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Business Segment Information
 12 Months Ended
Dec. 31, 2023
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 and TA.
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, 2023, 2022 and 2021 (in thousa
nd
s):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
2023
     
2022
     
2021
  
Product net sales:
                           
Waters instrument systems
    $ 1,108,702      $ 1,210,456      $ 1,089,248  
Chemistry consumables
      541,469        525,399        507,209  
TA instrument systems
      252,879        252,314        225,613  
    
 
 
     
 
 
     
 
 
  
Total product sales
      1,903,050        1,988,169        1,822,070  
Service net sales:
                           
Waters service
      951,419        890,607        876,626  
TA service
      101,947        93,180        87,178  
    
 
 
     
 
 
     
 
 
  
Total service sales
      1,053,366        983,787        963,804  
    
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,956,416      $ 2,971,956      $ 2,785,874  
    
 
 
     
 
 
     
 
 
  
 
 
Net sales are attributable to geographic areas
based
on the region of destination. Geographic sales information is presented below for the ye
a
rs ended December 31, 2023, 2022 and 2021 (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
2023
     
2022
     
2021
  
Net Sales:
                           
Asia:
                           
China
    $ 440,707      $ 565,143      $ 521,128  
Japan
      167,202        167,220        182,597  
Asia Other
      399,916        399,380        372,040  
    
 
 
     
 
 
     
 
 
  
Total Asia
      1,007,825        1,131,743        1,075,765  
Americas:
                           
United States
      927,982        886,140        774,014  
Americas Other
      180,591        169,495        151,206  
    
 
 
     
 
 
     
 
 
  
Total Americas
      1,108,573        1,055,635        925,220  
Europe
      840,018        784,578        784,889  
    
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,956,416      $ 2,971,956      $ 2,785,874  
    
 
 
     
 
 
     
 
 
  
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, 2023, 2022 and 2021 (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
2023
     
2022
     
2021
  
Pharmaceutical
    $ 1,696,875      $ 1,751,665      $ 1,667,061  
Industrial
      909,003        909,805        829,204  
Academic and government
      350,538        310,486        289,609  
    
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,956,416      $ 2,971,956      $ 2,785,874  
    
 
 
     
 
 
     
 
 
  
Net sales for the Company recognized at a point in time versus over time are as follows for the years ended December 31, 2023, 2022 and 2021 (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
2023
     
2022
     
2021
  
Net sales recognized at a point in time:
                           
Instrument systems
    $ 1,361,581      $ 1,462,770      $ 1,314,861  
Chemistry consumables
      541,469        525,399        507,209  
Service sales recognized at a point in time (time & materials)
      372,530        367,501        354,666  
    
 
 
     
 
 
     
 
 
  
Total net sales recognized at a point in time
      2,275,580        2,355,670        2,176,736  
Net sales recognized over time:
                           
Service and software maintenance sales recognized over time (contracts)
      680,836        616,286        609,138  
    
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,956,416      $ 2,971,956      $ 2,785,874  
    
 
 
     
 
 
     
 
 
  
 
 
Long-lived assets information at December 31, 2023, 2022 and 2021 is presented below (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
December 31,
  
    
2023
     
2022
     
2021
  
Long-lived assets:
                           
United States
    $ 440,993      $ 429,469      $ 395,446  
Americas Other
      2,632        1,663        1,662  
    
 
 
     
 
 
     
 
 
  
Total Americas
      443,625        431,132        397,108  
Europe
      167,948        133,465        130,806  
Asia
      27,500        17,620        19,999  
    
 
 
     
 
 
     
 
 
  
Total long-lived assets
    $ 639,073      $ 582,217      $ 547,913  
    
 
 
     
 
 
     
 
 
  
The Americas Other category includes Canada, Latin America and Puerto Rico. Long-lived assets exclude goodwill, other intangible assets and other assets.