Business Segment Information

12 Months Ended

Dec. 31, 2017

Business Segment Information [Abstract]

16 Business Segment Information

The accounting standards for segment reporting establish standards for reporting information about operating segments in annual financial statements and require selected information for those segments to be presented in interim financial reports of public business enterprises. They also establish standards for related disclosures about products and services, geographic areas and major customers. 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^® and TA^®.

The Waters operating segment is primarily in the business of designing, manufacturing, distributing 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, distributing 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. Please refer to the consolidated financial statements for financial information regarding the one reportable segment of the Company.

Net sales for the Company’s products and services are as follows for the years ended December 31, 2017, 2016 and 2015 (in thousands):

			2017		2016		2015
Product net sales:
	Waters instrument systems		$	988,750	$	943,218	$	895,626
	Chemistry consumables			372,157		345,413		317,941
	TA instrument systems			191,442		171,665		171,689
		Total product sales		1,552,349		1,460,296		1,385,256

Service net sales:
	Waters service			686,656		639,432		593,301
	TA service			70,073		67,695		63,775
		Total service sales		756,729		707,127		657,076

Total net sales			$	2,309,078	$	2,167,423	$	2,042,332

Geographic sales information is presented below for the years ended December 31, 2017, 2016 and 2015 (in thousands):

				2017		2016		2015
Net Sales:
	United States			$	669,274	$	665,280	$	656,361
	Europe				636,472		577,257		555,886
	Asia:
		China			387,059		331,354		278,600
		Japan			167,258		167,977		145,184
		Asia Other			308,300		283,653		272,179
			Total Asia		862,617		782,984		695,963
	Other				140,715		141,902		134,122
Total net sales				$	2,309,078	$	2,167,423	$	2,042,332

The Other category includes Canada, Latin America and Puerto Rico. Net sales are attributable to geographic areas based on the region of destination. None of the Company’s individual customers accounts for more than 2% of annual Company sales.

Long-lived assets information at December 31, 2017 and 2016 is presented below (in thousands):

		2017		2016		2015
Long-lived assets:
	United States	$	186,344	$	207,062	$	192,352
	Europe		136,440		114,848		128,189
	Asia		24,774		14,376		11,868
	Other		1,720		832		946
Total long-lived assets		$	349,278	$	337,118	$	333,355

The Other category includes Canada, Latin America and Puerto Rico. Long-lived assets exclude goodwill, other intangible assets and other assets.