2.2.0.7 false Income Taxes 10600 - Disclosure - Income Taxes true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Pure Standard http://www.xbrl.org/2003/instance pure xbrli 0 EPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Income Taxes [Abstract] 0 wat_IncomeTaxesAbstract wat false na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Income Taxes 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 6  Income Taxes The Company accounts for its uncertain tax return reporting positions in accordance with the accounting standards for income taxes, which require financial statement reporting of the expected future tax consequences of uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of the reporting positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of unrecognized tax benefits associated with uncertain reporting positions for the time value of money.The following is a summary of the activity in the Company's unrecognized tax benefits for the nine months ended October 2, 2010 and October 3, 2009 (in thousands):<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 353px; text-align:left;border-color:#000000;min-width:353px;"> </td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td colspan="2" style="width: 117px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:117px;">October 2, 2010</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td colspan="2" style="width: 117px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:117px;">October 3, 2009</td></tr><tr style="height: 17px"><td colspan="2" style="width: 365px; text-align:left;border-color:#000000;min-width:365px;">Balance at the beginning of the period</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:12px;">$</td><td style="width: 105px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:105px;"> 77,924</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:12px;">$</td><td style="width: 105px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:105px;"> 77,295</td></tr><tr style="height: 17px"><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 353px; text-align:left;border-color:#000000;min-width:353px;">Realization of uncertain U.K. tax benefits</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;"> </td><td style="width: 105px; text-align:right;border-color:#000000;min-width:105px;"> (9,996)</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;"> </td><td style="width: 105px; text-align:right;border-color:#000000;min-width:105px;"> -</td></tr><tr style="height: 17px"><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 353px; text-align:left;border-color:#000000;min-width:353px;">Realization of uncertain pre-acquisition tax benefits</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;"> </td><td style="width: 105px; text-align:right;border-color:#000000;min-width:105px;"> (1,500)</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;"> </td><td style="width: 105px; text-align:right;border-color:#000000;min-width:105px;"> -</td></tr><tr style="height: 17px"><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 353px; text-align:left;border-color:#000000;min-width:353px;">Realization of uncertain legal entity reorganization tax benefits</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;"> </td><td style="width: 105px; text-align:right;border-color:#000000;min-width:105px;"> -</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;"> </td><td style="width: 105px; text-align:right;border-color:#000000;min-width:105px;"> (4,555)</td></tr><tr style="height: 17px"><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 353px; text-align:left;border-color:#000000;min-width:353px;">Increase in other uncertain tax benefits</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:12px;"> </td><td style="width: 105px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:105px;"> 3,469</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:12px;"> </td><td style="width: 105px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:105px;"> 3,395</td></tr><tr style="height: 18px"><td colspan="2" style="width: 365px; text-align:left;border-color:#000000;min-width:365px;">Balance at the end of the period</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:center;border-color:#000000;min-width:12px;">$</td><td style="width: 105px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:105px;"> 69,897</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;"> </td><td style="width: 12px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:center;border-color:#000000;min-width:12px;">$</td><td style="width: 105px; border-top-style:solid;border-top-width:1px;border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:105px;"> 76,135</td></tr></table></div>During the three and nine months ended October 2, 2010, the Company recorded a net $8 million tax benefit in the income tax provision which represents the realization of the reserve for uncertain United Kingdom tax benefits offset by the amount of the audit settlement. Also, during the nine months ended October 2, 2010, the Company recorded $2 million of tax benefit in the income tax provision related to the resolution of a pre-acquisition tax exposure. Included in the income tax provision for the nine months ended October 3, 2009 is approximately $5 million of tax benefit in the income tax provision related to the reversal of a $5 million tax provision, which was originally recorded in 2008, relating to the reorganization of certain foreign legal entities. The recognition of this tax benefit in 2009 was a result of changes in income tax regulations promulgated by the U.S. Treasury in February 2009.  The Company's uncertain tax positions are taken with respect to income tax return reporting periods beginning after December 31, 1999, which are the periods that generally remain open to income tax audit examination by the concerned income tax authorities. The Company continuously monitors the lapsing of statutes of limitations on potential tax assessments for related changes in the measurement of unrecognized tax benefits, related net interest and penalties, and deferred tax assets and liabilities. As of October 2, 2010, the Company does not expect to record any material changes in the measurement of any other unrecognized tax benefits, related net interest and penalties or deferred tax assets and liabilities due to the settlement of tax audit examinations or to the lapsing of statutes of limitations on potential tax assessments within the next twelve months. The Company's effective tax rates for the three months ended October 2, 2010 and October 3, 2009 were 5.8% and 19.2%, respectively. The Company's effective tax rates for the nine months ended October 2, 2010 and October 3, 2009 were 12.9% and 16.3%, respectively. Included in the income tax provision for the three and nine months ended October 2, 2010 is the aforementioned $8 million tax benefit related to the reversal of reserves for uncertain tax positions due to an audit settlement in the United Kingdom. This net tax benefit decreased the Company's effective tax rate for the three and nine months ended October 2, 2010 by 7.5 percentage points and 2.6 percentage points, respectively. Also included in the income tax provision for the nine months ended October 2, 2010 is the aforementioned $2 million of tax benefit related to the resolution of a pre-acquisition tax exposure. This tax benefit decreased the Company's effective tax rate by 0.5 percentage points in the nine months ended October 2, 2010. Included in the income tax provision for the nine months ended October 3, 2009 is the aforementioned $5 million of tax benefit related to changes in U.S. income tax regulations. This tax benefit decreased the Company's effective tax rate by 1.7 percentage points for the nine months ended October 3, 2009. The remaining differences between the effective tax rates for the three and nine months ended October 2, 2010 as compared to the three and nine months ended October 3, 2009 were primarily attributable to differences in the proportionate amounts of pre-tax income recognized in jurisdictions with different effective tax rates. The accounting standards for income taxes require that a Company continually evaluate the necessity of establishing or changing valuation allowances for deferred tax assets, depending on whether it is more likely than not that actual benefit of those assets will be realized in future periods. Prior to the third quarter of 2010, the Company had recorded a $71 million deferred tax asset associated with its foreign tax credit carryforward and a $71 million valuation allowance against that deferred tax asset because it was more likely than not that actual tax benefit of $71 million would not be realized. Recording the valuation allowance, therefore, reduced the net carrying value of the related deferred tax asset to zero for financial reporting purposes. As required by the accounting standards for income taxes, the Company maintained this deferred tax asset valuation allowance until it determined, during the third quarter of 2010, that it was more likely than not that it would realize some actual tax benefit of a portion of the deferred tax asset for which a full valuation allowance had been previously provided. During the third quarter of 2010, the Company realized a benefit of $12 million and determined that it will realize an additional benefit of $14 million in the future for this deferred tax asset. As a result, in the third quarter of 2010, the Company released the $71 million valuation allowance related to the deferred tax asset associated with the foreign tax credit carryforward, reduced the deferred tax asset associated with the foreign tax credit carryforward by $57 million (reduced to $14 million), reduced accrued taxes by $12 million and increased additional paid-in capital by $26 million. The Company increased additional paid-in capital because the valuation allowance that was originally established against this deferred tax asset was originally recorded as a reduction in additional paid-in capital. The Company believes that its current projections of future taxable income support its judgment that the remaining deferred tax asset of approximately $14 million will more likely than not be realized in the future, based on the Company's review of all relevant facts and circumstances. 6  Income Taxes The Company accounts for its uncertain tax return reporting positions in accordance with the accounting standards for income false false false us-types:textBlockItemType textblock Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 false 1 2 false UnKnown UnKnown UnKnown false true