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Business Segment Information
 6 Months Ended
Jul. 01, 2023
Segment Reporting [Abstract]  
Business Segment Information
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
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.
Net sales for the Company’s products and services are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands):
 
    
Three Months Ended
     
Six Months Ended
  
    
July 1, 2023
     
July 2, 2022
     
July 1, 2023
     
July 2, 2022
  
Product net sales:
            
Waters instrument systems
    $ 279,940      $ 280,846      $ 524,151      $ 550,808  
Chemistry consumables
      135,919        131,947        269,434        257,565  
TA instrument systems
      62,067        56,837        120,798        112,097  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total product sales
      477,926        469,630        914,383        920,470  
Service net sales:
            
Waters service
      237,376        222,359        461,725        439,935  
TA service
      25,274        22,330        49,142        44,486  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total service sales
      262,650        244,689        510,867        484,421  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales
    $ 740,576      $ 714,319      $ 1,425,250      $ 1,404,891  
  
 
 
     
 
 
     
 
 
     
 
 
  
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 July 1, 2023 and July 2, 2022 (in thousands):
 
    
Three Months Ended
     
Six Months Ended
  
    
July 1, 2023
     
July 2, 2022
     
July 1, 2023
     
July 2, 2022
  
Net Sales:
            
Asia:
            
China
    $ 114,981      $ 138,740      $ 231,046      $ 259,772  
Japan
      37,380        37,504        83,874        86,127  
Asia Other
      102,262        101,766        192,784        186,445  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Asia
      254,623        278,010        507,704        532,344  
Americas:
            
United States
      238,955        213,815        441,260        422,528  
Americas Other
      43,972        43,456        88,088        83,580  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Americas
      282,927        257,271        529,348        506,108  
Europe
      203,026        179,038        388,198        366,439  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales
    $ 740,576      $ 714,319      $ 1,425,250      $ 1,404,891  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
Net sales by customer class are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands):
 
    
Three Months Ended
     
Six Months Ended
  
    
July 1, 2023
     
July 2, 2022
     
July 1, 2023
     
July 2, 2022
  
Pharmaceutical
    $ 426,744      $ 437,171      $ 811,642      $ 852,943  
Industrial
      229,655        208,517        439,305        417,914  
Academic and government
      84,177        68,631        174,303        134,034  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales
    $ 740,576      $ 714,319      $ 1,425,250      $ 1,404,891  
  
 
 
     
 
 
     
 
 
     
 
 
  
Net sales for the Company recognized at a point in time versus over time are as follows for the three and six months ended July 1, 2023 and July 2, 2022 (in thousands):
 
    
Three Months Ended
     
Six Months Ended
  
    
July 1, 2023
     
July 2, 2022
     
July 1, 2023
     
July 2, 2022
  
Net sales recognized at a point in time:
            
Instrument systems
    $ 342,007      $ 337,683      $ 644,949      $ 662,905  
Chemistry consumables
      135,919        131,947        269,434        257,565  
Service sales recognized at a point in time (time & materials)
      92,711        91,571        180,918        177,350  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales recognized at a point in time
      570,637        561,201        1,095,301        1,097,820  
Net sales recognized over time:
            
Service and software maintenance sales recognized over time (contracts)
      169,939        153,118        329,949        307,071  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales
    $ 740,576      $ 714,319      $ 1,425,250      $ 1,404,891