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Business Segment Information
 6 Months Ended
Jun. 27, 2020
Segment Reporting [Abstract]  
Business Segment Information
1
3
 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
and TA
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. 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 and six months ended June 27, 2020 and June 29, 2019 (in thousands):
 
  
Three Months Ended
   
Six Months Ended
 
    
June 27, 2020
     
June 29, 2019
     
June 27, 2020
     
June 29, 2019
  
Product net sales:
   
     
     
     
 
Waters instrument systems
   $
181,399
    $
238,777
    $
324,228
    $
423,389
 
Chemistry consumables
    
95,105
     
100,292
     
192,350
     
199,545
 
TA instrument systems
    
38,416
     
48,196
     
72,525
     
84,834
 
                                 
Total product sales
    
314,920
     
387,265
     
589,103
     
707,768
 
Service net sales:
   
     
     
     
 
Waters service
    
189,205
     
192,048
     
363,342
     
368,097
 
TA service
    
15,859
     
19,849
     
32,478
     
37,159
 
                                 
Total service sales
    
205,064
     
211,897
     
395,820
     
405,256
 
                                 
Total net sales
  $
519,984
    $
599,162
    $
984,923
    $
1,113,024
 
                                 
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 June 27, 2020 and June 29, 2019 (in thousands):
 
Three Months Ended
   
Six Months Ended
 
    
June 27, 2020
     
June 29, 2019
     
June 27, 2020
     
June 29, 2019
  
Net Sales:
   
     
     
     
 
Asia:
    
     
     
     
 
China
   $
89,816
    $
112,796
    $
137,047
    $
202,887
 
Japan
    
41,230
     
45,958
     
86,319
     
89,462
 
Asia Other
    
77,163
     
80,081
     
143,923
     
146,998
 
                                 
Total Asia
    
208,209
     
238,835
     
367,289
     
439,347
 
Americas:
    
     
     
     
 
United States
      148,928        173,940        292,826        323,097  
Americas Other
    
25,854
     
32,835
     
54,132
     
65,546
 
                                 
Total Americas
    
174,782
     
206,775
     
346,958
     
388,643
 
Europe
    
136,993
     
153,552
     
270,676
     
285,034
 
                                 
Total net sales
  $
519,984
    $
599,162
    $
984,923
    $
1,113,024
 
                                 
Net sales by customer class are as follows for the three and six months ended June 27, 2020 and June 29, 2019 (in thousands):
 
Three Months Ended
   
Six Months Ended
 
    
June 27, 2020
     
June 29, 2019
     
June 27, 2020
     
June 29, 2019
  
Pharmaceutical
  $
311,018
    $
350,145
    $
583,581
    $
644,657
 
Industrial
   
152,110
     
176,109
     
295,464
     
331,327
 
Academic and governmental
   
56,856
     
72,908
     
105,878
     
137,040
 
                                 
Total net sales
   $
519,984
    $
599,162
    $
984,923
    $
1,113,024
 
                                 
Net sales for the Company recognized at a point in time versus over time are as follows for the three and six months ended June 27, 2020 and June 29, 2019 (in thousands):
 
Three Months Ended
   
Six Months Ended
 
    
June 27, 2020
     
June 29, 2019
     
June 27, 2020
     
June 29, 2019
  
Net sales recognized at a point in time:
   
     
     
     
 
Instrument systems
   $
219,815
    $
286,973
    $
396,753
    $
508,223
 
Chemistry consumables
    
95,105
     
100,292
     
192,350
     
199,545
 
Service sales recognized at a point in time (time & materials)
    
78,867
     
84,807
     
146,609
     
157,566
 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales recognized at a point in time
    
393,787
     
472,072
     
735,712
     
865,334
 
  
 
 
     
 
 
     
 
 
     
 
 
  
Net sales recognized over time:
   
     
     
     
 
Service and software maintenance sales recognized over time (contracts)
    
126,197
     
127,090
     
249,211
     
247,690
 
                                 
Total net sales
  $
519,984
    $
599,162
    $
984,923
    $
1,113,024