v3.25.3
Business Segment Information
9 Months Ended
Sep. 27, 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 nine months ended September 27, 2025 and September 28, 2024 (in thousands):
 
    
Three Months Ended
    
Nine Months Ended
 
    
September 27,
2025
    
September 28,
2024
    
September 27,
2025
    
September 28,
2024
 
Product net sales:
           
Waters instrument systems
   $ 281,909      $ 265,273      $ 747,099      $ 691,760  
Chemistry consumables
     158,480        138,935        461,102        414,227  
TA instrument systems
     59,575        57,803        165,693        167,319  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total product sales
     499,964        462,011        1,373,894        1,273,306  
Service net sales:
           
Waters service
     272,986        251,444        781,308        734,125  
TA service
     26,937        26,850        77,722        78,242  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total service sales
     299,923        278,294        859,030        812,367  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total net sales
   $ 799,887      $ 740,305      $ 2,232,924      $ 2,085,673  
  
 
 
    
 
 
    
 
 
    
 
 
 
Net sales are attributable to geographic areas based on the region of destination. Geographic sales information is presented below for the three and nine months ended September 27, 2025 and September 28, 2024 (in thousands):
 
    
Three Months Ended
    
Nine Months Ended
 
    
September 27,
2025
    
September 28,
2024
    
September 27,
2025
    
September 28,
2024
 
Net Sales:
           
Asia:
           
China
   $ 113,513      $ 100,049      $ 321,516      $ 285,899  
Asia Other
     156,201        151,280        434,914        410,420  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total Asia
     269,714        251,329        756,430        696,319  
Americas:
           
United States
     245,255        236,182        690,645        670,952  
Americas Other
     47,557        42,954        138,444        123,823  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total Americas
     292,812        279,136        829,089        794,775  
Europe
     237,361        209,840        647,405        594,579  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total net sales
   $ 799,887      $ 740,305      $ 2,232,924      $ 2,085,673  
  
 
 
    
 
 
    
 
 
    
 
 
 
 
Net sales by customer class are as follows for the three and nine months ended September 27, 2025 and September 28, 2024 (in thousands):
 
    
Three Months Ended
    
Nine Months Ended
 
    
September 27,
2025
    
September 28,
2024
    
September 27,
2025
    
September 28,
2024
 
Pharmaceutical
   $ 479,776      $ 430,138      $ 1,332,795      $ 1,220,092  
Industrial
     235,669        227,740        676,689        644,459  
Academic and government
     84,442        82,427        223,440        221,122  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total net sales
   $ 799,887      $ 740,305      $ 2,232,924      $ 2,085,673  
  
 
 
    
 
 
    
 
 
    
 
 
 
 
Net sales for the Company recognized at a point in time versus over time are as follows for the three and nine months ended September 27, 2025 and September 28, 2024 (in thousands):
 
 
  
Three Months Ended
 
  
Nine Months Ended
 
 
  
September 27,
2025
 
  
September 28,
2024
 
  
September 27,
2025
 
  
September 28,
2024
 
Net sales recognized at a point in time:
  
  
  
  
Instrument systems
   $ 341,484      $ 323,076      $ 912,792      $ 859,079  
Chemistry consumables
     158,480        138,935        461,102        414,227  
Service sales recognized at a point in time (time & materials)
     94,927        91,045        276,315        266,445  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total net sales recognized at a point in time
     594,891        553,056        1,650,209        1,539,751  
Net sales recognized over time:
           
Service and software maintenance sales recognized over time (contracts)
     204,996        187,249        582,715        545,922  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total net sales
   $ 799,887       $ 740,305       $ 2,232,924       $  2,085,673   
  
 
 
    
 
 
    
 
 
    
 
 
 
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 nine months ended September 27, 2025 and September 28, 2024 (in thousands):
 
 
  
Three Months Ended
 
  
Nine Months Ended
 
 
  
September 27,
2025
 
  
September 28,
2024
 
  
September 27,
2025
 
  
September 28,
2024
 
Total sales, net
   $ 799,887      $ 740,305      $ 2,232,924      $ 2,085,673  
Less:
           
Labor costs within selling and administrative and research and development expenses
     (164,157      (144,079      (480,792      (444,340
Material purchases
     (135,157      (134,732      (350,018      (369,132
Labor costs within product and service cost of sales
     (100,275      (88,121      (284,857      (259,843
Other segment expenses
     (208,184      (162,241      (585,185      (478,268
Interest expense and other income, net
     (21,995      (17,515      (41,375      (56,205
Provision for income taxes
     (21,196      (32,114      (73,282      (71,449
  
 
 
    
 
 
    
 
 
    
 
 
 
Net income
   $ 148,923      $ 161,503      $ 417,415      $ 406,436  
  
 
 
    
 
 
    
 
 
    
 
 
 
The other segment expenses include depreciation and amortization expenses, facilities and information technology costs, travel, freight, professional fees and all other costs.