated balance sheets are classified as follows (in thousands): July 1, 2023 December 31, 2022 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 14,000 $ 53 $ 42,047 $ 231 Other current liabilities $ 34,226 $ 211 $ 13,450 $ 98 Interest rate cross-currency swap agreements: Other assets $ 425,000 $ 11,889 $ 400,000 $ 19,163 Other liabilities $ 200,000 $ 6,164 $ 185,000 $ 4,783 Accumulated other comprehensive income $ 1,370 $ 10,026 The following is a summary of the activity included in the consolidated statements of operations and statements of comprehensive income related to the foreign currency exchange contracts and interest rate cross-currency swap agreements (in thousands): Financial Three Months Ended Six Months Ended Statement July 1, July 2, July 1, July 2, Classification Foreign currency exchange contracts: Realized gains ( ) Cost of sales $ 675 $ (1,292 ) $ 705 $ (2,791 ) Unrealized losses on open contracts Cost of sales (213 ) (66 ) (291 ) (555 ) Cumulative net pre-tax Cost of sales $ 462 $ (1,358 ) $ 414 $ (3,346 ) Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,673 $ 2,077 $ 5,328 $ 3,852 Unrealized (losses) gains on open contracts Other comprehensive income $ (1,400 ) $ 30,516 $ (8,656 ) $ 42,704 Stockholders’ Equity In January 2019, the Company’s Board of Directors authorized the Company to repurchase up to $4 billion of its outstanding common stock over a two-year pre-existing 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 six months ended July 1, 2023 and July 2, 2022 (in thousands): Balance at Balance at Beginning Accruals for Settlements End of of Period Warranties Made Period Accrued warranty liability: July 1, 2023 $ 11,949 $ 3,983 $ (3,523 ) $ 12,409 July 2, 2022 $ 10,718 $ 4,084 $ (4,646 ) $ 10,156 Subsequent Event In July 2023, the Company made organizational changes to better align its resources with its growth and innovation strategies, resulting in a worldwide workforce reduction that has impacted approximately |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 2 Revenue Recognition The Company’s deferred revenue liabilities in the consolidated balance sheets consist of the obligation on instrument service contracts and customer payments received in advance, prior to transfer of control of the instrument. The Company records deferred revenue primarily related to its service contracts, where consideration is billable at the beginning of the service period. The following is a summary of the activity of the Company’s deferred revenue and customer advances for the six months ended July 1, 2023 and July 2, 2022 (in thousands): July 1, 2023 July 2, 2022 Balance at the beginning of the period $ 285,175 $ 273,598 Recognition of revenue included in balance at beginning of the period (176,508 ) (173,606 ) Revenue deferred during the period, net of revenue recognized 284,863 240,928 Balance at the end of the period $ 393,530 $ 340,920 The Company classified $69 million and $57 million of deferred revenue and customer advances in other long-term liabilities at July 1, 2023 and December 31, 2022, respectively. The amount of deferred revenue and customer advances equals the transaction price allocated to unfulfilled performance obligations for the period presented. Such amounts are expected to be recognized in the future as follows (in thousands): July 1, 2023 Deferred revenue and customer advances expected to be recognized in: One year or less $ 324,665 13-24 42,196 25 months and beyond 26,669 Total $ 393,530 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jul. 01, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 3 Marketable Securities The Company’s marketable securities within cash equivalents and investments included in the consolidated balance sheets consist of time deposits that mature in one year or less with an amortized cost and a fair value of $0.9 million at both July 1, 2023 and December 31, 2022. |
Inventories
Inventories | 6 Months Ended |
Jul. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | 4 Inventories Inventories are classified as follows (in thousands): July 1, 2023 December 31, 2022 Raw materials $ 238,392 $ 205,760 Work in progress 26,941 19,899 Finished goods 271,495 230,051 Total inventories $ 536,828 $ 455,710 |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 01, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | 5 Acquisitions On May 16, 2023, the Company acquired all of the issued and outstanding equity interests of Wyatt for $1.3 billion, net of cash acquired. Wyatt is a pioneer in innovative light scattering and field-flow fractionation instruments, software, accessories and services. The acquisition will expand Waters’ portfolio and increase exposure to large molecule applications. As a result of the acquisition, the results of Wyatt are included in the Company’s consolidated financial statements from the acquisition date. The Company preliminarily allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The purchase price allocation was based upon preliminary information and is subject to change if additional information about the facts and circumstances that existed at the acquisition date becomes available. The Company is in the ongoing process of conducting a valuation of the assets acquired and liabilities assumed related to the acquisition. The final fair value of the net assets acquired may result in adjustments to these assets and liabilities, including goodwill. The intangible assets were valued with input from valuation specialists. The Company used variations of the income approach, which uses Level 3 inputs, in determining the fair value of intangible assets acquired in the Wyatt acquisition. Specifically, the customer relationships were valued using the multi-period excess earnings method under the income approach. The Company utilized the relief from royalty method to determine the fair value of the tradename and the developed technology. The following table presents the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date of May 16, 2023 (in thousands): Purchase Price Cash p $ 1,311,531 Less: c (25,624 ) Net cash consideration 1,285,907 Identifiable Net Assets (Liabilities) Acquired Accounts receivable 20,099 Inventory 14,706 Prepaid and other assets 1,327 Property, plant and equipment 9,056 Operating lease assets 5,204 Intangible assets 418,100 Accounts payable and accrued expenses (31,664 ) Operating lease liabilities (5,204 ) Tax liabilities (3,871 ) Deferred revenue (15,219 ) Other liabilities (5,728 ) Total identifiable net assets acquired 406,806 Goodwill 879,101 Net cash consideration $ 1,285,907 The details of the purchase price allocated to the intangible assets acquired and the estimated useful lives are as follows (dollars in thousands): Amount Weighted-Average Developed technology $ 80,000 10 years Customer relationships 330,600 10 years Trade name 7,500 5 years Total $ 418,100 The Company allocated $879 million of the purchase price to goodwill which is deductible for tax purposes and has been allocated to the Waters Division operating segment. The goodwill arising from the acquisition consists largely of the value of intangible assets that do not qualify for separate recognition such as workforce in place and cash flows from the integration of acquired technology, distribution channels and products with the Company’s products, which are higher than if the acquired companies’ technology, customer access or products were utilized on a stand-alone basis. During the three and six months ended July 1, 2023, the Company’s consolidated results included net sales of $16 million and a net operating loss of $3 million since the acquisition closed on May 16, 2023. The Company also incurred transaction related costs of $4 million and $12 million during the three and six months ended July 1, 2023, respectively. The pro forma effect on the ongoing operations of the Company as though this acquisition had occurred on January 1, 2022 was considered immaterial to the consolidated financial statements. In conjunction with the Wyatt acquisition, the Company entered into retention agreements with certain employees, in which the Company agreed to pay a total of $40 million, in two equal installments upon the first and second anniversary of the acquisition date. As these employees are earning their individual cash award by providing service over the two-year two-year |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | 6 Goodwill and Other Intangibles The carrying amount of goodwill was $1.3 billion and $430 million at July 1, 2023 and December 31, 2022, respectively. The acquisition of Wyatt increased goodwill by $879 million, while the effect of foreign currency translation increased goodwill by $4 million. The Company’s intangible assets included in the consolidated balance sheets are detailed as follows (dollars in thousands): July 1, 2023 December 31, 2022 Weighted- Weighted- Gross Average Gross Average Carrying Accumulated Amortization Carrying Accumulated Amortization Amount Amortization Period Amount Amortization Period Capitalized software $ 627,965 $ 467,233 5 years $ 589,604 $ 441,414 5 years Purchased intangibles 612,946 171,959 10 years 197,805 166,735 11 years Trademarks 9,680 — — 9,680 — — Licenses 14,682 7,691 7 years 14,070 6,729 6 years Patents and other intangibles 108,687 77,346 8 years 104,139 73,021 8 years Total $ 1,373,960 $ 724,229 7 years $ 915,298 $ 687,899 7 years The Company capitalized intangible assets in the amounts of $431 million and $12 million in the three months ended July 1, 2023 and July 2, 2022, respectively, and $445 million and $24 million in the six months ended July 1, 2023 and July 2, 2022, respectively. The increases in intangible assets are a result of the Wyatt acquisition. The gross carrying value of intangible assets and accumulated amortization for intangible assets increased by $18 million and $11 million, respectively, in the six months ended July 1, 2023 due to the effects of foreign currency translation. Amortization expense for intangible assets was $18 million and $15 million for the three months ended July 1, 2023 and July 2, 2022. Amortization expense for intangible assets was $30 million for both the six months ended July 1, 2023 and July 2, 2022. Amortization expense for intangible assets is estimated to be $92 million per year for each of the next five years. |
Debt
Debt | 6 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 7 Debt On May 16, 2023, the Company financed the Wyatt acquisition with a combination of cash on its balance sheet and borrowings under its revolving credit facility. As a result of the Wyatt transaction, the Company’s outstanding debt on July 2, 2023 was $2.6 billion, a change of $1.2 billion from the end of the first quarter of 2023. On May 11, 2023, the Company issued the following senior unsecured notes: Face Value Senior Unsecured Notes Term Interest Rate (in millions) Maturity Date Series P 5 years 4.91 % $ 50 May 2028 Series Q 7 years 4.91 % $ 50 May 2030 The Company used the proceeds from the issuance of these senior unsecured notes to repay other outstanding debt and for general corporate purposes. Interest on the Series P and Q Senior Notes is payable semi-annually in arrears. The Company may prepay some or all of the Senior Notes, at any time and from time to time, in an amount not less than 10% of the aggregate principal amount of the Senior Notes then outstanding, plus the applicable make-whole amount for Series P and Q Senior Notes, in each case, upon no more than 60 nor less than 20 days’ written notice to the holders of the Senior Notes. In the event of a change in control (as defined in the note purchase agreement) of the Company, the Company may be required to prepay the Senior Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. Other provisions for these senior unsecured notes are similar to the existing senior unsecured notes, as described below. The Company has a five-year, $1.8 billion revolving facility (the “Credit Facility”) that expires in September 2026. On March 3, 2023, the Company amended the Credit Facility to increase the borrowing capacity by $200 million to an aggregate total borrowing capacity of $2.0 billion, which did not affect the maturity date of September 17, 2026. The amendment also replaced all references in the Credit Facility to LIBOR with Term SOFR as the benchmark rate. As of July 1, 2023 and December 31, 2022, the Credit Facility had a total of $1.3 billion and $270 million outstanding, respectively. The interest rates applicable under the Credit Facility are, at the Company’s option, equal to either the alternate base rate (which is a rate per annum equal to the greatest of (1) the prime rate in effect on such day, (2) the Federal Reserve Bank of New York Rate on such day plus 1/2 of 1% per annum and (3) the adjusted Term SOFR rate for a one-month As of both July 1, 2023 and December 31, 2022, the Company had a total of $1.3 billion of outstanding senior unsecured notes. 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. 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 July 1, 2023 and December 31, 2022 (in thousands): July 1, 2023 December 31, 2022 Senior unsecured notes - Series I - 3.13%, due May 2023 — 50,000 Senior unsecured notes - Series G - 3.92%, due June 2024 50,000 — Total notes payable and debt, current 50,000 50,000 Senior unsecured notes - Series G - 3.92%, due June 2024 — 50,000 Senior unsecured notes - Series H - floating rate*, due June 2024 — 50,000 Senior unsecured notes - Series K - 3.44%, due May 2026 160,000 160,000 Senior unsecured notes - Series L - 3.31%, due September 2026 200,000 200,000 Senior unsecured notes - Series M - 3.53%, due September 2029 300,000 300,000 Senior unsecured notes - Series N - 1.68%, due March 2026 100,000 100,000 Senior unsecured notes - Series O - 2.25%, due March 2031 400,000 400,000 Senior unsecured notes - Series P - 4.91%, due May 2028 50,000 — Senior unsecured notes - Series Q - 4.91%, due May 2030 50,000 — Credit agreement 1,325,000 270,000 Unamortized debt issuance costs (4,802 ) (5,122 ) Total long-term debt 2,580,198 1,524,878 Total debt $ 2,630,198 $ 1,574,878 * Series H senior unsecured notes bear interest at a 3-month As of July 1, 2023 and December 31, 2022, the Company had a total amount available to borrow under the Credit Facility of $0.7 billion and $1.5 billion, respectively, after outstanding letters of credit. The weighted-average interest rates applicable to the senior unsecured notes and credit agreement borrowings collectively were 4.68% and 3.54% at July 1, 2023 and December 31, 2022, respectively. As of July 1, 2023, the Company was in compliance with all debt covenants. The Company and its foreign subsidiaries also had available short-term lines of credit totaling $113 million at both July 1, 2023 and December 31, 2022, for the purpose of short-term borrowing and issuance of commercial guarantees. None of the Company’s foreign subsidiaries had outstanding short-term borrowings as of July 1, 2023 or December 31, 2022. As of July 1, 2023, the Company had entered into three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $625 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its euro-denominated and yen-denominated |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 Income Taxes The four principal jurisdictions in which the Company manufactures are the U.S., Ireland, the U.K. and Singapore, where the statutory tax rates were 21%, 12.5%, 25% and 17%, respectively, as of July 1, 2023. The Company has a Development and Expansion Incentive in Singapore that provides a concessionary income tax rate of 5% on certain types of income for the period April 1, 2021 through March 31, 2026. The effect of applying the concessionary income tax rates rather than the statutory tax rate to income arising from qualifying activities in Singapore increased the Company’s net income for the six months ended July 1, 2023 and July 2, 2022 by $7 million and $10 million, respectively, and increased the Company’s net income per diluted share by $0.11 and $0.16, respectively. The Company’s effective tax rate for the three months ended July 1, 2023 and July 2, 2022 was 16.5% and 14.3%, respectively. The increase in the effective income tax rate can be primarily attributed to the impact of discrete tax benefits in the prior year and differences in the proportionate amounts of pre-tax The Company’s effective tax rate for the six months ended July 1, 2023 and July 2, 2022 was 15.6% and 14.3%, respectively. The differences between the effective tax rates can primarily be attributed to differences in the proportionate amounts of pre-tax The Company accounts for its uncertain tax return 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 tax 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 Company continues to classify interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The Company’s gross unrecognized tax benefits, excluding interest and penalties, at July 1, 2023 and July 2, 2022 were $30 million and $29 million, respectively. 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, 2017. 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 July 1, 2023, the Company expects to record reductions in the measurement of its unrecognized tax benefits and related net interest and penalties of $18 million within the next twelve months due to potential tax audit settlements and 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. |
Other Commitments and Contingen
Other Commitments and Contingencies | 6 Months Ended |
Jul. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | 9 Other Commitments and Contingencies The Company licenses certain technology and software from third parties in the course of ordinary business. Future minimum license fees payable under existing license agreements as of July 1, 2023 are immaterial for the years ended December 31, 2023 and thereafter. The Company enters into standard indemnification agreements in its ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to its current products, as well as claims relating to property damage or personal injury resulting from the performance of services by the Company or its subcontractors. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Historically, the Company’s costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and management accordingly believes the estimated fair value of these agreements is immaterial. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10 Earnings Per Share Basic and diluted EPS calculations are detailed as follows (in thousands, except per share data): Three Months Ended July 1, 2023 Net Income Weighted- Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 150,554 58,857 $ 2.56 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 153 (0.01 ) Net income per diluted common share $ 150,554 59,010 $ 2.55 Three Months Ended July 2, 2022 Net Income Weighted- Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 164,864 60,206 $ 2.74 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 304 (0.02 ) Net income per diluted common share $ 164,864 60,510 $ 2.72 Six Months Ended July 1, 2023 Net Income Weighted- Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 291,477 58,703 $ 4.97 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 206 (0.02 ) Net income per diluted common share $ 291,477 58,909 $ 4.95 Six Months Ended July 2, 2022 Net Income Weighted- Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 324,695 60,399 $ 5.38 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 345 (0.03 ) Net income per diluted common share $ 324,695 60,744 $ 5.35 For the three and six months ended July 1, 2023 and July 2, 2022, the Company had fewer than one million stock options that were antidilutive due to having higher exercise prices than the Company’s average stock price during the applicable period. These securities were not included in the computation of diluted EPS. The effect of dilutive securities was calculated using the treasury stock method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 01, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 11 Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are detailed as follows (in thousands): Currency Translation Unrealized Gain (Loss) Accumulated Other Balance at December 31, 2022 $ (146,120 ) $ 4,548 $ (141,572 ) Other comprehensive (loss) income, net of tax 12,767 5 12,772 Balance at July 1, 2023 $ (133,353 ) $ 4,553 $ (128,800 ) |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | 12 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 TM TM The Waters operating segment is primarily in the business of designing, manufacturing, selling and servicing LC and MS instruments, columns and other precision chemistry consumables that can be integrated and used along with other analytical instruments. The TA operating segment is primarily in the business of designing, manufacturing, selling and servicing thermal analysis, rheometry and calorimetry instruments. The Company’s two operating segments have 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. Net sales for the Company’s products and services are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands): Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Product net sales: Waters instrument systems $ 279,940 $ 280,846 $ 524,151 $ 550,808 Chemistry consumables 135,919 131,947 269,434 257,565 TA instrument systems 62,067 56,837 120,798 112,097 Total product sales 477,926 469,630 914,383 920,470 Service net sales: Waters service 237,376 222,359 461,725 439,935 TA service 25,274 22,330 49,142 44,486 Total service sales 262,650 244,689 510,867 484,421 Total net sales $ 740,576 $ 714,319 $ 1,425,250 $ 1,404,891 Net sales are attributable to geographic areas based on the region of destination. Geographic sales information is presented below for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands): Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net Sales: Asia: China $ 114,981 $ 138,740 $ 231,046 $ 259,772 Japan 37,380 37,504 83,874 86,127 Asia Other 102,262 101,766 192,784 186,445 Total Asia 254,623 278,010 507,704 532,344 Americas: United States 238,955 213,815 441,260 422,528 Americas Other 43,972 43,456 88,088 83,580 Total Americas 282,927 257,271 529,348 506,108 Europe 203,026 179,038 388,198 366,439 Total net sales $ 740,576 $ 714,319 $ 1,425,250 $ 1,404,891 Net sales by customer class are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands): Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Pharmaceutical $ 426,744 $ 437,171 $ 811,642 $ 852,943 Industrial 229,655 208,517 439,305 417,914 Academic and government 84,177 68,631 174,303 134,034 Total net sales $ 740,576 $ 714,319 $ 1,425,250 $ 1,404,891 Net sales for the Company recognized at a point in time versus over time are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands): Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net sales recognized at a point in time: Instrument systems $ 342,007 $ 337,683 $ 644,949 $ 662,905 Chemistry consumables 135,919 131,947 269,434 257,565 Service sales recognized at a point in time (time & materials) 92,711 91,571 180,918 177,350 Total net sales recognized at a point in time 570,637 561,201 1,095,301 1,097,820 Net sales recognized over time: Service and software maintenance sales recognized over time (contracts) 169,939 153,118 329,949 307,071 Total net sales $ 740,576 $ 714,319 $ 1,425,250 $ 1,404,891 |
Recent Accounting Standard Chan
Recent Accounting Standard Changes and Developments | 6 Months Ended |
Jul. 01, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Standard Changes and Developments | 13 Recent Accounting Standard Changes and Developments Recently Adopted Accounting Standards In October 2021, accounting guidance was issued that requires acquirers in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The new guidance requires that at the acquisition date, the acquirer should account for the related revenue contracts in accordance with 606 as if it had originated the contracts. This guidance differs from current GAAP which requires an acquirer to recognize assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with 606, at fair value on the acquisition date. This guidance is effective for public business entities for fiscal years beginning after December 15, 2022, including interim periods within those years. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a material impact on the Company’s financial position, results of operations and cash flows. Recently Issued Accounting Standards In March 2020, accounting guidance was issued that facilitates the effects of reference rate reform on financial reporting. The amendments in the update provide optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January of 2021, an update was issued to clarify that certain optional expedients and exceptions under the reference rate reform guidance for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, certain provisions in the reference rate reform guidance, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. This temporary guidance is effective for all entities as of March 12, 2020, through December 31, 2022. In December 2022, an update was issued because the cessation date for overnight LIBOR rates being published was extended to June 30, 2023, which was beyond the current expiration date of this guidance. The update extended the sunset date to December 31, 2024. The Company may elect to apply this guidance for all contract modifications or eligible hedging relationships during that time period subject to certain criteria. The Company does not believe that it has material reference rate exposure which would require utilizing the guidance under this accounting pronouncement and if adopted does not believe that this standard would have a material impact on the Company’s financial position, results of operations and cash flows. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 01, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Period | 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 second fiscal quarters for 2023 and 2022 ended on July 1, 2023 and July 2, 2022, 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 The preparation of consolidated financial statements in conformity with U.S. 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 |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. 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. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks common to companies in the analytical instrument industry, including, but not limited to, global economic and financial market conditions, fluctuations in foreign currency exchange rates, fluctuations in customer demand, development by its competitors of new technological innovations, costs of developing new technologies, levels of debt and debt service requirements, risk of disruption, dependence on key personnel, protection and litigation of proprietary technology, shifts in taxable income between tax jurisdictions and compliance with regulations of the U.S. Food and Drug Administration and similar foreign regulatory authorities and agencies. Through the date of the issuance of these financial statements, the Company’s consolidated financial position, results of operations and cash flows have not been materially impacted and, thus, the Company concluded that no interim goodwill or long-lived asset impairment analyses were required. Further, there have been no violations of debt covenants. Any prolonged material disruption to the Company’s employees, suppliers, manufacturing, or customers could result in a material impact to its consolidated financial position, results of operations or cash flows in the future. |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its subsidiaries, which are wholly owned. All inter-company balances and transactions have been eliminated. |
Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency of each of the Company’s foreign operating subsidiaries is the local currency of its country of domicile, except for the Company’s subsidiaries in Hong Kong, Singapore and the Cayman Islands, where the underlying transactional cash flows are denominated in currencies other than the respective local currency of domicile. The functional currency of the Hong Kong, Singapore and Cayman Islands subsidiaries is the U.S. dollar, based on the respective entity’s cash flows. For the Company’s foreign operations, assets and liabilities are translated into U.S. dollars at exchange rates prevailing on the balance sheet date, while revenues and expenses are translated at average exchange rates prevailing during the respective period. Any resulting translation gains or losses are included in accumulated other comprehensive loss in the consolidated balance sheets. |
Cash, Cash Equivalents and Investments | 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 the U.S. dollar. As of July 1, 2023 and December 31, 2022, $272 million out of $331 million and $472 million out of $481 million, respectively, of the Company’s total cash, cash equivalents and investments were held by foreign subsidiaries. In addition, $184 million out of $331 million and $336 million out of $481 million of cash, cash equivalents and investments were held in currencies other than the U.S. dollar at July 1, 2023 and December 31, 2022, respectively. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company has very limited use of rebates and other cash considerations payable to customers and, as a result, the transaction price determination does not have any material variable consideration. The Company does not consider there to be significant concentrations of credit risk with respect to trade receivables due to the short-term nature of the balances, the Company having a large and diverse customer base, and the Company having a strong historical experience of collecting receivables with minimal defaults. As a result, credit risk is considered low across territories and trade receivables are considered to be a single class of financial asset. The allowance for credit losses is based on a number of factors and is calculated by applying a historical loss rate to trade receivable aging balances to estimate a general reserve balance along with an additional adjustment for any specific receivables with known or anticipated issues affecting the likelihood of recovery. Past due balances with a probability of default based on historical data as well as relevant available forward-looking information are included in the specific adjustment. The historical loss rate is reviewed on at least an annual basis and the allowance for credit losses is reviewed quarterly for any required adjustments. The Company does not have any off-balance Trade receivables related to instrument sales are collateralized by the instrument that is sold. If there is a risk of default related to a receivable that is collateralized, then the fair value of the collateral is calculated and adjusted for the cost to re-possess, re-sell The following is a summary of the activity of the Company’s allowance for credit losses for the six months ended July 1, 2023 and July 2, 2022 (in thousands): Balance at Balance at of Period Additions Deductions Period Allowance for Credit Losses July 1, 2023 $ 14,311 $ 3,075 $ (2,432 ) $ 14,954 July 2, 2022 $ 13,228 $ 3,690 $ (3,571 ) $ 13,347 |
Other Investments | Other Investments During the six months ended July 1, 2023, the Company did not have any other investment activity. During the six months ended July 2, 2022, the Company recorded a realized gain of $4 million in other income, net in the consolidated statement of operations due to the sale of an equity investment as well as incurring $4 million in impairment losses on an equity investment. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Accordingly, at the date of each acquisition, the Company measures the fair value of all identifiable assets acquired (including intangible assets) and liabilities assumed and allocates the amounts paid to all items measured. The fair value of identifiable intangible assets acquired is based on valuations that use information and assumptions determined by management and which consider management’s best estimates of inputs and assumptions that a market participant would use. Any excess of the fair value consideration transferred over the estimated fair values of the net assets acquired is recognized as goodwill. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company evaluates goodwill for impairment on an annual basis, or on an interim basis when events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level, which is the operating segment or one level below an operating segment. The Company has the option of performing a qualitative assessment to determine whether further impairment testing is necessary before performing the quantitative assessment. If, as a result of the qualitative assessment, it is more-likely-than-not TM TM The Company’s intangible assets include purchased technology; capitalized software; costs associated with acquiring Company patents, trademarks and intellectual properties, such as licenses; and acquired IPR&D. Purchased intangibles are recorded at their fair market values as of the acquisition date and amortized over their estimated useful lives, ranging from one one |
Fair Value Measurements | 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 July 1, 2023 and December 31, 2022. 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 July 1, 2023 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 885 $ — $ 885 $ — Waters 401(k) Restoration Plan assets 28,485 28,485 — — Foreign currency exchange contracts 53 — 53 — Interest rate cross-currency swap agreements 11,889 — 11,889 — Total $ 41,312 $ 28,485 $ 12,827 $ — Liabilities: Foreign currency exchange contracts $ 211 $ — $ 211 $ — Interest rate cross-currency swap agreements 6,164 — 6,164 — Total $ 6,375 $ — $ 6,375 $ — The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 862 $ — $ 862 $ — Waters 401(k) Restoration Plan assets 25,532 25,532 — — Foreign currency exchange contracts 231 — 231 — Interest rate cross-currency swap agreements 19,163 — 19,163 — Total $ 45,788 $ 25,532 $ 20,256 $ — Liabilities: Contingent consideration $ 1,509 $ — $ — $ 1,509 Foreign currency exchange contracts 98 — 98 — Interest rate cross-currency swap agreements 4,783 — 4,783 — Total $ 6,390 $ — $ 4,881 $ 1,509 Fair Value of 401(k) Restoration Plan Assets The 401(k) Restoration Plan is a nonqualified defined contribution plan and the assets were held in registered mutual funds and have been classified as Level 1. The fair values of the assets in the plan are determined through market and observable sources from daily quoted prices on nationally recognized securities exchanges. Fair Value of Cash Equivalents, Investments, Foreign Currency Exchange Contracts and Interest Rate Cross-Currency Swap Agreements The fair values of the Company’s cash equivalents, investments, foreign currency exchange contracts and interest rate cross-currency swap agreements 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. Fair Value of Other Financial Instruments The Company’s accounts receivable and accounts payable are recorded at cost, which approximates fair value due to their short-term nature. The carrying value of the Company’s variable interest rate debt approximates fair value due to the variable nature of the interest rate. The carrying value of the Company’s fixed interest rate debt was $1.3 billion at both July 1, 2023 and December 31, 2022. 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 $1.2 billion and $1.1 billion at July 1, 2023 and December 31, 2022, respectively, using Level 2 inputs. |
Derivative Transactions | Derivative Transactions The Company is a global company that operates in over 35 countries and, as a result, the Company’s net sales, cost of sales, operating expenses and balance sheet amounts are significantly impacted by fluctuations in foreign currency exchange rates. The Company is exposed to currency price risk on foreign currency exchange rate fluctuations when it translates its non-U.S. The Company’s principal strategies in managing exposures to changes in foreign currency exchange rates are to (1) naturally hedge the foreign-currency-denominated liabilities on the Company’s balance sheet against corresponding assets of the same currency, such that any changes in liabilities due to fluctuations in foreign currency exchange rates are typically offset by corresponding changes in assets and (2) mitigate foreign exchange risk exposure of international operations by hedging the variability in the movement of foreign currency exchange rates on a portion of its euro-denominated and yen-denominated Foreign Currency Exchange Contracts The Company does not specifically enter into any derivatives that hedge foreign-currency-denominated operating assets, liabilities or commitments on its balance sheet, other than a portion of certain third-party accounts receivable and accounts payable, and the Company’s net worldwide intercompany receivables and payables, which are eliminated in consolidation. The Company periodically aggregates its net worldwide balances by currency and then enters into foreign currency exchange contracts that mature within 90 days to hedge a portion of the remaining balance to minimize some of the Company’s currency price risk exposure. The foreign currency exchange contracts are not designated for hedge accounting treatment. Principal hedged currencies include the euro, Japanese yen, British pound, Mexican peso and Brazilian real. Interest Rate Cross-Currency Swap Agreements As of July 1, 2023, the Company had three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $625 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its euro-denominated and yen-denominated The Company’s foreign currency exchange contracts and interest rate cross-currency swap agreements included in the consolidated balance sheets are classified as follows (in thousands): July 1, 2023 December 31, 2022 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 14,000 $ 53 $ 42,047 $ 231 Other current liabilities $ 34,226 $ 211 $ 13,450 $ 98 Interest rate cross-currency swap agreements: Other assets $ 425,000 $ 11,889 $ 400,000 $ 19,163 Other liabilities $ 200,000 $ 6,164 $ 185,000 $ 4,783 Accumulated other comprehensive income $ 1,370 $ 10,026 The following is a summary of the activity included in the consolidated statements of operations and statements of comprehensive income related to the foreign currency exchange contracts and interest rate cross-currency swap agreements (in thousands): Financial Three Months Ended Six Months Ended Statement July 1, July 2, July 1, July 2, Classification Foreign currency exchange contracts: Realized gains ( ) Cost of sales $ 675 $ (1,292 ) $ 705 $ (2,791 ) Unrealized losses on open contracts Cost of sales (213 ) (66 ) (291 ) (555 ) Cumulative net pre-tax Cost of sales $ 462 $ (1,358 ) $ 414 $ (3,346 ) Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,673 $ 2,077 $ 5,328 $ 3,852 Unrealized (losses) gains on open contracts Other comprehensive income $ (1,400 ) $ 30,516 $ (8,656 ) $ 42,704 |
Stockholders' Equity | Stockholders’ Equity In January 2019, the Company’s Board of Directors authorized the Company to repurchase up to $4 billion of its outstanding common stock over a two-year pre-existing |
Product Warranty Costs | 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 six months ended July 1, 2023 and July 2, 2022 (in thousands): Balance at Balance at Beginning Accruals for Settlements End of of Period Warranties Made Period Accrued warranty liability: July 1, 2023 $ 11,949 $ 3,983 $ (3,523 ) $ 12,409 July 2, 2022 $ 10,718 $ 4,084 $ (4,646 ) $ 10,156 |
Subsequent Event | Subsequent Event In July 2023, the Company made organizational changes to better align its resources with its growth and innovation strategies, resulting in a worldwide workforce reduction that has impacted approximately |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Accounting Policies [Abstract] | |
Summary of Activity of Company's Allowance for Doubtful Accounts | The following is a summary of the activity of the Company’s allowance for credit losses for the six months ended July 1, 2023 and July 2, 2022 (in thousands): Balance at Balance at of Period Additions Deductions Period Allowance for Credit Losses July 1, 2023 $ 14,311 $ 3,075 $ (2,432 ) $ 14,954 July 2, 2022 $ 13,228 $ 3,690 $ (3,571 ) $ 13,347 |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at July 1, 2023 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 885 $ — $ 885 $ — Waters 401(k) Restoration Plan assets 28,485 28,485 — — Foreign currency exchange contracts 53 — 53 — Interest rate cross-currency swap agreements 11,889 — 11,889 — Total $ 41,312 $ 28,485 $ 12,827 $ — Liabilities: Foreign currency exchange contracts $ 211 $ — $ 211 $ — Interest rate cross-currency swap agreements 6,164 — 6,164 — Total $ 6,375 $ — $ 6,375 $ — The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 (in thousands): Total at Quoted Prices Significant Significant Assets: Time deposits $ 862 $ — $ 862 $ — Waters 401(k) Restoration Plan assets 25,532 25,532 — — Foreign currency exchange contracts 231 — 231 — Interest rate cross-currency swap agreements 19,163 — 19,163 — Total $ 45,788 $ 25,532 $ 20,256 $ — Liabilities: Contingent consideration $ 1,509 $ — $ — $ 1,509 Foreign currency exchange contracts 98 — 98 — Interest rate cross-currency swap agreements 4,783 — 4,783 — Total $ 6,390 $ — $ 4,881 $ 1,509 |
Summary of Foreign Currency Exchange Contracts and Interest Rate Cross-Currency Swap Agreements | The Company’s foreign currency exchange contracts and interest rate cross-currency swap agreements included in the consolidated balance sheets are classified as follows (in thousands): July 1, 2023 December 31, 2022 Notional Value Fair Value Notional Value Fair Value Foreign currency exchange contracts: Other current assets $ 14,000 $ 53 $ 42,047 $ 231 Other current liabilities $ 34,226 $ 211 $ 13,450 $ 98 Interest rate cross-currency swap agreements: Other assets $ 425,000 $ 11,889 $ 400,000 $ 19,163 Other liabilities $ 200,000 $ 6,164 $ 185,000 $ 4,783 Accumulated other comprehensive income $ 1,370 $ 10,026 |
Gains (Losses) on Foreign Exchange Contracts | The following is a summary of the activity included in the consolidated statements of operations and statements of comprehensive income related to the foreign currency exchange contracts and interest rate cross-currency swap agreements (in thousands): Financial Three Months Ended Six Months Ended Statement July 1, July 2, July 1, July 2, Classification Foreign currency exchange contracts: Realized gains ( ) Cost of sales $ 675 $ (1,292 ) $ 705 $ (2,791 ) Unrealized losses on open contracts Cost of sales (213 ) (66 ) (291 ) (555 ) Cumulative net pre-tax Cost of sales $ 462 $ (1,358 ) $ 414 $ (3,346 ) Interest rate cross-currency swap agreements: Interest earned Interest income $ 2,673 $ 2,077 $ 5,328 $ 3,852 Unrealized (losses) gains on open contracts Other comprehensive income $ (1,400 ) $ 30,516 $ (8,656 ) $ 42,704 |
Summary of Activity of Company's Accrued Warranty Liability | The following is a summary of the activity of the Company’s accrued warranty liability for the six months ended July 1, 2023 and July 2, 2022 (in thousands): Balance at Balance at Beginning Accruals for Settlements End of of Period Warranties Made Period Accrued warranty liability: July 1, 2023 $ 11,949 $ 3,983 $ (3,523 ) $ 12,409 July 2, 2022 $ 10,718 $ 4,084 $ (4,646 ) $ 10,156 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Activity of Deferred Revenue and Customer Advances | The following is a summary of the activity of the Company’s deferred revenue and customer advances for the six months ended July 1, 2023 and July 2, 2022 (in thousands): July 1, 2023 July 2, 2022 Balance at the beginning of the period $ 285,175 $ 273,598 Recognition of revenue included in balance at beginning of the period (176,508 ) (173,606 ) Revenue deferred during the period, net of revenue recognized 284,863 240,928 Balance at the end of the period $ 393,530 $ 340,920 |
Schedule of Amount of Deferred Revenue and Customer Advances | The amount of deferred revenue and customer advances equals the transaction price allocated to unfulfilled performance obligations for the period presented. Such amounts are expected to be recognized in the future as follows (in thousands): July 1, 2023 Deferred revenue and customer advances expected to be recognized in: One year or less $ 324,665 13-24 42,196 25 months and beyond 26,669 Total $ 393,530 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory, Net of Reserves | Inventories are classified as follows (in thousands): July 1, 2023 December 31, 2022 Raw materials $ 238,392 $ 205,760 Work in progress 26,941 19,899 Finished goods 271,495 230,051 Total inventories $ 536,828 $ 455,710 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |
Summary of business combination assets acquired liabilities assumed | The following table presents the preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date of May 16, 2023 (in thousands): Purchase Price Cash p $ 1,311,531 Less: c (25,624 ) Net cash consideration 1,285,907 Identifiable Net Assets (Liabilities) Acquired Accounts receivable 20,099 Inventory 14,706 Prepaid and other assets 1,327 Property, plant and equipment 9,056 Operating lease assets 5,204 Intangible assets 418,100 Accounts payable and accrued expenses (31,664 ) Operating lease liabilities (5,204 ) Tax liabilities (3,871 ) Deferred revenue (15,219 ) Other liabilities (5,728 ) Total identifiable net assets acquired 406,806 Goodwill 879,101 Net cash consideration $ 1,285,907 |
Summary of the purchase price allocated to the intangible assets acquired and the estimated useful lives | The details of the purchase price allocated to the intangible assets acquired and the estimated useful lives are as follows (dollars in thousands): Amount Weighted-Average Developed technology $ 80,000 10 years Customer relationships 330,600 10 years Trade name 7,500 5 years Total $ 418,100 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The Company’s intangible assets included in the consolidated balance sheets are detailed as follows (dollars in thousands): July 1, 2023 December 31, 2022 Weighted- Weighted- Gross Average Gross Average Carrying Accumulated Amortization Carrying Accumulated Amortization Amount Amortization Period Amount Amortization Period Capitalized software $ 627,965 $ 467,233 5 years $ 589,604 $ 441,414 5 years Purchased intangibles 612,946 171,959 10 years 197,805 166,735 11 years Trademarks 9,680 — — 9,680 — — Licenses 14,682 7,691 7 years 14,070 6,729 6 years Patents and other intangibles 108,687 77,346 8 years 104,139 73,021 8 years Total $ 1,373,960 $ 724,229 7 years $ 915,298 $ 687,899 7 years |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Senior Unsecured Notes Issued | On May 11, 2023, the Company issued the following senior unsecured notes: Face Value Senior Unsecured Notes Term Interest Rate (in millions) Maturity Date Series P 5 years 4.91 % $ 50 May 2028 Series Q 7 years 4.91 % $ 50 May 2030 |
Summary of Outstanding Debt | The Company had the following outstanding debt at July 1, 2023 and December 31, 2022 (in thousands): July 1, 2023 December 31, 2022 Senior unsecured notes - Series I - 3.13%, due May 2023 — 50,000 Senior unsecured notes - Series G - 3.92%, due June 2024 50,000 — Total notes payable and debt, current 50,000 50,000 Senior unsecured notes - Series G - 3.92%, due June 2024 — 50,000 Senior unsecured notes - Series H - floating rate*, due June 2024 — 50,000 Senior unsecured notes - Series K - 3.44%, due May 2026 160,000 160,000 Senior unsecured notes - Series L - 3.31%, due September 2026 200,000 200,000 Senior unsecured notes - Series M - 3.53%, due September 2029 300,000 300,000 Senior unsecured notes - Series N - 1.68%, due March 2026 100,000 100,000 Senior unsecured notes - Series O - 2.25%, due March 2031 400,000 400,000 Senior unsecured notes - Series P - 4.91%, due May 2028 50,000 — Senior unsecured notes - Series Q - 4.91%, due May 2030 50,000 — Credit agreement 1,325,000 270,000 Unamortized debt issuance costs (4,802 ) (5,122 ) Total long-term debt 2,580,198 1,524,878 Total debt $ 2,630,198 $ 1,574,878 * Series H senior unsecured notes bear interest at a 3-month |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Reconciliation | Basic and diluted EPS calculations are detailed as follows (in thousands, except per share data): Three Months Ended July 1, 2023 Net Income Weighted- Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 150,554 58,857 $ 2.56 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 153 (0.01 ) Net income per diluted common share $ 150,554 59,010 $ 2.55 Three Months Ended July 2, 2022 Net Income Weighted- Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 164,864 60,206 $ 2.74 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 304 (0.02 ) Net income per diluted common share $ 164,864 60,510 $ 2.72 Six Months Ended July 1, 2023 Net Income Weighted- Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 291,477 58,703 $ 4.97 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 206 (0.02 ) Net income per diluted common share $ 291,477 58,909 $ 4.95 Six Months Ended July 2, 2022 Net Income Weighted- Per Share (Numerator) (Denominator) Amount Net income per basic common share $ 324,695 60,399 $ 5.38 Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities — 345 (0.03 ) Net income per diluted common share $ 324,695 60,744 $ 5.35 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are detailed as follows (in thousands): Currency Translation Unrealized Gain (Loss) Accumulated Other Balance at December 31, 2022 $ (146,120 ) $ 4,548 $ (141,572 ) Other comprehensive (loss) income, net of tax 12,767 5 12,772 Balance at July 1, 2023 $ (133,353 ) $ 4,553 $ (128,800 ) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jul. 01, 2023 | |
Segment Reporting [Abstract] | |
Summary of Net Sales for Company's Products and Services | Net sales for the Company’s products and services are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands): Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Product net sales: Waters instrument systems $ 279,940 $ 280,846 $ 524,151 $ 550,808 Chemistry consumables 135,919 131,947 269,434 257,565 TA instrument systems 62,067 56,837 120,798 112,097 Total product sales 477,926 469,630 914,383 920,470 Service net sales: Waters service 237,376 222,359 461,725 439,935 TA service 25,274 22,330 49,142 44,486 Total service sales 262,650 244,689 510,867 484,421 Total net sales $ 740,576 $ 714,319 $ 1,425,250 $ 1,404,891 |
Summary of Geographic Sales Information | Net sales are attributable to geographic areas based on the region of destination. Geographic sales information is presented below for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands): Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net Sales: Asia: China $ 114,981 $ 138,740 $ 231,046 $ 259,772 Japan 37,380 37,504 83,874 86,127 Asia Other 102,262 101,766 192,784 186,445 Total Asia 254,623 278,010 507,704 532,344 Americas: United States 238,955 213,815 441,260 422,528 Americas Other 43,972 43,456 88,088 83,580 Total Americas 282,927 257,271 529,348 506,108 Europe 203,026 179,038 388,198 366,439 Total net sales $ 740,576 $ 714,319 $ 1,425,250 $ 1,404,891 |
Summary of Net Sales by Customer Class | Net sales by customer class are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands): Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Pharmaceutical $ 426,744 $ 437,171 $ 811,642 $ 852,943 Industrial 229,655 208,517 439,305 417,914 Academic and government 84,177 68,631 174,303 134,034 Total net sales $ 740,576 $ 714,319 $ 1,425,250 $ 1,404,891 |
Summary of Net Sales of Company Recognized at a Point in Time Versus Over Time | Net sales for the Company recognized at a point in time versus over time are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands): Three Months Ended Six Months Ended July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net sales recognized at a point in time: Instrument systems $ 342,007 $ 337,683 $ 644,949 $ 662,905 Chemistry consumables 135,919 131,947 269,434 257,565 Service sales recognized at a point in time (time & materials) 92,711 91,571 180,918 177,350 Total net sales recognized at a point in time 570,637 561,201 1,095,301 1,097,820 Net sales recognized over time: Service and software maintenance sales recognized over time (contracts) 169,939 153,118 329,949 307,071 Total net sales $ 740,576 $ 714,319 $ 1,425,250 $ 1,404,891 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jul. 31, 2023 USD ($) | May 16, 2023 USD ($) | Jul. 01, 2023 USD ($) | Jul. 02, 2022 USD ($) | Jul. 01, 2023 USD ($) Segment shares | Jul. 02, 2022 USD ($) shares | Dec. 31, 2022 USD ($) | Jan. 31, 2019 USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [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 | $ 331,000,000 | $ 331,000,000 | $ 481,000,000 | |||||
Number of reporting units for goodwill impairment testing | Segment | 2 | |||||||
Finite-lived intangible assets, average useful life in years | 7 years | 7 years | ||||||
Long-term debt | 2,580,198,000 | $ 2,580,198,000 | $ 1,524,878,000 | |||||
Foreign currency exposure | The Company is a global company that operates in over 35 countries and, as a result, the Company’s net sales, cost of sales, operating expenses and balance sheet amounts are significantly impacted by fluctuations in foreign currency exchange rates. | |||||||
Maturity period of foreign exchange contracts | The Company periodically aggregates its net worldwide balances by currency and then enters into foreign currency exchange contracts that mature within 90 days to hedge a portion of the remaining balance to minimize some of the Company’s currency price risk exposure. The foreign currency exchange contracts are not designated for hedge accounting treatment. | |||||||
Treasury stock | 236,000 | $ 151,808,000 | $ 69,741,000 | $ 321,944,000 | ||||
Equity method investment, other than temporary impairment | 4,000,000 | |||||||
Gain (Loss) on Investments | $ 4,000,000 | |||||||
Subsequent Event [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Percentage of workforce reduction | 5% | |||||||
Severance related costs | $ 30,000,000 | |||||||
Purchased Intangibles [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible assets, average useful life in years | 10 years | 11 years | ||||||
Patents and other intangibles [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible assets, average useful life in years | 8 years | 8 years | ||||||
Wyatt Technology LLC [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Payments to acquire businesses, gross | $ 1,300,000,000 | |||||||
Cross Currency Interest Rate Contract [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Notional value, derivative asset | 625,000,000 | $ 625,000,000 | ||||||
Programs Authorized by Board of Directors [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Treasury stock shares acquired | shares | 0.2 | 1 | ||||||
Treasury stock | $ 58,000,000 | $ 312,000,000 | ||||||
Related to Vesting of Restricted Stock Units [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Treasury stock | $ 11,000,000 | $ 10,000,000 | ||||||
January 2019 Program [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Stock repurchase program period | 2 years | |||||||
Treasury stock shares acquired | shares | 15.2 | |||||||
Treasury stock | $ 3,800,000,000 | |||||||
Stock repurchase program remaining amount authorized for future purchases | 1,000,000,000 | $ 1,000,000,000 | ||||||
Amended and extended January 2019 Program [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Increase in stock repurchase program authorization amount | $ 750,000,000 | |||||||
Stock repurchase program, extension term | 1 year | |||||||
Stock repurchase program expiration date | Jan. 21, 2024 | |||||||
Held In Currencies Other Than Us Dollars [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Cash, cash equivalents and investments | 184,000,000 | $ 184,000,000 | 336,000,000 | |||||
January 2019 Program [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Stock repurchase program authorization amount | $ 4,000,000,000 | |||||||
Unsecured Debt [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Long-term debt | 1,300,000,000 | 1,300,000,000 | 1,300,000,000 | |||||
Unsecured Debt [Member] | Fixed Interest Rate [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Long-term debt | 1,300,000,000 | 1,300,000,000 | 1,300,000,000 | |||||
Fair value of fixed interest rate debt | 1,200,000,000 | $ 1,200,000,000 | 1,100,000,000 | |||||
Maximum [Member] | Purchased Intangibles [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible assets, average useful life in years | 15 years | |||||||
Maximum [Member] | Patents and other intangibles [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible assets, average useful life in years | 10 years | |||||||
Maximum [Member] | Amended and extended January 2019 Program [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Stock repurchase program authorization amount | 4,800,000,000 | |||||||
Minimum [Member] | Purchased Intangibles [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible assets, average useful life in years | 1 year | |||||||
Minimum [Member] | Patents and other intangibles [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Finite-lived intangible assets, average useful life in years | 1 year | |||||||
Held By Foreign Subsidiaries [Member] | ||||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||||||
Cash, cash equivalents and investments | $ 272,000,000 | $ 272,000,000 | $ 472,000,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts Roll Forward (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $ 14,311 | $ 13,228 |
Additions | 3,075 | 3,690 |
Deduction | (2,432) | (3,571) |
Ending balance | $ 14,954 | $ 13,347 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Waters 401(k) Restoration Plan assets | $ 28,485 | $ 25,532 |
Total | 41,312 | 45,788 |
Contingent consideration | 1,509 | |
Total | 6,375 | 6,390 |
Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 53 | 231 |
Foreign currency exchange contracts | 211 | 98 |
Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 11,889 | 19,163 |
Foreign currency exchange contracts | 6,164 | 4,783 |
Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 885 | 862 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Waters 401(k) Restoration Plan assets | 28,485 | 25,532 |
Total | 28,485 | 25,532 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 12,827 | 20,256 |
Total | 6,375 | 4,881 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 53 | 231 |
Foreign currency exchange contracts | 211 | 98 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 2) [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | 11,889 | 19,163 |
Foreign currency exchange contracts | 6,164 | 4,783 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Contingent consideration | 1,509 | |
Total | $ 0 | $ 1,509 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Fair Value of Forward Foreign Exchange Contracts (Detail) - USD ($) | Jul. 01, 2023 | Dec. 31, 2022 |
Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | $ 53,000 | $ 231,000 |
Fair value, derivative liability | 211,000 | 98,000 |
Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative asset | 625,000,000 | |
Fair value, derivative asset | 11,889,000 | 19,163,000 |
Fair value, derivative liability | 6,164,000 | 4,783,000 |
Other Current Assets [Member] | Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative asset | 14,000,000 | 42,047,000 |
Fair value, derivative asset | 53,000 | 231,000 |
Other Current Liabilities [Member] | Foreign Currency Exchange Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative liability | 34,226,000 | 13,450,000 |
Fair value, derivative liability | 211,000 | 98,000 |
Other Assets [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative asset | 425,000,000 | |
Notional value, derivative liability | 400,000,000 | |
Fair value, derivative asset | 11,889,000 | 19,163,000 |
Other Liabilities [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional value, derivative liability | 200,000,000 | 185,000,000 |
Fair value, derivative liability | 6,164,000 | 4,783,000 |
Accumulated other comprehensive income [Member] | Cross Currency Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, derivative asset | $ 1,370,000 | $ 10,026,000 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Gains (Losses) on Foreign Exchange Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Cross Currency Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Interest earned | $ 2,673 | $ 2,077 | $ 5,328 | $ 3,852 |
Cost of Sales [Member] | Foreign Currency Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Realized gains (losses) on closed contracts | 675 | (1,292) | 705 | (2,791) |
Unrealized losses on open contracts | (213) | (66) | (291) | (555) |
Cumulative net pre-tax gains (losses) | 462 | (1,358) | 414 | (3,346) |
Stockholders' (Deficit) Equity [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Unrealized (losses) gains on open contracts | $ (1,400) | $ 30,516 | $ (8,656) | $ 42,704 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Activity of Company's Accrued Warranty Liability (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at Beginning of Period | $ 11,949 | $ 10,718 |
Accruals for Warranties | 3,983 | 4,084 |
Settlements Made | (3,523) | (4,646) |
Balance at End of Period | $ 12,409 | $ 10,156 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Other Long-Term Liabilities [Member] | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances | $ 69 | $ 57 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Activity of the Company's Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2023 | Jul. 02, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Balance at the beginning of the period | $ 285,175 | $ 273,598 |
Recognition of revenue included in balance at beginning of the period | (176,508) | (173,606) |
Revenue deferred during the period, net of revenue recognized | 284,863 | 240,928 |
Balance at the end of the period | $ 393,530 | $ 340,920 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Estimated Amount of Deferred Revenue and Customer Advances (Detail) - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 324,665 | $ 227,908 |
Deferred revenue and customer advances expected to be recognized | 393,530 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 324,665 | |
Deferred revenue and customer advances recognition period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-31 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 42,196 | |
Deferred revenue and customer advances recognition period | 24 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-31 | ||
Revenue Recognition [Line Items] | ||
Deferred revenue and customer advances expected to be recognized | $ 26,669 | |
Deferred revenue and customer advances recognition period | 25 months |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Millions | Jul. 01, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Time Deposits | $ 0.9 | $ 0.9 |
Inventories - Inventory, Net of
Inventories - Inventory, Net of Reserves (Detail) - USD ($) $ in Thousands | Jul. 01, 2023 | Dec. 31, 2022 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw materials | $ 238,392 | $ 205,760 |
Work in progress | 26,941 | 19,899 |
Finished goods | 271,495 | 230,051 |
Total inventories | $ 536,828 | $ 455,710 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 16, 2023 | Jul. 01, 2023 | Jul. 01, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Business acquisition, goodwill, not deductible for tax purposes | $ 879,000 | $ 1,313,501 | $ 1,313,501 | $ 430,328 |
Wyatt Technology LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | 40,000 | |||
Transaction Related Costs | 4,000 | 12,000 | ||
Expenses | 4,000 | 4,000 | ||
Operating Costs And Expenses | 40,000 | |||
Net Operating Loss | 3,000 | 3,000 | ||
Net Sales | $ 16,000 | $ 16,000 | ||
Wyatt [Member] | ||||
Business Acquisition [Line Items] | ||||
Aggregate consideration paid for acquird entity | $ 1,300,000 |
Acquisitions - Summary of busin
Acquisitions - Summary of business combination assets acquired liabilities assumed (Detail) - USD ($) $ in Thousands | May 16, 2023 | Jul. 01, 2023 | Dec. 31, 2022 |
Identifiable Net Assets (Liabilities) Acquired | |||
Intangible assets | $ 418,100 | ||
Goodwill | $ 879,000 | $ 1,313,501 | $ 430,328 |
Wyatt [Member] | |||
Disclosure Of Business Combination Assets Acquired Liabilities Assumed [Line Items] | |||
Cash paid | 1,311,531 | ||
Less: cash acquired | (25,624) | ||
Net cash consideration | 1,285,907 | ||
Identifiable Net Assets (Liabilities) Acquired | |||
Accounts receivable | 20,099 | ||
Inventory | 14,706 | ||
Prepaid and other assets | 1,327 | ||
Property, plant and equipment, net | 9,056 | ||
Operating lease assets | 5,204 | ||
Intangible assets | 418,100 | ||
Accounts payable and accrued expenses | (31,664) | ||
Operating lease liabilities | (5,204) | ||
Tax liabilities | (3,871) | ||
Deferred revenue | (15,219) | ||
Other liabilities | (5,728) | ||
Total identifiable net assets acquired | 406,806 | ||
Goodwill | 879,101 | ||
Net cash consideration | $ 1,285,907 |
Acquisitions - Summary Of The P
Acquisitions - Summary Of The Purchase Price Allocated To The Intangible Assets Acquired And The Estimated Useful Lives (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 01, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Amount | $ 418,100 | |
Weighted-Average Life | 7 years | 7 years |
Developed technology [Member] | Wyatt Technology LLC [Member] | ||
Business Acquisition [Line Items] | ||
Amount | $ 80,000 | |
Weighted-Average Life | 10 years | |
Customer relationships [Member] | Wyatt Technology LLC [Member] | ||
Business Acquisition [Line Items] | ||
Amount | $ 330,600 | |
Weighted-Average Life | 10 years | |
Trade names [Member] | Wyatt Technology LLC [Member] | ||
Business Acquisition [Line Items] | ||
Amount | $ 7,500 | |
Weighted-Average Life | 5 years |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | May 16, 2023 | Dec. 31, 2022 | |
Goodwill | $ 1,313,501 | $ 1,313,501 | $ 879,000 | $ 430,328 | ||
Goodwill foreign currency translation adjustments | 4,000 | |||||
Intangible assets, gross foreign currency translation adjustments | 18,000 | |||||
Intangible assets, accumulated amortization foreign currency translation adjustments | 11,000 | |||||
Amortization expense | 18,000 | $ 15,000 | 30,000 | $ 30,000 | ||
Future amortization expense, year 1 | 92,000 | 92,000 | ||||
Future amortization expense, year 2 | 92,000 | 92,000 | ||||
Future amortization expense, year 3 | 92,000 | 92,000 | ||||
Future amortization expense, year 4 | 92,000 | 92,000 | ||||
Future amortization expense, year 5 | 92,000 | 92,000 | ||||
Intangible assets other than goodwill capitalized during the period | $ 431,000 | $ 12,000 | 445,000 | $ 24,000 | ||
Wyatt [Member] | ||||||
Goodwill acquired | $ 879,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 01, 2023 | Dec. 31, 2022 | |
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,373,960 | $ 915,298 |
Accumulated Amortization | $ 724,229 | $ 687,899 |
Weighted-Average Amortization Period | 7 years | 7 years |
Trademarks [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,680 | $ 9,680 |
Software Development [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 627,965 | 589,604 |
Accumulated Amortization | $ 467,233 | $ 441,414 |
Weighted-Average Amortization Period | 5 years | 5 years |
Purchased Intangibles [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 612,946 | $ 197,805 |
Accumulated Amortization | $ 171,959 | $ 166,735 |
Weighted-Average Amortization Period | 10 years | 11 years |
Licensing Agreements [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 14,682 | $ 14,070 |
Accumulated Amortization | $ 7,691 | $ 6,729 |
Weighted-Average Amortization Period | 7 years | 6 years |
Patents and Other Intangibles [Member] | ||
Finite Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 108,687 | $ 104,139 |
Accumulated Amortization | $ 77,346 | $ 73,021 |
Weighted-Average Amortization Period | 8 years | 8 years |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | ||||
May 16, 2023 | Jul. 01, 2023 | Mar. 03, 2023 | Dec. 31, 2022 | Sep. 17, 2021 | |
Debt Instrument [Line Items] | |||||
Debt facility fee | The interest rates applicable under the Credit Facility are, at the Company’s option, equal to either the alternate base rate (which is a rate per annum equal to the greatest of (1) the prime rate in effect on such day, (2) the Federal Reserve Bank of New York Rate on such day plus 1/2 of 1% per annum and (3) the adjusted Term SOFR rate for a one-month interest period as published two U.S. Government Securities Business Days prior to such day (or if such day is not a U.S. Government Securities Business Day, the immediately preceding U.S. Government Securities Business Day), plus 1% annum) or the applicable 1, 3 or 6 month adjusted Term SOFR or EURIBO rate for euro-denominated loans, in each case, plus an interest rate margin based upon the Company’s leverage ratio, which can range between 0 and 12.5 basis points for alternate base rate loans and between 80 and 112.5 basis points for Term SOFR or EURIBO rate loans. The facility fee on the Credit Facility ranges between 7.5 and 25 basis points per annum, based on the leverage ratio, of the amount of the revolving facility commitments and the outstanding term loan. | ||||
Long-term debt | $ 2,580,198,000 | $ 1,524,878,000 | |||
Line of credit maximum borrowing capacity | 113,000,000 | $ 2,000,000,000 | 113,000,000 | ||
Long term debt gross | $ 2,600,000,000 | ||||
Debt instrument, increase (decrease), net | $ 1,200,000,000 | ||||
Cross Currency Interest Rate Contract [Member] | |||||
Debt Instrument [Line Items] | |||||
Notional value, derivative asset | $ 625,000,000 | ||||
Derivative instrument, term | 3 years | ||||
Notes Payable to Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused borrowing capacity | $ 700,000,000 | 1,500,000,000 | |||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
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. In addition, these senior unsecured notes include customary negative covenants, affirmative covenants, representations and warranties and events of default. | ||||
Long-term debt | $ 1,300,000,000 | $ 1,300,000,000 | |||
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. 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 | ||||
Debt instrument percentage of the amount to be prepaid | 10% | ||||
Debt instrument interest coverage ratio | 3.50% | ||||
Debt instrument leverage ratio | 3.50% | ||||
Credit Agreements and Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Weighted-average interest rate | 4.68% | 3.54% | |||
Revolving Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Face value of debt | $ 1,800,000,000 | ||||
2021 Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term debt gross | $ 1,300,000,000 | $ 270,000,000 | |||
Debt Instrument, Term | 5 years | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 200,000,000 |
Debt - Summary of Senior Unsecu
Debt - Summary of Senior Unsecured Notes Issued (Detail) - USD ($) $ in Millions | May 11, 2023 | Jul. 01, 2023 | Dec. 31, 2022 |
Series P [Member] | |||
Debt Instrument [Line Items] | |||
Term | 5 years | ||
Interest Rate | 4.91% | 4.91% | 4.91% |
Face Value | $ 50 | ||
Maturity Date | May 31, 2028 | ||
Series Q [Member] | |||
Debt Instrument [Line Items] | |||
Term | 7 years | ||
Interest Rate | 4.91% | 4.91% | 4.91% |
Face Value | $ 50 | ||
Maturity Date | May 31, 2030 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Detail) - USD ($) $ in Thousands | Jul. 01, 2023 | May 16, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Total notes payable and debt, current | $ 50,000 | $ 50,000 | |
Long-term debt | $ 2,600,000 | ||
Unamortized debt issuance costs | (4,802) | (5,122) | |
Total long-term debt | 2,580,198 | 1,524,878 | |
Total debt | 2,630,198 | 1,574,878 | |
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,325,000 | 270,000 | |
Senior Unsecured Notes Series I [Member] | |||
Debt Instrument [Line Items] | |||
Total notes payable and debt, current | 0 | 50,000 | |
Senior Unsecured Notes Series G [Member] | |||
Debt Instrument [Line Items] | |||
Total notes payable and debt, current | 50,000 | 50,000 | |
Senior Unsecured Notes Series H [Member] | |||
Debt Instrument [Line Items] | |||
Total notes payable and debt, current | 0 | 50,000 | |
Senior Unsecured Notes Series K [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 160,000 | 160,000 | |
Senior Unsecured Notes Series L [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 200,000 | 200,000 | |
Senior Unsecured Notes Series M [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300,000 | 300,000 | |
Senior Unsecured Notes Series N [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 100,000 | 100,000 | |
Senior Unsecured Notes Series O [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 400,000 | 400,000 | |
Senior Unsecured Notes Series P [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 50,000 | 0 | |
Senior Unsecured Notes Series Q [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 50,000 | $ 0 |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Debt (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended | |
Jul. 01, 2023 | Dec. 31, 2022 | May 11, 2023 | |
Senior Unsecured Notes Series G [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 3.92% | 3.92% | |
Senior Unsecured Notes Series H [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.25% | 1.25% | |
Senior Unsecured Notes Series I [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 3.13% | 3.13% | |
Senior Unsecured Notes Series K [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 3.44% | 3.44% | |
Senior Unsecured Notes Series L [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 3.31% | 3.31% | |
Senior Unsecured Notes Series M [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 3.53% | 3.53% | |
Senior Unsecured Notes Series N [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 1.68% | 1.68% | |
Senior Unsecured Notes Series O [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 2.25% | 2.25% | |
Senior Unsecured Notes Series P [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 4.91% | 4.91% | 4.91% |
Senior Unsecured Notes Series Q [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 4.91% | 4.91% | 4.91% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Income Taxes [Line Items] | ||||
Income tax holiday amount | $ 7 | $ 10 | ||
Income tax holiday per share benefit | $ 0.11 | $ 0.16 | ||
Effective income tax rate | 16.50% | 14.30% | 15.60% | 14.30% |
Gross unrecognized tax benefit would impact the Company's effective tax rate | $ 30 | $ 29 | $ 30 | $ 29 |
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Expected change in unrecognized tax benefits in the next twelve months | $ 18 | $ 18 | ||
United States [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 21% | |||
Ireland [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 12.50% | |||
U.K [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 25% | |||
Singapore [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 17% | |||
Singapore [Member] | April Two Thousand And Twenty One To March Two Thousand And Twenty Six [Member] | New Contractual Arrangement [Member] | ||||
Income Taxes [Line Items] | ||||
Statutory tax rate | 5% |
Other Commitments and Conting_2
Other Commitments and Contingencies Additional Information (Detail) | 6 Months Ended |
Jul. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum License Fees Payable | Future minimum license fees payable under existing license agreements as of July 1, 2023 are immaterial for the years ended December 31, 2023 and thereafter. |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share Reconciliation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income per basic common share, Net Income (Numerator) | $ 150,554 | $ 164,864 | $ 291,477 | $ 324,695 |
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities, Net Income | 0 | 0 | 0 | 0 |
Net income per diluted common share, Net Income (Numerator) | $ 150,554 | $ 164,864 | $ 291,477 | $ 324,695 |
Net income per basic common share, Weighted-Average Shares (Denominator) | 58,857 | 60,206 | 58,703 | 60,399 |
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities, Weighted-Average Shares (Denominator) | 153 | 304 | 206 | 345 |
Net income per diluted common share, Weighted-Average Shares (Denominator) | 59,010 | 60,510 | 58,909 | 60,744 |
Net income per basic common share, Per Share Amount | $ 2.56 | $ 2.74 | $ 4.97 | $ 5.38 |
Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities, Per Share Amount | (0.01) | (0.02) | (0.02) | (0.03) |
Net income per diluted common share, Per Share Amount | $ 2.55 | $ 2.72 | $ 4.95 | $ 5.35 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 1 | 1 | 1 | 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 599,823 | $ 374,937 | $ 504,488 | $ 367,554 |
Other comprehensive (loss) income, net of tax | 3,996 | (23,664) | 12,772 | (29,524) |
Ending balance | 771,229 | 392,124 | 771,229 | 392,124 |
Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (146,120) | |||
Other comprehensive (loss) income, net of tax | 12,767 | |||
Ending balance | (133,353) | (133,353) | ||
Unrealized Gain (Loss) on Retirement Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 4,548 | |||
Other comprehensive (loss) income, net of tax | 5 | |||
Ending balance | 4,553 | 4,553 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (132,796) | (117,725) | (141,572) | (111,865) |
Other comprehensive (loss) income, net of tax | 12,772 | |||
Ending balance | $ (128,800) | $ (141,389) | $ (128,800) | $ (141,389) |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 6 Months Ended |
Jul. 01, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 1 |
Business Segment Information _2
Business Segment Information - Summary of Net Sales for Company's Products and Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 740,576 | $ 714,319 | $ 1,425,250 | $ 1,404,891 |
Waters Instrument Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 279,940 | 280,846 | 524,151 | 550,808 |
Chemistry Consumables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 135,919 | 131,947 | 269,434 | 257,565 |
TA Instrument Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 62,067 | 56,837 | 120,798 | 112,097 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 477,926 | 469,630 | 914,383 | 920,470 |
Waters Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 237,376 | 222,359 | 461,725 | 439,935 |
TA Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 25,274 | 22,330 | 49,142 | 44,486 |
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 262,650 | $ 244,689 | $ 510,867 | $ 484,421 |
Business Segment Information _3
Business Segment Information - Summary of Geographic Sales Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 740,576 | $ 714,319 | $ 1,425,250 | $ 1,404,891 |
China [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 114,981 | 138,740 | 231,046 | 259,772 |
Japan [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 37,380 | 37,504 | 83,874 | 86,127 |
Asia Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 102,262 | 101,766 | 192,784 | 186,445 |
Total Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 254,623 | 278,010 | 507,704 | 532,344 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 238,955 | 213,815 | 441,260 | 422,528 |
Americas Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 43,972 | 43,456 | 88,088 | 83,580 |
Total Americas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 282,927 | 257,271 | 529,348 | 506,108 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 203,026 | $ 179,038 | $ 388,198 | $ 366,439 |
Business Segment Information _4
Business Segment Information - Summary of Net Sales by Customer Class (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Revenue, Major Customer [Line Items] | ||||
Total net sales | $ 740,576 | $ 714,319 | $ 1,425,250 | $ 1,404,891 |
Pharmaceutical [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total net sales | 426,744 | 437,171 | 811,642 | 852,943 |
Industrial [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total net sales | 229,655 | 208,517 | 439,305 | 417,914 |
Academic and government [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total net sales | $ 84,177 | $ 68,631 | $ 174,303 | $ 134,034 |
Business Segment Information _5
Business Segment Information - Summary of Net Sales of Company Recognized at a Point in Time Versus Over Time (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2023 | Jul. 02, 2022 | Jul. 01, 2023 | Jul. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 740,576 | $ 714,319 | $ 1,425,250 | $ 1,404,891 |
Chemistry Consumables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 135,919 | 131,947 | 269,434 | 257,565 |
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 262,650 | 244,689 | 510,867 | 484,421 |
Net Sales Recognized at a Point in Time: [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 570,637 | 561,201 | 1,095,301 | 1,097,820 |
Net Sales Recognized at a Point in Time: [Member] | Instrument Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 342,007 | 337,683 | 644,949 | 662,905 |
Net Sales Recognized at a Point in Time: [Member] | Chemistry Consumables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 135,919 | 131,947 | 269,434 | 257,565 |
Net Sales Recognized at a Point in Time: [Member] | Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 92,711 | 91,571 | 180,918 | 177,350 |
Net Sales Recognized Over Time: [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 740,576 | 714,319 | 1,425,250 | 1,404,891 |
Net Sales Recognized Over Time: [Member] | Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 169,939 | $ 153,118 | $ 329,949 | $ 307,071 |