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Business Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Business Segment Information
18    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
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 years ended December 31, 2020, 2019 and 2018 (in thousands):
 
 
  
2020
 
  
2019
 
  
2018
 
Product net sales:
  
      
  
      
  
      
Waters instrument systems
  
$
890,855
 
  
$
963,871
 
  
$
1,000,625
 
Chemistry consumables
  
 
432,080
 
  
 
412,018
 
  
 
400,287
 
TA instrument systems
  
 
174,398
 
  
 
191,300
 
  
 
204,081
 
    
 
 
     
 
 
     
 
 
  
Total product sales
  
 
1,497,333
 
  
 
1,567,189
 
  
 
1,604,993
 
Service net sales:
  
      
  
      
  
      
Waters service
  
 
794,189
 
  
 
761,594
 
  
 
738,433
 
TA service
  
 
73,843
 
  
 
77,813
 
  
 
76,503
 
    
 
 
     
 
 
     
 
 
  
Total service sales
  
 
868,032
 
  
 
839,407
 
  
 
814,936
 
    
 
 
     
 
 
     
 
 
  
Total net sales
  
$
2,365,365
 
  
$
2,406,596
 
  
$
2,419,929
 
    
 
 
     
 
 
     
 
 
  
 
Net sales are attributable to geographic areas based on the region of destination. Geographic sales information is presented below for the years ended December 31, 2020, 2019 and 2018 (in thousands):
 
 
  
2020
 
  
2019
 
  
2018
 
Net Sales:
  
      
  
      
  
      
Asia:
  
      
  
      
  
      
China
  
$
404,352
 
  
$
439,557
 
  
$
443,321
 
Japan
  
 
179,815
 
  
 
180,707
 
  
 
173,357
 
Asia Other
  
 
315,010
 
  
 
318,848
 
  
 
305,613
 
    
 
 
     
 
 
     
 
 
  
Total Asia
  
 
899,177
 
  
 
939,112
 
  
 
922,291
 
Americas:
  
      
  
      
  
      
United States
  
 
678,313
 
  
 
692,277
 
  
 
683,596
 
Americas Other
  
 
119,529
 
  
 
137,964
 
  
 
151,581
 
    
 
 
     
 
 
     
 
 
  
Total Americas
  
 
797,842
 
  
 
830,241
 
  
 
835,177
 
Europe
  
 
668,346
 
  
 
637,243
 
  
 
662,461
 
    
 
 
     
 
 
     
 
 
  
Total net sales
  
$
2,365,365
 
  
$
2,406,596
 
  
$
2,419,929
 
    
 
 
     
 
 
     
 
 
  
None of the Company’s individual customers accounts for more than 2% of annual Company sales. Net sales by customer class are as follows for the years ended December 31, 2020, 2019 and 2018 (in thousands):
 
 
  
2020
 
  
2019
 
  
2018
 
Pharmaceutical
  
$
1,386,966
 
  
$
1,365,275
 
  
$
1,365,731
 
Industrial
  
 
707,772
 
  
 
719,377
 
  
 
737,144
 
Academic and governmental
  
 
270,627
 
  
 
321,944
 
  
 
317,054
 
    
 
 
     
 
 
     
 
 
  
Total net sales
  
$
2,365,365
 
  
$
2,406,596
 
  
$
2,419,929
 
    
 
 
     
 
 
     
 
 
  
Net sales for the Company recognized at a point in time versus over time are as follows for the years ended December 31, 2020, 2019 and 2018 (in thousands):
 
 
  
2020
 
  
2019
 
  
2018
 
Net sales recognized at a point in time:
  
      
  
      
  
      
Instrument systems
  
$
1,065,253
 
  
$
1,155,171
 
  
$
1,204,706
 
Chemistry consumables
  
 
432,080
 
  
 
412,018
 
  
 
400,287
 
Service sales recognized at a point in time (time & materials)
  
 
365,776
 
  
 
323,247
 
  
 
317,549
 
    
 
 
     
 
 
     
 
 
  
Total net sales recognized at a point in time
  
 
1,863,109
 
  
 
1,890,436
 
  
 
1,922,542
 
Net sales recognized over time:
  
      
  
      
  
      
Service and software sales recognized over time (contracts)
  
 
502,256
 
  
 
516,160
 
  
 
497,387
 
    
 
 
     
 
 
     
 
 
  
Total net sales
  
$
2,365,365
 
  
$
2,406,596
 
  
$
2,419,929
 
    
 
 
     
 
 
     
 
 
  
Long-lived assets information at December 31, 2020 and 2019 is presented below (in thousands):
 
 
  
2020
 
  
2019
 
  
2018
 
Long-lived assets:
  
      
  
      
  
      
United States
  
$
350,615
 
  
$
276,891
 
  
$
203,664
 
Americas Other
  
 
1,179
 
  
 
1,929
 
  
 
1,680
 
    
 
 
     
 
 
     
 
 
  
Total Americas
  
 
351,794
 
  
 
278,820
 
  
 
205,344
 
Europe
  
 
119,978
 
  
 
116,734
 
  
 
118,513
 
Asia
  
 
22,231
 
  
 
21,788
 
  
 
19,226
 
    
 
 
     
 
 
     
 
 
  
Total long-lived assets
  
$
494,003
 
  
$
417,342
 
  
$
343,083
 
    
 
 
     
 
 
     
 
 
  
The Other category includes Canada, Latin America and Puerto Rico. Long-lived assets exclude goodwill, other intangible assets and other assets.