(Mark One) | ||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
Delaware | 01-0393723 | ||
(State or other jurisdiction of incorporation or organization) | ( | ||
One IDEXX Drive | Westbrook | Maine | 04092 |
(Address of principal executive offices) | (ZIP Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.10 par value per share | IDXX | NASDAQ Global Select Market |
Large accelerated filer | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
Emerging growth company | ☐ |
Term/Abbreviation | Definition | |
AOCI | Accumulated other comprehensive income or loss | |
ASC | Accounting Standards Codification | |
ASU 2014-09 | Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), also referred to as the “New Revenue Standard” | |
ASU 2016-02 | ASU 2016-02, Leases (Topic 842); also referred to as the "New Leasing Standard" | |
ASU | ASU Intra-Entity Transfers of Assets Other Than Inventory, | |
CAG | Companion Animal Group, a reporting segment that provides veterinarians diagnostic products and services and information management solutions that enhance the health and well-being of pets | |
CDOR | Canadian Dollar Offered Rate, a rate at which banks commit to lending to companies | |
cGMP | The FDA’s current Good Manufacturing Practice regulations | |
Credit Facility | Our $850 million five-year unsecured revolving credit facility under an amended and restated credit agreement that was executed in December 2015, also referred to as line of credit | |
EMA | Extended maintenance agreements | |
EPA | U.S. Environmental Protection Agency | |
EPS | Earnings per share, if not specifically stated, EPS refers to earnings per share on a diluted basis | |
EU | European Union | |
FASB | U.S. Financial Accounting Standards Board | |
FDA | U.S. Food and Drug Administration | |
FeLV | Feline leukemia virus | |
FIV | Feline immunodeficiency virus, similar to the virus that leads to AIDS in humans | |
Instrument rebate programs | Our customer instrument rebate programs, previously referred to as IDEXX Instrument Marketing Programs, which require an instrument purchase and provide customers the opportunity to earn future rebates based on the volume of products and services they purchase over the term of the program | |
IVLS | IDEXX VetLab Station, connects and integrates the diagnostic information from all the IDEXX VetLab analyzers and thus provides reference laboratory information management system capability | |
Kits and consumables | Rapid assay kits and IDEXX VetLab consumables | |
LIBOR | London Interbank Offered Rate, current benchmark interest rate used between banks and used to set interest rates on loans | |
LPD | Livestock, Poultry and Dairy, a reporting segment that provides diagnostic products and services for livestock and poultry health and ensures the quality and safety of milk and improve | |
OCI | Other comprehensive income or loss | |
OPTI Medical | OPTI Medical Systems, Inc., a wholly-owned subsidiary of IDEXX Laboratories Inc., located in Roswell, Georgia. This business manufactures and supplies blood gas analyzers and consumables worldwide for the human point-of-care medical diagnostics market. The Roswell facility also manufactures electrolytes slides (instrument consumables) to run Catalyst One®, Catalyst Dx®, and blood gas analyzers and consumables for the veterinary market, and is also referred to as OPTI. | |
Organic revenue growth | A non-GAAP financial measure that represents the percentage change in revenue, as compared to the same period for the prior year, net of the effect of changes in foreign currency exchange rates, certain business acquisitions and divestitures. Organic revenue growth should be considered in addition to, and not as a replacement for or as a superior measure to, revenues reported in accordance with U.S. GAAP, and may not be comparable to similarly titled measures reported by other companies. | |
Ortho | Ortho Clinical Diagnostics, Inc., a supplier of dry slide consumables used in our Catalyst One and Catalyst Dx Chemistry Analyzers and VetTest Chemistry Analyzer | |
Up-Front customer loyalty programs | Our up-front loyalty programs provides customers with incentives in the form of cash payments or IDEXX Points upon entering into multi-year agreements to purchase annual minimum amounts of future products or services | |
PACS | Picture archiving and communication software, our software solution for accessing, storing, and sharing diagnostic images | |
R&D | Research and Development |
Reagent rentals | Instruments being placed at customer sites at little or no cost in exchange for a long-term customer commitment to purchase instrument consumables | |
Reported revenue growth | The percentage change in revenue reported in accordance with U.S. GAAP, as compared to the same period in the prior year | |
S&P | Standard & Poor’s |
S&P 500 Health Care Index | The index for the S&P 500 Health Care (U.S. companies) measures the performance of companies that are classified as members in the Global Industry Classification Standard of health care services sub-industry | |
S&P 500 Index | The S&P 500 Index is a U.S. stock market index based on the market capitalization of 500 large companies having common stock listed on the New York Stock Exchange or NASDAQ, including IDEXX | |
SaaS | Software-as-a-service | |
SDMA | Symmetrical dimethyl arginine, a biomarker that detects kidney disease | |
SEC | U.S. Securities and Exchange Commission | |
Senior Note Agreements | Note purchase agreements for the private placement of senior notes having an aggregate principal amount of approximately | |
T4 | Thyroxine, a hormone produced by the thyroid gland, tested to indicate thyroid health | |
2017 Tax Act | The Tax Cuts and Jobs Act enacted on December 22, 2017, which includes significant changes to the U.S. corporate tax system | |
U.S. GAAP | Accounting principles generally accepted in the United States of America | |
USDA | United States Department of Agriculture | |
Volume commitment programs | Programs that provide customers with a free or discounted instrument or system upon entering into multi-year agreements to purchase annual minimum amounts of products and services, such as our IDEXX 360 program. | |
Water | Water, a reporting segment that provides water microbiology testing products |
Item No. | Page No. | |
| ||
| PART I | |
| ||
| PART II | |
| ||
| PART III | |
| ||
| PART IV | |
| ||
| ||
• | SNAP 4Dx Plus, which tests for the six vector-borne diseases; Lyme disease, Ehrlichia canis, Ehrlichia ewingii, Anaplasma phagocytophilum and Anaplasma platys, and canine heartworm; |
• | SNAP Giardia, which is a fecal test for soluble Giardia antigens, a common cause of waterborne infection; and |
• | SNAP Giardia, which is a fecal test for soluble Giardia antigens; and |
• | Practice management systems. Software, hardware, and integrated services that run key functions of veterinary clinics, including managing patient electronic health records (EHR), scheduling, client communication, billing, and inventory management. Our principal practice management systems are Cornerstone (on-premise), IDEXX Neo (cloud-based), DVMAX (on-premise), and IDEXX Animana (cloud-based, available in Europe). We also support several other practice management systems including Better Choice, VPM, VetLINK, and BeeFree. To support the software system needs of practices, IDEXX provides integrated services including: Hardware, Payment Solutions, Data Backup & Recovery, and Practice Supplies including PetDetect boarding collars. |
• | Software applications that extend workflow capabilities for practices and groups. With our Smart Flow cloud offering, which we acquired in the third quarter of 2018, we are able to improve overall patient management and workflow optimization through coordination and tracking of every step of a patient during a hospital stay. Smart Flow works in conjunction with major veterinary practice management systems, including IDEXX Cornerstone, DVMAX, IDEXX Animana, IDEXX Neo, and certain third-party practice management systems. |
• | Client marketing and wellness plan management. In addition, we offer cloud-based client communication (Pet Health Network Pro and Pet Health Network 3D) and preventive care plan management software (Petly Plans) designed to strengthen the relationship between the veterinarian and the pet owner. To support the communication needs between general practices and specialty referral practices, IDEXX offers rVetLink software, which we acquired in the second quarter of 2017. Lastly, IDEXX Enterprise provides centralized management and reporting capabilities for groups of veterinary practices. |
• | Patents relating to reagents and methods for the detection of Anaplasma phagocytophilum utilized in certain of our SNAP products that started to expire in 2017 and will continue into 2022; |
• | Patents relating to reagents and methods for the detection of Ehrlichia canis utilized in certain of our SNAP products that expire beginning in 2019 and continuing into 2022; |
• | Patents concerning Catalystconsumables that expire beginning in 2020 and will continue into 2035; |
• | Companion animal diagnostic offerings. We compete primarily on the basis of ease of use and speed of our products, diagnostic accuracy, product quality, breadth of our product line and services, unique product innovations, fully integrated technology, information management capability, availability of medical consultation, effectiveness of our sales and distribution channels, quality of our technical and customer service, and our pricing relative to the value of our products and services in comparison with competitive products and services. Our major competitors in most geographic locations in North America are Antech Diagnostics, a unit of VCA Inc., a division of Mars, Incorporated; Zoetis Inc. (including its wholly-owned subsidiary Abaxis, Inc.); Heska Corporation; Samsung Electronics Co., Ltd., and FUJIFILM North America Corporation. We also compete in certain international markets with Zoetis, Fujifilm Holdings Corporation, Samsung Electronics, Arkray, Inc., and BioNote, Inc. |
• | Water, livestock,poultry,and dairy testing products. We compete primarily on the basis of the ease of use, speed, accuracy, product quality and other performance characteristics of our products and services (including unique tests), the breadth of our product line and services, the effectiveness of our sales and distribution channels, the quality of our technical and customer service, our ability to receive regulatory approvals from governing agencies and our pricing relative to the value of our products in comparison with competitive products and services. Our competitors include highly focused smaller companies and multibillion-dollar companies with small livestock and poultry diagnostics and water testing solution franchises. |
• | Veterinary Software, Services and Diagnostic Imaging Systems. We compete primarily on the basis of functionality, connectivity to equipment and other systems, performance characteristics, effectiveness of our implementation, training process and customer service, information handling capabilities, advances in technologies and our pricing relative to the value of our products and services. We sell these products primarily in North America and Europe. Our largest competitor in North America and the U.K. is Covetrus, Inc., which offers several systems and leverages its animal health distribution business in sales and service. We also compete with numerous focused smaller companies throughout the markets in which we offer veterinary software, including those offering cloud-based solutions. |
• | Electrolyte and blood gas analyzers for the human point-of-care medical diagnostics market. We compete primarily on the basis of the ease of use, menu, convenience, international distribution and service, instrument reliability, and our pricing relative to the value of our products. We compete primarily with large human medical diagnostics companies such as Radiometer A/S, Siemens Medical Solutions Diagnostics, Instrumentation Laboratory Company, Abbott Diagnostics, a division of Abbott Laboratories and Roche Diagnostics Corporation. |
Location | Functions | Own/Lease |
Westbrook, Maine | United States Headquarters | Own |
Hoofddorp, Netherlands | European Headquarters | Lease |
Memphis, Tennessee | Distribution Center and Reference Lab | Lease |
Ludwigsburg, Germany | Reference Lab | Lease |
Wetherby, United Kingdom | Reference Lab | Lease |
Newmarket, United Kingdom | Water manufacturing | Lease |
Bern, Switzerland | LPD manufacturing | Lease |
Montpelier, France | LPD manufacturing | Lease |
Roswell, Georgia | OPTI Medical manufacturing | Lease |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share (b) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) (c) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) (d) | |||||||||
| |||||||||||||
October 1, 2018 to October 31, 2018 | 364,975 | $ | 216.77 | 364,975 | 3,337,367 | ||||||||
November 1, 2018 to November 30, 2018 | 77,442 | 201.94 | 77,442 | 3,259,925 | |||||||||
December 1, 2018 to December 31, 2018 | 48,388 | 185.86 | 47,071 | 3,212,854 | |||||||||
Total | 490,805 | (2) | $ | 211.38 | 489,488 | 3,212,854 |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share (b) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) (c) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) (d) | |||||||||
| |||||||||||||
October 1, 2019 to October 31, 2019 | 120,339 | $ | 273.57 | 120,339 | 2,408,629 | ||||||||
November 1, 2019 to November 30, 2019 | 197,421 | 258.96 | 197,421 | 2,211,208 | |||||||||
December 1, 2019 to December 31, 2019 | 215,313 | 254.51 | 214,500 | 1,996,708 | |||||||||
Total | 533,073 | (2) | $ | 260.46 | 532,260 | 1,996,708 |
12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | |||||||||||||
IDEXX Laboratories, Inc. | $100.00 | $139.39 | $137.11 | $220.49 | $294.03 | $349.76 | $100.00 | $98.36 | $158.18 | $210.94 | $250.92 | $352.24 | ||||||||||||
NASDAQ Index | $100.00 | $114.75 | $122.74 | $133.62 | $173.22 | $168.30 | $100.00 | $106.96 | $116.45 | $150.96 | $146.67 | $200.49 | ||||||||||||
S&P 500 Index | $100.00 | $113.69 | $115.26 | $129.05 | $157.22 | $150.33 | $100.00 | $101.38 | $113.51 | $138.29 | $132.23 | $173.86 | ||||||||||||
S&P 500 Health Care Index | $100.00 | $125.34 | $133.97 | $130.37 | $159.15 | $169.44 | $100.00 | $106.89 | $104.01 | $126.98 | $135.19 | $163.34 |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | 2019 (1) | 2018 (2) | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||
INCOME STATEMENT DATA: | ||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 2,213,242 | $ | 1,969,058 | $ | 1,775,423 | $ | 1,601,892 | $ | 1,485,807 | $ | 2,406,908 | $ | 2,213,242 | $ | 1,969,058 | $ | 1,775,423 | $ | 1,601,892 | ||||||||||||||||||||
Cost of revenue | 971,700 | 871,676 | 799,987 | 711,622 | 669,691 | 1,041,359 | 971,700 | 871,676 | 799,987 | 711,622 | ||||||||||||||||||||||||||||||
Gross profit | 1,241,542 | 1,097,382 | 975,436 | 890,270 | 816,116 | 1,365,549 | 1,241,542 | 1,097,382 | 975,436 | 890,270 | ||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 387,406 | 354,294 | 317,058 | 299,955 | 283,708 | 418,193 | 387,406 | 354,294 | 317,058 | 299,955 | ||||||||||||||||||||||||||||||
General and administrative | 244,938 | 220,878 | 207,017 | 182,510 | 173,890 | 261,317 | 244,938 | 220,878 | 207,017 | 182,510 | ||||||||||||||||||||||||||||||
Research and development | 117,863 | 109,182 | 101,122 | 99,681 | 98,263 | 133,193 | 117,863 | 109,182 | 101,122 | 99,681 | ||||||||||||||||||||||||||||||
Impairment charge | — | — | — | 8,212 | — | — | — | — | — | 8,212 | ||||||||||||||||||||||||||||||
Income from operations | 491,335 | 413,028 | 350,239 | 299,912 | 260,255 | 552,846 | 491,335 | 413,028 | 350,239 | 299,912 | ||||||||||||||||||||||||||||||
Interest expense, net | (33,593 | ) | (31,971 | ) | (28,393 | ) | (26,771 | ) | (13,700 | ) | (30,628 | ) | (33,593 | ) | (31,971 | ) | (28,393 | ) | (26,771 | ) | ||||||||||||||||||||
Income before provision for income taxes | 457,742 | 381,057 | 321,846 | 273,141 | 246,555 | 522,218 | 457,742 | 381,057 | 321,846 | 273,141 | ||||||||||||||||||||||||||||||
Provision for income taxes | 80,695 | 117,788 | 99,792 | 81,006 | 64,604 | 94,426 | 80,695 | 117,788 | 99,792 | 81,006 | ||||||||||||||||||||||||||||||
Net income | 377,047 | 263,269 | 222,054 | 192,135 | 181,951 | 427,792 | 377,047 | 263,269 | 222,054 | 192,135 | ||||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 16 | 125 | 9 | 57 | 45 | 72 | 16 | 125 | 9 | 57 | ||||||||||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 377,031 | $ | 263,144 | $ | 222,045 | $ | 192,078 | $ | 181,906 | $ | 427,720 | $ | 377,031 | $ | 263,144 | $ | 222,045 | $ | 192,078 | ||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | 4.34 | $ | 3.00 | $ | 2.47 | $ | 2.07 | $ | 1.82 | $ | 4.97 | $ | 4.34 | $ | 3.00 | $ | 2.47 | $ | 2.07 | ||||||||||||||||||||
Diluted | $ | 4.26 | $ | 2.94 | $ | 2.44 | $ | 2.05 | $ | 1.79 | $ | 4.89 | $ | 4.26 | $ | 2.94 | $ | 2.44 | $ | 2.05 | ||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||||||||
Basic | 86,864 | 87,769 | 89,732 | 92,601 | 100,094 | 86,115 | 86,864 | 87,769 | 89,732 | 92,601 | ||||||||||||||||||||||||||||||
Diluted | 88,470 | 89,567 | 90,884 | 93,649 | 101,503 | 87,542 | 88,470 | 89,567 | 90,884 | 93,649 | ||||||||||||||||||||||||||||||
BALANCE SHEET DATA: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 123,794 | $ | 187,675 | $ | 154,901 | $ | 128,994 | $ | 322,536 | $ | 90,326 | $ | 123,794 | $ | 187,675 | $ | 154,901 | $ | 128,994 | ||||||||||||||||||||
Marketable securities | — | 284,255 | 236,949 | 213,591 | — | — | — | 284,255 | 236,949 | 213,591 | ||||||||||||||||||||||||||||||
Cash and cash equivalents and marketable securities | $ | 123,794 | $ | 471,930 | $ | 391,850 | $ | 342,585 | $ | 322,536 | $ | 90,326 | $ | 123,794 | $ | 471,930 | $ | 391,850 | $ | 342,585 | ||||||||||||||||||||
Working capital | $ | (116,272 | ) | $ | (32,582 | ) | $ | (88,984 | ) | $ | (35,127 | ) | $ | (61,508 | ) | $ | (45,698 | ) | $ | (116,272 | ) | $ | (32,582 | ) | $ | (88,984 | ) | $ | (35,127 | ) | ||||||||||
Total assets | $ | 1,537,349 | $ | 1,713,416 | $ | 1,530,704 | $ | 1,474,993 | $ | 1,384,211 | $ | 1,832,475 | $ | 1,537,349 | $ | 1,713,416 | $ | 1,530,704 | $ | 1,474,993 | ||||||||||||||||||||
Total long-term debt | $ | 601,348 | $ | 606,075 | $ | 593,110 | $ | 597,085 | $ | 350,000 | $ | 698,910 | $ | 601,348 | $ | 606,075 | $ | 593,110 | $ | 597,085 | ||||||||||||||||||||
Total stockholders' equity (deficit) | $ | (9,233 | ) | $ | (53,842 | ) | $ | (108,213 | ) | $ | (83,995 | ) | $ | 117,589 | $ | 177,825 | $ | (9,233 | ) | $ | (53,842 | ) | $ | (108,213 | ) | $ | (83,995 | ) |
(1) | See "Part |
(2) | See "Part II, Item 8. Financial Statements and Supplementary Data, Note 3. Revenue Recognition" to the consolidated financial statements included in the Annual Report on Form 10-K for additional information regarding the adoption of the New Revenue Standard. |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||
Expected stock price volatility | 24 | % | 26 | % | 25 | % | 26 | % | 24 | % | 26 | % | ||||||
Expected term, in years(1) | 5.8 | 5.8 | 5.7 | 6.0 | 5.8 | 5.8 | ||||||||||||
Risk-free interest rate | 2.7 | % | 2.0 | % | 1.2 | % | 2.4 | % | 2.7 | % | 2.0 | % |
(1) | Options granted have a contractual term of ten years. |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Net Revenue (dollars in thousands) | 2018 | 2017 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | 2019 | 2018 | Dollar Change | Reported Revenue Growth (1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth (1) | ||||||||||||||||||||||||||||||||||
CAG | $ | 1,935,428 | $ | 1,703,377 | $ | 232,051 | 13.6 | % | 0.7 | % | 0.1 | % | 12.8 | % | $ | 2,119,183 | $ | 1,935,428 | $ | 183,755 | 9.5 | % | (1.5 | %) | 0.2 | % | 10.8 | % | ||||||||||||||||||||
United States | 1,277,146 | 1,125,364 | 151,782 | 13.5 | % | — | 0.1 | % | 13.4 | % | 1,410,278 | 1,277,146 | 133,132 | 10.4 | % | — | 0.3 | % | 10.1 | % | ||||||||||||||||||||||||||||
International | 658,282 | 578,013 | 80,269 | 13.9 | % | 2.1 | % | — | 11.7 | % | 708,905 | 658,282 | 50,623 | 7.7 | % | (4.6 | %) | — | 12.2 | % | ||||||||||||||||||||||||||||
Water | 125,198 | 114,395 | 10,803 | 9.4 | % | 0.2 | % | — | 9.3 | % | 132,850 | 125,198 | 7,652 | 6.1 | % | (2.6 | %) | — | 8.7 | % | ||||||||||||||||||||||||||||
United States | 58,774 | 55,482 | 3,292 | 5.9 | % | — | — | 5.9 | % | 62,673 | 58,774 | 3,899 | 6.6 | % | — | — | 6.6 | % | ||||||||||||||||||||||||||||||
International | 66,424 | 58,913 | 7,511 | 12.7 | % | 0.3 | % | — | 12.4 | % | 70,177 | 66,424 | 3,753 | 5.7 | % | (4.9 | %) | — | 10.6 | % | ||||||||||||||||||||||||||||
LPD | 130,581 | 128,481 | 2,100 | 1.6 | % | 1.0 | % | — | 0.6 | % | 132,635 | 130,581 | 2,054 | 1.6 | % | (4.2 | %) | — | 5.8 | % | ||||||||||||||||||||||||||||
United States | 13,932 | 14,108 | (176 | ) | (1.3 | %) | — | — | (1.3 | %) | 14,230 | 13,932 | 298 | 2.1 | % | — | — | 2.1 | % | |||||||||||||||||||||||||||||
International | 116,649 | 114,373 | 2,276 | 2.0 | % | 1.1 | % | — | 0.9 | % | 118,405 | 116,649 | 1,756 | 1.5 | % | (4.7 | %) | — | 6.2 | % | ||||||||||||||||||||||||||||
Other | 22,035 | 22,805 | (770 | ) | (3.4 | %) | 0.3 | % | — | (3.7 | %) | 22,240 | 22,035 | 205 | 0.9 | % | — | — | 0.9 | % | ||||||||||||||||||||||||||||
Total Company | $ | 2,213,242 | $ | 1,969,058 | $ | 244,184 | 12.4 | % | 0.7 | % | 0.1 | % | 11.6 | % | $ | 2,406,908 | $ | 2,213,242 | $ | 193,666 | 8.8 | % | (1.8 | %) | 0.2 | % | 10.3 | % | ||||||||||||||||||||
United States | 1,357,909 | 1,203,547 | 154,362 | 12.8 | % | — | 0.1 | % | 12.7 | % | 1,495,516 | 1,357,909 | 137,607 | 10.1 | % | — | 0.3 | % | 9.8 | % | ||||||||||||||||||||||||||||
International | 855,333 | 765,511 | 89,822 | 11.7 | % | 1.8 | % | — | 9.9 | % | 911,392 | 855,333 | 56,059 | 6.6 | % | (4.6 | %) | — | 11.1 | % |
(1) | Reported revenue growth and organic revenue growth may not recalculate due to rounding. |
For the Years Ended December 31, | Change | For the Years Ended December 31, | Change | |||||||||||||||||||||||||||||||||||||||
Total Company - Results of Operations (dollars in thousands) | 2018 | Percent of Revenue | 2017 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | 2,213,242 | $ | 1,969,058 | $ | 244,184 | 12.4 | % | $ | 2,406,908 | $ | 2,213,242 | $ | 193,666 | 8.8 | % | ||||||||||||||||||||||||||
Cost of revenue | 971,700 | 871,676 | 100,024 | 11.5 | % | 1,041,359 | 971,700 | 69,659 | 7.2 | % | ||||||||||||||||||||||||||||||||
Gross profit | 1,241,542 | 56.1 | % | 1,097,382 | 55.7 | % | 144,160 | 13.1 | % | 1,365,549 | 56.7 | % | 1,241,542 | 56.1 | % | 124,007 | 10.0 | % | ||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 387,406 | 17.5 | % | 354,294 | 18.0 | % | 33,112 | 9.3 | % | 418,193 | 17.4 | % | 387,406 | 17.5 | % | 30,787 | 7.9 | % | ||||||||||||||||||||||||
General and administrative | 244,938 | 11.1 | % | 220,878 | 11.2 | % | 24,060 | 10.9 | % | 261,317 | 10.9 | % | 244,938 | 11.1 | % | 16,379 | 6.7 | % | ||||||||||||||||||||||||
Research and development | 117,863 | 5.3 | % | 109,182 | 5.5 | % | 8,681 | 8.0 | % | 133,193 | 5.5 | % | 117,863 | 5.3 | % | 15,330 | 13.0 | % | ||||||||||||||||||||||||
Total operating expenses | 750,207 | 33.9 | % | 684,354 | 34.8 | % | 65,853 | 9.6 | % | 812,703 | 33.8 | % | 750,207 | 33.9 | % | 62,496 | 8.3 | % | ||||||||||||||||||||||||
Income from operations | $ | 491,335 | 22.2 | % | $ | 413,028 | 21.0 | % | $ | 78,307 | 19.0 | % | $ | 552,846 | 23.0 | % | $ | 491,335 | 22.2 | % | $ | 61,511 | 12.5 | % |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Net Revenue (dollars in thousands) | 2018 | 2017 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | 2019 | 2018 | Dollar Change | Reported Revenue Growth (1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth (1) | ||||||||||||||||||||||||||||||||||
CAG Diagnostics recurring revenue: | $ | 1,654,530 | $ | 1,451,701 | $ | 202,829 | 14.0 | % | 0.8 | % | — | 13.2 | % | $ | 1,828,329 | $ | 1,654,530 | $ | 173,799 | 10.5 | % | (1.6 | %) | 0.2 | % | 11.9 | % | |||||||||||||||||||||
IDEXX VetLab consumables | 617,237 | 518,774 | 98,463 | 19.0 | % | 0.8 | % | — | 18.1 | % | 693,360 | 617,237 | 76,123 | 12.3 | % | (2.0 | %) | — | 14.3 | % | ||||||||||||||||||||||||||||
Rapid assay products | 217,541 | 205,309 | 12,232 | 6.0 | % | 0.4 | % | — | 5.6 | % | 232,149 | 217,541 | 14,608 | 6.7 | % | (0.8 | %) | — | 7.6 | % | ||||||||||||||||||||||||||||
Reference laboratory diagnostic and consulting services | 746,794 | 660,142 | 86,652 | 13.1 | % | 0.9 | % | — | 12.2 | % | 822,497 | 746,794 | 75,703 | 10.1 | % | (1.5 | %) | 0.4 | % | 11.2 | % | |||||||||||||||||||||||||||
CAG Diagnostics services and accessories | 72,958 | 67,476 | 5,482 | 8.1 | % | 0.8 | % | — | 7.4 | % | 80,323 | 72,958 | 7,365 | 10.1 | % | (1.9 | %) | — | 12.0 | % | ||||||||||||||||||||||||||||
CAG Diagnostics capital - instruments | 134,264 | 119,963 | 14,301 | 11.9 | % | 0.6 | % | — | 11.3 | % | 132,685 | 134,264 | (1,579 | ) | (1.2 | %) | (2.0 | %) | — | 0.9 | % | |||||||||||||||||||||||||||
Veterinary software, services and diagnostic imaging systems | 146,634 | 131,713 | 14,921 | 11.3 | % | 0.1 | % | 1.3 | % | 10.0 | % | 158,169 | 146,634 | 11,535 | 7.9 | % | (0.3 | %) | 0.9 | % | 7.3 | % | ||||||||||||||||||||||||||
Net CAG revenue | $ | 1,935,428 | $ | 1,703,377 | $ | 232,051 | 13.6 | % | 0.7 | % | 0.1 | % | 12.8 | % | $ | 2,119,183 | $ | 1,935,428 | $ | 183,755 | 9.5 | % | (1.5 | %) | 0.2 | % | 10.8 | % |
(1) | Reported revenue growth and organic revenue growth may not recalculate due to rounding. |
For the Years Ended December 31, | Change | For the Years Ended December 31, | Change | |||||||||||||||||||||||||||||||||||||||
Results of Operations (dollars in thousands) | 2018 | Percent of Revenue | 2017 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | 1,935,428 | $ | 1,703,377 | $ | 232,051 | 13.6 | % | $ | 2,119,183 | $ | 1,935,428 | $ | 183,755 | 9.5 | % | ||||||||||||||||||||||||||
Cost of revenue | 868,919 | 766,579 | 102,340 | 13.4 | % | 938,423 | 868,919 | 69,504 | 8.0 | % | ||||||||||||||||||||||||||||||||
Gross profit | 1,066,509 | 55.1 | % | 936,798 | 55.0 | % | 129,711 | 13.8 | % | 1,180,760 | 55.7 | % | 1,066,509 | 55.1 | % | 114,251 | 10.7 | % | ||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 345,737 | 17.9 | % | 312,497 | 18.3 | % | 33,240 | 10.6 | % | 378,302 | 17.9 | % | 345,737 | 17.9 | % | 32,565 | 9.4 | % | ||||||||||||||||||||||||
General and administrative | 204,425 | 10.6 | % | 180,907 | 10.6 | % | 23,518 | 13.0 | % | 212,794 | 10.0 | % | 204,425 | 10.6 | % | 8,369 | 4.1 | % | ||||||||||||||||||||||||
Research and development | 86,864 | 4.5 | % | 79,837 | 4.7 | % | 7,027 | 8.8 | % | 98,062 | 4.6 | % | 86,864 | 4.5 | % | 11,198 | 12.9 | % | ||||||||||||||||||||||||
Total operating expenses | 637,026 | 32.9 | % | 573,241 | 33.7 | % | 63,785 | 11.1 | % | 689,158 | 32.5 | % | 637,026 | 32.9 | % | 52,132 | 8.2 | % | ||||||||||||||||||||||||
Income from operations | $ | 429,483 | 22.2 | % | $ | 363,557 | 21.3 | % | $ | 65,926 | 18.1 | % | $ | 491,602 | 23.2 | % | $ | 429,483 | 22.2 | % | $ | 62,119 | 14.5 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2018 | Percent of Revenue | 2017 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 125,198 | $ | 114,395 | $ | 10,803 | 9.4 | % | |||||||||||||
Cost of revenue | 37,106 | 35,030 | 2,076 | 5.9 | % | ||||||||||||||||
Gross profit | 88,092 | 70.4 | % | 79,365 | 69.4 | % | 8,727 | 11.0 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 15,900 | 12.7 | % | 14,482 | 12.7 | % | 1,418 | 9.8 | % | ||||||||||||
General and administrative | 13,005 | 10.4 | % | 11,803 | 10.3 | % | 1,202 | 10.2 | % | ||||||||||||
Research and development | 2,580 | 2.1 | % | 2,464 | 2.2 | % | 116 | 4.7 | % | ||||||||||||
Total operating expenses | 31,485 | 25.1 | % | 28,749 | 25.1 | % | 2,736 | 9.5 | % | ||||||||||||
Income from operations | $ | 56,607 | 45.2 | % | $ | 50,616 | 44.2 | % | $ | 5,991 | 11.8 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2018 | Percent of Revenue | 2017 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 130,581 | $ | 128,481 | $ | 2,100 | 1.6 | % | |||||||||||||
Cost of revenue | 55,621 | 56,341 | (720 | ) | (1.3 | %) | |||||||||||||||
Gross profit | 74,960 | 57.4 | % | 72,140 | 56.1 | % | 2,820 | 3.9 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 24,594 | 18.8 | % | 24,801 | 19.3 | % | (207 | ) | (0.8 | %) | |||||||||||
General and administrative | 19,159 | 14.7 | % | 18,723 | 14.6 | % | 436 | 2.3 | % | ||||||||||||
Research and development | 11,795 | 9.0 | % | 12,152 | 9.5 | % | (357 | ) | (2.9 | %) | |||||||||||
Total operating expenses | 55,548 | 42.5 | % | 55,676 | 43.3 | % | (128 | ) | (0.2 | %) | |||||||||||
Income from operations | $ | 19,412 | 14.9 | % | $ | 16,464 | 12.8 | % | $ | 2,948 | 17.9 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 132,850 | $ | 125,198 | $ | 7,652 | 6.1 | % | |||||||||||||
Cost of revenue | 36,915 | 37,106 | (191 | ) | (0.5 | %) | |||||||||||||||
Gross profit | 95,935 | 72.2 | % | 88,092 | 70.4 | % | 7,843 | 8.9 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 15,980 | 12.0 | % | 15,900 | 12.7 | % | 80 | 0.5 | % | ||||||||||||
General and administrative | 13,388 | 10.1 | % | 13,005 | 10.4 | % | 383 | 2.9 | % | ||||||||||||
Research and development | 4,132 | 3.1 | % | 2,580 | 2.1 | % | 1,552 | 60.2 | % | ||||||||||||
Total operating expenses | 33,500 | 25.2 | % | 31,485 | 25.1 | % | 2,015 | 6.4 | % | ||||||||||||
Income from operations | $ | 62,435 | 47.0 | % | $ | 56,607 | 45.2 | % | $ | 5,828 | 10.3 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 132,635 | $ | 130,581 | $ | 2,054 | 1.6 | % | |||||||||||||
Cost of revenue | 54,145 | 55,621 | (1,476 | ) | (2.7 | %) | |||||||||||||||
Gross profit | 78,490 | 59.2 | % | 74,960 | 57.4 | % | 3,530 | 4.7 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 22,808 | 17.2 | % | 24,594 | 18.8 | % | (1,786 | ) | (7.3 | %) | |||||||||||
General and administrative | 17,651 | 13.3 | % | 19,159 | 14.7 | % | (1,508 | ) | (7.9 | %) | |||||||||||
Research and development | 12,657 | 9.5 | % | 11,795 | 9.0 | % | 862 | 7.3 | % | ||||||||||||
Total operating expenses | 53,116 | 40.0 | % | 55,548 | 42.5 | % | (2,432 | ) | (4.4 | %) | |||||||||||
Income from operations | $ | 25,374 | 19.1 | % | $ | 19,412 | 14.9 | % | $ | 5,962 | 30.7 | % |
For the Years Ended December 31, | Change | For the Years Ended December 31, | Change | |||||||||||||||||||||||||||||||||||||||
Results of Operations (dollars in thousands) | 2018 | Percent of Revenue | 2017 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||||||
Revenues | $ | 22,035 | $ | 22,805 | $ | (770 | ) | (3.4 | %) | $ | 22,240 | $ | 22,035 | $ | 205 | 0.9 | % | |||||||||||||||||||||||||
Cost of revenue | 11,785 | 11,417 | 368 | 3.2 | % | 12,154 | 11,785 | 369 | 3.1 | % | ||||||||||||||||||||||||||||||||
Gross profit | 10,250 | 46.5 | % | 11,388 | 49.9 | % | (1,138 | ) | (10.0 | %) | 10,086 | 45.4 | % | 10,250 | 46.5 | % | (164 | ) | (1.6 | %) | ||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 1,806 | 8.2 | % | 2,093 | 9.2 | % | (287 | ) | (13.7 | %) | 1,366 | 6.1 | % | 1,806 | 8.2 | % | (440 | ) | (24.4 | %) | ||||||||||||||||||||||
General and administrative | 3,741 | 17.0 | % | 3,359 | 14.7 | % | 382 | 11.4 | % | 1,991 | 9.0 | % | 3,741 | 17.0 | % | (1,750 | ) | (46.8 | %) | |||||||||||||||||||||||
Research and development | 974 | 4.4 | % | 1,099 | 4.8 | % | (125 | ) | (11.4 | %) | 1,789 | 8.0 | % | 974 | 4.4 | % | 815 | 83.7 | % | |||||||||||||||||||||||
Total operating expenses | 6,521 | 29.6 | % | 6,551 | 28.7 | % | (30 | ) | (0.5 | %) | 5,146 | 23.1 | % | 6,521 | 29.6 | % | (1,375 | ) | (21.1 | %) | ||||||||||||||||||||||
Income from operations | $ | 3,729 | 16.9 | % | $ | 4,837 | 21.2 | % | $ | (1,108 | ) | (22.9 | %) | $ | 4,940 | 22.2 | % | $ | 3,729 | 16.9 | % | $ | 1,211 | 32.5 | % |
For the Years Ended December 31, | Change | For the Years Ended December 31, | Change | |||||||||||||||||||||||||||||||||||
Results of Operations (dollars in thousands) | 2018 | Percent of Revenue | 2017 | Percent of Revenue | Amount | Percentage | 2019 | Percent of Revenue | 2018 | Percent of Revenue | Amount | Percentage | ||||||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | N/A | $ | — | $ | — | $ | — | N/A | ||||||||||||||||||||||||
Cost of revenue | (1,731 | ) | 2,309 | (4,040 | ) | (175.0 | %) | (278 | ) | (1,731 | ) | 1,453 | (83.9 | %) | ||||||||||||||||||||||||
Gross profit | 1,731 | (2,309 | ) | 4,040 | (175.0 | %) | 278 | 1,731 | (1,453 | ) | (83.9 | %) | ||||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||
Sales and marketing | (631 | ) | 421 | (1,052 | ) | (249.9 | %) | (263 | ) | (631 | ) | 368 | (58.3 | %) | ||||||||||||||||||||||||
General and administrative | 4,608 | 6,086 | (1,478 | ) | (24.3 | %) | 15,493 | 4,608 | 10,885 | 236.2 | % | |||||||||||||||||||||||||||
Research and development | 15,650 | 13,630 | 2,020 | 14.8 | % | 16,553 | 15,650 | 903 | 5.8 | % | ||||||||||||||||||||||||||||
Total operating expenses | 19,627 | 20,137 | (510 | ) | (2.5 | %) | 31,783 | 19,627 | 12,156 | 61.9 | % | |||||||||||||||||||||||||||
Income from operations | $ | (17,896 | ) | $ | (22,446 | ) | $ | 4,550 | (20.3 | %) | $ | (31,505 | ) | $ | (17,896 | ) | $ | (13,609 | ) | 76.0 | % |
| For the Years Ended December 31, | |||||||||||||||||||||||
Net Revenue (dollars in thousands) | 2017 | 2016 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | |||||||||||||||||
| ||||||||||||||||||||||||
CAG | $ | 1,703,377 | $ | 1,522,689 | $ | 180,688 | 11.9 | % | 0.3 | % | 0.2 | % | 11.4 | % | ||||||||||
United States | 1,125,364 | 1,017,065 | 108,299 | 10.6 | % | — | 0.2 | % | 10.5 | % | ||||||||||||||
International | 578,013 | 505,624 | 72,389 | 14.3 | % | 0.8 | % | 0.4 | % | 13.2 | % | |||||||||||||
| ||||||||||||||||||||||||
Water | 114,395 | 103,579 | 10,816 | 10.4 | % | 0.3 | % | — | 10.2 | % | ||||||||||||||
United States | 55,482 | 52,852 | 2,630 | 5.0 | % | — | — | 5.0 | % | |||||||||||||||
International | 58,913 | 50,727 | 8,186 | 16.1 | % | 0.6 | % | — | 15.6 | % | ||||||||||||||
| ||||||||||||||||||||||||
LPD | 128,481 | 126,491 | 1,990 | 1.6 | % | 1.1 | % | — | 0.5 | % | ||||||||||||||
United States | 14,108 | 13,253 | 855 | 6.5 | % | — | — | 6.5 | % | |||||||||||||||
International | 114,373 | 113,238 | 1,135 | 1.0 | % | 1.2 | % | — | (0.2 | %) | ||||||||||||||
| ||||||||||||||||||||||||
Other | 22,805 | 22,664 | 141 | 0.6 | % | 0.1 | % | — | 0.5 | % | ||||||||||||||
| ||||||||||||||||||||||||
Total Company | $ | 1,969,058 | $ | 1,775,423 | $ | 193,635 | 10.9 | % | 0.3 | % | 0.2 | % | 10.4 | % | ||||||||||
United States | 1,203,547 | 1,089,595 | 113,952 | 10.5 | % | — | 0.2 | % | 10.3 | % | ||||||||||||||
International | 765,511 | 685,828 | 79,683 | 11.6 | % | 0.8 | % | 0.3 | % | 10.5 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Total Company - Results of Operations (dollars in thousands) | 2017 | Percent of Revenue | 2016 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 1,969,058 | $ | 1,775,423 | $ | 193,635 | 10.9 | % | |||||||||||||
Cost of revenue | 871,676 | 799,987 | 71,689 | 9.0 | % | ||||||||||||||||
Gross profit | 1,097,382 | 55.7 | % | 975,436 | 54.9 | % | 121,946 | 12.5 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 354,294 | 18.0 | % | 317,058 | 17.9 | % | 37,236 | 11.7 | % | ||||||||||||
General and administrative | 220,878 | 11.2 | % | 207,017 | 11.7 | % | 13,861 | 6.7 | % | ||||||||||||
Research and development | 109,182 | 5.5 | % | 101,122 | 5.7 | % | 8,060 | 8.0 | % | ||||||||||||
Total operating expenses | 684,354 | 34.8 | % | 625,197 | 35.2 | % | 59,157 | 9.5 | % | ||||||||||||
Income from operations | $ | 413,028 | 21.0 | % | $ | 350,239 | 19.7 | % | $ | 62,789 | 17.9 | % |
For the Years Ended December 31, | ||||||||||||||||||||||||
Net Revenue (dollars in thousands) | 2017 | 2016 | Dollar Change | Reported Revenue Growth(1) | Percentage Change from Currency | Percentage Change from Acquisitions | Organic Revenue Growth(1) | |||||||||||||||||
| ||||||||||||||||||||||||
CAG Diagnostics recurring revenue: | $ | 1,451,701 | $ | 1,281,262 | $ | 170,439 | 13.3 | % | 0.2 | % | 0.3 | % | 12.8 | % | ||||||||||
IDEXX VetLab consumables | 518,774 | 451,456 | 67,318 | 14.9 | % | 0.3 | % | — | 14.6 | % | ||||||||||||||
Rapid assay products | 205,309 | 189,122 | 16,187 | 8.6 | % | 0.1 | % | — | 8.5 | % | ||||||||||||||
Reference laboratory diagnostic and consulting services | 660,142 | 581,067 | 79,075 | 13.6 | % | 0.2 | % | 0.6 | % | 12.8 | % | |||||||||||||
CAG Diagnostics services and accessories | 67,476 | 59,617 | 7,859 | 13.2 | % | 0.3 | % | — | 12.9 | % | ||||||||||||||
CAG Diagnostics capital - instruments | 119,963 | 121,191 | (1,228 | ) | (1.0 | %) | 0.6 | % | — | (1.6 | %) | |||||||||||||
Veterinary software, services and diagnostic imaging systems | 131,713 | 120,236 | 11,477 | 9.5 | % | 0.2 | % | 0.5 | % | 8.9 | % | |||||||||||||
Net CAG revenue | $ | 1,703,377 | $ | 1,522,689 | $ | 180,688 | 11.9 | % | 0.3 | % | 0.2 | % | 11.4 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2017 | Percent of Revenue | 2016 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 1,703,377 | $ | 1,522,689 | $ | 180,688 | 11.9 | % | |||||||||||||
Cost of revenue | 766,579 | 702,367 | 64,212 | 9.1 | % | ||||||||||||||||
Gross profit | 936,798 | 55.0 | % | 820,322 | 53.9 | % | 116,476 | 14.2 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 312,497 | 18.3 | % | 277,377 | 18.2 | % | 35,120 | 12.7 | % | ||||||||||||
General and administrative | 180,907 | 10.6 | % | 168,637 | 11.1 | % | 12,270 | 7.3 | % | ||||||||||||
Research and development | 79,837 | 4.7 | % | 72,966 | 4.8 | % | 6,871 | 9.4 | % | ||||||||||||
Total operating expenses | 573,241 | 33.7 | % | 518,980 | 34.1 | % | 54,261 | 10.5 | % | ||||||||||||
Income from operations | $ | 363,557 | 21.3 | % | $ | 301,342 | 19.8 | % | $ | 62,215 | 20.6 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2017 | Percent of Revenue | 2016 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 114,395 | $ | 103,579 | $ | 10,816 | 10.4 | % | |||||||||||||
Cost of revenue | 35,030 | 31,701 | 3,329 | 10.5 | % | ||||||||||||||||
Gross profit | 79,365 | 69.4 | % | 71,878 | 69.4 | % | 7,487 | 10.4 | % | ||||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 14,482 | 12.7 | % | 13,201 | 12.7 | % | 1,281 | 9.7 | % | ||||||||||||
General and administrative | 11,803 | 10.3 | % | 10,426 | 10.1 | % | 1,377 | 13.2 | % | ||||||||||||
Research and development | 2,464 | 2.2 | % | 2,549 | 2.5 | % | (85 | ) | (3.3 | %) | |||||||||||
Total operating expenses | 28,749 | 25.1 | % | 26,176 | 25.3 | % | 2,573 | 9.8 | % | ||||||||||||
Income from operations | $ | 50,616 | 44.2 | % | $ | 45,702 | 44.1 | % | $ | 4,914 | 10.8 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2017 | Percent of Revenue | 2016 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 128,481 | $ | 126,491 | $ | 1,990 | 1.6 | % | |||||||||||||
Cost of revenue | 56,341 | 52,690 | 3,651 | 6.9 | % | ||||||||||||||||
Gross profit | 72,140 | 56.1 | % | 73,801 | 58.3 | % | (1,661 | ) | (2.3 | %) | |||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 24,801 | 19.3 | % | 22,723 | 18.0 | % | 2,078 | 9.1 | % | ||||||||||||
General and administrative | 18,723 | 14.6 | % | 20,193 | 16.0 | % | (1,470 | ) | (7.3 | %) | |||||||||||
Research and development | 12,152 | 9.5 | % | 11,971 | 9.5 | % | 181 | 1.5 | % | ||||||||||||
Total operating expenses | 55,676 | 43.3 | % | 54,887 | 43.4 | % | 789 | 1.4 | % | ||||||||||||
Income from operations | $ | 16,464 | 12.8 | % | $ | 18,914 | 15.0 | % | $ | (2,450 | ) | (13.0 | %) |
| For the Years Ended December 31, | Change | |||||||||||||||||||
Results of Operations (dollars in thousands) | 2017 | Percent of Revenue | 2016 | Percent of Revenue | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||||
Revenues | $ | 22,805 | $ | 22,664 | $ | 141 | 0.6 | % | |||||||||||||
Cost of revenue | 11,417 | 11,103 | 314 | 2.8 | % | ||||||||||||||||
Gross profit | 11,388 | 49.9 | % | 11,561 | 51.0 | % | (173 | ) | (1.5 | %) | |||||||||||
| |||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Sales and marketing | 2,093 | 9.2 | % | 2,870 | 12.7 | % | (777 | ) | (27.1 | %) | |||||||||||
General and administrative | 3,359 | 14.7 | % | 4,908 | 21.7 | % | (1,549 | ) | (31.6 | %) | |||||||||||
Research and development | 1,099 | 4.8 | % | 2,899 | 12.8 | % | (1,800 | ) | (62.1 | %) | |||||||||||
Total operating expenses | 6,551 | 28.7 | % | 10,677 | 47.1 | % | (4,126 | ) | (38.6 | %) | |||||||||||
Income from operations | $ | 4,837 | 21.2 | % | $ | 884 | 3.9 | % | $ | 3,953 | 447.2 | % |
| For the Years Ended December 31, | Change | |||||||||||||||||
Results of Operations (dollars in thousands) | 2017 | 2016 | Amount | Percentage | |||||||||||||||
| |||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | N/A | ||||||||||||
Cost of revenue | 2,309 | 2,126 | 183 | 8.6 | % | ||||||||||||||
Gross profit | (2,309 | ) | (2,126 | ) | (183 | ) | 8.6 | % | |||||||||||
| |||||||||||||||||||
Operating Expenses: | |||||||||||||||||||
Sales and marketing | 421 | 887 | (466 | ) | (52.5 | %) | |||||||||||||
General and administrative | 6,086 | 2,853 | 3,233 | 113.3 | % | ||||||||||||||
Research and development | 13,630 | 10,737 | 2,893 | 26.9 | % | ||||||||||||||
Total operating expenses | 20,137 | 14,477 | 5,660 | 39.1 | % | ||||||||||||||
Income from operations | $ | (22,446 | ) | $ | (16,603 | ) | $ | (5,843 | ) | 35.2 | % |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||
Cash, cash equivalents and marketable securities (dollars in millions) | 2018 | 2017 | 2016 | |||||||||||||||||
Cash and cash equivalents (dollars in millions) | 2019 | 2018 | ||||||||||||||||||
U.S. | $ | 2.0 | $ | 5.9 | $ | 4.8 | $ | 1.1 | $ | 2.0 | ||||||||||
Foreign | 121.8 | 466.0 | 387.0 | 89.2 | 121.8 | |||||||||||||||
Total | $ | 123.8 | $ | 471.9 | $ | 391.8 | $ | 90.3 | $ | 123.8 | ||||||||||
Total cash, cash equivalents and marketable securities held in U.S. dollars by our foreign subsidiaries | $ | 11.1 | $ | 334.3 | $ | 285.8 | $ | 6.5 | $ | 11.1 | ||||||||||
Percentage of total cash, cash equivalents and marketable securities held in U.S. dollars by our foreign subsidiaries | 9.0 | % | 70.8 | % | 72.9 | % | ||||||||||||||
Percentage of total cash and cash equivalents held in U.S. dollars by our foreign subsidiaries | 7.2 | % | 9.0 | % |
Marketable securities (dollars in millions) | For the Year Ended December 31, 2017 | Percent of Total | |||||
| |||||||
Corporate bonds | $ | 140.9 | 49.6 | % | |||
Certificates of deposit | 58.5 | 20.6 | % | ||||
Commercial paper | 29.2 | 10.3 | % | ||||
Asset backed securities | 22.2 | 7.8 | % | ||||
U.S. government bonds | 15.6 | 5.5 | % | ||||
Agency bonds | 10.9 | 3.8 | % | ||||
Treasury bills | 7.0 | 2.5 | % | ||||
Total marketable securities | $ | 284.3 |
| For the Three Months Ended | ||||||||||||||
| December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||
| |||||||||||||||
Days sales outstanding(1) | 42.6 | 44.3 | 41.2 | 42.0 | 41.7 | ||||||||||
Inventory turns(2) | 2.3 | 2.1 | 2.2 | 2.0 | 2.2 |
| For the Three Months Ended | ||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||
| |||||||||||||||
Days sales outstanding (1) | 40.5 | 41.8 | 41.7 | 42.0 | 42.6 | ||||||||||
Inventory turns (2) | 2.2 | 2.0 | 2.1 | 2.0 | 2.3 |
(1) | Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days. |
(2) | Inventory turns represent inventory-related cost of product revenue for the 12 months preceding each quarter-end divided by the average inventory |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||
(dollars in thousands) | 2018 | 2017 | 2016 | |||||||||||||||||||||
(in thousands) | 2019 | 2018 | Dollar Change | |||||||||||||||||||||
Net cash provided by operating activities | $ | 400,084 | $ | 373,276 | $ | 338,943 | $ | 459,158 | $ | 400,084 | $ | 59,074 | ||||||||||||
Net cash provided (used) by investing activities | 138,602 | (138,688 | ) | (90,786 | ) | |||||||||||||||||||
Net cash (used) provided by investing activities | (205,528 | ) | 138,602 | (344,130 | ) | |||||||||||||||||||
Net cash used by financing activities | (597,799 | ) | (208,016 | ) | (222,196 | ) | (286,409 | ) | (597,799 | ) | 311,390 | |||||||||||||
Net effect of changes in exchange rates on cash | (4,768 | ) | 6,202 | (54 | ) | (689 | ) | (4,768 | ) | 4,079 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (63,881 | ) | $ | 32,774 | $ | 25,907 | |||||||||||||||||
Net change in cash and cash equivalents | $ | (33,468 | ) | $ | (63,881 | ) | $ | 30,413 |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||
(dollars in thousands) | 2018 | 2017 | 2016 | |||||||||||||||||||||
(in thousands) | 2019 | 2018 | Dollar Change | |||||||||||||||||||||
Accounts receivable | $ | (18,401 | ) | $ | (24,918 | ) | $ | (22,554 | ) | $ | (22,472 | ) | $ | (18,401 | ) | $ | (4,071 | ) | ||||||
Inventories | (25,623 | ) | (19,062 | ) | 7,648 | (37,306 | ) | (25,623 | ) | (11,683 | ) | |||||||||||||
Accounts payable | (166 | ) | 1,391 | 2,117 | 1,957 | (166 | ) | 2,123 | ||||||||||||||||
Deferred revenue | (7,719 | ) | 3,551 | 7,672 | (12,360 | ) | (7,719 | ) | (4,641 | ) | ||||||||||||||
Other assets and liabilities | (39,731 | ) | 47,418 | 12,491 | (34,788 | ) | (39,731 | ) | 4,943 | |||||||||||||||
Tax benefit from share-based compensation arrangements | — | — | (14,702 | ) | ||||||||||||||||||||
Total change in cash due to changes in operating assets and liabilities and the tax benefit from share-based compensation arrangements | $ | (91,640 | ) | $ | 8,380 | $ | (7,328 | ) | ||||||||||||||||
Total change in cash due to changes in operating assets and liabilities | $ | (104,969 | ) | $ | (91,640 | ) | $ | (13,329 | ) |
December | ||||||
(in thousands) | Twelve months ended | |||||
Trailing 12 Months Adjusted EBITDA: | 2018 | December 31, 2019 | ||||
Net income attributable to stockholders | $ | 377,031 | $ | 427,720 | ||
Interest expense | 34,744 | 31,055 | ||||
Provision for income taxes | 80,695 | 94,426 | ||||
Depreciation and amortization | 83,178 | 88,011 | ||||
Share-based compensation expense | 25,157 | 39,278 | ||||
Extraordinary and other non-recurring non-cash charges | 2,629 | 968 | ||||
Adjusted EBITDA | $ | 603,434 | $ | 681,458 | ||
December | ||||||
(in thousands) | Twelve months ended | |||||
Debt to Adjusted EBITDA Ratio: | 2018 | December 31, 2019 | ||||
Line of credit | $ | 398,937 | $ | 288,765 | ||
Long-term debt | 601,348 | 698,910 | ||||
Total debt | 1,000,285 | 987,675 | ||||
Acquisition-related consideration payable | 5,037 | 3,000 | ||||
Capitalized leases | 269 | |||||
U.S. GAAP change - deferred financing costs | 429 | |||||
Financing leases | 103 | |||||
Deferred financing costs | 512 | |||||
Gross debt | $ | 1,006,020 | $ | 991,290 | ||
Gross debt to Adjusted EBITDA ratio | 1.67 | 1.45 | ||||
Cash and cash equivalents | $ | (123,794 | ) | $ | (90,326 | ) |
Net debt | $ | 882,226 | $ | 900,964 | ||
Net debt to Adjusted EBITDA ratio | 1.46 | 1.32 |
Contractual obligations (in thousands) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||||||||||
(in thousands) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||||||||||
Long-term debt obligations(1) | $ | 721,730 | $ | 20,299 | $ | 89,907 | $ | 182,810 | $ | 428,714 | $ | 837,602 | $ | 24,447 | $ | 169,512 | $ | 186,569 | $ | 457,074 | ||||||||||||||||||||
Credit facility (2) | 288,765 | 288,765 | — | — | — | |||||||||||||||||||||||||||||||||||
Operating leases | 106,819 | 19,351 | 31,637 | 19,317 | 36,514 | 99,025 | 18,016 | 31,392 | 16,015 | 33,602 | ||||||||||||||||||||||||||||||
Purchase obligations(2) | 284,314 | 247,407 | 29,151 | 1,536 | 6,220 | |||||||||||||||||||||||||||||||||||
Purchase obligations (3) | 298,370 | 224,394 | 48,135 | 22,412 | 3,429 | |||||||||||||||||||||||||||||||||||
Minimum royalty payments | 2,114 | 993 | 451 | 167 | 503 | 1,320 | 421 | 317 | 157 | 425 | ||||||||||||||||||||||||||||||
Total contractual cash obligations | $ | 1,114,977 | $ | 288,050 | $ | 151,146 | $ | 203,830 | $ | 471,951 | $ | 1,525,082 | $ | 556,043 | $ | 249,356 | $ | 225,153 | $ | 494,530 |
(1) | Long-term debt amounts include interest payments associated with long-term debt. |
(2) | Credit facility amounts do not include interest payments. |
(3) | Purchase obligations include agreements and purchase orders to purchase goods or services that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities, pricing, and approximate timing of purchase transactions. |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||
(dollars in thousands) | 2018 | 2017 | 2016 | |||||||||||||||||||||
(in thousands, except per share amounts) | 2019 | 2018 | 2017 | |||||||||||||||||||||
Revenue impact | $ | 13,623 | $ | 6,615 | $ | (14,105 | ) | $ | (38,624 | ) | $ | 13,623 | $ | 6,615 | ||||||||||
Operating profit impact, excluding hedge activity | $ | 2,260 | $ | 2,542 | $ | (6,921 | ) | $ | (16,947 | ) | $ | 2,260 | $ | 2,542 | ||||||||||
Hedge gains - prior year | (27 | ) | (3,620 | ) | (20,879 | ) | ||||||||||||||||||
Hedge (loss) gain - current year | (976 | ) | 27 | 3,620 | ||||||||||||||||||||
Hedge losses (gains) - prior year | 976 | (27 | ) | (3,620 | ) | |||||||||||||||||||
Hedge gains (losses) - current year | 10,628 | (976 | ) | 27 | ||||||||||||||||||||
Hedging activity impact | (1,003 | ) | (3,593 | ) | (17,259 | ) | 11,604 | (1,003 | ) | (3,593 | ) | |||||||||||||
Operating profit impact, including hedge activity | $ | 1,257 | $ | (1,051 | ) | $ | (24,180 | ) | $ | (5,343 | ) | $ | 1,257 | $ | (1,051 | ) | ||||||||
Diluted earnings per share impact, including hedge activity | $ | 0.01 | $ | (0.01 | ) | $ | (0.20 | ) | $ | (0.05 | ) | $ | 0.01 | $ | (0.01 | ) |
The following documents are filed as part of this Form 10-K: | ||
| ||
(a) (1) and (a) (2) | The financial statements set forth in the Index to Consolidated Financial Statements and the Consolidated Financial Statement Schedule are filed as a part of this Annual Report on Form 10-K commencing on page F-1. | |
| ||
(a)(3) and (b) | The exhibits listed in the accompanying Exhibit Index are filed as part of this Annual Report on Form 10-K and either filed herewith or incorporated by reference herein, as applicable. |
| |
| Page No. |
| |
| |
| |
| |
| |
| |
December 31, 2018 | December 31, 2017 | December 31, 2019 | December 31, 2018 | |||||||||||
ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||
Cash and cash equivalents | $ | 123,794 | $ | 187,675 | $ | 90,326 | $ | 123,794 | ||||||
Marketable securities | — | 284,255 | ||||||||||||
Accounts receivable, net of reserves of $4,702 in 2018 and $4,576 in 2017 | 248,855 | 234,597 | ||||||||||||
Accounts receivable, net of reserves of $3,581 in 2019 and $4,702 in 2018 | 269,312 | 248,855 | ||||||||||||
Inventories | 173,303 | 164,318 | 195,019 | 173,303 | ||||||||||
Other current assets | 108,220 | 101,140 | 124,982 | 108,220 | ||||||||||
Total current assets | 654,172 | 971,985 | 679,639 | 654,172 | ||||||||||
Long-Term Assets: | ||||||||||||||
Property and equipment, net | 437,270 | 379,096 | 533,845 | 437,270 | ||||||||||
Operating lease right-of-use assets (Notes 2 and 7) | 80,607 | — | ||||||||||||
Goodwill | 214,489 | 199,873 | 239,724 | 214,489 | ||||||||||
Intangible assets, net | 41,825 | 43,846 | 58,468 | 41,825 | ||||||||||
Other long-term assets | 189,593 | 118,616 | 240,192 | 189,593 | ||||||||||
Total long-term assets | 883,177 | 741,431 | 1,152,836 | 883,177 | ||||||||||
TOTAL ASSETS | $ | 1,537,349 | $ | 1,713,416 | $ | 1,832,475 | $ | 1,537,349 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||
Current Liabilities: | ||||||||||||||
Accounts payable | $ | 69,534 | $ | 66,968 | $ | 72,172 | $ | 69,534 | ||||||
Accrued liabilities | 260,683 | 253,418 | 322,938 | 260,683 | ||||||||||
Line of credit | 398,937 | 655,000 | 288,765 | 398,937 | ||||||||||
Current portion of deferred revenue | 41,290 | 29,181 | 41,462 | 41,290 | ||||||||||
Total current liabilities | 770,444 | 1,004,567 | 725,337 | 770,444 | ||||||||||
Long-Term Liabilities: | ||||||||||||||
Deferred income tax liabilities | 29,267 | 25,353 | 33,024 | 29,267 | ||||||||||
Long-term debt | 601,348 | 606,075 | 698,910 | 601,348 | ||||||||||
Long-term deferred revenue, net of current portion | 60,697 | 35,545 | 48,743 | 60,697 | ||||||||||
Long-term operating lease liabilities (Notes 2 and 7) | 67,472 | — | ||||||||||||
Other long-term liabilities | 84,826 | 95,718 | 81,164 | 84,826 | ||||||||||
Total long-term liabilities | 776,138 | 762,691 | 929,313 | 776,138 | ||||||||||
Total liabilities | 1,546,582 | 1,767,258 | 1,654,650 | 1,546,582 | ||||||||||
Commitments and Contingencies (Note 15) | ||||||||||||||
Stockholders’ Equity (Deficit): | ||||||||||||||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 105,087 shares in 2018 and 104,275 shares in 2017; Outstanding: 86,100 shares in 2018 and 87,104 shares in 2017 | 10,509 | 10,428 | ||||||||||||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 105,711 shares in 2019 and 105,087 shares in 2018; Outstanding: 85,471 shares in 2019 and 86,100 shares in 2018 | 10,571 | 10,509 | ||||||||||||
Additional paid-in capital | 1,138,216 | 1,073,931 | 1,213,517 | 1,138,216 | ||||||||||
Deferred stock units: Outstanding: 162 units in 2018 and 229 units in 2017 | 4,524 | 5,988 | ||||||||||||
Deferred stock units: Outstanding: 143 units in 2019 and 162 units in 2018 | 4,462 | 4,524 | ||||||||||||
Retained earnings | 1,167,928 | 803,545 | 1,595,648 | 1,167,928 | ||||||||||
Accumulated other comprehensive loss | (41,791 | ) | (36,470 | ) | (46,182 | ) | (41,791 | ) | ||||||
Treasury stock, at cost: 18,988 shares in 2018 and 17,171 shares in 2017 | (2,288,899 | ) | (1,911,528 | ) | ||||||||||
Total IDEXX Laboratories, Inc. stockholders’ deficit | (9,513 | ) | (54,106 | ) | ||||||||||
Treasury stock, at cost: 20,240 shares in 2019 and 18,988 shares in 2018 | (2,600,543 | ) | (2,288,899 | ) | ||||||||||
Total IDEXX Laboratories, Inc. stockholders’ equity (deficit) | 177,473 | (9,513 | ) | |||||||||||
Noncontrolling interest | 280 | 264 | 352 | 280 | ||||||||||
Total stockholders’ equity (deficit) | (9,233 | ) | (53,842 | ) | 177,825 | (9,233 | ) | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 1,537,349 | $ | 1,713,416 | $ | 1,832,475 | $ | 1,537,349 | ||||||
The accompanying notes are an integral part of these consolidated financial statements. |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Product revenue | $ | 1,322,683 | $ | 1,176,115 | $ | 1,070,973 | $ | 1,423,144 | $ | 1,322,683 | $ | 1,176,115 | ||||||||||||
Service revenue | 890,559 | 792,943 | 704,450 | 983,764 | 890,559 | 792,943 | ||||||||||||||||||
Total revenue | 2,213,242 | 1,969,058 | 1,775,423 | 2,406,908 | 2,213,242 | 1,969,058 | ||||||||||||||||||
Cost of Revenue: | ||||||||||||||||||||||||
Cost of product revenue | 494,889 | 446,449 | 416,810 | 506,202 | 494,889 | 446,449 | ||||||||||||||||||
Cost of service revenue | 476,811 | 425,227 | 383,177 | 535,157 | 476,811 | 425,227 | ||||||||||||||||||
Total cost of revenue | 971,700 | 871,676 | 799,987 | 1,041,359 | 971,700 | 871,676 | ||||||||||||||||||
Gross profit | 1,241,542 | 1,097,382 | 975,436 | 1,365,549 | 1,241,542 | 1,097,382 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Sales and marketing | 387,406 | 354,294 | 317,058 | 418,193 | 387,406 | 354,294 | ||||||||||||||||||
General and administrative | 244,938 | 220,878 | 207,017 | 261,317 | 244,938 | 220,878 | ||||||||||||||||||
Research and development | 117,863 | 109,182 | 101,122 | 133,193 | 117,863 | 109,182 | ||||||||||||||||||
Income from operations | 491,335 | 413,028 | 350,239 | 552,846 | 491,335 | 413,028 | ||||||||||||||||||
Interest expense | (34,744 | ) | (37,225 | ) | (32,049 | ) | (31,055 | ) | (34,744 | ) | (37,225 | ) | ||||||||||||
Interest income | 1,151 | 5,254 | 3,656 | 427 | 1,151 | 5,254 | ||||||||||||||||||
Income before provision for income taxes | 457,742 | 381,057 | 321,846 | 522,218 | 457,742 | 381,057 | ||||||||||||||||||
Provision for income taxes | 80,695 | 117,788 | 99,792 | 94,426 | 80,695 | 117,788 | ||||||||||||||||||
Net income | 377,047 | 263,269 | 222,054 | 427,792 | 377,047 | 263,269 | ||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 16 | 125 | 9 | 72 | 16 | 125 | ||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 377,031 | $ | 263,144 | $ | 222,045 | $ | 427,720 | $ | 377,031 | $ | 263,144 | ||||||||||||
Earnings per Share: | ||||||||||||||||||||||||
Basic | $ | 4.34 | $ | 3.00 | $ | 2.47 | $ | 4.97 | $ | 4.34 | $ | 3.00 | ||||||||||||
Diluted | $ | 4.26 | $ | 2.94 | $ | 2.44 | $ | 4.89 | $ | 4.26 | $ | 2.94 | ||||||||||||
Weighted Average Shares Outstanding: | ||||||||||||||||||||||||
Basic | 86,864 | 87,769 | 89,732 | 86,115 | 86,864 | 87,769 | ||||||||||||||||||
Diluted | 88,470 | 89,567 | 90,884 | 87,542 | 88,470 | 89,567 | ||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||
Net income | $ | 377,047 | $ | 263,269 | $ | 222,054 | $ | 427,792 | $ | 377,047 | $ | 263,269 | ||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||
Foreign currency translation adjustments | (21,911 | ) | 25,107 | (5,874 | ) | (1,590 | ) | (21,911 | ) | 25,107 | ||||||||||||||
Unrealized gain (loss) on net investment hedge | 3,917 | (8,347 | ) | 2,142 | ||||||||||||||||||||
Unrealized gain (loss) on investments, net of tax expense (benefit) of ($40) in 2018, $0 in 2017 and $113 in 2016 | (135 | ) | (42 | ) | 245 | |||||||||||||||||||
Unrealized gain (loss) on Euro-denominated notes, net of tax expense (benefit) of $564 in 2019, $1,148 in 2018 and ($4,555) in 2017 | 1,790 | 3,917 | (8,347 | ) | ||||||||||||||||||||
Unrealized gain (loss) on investments, net of tax expense (benefit) of $84 in 2019, ($40) in 2018 and $0 in 2017 | 267 | (135 | ) | (42 | ) | |||||||||||||||||||
Unrealized gain (loss) on derivative instruments: | ||||||||||||||||||||||||
Unrealized gain (loss), net of tax expense (benefit) of $2,852 in 2018, ($5,304) in 2017 and $2,174 in 2016 | 12,019 | (10,332 | ) | 4,950 | ||||||||||||||||||||
Less: reclassification adjustment for (gains) losses included in net income, net of tax (expense) benefit of $187 in 2018, $224 in 2017 and ($949) in 2016 | 789 | 197 | (2,251 | ) | ||||||||||||||||||||
Unrealized gain (loss) on derivative instruments | 12,808 | (10,135 | ) | 2,699 | ||||||||||||||||||||
Other comprehensive income gain (loss), net of tax | (5,321 | ) | 6,583 | (788 | ) | |||||||||||||||||||
Unrealized gain (loss) on foreign currency exchange contracts, net of tax expense (benefit) of $362 in 2019, $2,529 in 2018 and ($5,304) in 2017 | 1,196 | 10,659 | (10,332 | ) | ||||||||||||||||||||
Unrealized gain on cross currency swaps, net of tax expense of $664 in 2019, $323 in 2018 and $0 in 2017 | 2,107 | 1,360 | — | |||||||||||||||||||||
Less: reclassification adjustment for (gains) losses included in net income, net of tax (expense) benefit of ($2,467) in 2019, $187 in 2018 and $224 in 2017 | (8,161 | ) | 789 | 197 | ||||||||||||||||||||
Unrealized (loss) gain on derivative instruments | (4,858 | ) | 12,808 | (10,135 | ) | |||||||||||||||||||
Other comprehensive (loss) gain, net of tax | (4,391 | ) | (5,321 | ) | 6,583 | |||||||||||||||||||
Comprehensive income | 371,726 | 269,852 | 221,266 | 423,401 | 371,726 | 269,852 | ||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interest | 16 | 125 | 9 | 72 | 16 | 125 | ||||||||||||||||||
Comprehensive income attributable to IDEXX Laboratories, Inc. | $ | 371,710 | $ | 269,727 | $ | 221,257 | $ | 423,329 | $ | 371,710 | $ | 269,727 | ||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | $0.10 Par Value | Additional Paid-in Capital | Deferred Stock Units | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | Number of Shares | $0.10 Par Value | Additional Paid-in Capital | Deferred Stock Units | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance January 1, 2016 | 102,237 | $ | 10,258 | $ | 940,534 | $ | 5,409 | $ | 318,356 | $ | (42,265 | ) | $ | (1,316,417 | ) | $ | 130 | $ | (83,995 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance January 1, 2017 | 103,341 | $ | 10,334 | $ | 1,011,895 | $ | 5,514 | $ | 540,401 | $ | (43,053 | ) | $ | (1,633,443 | ) | $ | 139 | $ | (108,213 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 263,144 | — | — | 125 | 263,269 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 6,583 | — | — | 6,583 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (278,085 | ) | — | (278,085 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans, net | 934 | 94 | 39,005 | — | — | — | — | — | 39,099 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred stock units activity | — | — | (350 | ) | 338 | — | — | — | — | (12 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 23,381 | 136 | — | — | — | — | 23,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2017 | 104,275 | $ | 10,428 | $ | 1,073,931 | $ | 5,988 | $ | 803,545 | $ | (36,470 | ) | $ | (1,911,528 | ) | $ | 264 | $ | (53,842 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes from adoptions of ASU 2014-09 and ASU 2016-16 | — | — | — | — | (12,648 | ) | — | — | — | (12,648 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 222,045 | — | — | 9 | 222,054 | — | — | — | — | 377,031 | — | — | 16 | 377,047 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (788 | ) | — | — | (788 | ) | — | — | — | — | — | (5,321 | ) | — | — | (5,321 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (317,026 | ) | — | (317,026 | ) | — | — | — | — | — | — | (377,371 | ) | — | (377,371 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans, including excess tax benefit | 1,104 | 76 | 51,904 | — | — | — | — | — | 51,980 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans, net | 812 | 81 | 39,756 | (2,092 | ) | — | — | — | — | 37,745 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred stock units activity | — | — | (343 | ) | 14 | — | — | — | — | (329 | ) | — | — | (385 | ) | 385 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 19,800 | 91 | — | — | — | — | 19,891 | — | — | 24,914 | 243 | — | — | — | — | 25,157 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2016 | 103,341 | $ | 10,334 | $ | 1,011,895 | $ | 5,514 | $ | 540,401 | $ | (43,053 | ) | $ | (1,633,443 | ) | $ | 139 | $ | (108,213 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 263,144 | — | — | 125 | 263,269 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 6,583 | — | — | 6,583 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (278,085 | ) | — | (278,085 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans | 934 | 94 | 39,005 | — | — | — | — | — | 39,099 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred stock units activity | — | — | (350 | ) | 338 | — | — | — | — | (12 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 23,381 | 136 | — | — | — | — | 23,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2017 | 104,275 | $ | 10,428 | $ | 1,073,931 | $ | 5,988 | $ | 803,545 | $ | (36,470 | ) | $ | (1,911,528 | ) | $ | 264 | $ | (53,842 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of accounting changes (Note 2) | — | — | — | — | (12,648 | ) | — | — | — | (12,648 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | 105,087 | $ | 10,509 | $ | 1,138,216 | $ | 4,524 | $ | 1,167,928 | $ | (41,791 | ) | $ | (2,288,899 | ) | $ | 280 | $ | (9,233 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 377,031 | — | — | 16 | 377,047 | — | — | — | — | 427,720 | — | — | 72 | 427,792 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | (5,321 | ) | — | — | (5,321 | ) | — | — | — | — | — | (4,391 | ) | — | — | (4,391 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock, net | — | — | — | — | — | — | (377,371 | ) | — | (377,371 | ) | — | — | — | — | — | — | (311,644 | ) | — | (311,644 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans | 812 | 81 | 39,756 | (2,092 | ) | — | — | — | — | 37,745 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under stock plans, net | 624 | 62 | 36,551 | (590 | ) | — | — | — | — | 36,023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred stock units activity | — | — | (385 | ) | 385 | — | — | — | — | — | — | — | (324 | ) | 324 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation cost | — | — | 24,914 | 243 | — | — | — | — | 25,157 | — | — | 39,074 | 204 | — | — | — | — | 39,278 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | 105,087 | $ | 10,509 | $ | 1,138,216 | $ | 4,524 | $ | 1,167,928 | $ | (41,791 | ) | $ | (2,288,899 | ) | $ | 280 | $ | (9,233 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | 105,711 | $ | 10,571 | $ | 1,213,517 | $ | 4,462 | $ | 1,595,648 | $ | (46,182 | ) | $ | (2,600,543 | ) | $ | 352 | $ | 177,825 | |||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||||
Net income | $ | 377,047 | $ | 263,269 | $ | 222,054 | $ | 427,792 | $ | 377,047 | $ | 263,269 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 83,178 | 83,140 | 78,218 | 88,011 | 83,178 | 83,140 | ||||||||||||||||||
Amortization on marketable securities, net | (5 | ) | 38 | 843 | ||||||||||||||||||||
Impairment charge | 2,629 | — | 2,228 | 968 | 2,629 | — | ||||||||||||||||||
Provision for uncollectible accounts | 1,609 | 1,881 | 1,170 | 662 | 1,609 | 1,881 | ||||||||||||||||||
Benefit of (provision for) deferred income taxes | 1,209 | (7,918 | ) | 20,881 | 6,162 | 1,209 | (7,918 | ) | ||||||||||||||||
Share-based compensation expense | 25,157 | 23,517 | 19,891 | 39,278 | 25,157 | 23,517 | ||||||||||||||||||
Other | 900 | 969 | 986 | 1,254 | 895 | 1,007 | ||||||||||||||||||
Tax benefit from share-based compensation arrangements | — | — | (14,702 | ) | ||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable | (18,401 | ) | (24,918 | ) | (22,554 | ) | (22,472 | ) | (18,401 | ) | (24,918 | ) | ||||||||||||
Inventories | (25,623 | ) | (19,062 | ) | 7,648 | (37,306 | ) | (25,623 | ) | (19,062 | ) | |||||||||||||
Accounts payable | (166 | ) | 1,391 | 2,117 | 1,957 | (166 | ) | 1,391 | ||||||||||||||||
Deferred revenue | (7,719 | ) | 3,551 | 7,672 | (12,360 | ) | (7,719 | ) | 3,551 | |||||||||||||||
Other assets and liabilities | (39,731 | ) | 47,418 | 12,491 | (34,788 | ) | (39,731 | ) | 47,418 | |||||||||||||||
Net cash provided by operating activities | 400,084 | 373,276 | 338,943 | 459,158 | 400,084 | 373,276 | ||||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||||
Purchases of property and equipment | (115,751 | ) | (74,384 | ) | (64,787 | ) | (154,969 | ) | (115,751 | ) | (74,384 | ) | ||||||||||||
Purchases of marketable securities | (87 | ) | (334,164 | ) | (227,894 | ) | — | (87 | ) | (334,164 | ) | |||||||||||||
Proceeds from the sale and maturities of marketable securities | 284,125 | 286,759 | 203,859 | — | 284,125 | 286,759 | ||||||||||||||||||
Acquisitions of intangible assets and equity investment | (7,185 | ) | (2,320 | ) | — | (255 | ) | (7,185 | ) | (2,320 | ) | |||||||||||||
Acquisitions of businesses, net of cash acquired | (22,500 | ) | (14,579 | ) | (1,964 | ) | ||||||||||||||||||
Net cash provided (used) by investing activities | 138,602 | (138,688 | ) | (90,786 | ) | |||||||||||||||||||
Acquisitions of businesses | (50,304 | ) | (22,500 | ) | (14,579 | ) | ||||||||||||||||||
Net cash (used) provided by investing activities | (205,528 | ) | 138,602 | (138,688 | ) | |||||||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||||
(Repayment) borrowings on revolving credit facilities, net | (256,040 | ) | 44,000 | 38,000 | (110,275 | ) | (256,040 | ) | 44,000 | |||||||||||||||
Debt issue costs | — | — | (56 | ) | ||||||||||||||||||||
Repurchases of common stock | (369,319 | ) | (282,565 | ) | (304,086 | ) | ||||||||||||||||||
Issuance of senior notes | 100,000 | — | — | |||||||||||||||||||||
Debt issuance costs | (154 | ) | — | — | ||||||||||||||||||||
Repurchases of common stock, net | (301,658 | ) | (369,319 | ) | (282,565 | ) | ||||||||||||||||||
Proceeds from exercises of stock options and employee stock purchase plans | 38,201 | 38,622 | 38,344 | 36,106 | 38,201 | 38,622 | ||||||||||||||||||
Payment of acquisition-related contingent consideration | (1,266 | ) | — | (4,728 | ) | (2,375 | ) | (1,266 | ) | — | ||||||||||||||
Shares withheld for statutory tax withholding on restricted stock (Note 2) | (9,375 | ) | (8,073 | ) | (4,372 | ) | ||||||||||||||||||
Tax benefit from share-based compensation arrangements | — | — | 14,702 | |||||||||||||||||||||
Shares withheld for statutory tax withholding on restricted stock | (8,053 | ) | (9,375 | ) | (8,073 | ) | ||||||||||||||||||
Net cash used by financing activities | (597,799 | ) | (208,016 | ) | (222,196 | ) | (286,409 | ) | (597,799 | ) | (208,016 | ) | ||||||||||||
Net effect of changes in exchange rates on cash | (4,768 | ) | 6,202 | (54 | ) | (689 | ) | (4,768 | ) | 6,202 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (63,881 | ) | 32,774 | 25,907 | ||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (33,468 | ) | (63,881 | ) | 32,774 | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 187,675 | 154,901 | 128,994 | 123,794 | 187,675 | 154,901 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 123,794 | $ | 187,675 | $ | 154,901 | $ | 90,326 | $ | 123,794 | $ | 187,675 | ||||||||||||
The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. | The accompanying notes are an integral part of these consolidated financial statements. |
| Consolidated Balance Sheet | ||||||||||
| |||||||||||
| Previous U.S. GAAP December 31, 2017 (Reported) | New U.S. GAAP January 1, 2018 | Attributed to the New Revenue Standard | ||||||||
| |||||||||||
ASSETS | |||||||||||
Cash, cash equivalents and marketable securities | $ | 471,930 | $ | 471,930 | $ | — | |||||
Accounts receivable | 234,597 | 237,281 | 2,684 | ||||||||
Inventories | 164,318 | 163,184 | (1,134 | ) | |||||||
Property and equipment, net | 379,096 | 379,096 | — | ||||||||
Goodwill and intangible assets, net | 243,719 | 243,719 | — | ||||||||
Other assets | 219,756 | 246,481 | 26,725 | ||||||||
TOTAL ASSETS | $ | 1,713,416 | $ | 1,741,691 | $ | 28,275 | |||||
| |||||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||
Accounts payable | $ | 66,968 | $ | 66,968 | $ | — | |||||
Accrued liabilities | 253,418 | 254,381 | 963 | ||||||||
Deferred income tax liabilities | 25,353 | 25,087 | (266 | ) | |||||||
Line of credit and long-term debt | 1,261,075 | 1,261,075 | — | ||||||||
Deferred revenue | 64,726 | 110,158 | 45,432 | ||||||||
Other long-term liabilities | 95,718 | 82,840 | (12,878 | ) | |||||||
Total liabilities | 1,767,258 | 1,800,509 | 33,251 | ||||||||
| |||||||||||
Stockholders’ Deficit: | |||||||||||
Retained earnings | 803,545 | 798,569 | (4,976 | ) | |||||||
All other stockholders' deficit and noncontrolling interest | (857,387 | ) | (857,387 | ) | — | ||||||
Total stockholders’ deficit | (53,842 | ) | (58,818 | ) | (4,976 | ) | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 1,713,416 | $ | 1,741,691 | $ | 28,275 |
| Consolidated Balance Sheet | ||||||||||
| As of December 31, 2018 | ||||||||||
| |||||||||||
| Previous U.S. GAAP | New U.S. GAAP (As Reported) | Attributed to the New Revenue Standard | ||||||||
| |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 123,794 | $ | 123,794 | $ | — | |||||
Accounts receivable | 245,189 | 248,855 | 3,666 | ||||||||
Inventories | 175,540 | 173,303 | (2,237 | ) | |||||||
Property and equipment, net | 437,270 | 437,270 | — | ||||||||
Goodwill and intangible assets, net | 256,314 | 256,314 | — | ||||||||
Other assets | 253,339 | 297,813 | 44,474 | ||||||||
TOTAL ASSETS | $ | 1,491,446 | $ | 1,537,349 | $ | 45,903 | |||||
| |||||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||
Accounts payable | $ | 69,534 | $ | 69,534 | $ | — | |||||
Accrued liabilities | 252,723 | 260,683 | 7,960 | ||||||||
Deferred income tax liabilities | 34,424 | 29,267 | (5,157 | ) | |||||||
Line of credit and long-term debt | 1,000,285 | 1,000,285 | — | ||||||||
Deferred revenue | 63,270 | 101,987 | 38,717 | ||||||||
Other long-term liabilities | 93,643 | 84,826 | (8,817 | ) | |||||||
Total liabilities | 1,513,879 | 1,546,582 | 32,703 | ||||||||
| |||||||||||
Stockholders’ Deficit: | |||||||||||
Retained earnings | 1,154,778 | 1,167,928 | 13,150 | ||||||||
Accumulated other comprehensive (loss) income | (41,841 | ) | (41,791 | ) | 50 | ||||||
All other stockholders' deficit and noncontrolling interest | (1,135,370 | ) | (1,135,370 | ) | — | ||||||
Total stockholders’ deficit | (22,433 | ) | (9,233 | ) | 13,200 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 1,491,446 | $ | 1,537,349 | $ | 45,903 |
| Consolidated Statement of Income | ||||||||||
| For the Year Ended December 31, 2018 | ||||||||||
| |||||||||||
| Previous U.S. GAAP | New U.S. GAAP (As Reported) | Attributed to the New Revenue Standard | ||||||||
| |||||||||||
Total revenue | $ | 2,154,902 | $ | 2,213,242 | $ | 58,340 | |||||
Total cost of revenue | 936,302 | 971,700 | 35,398 | ||||||||
Gross profit | 1,218,600 | 1,241,542 | 22,942 | ||||||||
| |||||||||||
Total operating expense | 752,268 | 750,207 | (2,061 | ) | |||||||
Income from operations | 466,332 | 491,335 | 25,003 | ||||||||
Interest expense | (34,744 | ) | (34,744 | ) | — | ||||||
Interest income | 2,198 | 1,151 | (1,047 | ) | |||||||
Income before provision for income taxes | 433,786 | 457,742 | 23,956 | ||||||||
Provision for income taxes | 74,865 | 80,695 | 5,830 | ||||||||
Net income | $ | 358,921 | $ | 377,047 | $ | 18,126 | |||||
| Condensed Consolidated Statement of Cash Flows | ||||||||||
| For the Year Ended December 31, 2018 | ||||||||||
| |||||||||||
| Previous U.S. GAAP | New U.S. GAAP (As Reported) | Attributed to the New Revenue Standard | ||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 358,921 | $ | 377,047 | $ | 18,126 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Benefit of deferred income taxes | 3,482 | 1,209 | (2,273 | ) | |||||||
All other adjustments to reconcile net income to net cash provided by operating activities | 113,468 | 113,468 | — | ||||||||
Changes in assets and liabilities, net | (75,787 | ) | (91,640 | ) | (15,853 | ) | |||||
Net cash provided by operating activities | $ | 400,084 | $ | 400,084 | $ | — |
| Consolidated Balance Sheet | ||||||||||
(in thousands) | |||||||||||
| Previous U.S. GAAP December 31, 2018 (Reported) | New U.S. GAAP January 1, 2019 | Impact of the New Leasing Standard | ||||||||
| |||||||||||
ASSETS | |||||||||||
Other current assets | $ | 108,220 | $ | 107,228 | $ | (992 | ) | ||||
Total current assets | $ | 654,172 | $ | 653,180 | $ | (992 | ) | ||||
Operating lease right-of-use asset | $ | — | $ | 83,707 | $ | 83,707 | |||||
Total long-term assets | $ | 883,177 | $ | 966,884 | $ | 83,707 | |||||
TOTAL ASSETS | $ | 1,537,349 | $ | 1,620,064 | $ | 82,715 | |||||
LIABILITIES | |||||||||||
Accrued liabilities | $ | 260,683 | $ | 274,459 | $ | 13,776 | |||||
Total current liabilities | $ | 770,444 | $ | 784,220 | $ | 13,776 | |||||
Long-term operating lease liability | $ | — | $ | 68,939 | $ | 68,939 | |||||
Total long-term liabilities | $ | 776,138 | $ | 845,077 | $ | 68,939 | |||||
TOTAL LIABILITIES | $ | 1,546,582 | $ | 1,629,297 | $ | 82,715 |
1. | Identification of a contract or agreement with a customer |
2. | Identification of our performance obligations in the contract or agreement |
3. | Determination of the transaction price |
4. | Allocation of the transaction price to the performance obligations |
5. | Recognition of revenue when, or as, we satisfy a performance obligation |
For the Years Ended December 31, | ||||||||||||||||||||||||
(in thousands) | For the Years Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||
CAG segment revenue: | ||||||||||||||||||||||||
CAG Diagnostics recurring revenue: | $ | 1,654,530 | $ | 1,451,701 | $ | 1,281,262 | $ | 1,828,329 | $ | 1,654,530 | $ | 1,451,701 | ||||||||||||
IDEXX VetLab consumables | 617,237 | 518,774 | 451,456 | 693,360 | 617,237 | 518,774 | ||||||||||||||||||
Rapid assay products | 217,541 | 205,309 | 189,122 | 232,149 | 217,541 | 205,309 | ||||||||||||||||||
Reference laboratory diagnostic and consulting services | 746,794 | 660,142 | 581,067 | 822,497 | 746,794 | 660,142 | ||||||||||||||||||
CAG Diagnostics services and accessories | 72,958 | 67,476 | 59,617 | 80,323 | 72,958 | 67,476 | ||||||||||||||||||
CAG Diagnostics capital - instruments | 134,264 | 119,963 | 121,191 | 132,685 | 134,264 | 119,963 | ||||||||||||||||||
Veterinary software, services and diagnostic imaging systems | 146,634 | 131,713 | 120,236 | 158,169 | 146,634 | 131,713 | ||||||||||||||||||
CAG segment revenue | 1,935,428 | 1,703,377 | 1,522,689 | 2,119,183 | 1,935,428 | 1,703,377 | ||||||||||||||||||
Water segment revenue | 125,198 | 114,395 | 103,579 | 132,850 | 125,198 | 114,395 | ||||||||||||||||||
LPD segment revenue | 130,581 | 128,481 | 126,491 | 132,635 | 130,581 | 128,481 | ||||||||||||||||||
Other segment revenue | 22,035 | 22,805 | 22,664 | 22,240 | 22,035 | 22,805 | ||||||||||||||||||
Total revenue | $ | 2,213,242 | $ | 1,969,058 | $ | 1,775,423 | $ | 2,406,908 | $ | 2,213,242 | $ | 1,969,058 |
(in thousands) | For the Years Ended December 31, | |||||||||||
| 2019 | 2018 | 2017 | |||||||||
Americas | ||||||||||||
United States | $ | 1,495,516 | $ | 1,357,909 | $ | 1,203,547 | ||||||
Canada | 99,550 | 94,206 | 83,818 | |||||||||
Latin America | 56,515 | 50,969 | 46,893 | |||||||||
| 1,651,581 | 1,503,084 | 1,334,258 | |||||||||
| ||||||||||||
Europe, the Middle East and Africa | ||||||||||||
Germany | 104,081 | 100,459 | 88,328 | |||||||||
United Kingdom | 90,969 | 87,807 | 80,149 | |||||||||
France | 64,767 | 60,319 | 55,993 | |||||||||
Italy | 39,725 | 36,956 | 31,889 | |||||||||
Spain | 36,439 | 33,687 | 28,866 | |||||||||
Switzerland | 20,855 | 19,875 | 17,913 | |||||||||
Netherlands | 19,397 | 18,090 | 15,877 | |||||||||
Other | 122,206 | 114,877 | 100,409 | |||||||||
| 498,439 | 472,070 | 419,424 | |||||||||
Asia Pacific Region | ||||||||||||
Australia | 71,069 | 63,386 | 56,994 | |||||||||
Japan | 67,246 | 60,213 | 53,344 | |||||||||
China | 57,518 | 57,621 | 55,810 | |||||||||
Other | 61,055 | 56,868 | 49,228 | |||||||||
| 256,888 | 238,088 | 215,376 | |||||||||
Total | $ | 2,406,908 | $ | 2,213,242 | $ | 1,969,058 |
| For the Years Ended December 31, | |||||||||||
| 2018 | 2017 | 2016 | |||||||||
Americas | ||||||||||||
United States | $ | 1,357,909 | $ | 1,203,547 | $ | 1,089,595 | ||||||
Canada | 94,206 | 83,818 | 74,923 | |||||||||
Latin America | 50,969 | 46,893 | 38,872 | |||||||||
| 1,503,084 | 1,334,258 | 1,203,390 | |||||||||
| ||||||||||||
Europe, the Middle East and Africa | ||||||||||||
Germany | 100,459 | 88,328 | 80,156 | |||||||||
United Kingdom | 87,807 | 80,149 | 77,671 | |||||||||
France | 60,319 | 55,993 | 51,204 | |||||||||
Italy | 36,956 | 31,889 | 28,907 | |||||||||
Spain | 33,687 | 28,866 | 24,268 | |||||||||
Switzerland | 19,875 | 17,913 | 16,361 | |||||||||
Netherlands | 18,090 | 15,877 | 14,049 | |||||||||
Other | 114,877 | 100,409 | 83,147 | |||||||||
| 472,070 | 419,424 | 375,763 | |||||||||
Asia Pacific Region | ||||||||||||
Australia | 63,386 | 56,994 | 52,871 | |||||||||
China | 57,621 | 55,810 | 48,257 | |||||||||
Japan | 60,213 | 53,344 | 51,544 | |||||||||
Other | 56,868 | 49,228 | 43,598 | |||||||||
| 238,088 | 215,376 | 196,270 | |||||||||
Total | $ | 2,213,242 | $ | 1,969,058 | $ | 1,775,423 |
(in thousands) | For the Years Ended December 31, | |||||||||||
| 2019 | 2018 | 2017 | |||||||||
| ||||||||||||
Share-based compensation expense included in cost of revenue | $ | 2,681 | $ | 2,816 | $ | 2,675 | ||||||
Share-based compensation expense included in operating expenses | 36,597 | 22,341 | 20,842 | |||||||||
Total share-based compensation expense included in consolidated statements of income | 39,278 | 25,157 | 23,517 | |||||||||
Income tax benefit resulting from share-based compensation expense | (4,861 | ) | (4,190 | ) | (6,810 | ) | ||||||
Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards | 34,417 | 20,967 | 16,707 | |||||||||
Income tax benefit resulting from settlement of share-based awards | (19,140 | ) | (21,496 | ) | (27,743 | ) | ||||||
Net expense (benefit) related to share-based compensation arrangements included in consolidated statements of income | $ | 15,277 | $ | (529 | ) | $ | (11,036 | ) |
| For the Years Ended December 31, | |||||||||||
| 2018 | 2017 | 2016 | |||||||||
| ||||||||||||
Share-based compensation expense included in cost of revenue | $ | 2,816 | $ | 2,675 | $ | 2,305 | ||||||
Share-based compensation expense included in operating expenses | 22,341 | 20,842 | 17,586 | |||||||||
Total share-based compensation expense included in consolidated statements of income | 25,157 | 23,517 | 19,891 | |||||||||
Income tax benefit resulting from share-based compensation expense | (4,190 | ) | (6,810 | ) | (6,143 | ) | ||||||
Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards | 20,967 | 16,707 | 13,748 | |||||||||
Income tax benefit resulting from settlement of share-based awards under ASU 2016-09 | (21,496 | ) | (27,743 | ) | — | |||||||
Net (benefit) expense related to share-based compensation arrangements included in consolidated statements of income | $ | (529 | ) | $ | (11,036 | ) | $ | 13,748 |
| For the Years Ended December 31, | |||||||||||
| 2019 | 2018 | 2017 | |||||||||
| ||||||||||||
Share price at grant | $ | 218.66 | $ | 179.56 | $ | 142.89 | ||||||
Share exercise price | $ | 220.88 | $ | 179.56 | $ | 142.89 | ||||||
Expected stock price volatility | 26 | % | 24 | % | 26 | % | ||||||
Expected term, in years | 6.0 | 5.8 | 5.8 | |||||||||
Risk-free interest rate | 2.4 | % | 2.7 | % | 2.0 | % | ||||||
Weighted average fair value of options granted | $ | 65.53 | $ | 52.99 | $ | 40.83 |
| For the Years Ended December 31, | |||||||||||
| 2018 | 2017 | 2016 | |||||||||
| ||||||||||||
Share price at grant | $ | 179.56 | $ | 142.89 | $ | 69.07 | ||||||
Expected stock price volatility | 24 | % | 26 | % | 25 | % | ||||||
Expected term, in years | 5.8 | 5.8 | 5.7 | |||||||||
Risk-free interest rate | 2.7 | % | 2.0 | % | 1.2 | % | ||||||
Weighted average fair value of options granted | $ | 52.99 | $ | 40.83 | $ | 17.87 |
| Number of Options (000) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value ($000) | |||||||||
| |||||||||||||
Outstanding as of December 31, 2018 | 2,449 | $ | 91.64 | ||||||||||
Granted | 351 | $ | 220.88 | ||||||||||
Exercised | (445 | ) | $ | 58.32 | |||||||||
Forfeited | (44 | ) | $ | 122.23 | |||||||||
Outstanding as of December 31, 2019 | 2,311 | $ | 117.13 | 6.4 | $ | 334,116 | |||||||
Fully vested as of December 31, 2019 | 1,222 | $ | 83.11 | 5.4 | $ | 217,569 | |||||||
Fully vested and expected to vest as of December 31, 2019 | 2,277 | $ | 116.52 | 6.4 | $ | 330,606 |
| Number of Options (000) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value ($000) | |||||||||
| |||||||||||||
Outstanding as of December 31, 2017 | 2,727 | $ | 72.72 | ||||||||||
Granted | 333 | $ | 179.56 | ||||||||||
Exercised | (561 | ) | $ | 51.55 | |||||||||
Forfeited | (50 | ) | $ | 95.19 | |||||||||
Outstanding as of December 31, 2018 | 2,449 | $ | 91.64 | 6.2 | $ | 231,414 | |||||||
Fully vested as of December 31, 2018 | 1,239 | $ | 67.69 | 4.7 | $ | 146,555 | |||||||
Fully vested and expected to vest as of December 31, 2018 | 2,402 | $ | 91.28 | 6.1 | $ | 227,861 |
| Number of Units (000) | Weighted Average Grant-Date Fair Value | |||||
| |||||||
Nonvested as of December 31, 2018 | 306 | $ | 113.87 | ||||
Granted | 80 | $ | 209.39 | ||||
Vested | (113 | ) | $ | 95.20 | |||
Forfeited | (15 | ) | $ | 134.89 | |||
Nonvested as of December 31, 2019 | 258 | $ | 150.50 | ||||
Expected to vest as of December 31, 2019 | 243 | $ | 149.65 |
| Number of Units (000) | Weighted Average Grant-Date Fair Value | |||||
| |||||||
Nonvested as of December 31, 2017 | 383 | $ | 85.74 | ||||
Granted | 79 | $ | 179.22 | ||||
Vested | (136 | ) | $ | 74.69 | |||
Forfeited | (20 | ) | $ | 100.02 | |||
Nonvested as of December 31, 2018 | 306 | $ | 113.87 | ||||
Expected to vest as of December 31, 2018 | 289 | $ | 113.44 |
As of December 31, 2017 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
| ||||||||||||||||
Corporate bonds | $ | 140,969 | $ | 96 | $ | (179 | ) | $ | 140,886 | |||||||
Certificates of deposit | 58,510 | — | — | 58,510 | ||||||||||||
Commercial paper | 29,171 | — | — | 29,171 | ||||||||||||
Asset backed securities | 22,206 | 4 | (43 | ) | 22,167 | |||||||||||
U.S. government bonds | 15,619 | 11 | (19 | ) | 15,611 | |||||||||||
Agency bonds | 10,990 | 9 | (52 | ) | 10,947 | |||||||||||
Treasury bills | 6,964 | — | (1 | ) | 6,963 | |||||||||||
Total marketable securities | $ | 284,429 | $ | 120 | $ | (294 | ) | $ | 284,255 |
(in thousands) | December 31, 2019 | December 31, 2018 | ||||||
| ||||||||
Raw materials | $ | 41,202 | $ | 31,973 | ||||
Work-in-process | 20,077 | 17,009 | ||||||
Finished goods | 133,740 | 124,321 | ||||||
Inventories | $ | 195,019 | $ | 173,303 |
| December 31, 2018 | December 31, 2017 | ||||||
| ||||||||
Raw materials | $ | 31,973 | $ | 32,994 | ||||
Work-in-process | 17,009 | 17,786 | ||||||
Finished goods | 124,321 | 113,538 | ||||||
Inventories (Note 2) | $ | 173,303 | $ | 164,318 |
(in thousands, except lease term and discount rate) | December 31, 2019 | ||
| |||
2020 | $ | 18,016 | |
2021 | 17,424 | ||
2022 | 13,968 | ||
2023 | 9,358 | ||
2024 | 6,657 | ||
Thereafter | 33,602 | ||
Total lease payments | 99,025 | ||
Less imputed interest | (16,272 | ) | |
Total | $ | 82,753 | |
Current operating lease liabilities, included in accrued liabilities | $ | 15,281 | |
Long-term operating lease liabilities | $ | 67,472 | |
Weighted average remaining lease term - operating leases | 10.3 years | ||
Weighted average discount rate - operating leases | 3.5 | % |
(in thousands) | For the Year Ended December 31, 2019 | ||
| |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 20,008 | |
Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations | $ | 13,399 |
Asset Classification | Estimated Useful Life | |
| ||
Land improvements | 15 to 20 years | |
Buildings and improvements | 10 to 40 years | |
Leasehold improvements | Shorter of remaining lease term or useful life of improvements | |
Machinery and equipment | 3 to 8 years | |
Office furniture and equipment | 3 to 7 years | |
Computer hardware and software | 3 to 7 years |
(in thousands) | December 31, 2019 | December 31, 2018 | ||||||
| ||||||||
Land and improvements | $ | 8,725 | $ | 8,701 | ||||
Buildings and improvements | 249,918 | 190,809 | ||||||
Leasehold improvements | 74,602 | 66,917 | ||||||
Machinery and equipment | 322,814 | 299,204 | ||||||
Office furniture and equipment | 53,210 | 51,661 | ||||||
Computer hardware and software | 240,406 | 218,150 | ||||||
Construction in progress | 103,200 | 70,561 | ||||||
| 1,052,875 | 906,003 | ||||||
Less accumulated depreciation and amortization | 519,030 | 468,733 | ||||||
Total property and equipment, net | $ | 533,845 | $ | 437,270 |
| December 31, 2018 | December 31, 2017 | ||||||
| ||||||||
Land and improvements | $ | 8,701 | $ | 7,323 | ||||
Buildings and improvements | 190,809 | 180,185 | ||||||
Leasehold improvements | 66,917 | 52,227 | ||||||
Machinery and equipment | 299,204 | 284,375 | ||||||
Office furniture and equipment | 51,661 | 47,476 | ||||||
Computer hardware and software | 218,150 | 206,580 | ||||||
Construction in progress | 70,561 | 33,470 | ||||||
| 906,003 | 811,636 | ||||||
Less accumulated depreciation and amortization | 468,733 | 432,540 | ||||||
Total property and equipment, net | $ | 437,270 | $ | 379,096 |
For the Years Ended December 31, | ||||||||||||
(in thousands) | 2019 | 2018 | 2017 | |||||||||
| ||||||||||||
Depreciation and amortization expense | $ | 78,495 | $ | 74,208 | $ | 73,797 | ||||||
Capitalized computer software developed for internal use | $ | 20,130 | $ | 17,115 | $ | 16,131 | ||||||
Unpaid property and equipment, reflected in accounts payable and accrued liabilities | $ | 24,688 | $ | 17,894 | $ | 11,744 | ||||||
Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment (Note 3) | $ | 14,498 | $ | 20,360 | $ | 16,313 |
| December 31, 2018 | December 31, 2017 | December 31, 2016 | |||||||||
| ||||||||||||
Depreciation and amortization expense | $ | 74,208 | $ | 73,797 | $ | 63,537 | ||||||
Capitalized computer software developed for internal use | $ | 17,115 | $ | 16,131 | $ | 15,590 | ||||||
Unpaid property and equipment, reflected in accounts payable and accrued liabilities | $ | 17,894 | $ | 11,744 | $ | 10,601 | ||||||
Rental and Reagent Rental Program instruments transferred from inventory to property and equipment (Note 3) | $ | 20,360 | $ | 16,313 | $ | 18,324 |
(in thousands) | December 31, 2019 | December 31, 2018 | ||||||
| ||||||||
Customer acquisition costs | $ | 39,329 | $ | 34,515 | ||||
Prepaid expenses (Note 2) | 31,992 | 30,314 | ||||||
Taxes receivable | 20,516 | 14,098 | ||||||
Contract assets | 17,659 | 9,670 | ||||||
Deferred sales commissions | 5,202 | 4,464 | ||||||
Other | 10,284 | 15,159 | ||||||
Other current assets | $ | 124,982 | $ | 108,220 |
| December 31, 2018 | December 31, 2017 | ||||||
| ||||||||
Prepaid expenses | $ | 30,314 | $ | 28,967 | ||||
Taxes receivable | 14,098 | 35,475 | ||||||
Customer acquisition costs (Notes 2 and 3) | 34,515 | 23,520 | ||||||
Contract assets (Notes 2 and 3) | 9,670 | — | ||||||
Deferred sales commissions (Notes 2 and 3) | 4,464 | — | ||||||
Other assets (Notes 2 and 3) | 15,159 | 13,178 | ||||||
Other current assets | $ | 108,220 | $ | 101,140 |
(in thousands) | December 31, 2019 | December 31, 2018 | ||||||
| ||||||||
Customer acquisition costs | $ | 98,117 | $ | 89,862 | ||||
Contract assets | 66,226 | 31,269 | ||||||
Taxes receivable | 14,960 | 19,219 | ||||||
Investment in long-term product supply arrangements | 13,657 | 10,894 | ||||||
Deferred sales commissions | 10,442 | 9,470 | ||||||
Deferred income taxes | 8,100 | 8,481 | ||||||
Other | 28,690 | 20,398 | ||||||
Other long-term assets | $ | 240,192 | $ | 189,593 |
| December 31, 2018 | December 31, 2017 | ||||||
| ||||||||
Investment in long-term product supply arrangements | $ | 10,894 | $ | 9,949 | ||||
Customer acquisition costs (Notes 2 and 3) | 89,862 | 64,670 | ||||||
Contract assets (Notes 2 and 3) | 31,269 | — | ||||||
Deferred sales commissions (Notes 2 and 3) | 9,470 | — | ||||||
Deferred income taxes (Note 2) | 8,481 | 7,698 | ||||||
Other assets (Notes 2 and 3) | 39,617 | 36,299 | ||||||
Other long-term assets | $ | 189,593 | $ | 118,616 |
Asset Classification | Estimated Useful Life | |
| ||
Customer-related intangible assets (1) | 3 to 17 years | |
Product rights | 5 to 15 | |
Noncompete agreements | 3 to 5 years |
(1) | Customer-related intangible assets are comprised of customer lists and customer relationships acquired from third parties. |
(2) | Product rights comprise certain technologies, intellectual property, licenses, and trade names acquired from third parties. |
(in thousands) | December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
| Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | ||||||||||||||||||
Customer-related intangible assets (1) | $ | 99,301 | $ | 46,801 | $ | 52,500 | $ | 77,015 | $ | 43,352 | $ | 33,663 | ||||||||||||
Product rights (2) | 16,130 | 10,214 | 5,916 | 27,060 | 19,153 | 7,907 | ||||||||||||||||||
Noncompete agreements | 170 | 118 | 52 | 856 | 601 | 255 | ||||||||||||||||||
| $ | 115,601 | $ | 57,133 | $ | 58,468 | $ | 104,931 | $ | 63,106 | $ | 41,825 |
| December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
| Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | ||||||||||||||||||
Product rights(1) | $ | 27,060 | $ | 19,153 | $ | 7,907 | $ | 32,558 | $ | 25,251 | $ | 7,307 | ||||||||||||
Customer-related intangible assets(2) | 77,015 | 43,352 | 33,663 | 80,398 | 44,382 | 36,016 | ||||||||||||||||||
Noncompete agreements | 856 | 601 | 255 | 1,271 | 748 | 523 | ||||||||||||||||||
| $ | 104,931 | $ | 63,106 | $ | 41,825 | $ | 114,227 | $ | 70,381 | $ | 43,846 |
(1) |
Customer-related intangible assets are comprised of customer lists and customer relationships acquired from third parties. |
(2) | Product rights comprise certain technologies, intellectual property, licenses, and trade names acquired from third parties. |
(in thousands) | Amortization Expense | ||
| |||
2020 | $ | 9,782 | |
2021 | 8,915 | ||
2022 | 7,697 | ||
2023 | 5,905 | ||
2024 | 4,917 | ||
Thereafter | 21,252 | ||
| $ | 58,468 |
| Amortization Expense | ||
| |||
2019 | $ | 8,450 | |
2020 | 7,087 | ||
2021 | 6,232 | ||
2022 | 5,063 | ||
2023 | 3,330 | ||
Thereafter | 11,663 | ||
| $ | 41,825 |
(in thousands) | CAG | Water | LPD | Other | Consolidated Total | |||||||||||||||
Balance as of December 31, 2016 | $ | 146,194 | $ | 10,890 | $ | 14,613 | $ | 6,531 | $ | 178,228 | ||||||||||
Business combinations | 13,541 | — | — | — | 13,541 | |||||||||||||||
Impact of changes in foreign currency exchange rates | 6,501 | 1,061 | 542 | — | 8,104 | |||||||||||||||
Balance as of December 31, 2017 | $ | 166,236 | $ | 11,951 | $ | 15,155 | $ | 6,531 | $ | 199,873 | ||||||||||
Business combinations | 20,282 | — | — | — | 20,282 | |||||||||||||||
Impact of changes in foreign currency exchange rates | (4,132 | ) | (730 | ) | (804 | ) | — | (5,666 | ) | |||||||||||
Balance as of December 31, 2018 | $ | 182,386 | $ | 11,221 | $ | 14,351 | $ | 6,531 | $ | 214,489 | ||||||||||
Business combinations | 24,826 | — | — | — | 24,826 | |||||||||||||||
Impact of changes in foreign currency exchange rates | 138 | 390 | (119 | ) | — | 409 | ||||||||||||||
Balance as of December 31, 2019 | $ | 207,350 | $ | 11,611 | $ | 14,232 | $ | 6,531 | $ | 239,724 |
| CAG | Water | LPD | Other | Consolidated Total | |||||||||||||||
Balance as of December 31, 2015 | $ | 145,191 | $ | 13,038 | $ | 14,174 | $ | 6,531 | $ | 178,934 | ||||||||||
Business combinations | 1,720 | — | — | — | 1,720 | |||||||||||||||
Impact of changes in foreign currency exchange rates | (717 | ) | (2,148 | ) | 439 | — | (2,426 | ) | ||||||||||||
Balance as of December 31, 2016 | $ | 146,194 | $ | 10,890 | $ | 14,613 | $ | 6,531 | $ | 178,228 | ||||||||||
Business combinations | 13,541 | — | — | — | 13,541 | |||||||||||||||
Impact of changes in foreign currency exchange rates | 6,501 | 1,061 | 542 | — | 8,104 | |||||||||||||||
Balance as of December 31, 2017 | $ | 166,236 | $ | 11,951 | $ | 15,155 | $ | 6,531 | $ | 199,873 | ||||||||||
Business combinations | 20,282 | — | — | — | 20,282 | |||||||||||||||
Impact of changes in foreign currency exchange rates | (4,132 | ) | (730 | ) | (804 | ) | — | (5,666 | ) | |||||||||||
Balance as of December 31, 2018 | $ | 182,386 | $ | 11,221 | $ | 14,351 | $ | 6,531 | $ | 214,489 |
(in thousands) | December 31, 2019 | December 31, 2018 | ||||||||||||||
December 31, 2018 | December 31, 2017 | |||||||||||||||
Accrued expenses | $ | 65,212 | $ | 64,430 | ||||||||||||
Accrued employee compensation and related expenses | 109,488 | 102,944 | $ | 127,174 | $ | 109,488 | ||||||||||
Accrued expenses (Note 2) | 86,296 | 65,212 | ||||||||||||||
Accrued customer incentives and refund obligations | 63,079 | 59,374 | ||||||||||||||
Accrued taxes | 26,609 | 29,389 | 31,108 | 26,609 | ||||||||||||
Accrued customer incentives and refund obligations (Notes 2 and 3) | 59,374 | 56,655 | ||||||||||||||
Current lease liabilities (Notes 2 and 7) | 15,281 | — | ||||||||||||||
Accrued liabilities | $ | 260,683 | $ | 253,418 | $ | 322,938 | $ | 260,683 |
(in thousands) | December 31, 2019 | December 31, 2018 | ||||||
| ||||||||
Accrued taxes | $ | 67,463 | $ | 66,767 | ||||
Other accrued long-term expenses (Note 2) | 13,701 | 18,059 | ||||||
Other long-term liabilities | $ | 81,164 | $ | 84,826 |
| December 31, 2018 | December 31, 2017 | ||||||
| ||||||||
Accrued taxes | $ | 66,767 | $ | 66,506 | ||||
Accrued customer incentives (Note 2) | — | 12,956 | ||||||
Other accrued long-term expenses | 18,059 | 16,256 | ||||||
Other long-term liabilities | $ | 84,826 | $ | 95,718 |
(Principal Amount in thousands) | |||||||||||||
Issue Date | Due Date | Series | Principal Amount | Coupon Rate | Senior Note Agreement | ||||||||
12/11/2013 | 12/11/2023 | 2023 Series A Notes | $ | 75,000 | 3.94 | % | NY Life 2013 Note Agreement | ||||||
12/11/2013 | 12/11/2025 | 2025 Series B Notes | $ | 75,000 | 4.04 | % | NY Life 2013 Note Agreement | ||||||
9/4/2014 | 9/4/2026 | 2026 Senior Notes | $ | 75,000 | 3.72 | % | NY Life 2014 Note Agreement | ||||||
7/21/2014 | 7/21/2021 | 2021 Series A Notes | $ | 50,000 | 3.32 | % | Prudential 2015 Amended Agreement | ||||||
7/21/2014 | 7/21/2024 | 2024 Series B Notes | $ | 75,000 | 3.76 | % | Prudential 2015 Amended Agreement | ||||||
6/18/2015 | 6/18/2025 | 2025 Series C Notes | € | 88,857 | 1.785 | % | Prudential 2015 Amended Agreement | ||||||
2/12/2015 | 2/12/2022 | 2022 Series A Notes | $ | 75,000 | 3.25 | % | MetLife 2014 Note Agreement, as Amended | ||||||
2/12/2015 | 2/12/2027 | 2027 Series B Notes | $ | 75,000 | 3.72 | % | MetLife 2014 Note Agreement, as Amended | ||||||
3/14/2019 | 3/14/2029 | 2029 Series C Notes | $ | 100,000 | 4.19 | % | MetLife 2014 Note Agreement, as Amended |
(in thousands) | ||||
Years Ending December 31, | Amount | |||
| ||||
2020 | $ | — | ||
2021 | 50,000 | |||
2022 | 75,000 | |||
2023 | 75,000 | |||
2024 | 75,000 | |||
Thereafter | 424,422 | |||
| $ | 699,422 |
Years Ending December 31, | Amount | |||
| ||||
2019 | $ | — | ||
2020 | — | |||
2021 | 50,000 | |||
2022 | 75,000 | |||
2023 | 75,000 | |||
Thereafter | 401,777 | |||
| $ | 601,777 |
(in thousands) | For the Years Ended December 31, | |||||||||||
| 2019 | 2018 | 2017 | |||||||||
| ||||||||||||
Domestic | $ | 377,964 | $ | 337,437 | $ | 268,714 | ||||||
International | 144,254 | 120,305 | 112,343 | |||||||||
| $ | 522,218 | $ | 457,742 | $ | 381,057 |
| For the Years Ended December 31, | |||||||||||
| 2018 | 2017 | 2016 | |||||||||
| ||||||||||||
Domestic | $ | 337,437 | $ | 268,714 | $ | 227,875 | ||||||
International | 120,305 | 112,343 | 93,971 | |||||||||
| $ | 457,742 | $ | 381,057 | $ | 321,846 |
(in thousands) | For the Years Ended December 31, | |||||||||||
| 2019 | 2018 | 2017 | |||||||||
Current | ||||||||||||
Federal | $ | 52,194 | $ | 47,130 | $ | 92,453 | ||||||
State | 11,967 | 10,415 | 9,258 | |||||||||
International | 24,239 | 22,015 | 23,993 | |||||||||
| 88,400 | 79,560 | 125,704 | |||||||||
Deferred | ||||||||||||
Federal | 4,826 | 3,970 | (1,201 | ) | ||||||||
State | 269 | (937 | ) | (4,102 | ) | |||||||
International | 931 | (1,898 | ) | (2,613 | ) | |||||||
| 6,026 | 1,135 | (7,916 | ) | ||||||||
| $ | 94,426 | $ | 80,695 | $ | 117,788 |
| For the Years Ended December 31, | |||||||||||
| 2018 | 2017 | 2016 | |||||||||
Current | ||||||||||||
Federal | $ | 47,130 | $ | 92,453 | $ | 53,285 | ||||||
State | 10,415 | 9,258 | 6,608 | |||||||||
International | 22,015 | 23,993 | 19,291 | |||||||||
| 79,560 | 125,704 | 79,184 | |||||||||
Deferred | ||||||||||||
Federal | 3,970 | (1,201 | ) | 20,305 | ||||||||
State | (937 | ) | (4,102 | ) | 1,196 | |||||||
International | (1,898 | ) | (2,613 | ) | (893 | ) | ||||||
| 1,135 | (7,916 | ) | 20,608 | ||||||||
| $ | 80,695 | $ | 117,788 | $ | 99,792 |
| For the Years Ended December 31, | ||||||||
| 2019 | 2018 | 2017 | ||||||
| |||||||||
U.S. federal statutory rate | 21.0 | % | 21.0 | % | 35.0 | % | |||
State income tax, net of federal tax benefit | 2.3 | 2.6 | 1.9 | ||||||
Taxation on international earnings | (1.1 | ) | (0.8 | ) | (5.5 | ) | |||
Foreign derived intangible income | (1.1 | ) | (1.3 | ) | — | ||||
Share-based compensation from settlements | (3.6 | ) | (4.7 | ) | (7.3 | ) | |||
Domestic manufacturing exclusions | — | — | (1.1 | ) | |||||
Research and development credit | (0.8 | ) | (0.9 | ) | (0.9 | ) | |||
Impact of the 2017 Tax Act | — | 0.5 | 9.4 | ||||||
State income tax carryforwards | — | (0.2 | ) | (1.4 | ) | ||||
Other, net | 1.4 | 1.4 | 0.8 | ||||||
Effective tax rate | 18.1 | % | 17.6 | % | 30.9 | % |
| For the Years Ended December 31, | ||||||||
| 2018 | 2017 | 2016 | ||||||
| |||||||||
U.S. federal statutory rate | 21.0 | % | 35.0 | % | 35.0 | % | |||
State income tax, net of federal tax benefit | 2.6 | 1.9 | 1.8 | ||||||
Taxation on international earnings | (0.8 | ) | (5.5 | ) | (4.8 | ) | |||
Foreign derived intangible income | (1.3 | ) | — | — | |||||
Share-based compensation from settlements under ASU 2016-09 | (4.7 | ) | (7.3 | ) | — | ||||
Domestic manufacturing exclusions | — | (1.1 | ) | (1.0 | ) | ||||
Research and development credit | (0.9 | ) | (0.9 | ) | (0.8 | ) | |||
Impact of the Tax Cuts and Jobs Act | 0.5 | 9.4 | — | ||||||
State income tax carryforwards | (0.2 | ) | (1.4 | ) | — | ||||
Other, net | 1.4 | 0.8 | 0.8 | ||||||
Effective tax rate | 17.6 | % | 30.9 | % | 31.0 | % |
(in thousands) | December 31, 2019 | December 31, 2018 | ||||||
| ||||||||
Assets | ||||||||
Accrued expenses | $ | 25,296 | $ | 22,652 | ||||
Accounts receivable reserves | 617 | 776 | ||||||
Deferred revenue | 6,073 | 7,637 | ||||||
Inventory basis differences | 3,315 | 2,787 | ||||||
Property-based differences | 3,113 | 1,652 | ||||||
Share-based compensation | 10,593 | 9,267 | ||||||
Other | 1,160 | 2,314 | ||||||
Net operating loss carryforwards | 4,045 | 3,208 | ||||||
Tax credit carryforwards | 12,276 | 10,226 | ||||||
Unrealized losses on foreign currency exchange contracts and investments | 20 | 404 | ||||||
Total assets | 66,508 | 60,923 | ||||||
Valuation allowance | (9,454 | ) | (6,212 | ) | ||||
Total assets, net of valuation allowance | 57,054 | 54,711 | ||||||
| ||||||||
Liabilities | ||||||||
Customer acquisition costs | (28,519 | ) | (24,323 | ) | ||||
Property-based differences | (33,802 | ) | (32,494 | ) | ||||
Intangible asset basis differences | (14,513 | ) | (13,454 | ) | ||||
Other | (3,961 | ) | (3,319 | ) | ||||
Unrealized gains on foreign currency exchange contracts and investments | (1,183 | ) | (1,907 | ) | ||||
Total liabilities | (81,978 | ) | (75,497 | ) | ||||
Net deferred tax assets (liabilities) | $ | (24,924 | ) | $ | (20,786 | ) |
| December 31, 2018 | December 31, 2017 | ||||||
| ||||||||
Assets | ||||||||
Accrued expenses | $ | 21,065 | $ | 13,843 | ||||
Accounts receivable reserves | 2,363 | 2,624 | ||||||
Deferred revenue | 7,637 | 10,618 | ||||||
Inventory basis differences | 2,787 | 3,039 | ||||||
Property-based differences | 1,652 | 1,324 | ||||||
Share-based compensation | 9,267 | 9,035 | ||||||
Other | 2,314 | 918 | ||||||
Net operating loss carryforwards | 3,208 | 3,350 | ||||||
Tax credit carryforwards | 10,226 | 8,096 | ||||||
Unrealized losses on foreign currency exchange contracts, interest rate swaps and investments | 404 | 2,355 | ||||||
Total assets | 60,923 | 55,202 | ||||||
Valuation allowance | (6,212 | ) | (6,211 | ) | ||||
Total assets, net of valuation allowance | 54,711 | 48,991 | ||||||
| ||||||||
Liabilities | ||||||||
Deferred instrument costs | (27,210 | ) | (20,399 | ) | ||||
Property-based differences | (32,494 | ) | (31,859 | ) | ||||
Intangible asset basis differences | (13,454 | ) | (13,574 | ) | ||||
Other | (432 | ) | (656 | ) | ||||
Unrealized gains on foreign currency exchange contracts, interest rate swaps and investments | (1,907 | ) | (158 | ) | ||||
Total liabilities | (75,497 | ) | (66,646 | ) | ||||
Net deferred tax assets (liabilities) | $ | (20,786 | ) | $ | (17,655 | ) |
(in thousands) | For the Years Ended December 31, | |||||||||||
| 2019 | 2018 | 2017 | |||||||||
| ||||||||||||
Total amounts of unrecognized tax benefits, beginning of period | $ | 24,247 | $ | 21,417 | $ | 18,463 | ||||||
Gross (decreases) increases in unrecognized tax positions as a result of tax positions taken during a prior period | (276 | ) | 2,991 | 74 | ||||||||
Gross increases in unrecognized tax positions as a result of tax positions taken in the current period | 4,083 | 461 | 4,681 | |||||||||
Decreases in unrecognized tax positions relating to settlements with taxing authorities | — | — | (713 | ) | ||||||||
Decreases in unrecognized tax positions as a result of a lapse of the applicable statutes of limitations | (1,213 | ) | (622 | ) | (1,088 | ) | ||||||
Total amounts of unrecognized tax benefits, end of period | $ | 26,841 | $ | 24,247 | $ | 21,417 |
| For the Years Ended December 31, | |||||||||||
| 2018 | 2017 | 2016 | |||||||||
| ||||||||||||
Total amounts of unrecognized tax benefits, beginning of period | $ | 21,417 | $ | 18,463 | $ | 7,204 | ||||||
Gross increases in unrecognized tax benefits as a result of tax positions taken during a prior period | 2,991 | 74 | 75 | |||||||||
Gross increases in unrecognized tax benefits as a result of tax positions taken in the current period | 461 | 4,681 | 12,657 | |||||||||
Decreases in unrecognized tax benefits relating to settlements with taxing authorities | — | (713 | ) | (1,326 | ) | |||||||
Decreases in unrecognized tax benefits as a result of a lapse of the applicable statutes of limitations | (622 | ) | (1,088 | ) | (147 | ) | ||||||
Total amounts of unrecognized tax benefits, end of period | $ | 24,247 | $ | 21,417 | $ | 18,463 |
(in thousands) | For the Years Ended December 31, | ||||||||
| 2019 | 2018 | 2017 | ||||||
| |||||||||
Shares outstanding for basic earnings per share: | 86,115 | 86,864 | 87,769 | ||||||
| |||||||||
Shares outstanding for diluted earnings per share: | |||||||||
Shares outstanding for basic earnings per share | 86,115 | 86,864 | 87,769 | ||||||
Dilutive effect of share-based payment awards | 1,427 | 1,606 | 1,798 | ||||||
| 87,542 | 88,470 | 89,567 |
| For the Years Ended December 31, | ||||||||
| 2018 | 2017 | 2016 | ||||||
| |||||||||
Shares outstanding for basic earnings per share: | 86,864 | 87,769 | 89,732 | ||||||
| |||||||||
Shares outstanding for diluted earnings per share: | |||||||||
Shares outstanding for basic earnings per share | 86,864 | 87,769 | 89,732 | ||||||
Dilutive effect of share-based payment awards | 1,606 | 1,798 | 1,152 | ||||||
| 88,470 | 89,567 | 90,884 |
(in thousands) | For the Years Ended December 31, | ||||||||
| 2019 | 2018 | 2017 | ||||||
| |||||||||
Weighted average number of shares underlying anti-dilutive options | 200 | 287 | 327 |
| For the Years Ended December 31, | ||||||||
| 2018 | 2017 | 2016 | ||||||
| |||||||||
Weighted average number of shares underlying anti-dilutive options | 287 | 327 | 88 |
Years Ending December 31, | Amount | |||
| ||||
2019 | $ | 19,351 | ||
2020 | 17,109 | |||
2021 | 14,528 | |||
2022 | 10,799 | |||
2023 | 8,518 | |||
Thereafter | 36,514 | |||
| $ | 106,819 |
(in thousands) | For the Years Ended December 31, | |||||||||||||||||||||||
CAG | Water | LPD | Other | Unallocated Amounts | Consolidated Total | |||||||||||||||||||
2019 | ||||||||||||||||||||||||
Revenue | $ | 2,119,183 | $ | 132,850 | $ | 132,635 | $ | 22,240 | $ | — | $ | 2,406,908 | ||||||||||||
| ||||||||||||||||||||||||
Income (loss) from operations | $ | 491,602 | $ | 62,435 | $ | 25,374 | $ | 4,940 | $ | (31,505 | ) | $ | 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 (loss) from operations | $ | 429,483 | $ | 56,607 | $ | 19,412 | $ | 3,729 | $ | (17,896 | ) | $ | 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 | ||||||||||||
| ||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||
Revenue | $ | 1,703,377 | $ | 114,395 | $ | 128,481 | $ | 22,805 | $ | — | $ | 1,969,058 | ||||||||||||
Income (loss) from operations | $ | 363,557 | $ | 50,616 | $ | 16,464 | $ | 4,837 | $ | (22,446 | ) | $ | 413,028 | |||||||||||
Interest expense, net | (31,971 | ) | ||||||||||||||||||||||
Income before provision for income taxes | 381,057 | |||||||||||||||||||||||
Provision for income taxes | 117,788 | |||||||||||||||||||||||
Net income | 263,269 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 125 | |||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 263,144 | ||||||||||||||||||||||
Depreciation and amortization | $ | 71,835 | $ | 2,856 | $ | 5,052 | $ | 3,397 | $ | — | $ | 83,140 |
For the Years Ended December 31, | ||||||||||||||||||||||||
CAG | Water | LPD | Other | Unallocated Amounts | Consolidated Total | |||||||||||||||||||
2018 | ||||||||||||||||||||||||
Revenue | $ | 1,935,428 | $ | 125,198 | $ | 130,581 | $ | 22,035 | $ | — | $ | 2,213,242 | ||||||||||||
| ||||||||||||||||||||||||
Income (loss) from operations | $ | 429,483 | $ | 56,607 | $ | 19,412 | $ | 3,729 | $ | (17,896 | ) | $ | 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 | ||||||||||||
Expenditures for long-lived assets(1) | $ | 103,300 | $ | 3,172 | $ | 4,787 | $ | 4,492 | $ | — | $ | 115,751 | ||||||||||||
| ||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||
Revenue | $ | 1,703,377 | $ | 114,395 | $ | 128,481 | $ | 22,805 | $ | — | $ | 1,969,058 | ||||||||||||
| ||||||||||||||||||||||||
Income (loss) from operations | $ | 363,557 | $ | 50,616 | $ | 16,464 | $ | 4,837 | $ | (22,446 | ) | $ | 413,028 | |||||||||||
Interest expense, net | (31,971 | ) | ||||||||||||||||||||||
Income before provision for income taxes | 381,057 | |||||||||||||||||||||||
Provision for income taxes | 117,788 | |||||||||||||||||||||||
Net income | 263,269 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 125 | |||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 263,144 | ||||||||||||||||||||||
Depreciation and amortization | $ | 71,835 | $ | 2,856 | $ | 5,052 | $ | 3,397 | $ | — | $ | 83,140 | ||||||||||||
Expenditures for long-lived assets(1) | $ | 64,759 | $ | 2,573 | $ | 3,021 | $ | 4,031 | $ | — | $ | 74,384 | ||||||||||||
| ||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||
Revenue | $ | 1,522,689 | $ | 103,579 | $ | 126,491 | $ | 22,664 | $ | — | $ | 1,775,423 | ||||||||||||
Income (loss) from operations | $ | 301,342 | $ | 45,702 | $ | 18,914 | $ | 884 | $ | (16,603 | ) | $ | 350,239 | |||||||||||
Interest expense, net | (28,393 | ) | ||||||||||||||||||||||
Income before provision for income taxes | 321,846 | |||||||||||||||||||||||
Provision for income taxes | 99,792 | |||||||||||||||||||||||
Net income | 222,054 | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 9 | |||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 222,045 | ||||||||||||||||||||||
Depreciation and amortization | $ | 64,878 | $ | 3,098 | $ | 5,543 | $ | 4,699 | $ | — | $ | 78,218 | ||||||||||||
Expenditures for long-lived assets(1) | $ | 56,329 | $ | 2,102 | $ | 4,824 | $ | 1,532 | $ | — | $ | 64,787 |
(in thousands) | ||||||||
December 31, 2019 | December 31, 2018 | |||||||
Americas | ||||||||
United States | $ | 401,248 | $ | 348,240 | ||||
Brazil | 22,274 | 16,735 | ||||||
Canada | 7,784 | 1,859 | ||||||
| 431,306 | 366,834 | ||||||
Europe, the Middle East and Africa | ||||||||
Germany | 52,032 | 25,036 | ||||||
United Kingdom | 12,114 | 11,517 | ||||||
Netherlands | 13,586 | 10,273 | ||||||
France | 2,061 | 2,130 | ||||||
Switzerland | 3,508 | 2,742 | ||||||
Other | 3,395 | 3,763 | ||||||
| 86,696 | 55,461 | ||||||
Asia Pacific Region | ||||||||
Japan | 5,409 | 5,296 | ||||||
Australia | 4,088 | 4,257 | ||||||
Other | 6,346 | 5,422 | ||||||
| 15,843 | 14,975 | ||||||
Total | $ | 533,845 | $ | 437,270 |
| December 31, 2018 | December 31, 2017 | ||||||
Americas | ||||||||
United States | $ | 348,240 | $ | 310,696 | ||||
Brazil | 16,735 | 17,030 | ||||||
Canada | 1,859 | 2,238 | ||||||
| 366,834 | 329,964 | ||||||
Europe, the Middle East and Africa | ||||||||
Germany | 25,036 | 7,522 | ||||||
United Kingdom | 11,517 | 11,528 | ||||||
Netherlands | 10,273 | 8,225 | ||||||
France | 2,130 | 2,305 | ||||||
Switzerland | 2,742 | 1,755 | ||||||
Other | 3,763 | 3,838 | ||||||
| 55,461 | 35,173 | ||||||
Asia Pacific Region | ||||||||
Japan | 5,296 | 4,065 | ||||||
Australia | 4,257 | 4,426 | ||||||
Other | 5,422 | 5,468 | ||||||
| 14,975 | 13,959 | ||||||
Total | $ | 437,270 | $ | 379,096 |
Level 1 | Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
(in thousands) | ||||||||||||||||
As of December 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2019 | ||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Money market funds (1) | $ | 71 | $ | — | $ | — | $ | 71 | ||||||||
Equity mutual funds (2) | $ | 1,676 | $ | — | $ | — | $ | 1,676 | ||||||||
Cross currency swaps (3) | $ | — | $ | 4,559 | $ | — | $ | 4,559 | ||||||||
Foreign currency exchange contracts (3) | $ | — | $ | 1,791 | $ | — | $ | 1,791 | ||||||||
Liabilities | ||||||||||||||||
Foreign currency exchange contracts (3) | $ | — | $ | 2,886 | $ | — | $ | 2,886 | ||||||||
Deferred compensation (4) | $ | 1,676 | $ | — | $ | — | $ | 1,676 |
As of December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2018 | ||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Money market funds(1) | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||
Equity mutual funds(2) | $ | 1,673 | $ | — | $ | — | $ | 1,673 | ||||||||
Cross currency swaps(3) | $ | — | $ | 1,789 | $ | — | $ | 1,789 | ||||||||
Foreign currency exchange contracts(3) | $ | — | $ | 8,163 | $ | — | $ | 8,163 | ||||||||
Liabilities | ||||||||||||||||
Foreign currency exchange contracts(3) | $ | — | $ | 603 | $ | — | $ | 603 | ||||||||
Deferred compensation(4) | $ | 1,673 | $ | — | $ | — | $ | 1,673 |
(in thousands) | ||||||||||||||||
As of December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2018 | ||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Money market funds (1) | $ | 250 | $ | — | $ | — | $ | 250 | ||||||||
Equity mutual funds (2) | $ | 1,673 | $ | — | $ | — | $ | 1,673 | ||||||||
Cross currency swaps (3) | $ | — | $ | 1,789 | $ | — | $ | 1,789 | ||||||||
Foreign currency exchange contracts (3) | $ | — | $ | 8,163 | $ | — | $ | 8,163 | ||||||||
Liabilities | ||||||||||||||||
Foreign currency exchange contracts (3) | $ | — | $ | 603 | $ | — | $ | 603 | ||||||||
Deferred compensation (4) | $ | 1,673 | $ | — | $ | — | $ | 1,673 |
As of December 31, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at December 31, 2017 | ||||||||||||
| ||||||||||||||||
Assets | ||||||||||||||||
Money market funds(1) | $ | 32,962 | $ | — | $ | — | $ | 32,962 | ||||||||
Certificates of deposit(1) | $ | — | $ | 1,250 | $ | — | $ | 1,250 | ||||||||
| ||||||||||||||||
Marketable securities | ||||||||||||||||
Corporate bonds | $ | — | $ | 140,886 | $ | — | $ | 140,886 | ||||||||
Certificates of deposit | — | 58,510 | — | 58,510 | ||||||||||||
Commercial paper | — | 29,171 | — | 29,171 | ||||||||||||
Asset backed securities | — | 22,167 | — | 22,167 | ||||||||||||
U.S. government bonds | — | 15,611 | — | 15,611 | ||||||||||||
Agency bonds | — | 10,947 | — | 10,947 | ||||||||||||
Treasury bills | — | 6,963 | — | 6,963 | ||||||||||||
Total marketable securities | $ | — | $ | 284,255 | $ | — | $ | 284,255 | ||||||||
| ||||||||||||||||
Equity mutual funds(2) | $ | 2,162 | $ | — | $ | — | $ | 2,162 | ||||||||
Foreign currency exchange contracts(3) | $ | — | $ | 477 | $ | — | $ | 477 | ||||||||
Liabilities | ||||||||||||||||
Foreign currency exchange contracts(3) | $ | — | $ | 6,468 | $ | — | $ | 6,468 | ||||||||
Deferred compensation(4) | $ | 2,162 | $ | — | $ | — | $ | 2,162 |
(1) | Money market funds |
(2) | Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets. See |
(3) | Cross currency swaps and foreign currency exchange contracts are included within other current assets; other long-term assets; accrued liabilities; or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. |
(4) | A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in |
(in thousands) | Years Ended December 31, | |||||||||||||
| 2019 | 2018 | 2017 | |||||||||||
Financial statement line items in which effects of cash flow hedges are recorded | Cost of revenue | $ | 1,041,359 | $ | 971,700 | $ | 871,676 | |||||||
Foreign exchange contracts | ||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ | 10,628 | $ | (976 | ) | $ | 27 |
| Years Ended December 31, | |||||||||||||
| 2018 | 2017 | 2016 | |||||||||||
| ||||||||||||||
Financial statement line items in which effects of cash flow hedges are recorded | Cost of revenue | $ | 971,700 | $ | 871,676 | $ | 799,987 | |||||||
Foreign exchange contracts | ||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ | (976 | ) | $ | 27 | $ | 3,200 |
Hedging Assets | ||||||||||||||||||||
(in thousands) | Hedging Assets | |||||||||||||||||||
December 31, 2018 | December 31, 2017 | December 31, 2019 | December 31, 2018 | |||||||||||||||||
Derivatives and non-derivatives designated as hedging instruments | Balance Sheet Classification | Balance Sheet Classification | ||||||||||||||||||
Foreign currency exchange contracts | Other current assets | $ | 8,163 | $ | 477 | Other current assets | $ | 1,791 | $ | 8,163 | ||||||||||
Cross currency swaps | Other long-term assets | 1,789 | — | Other long-term assets | 4,559 | 1,789 | ||||||||||||||
Total derivative instruments presented as hedge instruments on the balance sheet | 9,952 | 477 | 6,350 | 9,952 | ||||||||||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 603 | 477 | (1,354 | ) | (603 | ) | ||||||||||||||
Net amount | $ | 9,349 | $ | — | $ | 4,996 | $ | 9,349 |
(in thousands) | Hedging Liabilities | |||||||||
| December 31, 2019 | December 31, 2018 | ||||||||
| ||||||||||
Derivatives and non-derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||
Foreign currency exchange contracts | Accrued liabilities | $ | 2,886 | $ | 603 | |||||
Total derivative instruments presented as cash flow hedges on the balance sheet | 2,886 | 603 | ||||||||
Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) | Long-term debt | 99,422 | 101,777 | |||||||
Total hedging instruments presented on the balance sheet | 102,308 | 102,380 | ||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | (1,354 | ) | (603 | ) | ||||||
Net amount | $ | 100,954 | $ | 101,777 |
| Hedging Liabilities | |||||||||
| December 31, 2018 | December 31, 2017 | ||||||||
| ||||||||||
Derivatives and non-derivatives designated as hedging instruments | Balance Sheet Classification | |||||||||
Foreign currency exchange contracts | Accrued liabilities | $ | 603 | $ | 6,468 | |||||
Total derivative instruments presented as cash flow hedges on the balance sheet | 603 | 6,468 | ||||||||
Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet(1) | Long-term debt | 101,777 | 106,567 | |||||||
Total hedging instruments presented on the balance sheet | 102,380 | 113,035 | ||||||||
Gross amounts subject to master netting arrangements not offset on the balance sheet | 603 | 477 | ||||||||
Net amount | $ | 101,777 | $ | 112,558 |
(1) | Amounts represent reported carrying amounts of our foreign currency denominated debt. See "Note 17. Fair Value Measurements" for information regarding the fair value of our long-term debt. |
(in thousands, except per share amounts) | For the Years Ended December 31, | |||||||||||
| 2019 | 2018 | 2017 | |||||||||
| ||||||||||||
Shares repurchased in the open market | 1,215 | 1,773 | 1,749 | |||||||||
Shares acquired through employee surrenders for statutory tax withholding | 39 | 52 | 57 | |||||||||
Total shares repurchased | 1,254 | 1,825 | 1,806 | |||||||||
| ||||||||||||
Cost of shares repurchased in the open market | $ | 303,838 | $ | 368,691 | $ | 270,297 | ||||||
Cost of shares for employee surrenders | 8,054 | 9,375 | 8,074 | |||||||||
Total cost of shares | $ | 311,892 | $ | 378,066 | $ | 278,371 | ||||||
| ||||||||||||
Average cost per share - open market repurchases | $ | 249.84 | $ | 207.92 | $ | 154.51 | ||||||
Average cost per share - employee surrenders | $ | 210.10 | $ | 182.18 | $ | 142.55 | ||||||
Average cost per share - total | $ | 248.62 | $ | 207.19 | $ | 154.13 |
| For the Years Ended December 31, | |||||||||||
| 2018 | 2017 | 2016 | |||||||||
| ||||||||||||
Shares repurchased in the open market | 1,773 | 1,749 | 3,071 | |||||||||
Shares acquired through employee surrender for statutory tax withholding | 52 | 57 | 60 | |||||||||
Total shares repurchased | 1,825 | 1,806 | 3,131 | |||||||||
| ||||||||||||
Cost of share repurchased in the open market | $ | 368,691 | $ | 270,297 | $ | 313,072 | ||||||
Cost of shares for employee surrenders | 9,375 | 8,074 | 4,372 | |||||||||
Total cost of shares | $ | 378,066 | $ | 278,371 | $ | 317,444 | ||||||
| ||||||||||||
Average cost per share - open market repurchases | $ | 207.92 | $ | 154.51 | $ | 101.96 | ||||||
Average cost per share - employee surrenders | $ | 182.18 | $ | 142.55 | $ | 73.04 | ||||||
Average cost per share - total | $ | 207.19 | $ | 154.13 | $ | 101.40 |
For the Years Ended December 31, 2019 and 2018 | ||||||||||||||||||||||||
Unrealized (Loss) Gain on Cash Flow Hedges, Net of Tax | Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax | |||||||||||||||||||||||
(in thousands) | Unrealized (Loss) Gain on Investments, Net of Tax | Foreign Currency Exchange Contracts | Euro-Denominated Notes | Cross Currency Swaps | Cumulative Translation Adjustment | Total | ||||||||||||||||||
| ||||||||||||||||||||||||
Balance as of December 31, 2017 | $ | (22 | ) | $ | (5,219 | ) | $ | (4,311 | ) | $ | — | $ | (26,918 | ) | $ | (36,470 | ) | |||||||
Other comprehensive (loss) income before reclassifications | (135 | ) | 10,659 | 3,917 | 1,360 | (21,911 | ) | (6,110 | ) | |||||||||||||||
Losses reclassified from accumulated other comprehensive income | — | 789 | — | — | — | 789 | ||||||||||||||||||
Balance as of December 31, 2018 | (157 | ) | 6,229 | (394 | ) | 1,360 | (48,829 | ) | (41,791 | ) | ||||||||||||||
Other comprehensive income (loss) before reclassifications | 267 | 1,196 | 1,790 | 2,107 | (1,590 | ) | 3,770 | |||||||||||||||||
Gains reclassified from accumulated other comprehensive income | — | (8,161 | ) | — | — | — | (8,161 | ) | ||||||||||||||||
Balance as of December 31, 2019 | $ | 110 | $ | (736 | ) | $ | 1,396 | $ | 3,467 | $ | (50,419 | ) | $ | (46,182 | ) |
| Unrealized Gain (Loss) on Investments, Net of Tax | Unrealized Gain (Loss) on Derivatives Instruments, Net of Tax | Unrealized Gain (Loss) on Net Investment Hedge, Net of Tax | Cumulative Translation Adjustment | Total | |||||||||||||||
| ||||||||||||||||||||
Balance as of December 31, 2016 | $ | 20 | $ | 4,916 | $ | 4,036 | $ | (52,025 | ) | $ | (43,053 | ) | ||||||||
Other comprehensive (loss) income before reclassifications | (42 | ) | (10,332 | ) | (8,347 | ) | 25,107 | 6,386 | ||||||||||||
Gains reclassified from accumulated other comprehensive income | — | 197 | — | — | 197 | |||||||||||||||
Balance as of December 31, 2017 | (22 | ) | (5,219 | ) | (4,311 | ) | (26,918 | ) | (36,470 | ) | ||||||||||
Other comprehensive (loss) income before reclassifications | (135 | ) | 12,019 | 3,917 | (21,911 | ) | (6,110 | ) | ||||||||||||
Gains reclassified from accumulated other comprehensive income | — | 789 | — | — | 789 | |||||||||||||||
Balance as of December 31, 2018 | $ | (157 | ) | $ | 7,589 | $ | (394 | ) | $ | (48,829 | ) | $ | (41,791 | ) |
(in thousands) | Affected Line Item in the Statements of Income | Amounts Reclassified from AOCI for the Years Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||||
| ||||||||||||||
Gains (losses) on derivative instruments included in net income: | ||||||||||||||
Foreign currency exchange contracts | Cost of revenue | $ | 10,628 | $ | (976 | ) | $ | 27 | ||||||
| Tax expense (benefit) | 2,467 | (187 | ) | 224 | |||||||||
| Gains (losses), net of tax | $ | 8,161 | $ | (789 | ) | $ | (197 | ) |
Details about Accumulated Other Comprehensive Income Components | Affected Line Item in the Statement Where Net Income is Presented | Amounts Reclassified from Accumulated Other Comprehensive Income for the Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||||
| ||||||||||||||
Gains (losses) on derivative instruments included in net income: | ||||||||||||||
Foreign currency exchange contracts | Cost of revenue | $ | (976 | ) | $ | 27 | $ | 3,621 | ||||||
Interest rate swaps | Interest expense | — | — | (421 | ) | |||||||||
| Total (losses) gains before tax | (976 | ) | 27 | 3,200 | |||||||||
| Tax (benefit) expense | (187 | ) | 224 | 949 | |||||||||
| (Losses) gains, net of tax | $ | (789 | ) | $ | (197 | ) | $ | 2,251 |
(in thousands, except per share data) | For the Three Months Ended | |||||||||||||||||||||||||||||||
For the Three Months Ended | March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Revenue | $ | 576,056 | $ | 620,103 | $ | 605,303 | $ | 605,446 | ||||||||||||||||||||||||
Gross profit | $ | 331,597 | $ | 357,853 | $ | 344,950 | $ | 331,149 | ||||||||||||||||||||||||
Operating income | $ | 133,138 | $ | 164,275 | $ | 139,802 | $ | 115,631 | ||||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ | 102,681 | $ | 125,706 | $ | 108,837 | $ | 90,496 | ||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 1.19 | $ | 1.46 | $ | 1.26 | $ | 1.05 | ||||||||||||||||||||||||
Diluted | $ | 1.17 | $ | 1.43 | $ | 1.24 | $ | 1.04 | ||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Revenue | $ | 537,656 | $ | 580,752 | $ | 545,448 | $ | 549,386 | $ | 537,656 | $ | 580,752 | $ | 545,448 | $ | 549,386 | ||||||||||||||||
Gross profit | 303,099 | 332,439 | 305,643 | 300,361 | $ | 303,099 | $ | 332,439 | $ | 305,643 | $ | 300,361 | ||||||||||||||||||||
Operating income | 113,044 | 145,594 | 117,350 | 115,347 | $ | 113,044 | $ | 145,594 | $ | 117,350 | $ | 115,347 | ||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | 89,451 | 108,691 | 93,251 | 85,638 | $ | 89,451 | $ | 108,691 | $ | 93,251 | $ | 85,638 | ||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 1.02 | $ | 1.25 | $ | 1.07 | $ | 0.99 | $ | 1.02 | $ | 1.25 | $ | 1.07 | $ | 0.99 | ||||||||||||||||
Diluted | $ | 1.01 | $ | 1.23 | $ | 1.05 | $ | 0.98 | $ | 1.01 | $ | 1.23 | $ | 1.05 | $ | 0.98 | ||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||
Revenue | $ | 462,021 | $ | 508,940 | $ | 491,976 | $ | 506,121 | ||||||||||||||||||||||||
Gross profit | 258,191 | 292,715 | 274,002 | 272,474 | ||||||||||||||||||||||||||||
Operating income | 92,243 | 122,564 | 100,413 | 97,808 | ||||||||||||||||||||||||||||
Net income attributable to IDEXX Laboratories, Inc. stockholders | 69,019 | 85,357 | 70,511 | 38,257 | ||||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.78 | $ | 0.97 | $ | 0.81 | $ | 0.44 | ||||||||||||||||||||||||
Diluted | $ | 0.77 | $ | 0.95 | $ | 0.79 | $ | 0.43 |
(1) | Amounts presented may not recalculate to full-year totals due to rounding. |
| Balance at Beginning of Year | Charges to Costs and Expenses | Write-Offs/Cash Payments | Foreign Currency Translation | Balance at End of Year | |||||||||||||||
| ||||||||||||||||||||
Reserves for doubtful accounts receivable: | ||||||||||||||||||||
December 31, 2017 | $ | 4,523 | $ | 591 | $ | (1,660 | ) | $ | 1,122 | $ | 4,576 | |||||||||
December 31, 2018 | $ | 4,576 | 390 | (969 | ) | 705 | 4,702 | |||||||||||||
December 31, 2019 | $ | 4,702 | 562 | (813 | ) | (870 | ) | 3,581 | ||||||||||||
| ||||||||||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||||||
December 31, 2017 | $ | 4,891 | $ | 1,789 | $ | (679 | ) | $ | 210 | $ | 6,211 | |||||||||
December 31, 2018 | $ | 6,211 | 402 | — | (401 | ) | 6,212 | |||||||||||||
December 31, 2019 | $ | 6,212 | 3,489 | (226 | ) | (21 | ) | 9,454 |
| Balance at Beginning of Year | Charges to Costs and Expenses | Write-Offs/Cash Payments | Foreign Currency Translation | Balance at End of Year | |||||||||||||||
| ||||||||||||||||||||
Reserves for doubtful accounts receivable: | ||||||||||||||||||||
December 31, 2016 | $ | 5,128 | $ | 822 | $ | (531 | ) | $ | (896 | ) | $ | 4,523 | ||||||||
December 31, 2017 | 4,523 | 591 | (1,660 | ) | 1,122 | 4,576 | ||||||||||||||
December 31, 2018 | 4,576 | 390 | (969 | ) | 705 | 4,702 | ||||||||||||||
| ||||||||||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||||||
December 31, 2016 | $ | 4,446 | $ | 885 | $ | (816 | ) | $ | 376 | $ | 4,891 | |||||||||
December 31, 2017 | 4,891 | 1,789 | (679 | ) | 210 | 6,211 | ||||||||||||||
December 31, 2018 | 6,211 | 402 | — | (401 | ) | 6,212 |
Exhibit No. | Description |
| |
101 | |
104 | The cover page from the Company's Annual Report of |
* | Confidential treatment requested as to certain portions. |
** | Management contract or compensatory arrangement required to be filed as an exhibit pursuant to Item 15(a)(3) of Form 10-K. |
| IDEXX LABORATORIES, INC. |
| |
| |
By: /s/ Jonathan | |
Date: February | Jonathan |
| President and Chief Executive Officer |
SIGNATURE | TITLE | DATE | ||||||
| ||||||||
/s/ Jonathan | President, Chief Executive Officer and | February | ||||||
Jonathan | ||||||||
/s/ Brian P. McKeon | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) | February | ||||||
Brian P. McKeon | ||||||||
/s/ Lawrence D. Kingsley | Non-Executive Board Chair | February 14, 2020 | ||||||
Lawrence D. Kingsley | ||||||||
/s/ Jonathan W. Ayers | Director | February 14, 2020 | ||||||
Jonathan W. Ayers | ||||||||
| ||||||||
/s/ Bruce L. Claflin | Director | February | ||||||
Bruce L. Claflin | ||||||||
| ||||||||
/s/ Stuart M. Essig, PhD | Director | February | ||||||
Stuart M. Essig | ||||||||
| ||||||||
/s/ Rebecca M. Henderson, PhD | Director | February | ||||||
Rebecca M. Henderson, PhD | ||||||||
| ||||||||
/s/ Daniel M. Junius | Director | February | ||||||
Daniel M. Junius | ||||||||
| ||||||||
/s/ | Director | February | ||||||
/s/ M. Anne Szostak | Director | February | ||||||
M. Anne Szostak | ||||||||
| ||||||||
/s/ Sophie V. Vandebroek, PhD | Director | February | ||||||
Sophie V. Vandebroek, PhD | ||||||||
|