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Business Segment Information
 3 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
Business Segment Information
11 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 chief operating decision maker (“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. Operations of the Wyatt business are part of the Waters operating segment. 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 months ended March 29, 2025 and March 30, 2024 (in thousands):
 
    
Three Months Ended
  
    
March 29, 2025
     
March 30, 2024
  
Product net sales:
      
Waters instrument systems
    $ 212,395      $ 191,259  
Chemistry consumables
      137,637        134,207  
TA instrument systems
      50,498        50,685  
  
 
 
     
 
 
  
Total product sales
      400,530        376,151  
Service net sales:
      
Waters service
      237,265        236,433  
TA service
      23,910        24,255  
  
 
 
     
 
 
  
Total service sales
      261,175        260,688  
  
 
 
     
 
 
  
Total net sales
    $ 661,705      $ 636,839  
  
 
 
     
 
 
  
Net sales are attributable to geographic areas based on the region of destination. Geographic sales information is presented below for the three months ended March 29, 2025 and March 30, 2024 (in thousands): 
 
    
Three Months Ended
  
    
March 29, 2025
     
March 30, 2024
  
Net Sales:
      
Asia:
      
China
    $ 90,873      $ 85,745  
Asia Other
      129,903        121,814  
  
 
 
     
 
 
  
Total Asia
      220,776        207,559  
Americas:
      
United States
      215,259        202,839  
Americas Other
      40,278        38,332  
  
 
 
     
 
 
  
Total Americas
      255,537        241,171  
Europe
      185,392        188,109  
  
 
 
     
 
 
  
Total net sales
    $ 661,705      $ 636,839  
  
 
 
     
 
 
  
 
 

Net sales by customer class are as follows for the three months ended March 29, 2025 and March 30, 2024 (in thousands):
 
    
Three Months Ended
  
    
March 29, 2025
     
March 30, 2024
  
Pharmaceutical
    $ 391,051      $ 374,207  
Industrial
      203,365        195,334  
Academic and government
      67,289        67,298  
  
 
 
     
 
 
  
Total net sales
    $ 661,705      $ 636,839  
  
 
 
     
 
 
  
Net sales for the Company recognized at a point in time versus over time are as follows for the three months ended March 29, 2025 and March 30, 2024 (in thousands):
 
    
Three Months Ended
  
    
March 29, 2025
     
March 30, 2024
  
Net sales recognized at a point in time:
      
Instrument systems
    $ 262,893      $ 241,944  
Chemistry consumables
      137,637        134,207  
Service sales recognized at a point in time (time & materials)
      80,968        83,325  
  
 
 
     
 
 
  
Total net sales recognized at a point in time
      481,498        459,476  
Net sales recognized over time:
      
Service and software maintenance sales recognized over time (contracts)
      180,207        177,363  
  
 
 
     
 
 
  
Total net sales
    $ 661,705      $ 636,839  
  
 
 
     
 
 
  
 
 

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 three months ended March 29, 2025 and March 30, 2024 (in thousands):
 
    
Three Months Ended
  
    
March 29, 2025
     
March 30, 2024
  
Total sales, net
    $ 661,705      $ 636,839  
Less:
      
Labor costs within selling and administrative and research and development expenses
      (152,381 )       (153,593 ) 
Material purchases
      (101,559 )       (108,561 ) 
Labor costs within product and service cost of sales
      (88,407 )       (86,372 ) 
Other segment expenses
      (167,613 )       (154,467 ) 
Interest expense and other income, net
      (8,857 )       (18,990 ) 
Provision for income taxes
      (21,507 )      (12,660 )
  
 
 
     
 
 
  
Net income
    $ 121,381      $ 102,196  
  
 
 
     
 
 
  
The other segment expenses include depreciation and amortization expenses, facilities and information technology costs, travel, freight, professional fees and all other costs.