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Business Segment Information
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
Business Segment Information
12 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. 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 June 28, 2025 and June 29, 2024 (in thousands):
 
    
Three Months Ended
     
Six Months Ended
  
    
June 28, 2025
     
June 29, 2024
     
June 28, 2025
     
June 29, 2024
  
Product net sales:
            
Waters instrument systems
    $ 252,795      $ 235,228      $ 465,190      $ 426,487  
Chemistry consumables
      164,985        141,085        302,622        275,292  
TA instrument systems
      55,620        58,831        106,118        109,516  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total product sales
      473,400        435,144        873,930        811,295  
Service net sales:
            
Waters service
      271,057        246,248        508,322        482,681  
TA service
      26,875        27,137        50,785        51,392  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total service sales
      297,932        273,385        559,107        534,073  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales
    $ 771,332      $ 708,529      $ 1,433,037      $ 1,345,368  
  
 
 
     
 
 
     
 
 
     
 
 
  
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 June 28, 2025 and June 29, 2024 (in thousands):
 
    
Three Months Ended
     
Six Months Ended
  
    
June 28, 2025
     
June 29, 2024
     
June 28, 2025
     
June 29, 2024
  
Net Sales:
            
Asia:
            
China
    $ 117,130      $ 100,105      $ 208,003      $ 185,850  
Asia Other
      148,810        137,326        278,713        259,140  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Asia
      265,940        237,431        486,716        444,990  
Americas:
            
United States
      230,131        231,931        445,390        434,770  
Americas Other
      50,609        42,537        90,887        80,869  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Americas
      280,740        274,468        536,277        515,639  
Europe
      224,652        196,630        410,044        384,739  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales
    $ 771,332      $ 708,529      $ 1,433,037      $ 1,345,368  
  
 
 
     
 
 
     
 
 
     
 
 
  
Net sales by customer class are as follows for the three and six months ended June 28, 2025 and June 29, 2024 (in thousands):
 
    
Three Months Ended
     
Six Months Ended
  
    
June 28, 2025
     
June 29, 2024
     
June 28, 2025
     
June 29, 2024
  
Pharmaceutical
    $ 461,968      $ 415,747      $ 853,019      $ 789,954  
Industrial
      237,655        221,385        441,020        416,719  
Academic and government
      71,709        71,397        138,998        138,695  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales
    $ 771,332      $ 708,529      $ 1,433,037      $ 1,345,368  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
Net sales for the Company recognized at a point in time versus over time are as follows for the three and six months ended June 28, 2025 and June 29, 2024 (in thousands):
 
    
Three Months Ended
     
Six Months Ended
  
    
June 28, 2025
     
June 29, 2024
     
June 28, 2025
     
June 29, 2024
  
Net sales recognized at a point in time:
            
Instrument systems
    $ 308,415      $ 294,059      $ 571,308      $ 536,003  
Chemistry consumables
      164,985        141,085        302,622        275,292  
Service sales recognized at a point in time (time & materials)
      100,420        92,075        181,388        175,400  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales recognized at a point in time
      573,820        527,219        1,055,318        986,695  
Net sales recognized over time:
            
Service and software maintenance sales recognized over time (contracts)
      197,512        181,310        377,719        358,673  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total net sales
    $ 771,332      $ 708,529      $ 1,433,037      $ 1,345,368  
  
 
 
     
 
 
     
 
 
     
 
 
  
The Company’s segment performance measure is net income attributable to Waters shareholders, which is used by the Company’s CODM when assessing performance and allocating capital and resources to its 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 and six months ended June 28, 2025 and June 29, 2024 (in thousands):
 
 
  
Three Months Ended
 
  
Six Months Ended
 
 
  
June 28, 2025
 
  
June 29, 2024
 
  
June 28, 2025
 
  
June 29, 2024
 
Total sales, net
    $ 771,332      $ 708,529      $ 1,433,037      $ 1,345,368  
Less:
            
Labor costs within selling and administrative and research and development expenses
      (164,254 )      (146,668 )      (316,635 )      (300,261 )
Material purchases
      (113,302 )      (125,839 )      (214,861 )      (234,400 )
Labor costs within product and service cost of sales
      (96,175 )      (85,351 )      (184,582 )      (171,722 )
Other segment expenses
      (209,388 )      (161,559 )      (377,001 )      (316,027 )
Interest expense and other income, net
      (10,523 )      (19,700 )      (19,380 )      (38,690 )
Provision for income taxes
      (30,579 )      (26,675 )      (52,086 )      (39,335 )
 
  
 
 
     
 
 
     
 
 
     
 
 
  
Net income
    $ 147,111      $ 142,737      $ 268,492      $ 244,933  
  
 
 
     
 
 
     
 
 
     
 
 
  
The other segment expenses include depreciation and amortization expenses, facilities and information technology costs, travel, freight, professional fees and all other costs.