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Segment Reporting | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Reporting | SEGMENT REPORTING We operate primarily through three business segments: diagnostic and information technology-based products and services for the veterinary market, which we refer to as CAG; water quality products (“Water”); and diagnostic products and services for livestock and poultry health and to ensure the quality and safety of milk and improve producer efficiency, which we refer to as LPD. Our Other operating segment combines and presents products for the human medical diagnostics market with our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments. 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 (the "CODM"), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. Our reportable segments include: CAG, Water, LPD, and Other. Assets are not allocated to segments for internal reporting purposes. CAG develops, designs, manufactures, and distributes products and performs services for veterinarians and the biomedical analytics market, primarily related to diagnostics and information management. Water develops, designs, manufactures, and distributes a range of products used in the detection of various microbiological parameters in water. LPD develops, designs, manufactures, and distributes diagnostic tests and related instrumentation and performs services that are used to manage the health status of livestock and poultry, to improve producer efficiency, and to ensure the quality and safety of milk and improve producer efficiency. OPTI Medical manufactures and distributes diagnostic products and provide services for the human medical diagnostics market. Intersegment revenues, which are not included in the table below, were not material for the years ended December 31, 2020, 2019 and 2018. Effective January 1, 2020, we modified our management reporting to the Chief Operating Decision Maker to provide a more comprehensive view of the performance of our operating segments by including costs that previously were not allocated to our segments. Prior to January 1, 2020, certain costs were not allocated to our operating segments and were instead reported under the caption “Unallocated Amounts”. These costs primarily consist of our R&D function, regional or country expenses and unusual items. Corporate support function costs (such as information technology, facilities, human resources, finance and legal), health benefits and incentive compensation were charged to our business segments at pre-determined budgeted amounts or rates. Beginning January 1, 2020, the segments reflect these actual costs allocated to the segment based on various allocation methods, including revenue and headcount. Foreign exchange losses on settlements of foreign currency denominated transactions are not allocated to our operating segments and are instead reported within our Other reporting segment. These management reporting changes did not have a material impact to our segment results of operations for the years ended December 31, 2019 and 2018. The following tables reflect adjustments to previously reported costs in our Unallocated segment, that are now allocated to our CAG, Water, LPD and Other segments: For the year ended December 31, 2019:
(in thousands) |  |  |  |  |  |  |  |  |  |
|  | CAG |  | Water |  | LPD |  | Other |  | Unallocated
Cost of sales |  | $ | (247) |  |  | $ | (11) |  |  | $ | (14) |  |  | $ | (6) |  |  | $ | 278 |
Gross profit |  | 247 |  |  | 11 |  |  | 14 |  |  | 6 |  |  | (278) |
Operating Expenses: |  |  |  |  |  |  |  |  |  |
Sales and marketing |  | $ | (239) |  |  | $ | (11) |  |  | $ | (13) |  |  | $ | — |  |  | $ | 263 |
General and administrative |  | 13,004 |  |  | 501 |  |  | 625 |  |  | 1,363 |  |  | (15,493) |
Research and development |  | 16,479 |  |  | 33 |  |  | 41 |  |  | — |  |  | (16,553) |
Total operating expenses |  | 29,244 |  |  | 523 |  |  | 653 |  |  | 1,363 |  |  | (31,783) |
Income from operations |  | $ | (28,997) |  |  | $ | (512) |  |  | $ | (639) |  |  | $ | (1,357) |  |  | $ | 31,505 |
For the year ended December 31, 2018:
(in thousands) |  |  |  |  |  |  |  |  |  |
|  | CAG |  | Water |  | LPD |  | Other |  | Unallocated
Cost of sales |  | $ | (1,540) |  |  | $ | (69) |  |  | $ | (87) |  |  | $ | (35) |  |  | $ | 1,731 |
Gross profit |  | 1,540 |  |  | 69 |  |  | 87 |  |  | 35 |  |  | (1,731) |
Operating Expenses: |  |  |  |  |  |  |  |  |  |
Sales and marketing |  | $ | (574) |  |  | $ | (25) |  |  | $ | (32) |  |  | $ | — |  |  | $ | 631 |
General and administrative |  | 3,316 |  |  | 66 |  |  | 81 |  |  | 1,145 |  |  | (4,608) |
Research and development |  | 15,658 |  |  | (4) |  |  | (4) |  |  | — |  |  | (15,650) |
Total operating expenses |  | 18,400 |  |  | 37 |  |  | 45 |  |  | 1,145 |  |  | (19,627) |
Income from operations |  | $ | (16,860) |  |  | $ | 32 |  |  | $ | 42 |  |  | $ | (1,110) |  |  | $ | 17,896 |
The following tables reflect the impact to previously reported segment gross profit margin, operating income margin and operating expenses as a percentage of revenue, due to the allocation of these costs to our CAG, Water, LPD and Other segments: For the year ended December 31, 2019:
|  | CAG |  | Water |  | LPD |  | Other
Cost of sales |  | — | % |  | — | % |  | — | % |  | — | %
Gross profit |  | — | % |  | — | % |  | — | % |  | — | %
Operating Expenses: |  |  |  |  |  |  |  |
Sales and marketing |  | — | % |  | — | % |  | — | % |  | — | %
General and administrative |  | 0.6 | % |  | 0.4 | % |  | 0.5 | % |  | 6.1 | %
Research and development |  | 0.8 | % |  | — | % |  | — | % |  | — | %
Total operating expenses |  | 1.4 | % |  | 0.4 | % |  | 0.5 | % |  | 6.1 | %
Income from operations |  | (1.4) | % |  | (0.4) | % |  | (0.5) | % |  | (6.1) | %
For the year ended December 31, 2018:
|  | CAG |  | Water |  | LPD |  | Other
Cost of sales |  | (0.1) | % |  | (0.1) | % |  | (0.1) | % |  | (0.2) | %
Gross profit |  | 0.1 | % |  | 0.1 | % |  | 0.1 | % |  | 0.2 | %
Operating Expenses: |  |  |  |  |  |  |  |
Sales and marketing |  | — | % |  | — | % |  | — | % |  | — | %
General and administrative |  | 0.2 | % |  | 0.1 | % |  | 0.1 | % |  | 5.2 | %
Research and development |  | 0.8 | % |  | — | % |  | — | % |  | — | %
Total operating expenses |  | 1.0 | % |  | — | % |  | — | % |  | 5.2 | %
Income from operations |  | (0.9) | % |  | — | % |  | — | % |  | (5.0) | %
The following is a summary of segment performance:
(in thousands) |  | For the Years Ended December 31,
|  | CAG |  | Water |  | LPD |  | Other |  | Consolidated Total
2020 |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 2,385,765 |  |  | $ | 128,625 |  |  | $ | 145,845 |  |  | $ | 46,420 |  |  | $ | 2,706,655 |
Income from operations |  | $ | 574,887 |  |  | $ | 58,867 |  |  | $ | 40,008 |  |  | $ | 20,762 |  |  | $ | 694,524 |
Interest expense, net |  |  |  |  |  |  |  |  |  | (32,539) |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  | 661,985 |
Provision for income taxes |  |  |  |  |  |  |  |  |  | 79,854 |
Net income |  |  |  |  |  |  |  |  |  | 582,131 |
Less: Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  | 355 |
Net income attributable to IDEXX Laboratories, Inc. stockholders |  |  |  |  |  |  |  |  |  | $ | 581,776 |
Depreciation and amortization |  | $ | 84,697 |  |  | $ | 2,630 |  |  | $ | 4,070 |  |  | $ | 4,601 |  |  | $ | 95,998 |
2019 |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 2,119,183 |  |  | $ | 132,850 |  |  | $ | 132,635 |  |  | $ | 22,240 |  |  | $ | 2,406,908 |
Income from operations |  | $ | 462,605 |  |  | $ | 61,923 |  |  | $ | 24,735 |  |  | $ | 3,583 |  |  | $ | 552,846 |
Interest expense, net |  |  |  |  |  |  |  |  |  | (30,628) |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  | 522,218 |
Provision for income taxes |  |  |  |  |  |  |  |  |  | 94,426 |
Net income |  |  |  |  |  |  |  |  |  | 427,792 |
Less: Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  | 72 |
Net income attributable to IDEXX Laboratories, Inc. stockholders |  |  |  |  |  |  |  |  |  | $ | 427,720 |
Depreciation and amortization |  | $ | 77,620 |  |  | $ | 2,794 |  |  | $ | 4,007 |  |  | $ | 3,590 |  |  | $ | 88,011 |
2018 |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 1,935,428 |  |  | $ | 125,198 |  |  | $ | 130,581 |  |  | $ | 22,035 |  |  | $ | 2,213,242 |
Income from operations |  | $ | 412,623 |  |  | $ | 56,639 |  |  | $ | 19,454 |  |  | $ | 2,619 |  |  | $ | 491,335 |
Interest expense, net |  |  |  |  |  |  |  |  |  | (33,593) |
Income before provision for income taxes |  |  |  |  |  |  |  |  |  | 457,742 |
Provision for income taxes |  |  |  |  |  |  |  |  |  | 80,695 |
Net income |  |  |  |  |  |  |  |  |  | 377,047 |
Less: Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  |  | 16 |
Net income attributable to IDEXX Laboratories, Inc. stockholders |  |  |  |  |  |  |  |  |  | $ | 377,031 |
Depreciation and amortization |  | $ | 72,789 |  |  | $ | 2,592 |  |  | $ | 4,094 |  |  | $ | 3,703 |  |  | $ | 83,178 |
See "Note 3. Revenue Recognition" for a summary of disaggregated revenue by reportable segment and by major product and service category for the years ended December 31, 2020, 2019 and 2018. Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net long-lived assets by principal geographic areas were as follows:
(in thousands) |  |  |  |
|  | December 31, 2020 |  | December 31, 2019
Americas |  |  |  |
United States |  | $ | 412,700 |  |  | $ | 401,248 |
Brazil |  | 20,797 |  |  | 22,274 |
Canada |  | 4,993 |  |  | 7,784 |
|  | 438,490 |  |  | 431,306 |
Europe, the Middle East and Africa |  |  |  |
Germany |  | 67,354 |  |  | 52,032 |
United Kingdom |  | 10,191 |  |  | 12,114 |
Netherlands |  | 15,267 |  |  | 13,586 |
France |  | 2,062 |  |  | 2,061 |
Switzerland |  | 3,743 |  |  | 3,508 |
Other |  | 3,668 |  |  | 3,395 |
|  | 102,285 |  |  | 86,696 |
Asia Pacific Region |  |  |  |
Japan |  | 4,503 |  |  | 5,409 |
Australia |  | 3,304 |  |  | 4,088 |
Other |  | 6,585 |  |  | 6,346 |
|  | 14,392 |  |  | 15,843 |
Total |  | $ | 555,167 |  |  | $ | 533,845 |

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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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