Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | IDEXX LABORATORIES INC /DE | |
Entity Central Index Key | 874,716 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 86,863,215 | |
Trading Symbol | idxx |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 159,229 | $ 187,675 |
Marketable securities | 284,255 | |
Accounts receivable, net of reserves of $4,808 in 2018 and $4,576 in 2017 | 259,865 | 234,597 |
Inventories | 179,039 | 164,318 |
Other current assets | 103,574 | 101,140 |
Total current assets | 701,707 | 971,985 |
Long-Term Assets: | ||
Property and equipment, net | 384,246 | 379,096 |
Goodwill | 201,022 | 199,873 |
Intangible assets, net | 41,893 | 43,846 |
Other long-term assets | 140,624 | 118,616 |
Total long-term assets | 767,785 | 741,431 |
TOTAL ASSETS | 1,469,492 | 1,713,416 |
Current Liabilities: | ||
Accounts payable | 70,409 | 66,968 |
Accrued liabilities | 210,384 | 253,418 |
Line of credit | 407,500 | 655,000 |
Current portion of deferred revenue | 40,545 | 29,181 |
Total current liabilities | 728,838 | 1,004,567 |
Long-Term Liabilities: | ||
Deferred income tax liabilities | 27,529 | 25,353 |
Long-term debt | 609,005 | 606,075 |
Long-term deferred revenue, net of current portion | 68,529 | 35,545 |
Other long-term liabilities | 84,573 | 95,718 |
Total long-term liabilities | 789,636 | 762,691 |
Total liabilities | 1,518,474 | 1,767,258 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ Deficit: | ||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 104,676 shares in 2018 and 104,275 shares in 2017; Outstanding: 86,997 shares in 2018 and 87,104 shares in 2017 | 10,468 | 10,428 |
Additional paid-in capital | 1,094,159 | 1,073,931 |
Deferred stock units: Outstanding: 217 units in 2018 and 229 units in 2017 | 5,772 | 5,988 |
Retained earnings | 880,348 | 803,545 |
Accumulated other comprehensive loss | (34,206) | (36,470) |
Treasury stock, at cost: 17,679 shares in 2018 and 17,171 shares in 2017 | (2,005,813) | (1,911,528) |
Total IDEXX Laboratories, Inc. stockholders’ deficit | (49,272) | (54,106) |
Noncontrolling interest | 290 | 264 |
Total stockholders’ deficit | (48,982) | (53,842) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 1,469,492 | $ 1,713,416 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, reserves | $ 4,808 | $ 4,576 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 104,676,000 | 104,275,000 |
Common stock, shares, outstanding | 86,997,000 | 87,104,000 |
Deferred stock units, outstanding | 217,000 | 229,000 |
Treasury stock, shares | 17,679,000 | 17,171,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Total revenue | $ 537,656 | $ 462,021 |
Cost of Revenue: | ||
Cost of product revenue | 118,246 | 103,027 |
Cost of service revenue | 116,311 | 100,803 |
Total cost of revenue | 234,557 | 203,830 |
Gross profit | 303,099 | 258,191 |
Expenses: | ||
Sales and marketing | 100,101 | 87,244 |
General and administrative | 60,931 | 52,914 |
Research and development | 29,023 | 25,790 |
Income from operations | 113,044 | 92,243 |
Interest expense | (9,274) | (8,589) |
Interest income | 579 | 1,083 |
Income before provision for income taxes | 104,349 | 84,737 |
Provision for income taxes | 14,873 | 15,679 |
Net income | 89,476 | 69,058 |
Less: Net income attributable to noncontrolling interest | 25 | 39 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ 89,451 | $ 69,019 |
Earnings per Share: | ||
Basic | $ 1.02 | $ 0.78 |
Diluted | $ 1.01 | $ 0.77 |
Weighted Average Shares Outstanding: | ||
Basic | 87,331 | 88,117 |
Diluted | 88,944 | 89,994 |
Product [Member] | ||
Revenue: | ||
Total revenue | $ 317,440 | $ 271,965 |
Service [Member] | ||
Revenue: | ||
Total revenue | $ 220,216 | $ 190,056 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net income | $ 89,476 | $ 69,058 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 5,165 | 8,014 |
Unrealized loss on net investment hedge | (2,216) | (1,093) |
Unrealized gain (loss) on investments, net of tax expense (benefit) of $40 in 2018 and $(26) in 2017 | 118 | (39) |
Unrealized loss on derivative instruments: | ||
Unrealized loss, net of tax (benefit) of $(377) in 2018 and $(912) in 2017 | (2,388) | (1,534) |
Reclassification adjustment for losses (gains) included in net income, net of tax (benefit) expense of $(250) in 2018 and $401 in 2017 | 1,585 | (674) |
Unrealized loss on derivative instruments | (803) | (2,208) |
Other comprehensive gain, net of tax | 2,264 | 4,674 |
Comprehensive income | 91,740 | 73,732 |
Less: comprehensive income attributable to noncontrolling interest | 25 | 39 |
Comprehensive income attributable to IDEXX Laboratories, Inc. | $ 91,715 | $ 73,693 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on investments, tax expense (benefit) | $ 40 | $ (26) |
Unrealized loss, tax (benefit) expense | (377) | (912) |
Reclassification adjustment for loss (gains) included in net income, tax (benefit) expense | $ (250) | $ 401 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 89,476 | $ 69,058 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,804 | 20,307 |
Benefit of deferred income taxes | 3,005 | 1,941 |
Share-based compensation expense | 5,960 | 5,655 |
Other | 1,091 | 860 |
Changes in assets and liabilities: | ||
Accounts receivable | (21,800) | (19,429) |
Inventories | (8,070) | (5,369) |
Other assets and liabilities | (52,302) | (38,531) |
Accounts payable | (1,939) | (3,687) |
Deferred revenue | (1,327) | 469 |
Net cash provided by operating activities | 34,898 | 31,274 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (23,726) | (23,647) |
Purchase of marketable securities | (87) | (90,492) |
Proceeds from the sale and maturities of marketable securities | 284,125 | 87,476 |
Acquisitions of a business, net of cash acquired | (2,349) | |
Net cash provided (used) by investing activities | 260,312 | (29,012) |
Cash Flows from Financing Activities: | ||
(Repayments) borrowings on revolving credit facilities, net | (247,500) | 60,000 |
Repurchases of common stock | (83,487) | (63,910) |
Proceeds from exercises of stock options and employee stock purchase plans | 14,551 | 12,526 |
Shares withheld for statutory tax withholding on restricted stock | (8,555) | (7,303) |
Net cash (used) provided by financing activities | (324,991) | 1,313 |
Net effect of changes in exchange rates on cash | 1,335 | 1,932 |
Net (decrease) increase in cash and cash equivalents | (28,446) | 5,507 |
Cash and cash equivalents at beginning of period | 187,675 | 154,901 |
Cash and cash equivalents at end of period | $ 159,229 | $ 160,408 |
Basis Of Presentation And Princ
Basis Of Presentation And Principles Of Consolidation | 3 Months Ended |
Mar. 31, 2018 | |
Basis Of Presentation And Principles Of Consolidation [Abstract] | |
Basis Of Presentation And Principles Of Consolidation | NOTE 1 . BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying unaudited condensed consolidated financial statements of IDEXX Laboratories, Inc. and its subsidiaries have been prepared in accordance with U.S. GAAP for interim financial information and with the requirements of Regulation S-X, Rule 10-01 for financial statements required to be filed as a part of this Quarterly Report on Form 10-Q. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to "IDEXX," the "Company," "we," "our" or "us" refer to IDEXX Laboratories, Inc. and its subsidiaries. The accompanying unaudited condensed consolidated financial statements include the accounts of IDEXX Laboratories, Inc. and our wholly-owned and majority-owned subsidiaries. We do not have any variable interest entities for which we are the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of our management, all adjustments necessary for a fair statement of our financial position and results of operations. All such adjustments are of a recurring nature. The consolidated balance sheet data at December 31, 2017 , was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results of operations for the three months ended March 3 1 , 201 8 , are not necessarily indicative of the results to be expected for the full year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with this Quarterly Report on Form 10-Q for the quarter ended March 31 , 201 8 , and our Annual Report on Form 10-K for the year ended December 31, 201 7 , (the “201 7 Annual Report”) filed with the SEC. For the three months ended March 31, 2018, changes in stockholders’ equity included (i) changes in other comprehensive income reflected in the unaudited condensed consolidated statements of comprehensive income; (ii) changes in common stock and additional paid-in capital reflected in the unaudited condensed consolidated statements of cash flows (including share-based compensation expense, proceeds from exercise of stock options and employee stock purchase plans and repurchases of common stock); (iii) changes in noncontrolling interest; (iv) changes in net income and (v) adjustment s to retained earnings in connection with the adoption of ASU 2014-09 and ASU 2016-16. The cumulative effect of applying these standards was an adjustment of $12.6 million to the opening balance of retained earnings . See “Note 2. Accounting Policies” for the impact of new accounting pronouncements adopted. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | NOTE 2 . ACCOUNTING POLICIES Significant Accounting Policies The significant accounting policies used in preparation of these unaudited condensed consolidated financial statements for the three months ended March 31, 2018 are consistent with those discussed in Note 2 to the consolidated financial statements in our 2017 Annual Report, except as noted below. New Accounting Pronouncements Adopted Effective January 1, 2018, we adopted the New Revenue Standard using the modified retrospective method for all contracts not completed as of the date of adoption. We recognized the cumulative effect of initially applying the New Revenue Standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods presented. As a result of the adoption of ASU 2014-09, we have changed our accounting policy for revenue recognition and the details of the significant changes and quantitative impact of the changes are set out below. Up-Front Customer Loyalty Programs. Our up-front loyalty programs provide customers with incentives in the form of cash or IDEXX Points upon entering into multi-year agreements to purchase annual minimum amounts of future products or services. Under previous U.S. GAAP, if up-front incentives were subsequently utilized to purchase instruments, we limited instrument revenue to the amount of consideration received from the customer at the time of placement that was not contingent on future purchases and consequently deferred instrument revenue and costs at the time of placement. The New Revenue Standard permits revenue recognition at the time of instrument placement when the consideration is committed, but contingent on the purchase of future goods and services. As a result, we have accelerated our recognition of instrument revenues and costs when up-front incentives are used to purchase instruments. The New Revenue Standard did not change our accounting for up-front payments to customers, which continue to be capitalized as customer acquisition costs, within other assets, and subsequently recognized as a reduction to revenue over the term of the agreement. We previously reported deferred instrument revenues and costs within net customer acquisition cost, and upon transition to the New Revenue Standard the decrease in deferred revenue and costs resulted in an increase in our reported customer acquisition costs. Volume Commitment Programs. Our volume commitment programs provide customers with a free instrument or system upon entering into multi-year agreements to purchase annual minimum amounts of future products or services and includes our new IDEXX 360 program introduced in the first quarter of 2018. Under previous U.S. GAAP, we limited instrument revenue to the amount of consideration received from the customer at the time of placement that was not contingent on future purchases and consequently instrument revenue and cost were recognized over the term of the customer agreement. The New Revenue Standard permits revenue recognition at the time of instrument placement when the consideration is committed, but contingent on the purchase of future goods and services. As a result, we have accelerated recognition on instruments revenues and costs placed through our volume commitment programs. This change resulted in a net increase in current and long-term other assets upon transition to the New Revenue Standard as we recognized contract assets related to instrument revenue recognized in advance of billings, offset by a reduction in previously deferred instrument cost. Instrument Rebate Programs. Our instrument rebate programs, previously referred to as IDEXX Instrument Marketing Programs, require an instrument purchase and provide customers the opportunity to earn future rebates based on the volume of products and services they purchase over the term of the program. Under previous U.S. GAAP, the total consideration in the contract, including an estimate of future optional purchases, was allocated to all products and services based on their standalone selling prices. This resulted in deferring a portion of instrument revenue related to our obligation to provide future rebate incentives, which was included in accrued liabilities. Under the New Revenue Standard, the total consideration in the contract is limited to only goods and services that the customer is presently obligated to purchase and does not include future purchases that are optional. The customer’s right to earn rebates on future purchases is accounted for as a separate performance obligation. The exclusion of optional future purchases resulted in the instrument absorbing a higher relative allocation of future rebates. Therefore, we defer an increased portion of instrument revenue upon placement, which is realized as higher recurring revenue when customers buy future products and services, offsetting future rebates as they are earned. This change resulted in an increase in current and long-term deferred revenue upon transition to the New Revenue Standard and a reduction to accrued and other long-term liabilities for rebate obligations that are now reported as deferred revenues. Reagent Rental Programs. Our reagent rental programs provide customers the right to use our instruments upon entering into multi-year agreements to purchase annual minimum amounts of consumables. These types of agreements include an embedded operating lease for the right to use our instrument and no instrument revenue is recognized at the time of instrument installation. Under the New Revenue Standard, we continue to recognize a portion of the revenue allocated to the embedded lease concurrent with the future sale of consumables over the term of the agreement. We determine the amount of revenue allocated from the consumable to the embedded lease based on standalone selling prices and determine the rate of lease revenue recognition in proportion to the customer’s minimum volume commitment. There was no impact to our consolidated financial statements upon transition to the New Revenue Standard, as a result of our reagent rental programs. Other Customer Incentive Programs . Certain agreements with customers include discounts or rebates on the sale of products and services applied retrospectively, such as volume rebates achieved by purchasing a specified threshold of goods and services. Under the New Revenue Standard, we continue to record revenue reductions related to these customer incentive programs and record the related refund obligations in accrued liabilities based on the actual issuance of incentives, incentives earned but not yet issued and estimates of incentives to be earned in the future. There was no impact to our consolidated financial statements upon transition to the New Revenue Standard, as a result of our other customer incentive programs. IDEXX Points. IDEXX P oints may be applied to trade receivables due to us, converted to cash, or applied against the purchase price of IDEXX products and services. Under the New Revenue Standard, we continue to consider IDEXX Points equivalent to cash and IDEXX Points that have not yet been used by customers are included in accrued liabilities until utilized or expired. There was no impact to our consolidated financial statements upon transition to the New Revenue Standard, as a result of IDEXX P oints. Shipping and Delivery. Under previous U.S. GAAP, we recognized revenue and cost from the sales of diagnostic products and accessories upon delivery to the customer because our typical business practice is to cover losses incurred while in transit. Under the New Revenue Standard, revenue and costs are recognized when a customer obtains control of the product based on legal title transfer and our right to payment, which generally occurs at the time of shipment. This resulted in an acceleration of revenue and cost recognition and an increase in accounts receivable and a reduction in inventories upon transition to the New Revenue Standard. Costs to Obtain a Contract. Under previous U.S. GAAP, we recognized sales commissions incurred to obtain long term product and service contracts as sales and marketing expenses as incurred. Under the New Revenue Standard, we defer commissions incurred to obtain long term contracts, when considered incremental and recoverable. Sales commissions are amortized as sales and marketing expenses consistently with the pattern of transfer for the product or service to which the asset relates. If the expected amortization period is one year or less, the sales commission is expensed when incurred. This change resulted in an increase to other current and long-term assets upon transition to the New Revenue Standard. Income Taxes. The adoption of the New Revenue Standard primarily resulted in an acceleration of revenues under up-front customer loyalty programs and an increase in deferred revenue under instrument rebate programs, which in turn generated additional deferred tax assets within other long-term assets. The cumulative effects of the changes made to our consolidated balance sheet as of January 1, 2018, in connection with the adoption of the New Revenue Standard were as follows ( in thousands ) : Condensed Consolidated Balance Sheet Previous U.S. GAAP December 31, 2017 New U.S. GAAP Attributed to the (Reported) January 1, 2018 New Revenue Standard ASSETS Cash, cash equivalents and marketable securities $ 471,930 $ 471,930 $ - Accounts receivable 234,597 237,281 2,684 Inventories 164,318 163,184 (1,134) Property and equipment, net 379,096 379,096 - Goodwill and intangible assets, net 243,719 243,719 - Other assets 219,756 246,481 26,725 TOTAL ASSETS $ 1,713,416 $ 1,741,691 $ 28,275 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 66,968 $ 66,968 $ - Accrued liabilities 253,418 254,381 963 Deferred income tax liabilities 25,353 25,087 (266) Line of credit and long-term debt 1,261,075 1,261,075 - Deferred revenue 64,726 110,158 45,432 Other long-term liabilities 95,718 82,840 (12,878) Total liabilities 1,767,258 1,800,509 33,251 Stockholders’ Deficit: Retained earnings 803,545 798,569 (4,976) All other stockholders' deficit and noncontrolling interest (857,387) (857,387) - Total stockholders’ deficit (53,842) (58,818) (4,976) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,713,416 $ 1,741,691 $ 28,275 The following tables compare the reported unaudited condensed consolidated balance sheet, statement of operations and cash flows, as of and for the three months ended March 31, 2018, to the pro forma amounts had the previous U.S. GAAP guidance been in effect ( in thousands ): Condensed Consolidated Balance Sheet As of March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard ASSETS Cash and cash equivalents $ 159,229 $ 159,229 $ - Accounts receivable 257,214 259,865 2,651 Inventories 180,328 179,039 (1,289) Property and equipment, net 384,246 384,246 - Goodwill and intangible assets, net 242,915 242,915 - Other assets 212,896 244,198 31,302 TOTAL ASSETS $ 1,436,828 $ 1,469,492 $ 32,664 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 70,409 $ 70,409 $ - Accrued liabilities 209,437 210,384 947 Deferred income tax liabilities 29,786 27,529 (2,257) Line of credit and long-term debt 1,016,505 1,016,505 - Deferred revenue 64,813 109,074 44,261 Other long-term liabilities 94,296 84,573 (9,723) Total liabilities 1,485,246 1,518,474 33,228 Stockholders’ Deficit: Retained earnings 880,785 880,348 (437) Accumulated other comprehensive loss (34,079) (34,206) (127) All other stockholders' deficit and noncontrolling interest (895,124) (895,124) - Total stockholders’ deficit (48,418) (48,982) (564) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,436,828 $ 1,469,492 $ 32,664 Condensed Consolidated Statement of Operations For the Three Months Ended March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard Total revenue $ 525,369 $ 537,656 $ 12,287 Total cost of revenue 227,965 234,557 6,592 Gross profit 297,404 303,099 5,695 Total operating expense 190,626 190,055 (571) Income from operations 106,778 113,044 6,266 Interest expense (9,274) (9,274) - Interest income 862 579 (283) Income before provision for income taxes 98,366 104,349 5,983 Provision for income taxes 13,429 14,873 1,444 Net income $ 84,937 $ 89,476 $ 4,539 Condensed Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard Cash Flows from Operating Activities: Net income $ 84,937 $ 89,476 $ 4,539 Adjustments to reconcile net income to net cash provided by operating activities: Benefit of deferred income taxes 1,088 3,005 1,917 All other adjustments to reconcile net income to net cash provided by operating activities 27,855 27,855 - Changes in assets and liabilities, net (78,982) (85,438) (6,456) Net cash provided by operating activities $ 34,898 $ 34,898 $ - There were no changes to cash flows from investing and financing activities as a result of the adoption of the New Revenue Standard. Effective January 1, 2018, we adopted FASB ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. We recognized the cumulative effect of applying this standard as an adjustment to the opening balance of retained earnings and a reduction to other long-term assets of $7.7 million. Effective January 1, 2018, we adopted FASB ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists on the classification of certain cash receipts and payments. We adopted this amendment on a retrospective basis. This amendment did not have an impact on our financial statements. Effective January 1, 2018, we adopted FASB ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , to add guidance on the classification and presentation of restricted cash. These amendments require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this standard did not have an impact on our financial statements. Effective January 1, 2018, we adopted FASB ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) , to simplify the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill. The adoption of this standard did not have an impact on our financial statements. 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 the three months ended March 31, 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 “Note 11. Income Taxes.” Effective April 1, 2018, we early adopted FASB ASU 2017-12, Derivatives and Hedging (Topic 815) , which amends the hedge accounting recognition and presentation requirements. The adoption of this guidance is not expected to have an impact on our consolidated financial statements or related disclosures, however it allows us to simplify our procedures to assess critical terms. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations’ leasing arrangements. Since then, the FASB has issued updates to ASU 2016-02. The principal difference from previous guidance is that effective upon adoption, the lease assets and lease liabilities arising from operating leases will be recognized in the balance sheet. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. In transition, we are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, including the option to utilize a number of practical expedients. We are in the process of evaluating our lessee and lessor arrangements to determine the impact of this amendment on o ur consolidated financial statements. This evaluation includes an extensive review of revenue through leasing arrangements as well as lease expenses, which are primarily through operating lease arrangements for most of our facilities. We currently expect that most of our operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon our adoption, which will increase our total assets and total liabilities that we report relative to such amounts prior to adoption. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) , to allow a reclassification from accumulated other comprehensive income to retained earnings related to the stranded effects of the 2017 Tax Act. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. In transition, we are required to apply the amendments either in the period of adoption or retrospectively . We are currently evaluating the impact these amendments will have on our consolidated financial statements. For a discussion of other accounting standards that have been issued by the FASB but are not yet effective, refer to the New Accounting Pronouncements Not Yet Adopted section in our 2017 Annual Report. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 3 . REVENUE RECOGNITION Under the New Revenue Standard, revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to a customer. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services to a customer. To meet the requirements of the New Revenue Standard and accurately present the consideration received in exchange for promised products or services, we applied the prescribed five-step model outlined below: 1. Identification of a contract or agreement with a customer 2. Identification of our performance obligations in the contract or agreement 3. Determination of the transaction price 4. Allocation of the transaction price to the performance obligations 5. Recognition of revenue when, or as, we satisfy a performance obligation We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The timing of revenue recognition, billings, and cash collections results in accounts receivable, contract assets as a result of revenue recognized in advance of billings (included within other assets), and contract liabilities or deferred revenue as a result of receiving consideration in advance of revenue recognition within our unaudited condensed consolidated balance sheet. Our general payment terms range from 30 to 60 days, with exceptions in certain geographies. Below is a listing of our major categories of revenue for our products and services: Diagnostic Products and Accessories . Diagnostic products and accessories revenues, including VetLab consumables and accessories, rapid assay, LPD, Water , and OPTI testing products, are recognized and invoiced at the time of shipment, which is when the customer obtains control of the product based on legal title transfer and we have the right to payment. Shipping costs reimbursed by the customer are included in revenue and cost of sales. As a practical expedient, we do not account for shipping activities as a separate performance obligation. Reference Laboratory Diagnostic and Consulting Services . Reference laboratory revenues are recognized and invoiced when the laboratory diagnostic service is performed. Instruments, Software and Systems. CAG Diagnostics capital instruments, veterinary software and diagnostic imaging systems revenues are recognized and invoiced when the customer obtains control of the products based on legal title transfer and we have the right to payment, which generally occurs at the time of installation and customer acceptance. Our instruments, software, and systems are often included in one of our significant customer programs, as further described below. For veterinary software systems that include multiple performance obligations, such as perpetual software licenses and computer hardware, we allocate revenue to each performance obligation based on estimates of the price that we would charge the customer for each promised product or service if it were sold on a standalone basis. Lease Revenue . Lease revenue on instrument systems under rental agreements and reagent rental programs is recognized on a ratable basis over the term of the agreement. Customers typically pay for rental agreements in equal monthly amounts over the term of the rental agreement. See below for revenue recognition under Reagent Rental Programs. Extended Warranties and Post-Contract Support . CAG Diagnostics capital instruments and diagnostic imaging systems extended warranties typically provide customers with continued coverage for a period of 1 to 5 years beyond the first -year standard warranty. Customers can either pay in full for the extended warranty at the time of instrument or system purchase or can be billed on a quarterly basis over the term of the contract. We recognize revenue associated with extended warranties over time on a ratable basis using a time elapsed measure of performance over the contract term, which approximates the expected timing in which applicable services are performed. Veterinary software post-contract support provides customers with access to technical support when and as needed through access to call centers and online customer assistance. Post-contract support contracts typically have a term of 12 months and customers are billed for post-contract support in equal quarterly amounts over the term. We recognize revenue for post-contract support services over time on a ratable basis using a time elapsed measure of performance over the contract term, which approximates the expected timing in which applicable services are performed. Upon adoption of the New Revenue Standard on January 1, 2018, our deferred revenue related to extended warranties and post-contract support was $40.3 million, of which approximately $11.8 million was recognized during the three months ended March 31, 2018. Furthermore, as a result of new agreements, our deferred revenues related to extended warranties and post-contract support were $41.3 million at March 31, 2018. We do not disclose information about remaining performance obligations that are part of contracts with an original expected duration of one year or less and do not adjust for the effect of the financing components when the period between customer payment and revenue recognition is one year or less, which are practical expedients provided within the New Revenue Stan d ard. Deferred revenue related to extended warranties and post-contract support with an original duration of more than one year was $28.8 million at March 31, 2018, of which approximately 20% , 28% , and 22% are expected to be recognized during the remainder of 2018 , the full year 2019, and the full year 2020, respectively. Additionally, we have determined these agreements do not include a significant financing component. SaaS Subscriptions . We offer a variety of veterinary software and diagnostic imaging SaaS subscriptions including Neo, Animana, Pet Health Network Pro, Petly Plans, Web PACS, and rVetLink. We recognize revenue for our SaaS subscriptions over time on a ratable basis over the contract term, beginning on the date our service is made available to the customer. Our subscription contracts vary in term from monthly to 2 years. Customers typically pay for our subscription contracts in equal monthly amounts over the term of the agreement. Deferred revenue related to our SaaS subscriptions is not material. Contracts with Multiple Performance Obligations . We enter into contracts where customers purchase a combination of IDEXX products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires significant judgment. We determine the transaction price for a contract based on the consideration we expect to receive in exchange for the transferred goods or services. To the extent the transaction price includes variable consideration, such as volume rebates or expected price adjustments, we apply judgment in constraining the estimated variable consideration due to factors that may cause reversal of revenue recognized. We evaluate constraints based on our historical and projected experience with similar customer contracts. We allocate revenue to each performance obligation in proportion to the relative standalone selling prices and recognize revenue when transfer of the related goods or services has occurred for each obligation. We utilize the observable standalone selling price when available, which represents the price charged for the performance obligation when sold separately. When standalone selling prices for our products or services are not directly observable we determine the standalone selling prices using relevant information available and apply suitable estimation methods including, but not limited to, the cost plus a margin approach. We recognize revenue as each performance obligation is satisfied, either at a point in time or over time, as described in the revenue categories above. We apply a practical expedient provided by the New Revenue Standard and do not disclose information about remaining performance obligations that are part of contracts with an original expected duration of one year or less. The following customer programs represent our most significant customer contracts which contain multiple performance obligations: Customer Commitment Programs . We offer customer incentives upon entering into multi-year agreements to purchase annual minimum amounts of products and services. Up-Front Customer Loyalty Programs . Our up-front loyalty programs provide customers with incentives in the form of cash payments or IDEXX Points upon entering into multi-year agreements to purchase annual minimum amounts of future products or services. If a customer breaches its agreement, they are required to refund all or a portion of the up-front cash or IDEXX Points, or make other repayments, remedial actions, or both. Up-front incentives to customers in the form of cash or IDEXX Points are not made in exchange for distinct goods or services and are capitalized as customer acquisition costs within other assets, which are subsequently recognized as a reduction to revenue over the term of the customer agreement. If these up-front incentives are subsequently utilized to purchase instruments, we allocate total consideration, including future committed purchases less up-front incentives and estimates of expected price adjustments, based on relative standalone selling prices to identified performance obligations and recognize instrument revenue and cost at the time of installation and customer acceptance. We have determined these agreements do not include a significant financing component. Upon adoption of the New Revenue Standard on January 1, 2018, our capitalized customer acquisition costs were $107.5 million, of which approximately $7.2 million was recognized as a reduction of revenue during the three months ended March 31, 2018. Furthermore, as a result of new up-front customer loyalty payments, our capitalized customer acquisition costs were $113.8 million at March 31, 2018. We monitor customer purchases over the term of their agreement to assess the realizability of our capitalized customer acquisition costs and review estimates of variable consideration. Impairments, revenue adjustments that relate to performance obligations satisfied in prior periods, and contract modifications during the three months ended March 31, 2018, were not material. Volume Commitment Programs . Our volume commitment programs provide customers with a free instrument or system upon entering into multi-year agreements to purchase annual minimum amounts of products and services. We allocate total consideration, including future committed purchases and expected price adjustments, based on relative standalone selling prices to identified performance obligations and recognize instrument revenue and cost in advance of billing the customer at the time of installation and customer acceptance, which is also w hen the customer obtains control of the instrument based on legal title transfer . Our right to future consideration related to instrument revenue is recorded as a contract asset within other current and long-term assets. The contract asset is transferred to accounts receivables when customers are billed for future products and services over the term of the contract. We have determined these agreements do not include a significant financing component. Upon adoption of the New Revenue Standard on January 1, 2018, our volume commitment contract assets were $5.6 million, of which approximately $1.3 million was reclassified to accounts receivable when customers were billed for related products and services during the three months ended March 31, 2018. Furthermore, as a result of new placements under volume commitment programs, our contract assets were $12.3 million at March 31, 2018. We monitor customer purchases over the term of their agreement to assess the realizability of our contract assets and review estimates of variable consideration. Impairments, revenue adjustments that relate to performance obligations satisfied in prior periods, and contract modifications during the three months ended March 31, 2018, were not material. For our up-front customer loyalty and volume commitment programs, we estimate future revenues related to multi-year agreements to be approximately $878.5 million, of which approximately 23% , 24% , and 19% are expected to be recogniz ed during the remainder of 2018 , the full year 2019, and the full year 2020, respectively. These future revenues relate to performance obligations not yet satisfied, for which customers have committed to purchase goods and services, net of the expected revenue reductions from customer acquisition costs and expected price adjustments, and as a result, are lower than stated contractual commitments by our customers. Instrument Rebate Programs . Our instrument rebate programs, previously referred to as IDEXX Instrument Marketing Programs, require an instrument purchase and provide customers the opportunity to earn future rebates based on the volume of products and services they purchase over the term of the program. We account for the customer’s right to earn rebates on future purchases as a separate performance obligation and determine the standalone selling price based on an estimate of rebates the customer will earn over the term of the program. Total consideration allocated to identified performance obligations is limited to goods and services that the customer is presently obligated to purchase and does not include estimates of future purchases that are optional. We allocate a portion of instrument revenue to our customer’s right to earn rebates on future purchases, which is deferred and recognized upon the purchase of future products and services, offsetting future rebates as they are earned. Upon adoption of the New Revenue Standard on January 1, 2018, our deferred revenue related to instrument rebate programs was $65.9 million, of which approximately $4.6 million was recognized when customers purchased eligible products and services, and earned rebates during the three months ended March 31, 2018. Furthermore, as a result of new instrument purchases under rebate programs, our deferred revenues were $63.7 million at March 31, 2018, of which approximately 22% , 26% and 21% are expected to be recognized during the remainder of 2018, the full year 2019, and the full year 2020, respectively. Reagent Rental Programs . Our reagent rental programs provide our customers the right to use our instruments upon entering into multi-year agreements to purchase annual minimum amounts of consumables. These types of agreements include an embedded operating lease for the right to use our instrument and no instrument revenue is recognized at the time of instrument installation. We determine the amount of lease revenue allocated to the instrument based on relative standalone selling prices and determine the pattern of instrument revenue recognition in proportion to the customer’s minimum purchase commitment. The cost of the instrument is capitalized within property and equipment, and is charged to cost of product revenue ratably over the term of the agreement. We estimate future revenue to be recognized related to these multi-year agreements with customers of approximately $115.9 million, of which approximately 24% , 28% , and 22% are expected to be recognized during the remainder of 2018, the full year 2019, and the full year 2020, respectively . These represent future performance obligations not yet satisfied for which customers have committed to future purchases, net of any expected price adjustments, and as a result, may be lower than stated contractual commitments by our customers. Other Customer Incentive Programs . Certain agreements with customers include discounts or rebates on the sale of products and services applied retrospectively, such as volume rebates achieved by purchasing a specified purchase threshold of goods and services. We account for these discounts as variable consideration and estimate the likelihood of a customer meeting the threshold in order to determine the transaction price using both the most-likely-amount and expected-value approach, as applicable. Revenue adjustments that relate to performance obligations satisfied in prior periods during the three months ended March 31, 2018, were not material. Refund obligations related to customer incentive programs are recorded in accrued liabilities for the actual issuance of incentives, incentives earned but not yet issued and estimates of incentives to be earned in the future. IDEXX Points . IDEXX Points may be applied to trade receivables due to us, converted to cash, or applied against the purchase price of IDEXX products and services. We consider IDEXX Points equivalent to cash and IDEXX Points that have not yet been used by customers are included in accrued liabilities until utilized or expired. Breakage is not material because customers can apply IDEXX Points to trade receivables at any time. Accounts Receivable . We recognize revenue when it is probable that we will collect substantially all of the consideration to which we will be entitled, based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. We maintain allowances for doubtful accounts for potentially uncollectible receivables. We base our estimates on a detailed analysis of specific customer situations and a percentage of our accounts receivable by aging category. Additional allowances may be required if either the financial condition of our customers were to deteriorate or a strengthening U.S. dollar impacts the ability of foreign customers to make payments to us on their U.S. dollar denominated purchases. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We do not have any off-balance sheet credit exposure related to our customers. We have no significant customers that accounted for greater than 10% of our consolidated revenues and we have no concentration of credit risk as of March 31, 2018. Disaggregated Revenues . We present disaggregated revenue for our CAG segment based on major product and service categories. Although Water and LPD do not meet the quantitative thresholds to be reported as separate segments, we believe it is important to disaggregate these revenues as major product and service categories within our Other reportable segment given their distinct markets, and therefore we have elected to report Water and LPD as reportable segments. The following table presents disaggregate d revenue by major product and service categories for the period ending March 31, 2018 ( in thousands ): For the Three Months Ended March 31, 2018 2017 CAG segment revenue: CAG Diagnostics recurring revenue: $ 406,048 $ 346,680 IDEXX VetLab consumables 149,513 123,553 Rapid assay products 52,017 47,895 Reference laboratory diagnostic and consulting services 186,937 159,069 CAG Diagnostics service and accessories 17,581 16,163 CAG Diagnostics capital - instruments 30,895 26,183 Veterinary software, services and diagnostic imaging systems 33,890 30,364 CAG segment revenue 470,833 403,227 Water segment revenue 29,143 25,077 LPD segment revenue 32,240 29,317 Other segment revenue 5,440 4,400 Total revenue $ 537,656 $ 462,021 Revenue by principal geographic area, based on customers’ domiciles, was as follows ( in thousands ): For the Three Months Ended March 31, 2018 2017 United States $ 327,461 $ 288,613 Europe, the Middle East and Africa 120,574 96,428 Asia Pacific Region 56,039 48,952 Canada 22,544 18,748 Latin America 11,038 9,280 Total $ 537,656 $ 462,021 Costs to Obtain a Contract . We capitalize sales commissions and the related fringe benefits earned by our sales force when considered incremental and recoverable costs of obtaining a contract. Our contracts include performance obligations related to various goods and services, some of which are satisfied at a point in time and others over time. Commission costs related to performance obligations satisfied at a point in time are expensed at the time of sale, which is when revenue is recognized. Commission costs related to long-term service contracts and performance obligations satisfied over time, including extended warranties and SaaS subscriptions are deferred and recognized on a systematic basis that is consistent with the transfer of the goods or services to which the asset relates. We apply judgment in estimating the amortization period, which ranges from 3 to 7 years, by taking into consideration our customer contract terms, history of renewals, expected length of customer relationship, as well as the useful life of the underlying technology and products. Amortization expense is included in sales and marketing expenses in the accompanying unaudited condensed consolidated statements of operations. Deferred commission costs are periodically reviewed for impairment. Upon adoption of the New Revenue Standard on January 1, 2018, our deferred commissions costs, included within other assets, were $11.8 million, and approximately $1.0 million of commissions expense was recognized during the three months ended March 31, 2018. Furthermore, as a result of commissions related to new extended warranties and SaaS subscriptions, our deferred commission costs were $12.4 million at March 31, 2018. Impairments of deferred commission costs during the three months ended March 31, 2018, were not material. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Acquisitions [Abstract] | |
Acquisitions | NOTE 4. ACQUISITIONS We believe that our acquisitions of businesses and other assets enhance our existing businesses by either expanding our geographic range and customer base or expanding our existing product lines. We had no acquisitions during the first quarter of 2018. During the first quarter of 2017, we acquired a reference laboratory in Austria for approximately €1.3 million, with the majority of the acquisition price valued as an intangible asset. This acquisition was accounted for as an acquisition of a business and t he results of operations of this reference laboratory have been included in our CAG segment since the acquisition date. Pro forma information has not been presented for this business acquisition because such information is not material to our financial statements. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | NOTE 5. SHARE-BASED COMPENSATION The fair value of options, restricted stock units, deferred stock units and employee stock purchase rights awarded during the three months ended March 31 , 201 8 , totaled $31.1 million as compared to $27.9 million for the three months ended March 3 1 , 201 7 . T he total unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding at March 31, 2018, was $67.2 million, which will be recognized over a weighted average period of approximately 2.3 years . During the three months ended March 31, 2018, we recognized expense of $5.9 million related to share-based compensation. We determine the assumptions used in the valuation of option awards as of the date of grant. Differences in the expected stock price volatility, expected term or risk-free interest rate may necessitate distinct valuation assumptions at each grant date. As such, we may use different assumptions for options granted throughout the year. Option awards are granted with an exercise price equal to the closing market price of our common stock at the date of grant. We have never paid any cash dividends on our common stock, and we have no intention to pay such a dividend at this time; therefore, we assume that no dividends will be paid over the expected terms of option awards. The weighted averages of the valuation assumptions used to determine the fair value of each option award on the date of grant and the weighted average estimated fair values were as follows: For the Three Months Ended March 31, 2018 2017 Share price at grant $ 178.26 $ 141.60 Expected stock price volatility 24 % 26 % Expected term, in years 5.8 5.8 Risk-free interest rate 2.7 % 2.0 % Weighted average fair value of options granted $ 52.49 $ 40.51 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | Note 6. marketable securities As a result of the passage of the 2017 Tax Act during the fourth quarter of 2017, we liquidated our marketable securities held outside the U.S. during the first quarter of 2018 and recognized a loss of approximately $0.3 million. We repatriated these funds and reduced our revolving debt balance during the first quarter of 2018. The amortized cost and fair value of marketable securities as of December 31, 2017, were as follows ( in thousands ): As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds $ 140,969 $ 96 $ (179) $ 140,886 Certificates of deposit 58,510 - - 58,510 Commercial paper 29,171 - - 29,171 Asset backed securities 22,206 4 (43) 22,167 U.S. government bonds 15,619 11 (19) 15,611 Agency bonds 10,990 9 (52) 10,947 Treasury bills 6,964 - (1) 6,963 Total marketable securities $ 284,429 $ 120 $ (294) $ 284,255 We held marketable securities with effective maturities of two years or less that had an average AA- credit rating as of December 31, 2017. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventories [Abstract] | |
Inventories | Note 7. Inventories Inventories, which are stated at the lower of cost (first-in, first-out) or ne t realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The components of inventories were as follows (in thousands) : March 31, December 31, 2018 2017 Raw materials $ 34,958 $ 32,994 Work-in-process 18,252 17,786 Finished goods 125,829 113,538 Inventories (Note 2) $ 179,039 $ 164,318 |
Other Current and Long-Term Ass
Other Current and Long-Term Assets | 3 Months Ended |
Mar. 31, 2018 | |
Other Current and Long-Term Assets [Abstract] | |
Other Current and Long-Term Assets | NOTE 8. Other current and long-term ASSETS Other current assets consisted of the following (in thousands) : March 31, December 31, 2018 2017 Prepaid expenses $ 28,720 $ 28,967 Taxes receivable 26,207 35,475 Customer acquisition costs (Notes 2 and 3) 30,354 23,520 Contract assets (Notes 2 and 3) 5,085 - Deferred sales commissions (Notes 2 and 3) 4,369 - Other assets (Notes 2 and 3) 8,839 13,178 Other current assets $ 103,574 $ 101,140 Other long-term assets consisted of the following (in thousands) : March 31, December 31, 2018 2017 Investment in long-term product supply arrangements $ 10,324 $ 9,949 Customer acquisition costs (Notes 2 and 3) 83,417 64,670 Contract assets (Notes 2 and 3) 7,202 - Deferred sales commissions (Notes 2 and 3) 8,013 - Deferred income taxes (Note 2) 9,823 7,698 Other assets (Notes 2 and 3) 21,845 36,299 Other long-term assets $ 140,624 $ 118,616 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Note 9. Accrued liabilities Accrued liabilities consisted of the following (in thousands) : March 31, December 31, 2018 2017 Accrued expenses $ 65,835 $ 64,430 Accrued employee compensation and related expenses 59,080 102,944 Accrued taxes 26,452 29,389 Accrued customer incentives and refund obligations (Notes 2 and 3) 59,017 56,655 Total accrued liabilities $ 210,384 $ 253,418 Other long-term liabilities consisted of the following ( in thousands ): March 31, December 31, 2018 2017 Accrued taxes $ 67,551 $ 66,506 Accrued customer incentives (Note 2) - 12,956 Other accrued long-term expenses 17,022 16,256 Total other long-term liabilities $ 84,573 $ 95,718 |
Repurchases Of Common Stock
Repurchases Of Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Repurchases Of Common Stock [Abstract] | |
Repurchases Of Common Stock | N ote 1 0. Repurchases of common STOCK We primarily acquire shares by repurchases in the open market. However, we also acquire shares that are surrendered by employees in payment for the minimum required statutory withholding taxes due on the vesting of restricted stock units and the settlement of deferred stock units, otherwise referred to herein as employee surrenders. We issue shares of treasury stock upon the vesting of certain restricted stock units and upon the exercise of certain stock options. The number of shares of treasury stock issued during the three months ended March 31 , 201 8 and 201 7 was not material. The following is a summary of our open market common stock repurchases, reported on a trade date basis, and shares acquired through employee surrender for the three months ended March 31 , 201 8 and 201 7 (in thousands, except per share amounts) : For the Three Months Ended March 31, 2018 2017 Shares repurchased in the open market 465 390 Shares acquired through employee surrender for statutory tax withholding 48 52 Total shares repurchased 513 442 Cost of shares repurchased in the open market $ 86,188 $ 50,744 Cost of shares for employee surrenders 8,555 7,303 Total cost of shares $ 94,743 $ 58,047 Average cost per share - open market repurchase $ 185.23 $ 130.12 Average cost per share - employee surrenders $ 178.83 $ 141.09 Average cost per share - total $ 184.63 $ 131.41 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 11. INCOME TAXES Our effective income tax rate was 14.3% for the three months ended March 31, 2018, as compared to 18.5% for the three months ended March 31, 2017. The decrease in our effective tax rate was primarily related to the reduction in our U.S. statutory rate as a result of the 2017 Tax Act, partially offset by lower tax benefits related to share-based compensation, as compared to the same period in the prior year. As of December 31, 2017, we have accounted for the impacts of the 2017 Tax Act to the extent a reasonable estimate could be made and we recognized provisional amounts related to the deemed repatriation tax, offset by the remeasurement of our deferred tax assets and liabilities to record the effects of the tax law change in the period of enactment. This treatment is provided for in ASU 2018- 05, which allows a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law during the measurement period. The measurement period ends when the company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. During the first quarter of 2018, the Internal Revenue Service issued additional guidance providing clarification on certain aspects of the deemed repatriation tax calculation. The additional guidance did not result in an adjustment to the provisional amounts recorded as of December 31, 2017. We will continue to monitor for new guidance related to provisional amounts recorded. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 1 2. ACCUMULATED OTHER Comprehensive Income The changes in AOCI, net of tax, for the three months ended March 3 1, 2018 consisted of the following (in thousands) : For the Three Months Ended March 31, 2018 Unrealized (Loss) Gain on Investments, Net of Tax Unrealized (Loss) Gain on Derivative Instruments, Net of Tax Unrealized (Loss) on Net Investment Hedge, Net of Tax Cumulative Translation Adjustment Total Balance as of December 31, 2017 $ (22) $ (5,219) $ (4,311) $ (26,918) $ (36,470) Other comprehensive income (loss) before reclassifications 118 (2,388) (2,216) 5,165 679 Gains reclassified from accumulated other comprehensive income - 1,585 - - 1,585 Balance as of March 31, 2018 $ 96 $ (6,022) $ (6,527) $ (21,753) $ (34,206) The following is a summary of reclassificat ions out of AOCI for the three months ended March 31, 2018 and 201 7 (in thousands) : Details about AOCI Components Affected Line Item in the Statement of Operations Amounts Reclassified from AOCI For the Three Months Ended March 31, 2018 2017 (Losses) gains on derivative instruments classified as cash flow hedges included in net income: Foreign currency exchange contracts Cost of revenue $ (1,835) $ 1,075 Tax (benefits) expense (250) 401 (Losses) gains, net of tax $ (1,585) $ 674 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 1 3. Earnings per Share Basic earnings per share is computed by dividing net income attributable to our stockholders by the weighted average number of shares of common stock and vested deferred stock units outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and assumed issuance of unvested restricted stock units and unvested deferred stock units using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the total unrecognized compensation expense for unvested share-based compensation awards would be used to purchase our common stock at the average market price during the period. Vested deferred stock units outstanding are included in shares outstanding for basic and diluted earnings per share because the associated shares of our common stock are issuable for no cash consideration, the number of shares of our common stock to be issued is fixed and issuance is not contingent. See Note 4 to the consolidated financial statements in our 2017 Annual Report for additional information regarding deferred stock units . The following is a reconciliation of weighted average shares outstanding for basic and diluted earnin gs per share for the three months ended March 3 1 , 201 8 and 201 7 (in thousands) : For the Three Months Ended March 31, 2018 2017 Shares outstanding for basic earnings per share 87,331 88,117 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 87,331 88,117 Dilutive effect of share-based payment awards 1,613 1,877 88,944 89,994 Certain options to acquire shares and restricted stock units have been excluded from the calculation of shares outstanding for diluted earnings per share because they were anti-dilutive. The following table presents information concerning those anti-dilutive options and restricted stock units for the three months ended March 31, 2018 and 201 7 (in thousands ): For the Three Months Ended March 31, 2018 2017 Weighted average number of shares underlying anti-dilutive options 167 182 Weighted average number of shares underlying anti-dilutive restricted stock units - 47 |
Commitments, Contingencies And
Commitments, Contingencies And Guarantees | 3 Months Ended |
Mar. 31, 2018 | |
Commitments, Contingencies And Guarantees [Abstract] | |
Commitments, Contingencies And Guarantees | Note 1 4. Commitments, Contingencies and Guarantees Significant commitments, c ontingencies and guarantees at March 31, 2018, are consistent with those discussed in Note 14 to the consolidated financial statements in our 2017 Annual Report. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 1 5. Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. Our reportable segments include diagnostic and information technology-based products and services for the veterinary market, which we refer to as the Companion Animal Group (“CAG”), water quality products (“Water”) and diagnostic products and services for livestock and poultry he alth and to ensure the quality and safety of milk and improve dairy efficiency, which we refer to as Livestock, Poultry and Dairy (“LPD”). Our Other operating segment combines and presents products for the human point-of-care medical diagnostics market with our pharmaceutical product line and our out-licensing arrangements. Certain costs are not allocated to our operating segments and are instead reported under the caption “Unallocated Amounts . ” These costs include costs that do not align with one of our existing operating segments or are cost prohibitive to allocate, which primarily consist of our R&D function, regional or country expenses, certain foreign currency revaluation gains and losses on monetary balances in currencies other than our subsidiaries’ functional currency and unusual items. Corporate support function costs (such as information technology, facilities, human resources, finance and legal), health benefits and incentive compensation are charged to our business segments at pre-determined budgeted amounts or rates. Differences from these pre-determined budgeted amounts or rates are captured within Unallocated Amounts. The following is a summary of segment performance for the three months ended March 31 , 201 8 and 201 7 (in thousands) : For the Three Months Ended March 31, CAG Water LPD Other Unallocated Amounts Consolidated Total 2018 Revenue $ 470,833 $ 29,143 $ 32,240 $ 5,440 $ - $ 537,656 Income (loss) from operations $ 100,398 $ 12,462 $ 2,961 $ 498 $ (3,275) $ 113,044 Interest expense, net (8,695) Income before provision for income taxes 104,349 Provision for income taxes 14,873 Net income 89,476 Less: Net income attributable to noncontrolling interest 25 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 89,451 2017 Revenue $ 403,227 $ 25,077 $ 29,317 $ 4,400 $ - $ 462,021 Income (loss) from operations $ 79,855 $ 10,263 $ 3,802 $ 393 $ (2,070) $ 92,243 Interest expense, net (7,506) Income before provision for income taxes 84,737 Provision for income taxes 15,679 Net income 69,058 Less: Net income attributable to noncontrolling interest 39 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 69,019 See “Note 3. Revenue Recognition” for a summary of disaggregated revenue by reportable segment and by major product and service category for the three months ended March 31, 2018 and 2017. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 1 6. FAIR VALUE MEASUREMENTS U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value . We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a nonrecurring basis and certain financial assets and liabilities that are not measured at fair value in our unaudited condensed consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows : Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We did not have any transfers between Level 1 and Level 2 or transfers in or out of Level 3 of the fair value hierarchy during the three months ended March 3 1 , 201 8 . Our marketable debt securities are initially valued at the transaction price and are subsequently remeasured to fair value as of the balance sheet date utilizing third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. Observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers and other industry and economic events. We validate the prices provided by our third-party pricing services by obtaining independent market values from other pricing sources and analyzing pricing data in certain instances. Our foreign currency exchange contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets. We measure the fair value of our foreign currency exchange contracts classified as derivative instruments using an income approach, based on prevailing market forward rates less the contract rate multiplied by the notional amount. The product of this calculation is then adjusted for counterparty risk. The amounts outstanding under our unsecured revolving credit facility (“Credit Facility” or “line of credit”) and senior notes (“long-term debt”) are measured at carrying value in our unaudited condensed consolidated balance sheets though we disclose the fair value of these financial instruments. We determine the fair value of the amount outstanding under our Credit Facility and long-term debt using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. Our Credit Facility and long-term debt are valued using Level 2 inputs. The estimated fair value of our Credit Facility approximates its carrying value. The estimated fair value and carrying value of our long-term debt were $619.8 million and $ 609.5 milli on, respectively, as of March 3 1 , 201 8 , and $632.0 million and $606.6 million, respectively, as of December 31, 201 7 . The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis at March 31 , 201 8, and at December 31, 2017, by level within the fair value hierarchy (in thousands) : Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Balance at As of March 31, 2018 (Level 1) (Level 2) (Level 3) March 31, 2018 Assets Money market funds (1) $ 13,246 $ - $ - $ 13,246 Equity mutual funds (2) $ 2,069 $ - $ - $ 2,069 Foreign currency exchange contracts (3) $ - $ 892 $ - $ 892 Liabilities Foreign currency exchange contracts (3) $ - $ 7,741 $ - $ 7,741 Deferred compensation (4) $ 2,069 $ - $ - $ 2,069 Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Balance at As of December 31, 2017 (Level 1) (Level 2) (Level 3) December 31, 2017 Assets Money market funds (1) $ 32,962 $ - $ - $ 32,962 Certificates of deposit (1) $ - $ 1,250 $ - $ 1,250 Marketable Securities Corporate bonds $ - $ 140,886 $ - $ 140,886 Certificates of deposit - 58,510 - 58,510 Commercial paper - 29,171 - 29,171 Asset backed securities - 22,167 - 22,167 U.S. government bonds - 15,611 - 15,611 Agency bonds - 10,947 - 10,947 Treasury bills - 6,963 - 6,963 Total marketable securities $ - $ 284,255 $ - $ 284,255 Equity mutual funds (2) $ 2,162 $ - $ - $ 2,162 Foreign currency exchange contracts (3) $ - $ 477 $ - $ 477 Liabilities Foreign currency exchange contracts (3) $ - $ 6,468 $ - $ 6,468 Deferred compensation (4) $ 2,162 $ - $ - $ 2,162 _____________ (1) Money market funds and certificates of deposit with an original maturity of less than ninety days are included within cash and cash equivalents. The remaining balance of cash and cas h equivalents as of March 31 , 201 8 and December 31, 201 7 , consisted of demand deposits . C ertificates of deposit with an original maturity of over ninety days are included within marketable securities. (2) Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets. See footnote (4) below for a discussion of the related deferred compensation liability. (3) Foreign currency exchange contracts are included within other current assets; other long-term assets; accrued liabilities; or other long-term liabilities depending on the gain (loss) position and anticipated settlement date . (4) A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in footnote (2) above . The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate carrying value due to their short maturity. |
Hedging Instruments
Hedging Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Hedging Instruments [Abstract] | |
Hedging Instruments | Note 1 7. HEDGING Instruments Disclosure within this note is presented to provide transparency about how and why we use derivative and non-derivative instruments (collectively “hedging instruments”), how the instruments and related hedged items are accounted for, and how the instruments and related hedged items affect our financial position, results of operations and cash flows . We are exposed to certain risks related to our ongoing business operations. The primary risks that we manage by using hedging instruments are foreign currency exchange risk and interest rate risk. Our subsidiaries enter into foreign currency exchange contracts to manage the exchange risk associated with their forecasted intercompany inventory purchases and sales for the next year. From time to time, we may also enter into other foreign currency exchange contracts or foreign-denominated debt issuances to minimize the impact of foreign currency fluctuations associated with specific balance sheet exposures, including net investments in certain foreign subsidiaries. We may also enter into interest rate swaps to minimize the impact of interest rate fluctuations associated with borrowings under our variable-rate Credit Facility. The primary purpose of our foreign currency hedging activities is to protect against the volatility associated with foreign currency transactions, including transactions denominated in the euro, British pound, Japanese yen, Canadian dollar, Australian dollar and Swiss franc. We also utilize natural hedges to mitigate our transaction and commitment exposures. Our corporate policy prescribes the range of allowable hedging activity. We enter into foreign currency exchange contracts with well-capitalized multinational financial institutions, and we do not hold or engage in transactions involving derivative instruments for purposes other than risk management. Our accounting policies for these contracts are based on the designation of such instruments as hedging transactions . We recognize all hedging instruments on the balance sheet at fair value at the balance sheet date. Instruments that do not qualify for hedge accounting treatment must be recorded at fair value through earnings. To qualify for hedge accounting treatment, cash flow and net investment hedges must be highly effective in offsetting changes to expected future cash flows or fair value on hedged transactions. If the instrument qualifies for hedge accounting, c hanges in the fair value of the hedging instrument from the effective portion of the hedge are deferred in AOCI, net of tax, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. We immediately record in earnings the extent to which a hedging instrument is not effective in achieving offsetting changes in fair value. We de-designate hedging instruments from hedge accounting when the likelihood of the hedged transaction occurring becomes less than probable. For de-designated instruments, the gain or loss from the time of de-designation through maturity of the instrument is recognized in earnings. Any gain or loss in AOCI at the time of de-designation is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings . See “Note 1 2 . Accumulated Other Comprehensive Income” for further information regarding the effect of hedging instruments on our unaudited condensed consolidated statements of operations for the three month s ended March 31 , 201 8 and 201 7 . We enter into master netting arrangements with the counterparties to our derivative transactions which permit certain outstanding receivables and payables to be offset in the event of default. Our derivative contracts do not require either party to post cash collateral. We elect to present our derivative assets and liabilities in the unaudited condensed consolidated balance sheets on a gross basis. All cash flows related to our foreign currency exchange contracts are classified as operating cash flows, which is consistent with the cash flow treatment of the underlying items being hedged. Cash Flow Hedges We have designated our foreign currency exchange contracts as cash flow hedges as these derivative instruments mitigate the exposure to variability in the cash flows of forecasted transactions attributable to foreign currency exchange. Unless noted otherwise, we have also designated our derivative instruments as qualifying for hedge accounting treatment . We did not de-designate any instruments from hedge accounting treatment during the three months ended March 31, 2018 or 2017. Gains or losses related to hedge ineffectiveness during the three months ended March 31, 2018 and 2017 were not material . At March 31 , 201 8 , the estimated amount of net losses, net of income tax benefit, which are expected to be reclassified out of AOCI and into earnings within the next 12 months, is $5.8 million if exchange rates do not fluctuate from the levels at March 31, 2018 . We hedge approximately 85% of the estimated exposure from intercompany product purchases and sales denominated in the euro, British pound, Canadian dollar, Japanese yen, Australian dollar and Swiss franc. We have additional unhedged foreign currency exposures related to foreign services and emerging markets where it is not practical to hedge. We primarily utilize foreign currency exchange contracts with durations of less than 24 months. Quarterly, we enter into contracts to hedge incremental portions of anticipated foreign currency transactions for the current and following year. As a result, our risk with respect to foreign currency exchange rate fluctuations and the notional value of foreign currency exchange contracts may vary throughout the year. The U.S. dollar is the currency purchased or sold in all of our foreign currency exchange contracts. The notional amount of foreign currency exchange contracts to hedge forecasted intercompany inventory purchases and sales totaled $210.4 million and $176.5 million at March 3 1, 2018 and December 31, 201 7 , respectively. Net Investment Hedge In June 2015, we issued and sold through a private placement an aggregate principal amount of €88.9 million in euro-denominated 1.785% Series C Senior Notes due June 18, 2025. We have designated these euro-denominated notes as a hedge of our euro net investment in certain foreign subsidiaries to reduce the volatility in stockholders’ equity caused by changes in foreign currency exchange rates in the euro relative to the U.S. dollar. As a result of this designation, gains and losses from the change in translated U.S. dollar value of these euro-denominated notes are recorded in AOCI rather than to earnings. We recorded losses of $ 2 . 2 million , net of income tax, within AOCI as a result of this net investment hedge for the three m onths ended March 3 1 , 201 8 . The related cumulative unrealized loss recorded at March 31, 2018 will not be reclassified in earnings until the complete or substantially complete liquidation of the net investment in the hedged foreign operations or a portion of the hedge no longer qualifies for hedge accounting treatment. See Note 11 to the consolidated financial statements included in our 201 7 Annual Report for further information regarding the issuance of these euro-denominated notes. Fair Values of Hedging Instruments Designated as Hedges in Consolidated Balance Sheets The fair values of hedging instruments and their respective classification on our unaudited condensed consolidated balance sheets and amounts subject to offset under master netting arrangements consisted of the following (in thousands) : Hedging Assets March 31, December 31, 2018 2017 Derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 452 $ 477 Foreign currency exchange contracts Other long-term assets 440 - Total derivative instruments presented as cash flow hedges on the balance sheet 892 477 Gross amounts subject to master netting arrangements not offset on the balance sheet 815 477 Net amount $ 77 $ - Hedging Liabilities March 31, December 31, 2018 2017 Derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 7,249 $ 6,468 Foreign currency exchange contracts Other long-term liabilities 492 - Total derivative instruments presented as cash flow hedges on the balance sheet 7,741 6,468 Foreign currency borrowings designated as net investment hedge on the balance sheet Long-term debt 109,481 106,567 Total hedging instruments presented on the balance sheet 117,222 113,035 Gross amounts subject to master netting arrangements not offset on the balance sheet 815 477 Net amount $ 116,407 $ 112,558 See “Note 12. Accumulated Other Comprehensive Income” for gains and losses recognized in AOCI on derivative instruments for the three months ended March 31, 2018. |
Accounting Policies (Policy)
Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted Effective January 1, 2018, we adopted the New Revenue Standard using the modified retrospective method for all contracts not completed as of the date of adoption. We recognized the cumulative effect of initially applying the New Revenue Standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods presented. As a result of the adoption of ASU 2014-09, we have changed our accounting policy for revenue recognition and the details of the significant changes and quantitative impact of the changes are set out below. Up-Front Customer Loyalty Programs. Our up-front loyalty programs provide customers with incentives in the form of cash or IDEXX Points upon entering into multi-year agreements to purchase annual minimum amounts of future products or services. Under previous U.S. GAAP, if up-front incentives were subsequently utilized to purchase instruments, we limited instrument revenue to the amount of consideration received from the customer at the time of placement that was not contingent on future purchases and consequently deferred instrument revenue and costs at the time of placement. The New Revenue Standard permits revenue recognition at the time of instrument placement when the consideration is committed, but contingent on the purchase of future goods and services. As a result, we have accelerated our recognition of instrument revenues and costs when up-front incentives are used to purchase instruments. The New Revenue Standard did not change our accounting for up-front payments to customers, which continue to be capitalized as customer acquisition costs, within other assets, and subsequently recognized as a reduction to revenue over the term of the agreement. We previously reported deferred instrument revenues and costs within net customer acquisition cost, and upon transition to the New Revenue Standard the decrease in deferred revenue and costs resulted in an increase in our reported customer acquisition costs. Volume Commitment Programs. Our volume commitment programs provide customers with a free instrument or system upon entering into multi-year agreements to purchase annual minimum amounts of future products or services and includes our new IDEXX 360 program introduced in the first quarter of 2018. Under previous U.S. GAAP, we limited instrument revenue to the amount of consideration received from the customer at the time of placement that was not contingent on future purchases and consequently instrument revenue and cost were recognized over the term of the customer agreement. The New Revenue Standard permits revenue recognition at the time of instrument placement when the consideration is committed, but contingent on the purchase of future goods and services. As a result, we have accelerated recognition on instruments revenues and costs placed through our volume commitment programs. This change resulted in a net increase in current and long-term other assets upon transition to the New Revenue Standard as we recognized contract assets related to instrument revenue recognized in advance of billings, offset by a reduction in previously deferred instrument cost. Instrument Rebate Programs. Our instrument rebate programs, previously referred to as IDEXX Instrument Marketing Programs, require an instrument purchase and provide customers the opportunity to earn future rebates based on the volume of products and services they purchase over the term of the program. Under previous U.S. GAAP, the total consideration in the contract, including an estimate of future optional purchases, was allocated to all products and services based on their standalone selling prices. This resulted in deferring a portion of instrument revenue related to our obligation to provide future rebate incentives, which was included in accrued liabilities. Under the New Revenue Standard, the total consideration in the contract is limited to only goods and services that the customer is presently obligated to purchase and does not include future purchases that are optional. The customer’s right to earn rebates on future purchases is accounted for as a separate performance obligation. The exclusion of optional future purchases resulted in the instrument absorbing a higher relative allocation of future rebates. Therefore, we defer an increased portion of instrument revenue upon placement, which is realized as higher recurring revenue when customers buy future products and services, offsetting future rebates as they are earned. This change resulted in an increase in current and long-term deferred revenue upon transition to the New Revenue Standard and a reduction to accrued and other long-term liabilities for rebate obligations that are now reported as deferred revenues. Reagent Rental Programs. Our reagent rental programs provide customers the right to use our instruments upon entering into multi-year agreements to purchase annual minimum amounts of consumables. These types of agreements include an embedded operating lease for the right to use our instrument and no instrument revenue is recognized at the time of instrument installation. Under the New Revenue Standard, we continue to recognize a portion of the revenue allocated to the embedded lease concurrent with the future sale of consumables over the term of the agreement. We determine the amount of revenue allocated from the consumable to the embedded lease based on standalone selling prices and determine the rate of lease revenue recognition in proportion to the customer’s minimum volume commitment. There was no impact to our consolidated financial statements upon transition to the New Revenue Standard, as a result of our reagent rental programs. Other Customer Incentive Programs . Certain agreements with customers include discounts or rebates on the sale of products and services applied retrospectively, such as volume rebates achieved by purchasing a specified threshold of goods and services. Under the New Revenue Standard, we continue to record revenue reductions related to these customer incentive programs and record the related refund obligations in accrued liabilities based on the actual issuance of incentives, incentives earned but not yet issued and estimates of incentives to be earned in the future. There was no impact to our consolidated financial statements upon transition to the New Revenue Standard, as a result of our other customer incentive programs. IDEXX Points. IDEXX P oints may be applied to trade receivables due to us, converted to cash, or applied against the purchase price of IDEXX products and services. Under the New Revenue Standard, we continue to consider IDEXX Points equivalent to cash and IDEXX Points that have not yet been used by customers are included in accrued liabilities until utilized or expired. There was no impact to our consolidated financial statements upon transition to the New Revenue Standard, as a result of IDEXX P oints. Shipping and Delivery. Under previous U.S. GAAP, we recognized revenue and cost from the sales of diagnostic products and accessories upon delivery to the customer because our typical business practice is to cover losses incurred while in transit. Under the New Revenue Standard, revenue and costs are recognized when a customer obtains control of the product based on legal title transfer and our right to payment, which generally occurs at the time of shipment. This resulted in an acceleration of revenue and cost recognition and an increase in accounts receivable and a reduction in inventories upon transition to the New Revenue Standard. Costs to Obtain a Contract. Under previous U.S. GAAP, we recognized sales commissions incurred to obtain long term product and service contracts as sales and marketing expenses as incurred. Under the New Revenue Standard, we defer commissions incurred to obtain long term contracts, when considered incremental and recoverable. Sales commissions are amortized as sales and marketing expenses consistently with the pattern of transfer for the product or service to which the asset relates. If the expected amortization period is one year or less, the sales commission is expensed when incurred. This change resulted in an increase to other current and long-term assets upon transition to the New Revenue Standard. Income Taxes. The adoption of the New Revenue Standard primarily resulted in an acceleration of revenues under up-front customer loyalty programs and an increase in deferred revenue under instrument rebate programs, which in turn generated additional deferred tax assets within other long-term assets. The cumulative effects of the changes made to our consolidated balance sheet as of January 1, 2018, in connection with the adoption of the New Revenue Standard were as follows ( in thousands ) : Condensed Consolidated Balance Sheet Previous U.S. GAAP December 31, 2017 New U.S. GAAP Attributed to the (Reported) January 1, 2018 New Revenue Standard ASSETS Cash, cash equivalents and marketable securities $ 471,930 $ 471,930 $ - Accounts receivable 234,597 237,281 2,684 Inventories 164,318 163,184 (1,134) Property and equipment, net 379,096 379,096 - Goodwill and intangible assets, net 243,719 243,719 - Other assets 219,756 246,481 26,725 TOTAL ASSETS $ 1,713,416 $ 1,741,691 $ 28,275 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 66,968 $ 66,968 $ - Accrued liabilities 253,418 254,381 963 Deferred income tax liabilities 25,353 25,087 (266) Line of credit and long-term debt 1,261,075 1,261,075 - Deferred revenue 64,726 110,158 45,432 Other long-term liabilities 95,718 82,840 (12,878) Total liabilities 1,767,258 1,800,509 33,251 Stockholders’ Deficit: Retained earnings 803,545 798,569 (4,976) All other stockholders' deficit and noncontrolling interest (857,387) (857,387) - Total stockholders’ deficit (53,842) (58,818) (4,976) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,713,416 $ 1,741,691 $ 28,275 The following tables compare the reported unaudited condensed consolidated balance sheet, statement of operations and cash flows, as of and for the three months ended March 31, 2018, to the pro forma amounts had the previous U.S. GAAP guidance been in effect ( in thousands ): Condensed Consolidated Balance Sheet As of March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard ASSETS Cash and cash equivalents $ 159,229 $ 159,229 $ - Accounts receivable 257,214 259,865 2,651 Inventories 180,328 179,039 (1,289) Property and equipment, net 384,246 384,246 - Goodwill and intangible assets, net 242,915 242,915 - Other assets 212,896 244,198 31,302 TOTAL ASSETS $ 1,436,828 $ 1,469,492 $ 32,664 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 70,409 $ 70,409 $ - Accrued liabilities 209,437 210,384 947 Deferred income tax liabilities 29,786 27,529 (2,257) Line of credit and long-term debt 1,016,505 1,016,505 - Deferred revenue 64,813 109,074 44,261 Other long-term liabilities 94,296 84,573 (9,723) Total liabilities 1,485,246 1,518,474 33,228 Stockholders’ Deficit: Retained earnings 880,785 880,348 (437) Accumulated other comprehensive loss (34,079) (34,206) (127) All other stockholders' deficit and noncontrolling interest (895,124) (895,124) - Total stockholders’ deficit (48,418) (48,982) (564) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,436,828 $ 1,469,492 $ 32,664 Condensed Consolidated Statement of Operations For the Three Months Ended March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard Total revenue $ 525,369 $ 537,656 $ 12,287 Total cost of revenue 227,965 234,557 6,592 Gross profit 297,404 303,099 5,695 Total operating expense 190,626 190,055 (571) Income from operations 106,778 113,044 6,266 Interest expense (9,274) (9,274) - Interest income 862 579 (283) Income before provision for income taxes 98,366 104,349 5,983 Provision for income taxes 13,429 14,873 1,444 Net income $ 84,937 $ 89,476 $ 4,539 Condensed Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard Cash Flows from Operating Activities: Net income $ 84,937 $ 89,476 $ 4,539 Adjustments to reconcile net income to net cash provided by operating activities: Benefit of deferred income taxes 1,088 3,005 1,917 All other adjustments to reconcile net income to net cash provided by operating activities 27,855 27,855 - Changes in assets and liabilities, net (78,982) (85,438) (6,456) Net cash provided by operating activities $ 34,898 $ 34,898 $ - There were no changes to cash flows from investing and financing activities as a result of the adoption of the New Revenue Standard. Effective January 1, 2018, we adopted FASB ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. We recognized the cumulative effect of applying this standard as an adjustment to the opening balance of retained earnings and a reduction to other long-term assets of $7.7 million. Effective January 1, 2018, we adopted FASB ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists on the classification of certain cash receipts and payments. We adopted this amendment on a retrospective basis. This amendment did not have an impact on our financial statements. Effective January 1, 2018, we adopted FASB ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , to add guidance on the classification and presentation of restricted cash. These amendments require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this standard did not have an impact on our financial statements. Effective January 1, 2018, we adopted FASB ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) , to simplify the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill. The adoption of this standard did not have an impact on our financial statements. 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 the three months ended March 31, 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 “Note 11. Income Taxes.” Effective April 1, 2018, we early adopted FASB ASU 2017-12, Derivatives and Hedging (Topic 815) , which amends the hedge accounting recognition and presentation requirements. The adoption of this guidance is not expected to have an impact on our consolidated financial statements or related disclosures, however it allows us to simplify our procedures to |
Share-Based Compensation (Polic
Share-Based Compensation (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation Policy | We determine the assumptions used in the valuation of option awards as of the date of grant. Differences in the expected stock price volatility, expected term or risk-free interest rate may necessitate distinct valuation assumptions at each grant date. As such, we may use different assumptions for options granted throughout the year. Option awards are granted with an exercise price equal to the closing market price of our common stock at the date of grant. We have never paid any cash dividends on our common stock, and we have no intention to pay such a dividend at this time; therefore, we assume that no dividends will be paid over the expected terms of option awards. |
Inventories (Policy)
Inventories (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Inventories [Abstract] | |
Inventories Policy | Inventories, which are stated at the lower of cost (first-in, first-out) or ne t realizable value. |
Earnings Per Share (Policy)
Earnings Per Share (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Policy | Basic earnings per share is computed by dividing net income attributable to our stockholders by the weighted average number of shares of common stock and vested deferred stock units outstanding during the year. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and assumed issuance of unvested restricted stock units and unvested deferred stock units using the treasury stock method unless the effect is anti-dilutive. The treasury stock method assumes that proceeds, including cash received from the exercise of employee stock options and the total unrecognized compensation expense for unvested share-based compensation awards would be used to purchase our common stock at the average market price during the period. Vested deferred stock units outstanding are included in shares outstanding for basic and diluted earnings per share because the associated shares of our common stock are issuable for no cash consideration, the number of shares of our common stock to be issued is fixed and issuance is not contingent. |
Fair Value Measurements (Policy
Fair Value Measurements (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements Policy | U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value . We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a nonrecurring basis and certain financial assets and liabilities that are not measured at fair value in our unaudited condensed consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows : Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We did not have any transfers between Level 1 and Level 2 or transfers in or out of Level 3 of the fair value hierarchy during the three months ended March 3 1 , 201 8 . Our marketable debt securities are initially valued at the transaction price and are subsequently remeasured to fair value as of the balance sheet date utilizing third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. Observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers and other industry and economic events. We validate the prices provided by our third-party pricing services by obtaining independent market values from other pricing sources and analyzing pricing data in certain instances. Our foreign currency exchange contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets. We measure the fair value of our foreign currency exchange contracts classified as derivative instruments using an income approach, based on prevailing market forward rates less the contract rate multiplied by the notional amount. The product of this calculation is then adjusted for counterparty risk. The amounts outstanding under our unsecured revolving credit facility (“Credit Facility” or “line of credit”) and senior notes (“long-term debt”) are measured at carrying value in our unaudited condensed consolidated balance sheets though we disclose the fair value of these financial instruments. We determine the fair value of the amount outstanding under our Credit Facility and long-term debt using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. Our Credit Facility and long-term debt are valued using Level 2 inputs. |
Hedging Instuments (Policy)
Hedging Instuments (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Hedging Instruments [Abstract] | |
Derivatives Policy | We are exposed to certain risks related to our ongoing business operations. The primary risks that we manage by using hedging instruments are foreign currency exchange risk and interest rate risk. Our subsidiaries enter into foreign currency exchange contracts to manage the exchange risk associated with their forecasted intercompany inventory purchases and sales for the next year. From time to time, we may also enter into other foreign currency exchange contracts or foreign-denominated debt issuances to minimize the impact of foreign currency fluctuations associated with specific balance sheet exposures, including net investments in certain foreign subsidiaries. We may also enter into interest rate swaps to minimize the impact of interest rate fluctuations associated with borrowings under our variable-rate Credit Facility. The primary purpose of our foreign currency hedging activities is to protect against the volatility associated with foreign currency transactions, including transactions denominated in the euro, British pound, Japanese yen, Canadian dollar, Australian dollar and Swiss franc. We also utilize natural hedges to mitigate our transaction and commitment exposures. Our corporate policy prescribes the range of allowable hedging activity. We enter into foreign currency exchange contracts with well-capitalized multinational financial institutions, and we do not hold or engage in transactions involving derivative instruments for purposes other than risk management. Our accounting policies for these contracts are based on the designation of such instruments as hedging transactions . We recognize all hedging instruments on the balance sheet at fair value at the balance sheet date. Instruments that do not qualify for hedge accounting treatment must be recorded at fair value through earnings. To qualify for hedge accounting treatment, cash flow and net investment hedges must be highly effective in offsetting changes to expected future cash flows or fair value on hedged transactions. If the instrument qualifies for hedge accounting, c hanges in the fair value of the hedging instrument from the effective portion of the hedge are deferred in AOCI, net of tax, and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. We immediately record in earnings the extent to which a hedging instrument is not effective in achieving offsetting changes in fair value. We de-designate hedging instruments from hedge accounting when the likelihood of the hedged transaction occurring becomes less than probable. For de-designated instruments, the gain or loss from the time of de-designation through maturity of the instrument is recognized in earnings. Any gain or loss in AOCI at the time of de-designation is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings . See “Note 1 2 . Accumulated Other Comprehensive Income” for further information regarding the effect of hedging instruments on our unaudited condensed consolidated statements of operations for the three month s ended March 31 , 201 8 and 201 7 . We enter into master netting arrangements with the counterparties to our derivative transactions which permit certain outstanding receivables and payables to be offset in the event of default. Our derivative contracts do not require either party to post cash collateral. We elect to present our derivative assets and liabilities in the unaudited condensed consolidated balance sheets on a gross basis. All cash flows related to our foreign currency exchange contracts are classified as operating cash flows, which is consistent with the cash flow treatment of the underlying items being hedged. Cash Flow Hedges We have designated our foreign currency exchange contracts as cash flow hedges as these derivative instruments mitigate the exposure to variability in the cash flows of forecasted transactions attributable to foreign currency exchange. Unless noted otherwise, we have also designated our derivative instruments as qualifying for hedge accounting treatment |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Cumulative Effect of the Changes to Financial Statements for the adoption of the New Revenue Standard | The cumulative effects of the changes made to our consolidated balance sheet as of January 1, 2018, in connection with the adoption of the New Revenue Standard were as follows ( in thousands ) : Condensed Consolidated Balance Sheet Previous U.S. GAAP December 31, 2017 New U.S. GAAP Attributed to the (Reported) January 1, 2018 New Revenue Standard ASSETS Cash, cash equivalents and marketable securities $ 471,930 $ 471,930 $ - Accounts receivable 234,597 237,281 2,684 Inventories 164,318 163,184 (1,134) Property and equipment, net 379,096 379,096 - Goodwill and intangible assets, net 243,719 243,719 - Other assets 219,756 246,481 26,725 TOTAL ASSETS $ 1,713,416 $ 1,741,691 $ 28,275 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 66,968 $ 66,968 $ - Accrued liabilities 253,418 254,381 963 Deferred income tax liabilities 25,353 25,087 (266) Line of credit and long-term debt 1,261,075 1,261,075 - Deferred revenue 64,726 110,158 45,432 Other long-term liabilities 95,718 82,840 (12,878) Total liabilities 1,767,258 1,800,509 33,251 Stockholders’ Deficit: Retained earnings 803,545 798,569 (4,976) All other stockholders' deficit and noncontrolling interest (857,387) (857,387) - Total stockholders’ deficit (53,842) (58,818) (4,976) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,713,416 $ 1,741,691 $ 28,275 The following tables compare the reported unaudited condensed consolidated balance sheet, statement of operations and cash flows, as of and for the three months ended March 31, 2018, to the pro forma amounts had the previous U.S. GAAP guidance been in effect ( in thousands ): Condensed Consolidated Balance Sheet As of March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard ASSETS Cash and cash equivalents $ 159,229 $ 159,229 $ - Accounts receivable 257,214 259,865 2,651 Inventories 180,328 179,039 (1,289) Property and equipment, net 384,246 384,246 - Goodwill and intangible assets, net 242,915 242,915 - Other assets 212,896 244,198 31,302 TOTAL ASSETS $ 1,436,828 $ 1,469,492 $ 32,664 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 70,409 $ 70,409 $ - Accrued liabilities 209,437 210,384 947 Deferred income tax liabilities 29,786 27,529 (2,257) Line of credit and long-term debt 1,016,505 1,016,505 - Deferred revenue 64,813 109,074 44,261 Other long-term liabilities 94,296 84,573 (9,723) Total liabilities 1,485,246 1,518,474 33,228 Stockholders’ Deficit: Retained earnings 880,785 880,348 (437) Accumulated other comprehensive loss (34,079) (34,206) (127) All other stockholders' deficit and noncontrolling interest (895,124) (895,124) - Total stockholders’ deficit (48,418) (48,982) (564) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,436,828 $ 1,469,492 $ 32,664 Condensed Consolidated Statement of Operations For the Three Months Ended March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard Total revenue $ 525,369 $ 537,656 $ 12,287 Total cost of revenue 227,965 234,557 6,592 Gross profit 297,404 303,099 5,695 Total operating expense 190,626 190,055 (571) Income from operations 106,778 113,044 6,266 Interest expense (9,274) (9,274) - Interest income 862 579 (283) Income before provision for income taxes 98,366 104,349 5,983 Provision for income taxes 13,429 14,873 1,444 Net income $ 84,937 $ 89,476 $ 4,539 Condensed Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2018 New U.S. GAAP Attributed to the Previous U.S. GAAP (As Reported) New Revenue Standard Cash Flows from Operating Activities: Net income $ 84,937 $ 89,476 $ 4,539 Adjustments to reconcile net income to net cash provided by operating activities: Benefit of deferred income taxes 1,088 3,005 1,917 All other adjustments to reconcile net income to net cash provided by operating activities 27,855 27,855 - Changes in assets and liabilities, net (78,982) (85,438) (6,456) Net cash provided by operating activities $ 34,898 $ 34,898 $ - |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table presents disaggregate d revenue by major product and service categories for the period ending March 31, 2018 ( in thousands ): For the Three Months Ended March 31, 2018 2017 CAG segment revenue: CAG Diagnostics recurring revenue: $ 406,048 $ 346,680 IDEXX VetLab consumables 149,513 123,553 Rapid assay products 52,017 47,895 Reference laboratory diagnostic and consulting services 186,937 159,069 CAG Diagnostics service and accessories 17,581 16,163 CAG Diagnostics capital - instruments 30,895 26,183 Veterinary software, services and diagnostic imaging systems 33,890 30,364 CAG segment revenue 470,833 403,227 Water segment revenue 29,143 25,077 LPD segment revenue 32,240 29,317 Other segment revenue 5,440 4,400 Total revenue $ 537,656 $ 462,021 Revenue by principal geographic area, based on customers’ domiciles, was as follows ( in thousands ): For the Three Months Ended March 31, 2018 2017 United States $ 327,461 $ 288,613 Europe, the Middle East and Africa 120,574 96,428 Asia Pacific Region 56,039 48,952 Canada 22,544 18,748 Latin America 11,038 9,280 Total $ 537,656 $ 462,021 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Share-Based Compensation [Abstract] | |
Schedule Of Weighted Averages Of The Assumptions Used In Estimating The Fair Value Of Stock Option Awards | For the Three Months Ended March 31, 2018 2017 Share price at grant $ 178.26 $ 141.60 Expected stock price volatility 24 % 26 % Expected term, in years 5.8 5.8 Risk-free interest rate 2.7 % 2.0 % Weighted average fair value of options granted $ 52.49 $ 40.51 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities [Abstract] | |
Amortized Cost And Fair Value Of Marketable Securities | As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds $ 140,969 $ 96 $ (179) $ 140,886 Certificates of deposit 58,510 - - 58,510 Commercial paper 29,171 - - 29,171 Asset backed securities 22,206 4 (43) 22,167 U.S. government bonds 15,619 11 (19) 15,611 Agency bonds 10,990 9 (52) 10,947 Treasury bills 6,964 - (1) 6,963 Total marketable securities $ 284,429 $ 120 $ (294) $ 284,255 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventories [Abstract] | |
Schedule Of Components Of Inventories | March 31, December 31, 2018 2017 Raw materials $ 34,958 $ 32,994 Work-in-process 18,252 17,786 Finished goods 125,829 113,538 Inventories (Note 2) $ 179,039 $ 164,318 |
Other Current and Long-Term A36
Other Current and Long-Term Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Current and Long-Term Assets [Abstract] | |
Schedule Of Other Current Assets | March 31, December 31, 2018 2017 Prepaid expenses $ 28,720 $ 28,967 Taxes receivable 26,207 35,475 Customer acquisition costs (Notes 2 and 3) 30,354 23,520 Contract assets (Notes 2 and 3) 5,085 - Deferred sales commissions (Notes 2 and 3) 4,369 - Other assets (Notes 2 and 3) 8,839 13,178 Other current assets $ 103,574 $ 101,140 |
Schedule Of Other Long-term Assets | March 31, December 31, 2018 2017 Investment in long-term product supply arrangements $ 10,324 $ 9,949 Customer acquisition costs (Notes 2 and 3) 83,417 64,670 Contract assets (Notes 2 and 3) 7,202 - Deferred sales commissions (Notes 2 and 3) 8,013 - Deferred income taxes (Note 2) 9,823 7,698 Other assets (Notes 2 and 3) 21,845 36,299 Other long-term assets $ 140,624 $ 118,616 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Schedule Of Accrued Liabilities | March 31, December 31, 2018 2017 Accrued expenses $ 65,835 $ 64,430 Accrued employee compensation and related expenses 59,080 102,944 Accrued taxes 26,452 29,389 Accrued customer incentives and refund obligations (Notes 2 and 3) 59,017 56,655 Total accrued liabilities $ 210,384 $ 253,418 |
Schedule Of Other Long-term Liabilities | March 31, December 31, 2018 2017 Accrued taxes $ 67,551 $ 66,506 Accrued customer incentives (Note 2) - 12,956 Other accrued long-term expenses 17,022 16,256 Total other long-term liabilities $ 84,573 $ 95,718 |
Repurchases Of Common Stock (Ta
Repurchases Of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Repurchases Of Common Stock [Abstract] | |
Schedule Of Common Stock Repurchases | For the Three Months Ended March 31, 2018 2017 Shares repurchased in the open market 465 390 Shares acquired through employee surrender for statutory tax withholding 48 52 Total shares repurchased 513 442 Cost of shares repurchased in the open market $ 86,188 $ 50,744 Cost of shares for employee surrenders 8,555 7,303 Total cost of shares $ 94,743 $ 58,047 Average cost per share - open market repurchase $ 185.23 $ 130.12 Average cost per share - employee surrenders $ 178.83 $ 141.09 Average cost per share - total $ 184.63 $ 131.41 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income | For the Three Months Ended March 31, 2018 Unrealized (Loss) Gain on Investments, Net of Tax Unrealized (Loss) Gain on Derivative Instruments, Net of Tax Unrealized (Loss) on Net Investment Hedge, Net of Tax Cumulative Translation Adjustment Total Balance as of December 31, 2017 $ (22) $ (5,219) $ (4,311) $ (26,918) $ (36,470) Other comprehensive income (loss) before reclassifications 118 (2,388) (2,216) 5,165 679 Gains reclassified from accumulated other comprehensive income - 1,585 - - 1,585 Balance as of March 31, 2018 $ 96 $ (6,022) $ (6,527) $ (21,753) $ (34,206) |
Summary Of Reclassifications Out Of Accumulated Other Comprehensive Income | Details about AOCI Components Affected Line Item in the Statement of Operations Amounts Reclassified from AOCI For the Three Months Ended March 31, 2018 2017 (Losses) gains on derivative instruments classified as cash flow hedges included in net income: Foreign currency exchange contracts Cost of revenue $ (1,835) $ 1,075 Tax (benefits) expense (250) 401 (Losses) gains, net of tax $ (1,585) $ 674 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule Of Reconciliation Of Shares Outstanding For Basic And Diluted Earnings Per Share | For the Three Months Ended March 31, 2018 2017 Shares outstanding for basic earnings per share 87,331 88,117 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 87,331 88,117 Dilutive effect of share-based payment awards 1,613 1,877 88,944 89,994 |
Schedule Of Number Of Anti-Dilutive Stock Options | For the Three Months Ended March 31, 2018 2017 Weighted average number of shares underlying anti-dilutive options 167 182 Weighted average number of shares underlying anti-dilutive restricted stock units - 47 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary Of Segment Performance | For the Three Months Ended March 31, CAG Water LPD Other Unallocated Amounts Consolidated Total 2018 Revenue $ 470,833 $ 29,143 $ 32,240 $ 5,440 $ - $ 537,656 Income (loss) from operations $ 100,398 $ 12,462 $ 2,961 $ 498 $ (3,275) $ 113,044 Interest expense, net (8,695) Income before provision for income taxes 104,349 Provision for income taxes 14,873 Net income 89,476 Less: Net income attributable to noncontrolling interest 25 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 89,451 2017 Revenue $ 403,227 $ 25,077 $ 29,317 $ 4,400 $ - $ 462,021 Income (loss) from operations $ 79,855 $ 10,263 $ 3,802 $ 393 $ (2,070) $ 92,243 Interest expense, net (7,506) Income before provision for income taxes 84,737 Provision for income taxes 15,679 Net income 69,058 Less: Net income attributable to noncontrolling interest 39 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 69,019 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Schedule Of Fair Value Of Assets And Liabilities Measured On Recurring Basis | Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Balance at As of March 31, 2018 (Level 1) (Level 2) (Level 3) March 31, 2018 Assets Money market funds (1) $ 13,246 $ - $ - $ 13,246 Equity mutual funds (2) $ 2,069 $ - $ - $ 2,069 Foreign currency exchange contracts (3) $ - $ 892 $ - $ 892 Liabilities Foreign currency exchange contracts (3) $ - $ 7,741 $ - $ 7,741 Deferred compensation (4) $ 2,069 $ - $ - $ 2,069 Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Balance at As of December 31, 2017 (Level 1) (Level 2) (Level 3) December 31, 2017 Assets Money market funds (1) $ 32,962 $ - $ - $ 32,962 Certificates of deposit (1) $ - $ 1,250 $ - $ 1,250 Marketable Securities Corporate bonds $ - $ 140,886 $ - $ 140,886 Certificates of deposit - 58,510 - 58,510 Commercial paper - 29,171 - 29,171 Asset backed securities - 22,167 - 22,167 U.S. government bonds - 15,611 - 15,611 Agency bonds - 10,947 - 10,947 Treasury bills - 6,963 - 6,963 Total marketable securities $ - $ 284,255 $ - $ 284,255 Equity mutual funds (2) $ 2,162 $ - $ - $ 2,162 Foreign currency exchange contracts (3) $ - $ 477 $ - $ 477 Liabilities Foreign currency exchange contracts (3) $ - $ 6,468 $ - $ 6,468 Deferred compensation (4) $ 2,162 $ - $ - $ 2,162 _____________ (1) Money market funds and certificates of deposit with an original maturity of less than ninety days are included within cash and cash equivalents. The remaining balance of cash and cas h equivalents as of March 31 , 201 8 and December 31, 201 7 , consisted of demand deposits . C ertificates of deposit with an original maturity of over ninety days are included within marketable securities. (2) Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets. See footnote (4) below for a discussion of the related deferred compensation liability. (3) Foreign currency exchange contracts are included within other current assets; other long-term assets; accrued liabilities; or other long-term liabilities depending on the gain (loss) position and anticipated settlement date . (4) A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in footnote (2) above . |
Hedging Instruments (Tables)
Hedging Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Assets [Member] | |
Derivative [Line Items] | |
Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments | Hedging Assets March 31, December 31, 2018 2017 Derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 452 $ 477 Foreign currency exchange contracts Other long-term assets 440 - Total derivative instruments presented as cash flow hedges on the balance sheet 892 477 Gross amounts subject to master netting arrangements not offset on the balance sheet 815 477 Net amount $ 77 $ - |
Liabilities [Member] | |
Derivative [Line Items] | |
Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments | Hedging Liabilities March 31, December 31, 2018 2017 Derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 7,249 $ 6,468 Foreign currency exchange contracts Other long-term liabilities 492 - Total derivative instruments presented as cash flow hedges on the balance sheet 7,741 6,468 Foreign currency borrowings designated as net investment hedge on the balance sheet Long-term debt 109,481 106,567 Total hedging instruments presented on the balance sheet 117,222 113,035 Gross amounts subject to master netting arrangements not offset on the balance sheet 815 477 Net amount $ 116,407 $ 112,558 |
Basis Of Presentation And Pri44
Basis Of Presentation And Principles Of Consolidation (Details) $ in Millions | Mar. 31, 2018USD ($) |
Accounting Standards Update 2014-09 & 2016-16 [Member] | |
Cumulative effect of applying these standards was an adjustment to the opening balance of retained earnings | $ 12.6 |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) $ in Millions | Jan. 01, 2018USD ($) |
Accounting Standards Update 2016-16 [Member] | |
Cumulative effect of applying these standards was an adjustment to the opening balance of retained earnings | $ 7.7 |
Accounting Policies (Cumulative
Accounting Policies (Cumulative Effect of the Changes Made to the Balance Sheet for the Adoption of the New Revenue Standard) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Accounts receivable | $ 259,865 | $ 234,597 |
Inventories | 179,039 | 164,318 |
Property and equipment, net | 384,246 | 379,096 |
TOTAL ASSETS | 1,469,492 | 1,713,416 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
Accounts payable | 70,409 | 66,968 |
Accrued liabilities | 210,384 | 253,418 |
Deferred income tax liabilities | 27,529 | 25,353 |
Other long-term liabilities | 84,573 | 95,718 |
Total liabilities | 1,518,474 | 1,767,258 |
Stockholders’ Deficit: | ||
Retained earnings | 880,348 | 803,545 |
Total stockholders’ deficit | (48,982) | (53,842) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,469,492 | 1,713,416 |
Accounting Standards Update 2014-09 [Member] | ||
ASSETS | ||
Cash, cash equivalents and marketable securities | 471,930 | |
Accounts receivable | 259,865 | 237,281 |
Inventories | 179,039 | 163,184 |
Property and equipment, net | 384,246 | 379,096 |
Goodwill and intangible assets, net | 242,915 | 243,719 |
Other assets | 244,198 | 246,481 |
TOTAL ASSETS | 1,469,492 | 1,741,691 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
Accounts payable | 70,409 | 66,968 |
Accrued liabilities | 210,384 | 254,381 |
Deferred income tax liabilities | 27,529 | 25,087 |
Line of credit and long-term debt | 1,016,505 | 1,261,075 |
Deferred revenue | 109,074 | 110,158 |
Other long-term liabilities | 84,573 | 82,840 |
Total liabilities | 1,518,474 | 1,800,509 |
Stockholders’ Deficit: | ||
Retained earnings | 880,348 | 798,569 |
All other stockholders' deficit and noncontrolling interest | (895,124) | (857,387) |
Total stockholders’ deficit | (48,982) | (58,818) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,469,492 | 1,741,691 |
Accounting Standards Update 2014-09 [Member] | Attributed to the New Revenue Standard [Member] | ||
ASSETS | ||
Accounts receivable | 2,651 | 2,684 |
Inventories | (1,289) | (1,134) |
Other assets | 31,302 | 26,725 |
TOTAL ASSETS | 32,664 | 28,275 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
Accrued liabilities | 947 | 963 |
Deferred income tax liabilities | (2,257) | (266) |
Deferred revenue | 44,261 | 45,432 |
Other long-term liabilities | (9,723) | (12,878) |
Total liabilities | 33,228 | 33,251 |
Stockholders’ Deficit: | ||
Retained earnings | (437) | (4,976) |
Total stockholders’ deficit | (564) | (4,976) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 32,664 | 28,275 |
Accounting Standards Update 2014-09 [Member] | Previous U.S. GAAP (Reported) [Member] | ||
ASSETS | ||
Cash, cash equivalents and marketable securities | 471,930 | |
Accounts receivable | 257,214 | 234,597 |
Inventories | 180,328 | 164,318 |
Property and equipment, net | 384,246 | 379,096 |
Goodwill and intangible assets, net | 242,915 | 243,719 |
Other assets | 212,896 | 219,756 |
TOTAL ASSETS | 1,436,828 | 1,713,416 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
Accounts payable | 70,409 | 66,968 |
Accrued liabilities | 209,437 | 253,418 |
Deferred income tax liabilities | 29,786 | 25,353 |
Line of credit and long-term debt | 1,016,505 | 1,261,075 |
Deferred revenue | 64,813 | 64,726 |
Other long-term liabilities | 94,296 | 95,718 |
Total liabilities | 1,485,246 | 1,767,258 |
Stockholders’ Deficit: | ||
Retained earnings | 880,785 | 803,545 |
All other stockholders' deficit and noncontrolling interest | (895,124) | (857,387) |
Total stockholders’ deficit | (48,418) | (53,842) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 1,436,828 | $ 1,713,416 |
Accounting Policies (Comparison
Accounting Policies (Comparison of Reported Condensed Consolidated Balance Sheet to the Pro-forma Amounts had the Previous U.S. GAAP Guidance been in Effect) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 159,229 | $ 187,675 |
Accounts receivable | 259,865 | 234,597 |
Inventories | 179,039 | 164,318 |
Property and equipment, net | 384,246 | 379,096 |
TOTAL ASSETS | 1,469,492 | 1,713,416 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
Accounts payable | 70,409 | 66,968 |
Accrued liabilities | 210,384 | 253,418 |
Deferred income tax liabilities | 27,529 | 25,353 |
Other long-term liabilities | 84,573 | 95,718 |
Total liabilities | 1,518,474 | 1,767,258 |
Stockholders’ Deficit: | ||
Retained earnings | 880,348 | 803,545 |
Accumulated other comprehensive loss | (34,206) | (36,470) |
Total stockholders’ deficit | (48,982) | (53,842) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,469,492 | 1,713,416 |
Accounting Standards Update 2014-09 [Member] | ||
ASSETS | ||
Cash and cash equivalents | 159,229 | |
Accounts receivable | 259,865 | 237,281 |
Inventories | 179,039 | 163,184 |
Property and equipment, net | 384,246 | 379,096 |
Goodwill and intangible assets, net | 242,915 | 243,719 |
Other assets | 244,198 | 246,481 |
TOTAL ASSETS | 1,469,492 | 1,741,691 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
Accounts payable | 70,409 | 66,968 |
Accrued liabilities | 210,384 | 254,381 |
Deferred income tax liabilities | 27,529 | 25,087 |
Line of credit and long-term debt | 1,016,505 | 1,261,075 |
Deferred revenue | 109,074 | 110,158 |
Other long-term liabilities | 84,573 | 82,840 |
Total liabilities | 1,518,474 | 1,800,509 |
Stockholders’ Deficit: | ||
Retained earnings | 880,348 | 798,569 |
Accumulated other comprehensive loss | (34,206) | |
All other stockholders' deficit and noncontrolling interest | (895,124) | (857,387) |
Total stockholders’ deficit | (48,982) | (58,818) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,469,492 | 1,741,691 |
Attributed to the New Revenue Standard [Member] | Accounting Standards Update 2014-09 [Member] | ||
ASSETS | ||
Accounts receivable | 2,651 | 2,684 |
Inventories | (1,289) | (1,134) |
Other assets | 31,302 | 26,725 |
TOTAL ASSETS | 32,664 | 28,275 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
Accrued liabilities | 947 | 963 |
Deferred income tax liabilities | (2,257) | (266) |
Deferred revenue | 44,261 | 45,432 |
Other long-term liabilities | (9,723) | (12,878) |
Total liabilities | 33,228 | 33,251 |
Stockholders’ Deficit: | ||
Retained earnings | (437) | (4,976) |
Accumulated other comprehensive loss | (127) | |
Total stockholders’ deficit | (564) | (4,976) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 32,664 | 28,275 |
Previous U.S. GAAP (Reported) [Member] | Accounting Standards Update 2014-09 [Member] | ||
ASSETS | ||
Cash and cash equivalents | 159,229 | |
Accounts receivable | 257,214 | 234,597 |
Inventories | 180,328 | 164,318 |
Property and equipment, net | 384,246 | 379,096 |
Goodwill and intangible assets, net | 242,915 | 243,719 |
Other assets | 212,896 | 219,756 |
TOTAL ASSETS | 1,436,828 | 1,713,416 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
Accounts payable | 70,409 | 66,968 |
Accrued liabilities | 209,437 | 253,418 |
Deferred income tax liabilities | 29,786 | 25,353 |
Line of credit and long-term debt | 1,016,505 | 1,261,075 |
Deferred revenue | 64,813 | 64,726 |
Other long-term liabilities | 94,296 | 95,718 |
Total liabilities | 1,485,246 | 1,767,258 |
Stockholders’ Deficit: | ||
Retained earnings | 880,785 | 803,545 |
Accumulated other comprehensive loss | (34,079) | |
All other stockholders' deficit and noncontrolling interest | (895,124) | (857,387) |
Total stockholders’ deficit | (48,418) | (53,842) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 1,436,828 | $ 1,713,416 |
Accounting Policies (Comparis48
Accounting Policies (Comparison of Reported Condensed Consolidated Statement of Operations to the Pro-forma Amounts had the Previous U.S. GAAP Guidance been in Effect) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total revenue | $ 537,656 | $ 462,021 |
Total cost of revenue | 234,557 | 203,830 |
Gross profit | 303,099 | 258,191 |
Income from operations | 113,044 | 92,243 |
Interest expense | (9,274) | (8,589) |
Interest income | 579 | 1,083 |
Income before provision for income taxes | 104,349 | 84,737 |
Provision for income taxes | 14,873 | 15,679 |
Net income | 89,476 | $ 69,058 |
Accounting Standards Update 2014-09 [Member] | ||
Total revenue | 537,656 | |
Total cost of revenue | 234,557 | |
Gross profit | 303,099 | |
Total operating expense | 190,055 | |
Income from operations | 113,044 | |
Interest expense | (9,274) | |
Interest income | 579 | |
Income before provision for income taxes | 104,349 | |
Provision for income taxes | 14,873 | |
Net income | 89,476 | |
Attributed to the New Revenue Standard [Member] | Accounting Standards Update 2014-09 [Member] | ||
Total revenue | 12,287 | |
Total cost of revenue | 6,592 | |
Gross profit | 5,695 | |
Total operating expense | (571) | |
Income from operations | 6,266 | |
Interest income | (283) | |
Income before provision for income taxes | 5,983 | |
Provision for income taxes | 1,444 | |
Net income | 4,539 | |
Previous U.S. GAAP (Reported) [Member] | Accounting Standards Update 2014-09 [Member] | ||
Total revenue | 525,369 | |
Total cost of revenue | 227,965 | |
Gross profit | 297,404 | |
Total operating expense | 190,626 | |
Income from operations | 106,778 | |
Interest expense | (9,274) | |
Interest income | 862 | |
Income before provision for income taxes | 98,366 | |
Provision for income taxes | 13,429 | |
Net income | $ 84,937 |
Accounting Policies (Comparis49
Accounting Policies (Comparison of Reported Condensed Consolidated Statement of Cash Flows to the Pro-forma Amounts had the Previous U.S. GAAP Guidance been in Effect) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 89,476 | $ 69,058 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Benefit of deferred income taxes | 3,005 | 1,941 |
Net cash provided by operating activities | 34,898 | $ 31,274 |
Accounting Standards Update 2014-09 [Member] | ||
Cash Flows from Operating Activities: | ||
Net income | 89,476 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Benefit of deferred income taxes | 3,005 | |
All other adjustments to reconcile net income to net cash provided by operating activities | 27,855 | |
Changes in assets and liabilities, net | (85,438) | |
Net cash provided by operating activities | 34,898 | |
Attributed to the New Revenue Standard [Member] | Accounting Standards Update 2014-09 [Member] | ||
Cash Flows from Operating Activities: | ||
Net income | 4,539 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Benefit of deferred income taxes | 1,917 | |
Changes in assets and liabilities, net | (6,456) | |
Previous U.S. GAAP (Reported) [Member] | Accounting Standards Update 2014-09 [Member] | ||
Cash Flows from Operating Activities: | ||
Net income | 84,937 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Benefit of deferred income taxes | 1,088 | |
All other adjustments to reconcile net income to net cash provided by operating activities | 27,855 | |
Changes in assets and liabilities, net | (78,982) | |
Net cash provided by operating activities | $ 34,898 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Standard product warranty, term | 1 year | ||
Deferred commissions costs | $ 8,013,000 | ||
Customer Concentration Risk [Member] | |||
Significant customers that accounted for greater than 10% of our consolidated revenues | $ 0 | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Concentration of credit risk | 0.00% | ||
Maximum [Member] | |||
Payment term | 60 days | ||
SaaS Subscription, Term of Contract | 2 years | ||
Amortization period | 7 years | ||
Minimum [Member] | |||
Payment term | 30 days | ||
Amortization period | 3 years | ||
Accounting Standards Update 2014-09 [Member] | |||
Deferred Revenue | $ 109,074,000 | $ 110,158,000 | |
Deferred commissions costs | 12,400,000 | $ 11,800,000 | |
Commissions expense recognized | $ 1,000,000 | ||
Extended Warranties and Post-Contract Support [Member] | |||
Post-contract support contract, term | 12 months | ||
Extended Warranties and Post-Contract Support [Member] | Maximum [Member] | |||
Extended product warranty, term | 5 years | ||
Extended Warranties and Post-Contract Support [Member] | Minimum [Member] | |||
Extended product warranty, term | 1 year | ||
Extended Warranties and Post-Contract Support [Member] | Accounting Standards Update 2014-09 [Member] | |||
Deferred Revenue | $ 41,300,000 | 40,300,000 | |
Deferred Revenue, Revenue Recognized | $ 11,800,000 | ||
Deferred Revenue, Term | 1 year | ||
Deferred Revenue, With an Original Duration of More than One Year | $ 28,800,000 | ||
Deferred Revenue, Expected Recognition within Remainder of Year, Percentage | 20.00% | ||
Deferred Revenue, Expected Recognition During Year Two, Percentage | 28.00% | ||
Deferred Revenue, Expected Recognition During Year Three, Percentage | 22.00% | ||
Up-Front Customer Loyalty Programs [Member] | |||
Capitalized customer acquisition costs | $ 113,800,000 | 107,500,000 | |
Recognized as a reduction of revenue | 7,200,000 | ||
Volume Commitment Programs [Member] | |||
Contract with Customer, Asset, Net | 12,300,000 | 5,600,000 | |
Contract with Customer, Asset, Reclassified to Receivable | 1,300,000 | ||
Up-Front Customer Loyalty Programs And Volume Commitment Programs [Member] | |||
Deferred Revenue | $ 878,500,000 | ||
Deferred Revenue, Expected Recognition within Remainder of Year, Percentage | 23.00% | ||
Deferred Revenue, Expected Recognition During Year Two, Percentage | 24.00% | ||
Deferred Revenue, Expected Recognition During Year Three, Percentage | 19.00% | ||
Instrument Rebate Programs [Member] | |||
Deferred Revenue | $ 63,700,000 | $ 65,900,000 | |
Deferred Revenue, Revenue Recognized | $ 4,600,000 | ||
Deferred Revenue, Expected Recognition within Remainder of Year, Percentage | 22.00% | ||
Deferred Revenue, Expected Recognition During Year Two, Percentage | 26.00% | ||
Deferred Revenue, Expected Recognition During Year Three, Percentage | 21.00% | ||
Reagent Rental Programs [Member] | |||
Deferred Revenue | $ 115,900,000 | ||
Deferred Revenue, Expected Recognition within Remainder of Year, Percentage | 24.00% | ||
Deferred Revenue, Expected Recognition During Year Two, Percentage | 28.00% | ||
Deferred Revenue, Expected Recognition During Year Three, Percentage | 22.00% |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Major Product and Service Categories) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 537,656 | $ 462,021 |
CAG Segment [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 470,833 | 403,227 |
CAG Segment [Member] | CAG Diagnostics Recurring Revenue [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 406,048 | 346,680 |
CAG Segment [Member] | IDEXX Vetlab Consumables [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 149,513 | 123,553 |
CAG Segment [Member] | Rapid Assay Products [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 52,017 | 47,895 |
CAG Segment [Member] | Reference Laboratory Diagnostic And Consulting Services [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 186,937 | 159,069 |
CAG Segment [Member] | CAG Diagnostics Service And Accessories [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 17,581 | 16,163 |
CAG Segment [Member] | CAG Diagnostic Capital - Instruments [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 30,895 | 26,183 |
CAG Segment [Member] | Veterinary Software, Services and Diagnostic Imaging Systems [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 33,890 | 30,364 |
Water Segment [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 29,143 | 25,077 |
LPD Segment [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 32,240 | 29,317 |
Other Segment [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 5,440 | $ 4,400 |
Revenue Recognition (Disaggre52
Revenue Recognition (Disaggregation of Revenue by Principal Geographic Area, Based on Customers' Domiciles) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 537,656 | $ 462,021 |
United States [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 327,461 | 288,613 |
Europe, the Middle East and Africa [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 120,574 | 96,428 |
Asia Pacific Region [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 56,039 | 48,952 |
Canada [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | 22,544 | 18,748 |
Latin America [Member] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 11,038 | $ 9,280 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) € in Millions | 3 Months Ended |
Mar. 31, 2017EUR (€) | |
Reference Laboratory In Austria [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | € 1.3 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-Based Compensation [Abstract] | ||
Fair value of share-based compensation awards, granted | $ 31.1 | $ 27.9 |
Unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding | $ 67.2 | |
Weighted average recognition period for unrecognized compensation expense, in years | 2 years 3 months 18 days | |
Share-based compensation expense | $ 5.9 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Weighted Averages Of The Assumptions Used In Estimating The Fair Value Of Stock Option Awards) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-Based Compensation [Abstract] | ||
Share price at grant | $ 178.26 | $ 141.60 |
Expected stock price volatility | 24.00% | 26.00% |
Expected term, in years | 5 years 9 months 18 days | 5 years 9 months 18 days |
Risk-free interest rate | 2.70% | 2.00% |
Weighted average fair value of options granted | $ 52.49 | $ 40.51 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Marketable Securities [Abstract] | |
Marketable securities liquidation, recognized loss | $ 0.3 |
Marketable security, term | 2 years |
Marketable Securities (Amortize
Marketable Securities (Amortized Cost And Fair Value Of Marketable Securities) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $ 284,429 |
Gross Unrealized Gains | 120 |
Gross Unrealized Losses | (294) |
Fair Value | 284,255 |
Corporate Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 140,969 |
Gross Unrealized Gains | 96 |
Gross Unrealized Losses | (179) |
Fair Value | 140,886 |
Certificates Of Deposit [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 58,510 |
Fair Value | 58,510 |
Commercial Paper - Marketable Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 29,171 |
Fair Value | 29,171 |
Asset-backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 22,206 |
Gross Unrealized Gains | 4 |
Gross Unrealized Losses | (43) |
Fair Value | 22,167 |
U.S. Government Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 15,619 |
Gross Unrealized Gains | 11 |
Gross Unrealized Losses | (19) |
Fair Value | 15,611 |
Agency Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 10,990 |
Gross Unrealized Gains | 9 |
Gross Unrealized Losses | (52) |
Fair Value | 10,947 |
Treasury Bills [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 6,964 |
Gross Unrealized Losses | (1) |
Fair Value | $ 6,963 |
Inventories (Schedule Of Compon
Inventories (Schedule Of Components Of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventories [Abstract] | ||
Raw materials | $ 34,958 | $ 32,994 |
Work-in-process | 18,252 | 17,786 |
Finished goods | 125,829 | 113,538 |
Inventories (Note 2) | $ 179,039 | $ 164,318 |
Other Current and Long-Term A59
Other Current and Long-Term Assets (Schedule Of Other Current Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Current and Long-Term Assets [Abstract] | ||
Prepaid expenses | $ 28,720 | $ 28,967 |
Taxes receivable | 26,207 | 35,475 |
Customer acquisition costs (Notes 2 and 3) | 30,354 | 23,520 |
Contract assets (Notes 2 and 3) | 5,085 | |
Deferred sales commissions (Notes 2 and 3) | 4,369 | |
Other assets (Notes 2 and 3) | 8,839 | 13,178 |
Other current assets | $ 103,574 | $ 101,140 |
Other Current and Long-Term A60
Other Current and Long-Term Assets (Schedule Of Other Long-term Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Current and Long-Term Assets [Abstract] | ||
Investment in long-term product supply arrangements | $ 10,324 | $ 9,949 |
Customer acquisition costs (Notes 2 and 3) | 83,417 | 64,670 |
Contract assets (Notes 2 and 3) | 7,202 | |
Deferred sales commissions (Notes 2 and 3) | 8,013 | |
Deferred income taxes (Note 2) | 9,823 | 7,698 |
Other assets (Notes 2 and 3) | 21,845 | 36,299 |
Other long-term assets | $ 140,624 | $ 118,616 |
Accrued Liabilities (Schedule O
Accrued Liabilities (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities [Abstract] | ||
Accrued expenses | $ 65,835 | $ 64,430 |
Accrued employee compensation and related expenses | 59,080 | 102,944 |
Accrued taxes | 26,452 | 29,389 |
Accrued customer incentives and refund obligations (Notes 2 and 3) | 59,017 | 56,655 |
Total accrued liabilities | $ 210,384 | $ 253,418 |
Accrued Liabilities (Schedule62
Accrued Liabilities (Schedule Of Other Long-term Liabilites) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities [Abstract] | ||
Accrued taxes | $ 67,551 | $ 66,506 |
Accrued customer incentives (Note 2) | 12,956 | |
Other accrued long-term expenses | 17,022 | 16,256 |
Total other long-term liabilities | $ 84,573 | $ 95,718 |
Repurchases Of Common Stock (Sc
Repurchases Of Common Stock (Schedule Of Common Stock Repurchases) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Repurchases Of Common Stock [Abstract] | ||
Shares repurchased in the open market | 465 | 390 |
Shares acquired through employee surrender for statutory tax withholding | 48 | 52 |
Total shares repurchased | 513 | 442 |
Cost of shares repurchased in the open market | $ 86,188 | $ 50,744 |
Cost of shares for employee surrenders | 8,555 | 7,303 |
Total cost of shares | $ 94,743 | $ 58,047 |
Average cost per share - open market repurchase | $ 185.23 | $ 130.12 |
Average cost per share - employee surrenders | 178.83 | 141.09 |
Average cost per share - total | $ 184.63 | $ 131.41 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes [Abstract] | ||
Effective Tax Rate | 14.30% | 18.50% |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Balance, value | $ (53,842) |
Balance, value | (48,982) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |
Balance, value | (36,470) |
Other comprehensive income (loss) before reclassifications | 679 |
Gains reclassified from accumulated other comprehensive income | 1,585 |
Balance, value | (34,206) |
Unrealized (Loss) Gain on Investments, Net of Tax [Member] | |
Balance, value | (22) |
Other comprehensive income (loss) before reclassifications | 118 |
Balance, value | 96 |
Unrealized (Loss) Gain on Derivative Instruments, Net of Tax [Member] | |
Balance, value | (5,219) |
Other comprehensive income (loss) before reclassifications | (2,388) |
Gains reclassified from accumulated other comprehensive income | 1,585 |
Balance, value | (6,022) |
Unrealized Loss on Net Investment Hedge, Net of Tax [Member] | |
Balance, value | (4,311) |
Other comprehensive income (loss) before reclassifications | (2,216) |
Balance, value | (6,527) |
Cumulative Translation Adjustment [Member] | |
Balance, value | (26,918) |
Other comprehensive income (loss) before reclassifications | 5,165 |
Balance, value | $ (21,753) |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Schedule of Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Tax expense (benefits) | $ 14,873 | $ 15,679 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Tax expense (benefits) | (250) | 401 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,585) | 674 |
Foreign Currency Exchange Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ (1,835) | $ 1,075 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Reconciliation Of Shares Outstanding For Basic And Diluted Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Shares outstanding for basic earnings per share | 87,331 | 88,117 |
Dilutive effect of share-based payment awards | 1,613 | 1,877 |
Shares outstanding for diluted earnings per share | 88,944 | 89,994 |
Earnings Per Share (Schedule 68
Earnings Per Share (Schedule Of Number Of Anti-Dilutive Stock Options) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Options [Member] | ||
Antidilutive Securities [Line Items] | ||
Weighted average number of shares underlying anti-dilutive options | 167 | 182 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities [Line Items] | ||
Weighted average number of shares underlying anti-dilutive options | 47 |
Segment Reporting (Summary Of S
Segment Reporting (Summary Of Segment Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 537,656 | $ 462,021 |
Income (loss) from operations | 113,044 | 92,243 |
Interest expense, net | (8,695) | (7,506) |
Income before provision for income taxes | 104,349 | 84,737 |
Provision for income taxes | 14,873 | 15,679 |
Net income | 89,476 | 69,058 |
Less: Net income attributable to noncontrolling interest | 25 | 39 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | 89,451 | 69,019 |
Depreciation and amortization | 20,804 | 20,307 |
Expenditures for long-lived assets | 23,726 | 23,647 |
CAG Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 470,833 | 403,227 |
Income (loss) from operations | 100,398 | 79,855 |
Water Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 29,143 | 25,077 |
Income (loss) from operations | 12,462 | 10,263 |
LPD Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 32,240 | 29,317 |
Income (loss) from operations | 2,961 | 3,802 |
Other Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,440 | 4,400 |
Income (loss) from operations | 498 | 393 |
Unallocated Amounts [Member] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) from operations | $ (3,275) | $ (2,070) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying value of long-term debt | $ 609,005 | $ 606,075 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Long-term Debt, Fair Value | $ 619,800 | $ 632,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | $ 284,255 | |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 140,886 | |
Certificates Of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 58,510 | |
Commercial Paper - Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 29,171 | |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 22,167 | |
U.S. Government Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 15,611 | |
Treasury Bills [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 6,963 | |
Measured At Fair Value On Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 284,255 | |
Measured At Fair Value On Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 284,255 | |
Measured At Fair Value On Recurring Basis [Member] | Equity Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Assets | $ 2,069 | 2,162 |
Measured At Fair Value On Recurring Basis [Member] | Equity Mutual Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Assets | 2,069 | 2,162 |
Measured At Fair Value On Recurring Basis [Member] | Foreign Currency Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Assets | 892 | 477 |
Fair value of Liabilities | 7,741 | 6,468 |
Measured At Fair Value On Recurring Basis [Member] | Foreign Currency Exchange Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Assets | 892 | 477 |
Fair value of Liabilities | 7,741 | 6,468 |
Measured At Fair Value On Recurring Basis [Member] | Deferred Compensation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Liabilities | 2,069 | 2,162 |
Measured At Fair Value On Recurring Basis [Member] | Deferred Compensation [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Liabilities | 2,069 | 2,162 |
Measured At Fair Value On Recurring Basis [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Assets | 13,246 | 32,962 |
Measured At Fair Value On Recurring Basis [Member] | Money Market Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Assets | $ 13,246 | 32,962 |
Measured At Fair Value On Recurring Basis [Member] | Certificates Of Deposit - Maturity Less Than 90 Days [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Assets | 1,250 | |
Measured At Fair Value On Recurring Basis [Member] | Certificates Of Deposit - Maturity Less Than 90 Days [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Assets | 1,250 | |
Measured At Fair Value On Recurring Basis [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 140,886 | |
Measured At Fair Value On Recurring Basis [Member] | Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 140,886 | |
Measured At Fair Value On Recurring Basis [Member] | Certificates Of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 58,510 | |
Measured At Fair Value On Recurring Basis [Member] | Certificates Of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 58,510 | |
Measured At Fair Value On Recurring Basis [Member] | Commercial Paper - Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 29,171 | |
Measured At Fair Value On Recurring Basis [Member] | Commercial Paper - Marketable Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 29,171 | |
Measured At Fair Value On Recurring Basis [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 22,167 | |
Measured At Fair Value On Recurring Basis [Member] | Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 22,167 | |
Measured At Fair Value On Recurring Basis [Member] | U.S. Government Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 15,611 | |
Measured At Fair Value On Recurring Basis [Member] | U.S. Government Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 15,611 | |
Measured At Fair Value On Recurring Basis [Member] | Agency Bonds- Marketable Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 10,947 | |
Measured At Fair Value On Recurring Basis [Member] | Agency Bonds- Marketable Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 10,947 | |
Measured At Fair Value On Recurring Basis [Member] | Treasury Bills [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 6,963 | |
Measured At Fair Value On Recurring Basis [Member] | Treasury Bills [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | $ 6,963 |
Hedging Instruments (Narrative)
Hedging Instruments (Narrative) (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | |||||
Estimated net amount of gains expected to be reclassified out of accumulated other comprehensive income and into earnings within next 12 months | $ 5,800 | ||||
Cash Flow Hedge, hedge percentage of estimated exposure from intercompany products purchases and sales | 85.00% | ||||
General duration of foreign currency exchange contracts | 24 months | ||||
Notional Amount of Foreign Currency Exchange Contracts | $ 210,400 | $ 176,500 | |||
Unrealized loss on net investment hedge | $ (2,216) | $ (1,093) | |||
Series C Senior Note [Member] | |||||
Derivative [Line Items] | |||||
Debt instrument, face amount | € | € 88,900,000 | ||||
Stated interest rate | 1.785% | 1.785% |
Hedging Instruments (Schedule O
Hedging Instruments (Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Hedging Liabilities, Total hedging instruments presented on the balance sheet | $ 117,222 | $ 113,035 |
Hedging Liabilities, Gross amounts subject to master netting arrangements not offset on the balance sheet | 815 | 477 |
Hedging Liabilities, Net amount | 116,407 | 112,558 |
Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedging Liabilities, Total hedging instruments presented on the balance sheet | 7,741 | 6,468 |
Derivatives Designated As Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedging Assets, Gross amounts subject to master netting arrangements not offset on the balance sheet | 815 | 477 |
Hedging Assets, Net amount | 77 | |
Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedging Assets, Total derivative instruments presented as cash flow hedges on the balance sheet | 892 | 477 |
Foreign Currency Exchange Contracts [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedging Liabilities, Total hedging instruments presented on the balance sheet | 7,249 | 6,468 |
Foreign Currency Exchange Contracts [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedging Liabilities, Total hedging instruments presented on the balance sheet | 492 | |
Foreign Currency Exchange Contracts [Member] | Derivatives Designated As Hedging Instruments [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedging Assets, Total derivative instruments presented as cash flow hedges on the balance sheet | 452 | 477 |
Foreign Currency Exchange Contracts [Member] | Derivatives Designated As Hedging Instruments [Member] | Other Long-Term Assets, Net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedging Assets, Total derivative instruments presented as cash flow hedges on the balance sheet | 440 | |
Foreign Currency Borrowings Designated As Net Investment Hedge On The Balance Sheet [Member] | Long-term Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Hedging Liabilities, Total hedging instruments presented on the balance sheet | $ 109,481 | $ 106,567 |