Waters Corp's Tax Allowance Shifts Due to FX

Ticker: WAT · Form: 10-K · Filed: 2024-02-27T00:00:00.000Z

Sentiment: neutral

Topics: accounting, taxes, foreign-currency, 10-K

TL;DR

**Waters Corp's tax valuation allowance saw shifts due to foreign currency translation, impacting deferred tax accounts.**

AI Summary

Waters Corp's 10-K filing for the year ended December 31, 2023, details changes in its valuation allowance for net operating loss carryforwards during 2023, 2022, and 2021. These shifts were primarily driven by foreign currency translation effects and were recorded within the income statement's provision for income taxes. The income statement impact was largely offset by adjustments in other deferred tax balance sheet accounts.

Why It Matters

These accounting adjustments reflect how foreign currency fluctuations can impact a company's tax liabilities and deferred tax assets, influencing reported earnings and balance sheet health.

Risk Assessment

Risk Level: medium — The filing details routine accounting adjustments related to deferred taxes and foreign currency translation, not indicating new or elevated operational or financial risks.

Key Numbers

Key Players & Entities

FAQ

What is the primary reason for changes in Waters Corp's valuation allowance?

The primary reason for changes in Waters Corp's valuation allowance is the effect of foreign currency translation on a net operating loss carryforward.

For which fiscal years were changes in the valuation allowance discussed?

Changes in the valuation allowance were discussed for the years ended December 31, 2023, 2022, and 2021.

Where are the valuation allowance changes recorded in the financial statements?

These amounts have been recorded as part of the income statement provision for income taxes.

What largely offset the income statement effects of these valuation allowance changes?

The income statement effects were largely offset by amounts related to changes in other deferred tax balance sheet accounts.

What type of filing is this document?

This document is a Form 10-K.

From the Filing

0001193125-24-047491.txt : 20240227 0001193125-24-047491.hdr.sgml : 20240227 20240227115237 ACCESSION NUMBER: 0001193125-24-047491 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 140 CONFORMED PERIOD OF REPORT: 20231231 FILED AS OF DATE: 20240227 DATE AS OF CHANGE: 20240227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WATERS CORP /DE/ CENTRAL INDEX KEY: 0001000697 STANDARD INDUSTRIAL CLASSIFICATION: LABORATORY ANALYTICAL INSTRUMENTS [3826] ORGANIZATION NAME: 08 Industrial Applications and Services IRS NUMBER: 133668640 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14010 FILM NUMBER: 24683818 BUSINESS ADDRESS: STREET 1: 34 MAPLE ST CITY: MILFORD STATE: MA ZIP: 01757 BUSINESS PHONE: 5084782000 MAIL ADDRESS: STREET 1: 34 MAPLE STREET CITY: MILFORD STATE: MA ZIP: 01757 FORMER COMPANY: FORMER CONFORMED NAME: WCD INVESTORS INC /DE/ DATE OF NAME CHANGE: 19960605 10-K 1 d691142d10k.htm FORM 10-K Form 10-K Table of Contents FY false --12-31 0001000697 The changes in the valuation allowance during the years ended December 31, 2023, 2022 and 2021 are primarily due to the effect of foreign currency translation on a valuation allowance related to a net operating loss carryforward. These amounts have been recorded as part of the income statement provision for income taxes. The income statement effects of these amounts have largely been offset by amounts related to changes in other deferred tax balance sheet accounts. 0001000697 2023-01-01 2023-12-31 0001000697 2022-12-31 0001000697 2023-12-31 0001000697 2022-01-01 2022-12-31 0001000697 2021-01-01 2021-12-31 0001000697 2021-12-31 0001000697 2023-03-03 0001000697 2023-10-01 2023-12-31 0001000697 2023-07-01 2023-09-30 0001000697 2023-01-01 2023-03-31 0001000697 2023-04-01 2023-06-30 0001000697 2022-04-01 2022-06-30 0001000697 2022-01-01 2022-03-31 0001000697 2022-07-01 2022-09-30 0001000697 2022-10-01 2022-12-31 0001000697 2023-05-16 0001000697 2024-02-23 0001000697 2023-06-30 0001000697 2023-07-01 2023-07-31 0001000697 2021-01-01 2021-03-31 0001000697 2020-12-31 0001000697 us-gaap:OtherNoncurrentLiabilitiesMember 2022-12-31 0001000697 us-gaap:FairValueInputsLevel2Member us-gaap:BankTimeDepositsMember 2022-12-31 0001000697 us-gaap:BankTimeDepositsMember 2022-12-31 0001000697 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember 2022-12-31 0001000697 us-gaap:OtherAssetsMember us-gaap:CrossCurrencyInterestRateContractMember 2022-12-31 0001000697 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001000697 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember 2022-12-31 0001000697 us-gaap:OtherLiabilitiesMember us-gaap:CrossCurrencyInterestRateContractMember 2022-12-31 0001000697 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001000697 us-gaap:CrossCurrencyInterestRateContractMember 2022-12-31 0001000697 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001000697 us-gaap:ForeignExchangeContractMember 2022-12-31 0001000697 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001000697 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-12-31 0001000697 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0001000697 us-gaap:OtherAssetsMember 2022-12-31 0001000697 us-gaap:UnsecuredDebtMember 2022-12-31 0001000697 us-gaap:SoftwareDevelopmentMember 2022-12-31 0001000697 wat:PatentsAndOtherIntangiblesMember 2022-12-31 0001000697 us-gaap:LicensingAgreementsMember 2022-12-31 0001000697 us-gaap:TrademarksMember 2022-12-31 0001000697 wat:PurchasedIntangiblesMember 2022-12-31 0001000697 wat:InvestmentsHeldInCurrenciesOtherThanUSDollarsMember 2022-12-

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