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Business Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segment Information
17  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 Chief Executive Officer is the CODM. The CODM evaluates the business based on our 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, 2024, 2023 and 2022 (in thousands):
 
    
2024
     
2023
     
2022
  
Product net sales:
         
Waters instrument systems
    $ 1,032,493      $ 1,108,702      $ 1,210,456  
Chemistry consumables
      565,481        541,469        525,399  
TA instrument systems
      246,202        252,879        252,314  
  
 
 
     
 
 
     
 
 
  
Total product sales
      1,844,176        1,903,050        1,988,169  
Service net sales:
         
Waters service
      1,006,447        951,419        890,607  
TA service
      107,764        101,947        93,180  
  
 
 
     
 
 
     
 
 
  
Total service sales
      1,114,211        1,053,366        983,787  
  
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,958,387      $ 2,956,416      $ 2,971,956  
  
 
 
     
 
 
     
 
 
  
 
 
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, 2024, 2023 and 2022 (in thousands):
 
    
2024
     
2023
     
2022
  
Net Sales:
         
Asia:
         
China
    $ 396,599      $ 440,707      $ 565,143  
Japan
      157,321        167,202        167,220  
Asia Other
      415,302        399,916        399,380  
  
 
 
     
 
 
     
 
 
  
Total Asia
      969,222        1,007,825        1,131,743  
Americas:
         
United States
      933,926        927,982        886,140  
Americas Other
      181,854        180,591        169,495  
  
 
 
     
 
 
     
 
 
  
Total Americas
      1,115,780        1,108,573        1,055,635  
Europe
      873,385        840,018        784,578  
  
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,958,387      $ 2,956,416      $ 2,971,956  
  
 
 
     
 
 
     
 
 
  
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, 2024, 2023 and 2022 (in thousands):
 
    
2024
     
2023
     
2022
  
Pharmaceutical
    $ 1,718,899      $ 1,696,875      $ 1,751,665  
Industrial
      908,486        909,003        909,805  
Academic and government
      331,002        350,538        310,486  
  
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,958,387      $ 2,956,416      $ 2,971,956  
  
 
 
     
 
 
     
 
 
  
Net sales for the Company recognized at a point in time versus over time are as follows for the years ended December 31, 2024, 2023 and 2022 (in thousands):
 
2024
2023
2022
Net sales recognized at a point in time:
Instrument systems
    $ 1,278,695      $ 1,361,581      $ 1,462,770  
Chemistry consumables
      565,481        541,469        525,399  
Service sales recognized at a point in time (time & materials)
      369,149        372,530        367,501  
  
 
 
     
 
 
     
 
 
  
Total net sales recognized at a point in time
      2,213,325        2,275,580        2,355,670  
Net sales recognized over time:
         
Service and software maintenance sales recognized over time (contracts)
      745,062        680,836        616,286  
  
 
 
     
 
 
     
 
 
  
Total net sales
    $ 2,958,387      $ 2,956,416      $ 2,971,956  
  
 
 
     
 
 
     
 
 
  
 
 

Long-lived assets information at December 31, 2024, 2023 and 2022 is presented below (in thousands):
 
    
December 31,
  
    
2024
     
2023
     
2022
  
Long-lived assets:
         
United States
    $ 445,883      $ 440,993      $ 429,469  
Americas Other
      1,971        2,632        1,663  
  
 
 
     
 
 
     
 
 
  
Total Americas
      447,854        443,625        431,132  
Europe
      176,310        167,948        133,465  
Asia
      27,036        27,500        17,620  
  
 
 
     
 
 
     
 
 
  
Total long-lived assets
    $ 651,200      $ 639,073      $ 582,217  
  
 
 
     
 
 
     
 
 
  
The Americas Other category includes Canada, Latin America and Puerto Rico. Long-lived assets exclude goodwill, other intangible assets and other assets.
The Company’s segment performance measure is net income attributable to Waters shareholders, which is used by our CODM when assessing performance and allocating capital and resources to our business. Significant segment expenses are presented in the Company’s consolidated statements of operations. Additional disaggregated significant segment expenses, that are not separately presented on the Company’s consolidated statements of operations, are presented below.
The significant segment expenses, revenues and net income of the Company’s one reportable segment are as follows for the years ended December 31, 2024, 2023 and 2022 (in thousands):
 
2024
2023
2022
Total sales, net
    $ 2,958,387     $ 2,956,416     $ 2,971,956  
Less:
       
Labor costs within selling and administrative and research and development expenses
      (596,381 )
 
     (605,884 )
 
     (567,689 )
 
Material purchases
      (556,123 )     (551,005 )     (635,583 )
Labor costs within product and service cost of sales
      (350,978 )     (358,788 )     (365,674 )
Other segment expenses
      (628,552 )     (623,063 )     (529,615 )
Interest expense and other income, net
      (71,485 )     (81,433 )     (35,549 )
Provision for income taxes
      (117,034 )     (94,009 )     (130,091 )
 
 
 
 
 
 
Net income
    $ 637,834     $ 642,234     $ 707,755  
  
 
 
    
 
 
    
 
 
  
The other segment expenses include depreciation and amortization expenses, facilities and information technology costs, travel, freight, professional fees and all other costs.