XML 38 R25.htm IDEA: XBRL DOCUMENT v3.22.4
Business Segment Information
 12 Months Ended
Dec. 31, 2022
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, 2022, 2021 and 2020 (in thousands):

 
 
  
2022
 
  
2021
 
  
2020
 
Product net sales:
  
  
  
Waters instrument systems
    $ 1,210,456      $ 1,089,248      $ 890,855  
Chemistry consumables
      525,399        507,209        432,080  
TA instrument systems
      252,314        225,613        174,398  
    
 
 
     
 
 
     
 
 
  
Total product sales
      1,988,169        1,822,070        1,497,333  
Service net sales:
                           
Waters service
      890,607        876,626        794,189  
TA service
      93,180        87,178        73,843  
    
 
 
     
 
 
     
 
 
  
Total service sales
      983,787        963,804        868,032  
    
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,971,956      $ 2,785,874      $ 2,365,365  
    
 
 
     
 
 
     
 
 
  
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, 2022, 2021 and 2020 (in thousands):
 
 
  
2022
 
  
2021
 
  
2020
 
Net Sales:
                           
Asia:
                           
China
    $ 565,143      $ 521,128      $ 404,352  
Japan
      167,220        182,597        179,815  
Asia Other
      399,380        372,040        315,010  
    
 
 
     
 
 
     
 
 
  
Total Asia
      1,131,743        1,075,765        899,177  
Americas:
                           
United States
      886,140        774,014        678,313  
Americas Other
      169,495        151,206        119,529  
    
 
 
     
 
 
     
 
 
  
Total Americas
      1,055,635        925,220        797,842  
Europe
      784,578        784,889        668,346  
    
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,971,956      $ 2,785,874      $ 2,365,365  
    
 
 
     
 
 
     
 
 
  
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, 2022, 2021 and 2020 (in
thousands):
 
 
  
2022
 
  
2021
 
  
2020
 
Pharmaceutical
    $ 1,751,665      $ 1,667,061      $ 1,386,966  
Industrial
      909,805        829,204        707,772  
Academic and government
      310,486        289,609        270,627  
    
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,971,956      $ 2,785,874      $ 2,365,365  
    
 
 
     
 
 
     
 
 
  
 
 
Net sales for the Company recognized at a point in time versus over time are as follows for the years ended December 31, 2022, 2021 and 2020 (in thousands):

 
 
  
2022
 
  
2021
 
  
2020
 
Net sales recognized at a point in time:
 
 
 
Instrument systems
    $ 1,462,770      $ 1,314,861      $ 1,065,253  
Chemistry consumables
      525,399        507,209        432,080  
Service sales recognized at a point in time (time & materials)
      367,501        354,666        365,776  
  
 
 
 
  
 
 
 
  
 
 
 
Total net sales recognized at a point in time
      2,355,670        2,176,736        1,863,109  
Net sales recognized over time:
                           
Service and software maintenance sales recognized over time (contracts)
      616,286        609,138        502,256  
    
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,971,956      $ 2,785,874      $ 2,365,365  
    
 
 
     
 
 
     
 
 
  
Long-lived assets information at December 31, 2022, 2021 and 2020 is presented below (in thousands):

 
 
  
December 31,
 
 
  
2022
 
  
2021
 
  
2020
 
Long-lived assets:
  
  
  
United States
    $ 429,469      $ 395,446      $ 350,615  
Americas Other
      1,663        1,662        1,179  
    
 
 
     
 
 
     
 
 
  
Total Americas
      431,132        397,108        351,794  
Europe
      133,465        130,806        119,978  
Asia
      17,620        19,999        22,231  
    
 
 
     
 
 
     
 
 
  
Total long-lived assets
    $ 582,217      $ 547,913      $ 494,003  
    
 
 
     
 
 
     
 
 
  
The Americas Other category includes Canada, Latin America and Puerto Rico. Long-lived assets exclude goodwill, other intangible assets and other assets.