Company Quick10K Filing
Waters
Price222.53 EPS6
Shares70 P/E40
MCap15,473 P/FCF34
Net Debt851 EBIT513
TEV16,324 TEV/EBIT32
TTM 2019-09-28, in MM, except price, ratios
10-Q 2021-04-03 Filed 2021-05-06
10-K 2020-12-31 Filed 2021-02-24
10-Q 2020-09-26 Filed 2020-10-28
10-Q 2020-06-27 Filed 2020-07-29
10-Q 2020-03-28 Filed 2020-04-29
10-K 2019-12-31 Filed 2020-02-25
10-Q 2019-09-28 Filed 2019-10-30
10-Q 2019-06-29 Filed 2019-07-31
10-Q 2019-03-30 Filed 2019-05-03
10-K 2018-12-31 Filed 2019-02-26
10-Q 2018-09-29 Filed 2018-11-02
10-Q 2018-06-30 Filed 2018-08-03
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-02-27
10-Q 2017-09-30 Filed 2017-11-03
10-Q 2017-07-01 Filed 2017-08-04
10-Q 2017-04-01 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-02-24
10-Q 2016-10-01 Filed 2016-11-04
10-Q 2016-07-02 Filed 2016-08-05
10-Q 2016-04-02 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-26
10-Q 2015-10-03 Filed 2015-11-06
10-Q 2015-07-04 Filed 2015-08-07
10-Q 2015-04-04 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-02-27
10-Q 2014-09-27 Filed 2014-10-31
10-Q 2014-06-28 Filed 2014-08-01
10-Q 2014-03-29 Filed 2014-05-02
10-K 2013-12-31 Filed 2014-02-27
10-Q 2013-09-28 Filed 2013-11-01
10-Q 2013-06-29 Filed 2013-08-01
10-Q 2013-03-30 Filed 2013-05-03
10-K 2012-12-31 Filed 2013-02-26
10-Q 2012-09-29 Filed 2012-11-02
10-Q 2012-06-30 Filed 2012-08-03
10-Q 2012-03-31 Filed 2012-05-04
10-K 2011-12-31 Filed 2012-02-24
10-Q 2011-10-01 Filed 2011-11-04
10-Q 2011-07-02 Filed 2011-08-05
10-Q 2011-04-02 Filed 2011-05-06
10-Q 2010-10-02 Filed 2010-11-05
10-Q 2010-07-03 Filed 2010-08-06
10-Q 2010-04-03 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-02-26
8-K 2020-10-27
8-K 2020-10-08
8-K 2020-08-17
8-K 2020-07-28
8-K 2020-07-14
8-K 2020-06-17
8-K 2020-05-12
8-K 2020-04-28
8-K 2020-02-17
8-K 2020-02-04
8-K 2019-10-29
8-K 2019-09-12
8-K 2019-07-30
8-K 2019-05-14
8-K 2019-04-23
8-K 2019-01-23
8-K 2018-10-23
8-K 2018-09-01
8-K 2018-07-24
8-K 2018-05-09
8-K 2018-05-09
8-K 2018-04-24
8-K 2018-01-23

WAT 10Q Quarterly Report

Item 1:
Item 2:
Item 3:
Item 4:
Part Ii:
Item 1:
Item 1A:
Item 2:
Item 6:
EX-10.2 d172825dex102.htm
EX-10.3 d172825dex103.htm
EX-10.4 d172825dex104.htm
EX-10.5 d172825dex105.htm
EX-10.6 d172825dex106.htm
EX-31.1 d172825dex311.htm
EX-31.2 d172825dex312.htm
EX-32.1 d172825dex321.htm
EX-32.2 d172825dex322.htm

Waters Earnings 2021-04-03

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
0.80.60.50.30.20.02012201420172020
Rev, G Profit, Net Income
0.90.50.1-0.3-0.7-1.12012201420172020
Ops, Inv, Fin

10-Q
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
Form 10-Q
 
 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 3, 2021
or
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
                    
to
                    
.
Commission File Number:
01-14010
 
 
Waters Corporation
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
13-3668640
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
34 Maple Street
Milford, Massachusetts 01757
(Address, including zip code, of principal executive offices)
(508478-2000
(Registrant’s telephone number, including area code)
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock, par value $0.01 per share
 
WAT
 
New York Stock Exchange, Inc.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 
 
   Yes  ☒   
 
 No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 
405 of
Regulation S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such
files).     Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in
Rule 12b-2
of the Exchange Act.
 
Large accelerated filer      Accelerated filer  
       
Non-accelerated filer      Smaller reporting company  
       
         Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2
of the Act).    Yes  ☐  
 
  No  
Indicate the number of shares outstanding of the registrant’s common stock as of April 30, 2021: 61,700,498
 
 
 

WATERS CORPORATION AND SUBSIDIARIES
QUARTERLY REPORT ON FORM
10-Q
INDEX
 
 
 
 
  
Page
 
PART I
 
FINANCIAL INFORMATION
  
     
Item 1.
 
Financial Statements
  
     
 
 
  
 
3
 
 
 
  
 
4
 
 
 
  
 
5
 
 
 
  
 
6
 
 
 
  
 
7
 
 
 
  
 
8
 
Item 2.
 
  
 
27
 
Item 3.
 
  
 
37
 
Item 4.
 
  
 
37
 
     
PART II
 
OTHER INFORMATION
  
     
Item 1.
 
  
 
38
 
Item 1A.
 
  
 
38
 
Item 2.
 
  
 
38
 
Item 6.
 
  
 
39
 
 
 
  
 
40

Item 1:
Financial Statements
WATERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
 
    
April 3, 2021
   
December 31, 2020
 
    
(In thousands, except per share data)
 
ASSETS
                
Current assets:
                
Cash and cash equivalents
   $ 683,783     $ 436,695  
Investments
     125,986       6,451  
Accounts receivable, net
     550,677       573,316  
Inventories
     327,967       304,281  
Other current assets
     79,510       80,290  
    
 
 
   
 
 
 
Total current assets
     1,767,923       1,401,033  
Property, plant and equipment, net
     513,719       494,003  
Intangible assets, net
     240,853       258,645  
Goodwill
     438,139       444,362  
Operating lease assets
     88,283       93,252  
Other assets
     162,646       148,625  
    
 
 
   
 
 
 
Total assets
   $ 3,211,563     $ 2,839,920  
    
 
 
   
 
 
 
     
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Notes payable and debt
   $ 100,000     $ 150,000  
Accounts payable
     81,511       72,212  
Accrued employee compensation
     35,104       72,166  
Deferred revenue and customer advances
     280,848       198,240  
Current operating lease liabilities
     26,908       27,764  
Accrued income taxes
     82,642       76,558  
Accrued warranty
     10,705       10,950  
Other current liabilities
     167,331       197,093  
    
 
 
   
 
 
 
Total current liabilities
     785,049       804,983  
Long-term liabilities:
                
Long-term debt
     1,603,090       1,206,515  
Long-term portion of retirement benefits
     72,756       72,620  
Long-term income tax liabilities
     357,824       357,493  
Long-term operating lease liabilities
     61,503       68,197  
Other long-term liabilities
     100,379       97,968  
    
 
 
   
 
 
 
Total long-term liabilities
     2,195,552       1,802,793  
    
 
 
   
 
 
 
Total liabilities
     2,980,601       2,607,776  
     
Commitments and contingencies (Notes
6
,
7
 and 1
1
)
            
     
Stockholders’ equity:
                
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none issued at April 3, 2021 and December 31, 2020
           —    
Common stock, par value $0.01 per share, 400,000 shares authorized, 161,859 and 161,666 shares issued, 61,847 and 62,309 shares outstanding at April 3, 2021 and December 31, 2020, respectively
     1,619       1,617  
Additional
paid-in
capital
     2,054,076       2,029,465  
Retained earnings
     7,256,116       7,107,989  
Treasury stock, at cost, 100,012 and 99,357 shares at April 3, 2021 and December 31, 2020, respectively
     (8,969,643     (8,788,984
Accumulated other comprehensive loss
     (111,206     (117,943
    
 
 
   
 
 
 
Total stockholders’ equity
     230,962       232,144  
    
 
 
   
 
 
 
Total liabilities and stockholders’ equity
   $ 3,211,563     $ 2,839,920  
    
 
 
   
 
 
 
The accompanying notes are an integral part of the interim consolidated financial statements.
 
3

Table of Contents
WATERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
 
    
Three Months Ended
 
    
April 3, 2021
   
March 28, 2020
 
    
(In thousands, except per share data)
 
Revenues:
                
Product sales
   $ 382,022     $ 274,183  
     
Service sales
    
226,523
      190,756  
    
 
 
   
 
 
 
     
Total net sales
     608,545       464,939  
     
Costs and operating expenses:
                
Cost of product sales
     158,876       119,839  
     
Cost of service sales
    
95,271
      90,805  
     
Selling and administrative expenses
     143,196       147,735  
     
Research and development expenses
     38,092       34,989  
     
Purchased intangibles amortization
     1,840       2,625  
     
Litigation provision
    
 
      666  
    
 
 
   
 
 
 
     
Total costs and operating expenses
     437,275       396,659  
    
 
 
   
 
 
 
     
Operating income
     171,270       68,280  
     
Other income (expense
), net
     9,359       (374
     
Interest expense
     (10,946     (14,079
     
Interest income
     4,101       4,036  
    
 
 
   
 
 
 
     
Income before income taxes
     173,784       57,863  
     
Provision for income taxes
     25,657       4,301  
    
 
 
   
 
 
 
     
Net income
   $ 148,127     $ 53,562  
    
 
 
   
 
 
 
     
Net income per basic common share
   $ 2.38     $ 0.86  
     
Weighted-average number of basic common shares
     62,260       62,232  
     
Net income per diluted common share
   $ 2.37     $ 0.86  
     
Weighted-average number of diluted common shares and equivalents
     62,632       62,626  
The accompanying notes are an integral part of the interim consolidated financial statements.
 
4

Table of Contents
WATERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
 
    
Three Months Ended
 
    
April 3, 2021
   
March 28, 2020
 
    
(In thousands)
 
Net income
   $ 148,127     $ 53,562  
     
Other comprehensive income (loss):
                
     
Foreign currency translation
     5,825       (19,344
     
Unrealized losses on investments before income taxes
     (10         
    
 
 
   
 
 
 
Unrealized losses on investments, net of tax
     (10         
     
Retirement liability adjustment before reclassifications
     1,054       296  
Amounts reclassified to other income
     216       340  
    
 
 
   
 
 
 
Retirement liability adjustment before income taxes
     1,270       636  
Income tax expense
     (348
)
 
    (238
    
 
 
   
 
 
 
Retirement liability adjustment, net of tax
     922       398  
     
Other comprehensive income (loss)
     6,737       (18,946
     
Comprehensive income
   $ 154,864     $ 34,616  
    
 
 
   
 
 
 
The accompanying notes are an integral part of the interim consolidated financial statements.
 
5

Table of Contents
WATERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
    
Three Months Ended
 
    
April 3, 2021
   
March 28, 2020
 
    
(In thousands)
 
Cash flows from operating activities:
                
Net income
   $ 148,127     $ 53,562  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Stock-based compensation
     8,305       9,196  
Deferred income taxes
     2,787       (2,525
Depreciation
     16,343       15,708  
Amortization of intangibles
     15,013       13,480  
Change in operating assets and liabilities:
                
Decrease in accounts receivable
     7,945       54,026  
Increase in inventories
     (30,544     (29,399
Increase in other current assets
     (3,080     (5,036
(Increase) decrease in other assets
     (4,219     2,745  
Decrease in accounts payable and other current liabilities
     (29,758     (15,825
Increase in deferred revenue and customer advances
     89,048       46,465  
(Decrease) increase in other liabilities
     (1,563     9,238  
    
 
 
   
 
 
 
Net cash provided by operating activities
     218,404       151,635  
Cash flows from investing activities:
                
Additions to property, plant, equipment and software capitalization
     (39,503     (51,130
Business acquisitions, net of cash acquired
           (76,664
Purchases of investments
     (122,640     (3,520
Maturities and sales of investments
     3,139       1,139  
    
 
 
   
 
 
 
Net cash used in investing activities
     (159,004     (130,175
Cash flows from financing activities:
                
Proceeds from debt issuances
     500,000       315,000  
Payments on debt
     (150,000     (100,366
Payments of debt issuance costs
     (3,637         
Proceeds from stock plans
     16,295       11,743  
Purchases of treasury shares
     (173,305     (196,226
(Payments for) proceeds from derivative contracts
     (578     2,767  
    
 
 
   
 
 
 
Net cash provided by financing activities
     188,775       32,918  
Effect of exchange rate changes on cash and cash equivalents
     (1,087     (32
    
 
 
   
 
 
 
Increase in cash and cash equivalents
     247,088       54,346  
Cash and cash equivalents at beginning of period
     436,695       335,715  
    
 
 
   
 
 
 
Cash and cash equivalents at end of period
   $ 683,783     $ 390,061  
    
 
 
   
 
 
 
The accompanying notes are an integral part of the interim consolidated financial statements.
 
6

Table of Contents
WATERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(unaudited, in thousands)
 
    
Number
of
Common
Shares
    
Common
Stock
    
Additional
Paid-In

Capital
    
Retained
Earnings
   
Treasury
Stock
   
Accumulated
Other
Comprehensive
Loss
   
Total
Stockholders’

Deficit
 
Balance December 31, 2019
     161,030      $ 1,610      $ 1,926,753      $ 6,587,403     $ (8,612,576   $ (119,471   $ (216,281
Net income
     —          —          —          53,562       —         —         53,562  
Adoption of new accounting pronouncement
     —          —          —          (985     —         —         (985
Other comprehensive loss
     —          —          —          —         —         (18,946     (18,946
Issuance of common stock for employees:
                                                           
Employee Stock Purchase Plan
     9        —          1,736        —         —         —         1,736  
Stock options exercised
     81        1        10,124        —         —         —         10,125  
Treasury stock
     —          —          —          —         (176,225     —         (176,225
Stock-based compensation
     133        2        9,013        —         —         —         9,015  
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
 
Balance March 28, 2020
     161,253      $ 1,613      $ 1,947,626      $ 6,639,980     $ (8,788,801   $ (138,417   $ (337,999
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
 
               
    
Number
of
Common
Shares
    
Common
Stock
    
Additional
Paid-In

Capital
    
Retained
Earnings
   
Treasury
Stock
   
Accumulated
Other
Comprehensive
Loss
   
Total
Stockholders’
Equity
 
Balance December 31, 2020
     161,666      $ 1,617      $ 2,029,465      $ 7,107,989     $ (8,788,984   $ (117,943   $ 232,144  
Net income
    
 
                     148,127                   148,127  
Other comprehensive income
    
 
                                 6,737       6,737  
Issuance of common stock for employees:
                                                           
Employee Stock Purchase Plan
     11                 1,855                          1,855  
Stock options exercised
     95        1        15,129                          15,130  
Treasury stock
                                (180,659           (180,659
Stock-based compensation
     87        1        7,627                          7,628  
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
 
Balance April 3, 2021
     161,859      $ 1,619      $ 2,054,076      $ 7,256,116     $ (8,969,643   $ (111,206   $ 230,962  
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
 
The accompanying notes are an integral part of the consolidated financial statements.
 
7

Table of Contents
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1 Basis of Presentation and Summary of Significant Accounting Policies
Waters Corporation (the “Company,” “we,” “our,” or “us”) is a specialty measurement company that operates with a fundamental underlying purpose to advance the science that enables our customers to enhance human health and well-being. The Company has pioneered analytical workflow solutions involving liquid chromatography, mass spectrometry and thermal analysis innovations serving the life, materials and food sciences for more than 60 years. The Company primarily designs, manufactures, sells and services high performance liquid chromatography (“HPLC”), ultra performance liquid chromatography (“UPLC
TM
” and, together with HPLC, referred to as “LC”) and mass spectrometry (“MS”) technology systems and support products, including chromatography columns, other consumable products and comprehensive post-warranty service plans. These systems are complementary products that are frequently employed together
(“LC-MS”)
and sold as integrated instrument systems using common software platforms. LC is a standard technique and is utilized in a broad range of industries to detect, identify, monitor and measure the chemical, physical and biological composition of materials, and to purify a full range of compounds. MS technology, principally in conjunction with chromatography, is employed in drug discovery and development, including clinical trial testing, the analysis of proteins in disease processes (known as “proteomics”), nutritional safety analysis and environmental testing.
LC-MS
instruments combine a liquid phase sample introduction and separation system with mass spectrometric compound identification and quantification. In addition, the Company designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA
TM
product line. These instruments are used in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals and viscous liquids for various industrial, consumer goods and healthcare products, as well as for life science research. The Company is also a developer and supplier of advanced software-based products that interface with the Company’s instruments, as well as other manufacturers’ instruments.
The Company’s interim fiscal quarter typically ends on the thirteenth Saturday of each quarter. Since the Company’s fiscal year end is December 31, the first and fourth fiscal quarters may have more or less than thirteen complete weeks. The Company’s first fiscal quarters for 2021 and 2020 ended on April 3, 2021 and March 28, 2020, respectively.
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on
Form
 
10-Q
and do not include all of the information and footnote disclosures required for annual financial statements prepared in accordance with generally accepted accounting principles (“U.S. GAAP”) in the United States of America. The consolidated financial statements include the accounts of the Company and its subsidiaries, which are wholly owned. All inter-company balances and transactions have been eliminated.
The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities at the dates of the financial statements. Actual amounts may differ from these estimates under different assumptions or conditions.
It is management’s opinion that the accompanying interim consolidated financial statements reflect all adjustments (which are normal and recurring) that are necessary for a fair statement of the results for the interim periods. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on
Form 10-K
for the year ended December 31, 2020, as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 24, 2021.
Risks and Uncertainties
The Company is subject to risks common to companies in the analytical instrument industry, including, but not limited to, global economic and financial market conditions, fluctuations in foreign currency exchange rates, fluctuations in customer demand, development by its competitors of new technological innovations, costs of developing new technologies, levels of debt and debt service requirements, risk of disruption, dependence on key personnel, protection and litigation of proprietary technology, shifts in taxable income between tax jurisdictions and compliance with regulations of the U.S. Food and Drug Administration and similar foreign regulatory authorities and agencies.
Both the Company’s domestic and international operations have been and continue to be affected by the ongoing global
COVID-19
pandemic and the resulting volatility and uncertainty it has caused in the U.S. and international markets. Since being declared a pandemic in March 2020 by the World Health Organization,
COVID-19
has continued to spread throughout the U.S. and globally. The
COVID-19
pandemic has caused significant volatility and uncertainty in U.S. and international markets, which has disrupted and is expected to continue to disrupt the Company’s business and could result in a prolonged economic downturn. The Company operates in over 35 countries, including those in regions most impacted by the
COVID-19
pandemic.
 
8

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
 
Through the date of the issuance of these financial statements, the Company’s consolidated financial position, results of operations and cash flows have not been materially impacted and, thus, the Company concluded that no goodwill or long-lived asset impairment analyses were required. Further, there have been no violations of debt covenants. Any prolonged material disruption of the Company’s employees, suppliers, manufacturing, or customers could materially impact its consolidated financial position, results of operations or cash flows.
Translation of Foreign Currencies
The functional currency of each of the Company’s foreign operating subsidiaries is the local currency of its country of domicile, except for the Company’s subsidiaries in Hong Kong, Singapore and the Cayman Islands, where the underlying transactional cash flows are denominated in currencies other than the respective local currency of domicile. The functional currency of the Hong Kong, Singapore and Cayman Islands subsidiaries is the U.S. dollar, based on the respective entity’s cash flows.
For the Company’s foreign operations, assets and liabilities are translated into U.S. dollars at exchange rates prevailing on the balance sheet date, while revenues and expenses are translated at average exchange rates prevailing during the respective period. Any resulting translation gains or losses are included in accumulated other comprehensive income in the consolidated balance sheets.
Cash, Cash Equivalents and Investments
Cash equivalents represent highly liquid investments, with original maturities of 90 days or less, while investments with longer maturities are classified as investments. The Company maintains cash balances in various operating accounts in excess of federally insured limits, and in foreign subsidiary accounts in currencies other than the U.S. dollar. As of April 3, 2021 and December 31, 2020, $317 million out of $810 million and $364 million out of $443 million, respectively, of the Company’s total cash, cash equivalents and investments were held by foreign subsidiaries. In addition, $256 million out of $810 million and $254 million out of $443 million of cash, cash equivalents and investments were held in currencies other than the U.S. dollar at April 3, 2021 and December 31, 2020, respectively.
Accounts Receivable and Allowance for Credit Losses
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company has very limited use of rebates and other cash considerations payable to customers and, as a result, the transaction price determination does not have any material variable consideration. The Company does not consider there to be significant concentrations of credit risk with respect to trade receivables due to the short-term nature of the balances, the Company having a large and diverse customer base, and the Company having a strong historical experience of collecting receivables with minimal defaults. As a result, credit risk is considered low across territories and trade receivables are considered to be a single class of financial asset. The allowance for credit losses is based on a number of factors and is calculated by applying a historical loss rate to trade receivable aging balances to estimate a general reserve balance along with an additional adjustment for any specific receivables with known or anticipated issues affecting the likelihood of recovery. Past due balances with a probability of default based on historical data as well as relevant available forward-looking information are included in the specific adjustment. The historical loss rate is reviewed on at least an annual basis and the allowance for credit losses is reviewed quarterly for any required adjustments. The Company does not have any off-balance sheet credit exposure related to its customers.
Trade receivables related to instrument sales are collateralized by the instrument that is sold. If there is a risk of default related to a receivable that is collateralized, then the fair value of the collateral is calculated and adjusted for the cost to
re-possess,
refurbish and
re-sell
the instrument. This adjusted fair value is compared to the receivable balance and the difference would be recorded as the expected credit loss.
 
9

Table of Contents
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
The following is a summary of the activity of the Company’s allowance for credit losses for the three months ended April 3, 2021 and March 28, 2020 (in thousands):
 
    
Balance at
Beginning

of Period
    
Impact of
CECL

Adoption
    
Additions
    
Deductions
   
Balance at
End of

Period
 
 
 
Allowance for
Credit Losses
                                           
April 3, 2021
   $ 14,381      $      $ 775      $ (1,561   $ 13,595  
March 28, 2020
   $ 9,560      $ 985      $ 3,506      $ (1,749   $ 12,302  
Other Investments
During the three months ended April 3, 2021, the Company recorded an unrealized gain on an equity security still held at the reporting date of approximately $10 million within other income (expense) on the income statement. This unrealized gain was recorded as an upward price adjustment to the carrying value of the investment due to an observable price change of a similar security issued during the current period.
Fair Value Measurements
In accordance with the accounting standards for fair value measurements and disclosures, certain of the Company’s assets and liabilities are measured at fair value on a recurring basis as of April 3, 2021 and December 31, 2020. Fair values determined by Level 1 inputs utilize observable data, such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points for which there is little or no market data, which require the reporting entity to develop its own assumptions.
 
10

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at April 3, 2021 (in thousands):
 
    
Total at

April 3,

2021
    
Quoted Prices

in Active

Markets

for Identical

Assets

(Level 1)
    
Significant

Other

Observable

Inputs

(Level 2)
    
Significant

Unobservable

Inputs

(Level 3)
 
 
 
 
 
 
Assets:
                                   
U.S. Treasury securities
  
$
12,061     
$
    
$
12,061     
$
 
Corporate debt securities
     119,800               119,800         
Time deposits
     58,712               58,712         
Waters 401(k) Restoration Plan assets
     39,605        39,605                
Foreign currency exchange contracts
     208               208         
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 230,386      $ 39,605      $ 190,781      $  
    
 
 
    
 
 
    
 
 
    
 
 
 
         
Liabilities:
                                   
Contingent consideration
   $ 1,225      $      $      $ 1,225  
Foreign currency exchange contracts
     241               241         
Interest rate cross-currency swap agreements
     20,030               20,030         
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 21,496      $      $ 20,271      $ 1,225  
    
 
 
    
 
 
    
 
 
    
 
 
 
The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2020 (in thousands):
 
    
Total at

December 31,

2020
    
Quoted
 
Prices

in Active

Markets

for Identical

Assets

(Level 1)
    
Significant

Other

Observable

Inputs

(Level 2)
    
Significant

Unobservable

Inputs

(Level 3)
 
 
 
 
 
 
Assets:
                                   
Time deposits
   $ 6,451      $ —        $ 6,451      $ —    
Waters 401(k) Restoration Plan assets
     38,988        38,988        —          —    
Foreign currency exchange contracts
     836        —          836        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 46,275      $ 38,988      $ 7,287      $ —    
    
 
 
    
 
 
    
 
 
    
 
 
 
         
Liabilities:
                                   
Contingent consideration
   $ 1,185      $ —        $ —        $ 1,185  
Foreign currency exchange contracts
     185        —          185        —    
Interest rate cross-currency swap agreements
     44,996        —          44,996        —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 46,366      $ —        $ 45,181      $ 1,185  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
11

Table of Contents
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
Fair Value of 401(k) Restoration Plan Assets
The 401(k) Restoration Plan is a nonqualified defined contribution plan and the assets were held in registered mutual funds and have been classified as Level 1. The fair values of the assets in the plan are determined through market and observable sources from daily quoted prices on nationally recognized securities exchanges.
Fair Value of Cash Equivalents, Investments, Foreign Currency Exchange Contracts and Interest Rate Cross-Currency Swap Agreements
The fair values of the Company’s cash equivalents, investments and foreign currency exchange contracts are determined through market and observable sources and have been classified as Level 2. These assets and liabilities have been initially valued at the transaction price and subsequently valued, typically utilizing third-party pricing services. The pricing services use many inputs to determine value, including reportable trades, benchmark yields, credit spreads, broker/dealer quotes, current spot rates and other industry and economic events. The Company validates the prices provided by third-party pricing services by reviewing their pricing methods and obtaining market values from other pricing sources.
Fair Value of Contingent Consideration
The fair value of the Company’s liability for contingent consideration relates to earnout payments in connection with the December 2020 acquisition of Integrated Software Solutions (“ISS”) and is determined using a probability-weighted discounted cash flow model, which uses significant unobservable inputs, and has been classified as Level 3. Subsequent changes in the fair value of the contingent consideration liability are recorded in the results of operations. The fair value of the contingent consideration liability associated with future earnout payments is based on several factors, including the estimated future results and a discount rate that reflects both the likelihood of achieving the estimated future results and the Company’s creditworthiness. A change in any of these unobservable inputs can significantly change the fair value of the contingent consideration.
The fair value of future contingent consideration payments related to the December 2020 acquisition of ISS was estimated to be
 
$
1
 
million at both
April 3, 2021 and December 31, 2020. The fair value is based on the achievement of certain revenue and customer account milestones over the two
years after the acquisition date.
Fair Value of Other Financial Instruments
The Company’s accounts receivable, accounts payable and variable interest rate debt are recorded at cost, which approximates fair value due to their short-term nature. The carrying value of the Company’s fixed interest rate debt was $1.4 billion and $910 million at April 3, 2021 and December 31, 2020, respectively. The fair value of the Company’s fixed interest rate debt was estimated using discounted cash flow models, based on estimated current rates offered for similar debt under current market conditions for the Company. The fair value of the Company’s fixed interest rate debt was estimated to be $1.3 billion and $1.0 billion at April 3, 2021 and December 31, 2020, respectively, using Level 2 inputs.
Derivative Transactions
The Company is a global company that operates in over 35 countries and, as a result, the Company’s net sales, cost of sales, operating expenses and balance sheet amounts are significantly impacted by fluctuations in foreign currency exchange rates. The Company is exposed to currency price risk on foreign currency exchange rate fluctuations when it translates its
non-U.S.
dollar foreign subsidiaries’ financial statements into U.S. dollars and when any of the Company’s subsidiaries purchase or sell products or services in a currency other than its own currency.
The Company’s principal strategies in managing exposures to changes in foreign currency exchange rates are to (1) naturally hedge the foreign-currency-denominated liabilities on the Company’s balance sheet against corresponding assets of the same currency, such that any changes in liabilities due to fluctuations in foreign currency exchange rates are typically offset by corresponding changes in assets and (2) mitigate foreign exchange risk exposure of international operations by hedging the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. The Company presents the derivative transactions in financing activities in the statement of cash flows.
 
12

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
Foreign Currency Exchange Contracts
The Company does not specifically enter into any derivatives that hedge foreign-currency-denominated operating assets, liabilities or commitments on its balance sheet, other than a portion of certain third-party accounts receivable and accounts payable, and the Company’s net worldwide intercompany receivables and payables, which are eliminated in consolidation. The Company periodically aggregates its net worldwide balances by currency and then enters into foreign currency exchange contracts that mature within 90 days to hedge a portion of the remaining balance to minimize some of the Company’s currency price risk exposure. The foreign currency exchange contracts are not designated for hedge accounting treatment. Principal hedged currencies include the Euro, Japanese yen, British pound, Mexican peso and Brazilian real.
Interest Rate Cross-Currency Swap Agreements
As of April 3, 2021, the Company had entered into three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $520 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset investments. Under hedge accounting, the change in fair value of the derivative that relates to changes in the foreign currency spot rate are recorded in the currency translation adjustment in other comprehensive income and remain in accumulated comprehensive income in stockholders’ equity (deficit) until the sale or substantial liquidation of the foreign operation. The difference between the interest rate received and paid under the interest rate cross-currency swap derivative agreement is recorded in interest income in the statement of operations.
The Company’s foreign currency exchange contracts and interest rate cross-currency swap agreements included in the consolidated balance sheets are classified as follows (in thousands):
 
    
April 3, 2021
    
December 31, 2020
 
    
Notional Value
    
Fair Value
    
Notional Value
    
Fair Value
 
Foreign currency exchange contracts:
                                   
Other current assets
   $ 36,131      $ 208      $ 66,690      $ 836  
Other current liabilities
   $ 25,423      $ 241      $ 20,000      $ 185  
         
Interest rate cross-currency swap agreements:
                                   
Other
liabilities
   $ 520,000      $ (20,030    $ 560,000      $ (44,996
Accumulated other
comprehensive loss
            $ 23,751               $ 44,996  
The following is a summary of the activity included in the statements of comprehensive income related to the foreign currency exchange contracts (in thousands):
 
 
  
Financial
  
Three Months Ended
 
 
  
Statement
Classification
  
April 3, 2021
 
  
March 28, 2020
 
Foreign currency exchange contracts:
 
Realized gains (losses) on closed contracts
   Cost of sales    $ 1,667      $ (2,981
Unrealized (losses) gains on open contracts
   Cost of sales      (753      1,325  
         
 
 
    
 
 
 
Cumulative net
pre-tax
gains (losses)
   Cost of sales    $ 914      $ (1,656
         
 
 
    
 
 
 
       
Interest rate cross-currency swap agreements:
                      
Interest earned
   Interest income    $ 3,827      $ 3,714  
Unrealized gains on
contracts, net
   Stockholders’ 
equity (deficit)  
   $ 21,244      $ 5,522  
 
13

Table of Contents
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
Stockholders’ Equity
In January 2019, the Company’s Board of Directors authorized the Company to repurchase up to $4 billion of its outstanding common stock over a
two-year
period. This program replaced the remaining amounts available from the
pre-existing
program. During the three months ended April 3, 2021 and March 28, 2020, the Company repurchased 0.6 million and 0.8 million shares of the Company’s outstanding common stock at a cost of $173 million and $167 
million, respectively, under the January 2019 authorization and other previously announced programs. In addition, the
 
Company
repurchased 
$8 million and $9 
million of common stock related to the vesting of restricted stock units during the three months ended April 3, 2021 and March 28, 2020, respectively. As of April 3, 2021, the Company had repurchased an aggregate of 11.8 million shares at a cost of $2.6 billion under the January 2019 repurchase program and had a total of $1.4 billion authorized for future repurchases. In December 2020, the Company’s Board of Directors authorized the extension of the share repurchase program through January 21, 2023.
The Company had $7 million of treasury stock purchases that were accrued and unsettled at April 3, 2021. These transactions were settled in April 2021, during the Company’s second quarter. 
The Company had $20
 
million of treasury stock purchases that were accrued and unsettled at December 31, 2019. These transactions were settled in January 2020. The Company did not have any unsettled treasury stock purchases as of December 31, 2020 or March 28, 2020.
Product Warranty Costs
The Company accrues estimated product warranty costs at the time of sale, which are included in cost of sales in the consolidated statements of operations. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. The amount of the accrued warranty liability is based on historical information, such as past experience, product failure rates, number of units repaired and estimated costs of material and labor. The liability is reviewed for reasonableness at least quarterly.
The following is a summary of the activity of the Company’s accrued warranty liability for the three months ended April 3, 2021 and March 28, 2020 (in thousands):
 
    
Balance at

Beginning

of Period
    
Accruals for

Warranties
    
Settlements

Made
    
Balance at

End of

Period
 
 
 
Accrued warranty liability:
                                   
April 3, 2021
   $ 10,950      $ 2,337      $ (2,582    $ 10,705  
March 28, 2020
   $ 11,964      $ 1,671      $ (2,619    $ 11,016  
Restructuring
In January 2020, the Company made organizational changes to better align its resources with its growth and innovation strategies, resulting in a worldwide workforce reduction, impacting 3% of the Company’s employees.
During the three months ended March 28, 2020, the Company
incurred 
$18 
million of severance-related costs, lease termination costs and other related costs. The Company did not incur any restructuring charges during the three months ended April 3, 2021.
2 Revenue Recognition
The Company’s deferred revenue liabilities on the consolidated balance sheets consist of the obligation on instrument service contracts and customer payments received in advance, prior to transfer of control of the instrument. The Company records deferred revenue primarily related to its service contracts, where consideration is billable at the beginning of the service period.
 
14

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
The following is a summary of the activity of the Company’s deferred revenue and customer advances for the three months ended April 3, 2021 and March 28, 2020 (in thousands):
 
    
April 3, 2021
    
March 28, 2020
 
Balance at the beginning of the period
   $ 239,759      $ 213,695  
Recognition of revenue included in balance at beginning of the period
     (94,078      (82,604
Revenue deferred during the period, net of revenue recognized
     182,384        138,430  
    
 
 
    
 
 
 
Balance at the end of the period
   $ 328,065      $ 269,521  
    
 
 
    
 
 
 
The Company classified $47 million and $42 million of deferred revenue and customer advances in other long-term liabilities at April 3, 2021 and December 31, 2020, respectively.
The amount of deferred revenue and customer advances equals the transaction price allocated to unfulfilled performance obligations for the period presented. Such amounts are expected to be recognized in the future as follows (in thousands):
 
    
April 3, 2021
 
Deferred revenue and customer advances expected to be recognized in:
        
One year or less
   $ 280,848  
13-24
months
     25,860  
25 months and beyond
     21,357  
    
 
 
 
Total
   $ 328,065  
    
 
 
 
3 Marketable Securities
The Company’s marketable securities within cash equivalents and investments included in the consolidated balance sheets are detailed as follows (in thousands):
 
    
April 3, 2021
 
  
Amortized

Cost
    
Unrealized

Gain
    
Unrealized

Loss
    
Fair

Value
 
 
U.S. Treasury securities
   $ 12,061      $      $      $ 12,061  
Corporate debt securities
     119,810        7        (17      119,800  
Time deposits
     58,712                      58,712  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 190,583      $ 7      $ (17    $ 190,573  
    
 
 
    
 
 
    
 
 
    
 
 
 
         
Amounts included in:
                                   
Cash equivalents
   $ 64,590      $ 1      $ (4    $ 64,587  
Investments
     125,993        6        (13      125,986  
 
  
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 190,583      $ 7      $ (17    $ 190,573  
    
 
 
    
 
 
    
 
 
    
 
 
 
   
    
December 31, 2020
 
    
Amortized
Cost
      
Unrealized
Gain 
    
Unrealized
Loss
    
Fair
Value
 
Time deposits
     6,451        —          —          6,451  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 6,451      $ —        $ —        $ 6,451  
    
 
 
    
 
 
    
 
 
    
 
 
 
         
Amounts included in:
                                   
Investments
     6,451        —          —          6,451  
    
 
 
    
 
 
    
 
 
    
 
 
 
Total
   $ 6,451      $ —        $ —        $ 6,451  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
15

Table of Contents
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
The estimated fair value of marketable debt securities by maturity date is as follows (in thousands):
 
    
April 3, 2021
    
December 31, 2020
 
Due in one year or less
   $ 164,762      $ 6,451  
Due after one year through three years
     25,811        —    
    
 
 
    
 
 
 
Total
   $ 190,573      $ 6,451  
    
 
 
    
 
 
 
4 Inventories
Inventories are classified as follows (in thousands):
 
    
April 3, 2021
    
December 31, 2020
 
Raw materials
   $ 141,600      $ 133,490  
Work in progress
     21,689        18,678  
Finished goods
     164,678        152,113  
    
 
 
    
 
 
 
Total inventories
   $ 327,967      $ 304,281  
    
 
 
    
 
 
 
5 Goodwill and Other Intangibles
The carrying amount of goodwill was $438 million and $444 million at April 3, 2021 and December 31, 2020, respectively. The effect of foreign currency translation decreased goodwill by $6 million.
The Company’s intangible assets included in the consolidated balance sheets are detailed as follows (dollars in thousands):
 
    
April 3, 2021
    
December 31, 2020
 
  
Gross

Carrying

Amount
    
Accumulated

Amortization
    
Weighted-

Average

Amortization

Period
    
Gross

Carrying

Amount
    
Accumulated

Amortization
    
Weighted-

Average

Amortization

Period
 
 
 
 
Capitalized software
   $ 563,157      $ 403,614        5 years      $ 584,452      $ 409,847        5 years  
Purchased intangibles
     202,828        160,028        11 years        205,585        160,342        11 years  
Trademarks
     9,680                      9,680        —          —    
Licenses
     5,960        5,773        6 years        5,923        5,697        6 years  
Patents and other intangibles
     92,321        63,678        8 years        90,699        61,808        8 years  
    
 
 
    
 
 
             
 
 
    
 
 
          
Total
   $ 873,946      $ 633,093        7 years      $ 896,339      $ 637,694        7 years  
    
 
 
    
 
 
             
 
 
    
 
 
          
The gross carrying value of intangible assets and accumulated amortization for intangible assets decreased by $27 million and $19 million, respectively, in the three months ended April 3, 2021 due to the effects of foreign currency translation. Amortization expense for intangible assets was $15 million and $13 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Amortization expense for intangible assets is estimated to be $62 million per year for each of the next five years.
 
16

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
6 Debt
In March 2021, the Company issued the following senior unsecured notes:
 
Senior
Unsecured Notes
  
Term
  
Interest Rate
 
Face Value
(in millions)
 
  
Maturity Date
Series N
   5 years   1.68%   $ 100  
 
March 
2026
Series O
   10 years   2.25%   $ 400  
 
March 
2031
The Company used the proceeds from the issuance of these senior unsecured notes to repay other outstanding debt and for general corporate purposes. Interest on the Series N and O Senior Notes is payable semi-annually. The Company may prepay some or all of the Senior Notes at any time in an amount not less than 10% of the aggregate principal amount of the Senior Notes then outstanding, plus the applicable make-whole amount for Series N and O Senior Notes, in each case, upon no more than 60 nor less than 20 days’ written notice to the holders of the Senior Notes.
 
In the event of a change in control (as defined in the note purchase agreement) of the Company, the Company may be required to prepay the Senior Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. Other provisions for these senior unsecured notes are similar to the existing senior unsecured notes, as described below.
In November 2017, the Company entered into a credit agreement (the “2017 Credit Agreement”) that provides for a $1.5 billion revolving facility and a $300 million term loan. As of April 3, 2021 and December 31, 2020, the revolving facility and term loan had a total of $300 million and $400 million, respectively, outstanding and mature on November 30, 2022 and require no scheduled prepayments before that date.
The interest rates applicable to the 2017 Credit Agreement are, at the Company’s option, equal to either the alternate base rate (which is a rate per annum equal to the greatest of (1) the prime rate in effect on such day, (2) the Federal Reserve Bank of New York Rate on such day plus 1/2 of 1% per annum and (3) the adjusted LIBO rate on such day (or if such day is not a business day, the immediately preceding business day) for a deposit in U.S. dollars with a maturity of one month plus 1% per annum) or the applicable 1, 2, 3 or 6 month adjusted LIBO rate or EURIBO rate for Euro-denominated loans, in each case, plus an interest rate margin based upon the Company’s leverage ratio, which can range between 0 and 12.5 basis points for alternate base rate loans and between 80 and 112.5 basis points for LIBO rate or EURIBO rate loans. The facility fee on the 2017 Credit Agreement ranges between 7.5 and 25 basis points per annum, based on the leverage ratio, of the amount of the revolving facility commitments and the outstanding term loan. The 2017 Credit Agreement requires that the Company comply with an interest coverage ratio test of not less than 3.50:1 as of the end of any fiscal quarter for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. In addition, the 2017 Credit Agreement includes negative covenants, affirmative covenants, representations and warranties and events of default that are customary for investment grade credit facilities.
As of April 3, 2021 and December 31, 2020, the Company had a total of $1.4 billion and $1.0 billion, respectively, of outstanding senior unsecured notes. Interest on the fixed rate senior unsecured notes is payable semi-annually each year. Interest on the floating rate senior unsecured notes is payable quarterly. The Company may prepay all or some of the senior unsecured notes at any time in an amount not less than 10% of the aggregate principal amount outstanding, plus the applicable make-whole amount or prepayment premium for the Series H senior unsecured note. In the event of a change in control of the Company (as defined in the note purchase agreement), the Company may be required to prepay the senior unsecured notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest.
 
These senior unsecured notes require that the Company comply with an interest coverage ratio test of not less than 3.50:1 for any period of four consecutive fiscal quarters and a leverage ratio test of not more than 3.50:1 as of the end of any fiscal quarter. In addition, these senior unsecured notes include customary negative covenants, affirmative covenants, representations and warranties and events of default.
In February 2019, certain defined terms related to the subsidiary guarantors were amended in the 2017 Credit Agreement and senior unsecured note agreements. In addition, the Company amended the senior unsecured note agreements to allow the Company to elect an increase in the permitted leverage ratio from 3.50:1 to 4.0:1, for a period of three consecutive quarters, for a material acquisition of $400 million or more. During the period of time where the leverage ratio exceeds 3.50:1, the interest payable on the senior unsecured notes shall increase by 0.50%. The debt covenants in the senior unsecured note agreements were also modified to address the change in accounting guidance for leases.
 
17

Table of Contents
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) – (Continued)
 
The Company had the following outstanding debt at April 3, 2021 and December 31, 2020 (in thousands):
 
    
April 3, 2021
    
December 31, 2020
 
Senior unsecured notes - Series E - 3.97%, due March 2021
            50,000  
Senior unsecured notes - Series F - 3.40%, due June 2021
     100,000        100,000  
    
 
 
    
 
 
 
Total notes payable and debt, current
     100,000        150,000  
     
Senior unsecured notes - Series G - 3.92%, due June 2024
     50,000        50,000  
Senior unsecured notes - Series H - floating rate*, due June 2024
     50,000        50,000  
Senior unsecured notes - Series I - 3.13%, due May 2023
     50,000        50,000  
Senior unsecured notes - Series K - 3.44%, due May 2026
     160,000        160,000  
Senior unsecured notes - Series L - 3.31%, due September 2026
     200,000        200,000  
Senior unsecured notes - Series M - 3.53%, due September 2029
     300,000        300,000  
Senior unsecured notes - Series N - 1.68%, due March 2026
     100,000        —    
Senior unsecured notes - Series O - 2.25%, due March 2031
     400,000        —    
Credit agreement
     300,000        400,000  
Unamortized debt issuance costs
     (6,910      (3,485
    
 
 
    
 
 
 
Total long-term debt
     1,603,090        1,206,515  
    
 
 
    
 
 
 
Total debt
   $ 1,703,090      $ 1,356,515  
    
 
 
    
 
 
 
 
*
Series H senior unsecured notes bear interest at a
3-month
LIBOR for that floating rate interest period plus 1.25%.
As of April 3, 2021 and December 31, 2020, the Company had a total amount available to borrow under the 2017 Credit Agreement of $1.5 billion and $1.4 billion, respectively, after outstanding letters of credit. The weighted-average interest rates applicable to the senior unsecured notes and credit agreement borrowings collectively were 2.68% and 2.92% at April 3, 2021 and December 31, 2020, respectively. As of April 3, 2021, the Company was in compliance with all debt covenants.
The Company and its foreign subsidiaries also had available short-term lines of credit totaling $122 million and $109 million at April 3, 2021 and December 31, 2020, respectively, for the purpose of short-term borrowing and issuance of commercial guarantees. None of the Company’s foreign subsidiaries had outstanding short-term borrowings as of April 3, 2021
or 
December 31, 2020.
As of April 3, 2021, the Company had entered into three-year interest rate cross-currency swap derivative agreements with an aggregate notional value of $520 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its Euro-denominated net asset
investments.
7 Income Taxes