Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 29, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Outstanding (in shares) | 86,233,649 | |
Trading Symbol | idxx |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 146,877 | $ 187,675 |
Marketable securities | 0 | 284,255 |
Accounts receivable, net of reserves of $4,874 in 2018 and $4,576 in 2017 | 264,563 | 234,597 |
Inventories | 179,684 | 164,318 |
Other current assets | 113,073 | 101,140 |
Total current assets | 704,197 | 971,985 |
Long-Term Assets: | ||
Property and equipment, net | 409,980 | 379,096 |
Goodwill | 216,046 | 199,873 |
Intangible assets, net | 42,420 | 43,846 |
Other long-term assets | 171,887 | 118,616 |
Total long-term assets | 840,333 | 741,431 |
TOTAL ASSETS | 1,544,530 | 1,713,416 |
Current Liabilities: | ||
Accounts payable | 65,457 | 66,968 |
Accrued liabilities | 238,431 | 253,418 |
Line of credit | 414,500 | 655,000 |
Current portion of deferred revenue | 41,149 | 29,181 |
Total current liabilities | 759,537 | 1,004,567 |
Long-Term Liabilities: | ||
Deferred income tax liabilities | 39,899 | 25,353 |
Long-term debt | 602,416 | 606,075 |
Long-term deferred revenue, net of current portion | 62,547 | 35,545 |
Other long-term liabilities | 81,494 | 95,718 |
Total long-term liabilities | 786,356 | 762,691 |
Total liabilities | 1,545,893 | 1,767,258 |
Commitments and Contingencies (Note 15) | ||
Stockholders’ Deficit: | ||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 105,042 shares in 2018 and 104,275 shares in 2017; Outstanding: 86,546 shares in 2018 and 87,104 shares in 2017 | 10,504 | 10,428 |
Additional paid-in capital | 1,128,484 | 1,073,931 |
Deferred stock units: Outstanding: 162 units in 2018 and 229 units in 2017 | 4,455 | 5,988 |
Retained earnings | 1,082,292 | 803,545 |
Accumulated other comprehensive loss | (42,187) | (36,470) |
Treasury stock, at cost: 18,497 shares in 2018 and 17,171 shares in 2017 | (2,185,152) | (1,911,528) |
Total IDEXX Laboratories, Inc. stockholders’ deficit | (1,604) | (54,106) |
Noncontrolling interest | 241 | 264 |
Total stockholders’ deficit | (1,363) | (53,842) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 1,544,530 | $ 1,713,416 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 4,874 | $ 4,576 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 105,042,000 | 104,275,000 |
Common stock, shares outstanding (in shares) | 86,546,000 | 87,104,000 |
Deferred stock units, outstanding (in shares) | 162,000 | 229,000 |
Treasury stock, shares (in shares) | 18,497,000 | 17,171,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 545,448 | $ 491,976 | $ 1,663,856 | $ 1,462,937 |
Cost of Revenue: | ||||
Cost of service revenue | 239,805 | 217,974 | 722,675 | 638,029 |
Gross profit | 305,643 | 274,002 | 941,181 | 824,908 |
Expenses: | ||||
Sales and marketing | 95,146 | 88,818 | 291,502 | 263,755 |
General and administrative | 63,955 | 57,186 | 185,966 | 165,560 |
Research and development | 29,192 | 27,585 | 87,725 | 80,373 |
Income from operations | 117,350 | 100,413 | 375,988 | 315,220 |
Interest expense | (8,453) | (9,764) | (26,184) | (27,508) |
Interest income | 142 | 1,400 | 893 | 3,659 |
Income before provision for income taxes | 109,039 | 92,049 | 350,697 | 291,371 |
Provision for income taxes | 15,825 | 21,535 | 59,327 | 66,392 |
Net income | 93,214 | 70,514 | 291,370 | 224,979 |
Less: Net (loss) income attributable to noncontrolling interest | (37) | 3 | (23) | 92 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ 93,251 | $ 70,511 | $ 291,393 | $ 224,887 |
Earnings per Share: | ||||
Basic (in dollars per share) | $ 1.07 | $ 0.81 | $ 3.35 | $ 2.56 |
Diluted (in dollars per share) | $ 1.05 | $ 0.79 | $ 3.29 | $ 2.51 |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 86,756 | 87,537 | 87,029 | 87,884 |
Diluted (in shares) | 88,453 | 89,256 | 88,687 | 89,735 |
Product revenue | ||||
Revenue: | ||||
Total revenue | $ 324,303 | $ 291,031 | $ 990,364 | $ 867,087 |
Cost of Revenue: | ||||
Cost of service revenue | 120,294 | 109,848 | 365,810 | 323,205 |
Service revenue | ||||
Revenue: | ||||
Total revenue | 221,145 | 200,945 | 673,492 | 595,850 |
Cost of Revenue: | ||||
Cost of service revenue | $ 119,511 | $ 108,126 | $ 356,865 | $ 314,824 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 93,214 | $ 70,514 | $ 291,370 | $ 224,979 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (1,845) | 8,282 | (18,172) | 24,250 |
Unrealized gain (loss) on net investment hedge | 555 | (2,035) | 2,818 | (6,895) |
Unrealized gain on investments, net of tax expense of $12 and $61 in 2018 and $12 and $35 in 2017 | 37 | 23 | 187 | 109 |
Unrealized gain (loss) on derivative instruments: | ||||
Unrealized gain (loss), net of tax expense (benefit) of $62 and $1,846 in 2018 and $(1,836) and $(5,035) in 2017 | 1,728 | (3,090) | 7,514 | (8,472) |
Reclassification adjustment for (gains) losses included in net income, net of tax (expense) benefit of $(153) and $476 in 2018 and $333 and $(348) in 2017 | (103) | 560 | 1,936 | (587) |
Unrealized gain (loss) on derivative instruments | 1,625 | (2,530) | 9,450 | (9,059) |
Other comprehensive gain (loss), net of tax | 372 | 3,740 | (5,717) | 8,405 |
Comprehensive income | 93,586 | 74,254 | 285,653 | 233,384 |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (37) | 3 | (23) | 92 |
Comprehensive income attributable to IDEXX Laboratories, Inc. | $ 93,623 | $ 74,251 | $ 285,676 | $ 233,292 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain on investments, net of tax expense of $12 and $61 in 2018 and $12 and $35 in 2017 | $ 12 | $ 12 | $ 61 | $ 35 |
Unrealized gain (loss), net of tax expense (benefit) of $62 and $1,846 in 2018 and $(1,836) and $(5,035) in 2017 | 62 | (1,836) | 1,846 | (5,035) |
Reclassification adjustment for (gains) losses included in net income, net of tax (expense) benefit of $(153) and $476 in 2018 and $333 and $(348) in 2017 | $ (153) | $ 333 | $ 476 | $ (348) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 291,370 | $ 224,979 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 62,574 | 61,620 |
Impairment charge | 2,629 | 0 |
Benefit of (provision for) deferred income taxes | 12,850 | (438) |
Share-based compensation expense | 18,948 | 17,762 |
Other | 2,385 | 1,912 |
Changes in assets and liabilities: | ||
Accounts receivable | (33,041) | (18,724) |
Inventories | (27,415) | (22,966) |
Other assets and liabilities | (58,214) | (10,734) |
Accounts payable | (1,336) | (3,540) |
Deferred revenue | (6,314) | 2,279 |
Net cash provided by operating activities | 264,436 | 252,150 |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (82,642) | (54,370) |
Purchase of marketable securities | (87) | (269,798) |
Proceeds from the sale and maturities of marketable securities | 284,125 | 224,816 |
Acquisitions of intangible assets | (450) | (320) |
Acquisitions of a business, net of cash acquired | (22,500) | (14,529) |
Net cash provided (used) by investing activities | 178,446 | (114,201) |
Cash Flows from Financing Activities: | ||
(Repayments) borrowings on revolving credit facilities, net | (240,500) | 75,250 |
Payment of acquisition-related contingent consideration | (1,266) | 0 |
Repurchases of common stock | (263,712) | (228,693) |
Proceeds from exercises of stock options and employee stock purchase plans | 34,595 | 31,314 |
Shares withheld for statutory tax withholding on restricted stock | (9,110) | (7,829) |
Net cash used by financing activities | (479,993) | (129,958) |
Net effect of changes in exchange rates on cash | (3,687) | 6,127 |
Net (decrease) increase in cash and cash equivalents | (40,798) | 14,118 |
Cash and cash equivalents at beginning of period | 187,675 | 154,901 |
Cash and cash equivalents at end of period | $ 146,877 | $ 169,019 |
Basis Of Presentation And Princ
Basis Of Presentation And Principles Of Consolidation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation And Principles Of Consolidation | 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 and nine months ended September 30, 2018 , 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 September 30, 2018 , and our Annual Report on Form 10-K for the year ended December 31, 2017 , (the “ 2017 Annual Report”) filed with the SEC. For the nine months ended September 30, 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) adjustments 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 | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Significant Accounting Policies The significant accounting policies used in preparation of these unaudited condensed consolidated financial statements for the three and nine months ended September 30, 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 or discounted instrument or system upon entering into multi-year agreements to purchase annual minimum amounts of future products or services and includes our 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 instrument 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 costs. 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 Points 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 Points. 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 (Reported) New U.S. GAAP January 1, 2018 Attributed to the New Revenue Standard ASSETS Cash, cash equivalents and marketable securities $ 471,930 $ 471,930 $ — Accounts receivable 234,597 237,281 2,684 Inventories 164,318 163,184 (1,134 ) Property and equipment, net 379,096 379,096 — Goodwill and intangible assets, net 243,719 243,719 — Other assets 219,756 246,481 26,725 TOTAL ASSETS $ 1,713,416 $ 1,741,691 $ 28,275 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 66,968 $ 66,968 $ — Accrued liabilities 253,418 254,381 963 Deferred income tax liabilities 25,353 25,087 (266 ) Line of credit and long-term debt 1,261,075 1,261,075 — Deferred revenue 64,726 110,158 45,432 Other long-term liabilities 95,718 82,840 (12,878 ) Total liabilities 1,767,258 1,800,509 33,251 Stockholders’ Deficit: Retained earnings 803,545 798,569 (4,976 ) All other stockholders' deficit and noncontrolling interest (857,387 ) (857,387 ) — Total stockholders’ deficit (53,842 ) (58,818 ) (4,976 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,713,416 $ 1,741,691 $ 28,275 The following tables compare the reported unaudited condensed consolidated balance sheet, statement of operations and cash flows, as of and for the three and nine months ended September 30, 2018 , to the balances without the adoption of the New Revenue Standard ("previous U.S. GAAP") ( in thousands ): Condensed Consolidated Balance Sheet As of September 30, 2018 Previous U.S. GAAP New U.S. GAAP (As Reported) Attributed to the New Revenue Standard ASSETS Cash and cash equivalents $ 146,877 $ 146,877 $ — Accounts receivable 260,803 264,563 3,760 Inventories 181,830 179,684 (2,146 ) Property and equipment, net 409,980 409,980 — Goodwill and intangible assets, net 258,466 258,466 — Other assets 245,276 284,960 39,684 TOTAL ASSETS $ 1,503,232 $ 1,544,530 $ 41,298 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 65,457 $ 65,457 $ — Accrued liabilities 237,904 238,431 527 Deferred income tax liabilities 38,897 39,899 1,002 Line of credit and long-term debt 1,016,916 1,016,916 — Deferred revenue 63,764 103,696 39,932 Other long-term liabilities 90,420 81,494 (8,926 ) Total liabilities 1,513,358 1,545,893 32,535 Stockholders’ Deficit: Retained earnings 1,073,597 1,082,292 8,695 Accumulated other comprehensive (loss) income (42,255 ) (42,187 ) 68 All other stockholders' deficit and noncontrolling interest (1,041,468 ) (1,041,468 ) — Total stockholders’ deficit (10,126 ) (1,363 ) 8,763 TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,503,232 $ 1,544,530 $ 41,298 Condensed Consolidated Statement of Operations For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 Previous U.S. GAAP New U.S. GAAP (As Reported) Attributed to the New Revenue Standard Previous U.S. GAAP New U.S. GAAP Attributed to the Total revenue $ 531,525 $ 545,448 $ 13,923 $ 1,622,773 $ 1,663,856 $ 41,083 Total cost of revenue 231,277 239,805 8,528 698,733 722,675 23,942 Gross profit 300,248 305,643 5,395 924,040 941,181 17,141 Total operating expense 188,725 188,293 (432 ) 566,672 565,193 (1,479 ) Income from operations 111,523 117,350 5,827 357,368 375,988 18,620 Interest expense (8,453 ) (8,453 ) — (26,184 ) (26,184 ) — Interest income 394 142 (252 ) 1,693 893 (800 ) Income before provision for income taxes 103,464 109,039 5,575 332,877 350,697 17,820 Provision for income taxes 14,642 15,825 1,183 55,178 59,327 4,149 Net income $ 88,822 $ 93,214 $ 4,392 $ 277,699 $ 291,370 $ 13,671 Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2018 Previous U.S. GAAP New U.S. GAAP (As Reported) Attributed to the New Revenue Standard Cash Flows from Operating Activities: Net income $ 277,699 $ 291,370 $ 13,671 Adjustments to reconcile net income to net cash provided by operating activities: Benefit of deferred income taxes 9,244 12,850 3,606 All other adjustments to reconcile net income to net cash provided by operating activities 86,536 86,536 — Changes in assets and liabilities, net (109,043 ) (126,320 ) (17,277 ) Net cash provided by operating activities $ 264,436 $ 264,436 $ — 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): Simplifying the Test for Goodwill Impairment , 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 first nine months of 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 12 . Income Taxes .” In April 2018, we early adopted FASB ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements, effective January 1, 2018. The adoption of this guidance allowed us to simplify our procedures to assess critical terms and broadens the application of hedge accounting. The early adoption of this standard did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (the "New Leasing Standard"), 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. We intend to elect the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods. We also intend to elect the transition package of three practical expedients permitted within the New Leasing Standard, which among other things, allows the carryforward of historical lease classifications. We currently expect that under the New Leasing Standard as a lessee, our operating lease commitments will be 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. See Note 14 to the consolidated financial statements in our 2017 Annual Report for a summary of undiscounted minimum annual rental payments under operating lease commitments. Upon adoption, we anticipate our portfolio of real estate, vehicle and equipment leases will be relatively consistent with 2017 and therefore assets and liabilities recorded upon adoption will be of a similar magnitude, except they will be recorded on a discounted basis. While the New Leasing Standard will not impact the overall economics of our products and services sold under customer incentive programs, we currently expect that the New Leasing Standard will require us to classify new instrument placements for certain reagent rental programs as sales-type leases and thus accelerate instrument revenue and cost recognition at the time of placement. Under current U.S. GAAP, instruments placed under our reagent rental programs are classified as operating leases and instrument revenue and cost is recognized over the term of the program. We do not expect this change to have a material impact on our financial statements. See "Note 3 . Revenue Recognition " for a description of our reagent rental programs. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , 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. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which modifies the disclosure requirements of fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangible-Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Cost Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"), which clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact 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 Note 2. Summary of Significant Accounting Policies - New Accounting Pronouncements Not Yet Adopted in our 2017 Annual Report. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 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. We exclude sales, use, value-added, and other taxes we collect on behalf of third parties from revenue. 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 IDEXX 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 $2.4 million and $16.5 million were recognized during the three and nine months ended September 30, 2018 , respectively. Furthermore, as a result of new agreements, our deferred revenue related to extended warranties and post-contract support was $41.1 million at September 30, 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 Standard. Deferred revenue related to extended warranties and post-contract support with an original duration of more than one year was $28.0 million at September 30, 2018 , of which approximately 7% , 30% , 26% and 37% are expected to be recognized during the remainder of 2018, the full year 2019, the full year 2020, and thereafter, 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, rVetLink, and Smart Flow. 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 $7.1 million and $21.5 million were recognized as a reduction of revenue during the three and nine months ended September 30, 2018 , respectively. Furthermore, as a result of new up-front customer loyalty payments, our capitalized customer acquisition costs were $119.8 million at September 30, 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 and nine months ended September 30, 2018 , were not material. Volume Commitment Programs . Our volume commitment programs provide customers with a free or discounted instrument or system upon entering into multi-year agreements to purchase annual minimum amounts of products and services. 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 when 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 receivable 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 $1.0 million and $3.4 million were reclassified to accounts receivable when customers were billed for related products and services during the three and nine months ended September 30, 2018 , respectively. Furthermore, as a result of new placements under volume commitment programs, our contract assets were $29.0 million at September 30, 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 and nine months ended September 30, 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 $1.1 billion , of which approximately 7% , 26% , 21% , and 46% are expected to be recognized during the remainder of 2018, the full year 2019, the full year 2020, and thereafter, 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 total consideration to identified performance obligations, including 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 $4.5 million and $13.7 million were recognized when customers purchased eligible products and services and earned rebates during the three and nine months ended September 30, 2018 , respectively. Furthermore, as a result of new instrument purchases under rebate programs, our deferred revenue was $58.7 million at September 30, 2018 , of which approximately 8% , 30% , 24% , and 38% are expected to be recognized during the remainder of 2018, the full year 2019, the full year 2020, and thereafter, 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 $54.8 million , of which approximately 9% , 34% , 27% , and 30% are expected to be recognized during the remainder of 2018, the full year 2019, the full year 2020, and thereafter, respectively. These future revenues relate to 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 the most predictive approach. We typically use the most-likely-amount method, for incentives that are offered to individual customers, and the expected-value method, for programs that are offered to a broad group of customers. Revenue adjustments that relate to performance obligations satisfied in prior periods during the three and nine months ended September 30, 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. Program Combinations . At times, we combine elements of our significant customer programs within a single customer contract. We separate each significant program element and include the contract assets, customer acquisition costs, deferred revenues and estimated future revenues within the most relevant program disclosures above. Each customer contract is presented as a net contract asset or net contract liability on our unaudited condensed consolidated balance sheet. 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 September 30, 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 disaggregated revenue by major product and service categories for the three and nine months ended September 30, 2018 and 2017 ( in thousands ): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 CAG segment revenue: CAG Diagnostics recurring revenue: $ 409,162 $ 364,937 $ 1,252,876 $ 1,091,936 IDEXX VetLab consumables 152,509 129,434 460,642 385,081 Rapid assay products 53,821 50,924 169,200 159,085 Reference laboratory diagnostic and consulting services 184,103 167,851 568,308 498,218 CAG Diagnostics service and accessories 18,729 16,728 54,726 49,552 CAG Diagnostics capital - instruments 31,561 29,119 97,000 83,018 Veterinary software, services and diagnostic imaging systems 37,374 32,630 106,541 94,907 CAG segment revenue 478,097 426,686 1,456,417 1,269,861 Water segment revenue 33,108 31,030 94,909 85,531 LPD segment revenue 29,420 28,396 96,658 91,266 Other segment revenue 4,823 5,864 15,872 16,279 Total revenue $ 545,448 $ 491,976 $ 1,663,856 $ 1,462,937 Revenue by principal geographic area, based on customers’ domiciles, was as follows ( in thousands ): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 United States $ 340,692 $ 301,457 $ 1,024,889 $ 905,765 Europe, the Middle East and Africa 112,466 106,548 355,310 305,458 Asia Pacific Region 56,954 51,161 175,498 156,198 Canada 22,459 20,654 71,410 62,480 Latin America 12,877 12,156 36,749 33,036 Total $ 545,448 $ 491,976 $ 1,663,856 $ 1,462,937 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 , of which approximately $0.8 million and $2.7 million of commissions expense were recognized during the three and nine months ended September 30, 2018 , respectively. Furthermore, as a result of commissions related to new extended warranties and SaaS subscriptions, our deferred commission costs were $13.3 million at September 30, 2018 . Impairments of deferred commission costs during the three and nine months ended September 30, 2018 , were not material. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 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. During the third quarter of 2018, we acquired substantially all of the assets of a software company for $25.0 million , including a holdback payment of $1.0 million , to offset possible pre-acquisition indemnity claims and a contingent payment of $1.5 million . The holdback payment, less settlement of any indemnity claims, will be paid on the second anniversary of the acquisition date, while the contingent payment will be paid within 36 months if certain commercial goals are achieved. This acquisition expands the IDEXX suite of veterinary software offerings and further underscores our commitment to investing in software innovations that advance the veterinary profession. This acquisition was accounted for as a business combination. The preliminary fair value estimate of the assets acquired consist of approximately $20.3 million of goodwill, representing synergies with our current software product offerings, approximately $2.6 million in technology intangible assets, approximately $2.4 million in customer relationship intangible assets, and approximately $0.3 million of net tangible liabilities. We are still in the process of reviewing our estimates and expect to have the valuation finalized before the end of the fourth quarter of 2018. The goodwill is expected to be deductible for income tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to our financial statements. The results of operations have been included in our CAG segment since the acquisition date. The acquisition expenses incurred were not material. During the third quarter of 2018, we also acquired a reference laboratory customer list in the United States for approximately $0.5 million and recorded this transaction as an asset acquisition. The results of operations for this reference laboratory has been included in our CAG segment since the acquisition date. During the third quarter of 2017, we acquired three reference laboratory customer lists in the United States for approximately $1.3 million and recorded these transactions as asset acquisitions. The results of operations for these reference laboratories have been included in our CAG segment since the acquisition dates. During the second quarter of 2017, we acquired the assets of two software companies that expand our suite of technology applications for the veterinary profession, specifically related to patient referral management and other connectivity needs between practices and other parties. The combined purchase price of $15.0 million consists of $12.0 million paid at closing and a $3.0 million contingent payment to be paid within 36 months if certain commercial goals are achieved. The fair value estimate of the assets acquired consists of $13.3 million of goodwill, representing synergies within our broader CAG portfolio, $1.0 million of customer relationship intangible assets and $0.6 million of technology intangible assets. Goodwill related to these acquisitions is expected to be deductible for income tax purposes. The amount of net tangible assets acquired was immaterial. Pro forma information has not been presented for these acquisitions because such information is not material to our financial statements. The results of operations have been included in our CAG segment since the acquisition date. 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 the 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 | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION The fair value of options, restricted stock units, deferred stock units, and employee stock purchase rights awarded during the three and nine months ended September 30, 2018 , totaled $0.7 million and $33.5 million , respectively, as compared to $1.5 million and $31.0 million for the three and nine months ended September 30, 2017 , respectively. The total unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding at September 30, 2018 , was $57.0 million , which will be recognized over a weighted average period of approximately 1.9 years . During the three and nine months ended September 30, 2018 , we recognized expense of $6.5 million and $18.9 million , respectively, as compared to $6.1 million and $17.8 million for the three and nine months ended September 30, 2017 , respectively, 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 Nine Months Ended 2018 2017 Share price at grant $ 179.56 $ 142.89 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 $ 52.99 $ 40.83 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | 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 | 9 Months Ended |
Sep. 30, 2018 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or net 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) : September 30, December 31, Raw materials $ 33,068 $ 32,994 Work-in-process 17,696 17,786 Finished goods 128,920 113,538 Inventories (Note 2) $ 179,684 $ 164,318 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET During the third quarter of 2018, we decided to discontinue the development of our in–house SNAP Fecal product and focus resources and capital on supporting fecal antigen testing within our reference laboratories, which resulted in a $2.6 million impairment of construction in progress production equipment related to SNAP Fecal. This impairment charge is recorded as general and administrative expense in our CAG reporting segment. |
Other Current and Long-Term Ass
Other Current and Long-Term Assets | 9 Months Ended |
Sep. 30, 2018 | |
Other Assets, Noncurrent [Abstract] | |
Other Current and Long-Term Assets | OTHER CURRENT AND LONG-TERM ASSETS Other current assets consisted of the following (in thousands) : September 30, December 31, Prepaid expenses $ 31,997 $ 28,967 Taxes receivable 23,769 35,475 Customer acquisition costs (Notes 2 and 3) 32,768 23,520 Contract assets (Notes 2 and 3) 7,357 — Deferred sales commissions (Notes 2 and 3) 4,428 — Other assets (Notes 2 and 3) 12,754 13,178 Other current assets $ 113,073 $ 101,140 Other long-term assets consisted of the following (in thousands) : September 30, December 31, Investment in long-term product supply arrangements $ 10,532 $ 9,949 Customer acquisition costs (Notes 2 and 3) 87,034 64,670 Contract assets (Notes 2 and 3) 21,680 — Deferred sales commissions (Notes 2 and 3) 8,894 — Deferred income taxes (Note 2) 8,436 7,698 Other assets (Notes 2 and 3) 35,311 36,299 Other long-term assets $ 171,887 $ 118,616 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands) : September 30, December 31, Accrued expenses $ 61,301 $ 64,430 Accrued employee compensation and related expenses 87,184 102,944 Accrued taxes 28,082 29,389 Accrued customer incentives and refund obligations (Notes 2 and 3) 61,864 56,655 Total accrued liabilities $ 238,431 $ 253,418 Other long-term liabilities consisted of the following ( in thousands ): September 30, December 31, Accrued taxes $ 63,385 $ 66,506 Accrued customer incentives (Note 2) — 12,956 Other accrued long-term expenses 18,109 16,256 Total other long-term liabilities $ 81,494 $ 95,718 |
Repurchases Of Common Stock
Repurchases Of Common Stock | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Repurchases Of Common Stock | 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 and nine months ended September 30, 2018 and 2017 , 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 and nine months ended September 30, 2018 and 2017 (in thousands, except per share amounts) : For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Shares repurchased in the open market 302 312 1,284 1,398 Shares acquired through employee surrender for statutory tax withholding 1 2 50 55 Total shares repurchased 303 314 1,334 1,453 Cost of shares repurchased in the open market $ 73,247 $ 50,413 $ 265,209 $ 215,320 Cost of shares for employee surrenders 390 370 9,110 7,829 Total cost of shares $ 73,637 $ 50,783 $ 274,319 $ 223,149 Average cost per share - open market repurchases $ 242.78 $ 161.57 $ 206.59 $ 153.99 Average cost per share - employee surrenders $ 253.34 $ 155.14 $ 181.68 $ 142.15 Average cost per share - total $ 242.83 $ 161.52 $ 205.65 $ 153.54 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective income tax rate was 14.5% for the three months ended September 30, 2018 , as compared to 23.4% for the three months ended September 30, 2017 , and 16.9% for the nine months ended September 30, 2018 , as compared to 22.8% for the nine months ended September 30, 2017 . The decrease in our effective tax rate for each period, as compared to the same periods in the prior year, was primarily related to the reduction in our U.S. statutory tax rate as a result of the 2017 Tax Act and tax benefits related to share-based compensation. We have accounted for the impacts of the 2017 Tax Act as of December 31, 2017 , 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 nine months 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 any measurement period adjustments 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 | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in AOCI, net of tax, for the nine months ended September 30, 2018 consisted of the following (in thousands) : For the Nine Months Ended September 30, 2018 Unrealized (Loss) Gain on Investments, Net of Tax Unrealized (Loss) Gain on Derivative Instruments, Net of Tax Unrealized (Loss) Gain 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 187 7,514 2,818 (18,172 ) (7,653 ) Gains reclassified from accumulated other comprehensive income — 1,936 — — 1,936 Balance as of September 30, 2018 $ 165 $ 4,231 $ (1,493 ) $ (45,090 ) $ (42,187 ) The following is a summary of reclassifications out of AOCI for the three and nine months ended September 30, 2018 and 2017 (in thousands) : Details about AOCI Components Affected Line Item in the Statement of Operations Amounts Reclassified from AOCI For the Three Months Ended September 30, 2018 2017 Gains (losses) on derivative instruments classified as cash flow hedges included in net income: Foreign currency exchange contracts Cost of revenue $ 256 $ (893 ) Tax expense (benefits) 153 (333 ) Gains (losses), net of tax $ 103 $ (560 ) Details about AOCI Components Affected Line Item in the Statement of Operations Amounts Reclassified from AOCI For the Nine Months Ended September 30, 2018 2017 (Losses) gains on derivative instruments classified as cash flow hedges included in net income: Foreign currency exchange contracts Cost of revenue $ (2,412 ) $ 935 Tax (benefits) expense (476 ) 348 (Losses) gains, net of tax $ (1,936 ) $ 587 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 earnings per share for the three and nine months ended September 30, 2018 and 2017 (in thousands) : For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Shares outstanding for basic earnings per share 86,756 87,537 87,029 87,884 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 86,756 87,537 87,029 87,884 Dilutive effect of share-based payment awards 1,697 1,719 1,658 1,851 88,453 89,256 88,687 89,735 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. There were no anti-dilutive restricted stock units for the three and nine months ended September 30, 2018 and 2017 . The following table presents information concerning those anti-dilutive options for the three and nine months ended September 30, 2018 and 2017 (in thousands ): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Weighted average number of shares underlying anti-dilutive options 15 377 274 310 |
Commitments, Contingencies And
Commitments, Contingencies And Guarantees | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies And Guarantees | COMMITMENTS, CONTINGENCIES AND GUARANTEES We are subject to claims that may arise in the ordinary course of business, including with respect to actual and threatened litigation and other matters. We accrue for loss contingencies when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. However, our actual losses with respect to these contingencies could exceed our accruals. At September 30, 2018 , our accruals with respect to actual and threatened litigation were not material. From time to time, we have received notices alleging that our products infringe third-party proprietary rights, although we are not aware of any pending litigation with respect to such claims. Patent litigation frequently is complex and expensive, and the outcome of patent litigation can be difficult to predict. There can be no assurance that we will prevail in any infringement proceedings that may be commenced against us. If we lose any such litigation, we may be stopped from selling certain products and/or we may be required to pay damages as a result of the litigation. Significant commitments, contingencies and guarantees at September 30, 2018 , are consistent with those discussed in Note 14 to the consolidated financial statements in our 2017 Annual Report. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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 health 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 and nine months ended September 30, 2018 and 2017 (in thousands) : For the Three Months Ended September 30, CAG Water LPD Other Unallocated Amounts Consolidated Total 2018 Revenue $ 478,097 $ 33,108 $ 29,420 $ 4,823 $ — $ 545,448 Income (loss) from operations $ 102,241 $ 15,874 $ 4,007 $ 443 $ (5,215 ) $ 117,350 Interest expense, net (8,311 ) Income before provision for income taxes 109,039 Provision for income taxes 15,825 Net income 93,214 Less: Net loss attributable to noncontrolling interest (37 ) Net income attributable to IDEXX Laboratories, Inc. stockholders $ 93,251 2017 Revenue $ 426,686 $ 31,030 $ 28,396 $ 5,864 $ — $ 491,976 Income (loss) from operations $ 89,271 $ 14,505 $ 902 $ 2,114 $ (6,379 ) $ 100,413 Interest expense, net (8,364 ) Income before provision for income taxes 92,049 Provision for income taxes 21,535 Net income 70,514 Less: Net income attributable to noncontrolling interest 3 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 70,511 For the Nine Months Ended September 30, CAG Water LPD Other Unallocated Amounts Consolidated Total 2018 Revenue $ 1,456,417 $ 94,909 $ 96,658 $ 15,872 $ — $ 1,663,856 Income (loss) from operations $ 332,435 $ 43,458 $ 13,439 $ 2,071 $ (15,415 ) $ 375,988 Interest expense, net (25,291 ) Income before provision for income taxes 350,697 Provision for income taxes 59,327 Net income 291,370 Less: Net loss attributable to noncontrolling interest (23 ) Net income attributable to IDEXX Laboratories, Inc. stockholders $ 291,393 2017 Revenue $ 1,269,861 $ 85,531 $ 91,266 $ 16,279 $ — $ 1,462,937 Income (loss) from operations $ 277,857 $ 38,421 $ 9,880 $ 3,275 $ (14,213 ) $ 315,220 Interest expense, net (23,849 ) Income before provision for income taxes 291,371 Provision for income taxes 66,392 Net income 224,979 Less: Net income attributable to noncontrolling interest 92 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 224,887 See “Note 3 . Revenue Recognition ” for a summary of disaggregated revenue by reportable segment and by major product and service category for the three and nine months ended September 30, 2018 and 2017 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 and nine months ended September 30, 2018 . 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 cross currency swap 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 cross currency swap contracts classified as derivative instruments using prevailing market conditions as of the close of business on each balance sheet date. The product of this calculation is then adjusted for counterparty risk. 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 $601.7 million and $602.9 million , respectively, as of September 30, 2018 , and $632.0 million and $606.6 million , respectively, as of December 31, 2017 . The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis at September 30, 2018 , and at December 31, 2017 , by level within the fair value hierarchy (in thousands) : As of September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Assets Money market funds (1) $ 8,617 $ — $ — $ 8,617 Equity mutual funds (2) $ 1,991 $ — $ — $ 1,991 Cross currency swaps (3) — $ 148 — $ 148 Foreign currency exchange contracts (3) $ — $ 5,808 $ — $ 5,808 Liabilities Foreign currency exchange contracts (3) $ — $ 744 $ — $ 744 Deferred compensation (4) $ 1,991 $ — $ — $ 1,991 As of December 31, 2017 Quoted Prices Significant Significant Balance at 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 cash equivalents as of September 30, 2018 and December 31, 2017 , consisted of demand deposits. Certificates 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) Cross currency swaps and foreign currency exchange contracts are included within other current assets; other long-term assets; accrued liabilities; or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. (4) A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in 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 | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Instruments | 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, cross currency swaps 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, changes 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 13 . Accumulated Other Comprehensive Income ” for further information regarding the effect of hedging instruments on our unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 . 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 either the three and nine months ended September 30, 2018 or 2017 . At September 30, 2018 , the estimated amount of net gains, net of income tax benefit, which are expected to be reclassified out of AOCI and into earnings within the next 12 months , is $3.0 million if exchange rates do not fluctuate from the levels at September 30, 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 $192.5 million and $176.5 million at September 30, 2018 and December 31, 2017 , respectively. Net Investment Hedges 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 gains of $0.6 million and $2.8 million , net of income tax, within AOCI as a result of this net investment hedge for the three and nine months ended September 30, 2018 , respectively. The related cumulative unrealized gain recorded at September 30, 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 2017 Annual Report for further information regarding the issuance of these euro-denominated notes. In May 2018, we entered into two cross currency swap contracts as a hedge of our net investment in foreign operations to offset foreign currency translation gains and losses on the net investment. The cross currency swaps have a maturity date of June 30, 2023. At maturity of the cross currency swap contract, we will deliver the notional amount of €50.0 million and will receive approximately $59.4 million from the counterparties. The change in fair value of the cross currency swap contracts are recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially liquidated. During the three and nine months ended September 30, 2018 , we recorded a loss of $0.1 million and a gain of $0.1 million , net of income tax, within AOCI as a result of these net investment hedges, respectively. We will receive quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swap. This interest rate component is excluded from the assessment of hedge effectiveness, thus will be recognized as a reduction to interest expense over the life of the hedge instrument. We recognized approximately $0.4 million and $0.6 million related to the excluded component as a reduction of interest expense for the three and nine months ended September 30, 2018 , respectively. The following tables present the effect of cash flow hedge accounting on our unaudited condensed consolidated statements of operations and comprehensive income, and provide information regarding the location and amounts of pretax gains or losses of derivatives (in thousands) : Three Months Ended September 30, 2018 2017 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 239,805 $ 217,974 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 256 $ (893 ) Nine Months Ended September 30, 2018 2017 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 722,675 $ 638,029 Foreign exchange contracts Amount of (loss) gain reclassified from accumulated other comprehensive income into income $ (2,412 ) $ 935 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 derivative instruments, unless otherwise noted (in thousands) : Hedging Assets September 30, 2018 December 31, 2017 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 4,469 $ 477 Cross currency swaps Other current assets 148 — Foreign currency exchange contracts Other long-term assets 1,339 — Total derivative instruments presented as cash flow hedges on the balance sheet 5,956 477 Gross amounts subject to master netting arrangements not offset on the balance sheet 419 477 Net amount $ 5,537 $ — Hedging Liabilities September 30, 2018 December 31, 2017 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 681 $ 6,468 Foreign currency exchange contracts Other long-term liabilities 63 — Total derivative instruments presented as cash flow hedges on the balance sheet 744 6,468 Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) Long-term debt 102,861 106,567 Total hedging instruments presented on the balance sheet 103,605 113,035 Gross amounts subject to master netting arrangements not offset on the balance sheet 419 477 Net amount $ 103,186 $ 112,558 (1) Amounts represent reported carrying amounts of our foreign currency denominated debt. See Note 17 for information regarding the fair value of our long-term debt. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 or discounted instrument or system upon entering into multi-year agreements to purchase annual minimum amounts of future products or services and includes our 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 instrument 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 costs. 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 Points 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 Points. 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. 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): Simplifying the Test for Goodwill Impairment , 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 first nine months of 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 12 . Income Taxes .” In April 2018, we early adopted FASB ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements, effective January 1, 2018. The adoption of this guidance allowed us to simplify our procedures to assess critical terms and broadens the application of hedge accounting. The early adoption of this standard did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (the "New Leasing Standard"), 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. We intend to elect the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods. We also intend to elect the transition package of three practical expedients permitted within the New Leasing Standard, which among other things, allows the carryforward of historical lease classifications. We currently expect that under the New Leasing Standard as a lessee, our operating lease commitments will be 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. See Note 14 to the consolidated financial statements in our 2017 Annual Report for a summary of undiscounted minimum annual rental payments under operating lease commitments. Upon adoption, we anticipate our portfolio of real estate, vehicle and equipment leases will be relatively consistent with 2017 and therefore assets and liabilities recorded upon adoption will be of a similar magnitude, except they will be recorded on a discounted basis. While the New Leasing Standard will not impact the overall economics of our products and services sold under customer incentive programs, we currently expect that the New Leasing Standard will require us to classify new instrument placements for certain reagent rental programs as sales-type leases and thus accelerate instrument revenue and cost recognition at the time of placement. Under current U.S. GAAP, instruments placed under our reagent rental programs are classified as operating leases and instrument revenue and cost is recognized over the term of the program. We do not expect this change to have a material impact on our financial statements. See "Note 3 . Revenue Recognition " for a description of our reagent rental programs. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , 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. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which modifies the disclosure requirements of fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangible-Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Cost Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"), which clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact 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 Note 2. Summary of Significant Accounting Policies - New Accounting Pronouncements Not Yet Adopted in our 2017 Annual Report. |
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. |
Inventories | Inventories are stated at the lower of cost (first-in, first-out) or net 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. |
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. |
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 and nine months ended September 30, 2018 . 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 cross currency swap 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 cross currency swap contracts classified as derivative instruments using prevailing market conditions as of the close of business on each balance sheet date. The product of this calculation is then adjusted for counterparty risk. 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. |
Derivatives | 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, cross currency swaps 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, changes 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 13 . Accumulated Other Comprehensive Income ” for further information regarding the effect of hedging instruments on our unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 . 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) | 9 Months Ended |
Sep. 30, 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 (Reported) New U.S. GAAP January 1, 2018 Attributed to the New Revenue Standard ASSETS Cash, cash equivalents and marketable securities $ 471,930 $ 471,930 $ — Accounts receivable 234,597 237,281 2,684 Inventories 164,318 163,184 (1,134 ) Property and equipment, net 379,096 379,096 — Goodwill and intangible assets, net 243,719 243,719 — Other assets 219,756 246,481 26,725 TOTAL ASSETS $ 1,713,416 $ 1,741,691 $ 28,275 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 66,968 $ 66,968 $ — Accrued liabilities 253,418 254,381 963 Deferred income tax liabilities 25,353 25,087 (266 ) Line of credit and long-term debt 1,261,075 1,261,075 — Deferred revenue 64,726 110,158 45,432 Other long-term liabilities 95,718 82,840 (12,878 ) Total liabilities 1,767,258 1,800,509 33,251 Stockholders’ Deficit: Retained earnings 803,545 798,569 (4,976 ) All other stockholders' deficit and noncontrolling interest (857,387 ) (857,387 ) — Total stockholders’ deficit (53,842 ) (58,818 ) (4,976 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,713,416 $ 1,741,691 $ 28,275 The following tables compare the reported unaudited condensed consolidated balance sheet, statement of operations and cash flows, as of and for the three and nine months ended September 30, 2018 , to the balances without the adoption of the New Revenue Standard ("previous U.S. GAAP") ( in thousands ): Condensed Consolidated Balance Sheet As of September 30, 2018 Previous U.S. GAAP New U.S. GAAP (As Reported) Attributed to the New Revenue Standard ASSETS Cash and cash equivalents $ 146,877 $ 146,877 $ — Accounts receivable 260,803 264,563 3,760 Inventories 181,830 179,684 (2,146 ) Property and equipment, net 409,980 409,980 — Goodwill and intangible assets, net 258,466 258,466 — Other assets 245,276 284,960 39,684 TOTAL ASSETS $ 1,503,232 $ 1,544,530 $ 41,298 LIABILITIES AND STOCKHOLDERS’ DEFICIT Accounts payable $ 65,457 $ 65,457 $ — Accrued liabilities 237,904 238,431 527 Deferred income tax liabilities 38,897 39,899 1,002 Line of credit and long-term debt 1,016,916 1,016,916 — Deferred revenue 63,764 103,696 39,932 Other long-term liabilities 90,420 81,494 (8,926 ) Total liabilities 1,513,358 1,545,893 32,535 Stockholders’ Deficit: Retained earnings 1,073,597 1,082,292 8,695 Accumulated other comprehensive (loss) income (42,255 ) (42,187 ) 68 All other stockholders' deficit and noncontrolling interest (1,041,468 ) (1,041,468 ) — Total stockholders’ deficit (10,126 ) (1,363 ) 8,763 TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 1,503,232 $ 1,544,530 $ 41,298 Condensed Consolidated Statement of Operations For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 Previous U.S. GAAP New U.S. GAAP (As Reported) Attributed to the New Revenue Standard Previous U.S. GAAP New U.S. GAAP Attributed to the Total revenue $ 531,525 $ 545,448 $ 13,923 $ 1,622,773 $ 1,663,856 $ 41,083 Total cost of revenue 231,277 239,805 8,528 698,733 722,675 23,942 Gross profit 300,248 305,643 5,395 924,040 941,181 17,141 Total operating expense 188,725 188,293 (432 ) 566,672 565,193 (1,479 ) Income from operations 111,523 117,350 5,827 357,368 375,988 18,620 Interest expense (8,453 ) (8,453 ) — (26,184 ) (26,184 ) — Interest income 394 142 (252 ) 1,693 893 (800 ) Income before provision for income taxes 103,464 109,039 5,575 332,877 350,697 17,820 Provision for income taxes 14,642 15,825 1,183 55,178 59,327 4,149 Net income $ 88,822 $ 93,214 $ 4,392 $ 277,699 $ 291,370 $ 13,671 Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2018 Previous U.S. GAAP New U.S. GAAP (As Reported) Attributed to the New Revenue Standard Cash Flows from Operating Activities: Net income $ 277,699 $ 291,370 $ 13,671 Adjustments to reconcile net income to net cash provided by operating activities: Benefit of deferred income taxes 9,244 12,850 3,606 All other adjustments to reconcile net income to net cash provided by operating activities 86,536 86,536 — Changes in assets and liabilities, net (109,043 ) (126,320 ) (17,277 ) Net cash provided by operating activities $ 264,436 $ 264,436 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents disaggregated revenue by major product and service categories for the three and nine months ended September 30, 2018 and 2017 ( in thousands ): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 CAG segment revenue: CAG Diagnostics recurring revenue: $ 409,162 $ 364,937 $ 1,252,876 $ 1,091,936 IDEXX VetLab consumables 152,509 129,434 460,642 385,081 Rapid assay products 53,821 50,924 169,200 159,085 Reference laboratory diagnostic and consulting services 184,103 167,851 568,308 498,218 CAG Diagnostics service and accessories 18,729 16,728 54,726 49,552 CAG Diagnostics capital - instruments 31,561 29,119 97,000 83,018 Veterinary software, services and diagnostic imaging systems 37,374 32,630 106,541 94,907 CAG segment revenue 478,097 426,686 1,456,417 1,269,861 Water segment revenue 33,108 31,030 94,909 85,531 LPD segment revenue 29,420 28,396 96,658 91,266 Other segment revenue 4,823 5,864 15,872 16,279 Total revenue $ 545,448 $ 491,976 $ 1,663,856 $ 1,462,937 Revenue by principal geographic area, based on customers’ domiciles, was as follows ( in thousands ): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 United States $ 340,692 $ 301,457 $ 1,024,889 $ 905,765 Europe, the Middle East and Africa 112,466 106,548 355,310 305,458 Asia Pacific Region 56,954 51,161 175,498 156,198 Canada 22,459 20,654 71,410 62,480 Latin America 12,877 12,156 36,749 33,036 Total $ 545,448 $ 491,976 $ 1,663,856 $ 1,462,937 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of weighted averages of the assumptions used in estimating the fair value of stock 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 Nine Months Ended 2018 2017 Share price at grant $ 179.56 $ 142.89 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 $ 52.99 $ 40.83 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Marketable Securities [Abstract] | |
Amortized cost and fair value of marketable securities | 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 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory, Net [Abstract] | |
Schedule of components of inventories | The components of inventories were as follows (in thousands) : September 30, December 31, Raw materials $ 33,068 $ 32,994 Work-in-process 17,696 17,786 Finished goods 128,920 113,538 Inventories (Note 2) $ 179,684 $ 164,318 |
Other Current and Long-Term A_2
Other Current and Long-Term Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other current assets | Other current assets consisted of the following (in thousands) : September 30, December 31, Prepaid expenses $ 31,997 $ 28,967 Taxes receivable 23,769 35,475 Customer acquisition costs (Notes 2 and 3) 32,768 23,520 Contract assets (Notes 2 and 3) 7,357 — Deferred sales commissions (Notes 2 and 3) 4,428 — Other assets (Notes 2 and 3) 12,754 13,178 Other current assets $ 113,073 $ 101,140 |
Schedule of other long-term assets | Other long-term assets consisted of the following (in thousands) : September 30, December 31, Investment in long-term product supply arrangements $ 10,532 $ 9,949 Customer acquisition costs (Notes 2 and 3) 87,034 64,670 Contract assets (Notes 2 and 3) 21,680 — Deferred sales commissions (Notes 2 and 3) 8,894 — Deferred income taxes (Note 2) 8,436 7,698 Other assets (Notes 2 and 3) 35,311 36,299 Other long-term assets $ 171,887 $ 118,616 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands) : September 30, December 31, Accrued expenses $ 61,301 $ 64,430 Accrued employee compensation and related expenses 87,184 102,944 Accrued taxes 28,082 29,389 Accrued customer incentives and refund obligations (Notes 2 and 3) 61,864 56,655 Total accrued liabilities $ 238,431 $ 253,418 |
Schedule of other long-term liabilities | Other long-term liabilities consisted of the following ( in thousands ): September 30, December 31, Accrued taxes $ 63,385 $ 66,506 Accrued customer incentives (Note 2) — 12,956 Other accrued long-term expenses 18,109 16,256 Total other long-term liabilities $ 81,494 $ 95,718 |
Repurchases Of Common Stock (Ta
Repurchases Of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of common stock repurchases | 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 and nine months ended September 30, 2018 and 2017 (in thousands, except per share amounts) : For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Shares repurchased in the open market 302 312 1,284 1,398 Shares acquired through employee surrender for statutory tax withholding 1 2 50 55 Total shares repurchased 303 314 1,334 1,453 Cost of shares repurchased in the open market $ 73,247 $ 50,413 $ 265,209 $ 215,320 Cost of shares for employee surrenders 390 370 9,110 7,829 Total cost of shares $ 73,637 $ 50,783 $ 274,319 $ 223,149 Average cost per share - open market repurchases $ 242.78 $ 161.57 $ 206.59 $ 153.99 Average cost per share - employee surrenders $ 253.34 $ 155.14 $ 181.68 $ 142.15 Average cost per share - total $ 242.83 $ 161.52 $ 205.65 $ 153.54 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income | The changes in AOCI, net of tax, for the nine months ended September 30, 2018 consisted of the following (in thousands) : For the Nine Months Ended September 30, 2018 Unrealized (Loss) Gain on Investments, Net of Tax Unrealized (Loss) Gain on Derivative Instruments, Net of Tax Unrealized (Loss) Gain 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 187 7,514 2,818 (18,172 ) (7,653 ) Gains reclassified from accumulated other comprehensive income — 1,936 — — 1,936 Balance as of September 30, 2018 $ 165 $ 4,231 $ (1,493 ) $ (45,090 ) $ (42,187 ) |
Summary of reclassifications out of other comprehensive income | The following is a summary of reclassifications out of AOCI for the three and nine months ended September 30, 2018 and 2017 (in thousands) : Details about AOCI Components Affected Line Item in the Statement of Operations Amounts Reclassified from AOCI For the Three Months Ended September 30, 2018 2017 Gains (losses) on derivative instruments classified as cash flow hedges included in net income: Foreign currency exchange contracts Cost of revenue $ 256 $ (893 ) Tax expense (benefits) 153 (333 ) Gains (losses), net of tax $ 103 $ (560 ) Details about AOCI Components Affected Line Item in the Statement of Operations Amounts Reclassified from AOCI For the Nine Months Ended September 30, 2018 2017 (Losses) gains on derivative instruments classified as cash flow hedges included in net income: Foreign currency exchange contracts Cost of revenue $ (2,412 ) $ 935 Tax (benefits) expense (476 ) 348 (Losses) gains, net of tax $ (1,936 ) $ 587 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of shares outstanding for basic and diluted earnings per share | The following is a reconciliation of weighted average shares outstanding for basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 (in thousands) : For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Shares outstanding for basic earnings per share 86,756 87,537 87,029 87,884 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 86,756 87,537 87,029 87,884 Dilutive effect of share-based payment awards 1,697 1,719 1,658 1,851 88,453 89,256 88,687 89,735 |
Schedule of number of anti-dilutive stock options | The following table presents information concerning those anti-dilutive options for the three and nine months ended September 30, 2018 and 2017 (in thousands ): For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Weighted average number of shares underlying anti-dilutive options 15 377 274 310 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of segment performance | The following is a summary of segment performance for the three and nine months ended September 30, 2018 and 2017 (in thousands) : For the Three Months Ended September 30, CAG Water LPD Other Unallocated Amounts Consolidated Total 2018 Revenue $ 478,097 $ 33,108 $ 29,420 $ 4,823 $ — $ 545,448 Income (loss) from operations $ 102,241 $ 15,874 $ 4,007 $ 443 $ (5,215 ) $ 117,350 Interest expense, net (8,311 ) Income before provision for income taxes 109,039 Provision for income taxes 15,825 Net income 93,214 Less: Net loss attributable to noncontrolling interest (37 ) Net income attributable to IDEXX Laboratories, Inc. stockholders $ 93,251 2017 Revenue $ 426,686 $ 31,030 $ 28,396 $ 5,864 $ — $ 491,976 Income (loss) from operations $ 89,271 $ 14,505 $ 902 $ 2,114 $ (6,379 ) $ 100,413 Interest expense, net (8,364 ) Income before provision for income taxes 92,049 Provision for income taxes 21,535 Net income 70,514 Less: Net income attributable to noncontrolling interest 3 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 70,511 For the Nine Months Ended September 30, CAG Water LPD Other Unallocated Amounts Consolidated Total 2018 Revenue $ 1,456,417 $ 94,909 $ 96,658 $ 15,872 $ — $ 1,663,856 Income (loss) from operations $ 332,435 $ 43,458 $ 13,439 $ 2,071 $ (15,415 ) $ 375,988 Interest expense, net (25,291 ) Income before provision for income taxes 350,697 Provision for income taxes 59,327 Net income 291,370 Less: Net loss attributable to noncontrolling interest (23 ) Net income attributable to IDEXX Laboratories, Inc. stockholders $ 291,393 2017 Revenue $ 1,269,861 $ 85,531 $ 91,266 $ 16,279 $ — $ 1,462,937 Income (loss) from operations $ 277,857 $ 38,421 $ 9,880 $ 3,275 $ (14,213 ) $ 315,220 Interest expense, net (23,849 ) Income before provision for income taxes 291,371 Provision for income taxes 66,392 Net income 224,979 Less: Net income attributable to noncontrolling interest 92 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 224,887 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured on recurring basis | The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis at September 30, 2018 , and at December 31, 2017 , by level within the fair value hierarchy (in thousands) : As of September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Assets Money market funds (1) $ 8,617 $ — $ — $ 8,617 Equity mutual funds (2) $ 1,991 $ — $ — $ 1,991 Cross currency swaps (3) — $ 148 — $ 148 Foreign currency exchange contracts (3) $ — $ 5,808 $ — $ 5,808 Liabilities Foreign currency exchange contracts (3) $ — $ 744 $ — $ 744 Deferred compensation (4) $ 1,991 $ — $ — $ 1,991 As of December 31, 2017 Quoted Prices Significant Significant Balance at 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 cash equivalents as of September 30, 2018 and December 31, 2017 , consisted of demand deposits. Certificates 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) Cross currency swaps and foreign currency exchange contracts are included within other current assets; other long-term assets; accrued liabilities; or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. (4) A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities and other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in footnote (2) above. |
Hedging Instruments (Tables)
Hedging Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of hedging instruments | The following tables present the effect of cash flow hedge accounting on our unaudited condensed consolidated statements of operations and comprehensive income, and provide information regarding the location and amounts of pretax gains or losses of derivatives (in thousands) : Three Months Ended September 30, 2018 2017 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 239,805 $ 217,974 Foreign exchange contracts Amount of gain (loss) reclassified from accumulated other comprehensive income into income $ 256 $ (893 ) Nine Months Ended September 30, 2018 2017 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 722,675 $ 638,029 Foreign exchange contracts Amount of (loss) gain reclassified from accumulated other comprehensive income into income $ (2,412 ) $ 935 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 derivative instruments, unless otherwise noted (in thousands) : Hedging Assets September 30, 2018 December 31, 2017 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 4,469 $ 477 Cross currency swaps Other current assets 148 — Foreign currency exchange contracts Other long-term assets 1,339 — Total derivative instruments presented as cash flow hedges on the balance sheet 5,956 477 Gross amounts subject to master netting arrangements not offset on the balance sheet 419 477 Net amount $ 5,537 $ — Hedging Liabilities September 30, 2018 December 31, 2017 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 681 $ 6,468 Foreign currency exchange contracts Other long-term liabilities 63 — Total derivative instruments presented as cash flow hedges on the balance sheet 744 6,468 Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) Long-term debt 102,861 106,567 Total hedging instruments presented on the balance sheet 103,605 113,035 Gross amounts subject to master netting arrangements not offset on the balance sheet 419 477 Net amount $ 103,186 $ 112,558 (1) Amounts represent reported carrying amounts of our foreign currency denominated debt. See Note 17 for information regarding the fair value of our long-term debt. |
Basis Of Presentation And Pri_2
Basis Of Presentation And Principles Of Consolidation (Details) $ in Millions | Dec. 31, 2017USD ($) |
Accounting Standards Update 2014-09 & 2016-16 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of applying these standards was an adjustment to the opening balance of retained earnings | $ 12.6 |
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 | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
ASSETS | |||
Cash, cash equivalents and marketable securities | $ 471,930 | ||
Accounts receivable | $ 264,563 | 237,281 | $ 234,597 |
Inventories | 179,684 | 163,184 | 164,318 |
Property and equipment, net | 409,980 | 379,096 | 379,096 |
Goodwill and intangible assets, net | 258,466 | 243,719 | |
Other assets | 284,960 | 246,481 | |
TOTAL ASSETS | 1,544,530 | 1,741,691 | 1,713,416 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||
Accounts payable | 65,457 | 66,968 | 66,968 |
Accrued liabilities | 238,431 | 254,381 | 253,418 |
Deferred income tax liabilities | 39,899 | 25,087 | 25,353 |
Line of credit and long-term debt | 1,016,916 | 1,261,075 | |
Deferred revenue | 103,696 | 110,158 | |
Other long-term liabilities | 81,494 | 82,840 | 95,718 |
Total liabilities | 1,545,893 | 1,800,509 | 1,767,258 |
Stockholders’ Deficit: | |||
Retained earnings | 1,082,292 | 798,569 | 803,545 |
All other stockholders' deficit and noncontrolling interest | (1,041,468) | (857,387) | |
Total stockholders’ deficit | (1,363) | (58,818) | (53,842) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,544,530 | $ 1,741,691 | 1,713,416 |
Previous U.S. GAAP (Reported) | |||
ASSETS | |||
Cash, cash equivalents and marketable securities | 471,930 | ||
Accounts receivable | 260,803 | 234,597 | |
Inventories | 181,830 | 164,318 | |
Property and equipment, net | 409,980 | 379,096 | |
Goodwill and intangible assets, net | 258,466 | 243,719 | |
Other assets | 245,276 | 219,756 | |
TOTAL ASSETS | 1,503,232 | 1,713,416 | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||
Accounts payable | 65,457 | 66,968 | |
Accrued liabilities | 237,904 | 253,418 | |
Deferred income tax liabilities | 38,897 | 25,353 | |
Line of credit and long-term debt | 1,016,916 | 1,261,075 | |
Deferred revenue | 63,764 | 64,726 | |
Other long-term liabilities | 90,420 | 95,718 | |
Total liabilities | 1,513,358 | 1,767,258 | |
Stockholders’ Deficit: | |||
Retained earnings | 1,073,597 | 803,545 | |
All other stockholders' deficit and noncontrolling interest | (1,041,468) | (857,387) | |
Total stockholders’ deficit | (10,126) | (53,842) | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,503,232 | 1,713,416 | |
Accounting Standards Update 2014-09 | Attributed to the New Revenue Standard | |||
ASSETS | |||
Accounts receivable | 3,760 | 2,684 | |
Inventories | (2,146) | (1,134) | |
Property and equipment, net | 0 | ||
Goodwill and intangible assets, net | 0 | ||
Other assets | 39,684 | 26,725 | |
TOTAL ASSETS | 41,298 | 28,275 | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||
Accounts payable | 0 | ||
Accrued liabilities | 527 | 963 | |
Deferred income tax liabilities | 1,002 | (266) | |
Line of credit and long-term debt | 0 | ||
Deferred revenue | 39,932 | 45,432 | |
Other long-term liabilities | (8,926) | (12,878) | |
Total liabilities | 32,535 | 33,251 | |
Stockholders’ Deficit: | |||
Retained earnings | 8,695 | (4,976) | |
All other stockholders' deficit and noncontrolling interest | 0 | ||
Total stockholders’ deficit | 8,763 | (4,976) | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 41,298 | $ 28,275 |
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 | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
ASSETS | |||
Cash and cash equivalents | $ 146,877 | $ 187,675 | |
Accounts receivable | 264,563 | $ 237,281 | 234,597 |
Inventories | 179,684 | 163,184 | 164,318 |
Property and equipment, net | 409,980 | 379,096 | 379,096 |
Goodwill and intangible assets, net | 258,466 | 243,719 | |
Other assets | 284,960 | 246,481 | |
TOTAL ASSETS | 1,544,530 | 1,741,691 | 1,713,416 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||
Accounts payable | 65,457 | 66,968 | 66,968 |
Accrued liabilities | 238,431 | 254,381 | 253,418 |
Deferred income tax liabilities | 39,899 | 25,087 | 25,353 |
Line of credit and long-term debt | 1,016,916 | 1,261,075 | |
Deferred revenue | 103,696 | 110,158 | |
Other long-term liabilities | 81,494 | 82,840 | 95,718 |
Total liabilities | 1,545,893 | 1,800,509 | 1,767,258 |
Stockholders’ Deficit: | |||
Retained earnings | 1,082,292 | 798,569 | 803,545 |
Accumulated other comprehensive loss | (42,187) | (36,470) | |
All other stockholders' deficit and noncontrolling interest | (1,041,468) | (857,387) | |
Total stockholders’ deficit | (1,363) | (58,818) | (53,842) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,544,530 | $ 1,741,691 | 1,713,416 |
Previous U.S. GAAP (Reported) | |||
ASSETS | |||
Cash and cash equivalents | 146,877 | ||
Accounts receivable | 260,803 | 234,597 | |
Inventories | 181,830 | 164,318 | |
Property and equipment, net | 409,980 | 379,096 | |
Goodwill and intangible assets, net | 258,466 | 243,719 | |
Other assets | 245,276 | 219,756 | |
TOTAL ASSETS | 1,503,232 | 1,713,416 | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||
Accounts payable | 65,457 | 66,968 | |
Accrued liabilities | 237,904 | 253,418 | |
Deferred income tax liabilities | 38,897 | 25,353 | |
Line of credit and long-term debt | 1,016,916 | 1,261,075 | |
Deferred revenue | 63,764 | 64,726 | |
Other long-term liabilities | 90,420 | 95,718 | |
Total liabilities | 1,513,358 | 1,767,258 | |
Stockholders’ Deficit: | |||
Retained earnings | 1,073,597 | 803,545 | |
Accumulated other comprehensive loss | (42,255) | ||
All other stockholders' deficit and noncontrolling interest | (1,041,468) | (857,387) | |
Total stockholders’ deficit | (10,126) | (53,842) | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,503,232 | 1,713,416 | |
Attributed to the New Revenue Standard | Accounting Standards Update 2014-09 | |||
ASSETS | |||
Cash and cash equivalents | 0 | ||
Accounts receivable | 3,760 | 2,684 | |
Inventories | (2,146) | (1,134) | |
Property and equipment, net | 0 | ||
Goodwill and intangible assets, net | 0 | ||
Other assets | 39,684 | 26,725 | |
TOTAL ASSETS | 41,298 | 28,275 | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||
Accounts payable | 0 | ||
Accrued liabilities | 527 | 963 | |
Deferred income tax liabilities | 1,002 | (266) | |
Line of credit and long-term debt | 0 | ||
Deferred revenue | 39,932 | 45,432 | |
Other long-term liabilities | (8,926) | (12,878) | |
Total liabilities | 32,535 | 33,251 | |
Stockholders’ Deficit: | |||
Retained earnings | 8,695 | (4,976) | |
Accumulated other comprehensive loss | 68 | ||
All other stockholders' deficit and noncontrolling interest | 0 | ||
Total stockholders’ deficit | 8,763 | (4,976) | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 41,298 | $ 28,275 |
Accounting Policies (Comparis_2
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 545,448 | $ 491,976 | $ 1,663,856 | $ 1,462,937 |
Total cost of revenue | 239,805 | 217,974 | 722,675 | 638,029 |
Gross profit | 305,643 | 274,002 | 941,181 | 824,908 |
Total operating expense | 188,293 | 565,193 | ||
Income from operations | 117,350 | 100,413 | 375,988 | 315,220 |
Interest expense | (8,453) | (9,764) | (26,184) | (27,508) |
Interest income | 142 | 1,400 | 893 | 3,659 |
Income before provision for income taxes | 109,039 | 92,049 | 350,697 | 291,371 |
Provision for income taxes | 15,825 | 21,535 | 59,327 | 66,392 |
Net income | 93,214 | $ 70,514 | 291,370 | $ 224,979 |
Previous U.S. GAAP | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 531,525 | 1,622,773 | ||
Total cost of revenue | 231,277 | 698,733 | ||
Gross profit | 300,248 | 924,040 | ||
Total operating expense | 188,725 | 566,672 | ||
Income from operations | 111,523 | 357,368 | ||
Interest expense | (8,453) | (26,184) | ||
Interest income | 394 | 1,693 | ||
Income before provision for income taxes | 103,464 | 332,877 | ||
Provision for income taxes | 14,642 | 55,178 | ||
Net income | 88,822 | 277,699 | ||
Attributed to the New Revenue Standard | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 13,923 | 41,083 | ||
Total cost of revenue | 8,528 | 23,942 | ||
Gross profit | 5,395 | 17,141 | ||
Total operating expense | (432) | (1,479) | ||
Income from operations | 5,827 | 18,620 | ||
Interest expense | 0 | 0 | ||
Interest income | (252) | (800) | ||
Income before provision for income taxes | 5,575 | 17,820 | ||
Provision for income taxes | 1,183 | 4,149 | ||
Net income | $ 4,392 | $ 13,671 |
Accounting Policies (Comparis_3
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||||
Net income | $ 93,214 | $ 70,514 | $ 291,370 | $ 224,979 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Benefit of (provision for) deferred income taxes | 12,850 | (438) | ||
All other adjustments to reconcile net income to net cash provided by operating activities | 86,536 | |||
Changes in assets and liabilities, net | (126,320) | |||
Net cash provided by operating activities | 264,436 | $ 252,150 | ||
Previous U.S. GAAP | ||||
Cash Flows from Operating Activities: | ||||
Net income | 88,822 | 277,699 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Benefit of (provision for) deferred income taxes | 9,244 | |||
All other adjustments to reconcile net income to net cash provided by operating activities | 86,536 | |||
Changes in assets and liabilities, net | (109,043) | |||
Net cash provided by operating activities | 264,436 | |||
Attributed to the New Revenue Standard | Accounting Standards Update 2014-09 | ||||
Cash Flows from Operating Activities: | ||||
Net income | $ 4,392 | 13,671 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Benefit of (provision for) deferred income taxes | 3,606 | |||
All other adjustments to reconcile net income to net cash provided by operating activities | 0 | |||
Changes in assets and liabilities, net | (17,277) | |||
Net cash provided by operating activities | $ 0 |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) $ in Millions | Jan. 01, 2018USD ($) |
Accounting Standards Update 2016-16 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of applying these standards was an adjustment to the opening balance of retained earnings | $ 7.7 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Billions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment term | 30 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment term | 60 days |
Up front customer loyalty programs and volume commitment programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimation of future revenues | $ 1.1 |
Revenue Recognition (Extended W
Revenue Recognition (Extended Warranties and Post-Contract Support) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred revenue | $ 103,696 | $ 103,696 | $ 110,158 |
Extended warranties and post contract support | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Post-contract support contract, term | 12 months | ||
Deferred revenue | 41,100 | $ 41,100 | $ 40,300 |
Deferred revenue recognized | 2,400 | 16,500 | |
Estimation of future revenues | $ 28,000 | $ 28,000 | |
Minimum | Extended warranties and post contract support | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Extended product warranty, term | 1 year | ||
Maximum | Extended warranties and post contract support | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Extended product warranty, term | 5 years |
Revenue Recognition (SaaS Subsc
Revenue Recognition (SaaS Subscriptions) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Maximum | |
Disaggregation of Revenue [Line Items] | |
SaaS Subscription, term of contract | 2 years |
Revenue Recognition (Up-Front C
Revenue Recognition (Up-Front Customer Loyalty Programs) (Details) - Up front customer loyalty programs - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Capitalized customer acquisition costs | $ 119.8 | $ 119.8 | $ 107.5 |
Recognized as a reduction of revenue | $ 7.1 | $ 21.5 |
Revenue Recognition (Volume Com
Revenue Recognition (Volume Commitment Programs) (Details) - Volume commitment programs - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Commitment contract assets | $ 29 | $ 29 | $ 5.6 |
Commitment contract assets reclassified to accounts receivable | $ 1 | $ 3.4 |
Revenue Recognition (Instrument
Revenue Recognition (Instrument Rebate Programs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred revenue | $ 103,696 | $ 103,696 | $ 110,158 |
Instrument rebate programs | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred revenue | 58,700 | 58,700 | $ 65,900 |
Deferred revenue recognized | $ 4,500 | $ 13,700 |
Revenue Recognition (Reagent Re
Revenue Recognition (Reagent Rental Programs) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Reagent rental programs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimation of future revenues | $ 54.8 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Major Product and Service Categories) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 545,448 | $ 491,976 | $ 1,663,856 | $ 1,462,937 |
CAG segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 478,097 | 426,686 | 1,456,417 | 1,269,861 |
Water segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 33,108 | 31,030 | 94,909 | 85,531 |
LPD segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 29,420 | 28,396 | 96,658 | 91,266 |
Other segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,823 | 5,864 | 15,872 | 16,279 |
Cag Diagnostics recurring revenue | CAG segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 409,162 | 364,937 | 1,252,876 | 1,091,936 |
IDEXX VetLab consumables | CAG segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 152,509 | 129,434 | 460,642 | 385,081 |
Rapid assay products | CAG segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 53,821 | 50,924 | 169,200 | 159,085 |
Reference laboratory diagnostic and consulting services | CAG segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 184,103 | 167,851 | 568,308 | 498,218 |
CAG Diagnostics service and accessories | CAG segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 18,729 | 16,728 | 54,726 | 49,552 |
CAG Diagnostics capital - instruments | CAG segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 31,561 | 29,119 | 97,000 | 83,018 |
Veterinary software, services and diagnostic imaging systems | CAG segment revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 37,374 | $ 32,630 | $ 106,541 | $ 94,907 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation of Revenue by Principal Geographic Area, Based on Customers' Domiciles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 545,448 | $ 491,976 | $ 1,663,856 | $ 1,462,937 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 340,692 | 301,457 | 1,024,889 | 905,765 |
Europe, the Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 112,466 | 106,548 | 355,310 | 305,458 |
Asia Pacific Region | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 56,954 | 51,161 | 175,498 | 156,198 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 22,459 | 20,654 | 71,410 | 62,480 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 12,877 | $ 12,156 | $ 36,749 | $ 33,036 |
Revenue Recognition (Costs to O
Revenue Recognition (Costs to Obtain a Contract) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred commission costs | $ 8,894 | $ 8,894 | $ 11,800 | $ 0 |
Commissions expense recognized | 800 | 2,700 | ||
Capitalized Contract Cost, Net | $ 13,300 | $ 13,300 | ||
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Amortization period | 3 years | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Amortization period | 7 years |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Remaining Performance Obligation) (Details) | Sep. 30, 2018 |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, remaining performance obligation, percentage | 7.00% |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 30.00% |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 26.00% |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, remaining performance obligation, percentage | 37.00% |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, remaining performance obligation, percentage | 7.00% |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 26.00% |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 21.00% |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, remaining performance obligation, percentage | 46.00% |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, remaining performance obligation, percentage | 8.00% |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 30.00% |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 24.00% |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, remaining performance obligation, percentage | 38.00% |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, remaining performance obligation, percentage | 9.00% |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 34.00% |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, remaining performance obligation, percentage | 27.00% |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Revenue, remaining performance obligation, percentage | 30.00% |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($)business | Jun. 30, 2017USD ($)business | Mar. 31, 2017EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 216,046 | $ 216,046 | $ 199,873 | ||||
Number of businesses acquired | business | 2 | ||||||
Amount paid at closing | 22,500 | $ 14,529 | |||||
Software company | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price of acquired assets | 25,000 | ||||||
Holdback payment | 1,000 | ||||||
Contingent payment | 1,500 | 1,500 | |||||
Goodwill | 20,300 | 20,300 | |||||
Net tangible liabilities | $ 300 | 300 | |||||
Contingent payment period | 36 months | ||||||
Reference laboratory in the United States | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price of acquired assets | $ 500 | ||||||
Three reference laboratory customer lists | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price of acquired assets | $ 1,300 | ||||||
Number of businesses acquired | business | 3 | ||||||
Two software companies | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price of acquired assets | $ 15,000 | ||||||
Contingent payment | 3,000 | ||||||
Goodwill | 13,300 | ||||||
Amount paid at closing | $ 12,000 | ||||||
Contingent payment period | 36 months | ||||||
Reference laboratory in Austria | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price of acquired assets | € | € 1.3 | ||||||
Technology intangible assets | Software company | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 2,600 | 2,600 | |||||
Technology intangible assets | Two software companies | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 600 | ||||||
Customer relationships | Software company | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 2,400 | $ 2,400 | |||||
Customer relationships | Two software companies | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 1,000 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Fair value of share-based compensation awards, granted | $ 0.7 | $ 1.5 | $ 33.5 | $ 31 |
Unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding | 57 | $ 57 | ||
Weighted average recognition period for unrecognized compensation expense, in years | 1 year 10 months 24 days | |||
Share-based compensation expense | $ 6.5 | $ 6.1 | $ 18.9 | $ 17.8 |
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 | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share price at grant (in dollars per share) | $ 179.56 | $ 142.89 |
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 (in dollars per share) | $ 52.99 | $ 40.83 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Marketable Securities [Abstract] | ||
Marketable securities liquidation, recognized gain (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 ($) |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | $ 284,429 |
Gross Unrealized Gains | 120 |
Gross Unrealized Losses | (294) |
Fair Value | 284,255 |
Corporate bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 140,969 |
Gross Unrealized Gains | 96 |
Gross Unrealized Losses | (179) |
Fair Value | 140,886 |
Certificates of deposit | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 58,510 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Fair Value | 58,510 |
Commercial paper | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 29,171 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | 0 |
Fair Value | 29,171 |
Asset backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 22,206 |
Gross Unrealized Gains | 4 |
Gross Unrealized Losses | (43) |
Fair Value | 22,167 |
U.S. government bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 15,619 |
Gross Unrealized Gains | 11 |
Gross Unrealized Losses | (19) |
Fair Value | 15,611 |
Agency bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 10,990 |
Gross Unrealized Gains | 9 |
Gross Unrealized Losses | (52) |
Fair Value | 10,947 |
Treasury bills | |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | 6,964 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (1) |
Fair Value | $ 6,963 |
Inventories (Schedule Of Compon
Inventories (Schedule Of Components Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | |||
Raw materials | $ 33,068 | $ 32,994 | |
Work-in-process | 17,696 | 17,786 | |
Finished goods | 128,920 | 113,538 | |
Inventories (Note 2) | $ 179,684 | $ 163,184 | $ 164,318 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2018USD ($) | |
SNAP Fecal production line assets | |
Property, Plant and Equipment [Line Items] | |
Impairment of assets | $ 2.6 |
Other Current and Long-Term A_3
Other Current and Long-Term Assets (Schedule Of Other Current Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Assets, Noncurrent [Abstract] | ||
Prepaid expenses | $ 31,997 | $ 28,967 |
Taxes receivable | 23,769 | 35,475 |
Customer acquisition costs (Notes 2 and 3) | 32,768 | 23,520 |
Contract assets (Notes 2 and 3) | 7,357 | 0 |
Deferred sales commissions (Notes 2 and 3) | 4,428 | 0 |
Other assets (Notes 2 and 3) | 12,754 | 13,178 |
Other current assets | $ 113,073 | $ 101,140 |
Other Current and Long-Term A_4
Other Current and Long-Term Assets (Schedule Of Other Long-term Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other Assets, Noncurrent [Abstract] | |||
Investment in long-term product supply arrangements | $ 10,532 | $ 9,949 | |
Customer acquisition costs (Notes 2 and 3) | 87,034 | 64,670 | |
Contract assets (Notes 2 and 3) | 21,680 | 0 | |
Deferred sales commissions (Notes 2 and 3) | 8,894 | $ 11,800 | 0 |
Deferred income taxes (Note 2) | 8,436 | 7,698 | |
Other assets (Notes 2 and 3) | 35,311 | 36,299 | |
Other long-term assets | $ 171,887 | $ 118,616 |
Accrued Liabilities (Schedule O
Accrued Liabilities (Schedule Of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | |||
Accrued expenses | $ 61,301 | $ 64,430 | |
Accrued employee compensation and related expenses | 87,184 | 102,944 | |
Accrued taxes | 28,082 | 29,389 | |
Accrued customer incentives and refund obligations (Notes 2 and 3) | 61,864 | 56,655 | |
Total accrued liabilities | $ 238,431 | $ 254,381 | $ 253,418 |
Accrued Liabilities (Schedule_2
Accrued Liabilities (Schedule Of Other Long-term Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | |||
Accrued taxes | $ 63,385 | $ 66,506 | |
Accrued customer incentives (Note 2) | 0 | 12,956 | |
Other accrued long-term expenses | 18,109 | 16,256 | |
Total other long-term liabilities | $ 81,494 | $ 82,840 | $ 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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Shares repurchased in the open market (in shares) | 302 | 312 | 1,284 | 1,398 |
Shares acquired through employee surrender for statutory tax withholding (in shares) | 1 | 2 | 50 | 55 |
Total shares repurchased (in shares) | 303 | 314 | 1,334 | 1,453 |
Cost of shares repurchased in the open market | $ 73,247 | $ 50,413 | $ 265,209 | $ 215,320 |
Cost of shares for employee surrenders | 390 | 370 | 9,110 | 7,829 |
Total cost of shares | $ 73,637 | $ 50,783 | $ 274,319 | $ 223,149 |
Average cost per share - open market repurchases (in dollars per share) | $ 242.78 | $ 161.57 | $ 206.59 | $ 153.99 |
Average cost per share - employee surrenders (in dollars per share) | 253.34 | 155.14 | 181.68 | 142.15 |
Average cost per share - total (in dollars per share) | $ 242.83 | $ 161.52 | $ 205.65 | $ 153.54 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 14.50% | 23.40% | 16.90% | 22.80% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
December 31, 2017 | $ (53,842) |
Other comprehensive income (loss) before reclassifications | (7,653) |
Gains reclassified from accumulated other comprehensive income | 1,936 |
September 30, 2018 | (1,363) |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
December 31, 2017 | (36,470) |
September 30, 2018 | (42,187) |
Unrealized (Loss) Gain on Investments, Net of Tax | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
December 31, 2017 | (22) |
Other comprehensive income (loss) before reclassifications | 187 |
September 30, 2018 | 165 |
Unrealized (Loss) Gain on Derivative Instruments, Net of Tax | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
December 31, 2017 | (5,219) |
Other comprehensive income (loss) before reclassifications | 7,514 |
Gains reclassified from accumulated other comprehensive income | 1,936 |
September 30, 2018 | 4,231 |
Unrealized (Loss) Gain on Net Investment Hedge, Net of Tax | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
December 31, 2017 | (4,311) |
Other comprehensive income (loss) before reclassifications | 2,818 |
September 30, 2018 | (1,493) |
Cumulative Translation Adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
December 31, 2017 | (26,918) |
Other comprehensive income (loss) before reclassifications | (18,172) |
September 30, 2018 | $ (45,090) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | $ 239,805 | $ 217,974 | $ 722,675 | $ 638,029 |
Tax expense (benefits) | 15,825 | 21,535 | 59,327 | 66,392 |
Net income | 93,214 | 70,514 | 291,370 | 224,979 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | Foreign currency exchange contracts | Amount of (loss) gain reclassified from accumulated other comprehensive income into income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of revenue | 256 | (893) | (2,412) | 935 |
Tax expense (benefits) | 153 | (333) | (476) | 348 |
Net income | $ 103 | $ (560) | $ (1,936) | $ 587 |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Shares outstanding for basic earnings per share: | ||||
Shares outstanding for basic earnings per share (in shares) | 86,756 | 87,537 | 87,029 | 87,884 |
Shares outstanding for diluted earnings per share: | ||||
Shares outstanding for basic earnings per share (in shares) | 86,756 | 87,537 | 87,029 | 87,884 |
Dilutive effect of share-based payment awards (in shares) | 1,697 | 1,719 | 1,658 | 1,851 |
Shares outstanding for diluted earnings per share (in shares) | 88,453 | 89,256 | 88,687 | 89,735 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule Of Number Of Anti-Dilutive Stock Options) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average number of shares underlying anti-dilutive shares (in shares) | 15 | 377 | 274 | 310 |
Segment Reporting (Summary Of S
Segment Reporting (Summary Of Segment Performance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 545,448 | $ 491,976 | $ 1,663,856 | $ 1,462,937 |
Income (loss) from operations | 117,350 | 100,413 | 375,988 | 315,220 |
Interest expense, net | (8,311) | (8,364) | (25,291) | (23,849) |
Income before provision for income taxes | 109,039 | 92,049 | 350,697 | 291,371 |
Provision for income taxes | 15,825 | 21,535 | 59,327 | 66,392 |
Net income | 93,214 | 70,514 | 291,370 | 224,979 |
Less: Net (loss) income attributable to noncontrolling interest | (37) | 3 | (23) | 92 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | 93,251 | 70,511 | 291,393 | 224,887 |
CAG | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 478,097 | 426,686 | 1,456,417 | 1,269,861 |
Water | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 33,108 | 31,030 | 94,909 | 85,531 |
LPD | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 29,420 | 28,396 | 96,658 | 91,266 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,823 | 5,864 | 15,872 | 16,279 |
Operating Segments | CAG | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 478,097 | 426,686 | 1,456,417 | 1,269,861 |
Income (loss) from operations | 102,241 | 89,271 | 332,435 | 277,857 |
Operating Segments | Water | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 33,108 | 31,030 | 94,909 | 85,531 |
Income (loss) from operations | 15,874 | 14,505 | 43,458 | 38,421 |
Operating Segments | LPD | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 29,420 | 28,396 | 96,658 | 91,266 |
Income (loss) from operations | 4,007 | 902 | 13,439 | 9,880 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,823 | 5,864 | 15,872 | 16,279 |
Income (loss) from operations | 443 | 2,114 | 2,071 | 3,275 |
Unallocated Amounts | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | $ (5,215) | $ (6,379) | $ (15,415) | $ (14,213) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Estimated fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | $ 601.7 | $ 632 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | $ 602.9 | $ 606.6 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 284,255 | |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 58,510 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 140,886 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 29,171 | |
Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 22,167 | |
U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 15,611 | |
Treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 6,963 | |
Measured At Fair Value On Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 284,255 | |
Measured At Fair Value On Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 284,255 | |
Measured At Fair Value On Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 8,617 | 32,962 |
Measured At Fair Value On Recurring Basis | Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8,617 | 32,962 |
Measured At Fair Value On Recurring Basis | Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Measured At Fair Value On Recurring Basis | Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Measured At Fair Value On Recurring Basis | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,250 | |
Marketable Securities | 58,510 | |
Measured At Fair Value On Recurring Basis | Certificates of deposit | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Certificates of deposit | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,250 | |
Marketable Securities | 58,510 | |
Measured At Fair Value On Recurring Basis | Certificates of deposit | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 140,886 | |
Measured At Fair Value On Recurring Basis | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 140,886 | |
Measured At Fair Value On Recurring Basis | Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 29,171 | |
Measured At Fair Value On Recurring Basis | Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 29,171 | |
Measured At Fair Value On Recurring Basis | Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Asset backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 22,167 | |
Measured At Fair Value On Recurring Basis | Asset backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Asset backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 22,167 | |
Measured At Fair Value On Recurring Basis | Asset backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | U.S. government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 15,611 | |
Measured At Fair Value On Recurring Basis | U.S. government bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | U.S. government bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 15,611 | |
Measured At Fair Value On Recurring Basis | U.S. government bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 10,947 | |
Measured At Fair Value On Recurring Basis | Agency bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Agency bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 10,947 | |
Measured At Fair Value On Recurring Basis | Agency bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 6,963 | |
Measured At Fair Value On Recurring Basis | Treasury bills | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Treasury bills | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 6,963 | |
Measured At Fair Value On Recurring Basis | Treasury bills | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Measured At Fair Value On Recurring Basis | Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | 1,991 | 2,162 |
Measured At Fair Value On Recurring Basis | Equity mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | 1,991 | 2,162 |
Measured At Fair Value On Recurring Basis | Equity mutual funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | 0 | 0 |
Measured At Fair Value On Recurring Basis | Equity mutual funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | 0 | 0 |
Measured At Fair Value On Recurring Basis | Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 148 | |
Measured At Fair Value On Recurring Basis | Cross currency swaps | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Measured At Fair Value On Recurring Basis | Cross currency swaps | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 148 | |
Measured At Fair Value On Recurring Basis | Cross currency swaps | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Measured At Fair Value On Recurring Basis | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5,808 | 477 |
Derivative liabilities | 744 | 6,468 |
Measured At Fair Value On Recurring Basis | Foreign currency exchange contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Measured At Fair Value On Recurring Basis | Foreign currency exchange contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5,808 | 477 |
Derivative liabilities | 744 | 6,468 |
Measured At Fair Value On Recurring Basis | Foreign currency exchange contracts | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Measured At Fair Value On Recurring Basis | Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other liabilities | 1,991 | 2,162 |
Measured At Fair Value On Recurring Basis | Deferred compensation | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other liabilities | 1,991 | 2,162 |
Measured At Fair Value On Recurring Basis | Deferred compensation | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other liabilities | 0 | 0 |
Measured At Fair Value On Recurring Basis | Deferred compensation | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other liabilities | $ 0 | $ 0 |
Hedging Instruments (Narrative)
Hedging Instruments (Narrative) (Details) $ in Thousands | Jun. 30, 2023USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | May 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Jun. 30, 2015EUR (€) |
Derivative [Line Items] | ||||||||
Estimated net amount of gains (losses) expected to be reclassified out of accumulated other comprehensive income and into earnings within next 12 months | $ 3,000 | |||||||
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 | $ 192,500 | $ 192,500 | $ 176,500 | |||||
(Loss) gain from net investment hedge | 555 | $ (2,035) | 2,818 | $ (6,895) | ||||
Series C Senior Note | ||||||||
Derivative [Line Items] | ||||||||
Debt instrument, face amount | € | € 88,900,000 | |||||||
Stated interest rate | 1.785% | |||||||
Derivatives and non-derivatives designated as hedging instruments | Cross currency swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of foreign currency exchange contracts | € | € 50,000,000 | |||||||
(Loss) gain from net investment hedge | (100) | 100 | ||||||
Excluded component recognized as reduction of interest | $ 400 | $ 600 | ||||||
Scenario, Forecast | Derivatives and non-derivatives designated as hedging instruments | Cross currency swaps | ||||||||
Derivative [Line Items] | ||||||||
Proceeds from hedge | $ 59,400 |
Hedging Instruments (Derivative
Hedging Instruments (Derivatives Designated In Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Cost of revenue | $ 239,805 | $ 217,974 | $ 722,675 | $ 638,029 |
Cash flow hedging | Derivatives and non-derivatives designated as hedging instruments | Foreign currency exchange contracts | Costs of revenue | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | $ 256 | $ (893) | $ (2,412) | $ 935 |
Hedging Instruments (Schedule O
Hedging Instruments (Schedule Of Fair Values And Balance Sheet Classifications Of Derivatives Designated As Hedging Instruments) (Details) - Derivatives and non-derivatives designated as hedging instruments - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Hedging assets, gross amounts subject to master netting arrangements not offset on the balance sheet | $ 419 | $ 477 |
Hedging assets, net amount | 5,537 | 0 |
Hedging liabilities, total hedging instruments presented on the balance sheet | 103,605 | 113,035 |
Hedging liabilities, gross amounts subject to master netting arrangements not offset on the balance sheet | 419 | 477 |
Hedging liabilities, net amount | 103,186 | 112,558 |
Cash flow hedging | ||
Derivatives, Fair Value [Line Items] | ||
Hedging assets, total derivative instruments presented as cash flow hedges on the balance sheet | 5,956 | 477 |
Hedging liabilities, total hedging instruments presented on the balance sheet | 744 | 6,468 |
Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Hedging assets, total derivative instruments presented as cash flow hedges on the balance sheet | 4,469 | 477 |
Foreign currency exchange contracts | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Hedging assets, total derivative instruments presented as cash flow hedges on the balance sheet | 1,339 | 0 |
Foreign currency exchange contracts | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Hedging liabilities, total hedging instruments presented on the balance sheet | 681 | 6,468 |
Foreign currency exchange contracts | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Hedging liabilities, total hedging instruments presented on the balance sheet | 63 | 0 |
Cross currency swaps | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Hedging assets, total derivative instruments presented as cash flow hedges on the balance sheet | 148 | 0 |
Foreign currency borrowings designated as net investment hedge on the balance sheet | Long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Hedging liabilities, total hedging instruments presented on the balance sheet | $ 102,861 | $ 106,567 |