Basis of Presentation and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 30, 2024

Summary of Activity of Company's Allowance for Doubtful Accounts

The following is a summary of the activity of the Company’s allowance for credit losses for the three months ended March 30, 2024 and April 1, 2023 (in thousands):


	Balance at Beginning of Period		Additions		Deductions and Other			Balance at End of Period
Allowance for Credit Losses
March 30, 2024	$	19,335	$	991	$	(5,461	)	$	14,865
April 1, 2023	$	14,311	$	1,572	$	(1,028	)	$	14,855

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at March 30, 2024 (in thousands):


	Total at March 30, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Time deposits	$	923	$	—	$	923	$	—
Waters 401(k) Restoration Plan assets		30,791		30,791		—		—
Interest rate cross-currency swap agreements		7,642		—		7,642		—

Total	$	39,356	$	30,791	$	8,565	$	—

Liabilities:
Foreign currency exchange contracts	$	75	$	—	$	75	$	—
Interest rate cross-currency swap agreements		5,510		—		5,510		—
Interest rate swap cash flow hedge		865		—		865		—

Total	$	6,450	$	—	$	6,450	$	—

The following table represents the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2023 (in thousands):


	Total at December 31, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Time deposits	$	898	$	—	$	898	$	—
Waters 401(k) Restoration Plan assets		28,995		28,995		—		—
Foreign currency exchange contracts		183		—		183		—
Interest rate cross-currency swap agreements		4,835		—		4,835		—

Total	$	34,911	$	28,995	$	5,916	$	—

Liabilities:
Foreign currency exchange contracts		207		—		207		—
Interest rate cross-currency swap agreements		13,384		—		13,384		—
Interest rate swap cash flow hedge		2,974		—		2,974		—

Total	$	16,565	$	—	$	16,565	$	—

Summary of Foreign Currency Exchange Contracts and Interest Rate Cross-Currency Swap Agreements

The Company’s foreign currency exchange contracts, interest rate cross-currency swap agreements and interest rate swap agreements designated as cash flow hedges are included in the consolidated balance sheets are classified as follows (in thousands):


	March 30, 2024					December 31, 2023
	Notional		Fair Value			Notional		Fair Value
Foreign currency exchange contracts:
Other current assets	$	5,000	$	—		$	24,155	$	183
Other current liabilities	$	35,314	$	75		$	16,000	$	207
Interest rate cross-currency swap agreements:
Other assets	$	285,000	$	7,642		$	220,000	$	4,835
Other liabilities	$	340,000	$	5,510		$	405,000	$	13,384
Accumulated other comprehensive income (loss)			$	6,942				$	(7,975	)
Interest rate swap cash flow hedges:
Other liabilities	$	100,000	$	865		$	100,000	$	2,974
Accumulated other comprehensive loss			$	(865	)			$	(2,974	)

Gains (Losses) on Foreign Exchange Contracts

The following is a summary of the activity included in the consolidated statements of operations and statements of comprehensive income related to the foreign currency exchange contracts, interest rate cross-currency swap agreements and interest rate swap agreements designated as cash flow hedges (in thousands):


	Financial Statement Classification	Three Months Ended
	Financial Statement Classification	March 30, 2024			April 1, 2023
Foreign currency exchange contracts:
Realized gains on closed contracts	Cost of sales	$	257		$	30
Unrealized losses on open contracts	Cost of sales		(51	)		(78	)

Cumulative net pre-tax gains (losses)	Cost of sales	$	206		$	(48	)

Interest rate cross-currency swap agreements:
Interest earned	Interest income	$	2,537		$	2,655
Unrealized gains (losses) on contracts, net	Accumulated other comprehensive loss	$	14,917		$	(7,256	)
Interest rate swap cash flow hedges:
Interest earned	Interest income	$	296		$	—
Unrealized gains on	Accumulated other
open contracts	comprehensive loss	$	2,109		$	—

Summary of Activity of Company's Accrued Warranty Liability

The following is a summary of the activity of the Company’s accrued warranty liability for the three months ended March 30, 2024 and April 1, 2023 (in thousands):


	Balance at Beginning of Period		Accruals for Warranties		Settlements Made			Balance at End of Period
Accrued warranty liability:
March 30, 2024	$	12,050	$	480	$	(1,677	)	$	10,853
April 1, 2023	$	11,949	$	2,177	$	(1,815	)	$	12,311