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^® 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 three months ended March 31, 2018 and April 1, 2017 (in thousands):


	Three Months Ended
	March 31, 2018		April 1, 2017
Product net sales:
Waters instrument systems	$	198,103	$	197,789
Chemistry consumables		98,710		87,903
TA instrument systems		42,304		38,604

Total product sales		339,117		324,296
Service net sales:
Waters service		174,333		157,734
TA service		17,220		15,939

Total service sales		191,553		173,673

Total net sales	$	530,670	$	497,969

Geographic sales information is presented below for the three months ended March 31, 2018 and April 1, 2017 (in thousands):


	Three Months Ended
	March 31, 2018		April 1, 2017
Net Sales:
Asia:
China	$	93,828	$	85,122
Japan		42,765		41,297
Asia Other		63,687		68,687

Total Asia		200,280		195,106
Americas:
United States		146,821		139,234
Americas Other		34,889		35,416

Total Americas		181,710		174,650
Europe		148,680		128,213

Total net sales	$	530,670	$	497,969

Net sales by customer class are as follows for the three months ended March 31, 2018 and April 1, 2017 (in thousands):


	Three Months Ended
	March 31, 2018		April 1, 2017
Pharmaceutical	$	305,328	$	279,810
Industrial		162,330		161,303
Governmental and academic		63,012		56,856

Total net sales	$	530,670	$	497,969

Net sales for the Company recognized at a point in time versus over time are as follows for the three months ended March 31, 2018 and April 1, 2017 (in thousands):


	Three Months Ended
	March 31, 2018		April 1, 2017
Net sales recognized at a point in time:
Instrument systems	$	240,407	$	236,393
Chemistry consumables		98,710		87,903
Service sales recognized at a point in time (time & materials)		72,518		67,502

Total net sales recognized at a point in time		411,635		391,798
Net sales recognized over time:
Service and software sales recognized over time (contracts)		119,035		106,171

Total net sales	$	530,670	$	497,969