XML 48 R22.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Segment Reporting | 6 Months Ended
--- | ---
Jun. 30, 2015
Segment Reporting [Abstract] |
Segment Reporting | Note 15. Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision-maker is our Chief Executive Officer. Our reportable segments include diagnostic and information technology-based products and services for the veterinary market, which we refer to as the Companion Animal Group (“CAG”), water quality products (“Water”) and diagnostic tests for livestock and poultry health and to ensure the quality and safety of milk and food, which we refer to as Livestock, Poultry and Dairy (“LPD”). Our Other operating segment combines and presents products for the human point-of-care medical diagnostics market with our pharmaceutical product line and our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments. Prior to January 1, 2015, our CAG segment included certain livestock testing services processed within and managed by our CAG Reference Laboratories. We have transitioned the responsibility for these diagnostic services to our LPD segment to more effectively align our business with the nature and customers o f these livestock services. S egment revenue and income from operations for the three and six months ended June 30, 2014 has been retrospectively revised in this Quarterly Report on Form 10-Q to reflect this change in the composition of our reportable segments. Revenue related to these livestock testing services was $4.6 million and $7.4 million for the three and six months ended June 30, 2014, respectively. Items that are not allocated to our operating segments are as follows: a portion of corporate support function and personnel-related expenses; certain manufacturing costs; corporate research and development expenses that do not align with one of our existing business or service categories; the difference between estimated and actual share-based compensation expense; and certain foreign currency exchange gains and losses. These amounts are shown under the caption “Unallocated Amounts.” We estimate our share-based compensation expense, corporate support function expenses and certain personnel-related costs and allocate the estimated expenses to the operating segments. This allocation differs from actual expense and consequently yields a difference that is reported under the caption “Unallocated Amounts.” With respect to manufacturing costs, the costs reported in our operating segments include our standard cost for products sold and any variances from standard cost for products purchased or manufactured within the period. We capitalize these variances for inventory on hand at the end of the period to record inventory in accordance with U.S. GAAP. We then record these variances as cost of product revenue as that inventory is sold. The impact to cost of product revenue resulting from this variance capitalization and subsequent recognition is reported within the caption “Unallocated Amounts.” Additionally, in certain geographies where we maintain inventories in currencies other than the U.S. dollar, the product costs reported in our operating segments include our standard cost for products sold, which is stated at the budgeted currency exchange rate from the beginning of the fiscal year. In these geographies, the variances from standard cost for products sold related to changes in currency exchange rates are reported within the caption “Unallocated Amounts.” The following is a summary of segment performance for the three and six months ended June 30, 2015 and 2014 (in thousands):
|  | For the Three Months Ended June 30, |
|  |  | CAG |  | Water |  | LPD |  | Other |  | Unallocated Amounts |  | Consolidated Total |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 351,620 |  | $ | 25,051 |  | $ | 32,059 |  | $ | 4,613 |  | $ | - |  | $ | 413,343 |
Income (loss) from operations |  | $ | 67,875 |  | $ | 11,954 |  | $ | 5,895 |  | $ | (237) |  | $ | 2,816 |  | $ | 88,303 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,700) |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 81,603 |
Provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 24,665 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 56,938 |
Less: Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 26 |
Net income attributable to IDEXX Laboratories, Inc. stockholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 56,912 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 322,129 |  | $ | 24,487 |  | $ | 37,307 |  | $ | 6,199 |  | $ | - |  | $ | 390,122 |
Income (loss) from operations |  | $ | 66,924 |  | $ | 10,064 |  | $ | 10,747 |  | $ | (249) |  | $ | (4,267) |  | $ | 83,219 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,477) |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 80,742 |
Provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 23,498 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 57,244 |
Less: Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 26 |
Net income attributable to IDEXX Laboratories, Inc. stockholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 57,218 |
|  | For the Six Months Ended June 30, |
|  |  | CAG |  | Water |  | LPD |  | Other |  | Unallocated Amounts |  | Consolidated Total |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 676,151 |  | $ | 46,749 |  | $ | 63,329 |  | $ | 9,591 |  | $ | - |  | $ | 795,820 |
Income (loss) from operations |  | $ | 120,304 |  | $ | 21,413 |  | $ | 11,846 |  | $ | (431) |  | $ | 7,974 |  | $ | 161,106 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (12,579) |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 148,527 |
Provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 45,011 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 103,516 |
Less: Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10 |
Net income attributable to IDEXX Laboratories, Inc. stockholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 103,506 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 620,857 |  | $ | 45,908 |  | $ | 71,518 |  | $ | 12,042 |  | $ | - |  | $ | 750,325 |
Income (loss) from operations |  | $ | 120,928 |  | $ | 18,180 |  | $ | 19,067 |  | $ | 340 |  | $ | (5,250) |  | $ | 153,265 |
Interest expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4,780) |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 148,485 |
Provision for income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 44,648 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 103,837 |
Less: Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 34 |
Net income attributable to IDEXX Laboratories, Inc. stockholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 103,803 |
The following is a summary of revenue by product and service category for the three and six months ended June 30, 2015 and 2014 (in thousands):
|  | For the Three Months Ended |  | For the Six Months Ended
|  | June 30, |  | June 30,
|  |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014
CAG segment revenue: |  |  |  |  |  |  |  |  |  |  |  |
CAG Diagnostics recurring revenue: |  | $ | 300,146 |  | $ | 276,949 |  | $ | 578,911 |  | $ | 532,830
IDEXX VetLab® consumables |  |  | 100,743 |  |  | 89,113 |  |  | 199,135 |  |  | 173,434
VetLab service and accessories |  |  | 14,018 |  |  | 13,433 |  |  | 27,548 |  |  | 26,504
Rapid assay products |  |  | 52,182 |  |  | 49,493 |  |  | 95,819 |  |  | 92,552
Reference laboratory diagnostic and consulting services |  |  | 133,203 |  |  | 124,910 |  |  | 256,409 |  |  | 240,340
CAG Diagnostics capital - instruments |  |  | 24,064 |  |  | 18,993 |  |  | 44,178 |  |  | 37,580
Customer information management and digital imaging systems |  |  | 27,410 |  |  | 26,187 |  |  | 53,062 |  |  | 50,447
CAG segment revenue |  |  | 351,620 |  |  | 322,129 |  |  | 676,151 |  |  | 620,857
Water segment revenue |  |  | 25,051 |  |  | 24,487 |  |  | 46,749 |  |  | 45,908
LPD segment revenue |  |  | 32,059 |  |  | 37,307 |  |  | 63,329 |  |  | 71,518
Other segment revenue |  |  | 4,613 |  |  | 6,199 |  |  | 9,591 |  |  | 12,042
Total revenue |  | $ | 413,343 |  | $ | 390,122 |  | $ | 795,820 |  | $ | 750,325

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration