Heska Corp. (HSKA) 10-K 7 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 06, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	Heska Corp
Entity Central Index Key	1,038,133
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,018
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Public Float			$ 669,198,491
Entity Common Stock, Shares Outstanding		7,742,105

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS $ in Thousands, € in Millions, SFr in Millions	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Current assets:
Cash and cash equivalents	$ 13,389	$ 9,659
Accounts receivable, net of allowance for doubtful accounts of $245 and $215, respectively	16,454	15,367
Due from – related parties	0	1
Inventories, net	25,104	32,596
Lease receivable, current, net of allowance for doubtful accounts of $40 and $0, respectively	2,989	2,069
Other current assets	4,471	3,096
Total current assets	62,407	62,788
Property and equipment, net	15,981	17,331
Goodwill	26,679	26,687
Other intangible assets, net	9,764	1,958
Deferred tax asset, net	14,121	11,877
Lease receivable, non-current	11,908	9,615
Investments in unconsolidated affiliates	8,018	0
Other non-current assets	7,574	5,188
Total assets	156,452	135,444
Current liabilities:
Accounts payable	7,469	9,489
Due to – related parties	226	1,828
Accrued liabilities	10,142	4,074
Current portion of deferred revenue, and other	2,526	3,992
Total current liabilities	20,363	19,383
Deferred revenue, net of current portion	7,082	8,431
Line of credit and other long-term borrowings	6,031	6,000
Other liabilities	567	1,190
Total liabilities	34,043	35,004
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value, 2,500,000 shares authorized, none issued or outstanding	0	0
Common stock, $.01 par value, 10,250,000 and 10,000,000 shares authorized, respectively, none issued or outstanding	0	0
Public common stock, $.01 par value, 10,250,000 and 10,000,000 shares authorized, 7,675,692 and 7,302,954 shares issued and outstanding, respectively	77	73
Additional paid-in capital	257,034	243,598
Accumulated other comprehensive income	277	232
Accumulated deficit	(134,979)	(143,463)
Total stockholders' equity	122,409	100,440
Total liabilities and stockholders' equity	$ 156,452	$ 135,444

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 245	$ 215
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)		$ 0.01
Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	10,250,000	10,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0
Public Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	10,250,000	10,000,000
Common stock, shares issued	7,675,692	7,302,954
Common stock, shares outstanding	7,675,692	7,302,954

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue:
Total revenue, net	$ 127,446	$ 129,341	$ 130,083
Cost of revenue	70,808	71,080	76,191
Gross profit	56,638	58,261	53,892
Operating expenses:
Selling and marketing	24,663	23,225	22,092
Research and development	3,334	2,004	2,147
General and administrative	24,847	14,813	13,120
Total operating expenses	52,844	40,042	37,359
Operating income	3,794	18,219	16,533
Interest and other (income) expense, net	(13)	(150)	29
Income before income taxes and equity in losses of unconsolidated affiliates	3,807	18,369	16,504
Income tax (benefit) expense:
Current income tax expense	140	49	407
Deferred income tax (benefit) expense	(2,255)	8,864	3,932
Total income tax (benefit) expense	(2,115)	8,913	4,339
Net income before equity in losses of unconsolidated affiliates	5,922	9,456	12,165
Equity in losses of unconsolidated affiliates	(72)	0	0
Net income, after equity in losses of unconsolidated affiliates	5,850	9,456	12,165
Net (loss) income attributable to non-controlling interest	0	(497)	1,657
Net income attributable to Heska Corporation	$ 5,850	$ 9,953	$ 10,508
Earnings Per Share [Abstract]
Basic earnings per share attributable to Heska Corporation (in dollars per share)	$ 0.81	$ 1.42	$ 1.55
Diluted earnings per share attributable to Heska Corporation (in dollars per share)	$ 0.74	$ 1.30	$ 1.43
Weighted average outstanding shares used to compute basic earnings per share attributable to Heska Corporation	7,220	7,026	6,783
Weighted average outstanding shares used to compute diluted earnings per share attributable to Heska Corporation	7,856	7,642	7,361
Core companion animal
Revenue:
Total revenue, net	$ 108,924	$ 105,191	$ 107,398
Other vaccines and pharmaceuticals
Revenue:
Total revenue, net	$ 18,522	$ 24,150	$ 22,685

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net income, after equity in losses of unconsolidated affiliates	$ 5,850	$ 9,456	$ 12,165
Other comprehensive income (loss):
Minimum pension liability	70	12	75
Sale of equity investment	0	0	(90)
Foreign currency translation	(25)	123	(75)
Comprehensive income	5,895	9,591	12,075
Comprehensive (loss) income attributable to non-controlling interest	0	(497)	1,657
Comprehensive income attributable to Heska Corporation	$ 5,895	$ 10,088	$ 10,418

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	As Reported	As ReportedCommon Stock	As ReportedAdditional Paid-in Capital	As ReportedAccumulated Other Comprehensive Income	As ReportedAccumulated Deficit
Beginning balance at Dec. 31, 2015	$ 63,528	$ 66	$ 227,267	$ 187	$ (163,992)
Beginning balance (in shares) at Dec. 31, 2015		6,625
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income, after equity in losses of unconsolidated affiliates	12,165				12,165
Issuance of common stock related to acquisitions	6,349	$ 2	6,347
Issuance of common stock related to acquisitions (in shares)		175
Issuance of common stock, net of shares withheld for employee taxes	1,618	$ 2	1,616
Issuance of common stock, net of shares withheld for employee taxes (in shares)		226
Stock-based compensation	2,260		2,260
Accretion of non-controlling interest	1,145		1,145
Other comprehensive income (loss)	(90)			(90)
Ending balance at Dec. 31, 2016	86,975	$ 70	238,635	97	(151,827)
Ending balance (in shares) at Dec. 31, 2016		7,026
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income, after equity in losses of unconsolidated affiliates	9,456				9,456
Issuance of common stock, net of shares withheld for employee taxes	1,376	$ 3	1,373
Issuance of common stock, net of shares withheld for employee taxes (in shares)		277
Stock-based compensation	2,745		2,745
Accretion of non-controlling interest	845		845
Distribution for Heska Imaging minority	(1,092)				(1,092)
Other comprehensive income (loss)	135			135
Ending balance at Dec. 31, 2017						$ 100,440	$ 73	$ 243,598	$ 232	$ (143,463)
Ending balance (in shares) at Dec. 31, 2017		7,303					7,303
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, adjusted balance	103,074	$ 73	243,598	232	(140,829)
Adoption of accounting standards	2,634				2,634
Net income, after equity in losses of unconsolidated affiliates	5,850				5,850
Issuance of common stock related to acquisitions	5,451	$ 1	5,450
Issuance of common stock related to acquisitions (in shares)		55
Issuance of common stock, net of shares withheld for employee taxes	2,762	$ 3	2,759
Issuance of common stock, net of shares withheld for employee taxes (in shares)		318
Stock-based compensation	5,227		5,227
Other comprehensive income (loss)	45			45	0
Ending balance at Dec. 31, 2018	$ 122,409	$ 77	$ 257,034	$ 277	$ (134,979)
Ending balance (in shares) at Dec. 31, 2018		7,676

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands, € in Millions, SFr in Millions	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income, after equity in losses from unconsolidated affiliates	$ 5,850	$ 9,456	$ 12,165
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	4,595	4,754	4,645
Deferred income tax (benefit) expense	(2,255)	8,864	3,932
Stock-based compensation	5,227	2,745	2,260
Other losses (gains)	80	(46)	(3)
Changes in operating assets and liabilities:
Accounts receivable	(1,076)	5,243	(4,700)
Inventories	6,046	(13,834)	(4,731)
Due from related parties	1	99	(59)
Lease receivable, current	(920)	(1,244)	(736)
Other current assets	(505)	(474)	883
Accounts payable	(2,020)	3,143	(688)
Due to related parties	(1,477)	250	1,356
Accrued liabilities and other	6,146	(1,380)	(351)
Lease receivable, non-current	(2,294)	(4,782)	(3,867)
Other non-current assets	(871)	(984)	(1,951)
Deferred revenue and other	(3,240)	(1,401)	(2,300)
Net cash provided by operating activities	13,287	10,409	5,855
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equity investment	0	0	115
Acquisition of intangible asset	(2,750)	0	0
Investments in unconsolidated affiliates	(8,091)	0	0
Purchase of minority interest	0	(13,757)	0
Purchases of property and equipment	(1,358)	(3,469)	(3,417)
Proceeds from disposition of property and equipment	25	57	0
Net cash used in investing activities	(12,174)	(17,169)	(3,302)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	4,034	2,452	2,382
Repurchase of common stock	(1,271)	(1,076)	(762)
Distributions to non-controlling interest members	(126)	(965)	0
Proceeds from line of credit borrowings	3,000	40,307	34,792
Repayments of line of credit borrowings	(3,000)	(34,979)	(34,262)
Repayments of other debt	(10)	(68)	(747)
Payment of debt issuance costs	0	(120)	0
Net cash provided by financing activities	2,627	5,551	1,403
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH	(10)	74	(52)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	3,730	(1,135)	3,904
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	9,659	10,794	6,890
CASH AND CASH EQUIVALENTS, END OF YEAR	13,389	9,659	10,794
NON-CASH TRANSACTIONS:
Transfers of equipment between inventory and property and equipment, net	1,449	1,637	1,250
Common stock issued as partial consideration of Cuattro acquisition transactions (See Note 3)	$ 5,450	$ 0	$ 6,349

OPERATIONS AND SUMMARY OF SIGNI

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Heska Corporation and its wholly-owned subsidiaries ("Heska", the "Company", "we" or "our") sell veterinary and animal health diagnostic and specialty products. Our offerings include Point of Care diagnostic laboratory instruments and supplies; digital imaging diagnostic products, software and services; vaccines; local and cloud-based data services; allergy testing and immunotherapy; and single-use offerings such as in-clinic diagnostic tests and heartworm preventive products. Our core focus is on supporting veterinarians in the canine and feline healthcare space. Basis of Presentation and Consolidation In the opinion of management, the accompanying Consolidated Financial Statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position of the Company as of December 31, 2018 and 2017 , as well as the results of our operations, statements of stockholders' equity and cash flows for the twelve months ended December 31, 2018 , 2017 and 2016 . The audited Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the SEC. Our audited Consolidated Financial Statements include our accounts and the accounts of our wholly-owned subsidiaries since their respective dates of acquisitions. All intercompany accounts and transactions have been eliminated in consolidation. Where our ownership of a subsidiary was less than 100%, the non-controlling interest is reported on our consolidated balance sheets. The non-controlling interest in our consolidated net income is reported as "Net income (loss) attributable to non-controlling interest" on our Consolidated Statements of Income. Our audited Consolidated Financial Statements are stated in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Reclassification To maintain consistency and comparability, certain amounts in the financial statements have been reclassified to conform to current year presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are required when establishing the allowance for doubtful accounts and the net realizable value of inventory; determining future costs associated with warranties provided; determining the period over which our obligations are fulfilled under agreements to license product rights and/or technology rights; evaluating long-lived and intangible assets and investments for estimated useful lives and impairment; estimating the useful lives of instruments under leasing arrangements; determining the allocation of purchase price under purchase accounting; estimating the expense associated with the granting of stock options; and determining the need for, and the amount of a valuation allowance on deferred tax assets. Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk consist of cash and cash equivalents and accounts receivable. We maintain the majority of our cash and cash equivalents with financial institutions that management believes are creditworthy in the form of demand deposits. We have no off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign currency hedging arrangements. Our accounts receivable balances are due largely from distribution partners, domestic veterinary clinics and individual veterinarians and other animal health companies. Henry Schein represented 12% and 17% of our consolidated accounts receivable at December 31, 2018 and 2017 , respectively. Merck entities represented approximately 10% and 15% of our consolidated accounts receivable at December 31, 2018 and 2017 , respectively. DLL represented 8% and 11% of our consolidated accounts receivable at December 31, 2018 and 2017 , respectively. Eli Lilly entities, including Elanco, represented approximately 32% and 4% of our consolidated accounts receivable at December 31, 2018 and 2017 , respectively. No other customer accounted for more than 10% of our consolidated accounts receivable at December 31, 2018 or 2017 . We have established an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at net realizable value. From time to time, our customers are unable to meet their payment obligations. We continuously monitor our customers' credit worthiness and use our judgment in establishing a provision for estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified. While such credit losses have historically been within our expectations and the provisions established, there is no assurance that we will continue to experience the same credit loss rates that we have in the past. A significant change in the liquidity or financial position of our customers could have a material adverse impact on the collectability of accounts receivable and our future operating results. Changes in allowance for doubtful accounts are summarized as follows (in thousands): Years Ended December 31, 2018 2017 2016 Balances at beginning of period $ 215 $ 237 $ 189 Additions - charged to expense 104 168 163 Deductions - write offs, net of recoveries (74 ) (190 ) (115 ) Balances at end of period $ 245 $ 215 $ 237 Cash and Cash Equivalents Cash and cash equivalents are stated at cost, which approximates market value, and include short-term, highly liquid investments with original maturities of less than three months. We valued our foreign cash accounts at the spot market foreign exchange rate as of each balance sheet date, with changes due to foreign exchange fluctuations recorded in current earnings. We held 1.6 million and 1.1 million Euros at December 31, 2018 and 2017 , respectively. We held 0.2 million and 0.1 million Swiss Francs at December 31, 2018 and 2017 , respectively. The majority of our cash and cash equivalents are held at U.S.-based or Swiss-based financial institutions in accounts not insured by governmental entities. Fair Value of Financial Instruments Our financial instruments consist of cash and cash equivalents, short-term trade receivables and payables and the Company's revolving line of credit. The carrying values of cash and cash equivalents and short-term trade receivables and payables approximate fair value because of the short-term nature of the instruments. The fair value of our line of credit balance is estimated based on current rates available for similar debt with similar maturities and collateral, and at December 31, 2018 and 2017 , approximates the carrying value due primarily to the floating rate of interest on such debt instruments. Inventories Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method. Inventory we manufacture includes the cost of material, labor and overhead. If the cost of inventories exceeds estimated net realizable value, provisions are made to reduce the carrying value to estimated net realizable value. This estimate is calculated utilizing various information including assumptions of future market demand, market conditions and remaining shelf life. Inventories, net consist of the following (in thousands): December 31, 2018 2017 Raw materials $ 15,000 $ 18,465 Work in process 3,592 4,296 Finished goods 8,085 11,465 Allowance for excess or obsolete inventory (1,573 ) (1,630 ) $ 25,104 $ 32,596 Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. When an item is sold or retired, the cost and related accumulated depreciation is relieved and the resulting gain or loss, if any, is recognized in the Consolidated Statements of Income. We provide for depreciation primarily using the straight-line method by charges to income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Building 10 to 20 years Machinery and equipment 2 to 7 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 5 years Leasehold and building improvements 5 to 15 years We capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Qualifying costs incurred during the application development stage, which consist primarily of internal payroll and direct fringe benefits and external direct project costs, including labor and travel, are capitalized and amortized on a straight-line basis over the estimated useful life of the asset, which range from three to five years. Costs incurred during the preliminary project and post-implementation and operation phases are expensed as incurred. These costs are general and administrative in nature and related primarily to the determination of performance requirements, data conversion and training. Investments in Unconsolidated Affiliates Investments in unconsolidated affiliates are measured and recorded as either non-marketable equity securities or equity method investments. Non-marketable equity securities are equity securities without readily determinable fair value that are measured and recorded using a measurement alternative which measures the securities at cost minus impairment, if any, plus or minus changes from qualifying observable price changes. Equity method investments are equity securities in investees we do not control but over which we have the ability to exercise significant influence. When the equity method of accounting is determined to be appropriate, the initial measurement of the investment includes the cost of the investment and all direct transaction costs incurred to acquire the investment. Equity method investments are measured at cost minus impairment, if any, plus or minus our share of equity method investee income or loss, which will be recorded as a separate line on the income statement. Both types of investments will be evaluated for impairment if a triggering event occurs. Goodwill, Intangible and Other Long-Lived Assets Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the identical asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to the Company. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require significant assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When material, we utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. We assess goodwill for impairment annually, at the reporting unit level, in the fourth quarter and whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more-likely-than-not that the estimated fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the comparison of the estimated fair value of the reporting unit to the carrying value. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, we determine that is it more-likely-than-not that the estimated fair value of a reporting is less than its carrying amount, we would then estimate the fair value of the reporting unit and compare it to the carrying value. If the carrying value exceeds the estimated fair value we would recognize an impairment for the difference; otherwise, no further impairment test would be required. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to quantitative analysis. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. We performed qualitative assessments in the fourth quarters of 2018 , 2017, and 2016 and determined that no indications of impairment existed. We assess the realizability of intangible assets other than goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If an impairment review is triggered, we evaluate the carrying value of intangible assets based on estimated undiscounted future cash flows over the remaining useful life of the primary asset of the asset group and compare that value to the carrying value of the asset group. The cash flows that are used contain our best estimates, using appropriate and customary assumptions and projections at the time. If the net carrying value of an intangible asset exceeds the related estimated undiscounted future cash flows, an impairment to adjust the intangible asset to its fair value would be reported as a non-cash charge to earnings. If necessary, we would calculate the fair value of an intangible asset using the present value of the estimated future cash flows to be generated by the intangible asset, and applying a risk-adjusted discount rate. We had no impairments of our intangible assets during the years ended December 31, 2018, 2017, and 2016. Revenue Recognition We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which we adopted on January 1, 2018, using the modified retrospective transition approach. See "Adoption of New Accounting Pronouncements" below for impacts of adoption. We generate our CCA segment revenue through the sale of products, either by outright purchase by our customers or through a subscription agreement whereby our customers receive instruments and pay us a monthly fee for the usage of the instrument as well as the consumables needed to conduct testing. Outright sales to customers are the majority of both Point of Care imaging diagnostic transactions and the sale of pharmaceuticals and vaccines, while subscription placement is the majority of Point of Care laboratory transactions. For outright sales of products, revenue is recognized when control of the promised product or service is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services (the transaction price). Taxes assessed by governmental authorities and collected from the customer are excluded from our revenue recognition. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For instruments, consumables and most software licenses sold by the Company, control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership and where acceptance is not a formality, the customer must have accepted the product or service. Heska’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily transfer control and record revenue for product sales upon shipment. If a performance obligation to the customer with respect to a sales transaction remains unfulfilled following shipment (typically owed installation or acceptance by the customer), revenue recognition for that performance obligation is deferred until such commitments have been fulfilled. For extended warranty and service plans, control transfers to the customer over the term of the arrangement. Revenue for extended warranties and service is recognized based upon the period of time elapsed under the arrangement. Our revenue under subscription agreements relates to OTL arrangements or STL arrangements. Determination of an OTL or STL is primarily determined as a result of the length of the contract as compared to the estimated useful life of the instrument, among other factors. Leases are outside of the scope of ASC 606 and are therefore accounted for in accordance with ASC 840 , Leases . A STL would result in earlier recognition of instrument revenue as compared to an OTL, which is generally upon installation of the instruments. The cash collected under both arrangements is over the term of the contract. The cost of the customer-leased instruments is removed from inventory and recognized in the Consolidated Statements of Income. Instrument lease revenue for OTL agreements is recognized on a straight-line basis over the life of the lease, and the costs of customer-leased instruments are recorded within property and equipment in the accompanying Consolidated Balance Sheets and depreciated over the instrument’s estimated useful life. The depreciation expense is reflected in cost of revenue in the accompanying Consolidated Statements of Income. The OTLs and STLs are not cancellable until after an initial term. OTLs may include a minimum utilization rather than a minimum supply credit. Adoption of ASC 842 (refer to Accounting Pronouncements Not Yet Adopted ) may impact the classification of this type of lease on a go-forward basis due to the change in lessor requirements within the new standard. For contracts with multiple performance obligations, the Company allocates the contracts' transaction price for each performance obligation on a relative standalone selling price basis using our best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate the standalone selling price is the price observed in standalone sales to customers of a prior period. Changes in these values can impact the amount of consideration allocated to each component of the contract. When prices in standalone sales are not available, we may use a cost-plus margin approach. Allocation of the transaction price is determined at the contracts' inception. The Company does not adjust the transaction price for the effects of a significant financing component when the period between the transfer of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. This allocation approach also applies to contracts for which a portion of the contract relates to a lease component. To the extent the transaction price includes variable consideration, such as future payments based on consumable usage over time, we apply judgment to determine if the variable consideration should be constrained. As the variable consideration is highly susceptible to factors outside of the Company’s influence, and the potential values contain a broad range of possible outcomes given all potential amounts of consumption that could occur, it is likely that a significant revenue reversal would occur should the variable consideration be estimated at an amount greater than the minimum stated amount until such a time as the uncertainty is resolved. We generate revenue within our OVP segment through contract manufacturing agreements with customers. The timing of revenue recognition of our customer contracts are generally recognized upon shipment or acceptance by our customer, under the same guidelines noted above for other outright product sales. Heska assessed the over-time criteria within ASC 606 and concluded that while products within this segment have no alternative use to Heska, as Heska is contractually prohibited to redirect the product to other customers, Heska does not have right to payment for performance to date. Therefore, point in time revenue recognition has been determined to be appropriate. Revenue generated from licensing arrangements is recognized based on the underlying term of the contract. Recording revenue from the sale of products involves the use of estimates and management's judgment. We must make a determination at the time of sale whether the customer has the ability and intent to make payments in accordance with arrangements. While we do utilize past payment history and, to the extent available for new customers, public credit information in making our assessment, the determination of whether collectability is reasonably assured is ultimately a judgment that must be made by management. We must also make estimates regarding our future obligations relating to returns, rebates, allowances and similar other programs. We do not generally allow return of products or instruments. Distributor rebates are recorded as a reduction to revenue. Refer to Note 2 for additional disclosures required by ASC 606. Prior to the adoption of ASC 606 on January 1, 2018, the Company recognized revenue in accordance with Topic 605, Revenue Recognition . Our policy was to recognize revenue when the applicable revenue recognition criteria were met, which generally included the following: persuasive evidence of an arrangement exists; delivery has occurred or services rendered; price is fixed or determinable; and collectability is reasonably assured. The adoption of the new revenue standard did not materially change our recognition from ASC 605 (as disclosed under Adoption of New Accounting Pronouncements ). Stock-based Compensation Stock-based compensation expense is measured at the grant date based upon the estimated fair value of the portion of the award that is ultimately expected to vest and is recognized as expense over the applicable vesting period of the award generally using the straight-line method. Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expenses. Advertising expenses were $0.2 million for each of the years ended December 31, 2018 , 2017 and 2016 . Income Taxes The Company records a current provision for income taxes based on estimated amounts payable or refundable on tax returns filed or to be filed each year. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates, in each tax jurisdiction, expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates, including the prior year impact of the enacted 21% U.S. corporate income tax rate under the Tax Cuts and Jobs Act, is recognized in operations in the period that includes the enactment date. The overall change in deferred tax assets and liabilities for the period measures the deferred tax expense or benefit for the period. Deferred tax assets are reduced by a valuation allowance based on a judgmental assessment of available evidence if the Company is unable to conclude that it is more likely than not that some or all of the deferred tax assets will be realized. Earnings Per Share Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Foreign Currency Translation The functional currency of our Swiss subsidiary is the Swiss Franc. Assets and liabilities of our Swiss subsidiary are translated using the exchange rate in effect at the balance sheet date. Revenue and expense accounts and cash flows are translated using an average of exchange rates in effect during the period. Cumulative translation gains and losses are shown in the Consolidated Balance Sheets as a separate component of stockholders' equity. Exchange gains and losses arising from transactions denominated in foreign currencies (i.e., transaction gains and losses) are recognized as a component of other income (expense) in current operations, as are exchange gains and losses on intercompany transactions expected to be settled in the near term. Warranty Costs The Company generally provides for the estimated cost of hardware and software warranties in the period the related revenue is recognized. The Company assesses the adequacy of its accrued warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. Should product failure rates differ from our estimates, actual costs could vary significantly from our expectations. Extended warranties are sold to our customers and revenue is recognized over the term of the warranty agreement, as expected costs are incurred. Adoption of New Accounting Pronouncements Effective January 1, 2018, we adopted FASB ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarification on accounting for modifications in share-based payment awards. The adoption of this guidance did not have an impact on our consolidated financial statements or related disclosures as there were no modifications to our share-based payment awards during 2018. In March 2018, we adopted FASB ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting to reflect the SEC's interpretive guidance released on December 22, 2017, when the 2017 Tax Act was signed into law. See Item 8, Note 4 - Income Taxes, for the impact of adoption to our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and has subsequently issued several supplemental and/or clarifying ASUs (collectively "ASC 606"). ASC 606 prescribes a single common revenue standard that replaces most existing GAAP revenue recognition guidance. ASC 606 outlines a five-step model, under which Heska recognized revenue as performance obligations within customer contracts are satisfied. ASC 606 is intended to provide more consistent interpretation and application of the principles outlined in the standard across filers in multiple industries and within the same industries compared to current practices, which should improve comparability. Along with the issuance of ASC 606, additional cost guidance was issued and codified under ASC 340-40 that outlines the requirements for capitalizing incremental costs of obtaining a contract and costs to fulfill a contract that meet certain capitalization criteria. On January 1, 2018, we adopted ASC 606 using the modified retrospective method for all customer contracts not yet completed as of the adoption date. Results for reporting periods beginning January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605, Revenue Recognition. We recorded an increase to beginning retained earnings of $2.6 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606. The impact to beginning retained earnings was primarily driven by the capitalization of certain costs to obtain our customer contracts, which were primarily sales-related commissions. The adoption of ASC 606 did not have a significant impact on our Consolidated Financial Statements as of and for the twelve months ended December 31, 2018 . As a result, comparisons of revenues and operating profit performance between periods are not affected by the adoption of this ASU. Accounting Pronouncements Not Yet Adopted In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with accounting for employee share-based compensation. ASU 2018-07 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted but no earlier than an entity’s adoption date of Topic 606. We will adopt the provisions of this ASU in the first quarter of 2019. Adoption of the new standard is not expected to have a material impact on our Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU permits companies to elect a reclassification of the disproportionate tax effects in accumulated other comprehensive income ("AOCI") caused by the Tax Cuts and Jobs Act of 2017 to retained earnings. The ASU also requires additional disclosures. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. We will adopt the provisions of this ASU in the first quarter of 2019. As of December 31, 2018, the Company does not have any disproportionate income tax effects in AOCI to reclassify, therefore, adoption of the new standard is not expected to have a material impact on our Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which require that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based upon historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for fiscal year beginning after December 15, 2018 is permitted. We will adopt the provisions of this ASU in the first quarter of 2020. We are currently evaluating the effect of this update on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes ASC 840, Leases . This update requires lessees to recognize a lease liability and a right-of-use ("ROU") asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. The accounting for lessors does not fundame

REVENUE

REVENUE	12 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE We separate our goods and services among: • Point of Care laboratory products including instruments, consumables and services; • Point of Care imaging products including instruments, software and services; • Single use pharmaceuticals, vaccines and diagnostic tests primarily related to companion animals; and • Other vaccines and pharmaceuticals. The following table summarizes our CCA revenue (in thousands): Year Ended December 31, 2018 2017 2016 Point of Care laboratory revenue: $ 57,375 $ 54,855 $ 48,817 Consumables 44,771 39,161 36,344 Sales-type leases 5,888 7,382 4,754 Outright instrument sales 4,922 6,391 5,684 Other 1,794 1,921 2,035 Point of Care imaging revenue: 22,832 21,907 29,609 Outright instrument sales 19,746 19,187 26,936 Service revenue 854 713 1,206 Operating type leases 2,232 2,007 1,467 Other CCA revenue: 28,717 28,429 28,972 Other pharmaceuticals, vaccines and diagnostic tests 28,265 28,008 28,596 Research and development, license and royalty revenue 452 421 376 Total CCA revenue $ 108,924 $ 105,191 $ 107,398 Revenue from our OVP segment consists of revenue generated from contract manufacturing agreements and from other license and research and development revenue. The following table summarizes our OVP revenue (in thousands): Year Ended December 31, 2018 2017 2016 Contract manufacturing $ 17,508 $ 23,490 $ 21,477 License, research and development 1,014 660 1,208 Total OVP revenue $ 18,522 $ 24,150 $ 22,685 Remaining Performance Obligations Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include noncancelable purchase orders, the non-lease portion of minimum purchase commitments under long-term supply arrangements, extended warranty, service and other long-term contracts. Remaining performance obligations do not include revenue from contracts with customers with an original term of one year or less, revenue from long-term supply arrangements with no minimum purchase requirements, revenue expected from purchases made in excess of the minimum purchase requirements, or revenue from instruments leased to customers. While the remaining performance obligation disclosure is similar in concept to backlog, the definition of remaining performance obligations excludes leases and contracts that provide the customer with the right to cancel or terminate for convenience with no substantial penalty, even if historical experience indicates the likelihood of cancellation or termination is remote. Additionally, the Company has elected to exclude contracts with customers with an original term of one year or less from remaining performance obligations while these contracts are included within backlog. As of December 31, 2018 , the aggregate amount of the transaction price allocated to remaining minimum performance obligations was approximately $84.1 million . As of December 31, 2018 , the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2019 $ 23,194 2020 19,556 2021 15,474 2022 12,281 2023 8,744 Thereafter 4,873 $ 84,122 Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, deferred revenue, and customer deposits and billings in excess of revenue recognized (contract liabilities) on the Consolidated Balance Sheets. In addition, the Company defers certain costs incurred to obtain contracts (contract costs). Contract Receivables Certain unbilled receivable balances related to long-term contracts for which we provide a free term to the customer but have recognized revenue are recorded in other current and other non-current assets. We have no further performance obligations related to these receivable balances and the collection of these balances occurs over the term of the underlying contract. The balances as of December 31, 2018 were $0.9 million and $3.3 million for current and non-current assets, respectively, shown net of related unearned interest. The balances as of December 31, 2017 were $0.7 million and $3.1 million for current and non-current assets, respectively. Contract Liabilities The Company receives cash payments from customers for licensing fees or other arrangements that extend for a specified term. These contract liabilities are classified as either current or long-term in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize revenue. As of December 31, 2018 and 2017 , contract liabilities were $9.6 million and $12.3 million , respectively, and are included within "Current portion of deferred revenue, and other" and "Deferred revenue, net of current portion" in the accompanying Consolidated Balance Sheets. The decrease in the contract liability balance during the year ended December 31, 2018 is $4.1 million of revenue recognized during the period, offset by $1.4 million of additional deferred sales. The decrease in the contract liability balance during the year ended December 31, 2017 is $4.0 million of revenue recognized during the period, offset by $2.5 million of additional deferred sales. Contract Costs The Company capitalizes certain direct incremental costs incurred to obtain customer contracts, typically sales-related commissions, where the recognition period for the related revenue is greater than one year. Contract costs are classified as current or non-current, and are included in "Other current assets" and "Other non-current assets" in the Consolidated Balance Sheets based on the timing of when the Company expects to recognize the expense. Contract costs are generally amortized into selling and marketing expense with a certain percentage recognized immediately based upon placement of the instrument with the remainder recognized on a straight-line basis (which is consistent with the transfer of control for the related goods or services) over the average term of the underlying contracts, approximately 6 years. Management assesses these costs for impairment at least quarterly on a portfolio basis and as “triggering” events occur that indicate it is more-likely-than-not that an impairment exists. The balance of contract costs as of December 31, 2018 and at the date of adoption was $2.5 million and $2.4 million , respectively. Amortization expense for the year ended December 31, 2018 was approximately $1.0 million , offset by approximately $1.0 million of additional contract costs capitalized. Contract liabilities are reported on the accompanying Consolidated Balance Sheets on a contract-by-contract basis whereas contract costs are calculated and reported on a portfolio basis.

ACQUISITION AND RELATED PARTY I

ACQUISITION AND RELATED PARTY ITEMS	12 Months Ended
	Dec. 31, 2018
Business Combinations and Related Party Disclosures [Abstract]
ACQUISITION AND RELATED PARTY ITEMS	ACQUISITION AND RELATED PARTY ITEMS Purchase Agreement for Certain Assets On December 21, 2018, the Company closed a transaction (the "Asset Acquisition") to acquire certain assets from Cuattro, LLC ("Cuattro"), all related to the CCA segment. Cuattro is owned by Kevin S. Wilson, the CEO and President of Heska Corporation. Pursuant to the Asset Acquisition, dated November 26, 2018, the Company issued 54,763 shares of the Company's common stock, $0.01 par value per share (the "Common Stock"), to Cuattro on the Closing Date, at an aggregate value equal to approximately $5.4 million based on the adjusted closing price per share of the Common Stock as reported on the Nasdaq Stock Market on the Asset Acquisition agreement date. These shares were issued to Cuattro in a private placement in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof and the safe harbor provided by Rule 506 of Regulation D promulgated thereunder. In addition to the Common Stock, the Company paid cash in the amount of $2.8 million to Cuattro as part of the transaction. The total purchase price was determined based on a valuation report from an independent third party. Part of the Asset Acquisition was an agreement to terminate the supply and license agreement that Heska had been operating under since the acquisition of Cuattro Veterinary USA, LLC. The Company evaluated the acquisition of the purchased assets under ASC 805, Business Combinations and ASU 2017-01, Business Combinations (Topic 805) and concluded that as substantially all of the fair value of the gross assets acquired is concentrated in an identifiable group of similar assets, the transaction did not meet the requirements to be accounted for as a business combination and therefore was accounted for as an asset acquisition. Accordingly, the purchase price of the purchased assets was allocated entirely to an identifiable intangible asset as identified below. In addition to the software assets acquired, Cuattro is obligated, without further compensation, to assist the Company with the implementation of third-party image hosting platform and necessary data migration. Intangible assets acquired, amortization method and estimated useful life as of December 31, 2018 was as follows (dollars in thousands) (life in years): Useful Life Amortization Method Fair Value Acquired Technology 10.00 Straight-line $8,200 Cuattro Veterinary, LLC On May 31, 2016, the Company closed a transaction (the "Merger") to acquire Cuattro Veterinary, LLC ("Cuattro International") from Kevin S. Wilson, and all of the members of Cuattro International (the "Members"). Pursuant to the Merger, the Company issued 175,000 shares of the Company’s common stock, $0.01 par value per share (the "Common Stock"), to the Members on the Closing Date, at an aggregate value equal to approximately $6.3 million based on the adjusted closing price per share of the Common Stock as reported on the Nasdaq Stock Market on the Merger closing date. These shares were issued to the Members in a private placement in reliance upon an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof and the safe harbor provided by Rule 506 of Regulation D promulgated thereunder. Effective on the Merger closing date, each of the Members executed lock-up agreements with the Company that restricted their ability to sell any of the shares of Common Stock received in the Merger until 180 days after the Merger closing date. In addition, the Company assumed approximately $1.5 million in debt as part of the transaction. Mr. Wilson is a founder of Cuattro International, Cuattro, LLC, Cuattro Software, LLC and Cuattro Medical, LLC. Mr. Wilson, Mrs. Wilson and trusts for the benefit of Mr. and Mrs. Wilson’s children and family own a 100% interest in Cuattro, LLC and a majority interest in Cuattro Medical, LLC. Cuattro, LLC owns a 100% interest in Cuattro Software, LLC and, prior to the Merger, owned a majority interest in Cuattro International. The Company recorded assets acquired and liabilities assumed at their estimated fair values. Intangible assets were valued based on a report from an independent third party. The goodwill associated with the acquisition is the result of expected synergies and expansion of the technology into additional markets. The following summarizes the aggregate consideration paid by the Company and the allocation of the purchase price (in thousands): Common stock issued - 175,000 shares $ 6,347 Debt assumed 1,535 Total fair value of consideration transferred $ 7,882 Accounts receivable $ 222 Inventories 39 Due from Cuattro, LLC 963 Property and equipment 80 Other tangible assets 164 Deferred tax asset 56 Intangible assets 2,521 Goodwill 5,783 Accounts payable (112 ) Deferred tax liability (905 ) Other assumed liabilities (929 ) Total fair value of consideration transferred $ 7,882 Intangible assets acquired, amortization method and estimated useful lives as of May 31, 2016 was as follows (dollars in thousands): Useful Life Amortization Method Fair Value Customer relationships 6.67 Straight-line $2,521 Cuattro International is a provider to international markets of digital radiography technologies for veterinarians. As a leading provider of advanced veterinary diagnostic and specialty products, we made the acquisition in an effort to combine Cuattro International's international reach with our domestic success in the imaging and Point of Care laboratory markets in the U.S. International markets represent a significant portion of worldwide veterinary revenues for which we intend to compete. As of the closing date of the Merger, Cuattro International was renamed Heska Imaging International, LLC, and the Company's interest in both Heska Imaging International, LLC ("International Imaging") and Heska Imaging US, LLC ("U.S. Imaging") was transferred to the Company's wholly-owned subsidiary, Heska Imaging Global, LLC ("Global Imaging"). Cuattro Veterinary USA, LLC On February 24, 2013, the Company acquired a 54.6% interest in Cuattro Veterinary USA, LLC (the "Acquisition"), which was subsequently renamed Heska Imaging US, LLC ("U.S. Imaging"). The remaining minority position (45.4)% in U.S. Imaging was subject to purchase by Heska under performance-based puts and calls following the audit of our financial statements for 2016 and 2017. The required performance criteria were met in 2016, we considered notice given on March 3, 2017 that the put option was being exercised and on May 31, 2017, we delivered $13.8 million in cash to obtain the remaining minority position in U.S. Imaging. Prior to the purchase of the minority position (the "Imaging Minority"), Shawna M. Wilson, Clint Roth, DVM, Steven M. Asakowicz, Rodney A. Lippincott, Kevin S. Wilson and Cuattro, LLC owned approximately 29.75% , 8.39% , 4.09% , 3.07% , 0.05% and 0.05% of U.S. Imaging, respectively. Kevin S. Wilson is the Chief Executive Officer and President of the Company and the spouse of Shawna M. Wilson. Steven M. Asakowicz and Rodney A. Lippincott each serve as Executive Vice President, Companion Animal Health Sales for the Company. On April 3, 2017, and in accordance with the terms of its Operating Agreement, U.S. Imaging distributed $2.1 million based on past operating performance, including $1.0 million to its minority interest members. As of December 31, 2017, U.S. Imaging accrued an additional $0.3 million distribution, including $0.1 million to its minority interest members, all of which was paid in January 2018. On June 1, 2017, the Company consolidated its assets and liabilities in the U.S. Imaging and International Imaging companies into Global Imaging, which was re-named Heska Imaging, LLC ("Heska Imaging"). Related Party Activities Cuattro, LLC charged Heska Imaging $ 4.6 million , $ 17.7 million and $ 14.5 million during 2018 , 2017 and 2016 , respectively, primarily related to digital imaging products, pursuant to an underlying supply contract that contains minimum purchase obligations, software and services as well as other operating expenses. The Company charged Cuattro, LLC $3 thousand , $0.1 million and $0.2 million in the years ended December 31, 2018 , 2017 and 2016 , respectively, for facility usage and other services. As of the December 21, 2018, the closing date of the aforementioned Asset Acquisition, all supply and license agreements with Cuattro have been terminated. The Company had receivables from Cuattro, LLC of approximately $0 and $1 thousand as of December 31, 2018 and 2017 , respectively which is included in "Due from - related parties" on the Company's Consolidated Balance Sheets. Heska Imaging owed Cuattro $0.2 million and $1.7 million as of December 31, 2018 and 2017 , respectively, which is included in "Due to - related parties" on the Company's Consolidated Balance Sheets. Heska Corporation charged U.S. Imaging $2.9 million from January 1, 2017 to May 31, 2017, prior to the acquisition of the minority interest, and $5.3 million for the year ended December 31, 2016 , for sales and other administrative related expenses.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income Taxes As of December 31, 2018 , the Company had a domestic federal net operating loss carryforward ("NOL"), of approximately $74.3 million and a domestic research and development tax credit carryforward of approximately $0.5 million . Our federal NOL is expected to expire as follows if unused: $68.3 million in 2019 through 2023 , $5.5 million in 2024 and 2025 and $0.5 million in 2027 and later. The Company is subject to income taxes in the U.S. federal jurisdiction, and various foreign, state and local jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. Although the U.S. and many states generally have statutes of limitations ranging from 3 to 5 years, those statutes could be extended due to the Company’s net operating loss and tax credit carryforward positions in a number of the Company’s tax jurisdictions. In the U.S., the tax years 2015 - 2017 remain open to examination by the Internal Revenue Service. Cash paid for income taxes for the years ended December 31, 2018 , 2017 and 2016 was $36 thousand , $213 thousand and $357 thousand , respectively. The components of income before income taxes were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Domestic $ 3,602 $ 18,188 $ 16,375 Foreign 205 181 129 $ 3,807 $ 18,369 $ 16,504 Temporary differences that give rise to the components of net deferred tax assets are as follows (in thousands): December 31, 2018 2017 Inventory $ 1,249 $ 1,321 Accrued compensation 110 103 Stock options 1,281 914 Research and development 476 442 Legal Settlement 1,678 — Deferred revenue 3,305 2,002 Property and equipment 3,065 2,531 Net operating loss carryforwards – domestic 17,088 22,627 Foreign tax credit carryforward 38 54 Capital leases (3,936 ) (3,757 ) Unremitted earnings for controlled foreign corporations — (50 ) Other — 194 24,354 26,381 Valuation allowance (10,233 ) (14,504 ) Total net deferred tax assets $ 14,121 $ 11,877 The components of the income tax (benefit) expense are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current income tax expense: Federal $ (115 ) $ — $ 197 State 192 6 179 Foreign 63 43 31 Total current expense $ 140 $ 49 $ 407 Deferred income tax (benefit) expense: Federal $ (1,877 ) $ 9,736 $ 3,545 State (378 ) (872 ) 387 Foreign — — — Total deferred (benefit) expense (2,255 ) 8,864 3,932 Total income tax (benefit) expense $ (2,115 ) $ 8,913 $ 4,339 The Company's income tax (benefit) expense relating to income (loss) for the periods presented differs from the amounts that would result from applying the federal statutory rate to that income (loss) as follows: Year Ended December 31, 2018 2017 2016 Statutory federal tax rate 21 % 34 % 34 % State income taxes, net of federal benefit (8 )% (5 )% 2 % Non-controlling interest in Heska Imaging US, LLC — % 1 % (3 )% Non-temporary stock option benefit (50 )% (30 )% (7 )% Meals and entertainment permanent difference 1 % — % — % GILTI permanent difference 1 % — % — % Other permanent differences 1 % 1 % (1 )% Change in tax rate — % 32 % — % Change in valuation allowance — % 16 % — % Other deferred differences (21 )% — % — % Other (1 )% — % 1 % Effective income tax rate (56 )% 49 % 26 % In 2018 , we had total income tax benefit of $2.1 million , including $2.3 million in domestic deferred income tax benefit, a non-cash benefit, and $0.1 million in current income tax expense. In 2017 , we had total income tax expense of $8.9 million , including $8.9 million in domestic deferred income tax expense, a non-cash expense, and $0.05 million in current income tax expense. In 2016 , we had total income tax expense of $4.3 million , including $3.9 million in domestic deferred income tax expense, a non-cash expense, and $0.4 million in current income tax expense. Income tax expense decreased in 2018 from 2017 from the recognition of $1.9 million in tax benefits related to stock based compensation deductions. The overall increase in tax expense in 2017 from 2016 was due to the re-measurement of our deferred tax assets (including the valuation allowance) due to the U.S. Tax Cuts and Jobs Act, offset by the reduction of tax expense from stock based compensation deductions. ASC 740 provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a "more-likely-than-not" recognition threshold before a benefit is recognized in the financial statements. As of December 31, 2018, the Company has not recorded a liability for uncertain tax positions. The Company would recognize interest and penalties related to uncertain tax positions in income tax (benefit) expense. No interest and penalties related to uncertain tax positions were accrued at December 31, 2018 . U.S. Tax Reform On December 22, 2017, the tax legislation commonly known as the U.S. Tax Cuts and Jobs Act (the "Act") was signed into law. This enactment resulted in a number of significant changes to U.S. federal income tax law for U.S. corporations. Most notably, the statutory U.S. federal corporate income tax rate was changed from 35% to 21% for corporations; a one-time transition tax via a mandatory deemed repatriation of post-1986 undistributed foreign earnings; a tax on global intangible low-taxed income (“GILTI”) for tax years beginning after December 31, 2017; the further limitation of the deductibility of share-based compensation of certain highly compensated employees; and the repeal of the corporate alternative minimum tax; amongst other things. Shortly after enactment, the SEC issued SAB 118, which provides guidance on accounting for the new legislation. Under SAB 118, an entity should recognize amounts for which accounting can be completed. Where accounting under ASC 740 is incomplete relative to certain income tax effects of tax reform, the entity should recognize provisional amounts and adjust such amounts as more information becomes available and disclose this information in its financial statements. The measurement period under SAB 118 is one year from date of enactment. The measurement period for these changes ended on December 22, 2018. In the fourth quarter of 2017, the Company recorded a provisional net inclusion amount of $38 thousand for the one-time transition tax. After finalizing the accounting for the transition tax, the Company recorded an additional $10 thousand for the net inclusion of the transition tax in the fourth quarter of 2018. The Company elected to pay this tax liability in one payment instead of the optional eight year period. As of December 31, 2018, the Company completed its analysis of the impact of the Act in accordance with SAB 118 and the amounts are no longer considered provisional. GILTI, added by the Act for years beginning after December 31, 2017, is the excess, if any, of the Company’s share of our foreign subsidiaries' (CFC) “net CFC tested income” over its “net deemed tangible income” for the tax year. For 2018, the Company has recorded a GILTI addition to taxable gross income of $230 thousand . The Company has elected to treat GILTI as a period cost instead of recording a deferred tax liability and to use the “tax law ordering approach” when assessing the need for a valuation allowance related to the potential loss of cash tax savings from net operating losses used to offset future GILTI. The Act made significant changes to IRC §162(m), limit on the deduction for excessive remuneration to covered employees of public corporations. IRC §162(m) disallows the Company from deducting the compensation of any covered employee which exceeds $1.0 million with respect to such employee, for the taxable year. For the limitation, the Company has elected to allocate compensation on a cash first approach. Tax deductible compensation will be allocated to cash-compensation first and a deferred tax asset will only be recorded for share-based compensation up to the limit of $1.0 million per covered employee per year. If cash-based compensation is expected to exceed the limitation, no deferred tax asset will be recorded for any share based compensation in that taxable year. Any excess compensation over the limitation will be a non-deductible expense to the Company and would increase our effective tax rate in future periods. As of December 31, 2017, Heska no longer asserted indefinite reinvestment under the exception noted in ASC 740-30-25-3, which states that the presumption that all undistributed earnings will be transferred to the parent entity may be overcome, and no income taxes shall be accrued by the parent entity. In 2017, we had an excess of the amount for financial reporting over the tax basis in our foreign subsidiaries and we recorded an estimated $0.2 million of deferred tax liability for the unremitted earnings of foreign subsidiaries. In 2018, tax liability from the GILTI tax resulted in an excess of the amount for tax over the financial reporting basis in our foreign subsidiaries. Therefore, in accordance with ASC 740, we have removed our deferred tax liability and have not recorded a deferred tax asset for the excess tax basis in unremitted earnings from foreign subsidiaries.

SALES-TYPE LEASES

SALES-TYPE LEASES	12 Months Ended
	Dec. 31, 2018
Leases [Abstract]
SALES-TYPE LEASES	SALES-TYPE LEASES In our CCA segment, primarily related to our Point of Care laboratory products, the Company enters into sales-type leases as part of our subscription agreements. Detail of scheduled minimum lease receipts for our sales-type leases are as follows (in thousands): Year Ending December 31, 2019 $ 2,989 2020 3,163 2021 3,089 2022 2,715 2023 1,854 Thereafter 1,087 $ 14,897

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share ("EPS") is computed by dividing net income attributable to the Company by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the numerator is increased to exclude charges that would not have been incurred, and the denominator is increased to include the number of additional common shares that would have been outstanding (using the if-converted and treasury stock methods), if securities containing potentially dilutive common shares (stock options and restricted stock awards but excluding options to purchase fractional shares resulting from the Company's December 2010 1-for- 10 reverse stock split) had been converted to common shares, and if such assumed conversion is dilutive. The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted earnings per share for the years ended December 31, 2018 , 2017 and 2016 (in thousands, except per share data): Years ended December 31, 2018 2017 2016 Net income attributable to Heska Corporation $ 5,850 $ 9,953 $ 10,508 Basic weighted-average common shares outstanding 7,220 7,026 6,783 Assumed exercise of dilutive stock options and restricted stock awards 636 616 578 Diluted weighted-average common shares outstanding 7,856 7,642 7,361 Basic earnings per share $ 0.81 $ 1.42 $ 1.55 Diluted earnings per share $ 0.74 $ 1.30 $ 1.43 The following stock options and restricted awards were excluded from the computation of diluted earnings per share because they would have been anti-dilutive (in thousands): Years ended December 31, 2018 2017 2016 Stock options 111 123 234

INVESTMENTS IN UNCONSOLIDATED A

INVESTMENTS IN UNCONSOLIDATED AFFILIATES	12 Months Ended
	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
INVESTMENTS IN UNCONSOLIDATED AFFILIATES	INVESTMENTS IN UNCONSOLIDATED AFFILIATES The carrying values of investments in unconsolidated affiliates, categorized by type of investment, is as follows (in thousands): December 31, 2018 Equity method investment $ 5,000 Non-marketable equity security investment 3,018 $ 8,018 Equity Method Investment On September 24, 2018, the Company invested $5.1 million , including costs, in exchange for a 28.7% interest of a business as part of our product development strategy. The Company accounts for this investment using the equity method of accounting. Under the equity method, the carrying value of the investment is adjusted for the Company's proportionate share of the investee's reported earnings or losses with the corresponding share of earnings or losses reported as Equity in Losses of Unconsolidated Affiliates, listed below Net income (loss) within the Consolidated Statements of Income. Additionally, the Company entered into a 15 -year Manufacturing Supply Agreement, which grants the Company global exclusivity to specified goods. Non-Marketable Equity Security Investment On August 8, 2018, the Company invested $3.0 million , including costs, in MBio Diagnostics, Inc. ("MBio"), in exchange for 1,714,285 shares of Series B-3 preferred stock, representing a 6.9% interest in MBio. The Company's investment in MBio is a non-marketable equity security, recorded using the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. As part of the agreement, the Company entered into a Supply and License Agreement with MBio, which provides that MBio produce and commercialize products that will enhance the Company's diagnostic portfolio. As part of this agreement, the Company made upfront payment to MBio of $1.0 million related to a worldwide exclusive license agreement over a 20 -year period, recorded in both short and long-term other assets. In addition, the agreement provides for an additional contingent payment from Heska to MBio of $10.0 million , relating to the successful achievement of sales milestones. This potential future milestone payment has not yet been accrued as it is not deemed by the Company to be probable at this time. Both parties in this arrangement are active participants and are exposed to significant risks and rewards dependent on the commercial success of the activities of the collaboration. The parties are actively working on developing and testing the product as well as funding the research and development. Heska classifies the amounts paid for MBio's research and development work within the CCA segment research and development operating segments. Expense is recognized ratably when incurred and in accordance with the development plan. The Company evaluated both its equity method investment and non-marketable equity security investment for impairment as of December 31, 2018 , and determined that no indications of impairment existed.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOOWILL AND OTHER INTANGIBLES	GOODWILL AND OTHER INTANGIBLES The following summarizes the changes in goodwill during the years ended December 31, 2018 and 2017 (in thousands): Carrying amount, December 31, 2016 $ 26,647 Foreign currency adjustments 40 Carrying amount, December 31, 2017 $ 26,687 Foreign currency adjustments (8 ) Carrying amount, December 31, 2018 $ 26,679 Other intangibles assets, net consisted of the following as of December 31, 2018 and 2017 (in thousands): 2018 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology $ 8,200 $ — $ 8,200 $ — $ — $ — Customer relationships and other 3,303 (1,739 ) 1,564 3,309 (1,351 ) 1,958 Total intangible assets $ 11,503 $ (1,739 ) $ 9,764 $ 3,309 $ (1,351 ) $ 1,958 Amortization expense relating to other intangibles is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Amortization expense $ 388 $ 388 $ 230 Estimated amortization expense related to intangibles for each of the five years from 2019 through 2023 and thereafter is as follows (in thousands): Year Ending December 31, 2019 $ 1,208 2020 1,208 2021 1,203 2022 1,198 2023 851 Thereafter 4,096 $ 9,764

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT Property and equipment, net, consisted of the following (in thousands): December 31, 2018 2017 Land $ 377 $ 377 Building 2,978 2,868 Machinery and equipment 33,087 32,188 Office furniture and equipment 1,687 1,665 Computer hardware and software 4,704 4,579 Leasehold and building improvements 9,953 8,156 Construction in progress 1,274 3,531 54,060 53,364 Less accumulated depreciation (38,079 ) (36,033 ) Total property and equipment, net $ 15,981 $ 17,331 The Company has subscription agreements whereby its instruments in inventory may be placed in a customer's location on a rental basis. The cost of these instruments is transferred to machinery and equipment and depreciated, typically over a five to seven -year period depending on the circumstance under which the instrument is placed with the customer. Our cost of equipment under operating leases at December 31, 2018 and 2017 , respectively, was $10.8 million and $10.8 million , before accumulated depreciation of $6.1 million and $5.0 million . Depreciation expense for property and equipment was $4.2 million , $4.3 million and $4.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2018
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): 2018 2017 Accrued payroll and employee benefits $ 759 $ 1,209 Accrued property taxes 632 661 Accrued settlement (see Note 13) 6,750 — Other 2,001 2,204 Total accrued liabilities $ 10,142 $ 4,074 Other accrued liabilities consists of items that are individually less than 5% of total current liabilities.

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
CAPITAL STOCK	CAPITAL STOCK Stock Plans We have two stock option plans which authorize granting of stock options, restricted and stock purchase rights to our employees, officers, directors and consultants. In 1997, the board of directors adopted the 1997 Stock Incentive Plan (the "1997 Plan") and terminated two prior stock plans. All shares that remained available for grant under the terminated plans were incorporated into the 1997 Plan, including shares subsequently canceled under prior plans. In May 2012 , the stockholders approved an amendment to the 1997 Plan allowing for an increase of 250,000 shares and an annual increase through 2016 based on the number of non-employee directors serving as of our Annual Meeting of Stockholders, subject to a maximum of 45,000 shares per year. In May 2016, the stockholders approved a further amendment to the 1997 Plan to authorize an additional 500,000 shares to be available for issuance thereunder. In May 2018, the stockholders approved a further amendment to the 1997 Plan to authorize an additional 250,000 shares to be available for issuance thereunder. In December 2018, the Company's Board of Directors amended the 1997 Plan and renamed it the "Stock Incentive Plan". In May 2003 , the stockholders approved a new plan, the 2003 Equity Incentive Plan (the "2003 Plan"), which allows for the granting of stock options/restricted stock for up to 239,050 shares of the Company's common stock. The number of shares reserved for issuance under both plans as of December 31, 2018 was 252,448 . Stock Options The stock options granted by the Board of Directors may be either incentive stock options ("ISOs") or non-qualified stock options ("NQs"). The exercise price for options under all of the plans may be no less than 100% of the fair value of the underlying common stock. Options granted will expire no later than the tenth anniversary subsequent to the date of grant or three months following termination of employment, except in cases of death or disability, in which case the options will remain exercisable for up to twelve months. Under the terms of the 1997 Plan, in the event we are sold or merged, outstanding options will either be assumed by the surviving corporation or vest immediately. There are four key inputs to the Black-Scholes model which we use to estimate the fair value for options which we issue: expected term, expected volatility, risk-free interest rate and expected dividends, all of which require us to make estimates. Our estimates for these inputs may not be indicative of actual future performance and changes to any of these inputs can have a material impact on the resulting estimated fair value calculated for the option. Our expected term input was estimated based on our historical experience for time from option grant to option exercise for all employees in 2018 , 2017 and 2016 . We treated all employees in one grouping in all three years. Our expected volatility input was estimated based on our historical stock price volatility in 2018 , 2017 and 2016 . Our risk-free interest rate input was determined based on the U.S. Treasury yield curve at the time of option issuance in 2018 , 2017 and 2016 . Our expected dividends inputs were zero in all periods as we did not anticipate paying dividends in the foreseeable future. We recognize forfeitures as they occur. Weighted average assumptions used in 2018 , 2017 and 2016 for each of these four key inputs are listed in the following table: 2018 2017 2016 Risk-free interest rate 2.66% 1.76% 1.76% Expected lives 4.9 years 4.8 years 4.5 years Expected volatility 40% 41% 41% Expected dividend yield 0% 0% 0% A summary of our stock option plans, excluding options to purchase fractional shares resulting from our December 2010 1-for- 10 reverse stock split, is as follows: Year Ended December 31, 2018 Options Weighted Average Exercise Price Outstanding at beginning of period 630,847 $ 29.312 Granted at Market 153,700 $ 75.244 Forfeited (18,978 ) $ 53.010 Expired (896 ) $ 65.414 Exercised (144,120 ) $ 25.740 Outstanding at end of period 620,553 $ 40.741 Exercisable at end of period 386,176 $ 21.214 The total estimated fair value of stock options granted were computed to be approximately $4.4 million , $1.0 million and $3.2 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The amounts are amortized ratably over the vesting periods of the options. The weighted average estimated fair value of options granted was computed to be approximately $28.81 , $37.35 and $24.59 during the years ended December 31, 2018 , 2017 and 2016 , respectively. The total intrinsic value of options exercised was $10.5 million , $17.7 million and $9.9 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The cash proceeds from options exercised was $3.2 million , $1.8 million and $1.9 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. The following table summarizes information about stock options outstanding and exercisable at December 31, 2018 . Options Outstanding Options Exercisable Exercise Prices Number of Weighted Weighted Number of Weighted Weighted $4.50 - $7.36 167,737 3.61 $ 6.565 167,737 3.61 $ 6.565 $7.37 - $32.21 128,465 5.26 $ 15.777 127,261 5.25 $ 15.631 $32.22 - $62.50 75,972 7.03 $ 39.745 54,133 7.04 $ 39.647 $62.51 - $69.77 130,000 9.18 $ 69.770 — 0.00 $ — $69.78 - $108.25 118,379 8.40 $ 85.020 37,045 8.12 $ 79.793 $4.50 - $108.25 620,553 6.45 $ 40.741 386,176 5.06 $ 21.214 As of December 31, 2018 , there was approximately $5.3 million of total unrecognized compensation cost related to outstanding stock options. That cost is expected to be recognized over a weighted-average period of 1.9 years with all cost to be recognized by the end of October 2022, assuming all options vest according to the vesting schedules in place at December 31, 2018 . As of December 31, 2018 , the aggregate intrinsic value of outstanding options was approximately $28.9 million and the aggregate intrinsic value of exercisable options was approximately $25.2 million . Employee Stock Purchase Plan Under the 1997 Employee Stock Purchase Plan (the "ESPP"), we are authorized to issue up to 450,000 shares of common stock to our employees, of which 429,729 had been issued as of December 31, 2018 . On May 5, 2015, our shareholders approved the amendment and restatement of the ESPP, including a 75,000 share increase to 450,000 total shares authorized under the ESPP as well as changes discussed below as compared to the ESPP prior to the amendment and restatement. Employees who are expected to work at least 20 hours per week and 5 months per year are eligible to participate and can choose to have up to 10% of their compensation withheld to purchase our stock under the ESPP when they choose to withhold a whole percentage of their compensation. Beginning on July 1, 2013, our ESPP had a 27 -month offering period and three -month accumulation periods ending on each March 31, June 30, September 30 and December 31. The purchase price of stock on March 31, June 30, September 30 and December 31 was the lesser of (1) 85% of the fair market value at the time of purchase and (2) the greater of (i) 95% of the fair market value at the beginning of the applicable offering period or (ii) 65% of the fair market value at the time of purchase. In addition, participating employees may purchase shares under the ESPP at the beginning of an applicable offering period for a purchase price of stock equal to 95% of the fair market value at such time or at 5 pm on a day other than March 31, June 30, September 30 and December 31 during the applicable offering period for a purchase price of stock equal to 95% of the fair market value at purchase. Beginning April 1, 2015, employees may elect to withhold a positive fixed amount from each compensation payment in addition to the previous approach of withholding a whole percentage of such compensation payment, with all withholding for a given employee subject to a maximum monthly amount of $2,500 following the amendment and restatement as opposed to a $25,000 maximum annual amount prior to the amendment and restatement. For offering periods beginning on or after April 1, 2015, the purchase price of stock on March 31, June 30, September 30 and December 31 is to be the lesser of (1) 85% of the fair market value at the time of purchase and (2) the greater of (i) 85% of the fair market value at the beginning of the applicable offering period, (ii) the fair market value at the beginning of the applicable offering period less 1 cent and (iii) 65% of the fair market value at the time of purchase. In addition, participating employees may elect to purchase shares under the ESPP at the beginning of an applicable offering period for a purchase price of stock equal to the greater of (1) 85% of the fair market value at the beginning of the applicable offering period and (2) the fair market value at the beginning of the applicable offering period less 1 cent or at 5 pm on a day other than March 31, June 30, September 30 and December 31 during the applicable offering period for a purchase price of stock equal to the greater of (1) 85% of the fair market value at the time of purchase and (2) the fair market value at the time of purchase less 1 cent. We issued 10,078 , 10,983 and 17,826 shares under the ESPP for the years ended December 31, 2018 , 2017 and 2016 , respectively. For the years ended December 31, 2018 , 2017 and 2016 , we estimated the fair values of stock purchase rights granted under the ESPP using the Black-Scholes pricing model and the following weighted average assumptions: 2018 2017 2016 Risk-free interest rate 1.67% 0.74% 0.54% Expected lives 1.2 years 1.2 years 1.2 years Expected volatility 42% 45% 42% Expected dividend yield 0% 0% 0% The weighted-average fair value of the purchase rights granted was $18.14 , $15.72 and $8.23 per share for the years ended December 31, 2018 , 2017 and 2016 , respectively. Restricted Stock We have granted non-vested restricted stock awards (“restricted stock”) to management and directors pursuant to the 1997 Plan. The restricted stock awards have varying vesting periods, but generally become fully vested between one and four years after the grant date, depending on the specific award, performance targets met for performance based awards granted to management, and vesting period for time based awards. Management performance based awards are granted at the target amount of shares that may be earned. We valued the restricted stock awards related to service and/or company performance targets based on grant date fair value and expense over the period when achievement of those conditions is deemed probable. For restricted stock awards related to market conditions, we utilize a Monte Carlo simulation model to estimate grant date fair value and expense over the requisite period. We recognize forfeitures as they occur. The following table summarizes restricted stock transactions for the year ended December 31, 2018 : RSAs Weighted-Average Grant Date Fair Value Per Award Non-vested as of December 31, 2017 124,943 $ 57.67 Granted 190,730 $ 71.77 Vested (56,243 ) $ 28.97 Forfeited — — Non-vested as of December 31, 2018 259,430 $ 74.26 The weighted average grant date fair value of awards granted during the year was $71.77 , $82.36 and $33.64 for the years ended December 31, 2018, 2017 and 2016, respectively. Fair value of restricted stock vested was $4.4 million , $3.9 million and $1.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018 , there was approximately $3.0 million of total unrecognized compensation cost related to restricted stock. The Company expects to recognize this expense over a weighted average period of 1.6 years. As of December 31, 2018, we reviewed each of the underlying corporate performance targets and determined that approximately 167,000 of shares of common stock were related to corporate performance targets in which we did not deem achievement probable. No compensation expense had been recorded at any period prior to December 31, 2018. The unrecognized compensation cost associated with the restricted stock awards not deemed probable, based on grant date fair value, is approximately $13.5 million . Any change in the probability determination could accelerate the recognition of this expense. Restrictions on the transfer of Company stock The Company's Restated Certificate of Incorporation, as amended (the "Certificate of Incorporation"), places restrictions (the "Transfer Restrictions") on the transfer of the Company's stock that could adversely affect the Company's ability to utilize its domestic Federal Net Operating Loss Position. In particular, the Transfer Restrictions prevent the transfer of shares without the approval of the Company's Board of Directors if, as a consequence of such transfer, an individual, entity or groups of individuals or entities would become a 5-percent holder under Section 382 of the Internal Revenue Code of 1986, as amended, and the related Treasury regulations, and also prevents any existing 5 -percent holder from increasing his or her ownership position in the Company without the approval of the Company's Board of Directors. Any transfer of shares in violation of the Transfer Restrictions (a "Transfer Violation") shall be void ab initio under the Certificate of Incorporation, and the Company's Board of Directors has procedures under the Certificate of Incorporation to remedy a Transfer Violation including requiring the shares causing such Transfer Violation to be sold and any profit resulting from such sale to be transferred to a charitable entity chosen by the Company's Board of Directors in specified circumstances.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income consisted of the following (in thousands): Minimum pension liability Foreign currency translation Total accumulated other comprehensive income Balances at December 31, 2016 $ (501 ) $ 598 $ 97 Other comprehensive income 12 123 135 Balances at December 31, 2017 (489 ) 721 232 Other comprehensive income (loss) 70 (25 ) 45 Balances at December 31, 2018 $ (419 ) $ 696 $ 277

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Royalty Agreements The Company holds certain rights to market and manufacture all products developed or created under certain research, development and licensing agreements with various entities. In connection with such agreements, the Company has agreed to pay the entities royalties on net product sales. Royalties of $0.3 million became payable under these agreements in the years ended December 31, 2018 and 2017 , and $0.4 million in the year ended December 31, 2016 . Operating Leases The Company has entered into operating leases for its office and research facilities, vehicles and certain equipment with future minimum payments as of December 31, 2018 as follows (in thousands): Year Ending December 31, 2019 $ 2,134 2020 1,993 2021 1,859 2022 1,765 2023 2,357 Thereafter — $ 10,108 The Company had rent expense, relating to office space, of $1.5 million for the year ended December 31, 2018 and $ 1.6 million for the years ended December 31, 2017 and 2016 . Other rent expense totaled $0.4 million for the years ended December 31, 2018 and 2017 and $0.3 million for the year ended December 31, 2016 . Litigation From time to time, the Company may be involved in litigation relating to claims arising out of its operations. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred, and the amount can be reasonably estimated. On October 10, 2018, we reached an agreement in principle to settle the complaint that was filed against the Company by Shaun Fauley on March 12, 2015 in the U.S. District Court Northern District of Illinois alleging our transmittal of unauthorized faxes in violation of the federal Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005, as a class action. The settlement, which was approved by the court on February 28, 2019, will require us, among other things, to make available a total of $6.75 million to pay class members, as well as to pay attorneys' fees and expenses to legal counsel to the class. The Company has recorded an estimated loss provision of approximately $7.0 million in 2018 in connection with the settlement agreement and expenses associated with the matter, which is included in general and administrative expenses in the Consolidated Statements of Income. The Company does not have insurance coverage for the Fauley Complaint. At December 31, 2018 , the Company was not a party to any other legal proceedings that were expected, individually or in the aggregate, to have a material adverse effect on our business, financial condition or operating results. Warranties The Company's current terms and conditions of sale include a limited warranty that its products and services will conform to published specifications at the time of shipment and a more extensive warranty related to certain of its products. The Company also sells a renewal warranty for certain of its products. The typical remedy for breach of warranty is to correct or replace any defective product, and if not possible or practical, the Company will accept the return of the defective product and refund the amount paid. Historically, the Company has incurred minimal warranty costs. The Company's warranty reserve was $0.2 million as of December 31, 2018 and 2017 .

INTEREST AND OTHER (INCOME) EXP

INTEREST AND OTHER (INCOME) EXPENSE	12 Months Ended
	Dec. 31, 2018
Other Income and Expenses [Abstract]
INTEREST AND OTHER (INCOME) EXPENSE	INTEREST AND OTHER (INCOME) EXPENSE Interest and other (income) expense, net, consisted of the following (in thousands): Year Ended December 31, 2018 2017 2016 Interest income $ (261 ) $ (167 ) $ (124 ) Interest expense 310 245 160 Other expense (income), net (62 ) (228 ) (7 ) $ (13 ) $ (150 ) $ 29 Cash paid for interest was $224 thousand , $206 thousand and $78 thousand for the years ended December 31, 2018 , 2017 and 2016 , respectively.

CREDIT FACILITY AND LONG-TERM D

CREDIT FACILITY AND LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
CREDIT FACILITY AND LONG-TERM DEBT	CREDIT FACILITY AND LONG-TERM DEBT On July 27, 2017, and as subsequently amended in May and December of 2018, we entered into a Credit Agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A. ("Chase") which provides for a revolving credit facility of up to $30.0 million (the "Credit Facility"). The Credit Facility provides us with the ability to borrow up to $30.0 million , although the amount of the Credit Facility may be increased by an additional $20.0 million up to a total of $50.0 million subject to receipt of additional lender commitments and other conditions. Any interest on borrowings due is to be charged at either the (i) rate of interest per annum publicly announced from time to time by Chase at its prime rate in effect at its principal offices in New York City, subject to a floor, minus 1.65% , or (ii) the interest rate per annum equal to (a) LIBOR for the interest period in effect multiplied by (b) Chase's Statutory Reserve Rate (as defined in the Credit Agreement), plus 1.10% and payable monthly. There is an annual minimum interest charge of $60 thousand under the Credit Agreement. Chase holds first right of priority over all other liens, if any were to exist. Borrowings under the Credit Facility are subject to certain financial and non-financial covenants and are available for various corporate purposes, including general working capital, capital investments and certain permitted acquisitions. The Credit Agreement also permits us to issue letters of credit, although there are currently none outstanding. The maturity date of the Credit Facility is July 27, 2020. The foregoing discussion of the Credit Facility is a summary only and is qualified in its entirety by reference to the full text of the Credit Agreement, a copy of which has been filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on August 2, 2017. Additionally, a Facility Amendment has been filed as an exhibit to the Company's Current Report on Form 10-Q filed with the SEC on August 8, 2018 followed by a second Facility Amendment which has been filed as an exhibit to this Annual Report on Form 10-K for the year ended December 31, 2018 . As of December 31, 2018 and 2017 , we had $6.0 million of borrowings outstanding on this line of credit and we were in compliance with all financial covenants. In connection with the Credit Agreement, the Company incurred debt issuance costs of $120 thousand . These costs are included in other non-current assets on the Company's Consolidated Balance Sheets, and will be amortized to interest expense ratably over the term of the agreement. Concurrent with the Credit Agreement, we repaid all outstanding balances and closed our $ 15.0 million asset-based revolving line of credit with Wells Fargo, which had a maturity date of December 31, 2017.

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Company's two reportable segments are CCA and OVP. The CCA segment includes Point of Care diagnostic laboratory instruments and consumables, and Point of Care digital imaging diagnostic instruments and software services as well as single use diagnostic and other tests, pharmaceuticals and vaccines, primarily for canine and feline use. These products are sold directly by the Company as well as through independent third party distributors and through other distribution relationships. CCA segment products manufactured at the Des Moines, Iowa production facility included in the OVP segment's assets are transferred at cost and are not recorded as revenue for the OVP segment. The OVP segment includes private label vaccine and pharmaceutical production, primarily for cattle, in addition to other small mammals. All OVP products are sold by third parties under third party labels. Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands): Year Ended December 31, 2018 Core Other Vaccines and Total Total revenue $ 108,924 $ 18,522 $ 127,446 Operating income 2,040 1,754 3,794 Income before income taxes 2,053 1,754 3,807 Investments in unconsolidated affiliates 8,018 — 8,018 Total assets 133,586 22,866 156,452 Net assets 96,129 26,280 122,409 Capital expenditures 180 1,178 1,358 Depreciation and amortization 3,369 1,226 4,595 Year Ended December 31, 2017 Core Other Vaccines and Total revenue $ 105,191 $ 24,150 $ 129,341 Operating income 12,656 5,563 18,219 Income before income taxes 12,828 5,541 18,369 Investments in unconsolidated affiliates — — — Total assets 111,625 23,819 135,444 Net assets 75,984 24,456 100,440 Capital expenditures 209 3,260 3,469 Depreciation and amortization 3,736 1,018 4,754 Year Ended December 31, 2016 Core Other Vaccines and Total revenue $ 107,398 $ 22,685 $ 130,083 Operating income 13,015 3,518 16,533 Income before income taxes 12,938 3,566 16,504 Investments in unconsolidated affiliates — — — Total assets 110,995 19,849 130,844 Net assets 68,072 18,903 86,975 Capital expenditures 1,135 2,282 3,417 Depreciation and amortization 3,800 845 4,645 Revenue is attributed to individual countries based on customer location. Total revenue by principal geographic area was as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 U.S. $ 115,543 $ 116,823 $ 120,082 Canada 2,992 2,924 2,378 Europe 5,995 4,780 4,781 Other International 2,916 4,814 2,842 Total $ 127,446 $ 129,341 $ 130,083 Total assets by principal geographic areas were as follows (in thousands): As of December 31, 2018 2017 2016 U.S. $ 152,633 $ 132,070 $ 127,827 Europe 3,819 3,374 3,017 Total $ 156,452 $ 135,444 $ 130,844 In our CCA segment, revenue from Butler Animal Health Supply, LLC d/b/a Henry Schein Animal Health ("Henry Schein") represented approximately 15% , 13% and 13% of our consolidated revenue for the years ended December 31, 2018 , 2017 and 2016 , respectively. Revenue from Merck entities, including Merck Animal Health, represented approximately 12% , 12% and 11% for the years ended December 31, 2018 , 2017 and 2016 , respectively. Revenue from De Lage Landen Financial Services, Inc. ("DLL"), represented approximately 6% , 7% and 11% of our consolidated revenue for the years ended December 31, 2018 , 2017 and 2016 , respectively; DLL is a third party that provides financing and leasing for our customers, primarily for our Point of Care imaging products. In our OVP segment, revenue from Eli Lilly entities, including Elanco, represented approximately 9% , 11% and 12% for the years ended December 31, 2018 , 2017 and 2016 , respectively. No other customer accounted for more than 10% of our consolidated revenue for the years ended December 31, 2018 , 2017 or 2016 .

SUPPLEMENTAL QUARTERLY FINANCIA

SUPPLEMENTAL QUARTERLY FINANCIAL INFORMATION (Unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
SUPPLEMENTAL QUARTERLY FINANCIAL INFORMATION (Unaudited)	SUPPLEMENTAL QUARTERLY FINANCIAL DATA (Unaudited) The following tables present quarterly unaudited results for the two years ended December 31, 2018 and 2017 (amounts in thousands, except per share data). Q1 Q2 Q3 Q4 Total 2018 Total revenue $ 32,765 $ 29,662 $ 30,955 $ 34,064 $ 127,446 Gross profit 13,307 13,065 14,794 15,472 56,638 Operating income (loss) 1,871 2,204 (3,595 ) 3,314 3,794 Net income (loss) before equity in losses of unconsolidated affiliates 2,155 1,897 (1,670 ) 3,540 5,922 Net income (loss), after equity in losses of unconsolidated affiliates 2,155 1,897 (1,670 ) 3,468 5,850 Net income (loss) attributable to Heska Corporation 2,155 1,897 (1,670 ) 3,468 5,850 Basic earnings (loss) per share attributable to Heska Corporation 0.30 0.26 (0.23 ) 0.47 0.81 Diluted earnings (loss) per share attributable to Heska Corporation 0.28 0.24 (0.23 ) 0.44 0.74 2017 Total revenue $ 29,559 $ 33,405 $ 30,336 $ 36,041 $ 129,341 Gross profit 13,209 14,929 13,553 16,570 58,261 Operating income 2,788 4,560 3,778 7,093 18,219 Net income (loss) 4,303 3,139 3,083 (1,069 ) 9,456 Net income (loss) attributable to Heska Corporation 4,606 3,333 3,083 (1,069 ) 9,953 Basic earnings (loss) per share attributable to Heska Corporation 0.67 0.47 0.43 (0.15 ) 1.42 Diluted earnings (loss) per share attributable to Heska Corporation 0.60 0.44 0.40 (0.15 ) 1.30 Note that the sum of each value line for the four quarters does not necessarily equal the amount reported for the full year due to rounding.

OPERATIONS AND SUMMARY OF SIG_2

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	In the opinion of management, the accompanying Consolidated Financial Statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position of the Company as of December 31, 2018 and 2017 , as well as the results of our operations, statements of stockholders' equity and cash flows for the twelve months ended December 31, 2018 , 2017 and 2016 . The audited Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the SEC. Our audited Consolidated Financial Statements include our accounts and the accounts of our wholly-owned subsidiaries since their respective dates of acquisitions. All intercompany accounts and transactions have been eliminated in consolidation. Where our ownership of a subsidiary was less than 100%, the non-controlling interest is reported on our consolidated balance sheets. The non-controlling interest in our consolidated net income is reported as "Net income (loss) attributable to non-controlling interest" on our Consolidated Statements of Income. Our audited Consolidated Financial Statements are stated in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP").
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are required when establishing the allowance for doubtful accounts and the net realizable value of inventory; determining future costs associated with warranties provided; determining the period over which our obligations are fulfilled under agreements to license product rights and/or technology rights; evaluating long-lived and intangible assets and investments for estimated useful lives and impairment; estimating the useful lives of instruments under leasing arrangements; determining the allocation of purchase price under purchase accounting; estimating the expense associated with the granting of stock options; and determining the need for, and the amount of a valuation allowance on deferred tax assets.
Concentration of Credit Risk	Financial instruments that potentially subject us to a concentration of credit risk consist of cash and cash equivalents and accounts receivable. We maintain the majority of our cash and cash equivalents with financial institutions that management believes are creditworthy in the form of demand deposits. We have no off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign currency hedging arrangements. Our accounts receivable balances are due largely from distribution partners, domestic veterinary clinics and individual veterinarians and other animal health companies. Henry Schein represented 12% and 17% of our consolidated accounts receivable at December 31, 2018 and 2017 , respectively. Merck entities represented approximately 10% and 15% of our consolidated accounts receivable at December 31, 2018 and 2017 , respectively. DLL represented 8% and 11% of our consolidated accounts receivable at December 31, 2018 and 2017 , respectively. Eli Lilly entities, including Elanco, represented approximately 32% and 4% of our consolidated accounts receivable at December 31, 2018 and 2017 , respectively. No other customer accounted for more than 10% of our consolidated accounts receivable at December 31, 2018 or 2017 . We have established an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts receivable are recorded at net realizable value. From time to time, our customers are unable to meet their payment obligations. We continuously monitor our customers' credit worthiness and use our judgment in establishing a provision for estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified. While such credit losses have historically been within our expectations and the provisions established, there is no assurance that we will continue to experience the same credit loss rates that we have in the past. A significant change in the liquidity or financial position of our customers could have a material adverse impact on the collectability of accounts receivable and our future operating results.
Cash and Cash Equivalents	Cash and cash equivalents are stated at cost, which approximates market value, and include short-term, highly liquid investments with original maturities of less than three months.
Fair Value of Financial Instruments	Our financial instruments consist of cash and cash equivalents, short-term trade receivables and payables and the Company's revolving line of credit. The carrying values of cash and cash equivalents and short-term trade receivables and payables approximate fair value because of the short-term nature of the instruments. The fair value of our line of credit balance is estimated based on current rates available for similar debt with similar maturities and collateral, and at December 31, 2018 and 2017 , approximates the carrying value due primarily to the floating rate of interest on such debt instruments.
Inventories	Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method. Inventory we manufacture includes the cost of material, labor and overhead. If the cost of inventories exceeds estimated net realizable value, provisions are made to reduce the carrying value to estimated net realizable value. This estimate is calculated utilizing various information including assumptions of future market demand, market conditions and remaining shelf life.
Property and Equipment	Property and equipment is stated at cost, net of accumulated depreciation. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. When an item is sold or retired, the cost and related accumulated depreciation is relieved and the resulting gain or loss, if any, is recognized in the Consolidated Statements of Income. We provide for depreciation primarily using the straight-line method by charges to income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Building 10 to 20 years Machinery and equipment 2 to 7 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 5 years Leasehold and building improvements 5 to 15 years We capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Qualifying costs incurred during the application development stage, which consist primarily of internal payroll and direct fringe benefits and external direct project costs, including labor and travel, are capitalized and amortized on a straight-line basis over the estimated useful life of the asset, which range from three to five years. Costs incurred during the preliminary project and post-implementation and operation phases are expensed as incurred. These costs are general and administrative in nature and related primarily to the determination of performance requirements, data conversion and training.
Investments in Unconsolidated Affiliates	Investments in unconsolidated affiliates are measured and recorded as either non-marketable equity securities or equity method investments. Non-marketable equity securities are equity securities without readily determinable fair value that are measured and recorded using a measurement alternative which measures the securities at cost minus impairment, if any, plus or minus changes from qualifying observable price changes. Equity method investments are equity securities in investees we do not control but over which we have the ability to exercise significant influence. When the equity method of accounting is determined to be appropriate, the initial measurement of the investment includes the cost of the investment and all direct transaction costs incurred to acquire the investment. Equity method investments are measured at cost minus impairment, if any, plus or minus our share of equity method investee income or loss, which will be recorded as a separate line on the income statement. Both types of investments will be evaluated for impairment if a triggering event occurs.
Goodwill, Intangible and Other Long-Lived Assets	Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the identical asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to the Company. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require significant assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When material, we utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. We assess goodwill for impairment annually, at the reporting unit level, in the fourth quarter and whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more-likely-than-not that the estimated fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the comparison of the estimated fair value of the reporting unit to the carrying value. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, we determine that is it more-likely-than-not that the estimated fair value of a reporting is less than its carrying amount, we would then estimate the fair value of the reporting unit and compare it to the carrying value. If the carrying value exceeds the estimated fair value we would recognize an impairment for the difference; otherwise, no further impairment test would be required. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to quantitative analysis. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. We performed qualitative assessments in the fourth quarters of 2018 , 2017, and 2016 and determined that no indications of impairment existed. We assess the realizability of intangible assets other than goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If an impairment review is triggered, we evaluate the carrying value of intangible assets based on estimated undiscounted future cash flows over the remaining useful life of the primary asset of the asset group and compare that value to the carrying value of the asset group. The cash flows that are used contain our best estimates, using appropriate and customary assumptions and projections at the time. If the net carrying value of an intangible asset exceeds the related estimated undiscounted future cash flows, an impairment to adjust the intangible asset to its fair value would be reported as a non-cash charge to earnings. If necessary, we would calculate the fair value of an intangible asset using the present value of the estimated future cash flows to be generated by the intangible asset, and applying a risk-adjusted discount rate.
Revenue Recognition	We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which we adopted on January 1, 2018, using the modified retrospective transition approach. See "Adoption of New Accounting Pronouncements" below for impacts of adoption. We generate our CCA segment revenue through the sale of products, either by outright purchase by our customers or through a subscription agreement whereby our customers receive instruments and pay us a monthly fee for the usage of the instrument as well as the consumables needed to conduct testing. Outright sales to customers are the majority of both Point of Care imaging diagnostic transactions and the sale of pharmaceuticals and vaccines, while subscription placement is the majority of Point of Care laboratory transactions. For outright sales of products, revenue is recognized when control of the promised product or service is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services (the transaction price). Taxes assessed by governmental authorities and collected from the customer are excluded from our revenue recognition. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For instruments, consumables and most software licenses sold by the Company, control transfers to the customer at a point in time. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership and where acceptance is not a formality, the customer must have accepted the product or service. Heska’s principal terms of sale are FOB Shipping Point, or equivalent, and, as such, we primarily transfer control and record revenue for product sales upon shipment. If a performance obligation to the customer with respect to a sales transaction remains unfulfilled following shipment (typically owed installation or acceptance by the customer), revenue recognition for that performance obligation is deferred until such commitments have been fulfilled. For extended warranty and service plans, control transfers to the customer over the term of the arrangement. Revenue for extended warranties and service is recognized based upon the period of time elapsed under the arrangement. Our revenue under subscription agreements relates to OTL arrangements or STL arrangements. Determination of an OTL or STL is primarily determined as a result of the length of the contract as compared to the estimated useful life of the instrument, among other factors. Leases are outside of the scope of ASC 606 and are therefore accounted for in accordance with ASC 840 , Leases . A STL would result in earlier recognition of instrument revenue as compared to an OTL, which is generally upon installation of the instruments. The cash collected under both arrangements is over the term of the contract. The cost of the customer-leased instruments is removed from inventory and recognized in the Consolidated Statements of Income. Instrument lease revenue for OTL agreements is recognized on a straight-line basis over the life of the lease, and the costs of customer-leased instruments are recorded within property and equipment in the accompanying Consolidated Balance Sheets and depreciated over the instrument’s estimated useful life. The depreciation expense is reflected in cost of revenue in the accompanying Consolidated Statements of Income. The OTLs and STLs are not cancellable until after an initial term. OTLs may include a minimum utilization rather than a minimum supply credit. Adoption of ASC 842 (refer to Accounting Pronouncements Not Yet Adopted ) may impact the classification of this type of lease on a go-forward basis due to the change in lessor requirements within the new standard. For contracts with multiple performance obligations, the Company allocates the contracts' transaction price for each performance obligation on a relative standalone selling price basis using our best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate the standalone selling price is the price observed in standalone sales to customers of a prior period. Changes in these values can impact the amount of consideration allocated to each component of the contract. When prices in standalone sales are not available, we may use a cost-plus margin approach. Allocation of the transaction price is determined at the contracts' inception. The Company does not adjust the transaction price for the effects of a significant financing component when the period between the transfer of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. This allocation approach also applies to contracts for which a portion of the contract relates to a lease component. To the extent the transaction price includes variable consideration, such as future payments based on consumable usage over time, we apply judgment to determine if the variable consideration should be constrained. As the variable consideration is highly susceptible to factors outside of the Company’s influence, and the potential values contain a broad range of possible outcomes given all potential amounts of consumption that could occur, it is likely that a significant revenue reversal would occur should the variable consideration be estimated at an amount greater than the minimum stated amount until such a time as the uncertainty is resolved. We generate revenue within our OVP segment through contract manufacturing agreements with customers. The timing of revenue recognition of our customer contracts are generally recognized upon shipment or acceptance by our customer, under the same guidelines noted above for other outright product sales. Heska assessed the over-time criteria within ASC 606 and concluded that while products within this segment have no alternative use to Heska, as Heska is contractually prohibited to redirect the product to other customers, Heska does not have right to payment for performance to date. Therefore, point in time revenue recognition has been determined to be appropriate. Revenue generated from licensing arrangements is recognized based on the underlying term of the contract. Recording revenue from the sale of products involves the use of estimates and management's judgment. We must make a determination at the time of sale whether the customer has the ability and intent to make payments in accordance with arrangements. While we do utilize past payment history and, to the extent available for new customers, public credit information in making our assessment, the determination of whether collectability is reasonably assured is ultimately a judgment that must be made by management. We must also make estimates regarding our future obligations relating to returns, rebates, allowances and similar other programs. We do not generally allow return of products or instruments. Distributor rebates are recorded as a reduction to revenue. Refer to Note 2 for additional disclosures required by ASC 606. Prior to the adoption of ASC 606 on January 1, 2018, the Company recognized revenue in accordance with Topic 605, Revenue Recognition . Our policy was to recognize revenue when the applicable revenue recognition criteria were met, which generally included the following: persuasive evidence of an arrangement exists; delivery has occurred or services rendered; price is fixed or determinable; and collectability is reasonably assured. The adoption of the new revenue standard did not materially change our recognition from ASC 605 (as disclosed under Adoption of New Accounting Pronouncements ).
Stock-Based Compensation	Stock-based compensation expense is measured at the grant date based upon the estimated fair value of the portion of the award that is ultimately expected to vest and is recognized as expense over the applicable vesting period of the award generally using the straight-line method.
Advertising Costs	Advertising costs are expensed as incurred and are included in sales and marketing expenses.
Income Taxes	The Company records a current provision for income taxes based on estimated amounts payable or refundable on tax returns filed or to be filed each year. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates, in each tax jurisdiction, expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates, including the prior year impact of the enacted 21% U.S. corporate income tax rate under the Tax Cuts and Jobs Act, is recognized in operations in the period that includes the enactment date. The overall change in deferred tax assets and liabilities for the period measures the deferred tax expense or benefit for the period. Deferred tax assets are reduced by a valuation allowance based on a judgmental assessment of available evidence if the Company is unable to conclude that it is more likely than not that some or all of the deferred tax assets will be realized.
Earnings Per Share	Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued.
Foreign Currency Translation	The functional currency of our Swiss subsidiary is the Swiss Franc. Assets and liabilities of our Swiss subsidiary are translated using the exchange rate in effect at the balance sheet date. Revenue and expense accounts and cash flows are translated using an average of exchange rates in effect during the period. Cumulative translation gains and losses are shown in the Consolidated Balance Sheets as a separate component of stockholders' equity. Exchange gains and losses arising from transactions denominated in foreign currencies (i.e., transaction gains and losses) are recognized as a component of other income (expense) in current operations, as are exchange gains and losses on intercompany transactions expected to be settled in the near term.
Warranty Costs	The Company generally provides for the estimated cost of hardware and software warranties in the period the related revenue is recognized. The Company assesses the adequacy of its accrued warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates. Should product failure rates differ from our estimates, actual costs could vary significantly from our expectations. Extended warranties are sold to our customers and revenue is recognized over the term of the warranty agreement, as expected costs are incurred.
Recent Accounting Pronouncements	Adoption of New Accounting Pronouncements Effective January 1, 2018, we adopted FASB ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , which provides clarification on accounting for modifications in share-based payment awards. The adoption of this guidance did not have an impact on our consolidated financial statements or related disclosures as there were no modifications to our share-based payment awards during 2018. In March 2018, we adopted FASB ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which updates the income tax accounting to reflect the SEC's interpretive guidance released on December 22, 2017, when the 2017 Tax Act was signed into law. See Item 8, Note 4 - Income Taxes, for the impact of adoption to our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and has subsequently issued several supplemental and/or clarifying ASUs (collectively "ASC 606"). ASC 606 prescribes a single common revenue standard that replaces most existing GAAP revenue recognition guidance. ASC 606 outlines a five-step model, under which Heska recognized revenue as performance obligations within customer contracts are satisfied. ASC 606 is intended to provide more consistent interpretation and application of the principles outlined in the standard across filers in multiple industries and within the same industries compared to current practices, which should improve comparability. Along with the issuance of ASC 606, additional cost guidance was issued and codified under ASC 340-40 that outlines the requirements for capitalizing incremental costs of obtaining a contract and costs to fulfill a contract that meet certain capitalization criteria. On January 1, 2018, we adopted ASC 606 using the modified retrospective method for all customer contracts not yet completed as of the adoption date. Results for reporting periods beginning January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605, Revenue Recognition. We recorded an increase to beginning retained earnings of $2.6 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606. The impact to beginning retained earnings was primarily driven by the capitalization of certain costs to obtain our customer contracts, which were primarily sales-related commissions. The adoption of ASC 606 did not have a significant impact on our Consolidated Financial Statements as of and for the twelve months ended December 31, 2018 . As a result, comparisons of revenues and operating profit performance between periods are not affected by the adoption of this ASU. Accounting Pronouncements Not Yet Adopted In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with accounting for employee share-based compensation. ASU 2018-07 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted but no earlier than an entity’s adoption date of Topic 606. We will adopt the provisions of this ASU in the first quarter of 2019. Adoption of the new standard is not expected to have a material impact on our Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU permits companies to elect a reclassification of the disproportionate tax effects in accumulated other comprehensive income ("AOCI") caused by the Tax Cuts and Jobs Act of 2017 to retained earnings. The ASU also requires additional disclosures. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. We will adopt the provisions of this ASU in the first quarter of 2019. As of December 31, 2018, the Company does not have any disproportionate income tax effects in AOCI to reclassify, therefore, adoption of the new standard is not expected to have a material impact on our Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which require that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based upon historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. The amendments in this update are effective for fiscal years beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for fiscal year beginning after December 15, 2018 is permitted. We will adopt the provisions of this ASU in the first quarter of 2020. We are currently evaluating the effect of this update on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes ASC 840, Leases . This update requires lessees to recognize a lease liability and a right-of-use ("ROU") asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. The accounting for lessors does not fundamentally change except for changes to conform and align guidance to the lessee guidance as well as to the new revenue recognition guidance in ASU 2014-09. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases, Targeted Improvements, which provide additional clarification and implementation guidance on certain aspects of ASU 2016-02 and have the same effective date and transition requirements. Specifically, ASU 2018-10 provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02, and ASU 2018-11 creates an additional transition method option allowing entities to record a cumulative effect adjustments to the opening retained earnings balance in the year of adoption. ASU 2018-11 also allows lessors to not separate nonlease components from the associated lease component if certain conditions are met. In December 2018, the FASB issued ASU 2018-20, Leases: Narrow-Scope Improvements for Lessors. This ASU provides an election for lessors to exclude sales and related taxes from consideration in the contract, requires lessors to exclude from revenue and expense lessor costs paid directly to a third party by lessees, and clarifies lessors' accounting for variable payments related to both lease and nonlease components. Adoption of ASC 842 is required for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company has elected, as of January 1, 2019, to adopt the standard using the effective date as our date of initial application. The comparative information will not be recast and will continue to be reported under the accounting standard in effect for those periods. A package of practical expedients were made available to lessees and will be elected by the Company, which among other things, allows us to carry forward the historical lease classification. Heska assessed the impact that the adoption of ASC 842 is expected to have on its Consolidated Financial Statements by analyzing its current portfolio of leases, including a review of historical accounting policies and practices to identify potential differences in applying the guidance of ASC 842. We also performed a comprehensive review of our current processes and systems to determine and implement changes required to support the adoption of ASC 842 on January 1, 2019. Based on a review of contracts that convey the right to control use of an identified asset within our Core Companion Animal ("CCA") segment, we determined we are both a lessee and a lessor. We evaluated the types of assets, the terms associated with their contracts and the present value of future lease payments expected to be paid. As a lessor, our revenue under subscription agreements relates to either OTL or STL arrangements, which will now be recognized under ASC 842. As a lessee, our most significant lease balances are related to buildings and vehicles which have lease terms through 2023 and 2021, respectively. Based on a review of contracts that convey the right to control use of an identified asset within our Other Vaccines and Pharmaceuticals ("OVP") segment, we determined we are only a lessee. We evaluated the types of assets, the terms associated with their contracts and the present value of future lease payments expected to be paid. Our OVP segment does not enter into transactions as a lessor and has relatively immaterial agreements of which were entered into as a lessee. The standard will not have a material net impact in our Consolidated Balance Sheets, Consolidated Statements of Income or Consolidated Statements of Cash Flows. The most significant impact will be the recognition of ROU assets and lease liabilities for the operating leases, of which we are the lessee. The effect of this update is expected to be a ROU asset and lease liability of between $6.5 to 7.0 million dollars. As a lessor, accounting for our subscription agreements which are operating-type leases will remain substantially unchanged.

OPERATIONS AND SUMMARY OF SIG_3

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Changes in allowance for doubtful accounts	Changes in allowance for doubtful accounts are summarized as follows (in thousands): Years Ended December 31, 2018 2017 2016 Balances at beginning of period $ 215 $ 237 $ 189 Additions - charged to expense 104 168 163 Deductions - write offs, net of recoveries (74 ) (190 ) (115 ) Balances at end of period $ 245 $ 215 $ 237
Schedule of inventory	Inventories, net consist of the following (in thousands): December 31, 2018 2017 Raw materials $ 15,000 $ 18,465 Work in process 3,592 4,296 Finished goods 8,085 11,465 Allowance for excess or obsolete inventory (1,573 ) (1,630 ) $ 25,104 $ 32,596
Schedule of property and equipment	We provide for depreciation primarily using the straight-line method by charges to income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Building 10 to 20 years Machinery and equipment 2 to 7 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 5 years Leasehold and building improvements 5 to 15 years Property and equipment, net, consisted of the following (in thousands): December 31, 2018 2017 Land $ 377 $ 377 Building 2,978 2,868 Machinery and equipment 33,087 32,188 Office furniture and equipment 1,687 1,665 Computer hardware and software 4,704 4,579 Leasehold and building improvements 9,953 8,156 Construction in progress 1,274 3,531 54,060 53,364 Less accumulated depreciation (38,079 ) (36,033 ) Total property and equipment, net $ 15,981 $ 17,331

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes our CCA revenue (in thousands): Year Ended December 31, 2018 2017 2016 Point of Care laboratory revenue: $ 57,375 $ 54,855 $ 48,817 Consumables 44,771 39,161 36,344 Sales-type leases 5,888 7,382 4,754 Outright instrument sales 4,922 6,391 5,684 Other 1,794 1,921 2,035 Point of Care imaging revenue: 22,832 21,907 29,609 Outright instrument sales 19,746 19,187 26,936 Service revenue 854 713 1,206 Operating type leases 2,232 2,007 1,467 Other CCA revenue: 28,717 28,429 28,972 Other pharmaceuticals, vaccines and diagnostic tests 28,265 28,008 28,596 Research and development, license and royalty revenue 452 421 376 Total CCA revenue $ 108,924 $ 105,191 $ 107,398 Revenue from our OVP segment consists of revenue generated from contract manufacturing agreements and from other license and research and development revenue. The following table summarizes our OVP revenue (in thousands): Year Ended December 31, 2018 2017 2016 Contract manufacturing $ 17,508 $ 23,490 $ 21,477 License, research and development 1,014 660 1,208 Total OVP revenue $ 18,522 $ 24,150 $ 22,685
Schedule of Timing of Revenue Expected to be Recognized	As of December 31, 2018 , the Company expects to recognize revenue as follows (in thousands): Year Ending December 31, Revenue 2019 $ 23,194 2020 19,556 2021 15,474 2022 12,281 2023 8,744 Thereafter 4,873 $ 84,122

ACQUISITION AND RELATED PARTY_2

ACQUISITION AND RELATED PARTY ITEMS (Tables)	12 Months Ended
	Dec. 31, 2018
Business Combinations and Related Party Disclosures [Abstract]
Schedule of aggregate consideration and allocation of purchase price	The following summarizes the aggregate consideration paid by the Company and the allocation of the purchase price (in thousands): Common stock issued - 175,000 shares $ 6,347 Debt assumed 1,535 Total fair value of consideration transferred $ 7,882 Accounts receivable $ 222 Inventories 39 Due from Cuattro, LLC 963 Property and equipment 80 Other tangible assets 164 Deferred tax asset 56 Intangible assets 2,521 Goodwill 5,783 Accounts payable (112 ) Deferred tax liability (905 ) Other assumed liabilities (929 ) Total fair value of consideration transferred $ 7,882
Schedule of intangible assets acquired	Intangible assets acquired, amortization method and estimated useful lives as of May 31, 2016 was as follows (dollars in thousands): Useful Life Amortization Method Fair Value Customer relationships 6.67 Straight-line $2,521

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of components of income tax expense	The components of the income tax (benefit) expense are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current income tax expense: Federal $ (115 ) $ — $ 197 State 192 6 179 Foreign 63 43 31 Total current expense $ 140 $ 49 $ 407 Deferred income tax (benefit) expense: Federal $ (1,877 ) $ 9,736 $ 3,545 State (378 ) (872 ) 387 Foreign — — — Total deferred (benefit) expense (2,255 ) 8,864 3,932 Total income tax (benefit) expense $ (2,115 ) $ 8,913 $ 4,339 The components of income before income taxes were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Domestic $ 3,602 $ 18,188 $ 16,375 Foreign 205 181 129 $ 3,807 $ 18,369 $ 16,504
Temporary differences to the components of deferred tax assets	Temporary differences that give rise to the components of net deferred tax assets are as follows (in thousands): December 31, 2018 2017 Inventory $ 1,249 $ 1,321 Accrued compensation 110 103 Stock options 1,281 914 Research and development 476 442 Legal Settlement 1,678 — Deferred revenue 3,305 2,002 Property and equipment 3,065 2,531 Net operating loss carryforwards – domestic 17,088 22,627 Foreign tax credit carryforward 38 54 Capital leases (3,936 ) (3,757 ) Unremitted earnings for controlled foreign corporations — (50 ) Other — 194 24,354 26,381 Valuation allowance (10,233 ) (14,504 ) Total net deferred tax assets $ 14,121 $ 11,877
Effective income tax rate	The Company's income tax (benefit) expense relating to income (loss) for the periods presented differs from the amounts that would result from applying the federal statutory rate to that income (loss) as follows: Year Ended December 31, 2018 2017 2016 Statutory federal tax rate 21 % 34 % 34 % State income taxes, net of federal benefit (8 )% (5 )% 2 % Non-controlling interest in Heska Imaging US, LLC — % 1 % (3 )% Non-temporary stock option benefit (50 )% (30 )% (7 )% Meals and entertainment permanent difference 1 % — % — % GILTI permanent difference 1 % — % — % Other permanent differences 1 % 1 % (1 )% Change in tax rate — % 32 % — % Change in valuation allowance — % 16 % — % Other deferred differences (21 )% — % — % Other (1 )% — % 1 % Effective income tax rate (56 )% 49 % 26 %

SALES-TYPE LEASES (Tables)

SALES-TYPE LEASES (Tables)	12 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Sales-type Lease, Lease Income	Detail of scheduled minimum lease receipts for our sales-type leases are as follows (in thousands): Year Ending December 31, 2019 $ 2,989 2020 3,163 2021 3,089 2022 2,715 2023 1,854 Thereafter 1,087 $ 14,897

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Reconciliation of basic and diluted earnings per share	The following is a reconciliation of the weighted-average shares outstanding used in the calculation of basic and diluted earnings per share for the years ended December 31, 2018 , 2017 and 2016 (in thousands, except per share data): Years ended December 31, 2018 2017 2016 Net income attributable to Heska Corporation $ 5,850 $ 9,953 $ 10,508 Basic weighted-average common shares outstanding 7,220 7,026 6,783 Assumed exercise of dilutive stock options and restricted stock awards 636 616 578 Diluted weighted-average common shares outstanding 7,856 7,642 7,361 Basic earnings per share $ 0.81 $ 1.42 $ 1.55 Diluted earnings per share $ 0.74 $ 1.30 $ 1.43
Schedule of antidilutive securities excluded from computation of earnings per share	The following stock options and restricted awards were excluded from the computation of diluted earnings per share because they would have been anti-dilutive (in thousands): Years ended December 31, 2018 2017 2016 Stock options 111 123 234

INVESTMENTS IN UNCONSOLIDATED_2

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Tables)	12 Months Ended
	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Carrying values of investments in unconsolidated entities	The carrying values of investments in unconsolidated affiliates, categorized by type of investment, is as follows (in thousands): December 31, 2018 Equity method investment $ 5,000 Non-marketable equity security investment 3,018 $ 8,018

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The following summarizes the changes in goodwill during the years ended December 31, 2018 and 2017 (in thousands): Carrying amount, December 31, 2016 $ 26,647 Foreign currency adjustments 40 Carrying amount, December 31, 2017 $ 26,687 Foreign currency adjustments (8 ) Carrying amount, December 31, 2018 $ 26,679
Schedule of other intangible assets	Other intangibles assets, net consisted of the following as of December 31, 2018 and 2017 (in thousands): 2018 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology $ 8,200 $ — $ 8,200 $ — $ — $ — Customer relationships and other 3,303 (1,739 ) 1,564 3,309 (1,351 ) 1,958 Total intangible assets $ 11,503 $ (1,739 ) $ 9,764 $ 3,309 $ (1,351 ) $ 1,958
Schedule of amortization expense on intangible assets	Amortization expense relating to other intangibles is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Amortization expense $ 388 $ 388 $ 230
Schedule of estimated future amortization expense	Estimated amortization expense related to intangibles for each of the five years from 2019 through 2023 and thereafter is as follows (in thousands): Year Ending December 31, 2019 $ 1,208 2020 1,208 2021 1,203 2022 1,198 2023 851 Thereafter 4,096 $ 9,764

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	We provide for depreciation primarily using the straight-line method by charges to income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Building 10 to 20 years Machinery and equipment 2 to 7 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 5 years Leasehold and building improvements 5 to 15 years Property and equipment, net, consisted of the following (in thousands): December 31, 2018 2017 Land $ 377 $ 377 Building 2,978 2,868 Machinery and equipment 33,087 32,188 Office furniture and equipment 1,687 1,665 Computer hardware and software 4,704 4,579 Leasehold and building improvements 9,953 8,156 Construction in progress 1,274 3,531 54,060 53,364 Less accumulated depreciation (38,079 ) (36,033 ) Total property and equipment, net $ 15,981 $ 17,331

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2018
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): 2018 2017 Accrued payroll and employee benefits $ 759 $ 1,209 Accrued property taxes 632 661 Accrued settlement (see Note 13) 6,750 — Other 2,001 2,204 Total accrued liabilities $ 10,142 $ 4,074

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of weighted average valuation assumptions	Weighted average assumptions used in 2018 , 2017 and 2016 for each of these four key inputs are listed in the following table: 2018 2017 2016 Risk-free interest rate 2.66% 1.76% 1.76% Expected lives 4.9 years 4.8 years 4.5 years Expected volatility 40% 41% 41% Expected dividend yield 0% 0% 0%
Schedule of stock options plans	A summary of our stock option plans, excluding options to purchase fractional shares resulting from our December 2010 1-for- 10 reverse stock split, is as follows: Year Ended December 31, 2018 Options Weighted Average Exercise Price Outstanding at beginning of period 630,847 $ 29.312 Granted at Market 153,700 $ 75.244 Forfeited (18,978 ) $ 53.010 Expired (896 ) $ 65.414 Exercised (144,120 ) $ 25.740 Outstanding at end of period 620,553 $ 40.741 Exercisable at end of period 386,176 $ 21.214
Schedule of shares authorized under stock options plans by exercise price range	The following table summarizes information about stock options outstanding and exercisable at December 31, 2018 . Options Outstanding Options Exercisable Exercise Prices Number of Weighted Weighted Number of Weighted Weighted $4.50 - $7.36 167,737 3.61 $ 6.565 167,737 3.61 $ 6.565 $7.37 - $32.21 128,465 5.26 $ 15.777 127,261 5.25 $ 15.631 $32.22 - $62.50 75,972 7.03 $ 39.745 54,133 7.04 $ 39.647 $62.51 - $69.77 130,000 9.18 $ 69.770 — 0.00 $ — $69.78 - $108.25 118,379 8.40 $ 85.020 37,045 8.12 $ 79.793 $4.50 - $108.25 620,553 6.45 $ 40.741 386,176 5.06 $ 21.214
Schedule of pricing models	For the years ended December 31, 2018 , 2017 and 2016 , we estimated the fair values of stock purchase rights granted under the ESPP using the Black-Scholes pricing model and the following weighted average assumptions: 2018 2017 2016 Risk-free interest rate 1.67% 0.74% 0.54% Expected lives 1.2 years 1.2 years 1.2 years Expected volatility 42% 45% 42% Expected dividend yield 0% 0% 0%
Schedule of restricted stock transactions	The following table summarizes restricted stock transactions for the year ended December 31, 2018 : RSAs Weighted-Average Grant Date Fair Value Per Award Non-vested as of December 31, 2017 124,943 $ 57.67 Granted 190,730 $ 71.77 Vested (56,243 ) $ 28.97 Forfeited — — Non-vested as of December 31, 2018 259,430 $ 74.26

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Schedule of accumulated other comprehensive income (loss)	Accumulated other comprehensive income consisted of the following (in thousands): Minimum pension liability Foreign currency translation Total accumulated other comprehensive income Balances at December 31, 2016 $ (501 ) $ 598 $ 97 Other comprehensive income 12 123 135 Balances at December 31, 2017 (489 ) 721 232 Other comprehensive income (loss) 70 (25 ) 45 Balances at December 31, 2018 $ (419 ) $ 696 $ 277

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Operating leases of lessee disclosure	The Company has entered into operating leases for its office and research facilities, vehicles and certain equipment with future minimum payments as of December 31, 2018 as follows (in thousands): Year Ending December 31, 2019 $ 2,134 2020 1,993 2021 1,859 2022 1,765 2023 2,357 Thereafter — $ 10,108

INTEREST AND OTHER (INCOME) E_2

INTEREST AND OTHER (INCOME) EXPENSE (Tables)	12 Months Ended
	Dec. 31, 2018
Other Income and Expenses [Abstract]
Schedule of interest expense (income) and other income, net	Interest and other (income) expense, net, consisted of the following (in thousands): Year Ended December 31, 2018 2017 2016 Interest income $ (261 ) $ (167 ) $ (124 ) Interest expense 310 245 160 Other expense (income), net (62 ) (228 ) (7 ) $ (13 ) $ (150 ) $ 29

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Reconciliation of other significant reconciling items from segments to consolidated	Summarized financial information concerning the Company's reportable segments is shown in the following tables (in thousands): Year Ended December 31, 2018 Core Other Vaccines and Total Total revenue $ 108,924 $ 18,522 $ 127,446 Operating income 2,040 1,754 3,794 Income before income taxes 2,053 1,754 3,807 Investments in unconsolidated affiliates 8,018 — 8,018 Total assets 133,586 22,866 156,452 Net assets 96,129 26,280 122,409 Capital expenditures 180 1,178 1,358 Depreciation and amortization 3,369 1,226 4,595 Year Ended December 31, 2017 Core Other Vaccines and Total revenue $ 105,191 $ 24,150 $ 129,341 Operating income 12,656 5,563 18,219 Income before income taxes 12,828 5,541 18,369 Investments in unconsolidated affiliates — — — Total assets 111,625 23,819 135,444 Net assets 75,984 24,456 100,440 Capital expenditures 209 3,260 3,469 Depreciation and amortization 3,736 1,018 4,754 Year Ended December 31, 2016 Core Other Vaccines and Total revenue $ 107,398 $ 22,685 $ 130,083 Operating income 13,015 3,518 16,533 Income before income taxes 12,938 3,566 16,504 Investments in unconsolidated affiliates — — — Total assets 110,995 19,849 130,844 Net assets 68,072 18,903 86,975 Capital expenditures 1,135 2,282 3,417 Depreciation and amortization 3,800 845 4,645
Schedule of revenue from external customers and long-lived assets, by geographical areas	Total revenue by principal geographic area was as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 U.S. $ 115,543 $ 116,823 $ 120,082 Canada 2,992 2,924 2,378 Europe 5,995 4,780 4,781 Other International 2,916 4,814 2,842 Total $ 127,446 $ 129,341 $ 130,083 Total assets by principal geographic areas were as follows (in thousands): As of December 31, 2018 2017 2016 U.S. $ 152,633 $ 132,070 $ 127,827 Europe 3,819 3,374 3,017 Total $ 156,452 $ 135,444 $ 130,844

SUPPLEMENTAL QUARTERLY FINANC_2

SUPPLEMENTAL QUARTERLY FINANCIAL INFORMATION (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial information	The following tables present quarterly unaudited results for the two years ended December 31, 2018 and 2017 (amounts in thousands, except per share data). Q1 Q2 Q3 Q4 Total 2018 Total revenue $ 32,765 $ 29,662 $ 30,955 $ 34,064 $ 127,446 Gross profit 13,307 13,065 14,794 15,472 56,638 Operating income (loss) 1,871 2,204 (3,595 ) 3,314 3,794 Net income (loss) before equity in losses of unconsolidated affiliates 2,155 1,897 (1,670 ) 3,540 5,922 Net income (loss), after equity in losses of unconsolidated affiliates 2,155 1,897 (1,670 ) 3,468 5,850 Net income (loss) attributable to Heska Corporation 2,155 1,897 (1,670 ) 3,468 5,850 Basic earnings (loss) per share attributable to Heska Corporation 0.30 0.26 (0.23 ) 0.47 0.81 Diluted earnings (loss) per share attributable to Heska Corporation 0.28 0.24 (0.23 ) 0.44 0.74 2017 Total revenue $ 29,559 $ 33,405 $ 30,336 $ 36,041 $ 129,341 Gross profit 13,209 14,929 13,553 16,570 58,261 Operating income 2,788 4,560 3,778 7,093 18,219 Net income (loss) 4,303 3,139 3,083 (1,069 ) 9,456 Net income (loss) attributable to Heska Corporation 4,606 3,333 3,083 (1,069 ) 9,953 Basic earnings (loss) per share attributable to Heska Corporation 0.67 0.47 0.43 (0.15 ) 1.42 Diluted earnings (loss) per share attributable to Heska Corporation 0.60 0.44 0.40 (0.15 ) 1.30

OPERATIONS AND SUMMARY OF SIG_4

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands, € in Millions, SFr in Millions	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jan. 01, 2019USD ($)	Dec. 31, 2018EUR (€)	Dec. 31, 2018CHF (SFr)	Jan. 01, 2018USD ($)	Dec. 31, 2017EUR (€)	Dec. 31, 2017CHF (SFr)	Dec. 31, 2015USD ($)
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balances at beginning of period	$ 215	$ 237	$ 189
Additions - charged to expense	104	168	163
Deductions - write offs, net of recoveries	(74)	(190)	(115)
Balances at end of period	245	215	237
Cash and cash equivalents	13,389	9,659	10,794		€ 1.6	SFr 0.2		€ 1.1	SFr 0.1	$ 6,890
Inventory, Gross [Abstract]
Raw materials	15,000	18,465
Work in process	3,592	4,296
Finished goods	8,085	11,465
Allowance for excess or obsolete inventory	(1,573)	(1,630)
Inventories, net	25,104	32,596
Advertising expense	200	$ 200	200
Stockholders' equity	122,409		86,975							63,528
Accumulated Deficit
Inventory, Gross [Abstract]
Stockholders' equity	$ (134,979)		$ (151,827)							$ (163,992)
Accumulated Deficit | ASU 2014-09
Inventory, Gross [Abstract]
Stockholders' equity							$ 2,600
Minimum | ASU 2016-02 | Forecast
Inventory, Gross [Abstract]
Right-of-use asset				$ 6,500
Operating lease liability				6,500
Maximum | ASU 2016-02 | Forecast
Inventory, Gross [Abstract]
Right-of-use asset				7,000
Operating lease liability				$ 7,000
Building | Minimum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	10 years
Building | Maximum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	20 years
Machinery and equipment | Minimum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	2 years
Machinery and equipment | Maximum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	7 years
Office furniture & equipment | Minimum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	3 years
Office furniture & equipment | Maximum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	7 years
Computer hardware & software | Minimum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	3 years
Computer hardware & software | Maximum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	5 years
Leasehold and building improvements | Minimum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	5 years
Leasehold and building improvements | Maximum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	15 years
Software Development | Minimum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	3 years
Software Development | Maximum
Inventory, Gross [Abstract]
Property plant and equipment, useful life	5 years
Customer Concentration Risk | Accounts Receivable | Henry Schein
Property, Plant and Equipment [Line Items]
Concentration risk, percentage	12.00%	17.00%
Customer Concentration Risk | Accounts Receivable | Merck
Property, Plant and Equipment [Line Items]
Concentration risk, percentage	10.00%	15.00%
Customer Concentration Risk | Accounts Receivable | DLL
Property, Plant and Equipment [Line Items]
Concentration risk, percentage	8.00%	11.00%
Customer Concentration Risk | Accounts Receivable | Eli Lilly
Property, Plant and Equipment [Line Items]
Concentration risk, percentage	32.00%	4.00%

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net	$ 34,064	$ 30,955	$ 29,662	$ 32,765	$ 36,041	$ 30,336	$ 33,405	$ 29,559	$ 127,446	$ 129,341	$ 130,083
Contract receivables, current	900				700				900	700
Contract receivables, noncurrent	3,300				3,100				3,300	3,100
Current portion of deferred revenue, and other	9,600				12,300				9,600	12,300
Contract liabilities, revenue recognized									4,100	4,000
Contract liabilities, increase due to additional deferred sales									$ 1,400	2,500
Contract cost average term									6 years
Capitalized contract costs	$ 2,500				$ 2,400				$ 2,500	2,400
Capitalized contract costs, amortization									1,000
Capitalized contract costs during the period									1,000
Core companion animal
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									108,924	105,191	107,398
Point of Care laboratory revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									57,375	54,855	48,817
Consumables
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									44,771	39,161	36,344
Sales-type leases
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									5,888	7,382	4,754
Outright instrument sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									4,922	6,391	5,684
Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									1,794	1,921	2,035
Point of Care imaging revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									22,832	21,907	29,609
Outright instrument sales
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									19,746	19,187	26,936
Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									854	713	1,206
Operating type leases
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									2,232	2,007	1,467
Other CCA revenue:
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									28,717	28,429	28,972
Other pharmaceuticals, vaccines and diagnostic tests
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									28,265	28,008	28,596
Research and development, license and royalty revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									452	421	376
Other vaccines and pharmaceuticals
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									18,522	24,150	22,685
Contract manufacturing
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									17,508	23,490	21,477
License, research and development
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue, net									$ 1,014	$ 660	$ 1,208

REVENUE - Performance Obligatio

REVENUE - Performance Obligations (Details) $ in Thousands	Dec. 31, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 84,122
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 23,194
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 19,556
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 15,474
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 12,281
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 8,744
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 4,873
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction

ACQUISITION AND RELATED PARTY_3

ACQUISITION AND RELATED PARTY ITEMS - ACQUISITION INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 21, 2018	Apr. 03, 2017	May 31, 2016	May 31, 2016	May 31, 2017	Dec. 31, 2018	Dec. 31, 2017	May 30, 2017	Dec. 31, 2016	Feb. 24, 2013
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)	$ 0.01						$ 0.01
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill						$ 26,679	$ 26,687		$ 26,647
Interest subject to purchase as a percent										45.40%
Distributions declared		$ 1,000					100
Heska Imaging
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Distributions declared		$ 2,100					$ 300
Immediate Family Member of Management or Principal Owner | Shawna M. Wilson | Heska Imaging
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Ownership percentage								29.75%
Executive Officer | Clint Roth | Heska Imaging
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Ownership percentage								8.39%
Executive Officer | Steven M. Asakowicz | Heska Imaging
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Ownership percentage								4.09%
Executive Officer | Rodney A. Lippincott | Heska Imaging
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Ownership percentage								3.07%
Chief Executive Officer | Kevin S. Willson, Shawna M. Wilson And Trusts For Their Children And Family | Cuattro, LLC
Business Acquisition [Line Items]
Ownership percentage by trusts							100.00%
Chief Executive Officer | Kevin S. Willson, Shawna M. Wilson And Trusts For Their Children And Family | Cuattro Software, LLC
Business Acquisition [Line Items]
Ownership percentage by trusts							100.00%
Chief Executive Officer | Kevin S. Wilson | Heska Imaging
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Ownership percentage								0.05%
Affiliated Entity | Cuattro, LLC | Heska Imaging
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Ownership percentage								0.05%
Heska Imaging
Business Acquisition [Line Items]
Shares issued as consideration			175,000
Shares issued as consideration, value				$ 6,300
Share sale restriction period following merger date			180 days
Debt assumed in acquisition			$ 1,535
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract]
Stock			6,347
Debt assumed			1,535
Total fair value of consideration transferred			7,882
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Accounts receivable			222	222
Inventories			39	39
Due from Cuattro, LLC			963	963
Property and equipment			80	80
Other tangible assets			164	164
Deferred tax asset			56	56
Intangible assets			2,521	2,521
Goodwill			5,783	5,783
Accounts payable			(112)	(112)
Deferred tax liability			(905)	(905)
Other assumed liabilities			(929)	(929)
Total fair value of consideration transferred			$ 7,882	$ 7,882
Percentage of voting interest acquired										54.60%
Payments to acquire business					$ 13,800
Acquired Technology
Business Acquisition [Line Items]
Useful Life						10 years
Fair Value						$ 8,200
Customer Relationships | Heska Imaging
Business Acquisition [Line Items]
Useful Life			6 years 7 months 31 days
Fair Value			$ 2,521
Cuattro, LLC
Business Acquisition [Line Items]
Consideration transferred shares issued	54,763
Shares issued as consideration, value	$ 5,400
Payments for asset acquisition	$ 2,800

ACQUISITION AND RELATED PARTY_4

ACQUISITION AND RELATED PARTY ITEMS - RELATED PARTY ITEMS (Details) - USD ($) $ in Thousands	5 Months Ended	12 Months Ended
	May 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Due from – related parties		$ 0	$ 1
Affiliated Entity | Cuattro, LLC
Related Party Transaction [Line Items]
Related party - amount of transaction		3	100	$ 200
Cuattro, LLC | Heska Imaging
Related Party Transaction [Line Items]
Related party - amount of transaction		4,600	17,700	14,500
Heska Corporation | Cuattro, LLC
Related Party Transaction [Line Items]
Due from – related parties		0	1
Heska Corporation | U.S. Imaging
Related Party Transaction [Line Items]
Related party - amount of transaction	$ 2,900			$ 5,300
Heska Imaging | Affiliated Entity | Cuattro, LLC
Related Party Transaction [Line Items]
Due to Related Parties		$ 200	$ 1,700

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Cash paid for income taxes			$ 36	$ 213	$ 357
One-time transition tax	$ 10	$ 38
GILTI adjustment			230
Unremitted earnings for controlled foreign corporations		$ 200		$ 200
Tax Years 2018 Through 2022
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	68,300		68,300
Tax Years 2024 Through 2025
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	5,500		5,500
Tax Year 2027 and later
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	500		500
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	74,300		74,300
Domestic Tax Authority | Research Tax Credit Carryforward
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 500		$ 500

INCOME TAXES - COMPONENTS OF IN

INCOME TAXES - COMPONENTS OF INCOME (LOSS) BEFORE TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Domestic	$ 3,602	$ 18,188	$ 16,375
Foreign	205	181	129
Income (loss) before income taxes	$ 3,807	$ 18,369	$ 16,504

INCOME TAXES - TEMPORARY DIFFER

INCOME TAXES - TEMPORARY DIFFERENCES TO THE COMPONENTS OF DEFERRED TAX ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Inventory	$ 1,249	$ 1,321
Accrued compensation	110	103
Stock and Stock Options	1,281	914
Research and development tax credit	476	442
Alternative minimum tax credit	1,678	0
Deferred revenue	3,305	2,002
Property and equipment	3,065	2,531
Net operating loss carryforwards – domestic	17,088	22,627
Foreign tax credit carryforward	38	54
Capital leases	(3,936)	(3,757)
Unremitted earnings for controlled foreign corporations	0	(50)
Other	0	194
Deferred tax assets, gross	24,354	26,381
Valuation allowance	(10,233)	(14,504)
Total net deferred tax assets	$ 14,121	$ 11,877

INCOME TAXES - COMPONENTS OF _2

INCOME TAXES - COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current income tax expense:
Federal	$ (115)	$ 0	$ 197
State	192	6	179
Foreign	63	43	31
Total current expense	140	49	407
Deferred income tax (benefit) expense:
Federal	(1,877)	9,736	3,545
State	(378)	(872)	387
Foreign	0	0	0
Total deferred (benefit) expense	(2,255)	8,864	3,932
Total income tax (benefit) expense	$ (2,115)	$ 8,913	$ 4,339

INCOME TAXES - EFFECTIVE INCOME

INCOME TAXES - EFFECTIVE INCOME TAX RECONCILIATION (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Statutory federal tax rate	21.00%	34.00%	34.00%
State income taxes, net of federal benefit	(8.00%)	(5.00%)	2.00%
Non-controlling interest in Heska Imaging US, LLC	(0.00%)	1.00%	(3.00%)
Non-temporary stock option benefit	(50.00%)	(30.00%)	(7.00%)
Meals and entertainment permanent difference	1.00%	0.00%	0.00%
GILTI permanent difference	1.00%	0.00%	0.00%
Other permanent differences	1.00%	1.00%	(1.00%)
Change in tax rate	0.00%	32.00%	0.00%
Change in valuation allowance	0.00%	16.00%	0.00%
Other deferred differences	(21.00%)	(0.00%)	(0.00%)
Other	(1.00%)	0.00%	1.00%
Effective income tax rate	(56.00%)	49.00%	26.00%

SALES-TYPE LEASES (Details)

SALES-TYPE LEASES (Details) $ in Thousands	Dec. 31, 2018USD ($)
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]
2,019	$ 2,989
2,020	3,163
2,021	3,089
2,022	2,715
2,023	1,854
Thereafter	1,087
Total future obligations	$ 14,897

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Dec. 31, 2018USD ($)$ / shares	Sep. 30, 2018USD ($)$ / shares	Jun. 30, 2018USD ($)$ / shares	Mar. 31, 2018USD ($)$ / shares	Dec. 31, 2017USD ($)$ / shares	Sep. 30, 2017USD ($)$ / shares	Jun. 30, 2017USD ($)$ / shares	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares
Earnings Per Share [Abstract]
Reverse stock split conversion ratio	0.10									10
Net income attributable to Heska Corporation | $		$ 3,468	$ (1,670)	$ 1,897	$ 2,155	$ (1,069)	$ 3,083	$ 3,333	$ 4,606	$ 5,850	$ 9,953	$ 10,508
Basic weighted-average common shares outstanding (In shares)										7,220	7,026	6,783
Assumed exercise of dilutive stock options and restricted stock awards (in shares)										636	616	578
Diluted weighted-average common shares outstanding (in shares)										7,856	7,642	7,361
Basic earnings per share (in dollars per share) | $ / shares		$ 0.47	$ (0.23)	$ 0.26	$ 0.30	$ (0.15)	$ 0.43	$ 0.47	$ 0.67	$ 0.81	$ 1.42	$ 1.55
Diluted earnings per share (in dollars per share) | $ / shares		$ 0.44	$ (0.23)	$ 0.24	$ 0.28	$ (0.15)	$ 0.40	$ 0.44	$ 0.60	$ 0.74	$ 1.30	$ 1.43
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options and restricted units excluded from computation of earnings per share										111	123	234

INVESTMENTS IN UNCONSOLIDATED_3

INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Thousands	Sep. 24, 2018	Aug. 08, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated affiliates			$ 5,000
Non-marketable equity security investment			3,018
Investments			8,018	$ 0	$ 0
Payments to acquire equity method investments			$ 8,091	$ 0	$ 0
General Fluidics Corporation
Schedule of Equity Method Investments [Line Items]
Supply commitment term	15 years
General Fluidics Corporation
Schedule of Equity Method Investments [Line Items]
Payments to acquire equity method investments	$ 5,100
Ownership percentage	28.70%
MBio Diagnostics, Inc.
Schedule of Equity Method Investments [Line Items]
Payments to acquire non-marketable securities		$ 3,000
Shares purchased during period		1,714,285
Non-Marketable equity security investment, ownership percentage		6.90%
Intangible asset acquired		$ 1,000
Intangible assets acquired, useful life		20 years
Contingent consideration on milestones		$ 10,000

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Carrying amount	$ 26,687	$ 26,647
Foreign currency adjustments	(8)	40
Carrying amount	26,679	26,687	$ 26,647
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	11,503	3,309
Accumulated Amortization	(1,739)	(1,351)
Net Carrying Amount	9,764	1,958
Amortization expense	388	388	$ 230
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,019	1,208
2,020	1,208
2,021	1,203
2,022	1,198
2,023	851
Thereafter	4,096
Net Carrying Amount	9,764	1,958
Acquired Technology
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	8,200	0
Accumulated Amortization	0	0
Net Carrying Amount	8,200	0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Amount	8,200	0
Customer relationships and other
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Amount	3,303	3,309
Accumulated Amortization	(1,739)	(1,351)
Net Carrying Amount	1,564	1,958
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Net Carrying Amount	$ 1,564	$ 1,958

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 54,060	$ 53,364
Less accumulated depreciation	(38,079)	(36,033)
Total property and equipment, net	15,981	17,331
Transfers of equipment between inventory and property and equipment, net	1,449	1,637	$ 1,250
Depreciation and amortization	4,200	4,300	$ 4,400
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	377	377
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,978	2,868
Building | Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	10 years
Building | Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	20 years
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 33,087	32,188
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	2 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	7 years
Office furniture & equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,687	1,665
Office furniture & equipment | Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	3 years
Office furniture & equipment | Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	7 years
Computer hardware & software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,704	4,579
Computer hardware & software | Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	3 years
Computer hardware & software | Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	5 years
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,953	8,156
Leasehold and building improvements | Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	5 years
Leasehold and building improvements | Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	15 years
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,274	3,531
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	5 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property plant and equipment, useful life	7 years
Leased Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 10,800	10,800
Less accumulated depreciation	$ (6,100)	$ (5,000)

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued payroll and employee benefits	$ 759	$ 1,209
Accrued property taxes	632	661
Accrued settlement	6,750	0
Other	2,001	2,204
Accrued liabilities	$ 10,142	$ 4,074

CAPITAL STOCK - NARRATIVE (Deta

CAPITAL STOCK - NARRATIVE (Details)	May 05, 2015hourshares	Apr. 01, 2015USD ($)	Jul. 01, 2013	May 31, 2018shares	May 31, 2016shares	May 31, 2012shares	Dec. 31, 2010	Dec. 31, 2018USD ($)plans$ / sharesshares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Mar. 31, 2015USD ($)	May 31, 2003shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate (as a percent)								0.00%	0.00%	0.00%
Reverse stock split conversion ratio							0.10	10
Fair value of stock options granted during period								$ 4,400,000	$ 1,000,000	$ 3,200,000
Weighted average grant date fair value | $ / shares								$ 28.81	$ 37.35	$ 24.59
Intrinsic value of options exercised								$ 10,500,000	$ 17,700,000	$ 9,900,000
Proceeds from stock options exercised								3,200,000	$ 1,800,000	$ 1,900,000
Unrecognized compensation costs, not probable								$ 13,500,000
Weighted average purchase price of shares purchased | $ / shares								$ 18.14	$ 15.72	$ 8.23
Stockholder ownership percentage, threshold for restrictions								500.00%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock option plans | plans								2
Intrinsic value of options exercised								$ 25,200,000
Total unrecognized compensation expense related to outstanding stock options								$ 5,300,000
Period for recognition of unrecognized compensation expense								1 year 10 months 10 days
Intrinsic value of options outstanding								$ 28,900,000
Incentive Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of fair value for options granted								100.00%
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate (as a percent)								0.00%	0.00%	0.00%
Shares issued during period | shares								10,078	10,983	17,826
Share Purchase Plan 1997
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of share to be repurchased | shares				250,000	500,000	250,000
Number of shares authorized to be repurchased annually | shares						45,000
Number of shares authorized | shares	450,000							450,000
Remaining number of shares authorized to be repurchased | shares								252,448
Common stock, shares issued | shares								429,729
Increase in authorized repurchase amount | shares	75,000
Weekly hours requirement for plan eligibility | hour	20
Annual month requirement for plan eligibility	5 months
Maximum percent of annual base earnings withholding for purchases of stock	10.00%
Offering period			27 months
Accumulation period			3 months
Discount from market price, purchase date		85.00%	95.00%
Share Purchase Plan 1997 | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount from market price, purchase date		85.00%	85.00%
Monthly withholding for compensation payment		$ 2,500									$ 25,000
Share Purchase Plan 1997 | Maximum | Employee Stock Purchase Plan, Purchase Price, Greater Of
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount from market price, purchase date		65.00%	65.00%
Discount from market price, offering date		85.00%	95.00%
Share Purchase Plan 2003
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized | shares												239,050
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to outstanding stock options								$ 3,000,000
Period for recognition of unrecognized compensation expense								1 year 7 months 1 day
Shares not meeting performance targets | shares								167,000
Weighted average purchase price of shares purchased | $ / shares								$ 71.77	$ 82.36	$ 33.64
Restricted stock vested, fair value								$ 4,400,000	$ 3,900,000	$ 1,500,000

CAPITAL STOCK - OPTION ACTIVITY

CAPITAL STOCK - OPTION ACTIVITY (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	2.66%	1.76%	1.76%
Expected lives (in years)	4 years 10 months 15 days	4 years 10 months 6 days	4 years 5 months 24 days
Expected volatility (as a percent)	40.00%	41.00%	41.00%
Expected dividend rate (as a percent)	0.00%	0.00%	0.00%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period	630,847
Granted at Market	153,700
Forfeited	(18,978)
Expired	(896)
Exercised	(144,120)
Outstanding at end of period	620,553	630,847
Exercisable at end of period	386,176
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period (in dollars per share)	$ 29.312
Granted at Market (in dollars per share)	75.244
Forfeited (in dollars per share)	53.010
Expired (in dollars per share)	65.414
Exercised (in dollars per share)	25.740
Outstanding at ending of period (in dollars per share)	40.741	$ 29.312
Exercisable at end of period (in dollars per share)	$ 21.214
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	1.67%	0.74%	0.54%
Expected lives (in years)	1 year 2 months 18 days	1 year 2 months 18 days	1 year 2 months 18 days
Expected volatility (as a percent)	42.00%	45.00%	42.00%
Expected dividend rate (as a percent)	0.00%	0.00%	0.00%

CAPITAL STOCK- SUMMARY OF INFOR

CAPITAL STOCK- SUMMARY OF INFORMATION BY EXERCISE PRICE RANGE (Details)	12 Months Ended
	Dec. 31, 2018$ / sharesshares
$4.50 - $7.36
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at December 31, 2018 | shares	167,737
Weighted Average Remaining Contractual Life in Years	3 years 7 months 10 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 6.565
Number of Options Exercisable at December 31, 2018 | shares	167,737
Weighted Average Remaining Contractual Life in Years	3 years 7 months 10 days
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 6.565
Exercise price, lower range limit	4.50
Exercise price, upper range limit	$ 7.36
$7.37 - $32.21
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at December 31, 2018 | shares	128,465
Weighted Average Remaining Contractual Life in Years	5 years 3 months 5 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 15.777
Number of Options Exercisable at December 31, 2018 | shares	127,261
Weighted Average Remaining Contractual Life in Years	5 years 2 months 30 days
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 15.631
Exercise price, lower range limit	7.37
Exercise price, upper range limit	$ 32.21
$32.22 - $62.50
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at December 31, 2018 | shares	75,972
Weighted Average Remaining Contractual Life in Years	7 years 10 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 39.745
Number of Options Exercisable at December 31, 2018 | shares	54,133
Weighted Average Remaining Contractual Life in Years	7 years 15 days
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 39.647
Exercise price, lower range limit	32.22
Exercise price, upper range limit	$ 62.50
$62.51 - $69.77
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at December 31, 2018 | shares	130,000
Weighted Average Remaining Contractual Life in Years	9 years 2 months 6 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 69.770
Number of Options Exercisable at December 31, 2018 | shares	0
Weighted Average Remaining Contractual Life in Years	0 days
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 0
Exercise price, lower range limit	62.51
Exercise price, upper range limit	$ 69.77
$69.78 - $108.25
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at December 31, 2018 | shares	118,379
Weighted Average Remaining Contractual Life in Years	8 years 4 months 25 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 85.020
Number of Options Exercisable at December 31, 2018 | shares	37,045
Weighted Average Remaining Contractual Life in Years	8 years 1 month 15 days
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 79.793
Exercise price, lower range limit	69.78
Exercise price, upper range limit	$ 108.25
$4.50 - $108.25
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options Outstanding at December 31, 2018 | shares	620,553
Weighted Average Remaining Contractual Life in Years	6 years 5 months 12 days
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 40.741
Number of Options Exercisable at December 31, 2018 | shares	386,176
Weighted Average Remaining Contractual Life in Years	5 years 23 days
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 21.214
Exercise price, lower range limit	4.50
Exercise price, upper range limit	$ 108.25

CAPITAL STOCK CAPITAL STOCK - R

CAPITAL STOCK CAPITAL STOCK - RESTRICTED STOCK (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Granted (in dollars per share)	$ 18.14	$ 15.72	$ 8.23
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested, period start (in shares)	124,943
Granted (in shares)	190,730
Vested (in shares)	(56,243)
Forfeited (in shares)	0
Non-vested, period end (in shares)	259,430	124,943
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Nonvested, at period start (in dollars per share)	$ 57.67
Granted (in dollars per share)	71.77	$ 82.36	$ 33.64
Vested (in dollars per share)	28.97
Forfeited (in dollars per share)	0
Nonvested, at period end (in dollars per share)	$ 74.26	$ 57.67

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance		$ 86,975
Ending balance	$ 122,409
Total accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	232	97
Other comprehensive income (loss)	45	135
Ending balance	277	232
Minimum pension liability
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(489)	(501)
Other comprehensive income (loss)	70	12
Ending balance	(419)	(489)
Foreign currency translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	721	598
Other comprehensive income (loss)	(25)	123
Ending balance	$ 696	$ 721

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Increase in royalties payable	$ 300	$ 300	$ 400
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2,019	2,134
2,020	1,993
2,021	1,859
2,022	1,765
2,023	2,357
Thereafter	0
Total operating lease, future minimum payments	10,108
Rent expense	1,500	1,600	1,600
Other rent expense	400	400	$ 300
Accrued settlement	6,750	0
Estimated loss provision	7,000
Warranty reserve	$ 200	$ 200

INTEREST AND OTHER (INCOME) E_3

INTEREST AND OTHER (INCOME) EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Income and Expenses [Abstract]
Interest income	$ (261)	$ (167)	$ (124)
Interest expense	310	245	160
Other expense (income), net	(62)	(228)	(7)
Interest and other expense (income)	(13)	(150)	29
Cash paid for interest	$ 224	$ 206	$ 78

CREDIT FACILITY AND LONG-TERM_2

CREDIT FACILITY AND LONG-TERM DEBT (Details) - Line of Credit - USD ($)	Jul. 27, 2017	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Line of credit and other short-term borrowings		$ 6,000,000	$ 6,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30,000,000		$ 15,000,000
Contingent increase in maximum borrowing capacity	20,000,000
Contingent maximum borrowing capacity	$ 50,000,000
Basis spread on variable rate	1.10%
Minimum annual interest charge	$ 60,000
Unamortized debt issuance expense		$ 120,000
Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2018USD ($)segment	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment									2
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue, net	$ 34,064	$ 30,955	$ 29,662	$ 32,765	$ 36,041	$ 30,336	$ 33,405	$ 29,559	$ 127,446	$ 129,341	$ 130,083
Operating income (loss)	3,314	$ (3,595)	$ 2,204	$ 1,871	7,093	$ 3,778	$ 4,560	$ 2,788	3,794	18,219	16,533
Income before income taxes									3,807	18,369	16,504
Investments in unconsolidated affiliates	8,018				0				8,018	0	0
Total assets	156,452				135,444				156,452	135,444	130,844
Net assets	122,409				100,440				122,409	100,440	86,975
Capital expenditures									1,358	3,469	3,417
Depreciation and amortization									$ 4,595	$ 4,754	$ 4,645
Customer Concentration Risk | Sales Revenue, Net | Butler Animal Health Supply, LLC
Segment Reporting, Other Significant Reconciling Item [Line Items]
Concentration risk, percentage									15.00%	13.00%	13.00%
Customer Concentration Risk | Sales Revenue, Net | Merck
Segment Reporting, Other Significant Reconciling Item [Line Items]
Concentration risk, percentage									12.00%	12.00%	11.00%
Customer Concentration Risk | Sales Revenue, Net | De Lage Landen Financial Services, Inc.
Segment Reporting, Other Significant Reconciling Item [Line Items]
Concentration risk, percentage									6.00%	7.00%	11.00%
Customer Concentration Risk | Sales Revenue, Net | Eli Lilly
Segment Reporting, Other Significant Reconciling Item [Line Items]
Concentration risk, percentage									9.00%	11.00%	12.00%
U.S.
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue, net									$ 115,543	$ 116,823	$ 120,082
Total assets	152,633				132,070				152,633	132,070	127,827
Canada
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue, net									2,992	2,924	2,378
Europe
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue, net									5,995	4,780	4,781
Total assets	3,819				3,374				3,819	3,374	3,017
Other International
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue, net									2,916	4,814	2,842
Core Companion Animal Health
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue, net									108,924	105,191	107,398
Operating income (loss)									2,040	12,656	13,015
Income before income taxes									2,053	12,828	12,938
Investments in unconsolidated affiliates	8,018				0				8,018	0	0
Total assets	133,586				111,625				133,586	111,625	110,995
Net assets	96,129				75,984				96,129	75,984	68,072
Capital expenditures									180	209	1,135
Depreciation and amortization									3,369	3,736	3,800
Other Vaccines, Pharmaceuticals and Products
Segment Reporting, Other Significant Reconciling Item [Line Items]
Total revenue, net									18,522	24,150	22,685
Operating income (loss)									1,754	5,563	3,518
Income before income taxes									1,754	5,541	3,566
Investments in unconsolidated affiliates	0				0				0	0	0
Total assets	22,866				23,819				22,866	23,819	19,849
Net assets	$ 26,280				$ 24,456				26,280	24,456	18,903
Capital expenditures									1,178	3,260	2,282
Depreciation and amortization									$ 1,226	$ 1,018	$ 845

SUPPLEMENTAL QUARTERLY FINANC_3

SUPPLEMENTAL QUARTERLY FINANCIAL INFORMATION (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 34,064	$ 30,955	$ 29,662	$ 32,765	$ 36,041	$ 30,336	$ 33,405	$ 29,559	$ 127,446	$ 129,341	$ 130,083
Gross profit	15,472	14,794	13,065	13,307	16,570	13,553	14,929	13,209	56,638	58,261	53,892
Operating income (loss)	3,314	(3,595)	2,204	1,871	7,093	3,778	4,560	2,788	3,794	18,219	16,533
Net income (loss) before equity in losses of unconsolidated affiliates	3,540	(1,670)	1,897	2,155	(1,069)	3,083	3,139	4,303	5,922	9,456
Net income, after equity in losses from unconsolidated affiliates	3,468	(1,670)	1,897	2,155					5,850	9,456	12,165
Net income attributable to Heska Corporation	$ 3,468	$ (1,670)	$ 1,897	$ 2,155	$ (1,069)	$ 3,083	$ 3,333	$ 4,606	$ 5,850	$ 9,953	$ 10,508
Basic earnings (loss) per share attributable to Heska Corporation (in dollars per share)	$ 0.47	$ (0.23)	$ 0.26	$ 0.30	$ (0.15)	$ 0.43	$ 0.47	$ 0.67	$ 0.81	$ 1.42	$ 1.55
Diluted earnings (loss) per share attributable to Heska Corporation (in dollars per share)	$ 0.44	$ (0.23)	$ 0.24	$ 0.28	$ (0.15)	$ 0.40	$ 0.44	$ 0.60	$ 0.74	$ 1.30	$ 1.43