Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 02, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-19271 | ||
Entity Registrant Name | IDEXX LABORATORIES INC /DE | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 01-0393723 | ||
Entity Address, Address Line One | One IDEXX Drive | ||
Entity Address, City or Town | Westbrook, | ||
Entity Address, State or Province | ME | ||
Entity Address, Postal Zip Code | 04092 | ||
City Area Code | 207 | ||
Local Phone Number | 556-0300 | ||
Title of 12(b) Security | Common Stock, $0.10 par value per share | ||
Trading Symbol | IDXX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 53,417,914,936 | ||
Entity Common Stock, Shares Outstanding (in shares) | 84,249,085 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part III—Specifically identified portions of the Company’s definitive Proxy Statement to be filed in connection with the Company’s 2022 annual meeting of stockholders (the “2022 Annual Meeting”), to be held on May 11, 2022, are incorporated herein by referenc e. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000874716 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Boston, Massachusetts |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 144,454 | $ 383,928 |
Accounts receivable, net of allowance of $5,668 in 2021 and $6,784 in 2020 | 368,348 | 331,429 |
Inventories | 269,030 | 209,873 |
Other current assets | 173,823 | 137,508 |
Total current assets | 955,655 | 1,062,738 |
Long-Term Assets: | ||
Property and equipment, net | 587,667 | 555,167 |
Operating lease right-of-use assets | 105,101 | 91,171 |
Goodwill | 359,345 | 243,347 |
Intangible assets, net | 99,035 | 52,543 |
Other long-term assets | 330,400 | 289,595 |
Total long-term assets | 1,481,548 | 1,231,823 |
TOTAL ASSETS | 2,437,203 | 2,294,561 |
Current Liabilities: | ||
Accounts payable | 116,140 | 74,558 |
Accrued liabilities | 458,909 | 415,648 |
Line of credit | 73,500 | 0 |
Current portion of long-term debt | 74,996 | 49,988 |
Current portion of deferred revenue | 40,034 | 42,567 |
Total current liabilities | 763,579 | 582,761 |
Long-Term Liabilities: | ||
Deferred income tax liabilities | 8,935 | 11,707 |
Long-term debt, net of current portion | 775,205 | 858,492 |
Long-term deferred revenue, net of current portion | 41,174 | 46,163 |
Long-term operating lease liabilities | 87,377 | 77,039 |
Other long-term liabilities | 70,941 | 85,604 |
Total long-term liabilities | 983,632 | 1,079,005 |
Total liabilities | 1,747,211 | 1,661,766 |
Commitments and Contingencies (Note 16) | ||
Stockholders’ Equity: | ||
Common stock, $0.10 par value: Authorized: 120,000 shares; Issued: 106,878 shares in 2021 and 106,457 shares in 2020; Outstanding: 84,562 shares in 2021 and 85,449 shares in 2020 | 10,688 | 10,646 |
Additional paid-in capital | 1,377,320 | 1,294,849 |
Deferred stock units: Outstanding: 90 units in 2021 and 87 units in 2020 | 5,719 | 4,503 |
Retained earnings | 2,920,440 | 2,175,595 |
Accumulated other comprehensive loss | (53,484) | (53,615) |
Treasury stock, at cost: 22,317 shares in 2021 and 21,008 shares in 2020 | (3,570,691) | (2,799,890) |
Total IDEXX Laboratories, Inc. stockholders’ equity | 689,992 | 632,088 |
Noncontrolling interest | 0 | 707 |
Total stockholders’ equity | 689,992 | 632,795 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,437,203 | $ 2,294,561 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 5,668 | $ 6,784 |
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 106,878,000 | 106,457,000 |
Common stock, shares outstanding (in shares) | 84,562,000 | 85,449,000 |
Deferred stock units, outstanding (in shares) | 90,000 | 87,000 |
Treasury stock, shares (in shares) | 22,317,000 | 21,008,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Total revenue | $ 3,215,360 | $ 2,706,655 | $ 2,406,908 |
Cost of Revenue: | |||
Total cost of revenue | 1,325,928 | 1,135,615 | 1,041,359 |
Gross profit | 1,889,432 | 1,571,040 | 1,365,549 |
Expenses: | |||
Sales and marketing | 486,735 | 434,435 | 418,193 |
General and administrative | 309,660 | 300,832 | 261,317 |
Research and development | 161,009 | 141,249 | 133,193 |
Income from operations | 932,028 | 694,524 | 552,846 |
Interest expense | (29,808) | (33,125) | (31,055) |
Interest income | 434 | 586 | 427 |
Income before provision for income taxes | 902,654 | 661,985 | 522,218 |
Provision for income taxes | 157,810 | 79,854 | 94,426 |
Net income | 744,844 | 582,131 | 427,792 |
Less: Net (loss) income attributable to noncontrolling interest | (1) | 355 | 72 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | $ 744,845 | $ 581,776 | $ 427,720 |
Earnings per Share: | |||
Basic (in USD per share) | $ 8.74 | $ 6.82 | $ 4.97 |
Diluted (in USD per share) | $ 8.60 | $ 6.71 | $ 4.89 |
Weighted Average Shares Outstanding: | |||
Basic (in shares) | 85,200 | 85,342 | 86,115 |
Diluted (in shares) | 86,572 | 86,722 | 87,542 |
Product revenue | |||
Revenue: | |||
Total revenue | $ 1,875,308 | $ 1,586,809 | $ 1,423,144 |
Cost of Revenue: | |||
Total cost of revenue | 656,823 | 557,795 | 506,202 |
Service revenue | |||
Revenue: | |||
Total revenue | 1,340,052 | 1,119,846 | 983,764 |
Cost of Revenue: | |||
Total cost of revenue | $ 669,105 | $ 577,820 | $ 535,157 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 744,844 | $ 582,131 | $ 427,792 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (26,731) | 15,151 | (1,590) |
Unrealized gain (loss) on Euro-denominated notes, net of tax expense (benefit) of $2,011 in 2021, $(2,325) in 2020 and $564 in 2019 | 6,404 | (7,378) | 1,790 |
Unrealized gain (loss) on investments, net of tax expense (benefit) of $46 in 2021, $(120) in 2020 and $84 in 2019 | 146 | (382) | 267 |
Unrealized gain (loss) on derivative instruments: | |||
Unrealized gain (loss) on foreign currency exchange contracts, net of tax expense (benefit) of $2,133 in 2021, $(2,013) in 2020 and $362 in 2019 | 9,139 | (8,527) | 1,196 |
Unrealized gain (loss) on cross currency swaps, net of tax expense of $1,699 in 2021, $(1,774) in 2020 and $664 in 2019 | 5,399 | (5,626) | 2,107 |
Reclassification adjustment for (gain) loss included in net income, net of tax (expense) benefit of $1,347 in 2021, $(158) in 2020 and $(2,467) in 2019 | 5,774 | (671) | (8,161) |
Unrealized gain (loss) on derivative instruments | 20,312 | (14,824) | (4,858) |
Other comprehensive gain (loss), net of tax | 131 | (7,433) | (4,391) |
Comprehensive income | 744,975 | 574,698 | 423,401 |
Less: comprehensive income attributable to noncontrolling interest | (1) | 355 | 72 |
Comprehensive income attributable to IDEXX Laboratories, Inc. | $ 744,976 | $ 574,343 | $ 423,329 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on Euro-denominated notes, tax expense (benefit) | $ 2,011 | $ (2,325) | $ 564 |
Unrealized gain (loss) on investments, tax expense (benefit) | 46 | (120) | 84 |
Unrealized gain (loss) on foreign currency exchange contracts, tax expense (benefit) | 2,133 | (2,013) | 362 |
Unrealized gain (loss) on cross currency swaps, tax expense (benefit) | 1,699 | (1,774) | 664 |
Reclassification adjustment for (gain) loss included in net income, tax (expense) benefit | $ 1,347 | $ (158) | $ (2,467) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Deferred Stock Units | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest |
Balance beginning of period (in shares) at Dec. 31, 2018 | 105,087 | |||||||||
Balance beginning of period at Dec. 31, 2018 | $ (9,233) | $ 10,509 | $ 1,138,216 | $ 4,524 | $ 1,167,928 | $ (41,791) | $ (2,288,899) | $ 280 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 427,792 | 427,720 | 72 | |||||||
Other comprehensive gain (loss), net | (4,391) | (4,391) | ||||||||
Repurchases of common stock, net | (311,644) | (311,644) | ||||||||
Common stock issued under stock plans, net (in shares) | 624 | |||||||||
Common stock issued under stock plans, net | 36,023 | $ 62 | 36,551 | (590) | ||||||
Deferred stock units activity | 0 | (324) | 324 | |||||||
Share-based compensation cost | 39,278 | 39,074 | 204 | |||||||
Balance end of period (in shares) at Dec. 31, 2019 | 105,711 | |||||||||
Balance end of period at Dec. 31, 2019 | 177,825 | $ (1,829) | $ 10,571 | 1,213,517 | 4,462 | 1,595,648 | $ (1,829) | (46,182) | (2,600,543) | 352 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 582,131 | 581,776 | 355 | |||||||
Other comprehensive gain (loss), net | (7,433) | (7,433) | ||||||||
Repurchases of common stock, net | (199,347) | (199,347) | ||||||||
Common stock issued under stock plans, net (in shares) | 746 | |||||||||
Common stock issued under stock plans, net | 50,497 | $ 75 | 51,368 | (946) | ||||||
Deferred stock units activity | 0 | (894) | 894 | |||||||
Share-based compensation cost | $ 30,951 | 30,858 | 93 | |||||||
Balance end of period (in shares) at Dec. 31, 2020 | 106,457 | 106,457 | ||||||||
Balance end of period at Dec. 31, 2020 | $ 632,795 | $ 10,646 | 1,294,849 | 4,503 | 2,175,595 | (53,615) | (2,799,890) | 707 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 744,844 | 744,845 | (1) | |||||||
Other comprehensive gain (loss), net | 131 | 131 | ||||||||
Acquisition of noncontrolling interest (Note 4) | (990) | (284) | (706) | |||||||
Repurchases of common stock, net | (770,801) | (770,801) | ||||||||
Common stock issued under stock plans, net (in shares) | 421 | |||||||||
Common stock issued under stock plans, net | 46,258 | $ 42 | 46,228 | (12) | 0 | |||||
Deferred stock units activity | 0 | (1,035) | 1,035 | |||||||
Share-based compensation cost | $ 37,755 | 37,562 | 193 | |||||||
Balance end of period (in shares) at Dec. 31, 2021 | 106,878 | 106,878 | ||||||||
Balance end of period at Dec. 31, 2021 | $ 689,992 | $ 10,688 | $ 1,377,320 | $ 5,719 | $ 2,920,440 | $ (53,484) | $ (3,570,691) | $ 0 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net income | $ 744,844 | $ 582,131 | $ 427,792 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 104,596 | 95,998 | 88,011 |
Impairment charge | 5,148 | 2,501 | 968 |
Provision for uncollectible accounts | 1,484 | 4,946 | 662 |
Deferred income taxes | (3,377) | (38,082) | 6,162 |
Share-based compensation expense | 37,755 | 30,951 | 39,278 |
Other | 2,619 | 1,379 | 1,254 |
Changes in assets and liabilities: | |||
Accounts receivable | (33,141) | (60,722) | (22,472) |
Inventories | (52,919) | (18,885) | (37,306) |
Accounts payable | 11,233 | 981 | 1,957 |
Deferred revenue | (7,551) | (13,373) | (12,360) |
Other assets and liabilities | (55,145) | 60,238 | (34,788) |
Net cash provided by operating activities | 755,546 | 648,063 | 459,158 |
Cash Flows from Investing Activities: | |||
Purchases of property and equipment | (119,549) | (106,958) | (154,969) |
Acquisitions of intangible assets and equity investments | 0 | (918) | (255) |
Acquisitions of businesses, net of cash acquired | (173,418) | (1,500) | (50,304) |
Net cash used by investing activities | (292,967) | (109,376) | (205,528) |
Cash Flows from Financing Activities: | |||
Borrowings (repayments) on revolving credit facilities, net | 73,500 | (289,625) | (110,275) |
Issuance of senior notes | 0 | 200,000 | 100,000 |
Payments of senior notes | (50,000) | 0 | 0 |
Debt issuance costs | (2,650) | (5,025) | (154) |
Purchase of minority interest | (990) | 0 | 0 |
Repurchases of common stock, net | (746,777) | (182,815) | (301,658) |
Proceeds from exercises of stock options and employee stock purchase plans | 46,565 | 51,328 | 36,106 |
Payment of acquisition-related contingent consideration and holdbacks | (1,500) | (1,676) | (2,375) |
Shares withheld for statutory tax withholding payments on restricted stock | (15,562) | (20,603) | (8,053) |
Net cash used by financing activities | (697,414) | (248,416) | (286,409) |
Net effect of changes in exchange rates on cash | (4,639) | 3,331 | (689) |
Net (decrease) increase in cash and cash equivalents | (239,474) | 293,602 | (33,468) |
Cash and cash equivalents at beginning of period | 383,928 | 90,326 | 123,794 |
Cash and cash equivalents at end of period | $ 144,454 | $ 383,928 | $ 90,326 |
Nature of Business, Basis of Pr
Nature of Business, Basis of Presentation and Principles of Consolidation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature Of Business, Basis Of Presentation And Principles Of Consolidation | NATURE OF BUSINESS, BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements of IDEXX Laboratories, Inc. and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the requirements of Regulation S-X. These statements include the accounts of IDEXX Laboratories, Inc., and our wholly-owned and majority-owned subsidiaries (“IDEXX,” the “Company,” “we,” or “our”). 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. We have included certain terms and abbreviations used throughout this Annual Report on Form 10-K in the “Glossary of Terms and Selected Abbreviations.” We develop, manufacture, and distribute products and provide services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing industries. We also sell human medical point-of-care products and laboratory diagnostics. Our principal line of business, which we refer to as our Companion Animal Group (“CAG”) operating segment, provides diagnostic capabilities and information management solutions for the companion animal veterinary industry, as well as the biomedical research community. Our principal regions for these products and services are the United States (“U.S.”), Europe, Japan, China, and Australia, but we also sell to customers and distributors in many other countries around the world. Our Water operating segment provides innovative testing solutions for the quality and safety of water principally in the U.S. and Europe, but we also sell to customers in many other countries around the world. Our Livestock, Poultry and Dairy (“LPD”) operating segment provides diagnostic tests and related instrumentation and performs services that are used to manage the health status of livestock and poultry, to improve producer efficiency, and to ensure the quality and safety of milk. Our principal regions for these products and services are Europe, China, and Australia, but we also sell to customers in many other countries around the world. We also operate a smaller operating segment that is comprised of our human medical diagnostic products and services business (“OPTI Medical”). Financial information about our OPTI Medical operating segment is combined and presented with our out-licensing arrangements remaining from our pharmaceutical business in an “Other” category because they do not meet the quantitative or qualitative thresholds for reportable segments. Refer to "Note 3. Revenue Recognition" for additional information regarding disaggregated revenue by segment, major product and service categories, and geographical areas. Refer to "Note 17. Segment Reporting" for additional information regarding our reportable operating segments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Estimates The preparation of these consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate these estimates, including those related to reserves for accounts receivable; goodwill and other intangible assets; income taxes; inventory valuation; revenue recognition, product returns, customer programs, and multiple element arrangements; share-based compensation; warranty reserves; self-insurance reserves; fair value measurements and loss contingencies. We accrue contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from these estimates. ( b ) Cash and Cash Equivalents We consider all highly liquid investments with original maturities of ninety days or less to be cash equivalents. Cash and cash equivalents consist primarily of demand deposits, money market funds, and short-duration agency bonds and commercial paper as described above. There is no restricted cash on our consolidated balance sheets for the years ended December 31, 2021 and 2020. (c) Inventories – Refer to Note 7 (d) Property and Equipment – Refer to Note 9 (e) Goodwill and Other Intangible Assets – Refer to Note 11 (f) Warranty Reserves We provide a standard twelve-month warranty on all instruments sold. We recognize the cost of instrument warranties in cost of product revenue at the time revenue is recognized based on the estimated cost to repair the instrument over its warranty period. Cost of product revenue reflects not only estimated warranty expense for instruments sold in the current period, but also any changes in estimated warranty expense for the portion of the aggregate installed base that is under warranty. Estimated warranty expense is based on a variety of inputs, including historical instrument performance in the customers’ environments, historical and estimated costs incurred in servicing instruments and projected instrument reliability. Should actual service rates or costs differ from our estimates, revisions to the estimated warranty liability would be required. The liability for warranties is included in accrued liabilities in the accompanying consolidated balance sheets. The amount of warranty reserve during the years ended December 31, 2021 and 2020, was not material. (g) Income Taxes – Refer to Note 14 (h) Taxes Remitted to Governmental Authorities by IDEXX on Behalf of Customer We calculate, collect from our customers, and remit to governmental authorities, sales, value-added, and excise taxes assessed by governmental authorities in connection with revenue-producing transactions with our customers. We report these taxes on a net basis and do not include these tax amounts in revenue or cost of product or service revenue. (i) Revenue Recognition – Refer to Note 3 (j) Research and Development Costs Research and development costs, which consist of employee compensation and benefits, materials and external consulting, and product development costs, are expensed as incurred. We evaluate our research and development costs for capitalization after the technological feasibility has been established for software and products containing software to be sold; however, no costs were capitalized during the years ended December 31, 2021, 2020, and 2019. Software developed to deliver hosted services to our customers has been designated as internal use, and we capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Refer to "Note 9. Property and Equipment, Net" for further information on internal use software. (k) Advertising Costs Advertising costs, which are recognized as sales and marketing expense in the period in which they are incurred, were $3.3 million, $1.4 million, and $1.5 million for the years ended December 31, 2021, 2020, and 2019, respectively. (l) Legal Costs Legal costs are considered period costs and, accordingly, are expensed in the year services are provided. (m) Share-Based Compensation – Refer to Note 5 (n) Self-Insurance Accruals – Refer to Note 16 (o) Leases – Refer to Note 8 (p) Earnings per Share – Refer to Note 15 (q) Foreign Currency The functional currency of all except eight of our subsidiaries is their local currency, however, the assets and liabilities of the majority of our foreign subsidiaries are translated to the U.S. dollar using the exchange rate in effect at the balance sheet date. Revenue and expense accounts are translated to the U.S. dollar using the exchange rate at the date which those elements are recognized, and where it is impractical to do so, an average exchange rate in effect during the period is used to translate those elements. Cumulative translation gains and losses are shown in the accompanying consolidated balance sheets as a separate component of accumulated other comprehensive income (“AOCI”). Revenues and expenses denominated in a currency other than the respective subsidiary’s functional currency are recorded at the current exchange rate when the transaction is recognized. Monetary assets and liabilities denominated in a currency other than the respective subsidiary’s functional currency are remeasured at each balance sheet date using the exchange rate in effect at each balance sheet date. These foreign currency gains and losses are included in general and administrative expenses within our Other segment. We recognized aggregate foreign currency losses of $2.1 million, gains of $0.6 million, and losses of $1.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. (r) Hedging Instruments – Refer to Note 19 (s) Fair Value Measurements – Refer to Note 18 (t) Comprehensive Income We report all changes in equity, including net income and transactions or other events and circumstances from non-owner sources during the period in which they are recognized. We have chosen to present comprehensive income, which encompasses net income, foreign currency translation adjustments, gains and losses on our net investment hedges and the difference between the cost and the fair market value of investments in debt and equity securities, and forward currency exchange contracts, in the consolidated statements of comprehensive income. Refer to "Note 21. Accumulated Other Comprehensive Income" for information about the effects on net income of significant amounts reclassified out of each component of AOCI for the years ended December 31, 2021, 2020, and 2019. (u) Concentrations of Risk Financial Instruments . Financial instruments that potentially subject us to concentrations of credit risk are principally cash, cash equivalents, accounts receivable, and derivatives. To mitigate such risk with respect to cash and cash equivalents, we place our cash with highly-rated financial institutions, in non-interest bearing accounts that are insured by the U.S. government and money market funds invested in government securities. Concentration of credit risk with respect to accounts receivable is limited to certain customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our most significant customers and monitor the amounts owed to us, taking appropriate action when necessary. As a result, we believe that accounts receivable credit risk exposure is limited. We maintain an allowance for doubtful accounts, but historically have not experienced any material losses related to an individual customer or group of customers in any particular industry or geographic area. To mitigate concentration of credit risk with respect to derivatives we enter into transactions with highly-rated financial institutions, enter into master netting arrangements with counterparties to our derivative transactions and frequently monitor the creditworthiness of our counterparties. Our master netting arrangements reduce our exposure in that they permit outstanding receivables and payables with the counterparties to our derivative transactions to be offset in the event of default. We have not incurred such losses and consider the risk of counterparty default to be minimal. Inventory . If we are unable to obtain adequate quantities of the inventory we need to sell our products, we could face cost increases or delays or discontinuations in product shipments, which could have a material adverse effect on our results of operations. Many of the third parties that provide us with the instruments we sell, as well as certain components, raw materials and consumables used in or with our products, are sole or single-source suppliers. Some of the products that we purchase from these sources are proprietary or complex in nature, and, therefore, cannot be readily or easily replaced by alternative sources. (v) New Accounting Pronouncements Adopted We adopted ASU 2016-02, "Leases (Topic 842)," as of January 1, 2019, using the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. We adopted ASU 2018-13, "Fair Value Measurement (Topic 820)," as of January 1, 2020, which modifies the disclosure requirements on fair value measurements under ASC Topic No. 820, Fair Value Measurement, as amended (“ASC 820”). ASU 2018-13 removes (a) the prior requirement to disclose the amount and reason for transfers between Level 1 and Level 2 of the fair value hierarchy contained in ASC 820, (b) the policy for timing of transfers between levels, and (c) the valuation processes used for Level 3 fair value measurements. ASU 2018-13 also adds, among other things, a requirement to disclose the range and weighted average of significant unobservable inputs used in Level 3 fair value measurements. The adoption did not have a material impact on our consolidated financial statements. We adopted ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” effective January 1, 2020, using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables and leased equipment. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We recorded a non-cash cumulative effect adjustment to retained earnings of $1.8 million, net of $0.6 million of income taxes, on our opening consolidated balance sheet as of January 1, 2020. This adjustment, before the impact of income taxes, was comprised of $2.3 million related to our contract assets and sales-type leases, and $0.2 million related to accounts receivable. Refer to "Note 6. Credit Losses" for more information on our presentation of credit losses. Effective January 1, 2021, we adopted ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new guidance is intended to simplify the accounting for income taxes by removing certain exceptions and by updating accounting requirements around goodwill recognized for tax purposes and the allocation of current and deferred tax expense among legal entities, among other minor changes. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. In July 2021, the FASB issued ASU 2021-05, “Leases (Topic 842); Lessors - Certain Leases with Variable Lease Payments.” ASU 2021-05 requires a lessor to classify a lease with variable payments that do not depend on an index or rate as an operating lease if another lease classification (i.e., sales-type or direct financing) would result in recognition of a day-one loss. We have elected to adopt this standard as of the third quarter of 2021, on a prospective basis. The adoption of ASU 2021-05 did not have a material impact on our consolidated financial statements. (w) New Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities.” ASU 2021-08 is intended to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination by providing consistent recognition guidance. This standard is effective for fiscal years beginning after December 15, 2022. Adoption of the ASU 2021-08 should be applied prospectively. Early adoption is permitted, including in an interim period, for any period for which financial statements have not yet been issued. We are currently evaluating the impact, if any, of ASU 2021-08 on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 is intended to provide optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The FASB also issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope," in January 2021. It clarifies that certain optional expedients and exceptions apply to derivatives that are affected by the discounting transition. The amendments in this ASU affect the guidance in ASU No. 2020-04 and are effective in the same timeframe as ASU 2020-04. The relief offered by this guidance, if adopted, is available to companies for the period March 12, 2020 through December 31, 2022. Our Credit Facility includes a provision for the determination of a benchmark replacement rate as a successor to the LIBOR rate, therefore; we do not expect the discontinuation of LIBOR to have an impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Our 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 accurately present the consideration received in exchange for promised products or services, we apply the 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, lease receivables, and 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 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 predominantly 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. We also provide customers with certain consumables that are recognized upon utilization by the customer, which is when we have the right to payment and the risks and rewards of ownership transfer. 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. Laboratory Diagnostic and Consulting Services . Laboratory diagnostic and consulting services 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 . Revenues from instrument rental agreements and reagent rental programs are recognized either as operating leases on a ratable basis over the term of the agreement or as sales-type leases at the time of installation and customer acceptance. Customers typically pay for the right to use instruments under rental agreements in equal monthly amounts over the term of the rental agreement. Our reagent rental programs provide our customers the right to use our instruments upon entering into agreements to purchase specified amounts of consumables, which are considered embedded leases. For some agreements, the customers are provided with the right to purchase the instrument at the end of the lease term. Lease revenues from these agreements are presented in product revenue on our consolidated income statement. Lease revenue was approximately $20.8 million for the year ended December 31, 2021, as compared to $17.5 million for the year ended December 31, 2020, including both operating leases and sales-type leases under ASC 842, Leases, for leases entered into after January 1, 2019, and ASC 840, Leases, for leases entered into prior to 2019. Refer to below for revenue recognition under our 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 one five years 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. On December 31, 2020, our deferred revenue related to extended warranties and post-contract support was $35.1 million, of which approximately $23.1 million was recognized during the year ended December 31, 2021. Furthermore, as a result of new agreements, our deferred revenue related to extended warranties and post-contract support was $30.0 million at December 31, 2021. 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. Deferred revenue related to extended warranties and post-contract support with an original duration of more than one year was $16.0 million at December 31, 2021, of which approximately 49%, 29%, 14%, 5%, and 3% are expected to be recognized during 2022, 2023, 2024, 2025, 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 ezyVet, Animana, Neo, Cornerstone Cloud, Pet Health Network Pro, Petly Plans, Web PACS, rVetLink, and SmartFlow. 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 two 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 with multiple performance obligations 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 total 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 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 their 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 current and long-term 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. To the extent invoiced instrument revenue exceeds recognized instrument revenue, we record deferred revenue as a contract liability, which is subsequently recognized upon the purchase of products and services over the term of the contract. We have determined these agreements do not include a significant financing component. Differences between estimated and actual customer purchases may impact the timing and amount of revenue recognition. On December 31, 2020, our capitalized customer acquisition costs were $148.1 million, of which approximately $43.6 million was recognized as a reduction of revenue during the year ended December 31, 2021. Furthermore, as a result of new up-front customer loyalty payments, net of subsequent recognition, our capitalized customer acquisition costs were $158.3 million at December 31, 2021. 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 years ended December 31, 2021 and 2020, were not material. Volume Commitment Programs . Our volume commitment programs, such as our IDEXX 360 program, 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 at the time of installation and customer acceptance in advance of billing the customer, 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 products and services over the term of the contract. We have determined these agreements do not include a significant financing component. Differences between estimated and actual customer purchases may impact the timing and amount of revenue recognition. On December 31, 2020, our volume commitment contract assets were $115.5 million, of which approximately $26.3 million was reclassified to accounts receivable when customers were billed for related products and services during the year ended December 31, 2021. Furthermore, as a result of new placements under volume commitment programs, net of subsequent amounts reclassified to accounts receivable, and allowances established for credit losses, our contract assets were $159.9 million at December 31, 2021. 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 years ended December 31, 2021 and 2020, 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 $2.9 billion, of which approximately 25%, 24%, 20%, 15%, and 16% are expected to be recognized during 2022, 2023, 2024, 2025, 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 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 the customer’s right to earn rebates on future purchases, which is deferred and recognized upon the purchase of future products and services, partly offsetting future rebates as they are earned. On December 31, 2020, our deferred revenue related to instrument rebate programs was $39.3 million, of which approximately $14.3 million was recognized when customers purchased eligible products and services and earned rebates during the year ended December 31, 2021. Furthermore, as a result of new instrument purchases under rebate programs, net of subsequent recognition, our deferred revenue was $33.0 million at December 31, 2021, of which approximately 36%, 26%, 17%, 11%, and 10% are expected to be recognized during 2022, 2023, 2024, 2025, 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 lease for the right to use our instrument and we determine the amount of lease revenue allocated to the instrument based on relative standalone selling prices. We evaluate the terms of these embedded leases to determine classification as either a sales-type lease or an operating lease. Sales-type Reagent Rental Programs . Our reagent rental programs that effectively transfer control of instruments to our customers are classified as sales-type leases and we recognize instrument revenue and cost in advance of billing the customer, at the time of installation and customer acceptance. Our right to future consideration related to instrument revenue is recorded as a lease receivable within other current and long-term assets, and is transferred to accounts receivable when customers are billed for products and services over the term of the contract. On December 31, 2020, our lease receivable assets were $11.1 million, of which approximately $2.2 million was reclassified to accounts receivable when customers were billed for related products and services during the year ended December 31, 2021. Furthermore, as a result of new placements under sales-type reagent rental programs, net of subsequent amounts reclassified to accounts receivable, and allowances established for credit losses, our lease receivable assets were $15.3 million at December 31, 2021. The impacts of discounting and unearned income at December 31, 2021, were not material. Profit and loss recognized at the commencement date and interest income during the year ended December 31, 2021, were not material. We monitor customer purchases over the term of their agreement to assess the realizability of our lease receivable assets. Impairments during the year ended December 31, 2021, were not material. Operating-type Reagent Rental Programs . Our reagent rental programs that do not effectively transfer control of instruments to our customers are classified as operating leases and we recognize instrument revenue and costs ratably over the term of the agreement. The cost of the instrument is capitalized within property and equipment. We estimate future revenue to be recognized related to our reagent rental programs of approximately $38.3 million, of which approximately 32%, 26%, 20%, 14%, and 8% are expected to be recognized during 2022, 2023, 2024, 2025, and thereafter, respectively. These future revenues relate to 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 years ended December 31, 2021 and 2020, 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 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. 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 have no significant customers that accounted for greater than 10% of our consolidated revenues and we have no concentration of credit risk as of December 31, 2021. Disaggregated Revenues . We present disaggregated revenue for our CAG segment based on major product and service categories. Our Water segment is comprised of a single major product category. Although our LPD segment does not meet the quantitative requirements to be reported as a separate segment, we believe it is important to disaggregate these revenues as a major product and service category separately from our Other reportable segment given its distinct markets, and therefore we have elected to report LPD as a reportable segment. The following table presents disaggregated revenue by major product and service categories: (in thousands) For the Years Ended December 31, 2021 2020 2019 CAG segment revenue: CAG Diagnostics recurring revenue: $ 2,534,562 $ 2,113,839 $ 1,828,329 IDEXX VetLab consumables 1,006,781 824,376 693,360 Rapid assay products 296,852 253,018 232,149 Reference laboratory diagnostic and consulting services 1,123,656 946,268 822,497 CAG Diagnostics services and accessories 107,273 90,177 80,323 CAG Diagnostics capital - instruments 149,140 108,950 132,685 Veterinary software, services and diagnostic imaging systems 206,258 162,976 158,169 CAG segment revenue 2,889,960 2,385,765 2,119,183 Water segment revenue 146,505 128,625 132,850 LPD segment revenue 135,887 145,845 132,635 Other segment revenue 43,008 46,420 22,240 Total revenue $ 3,215,360 $ 2,706,655 $ 2,406,908 Revenue by principal geographic area, based on customers’ domiciles, was as follows: (in thousands) For the Years Ended December 31, 2021 2020 2019 Americas United States $ 1,995,683 $ 1,691,224 $ 1,495,516 Canada 139,727 107,398 99,550 Latin America & Caribbean 66,623 51,863 56,515 2,202,033 1,850,485 1,651,581 Europe, the Middle East and Africa Germany 146,762 119,353 104,081 United Kingdom 114,955 90,156 90,969 France 90,836 74,814 64,767 Italy 52,062 42,817 39,725 Spain 48,169 39,265 36,439 Switzerland 31,984 24,850 20,855 Netherlands 29,656 23,461 19,397 Other 167,525 148,049 122,206 681,949 562,765 498,439 Asia Pacific Region Australia 94,414 79,629 71,069 Japan 84,275 74,725 67,246 China 63,166 70,845 57,518 Other 89,523 68,206 61,055 331,378 293,405 256,888 Total $ 3,215,360 $ 2,706,655 $ 2,406,908 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, and 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 consolidated statements of income. Deferred commission costs are periodically reviewed for impairment. On December 31, 2020, our deferred commission costs, included within other assets, were $17.5 million, of which approximately $5.7 million of commission expense was recognized during the year ended December 31, 2021. Furthermore, as a result of commissions related to new extended warranties and SaaS subscriptions, net of subsequent recognition, our deferred commission costs were $19.5 million at December 31, 2021. Impairments of deferred commission costs during the years ended December 31, 2021 and 2020, were not material. |
Acquisitions and Investments
Acquisitions and Investments | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Investments | ACQUISITIONS AND INVESTMENTS We believe that our acquisitions of businesses and other assets enhance our existing businesses by either expanding our geographic range, customer base, or existing product and service lines. From time to time, we may acquire small reference laboratories or radiology practices that we account for as either asset purchases or business combinations. During the fourth quarter of 2021, we acquired the shares of a reference laboratory located in Finland for approximately $13.4 million in cash, including a holdback of approximately $1.4 million. This acquisition expands our international reference laboratory presence and was accounted for as a business combination. The fair values of the assets acquired consist of customer relationship intangibles of approximately $7.4 million, with a life of 10 years; a non-compete agreement of approximately $0.8 million, with a life of 3 years; approximately $5.3 million of goodwill, representing synergies within our broader CAG portfolio; and approximately $0.1 million in net tangible liabilities. The purchase price allocation is subject to revision as additional information becomes available regarding review of taxes and the settlement of the working capital adjustment. Goodwill related to this acquisition is not expected to be deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our CAG segment since the acquisition date. The acquisition expenses were not material. During the third quarter of 2021, we acquired the assets of a teleradiology business for approximately $5.4 million, including a contingent payment of $0.3 million. This acquisition expands our current teleradiology capability. The acquired assets primarily consist of a customer relationship intangible of approximately $1.7 million, with a weighted average life of 10 years , and approximately $3.7 million in goodwill. Goodwill related to this acquisition is expected to be deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our CAG segment since the acquisition date. The acquisition expenses were not material. During the second quarter of 2021, we acquired the assets of the ezyVet cloud-based veterinary software businesses and the shares of ezyVet US, Inc., as well as the Vet Radar business assets, for approximately $157.2 million, including an estimated contingent payment of $5.0 million. The acquired assets include the ezyVet cloud-native practice management system software and the Vet Radar cloud-based workflow management software. The acquisition expands our cloud-based software offerings to support our customers with technology solutions that raise the standards of care for patients and improve practice efficiency. The fair values of assets acquired were as follow: approximately $32.0 million in customer-related intangible with a weighted average life of 10 years; approximately $8.4 million in technology-related intangibles with a weighted average life of 6 years; approximately $2.4 million in trademarks with a weighted average life of 14 years; approximately $1.8 million in non-compete agreements with a weighted average life of 5 years; approximately $109.4 million in goodwill, r epresenting synergies within our broader CAG portfolio; and approximately $3.2 million in net tangible assets. Goodwill has been allocated to multiple reporting units based upon the fair value of projected earnings as of the date of the acquisition. The goodwill was allocated as follows: approximately $23.4 million to IDEXX VetLab®, approximately $27.0 million to Reference Laboratories, approximately $11.1 million to Rapid Assay, and approximately $47.9 million to Veterinary Software Services. Goodwill related to this acquisition is expected to be deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our CAG segment since the acquisition date. During the fourth quarter, we increased the contingent payable by $2.0 million, for a total expected payment of $7.0 million. This increase to the contingent payment is expensed as the adjustment was made after the measurement period. The acquisition expenses were approximately $2.2 million. During the first quarter of 2021, we acquired the shares of a reference laboratory located in Switzerland for approximately $5.5 million in cash, including holdback and contingent payments of approximately $1.1 million. This acquisition expands our international reference laboratory presence and was accounted for as a business combination. The fair values of the assets acquired consist of approximately $4.3 million in intangible assets, primarily for customer relationships, which will be amortized over 9 years, approximately $1.8 million for goodwill, representing synergies within our broader CAG portfolio, and approximately $0.6 million of liabilities, including deferred taxes associated with the acquired intangible assets. Goodwill related to this acquisition is not deductible for tax purposes. Pro forma information has not been presented for this acquisition because such information is not material to the financial statements. The results of operations have been included in our CAG segment since the acquisition date. The acquisition expenses were not material. During the fourth quarter of 2019 we acquired the assets of a multi-site reference laboratory business in the mid-west of the U.S. for $50.0 million in cash. This acquisition expands our national reference laboratory presence in the U.S., and was accounted for as a business combination. We finalized the valuation of the fair value of the assets acquired during the first quarter of 2020. The fair value of the assets acquired consists of $26.9 million in intangible assets, primarily for customer relationships, with a weighted average life of 13.8 years, $0.2 million of tangible assets, and $22.9 million of goodwill, representing synergies within our reference laboratory portfolio. 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 the financial statements. The results of operations have been included in our CAG segment since the acquisition date. The acquisition expenses incurred were not material. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We provide for various forms of share-based compensation awards to our employees and non-employee directors. Our share-based compensation plans allow for the issuance of a mix of stock options, restricted stock, stock appreciation rights, employee stock purchase rights, and other stock unit awards. With the exception of stock options, the fair value of our awards is equal to the closing stock price of IDEXX common stock on the date of grant. We calculate the fair value of our stock option awards using the Black-Scholes-Merton option-pricing model. For stock options, restricted stock units (“RSUs”), and deferred stock units (“DSUs”), share-based compensation expense is recognized net of estimated forfeitures, on a straight-line basis over the requisite service period of the award for stock options. For performance-based restricted stock units (“PBRSUs”), share-based compensation expense is recognized net of estimated forfeitures, on a grade-vesting methodology over the requisite service period. Stock options permit a holder to buy IDEXX stock upon vesting at the stock option exercise price set on the day of grant. An RSU is an agreement to issue shares of IDEXX stock at the time of vesting. A PBRSU is an agreement to issue shares of IDEXX stock at the time of vesting upon successful completion of certain performance goals. DSUs are granted under our Executive Deferred Compensation Plan (the “Executive Plan”) and non-employee Director Deferred Compensation Plan (the “Director Plan”). DSUs may or may not have vesting conditions depending on the plan under which they are issued. We did not issue any restricted stock or stock appreciation rights during the years ended December 31, 2021, 2020, and 2019, nor were any restricted stock or stock appreciation rights outstanding as of those years ended. We primarily issue shares of common stock to satisfy stock option exercises and employee stock purchase rights and to settle RSUs, PBRSUs, and DSUs. We issue shares of treasury stock to settle certain RSUs and upon the exercise of certain stock options, which were not material for the years ended December 31, 2021, 2020, and 2019. The number of shares of common stock and treasury stock issued are equivalent to the number of awards exercised or settled. With the exception of employee stock purchase rights, equity awards are issued to employees and non-employee di rectors under the 2018 Stock Incentive Plan (the "2018 Stock Plan"). Our Board of Directors has authorized the issuance of 7.5 million shar es of our common stock under the 2018 Stock Plan. Any shares that are subject to awards of stock options or stock appreciation rights will be counted against the share limit as one share for every share granted. Any shares that are issued other than stock options and stock appreciation rights will be counted against the share limit as 2.4 shares for every share granted. If any shares issued under our prior plans are forfeited, settled for cash, or expire, these shares, to the extent of such forfeiture, cash settlement, or expiration, will again be available for issuance under the 2018 Stock Plan. As of December 31, 2021, there were approximately 6.5 million remaining shares available for issuance under the 2018 Stock Plan. Share-Based Compensation Share-based compensation costs are classified in the consolidated financial statements consistent with the classification of cash compensation paid to the employees receiving such share-based compensation. The following is a summary of share-based compensation costs and related tax benefits recorded in our consolidated statements of income: (in thousands) For the Years Ended December 31, 2021 2020 2019 Share-based compensation expense included in cost of revenue $ 4,044 $ 3,415 $ 2,681 Share-based compensation expense included in operating expenses 33,711 27,536 36,597 Total share-based compensation expense included in consolidated statements of income 37,755 30,951 39,278 Income tax benefit resulting from share-based compensation expense (4,734) (3,965) (4,861) Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards 33,021 26,986 34,417 Income tax benefit resulting from settlement of share-based awards (32,474) (38,981) (19,140) Net expense (benefit) related to share-based compensation arrangements included in consolidated statements of income $ 547 $ (11,995) $ 15,277 In the fourth quarter of 2019, we entered into a mutual separation agreement with our former CEO, pursuant to which Mr. Ayers’s outstanding stock options were modified, resulting in a share-based compensation expense of approximately $10.9 million, primarily representing an acceleration of the cost of the equity awards. This expense was partially offset by a reduction to our provision for income taxes of approximately $0.8 million. Other than the modification to Mr. Ayers's stock options, as described above, there were no other material modifications to the terms of outstanding options, RSUs, PBRSUs, or DSUs during the years ended December 31, 2021, 2020, or 2019. Share-based compensation expense is reduced for an estimate of the number of awards that are expected to be forfeited. We use historical data and other factors to estimate expected employee terminations and to evaluate whether particular groups of employees have significantly different forfeiture expectations. The total unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards at December 31, 2021, was $64.1 million, which will be recognized over a weighted average period of approximately 1.3 years. Stock Options Prior to December 4, 2019, all options granted to employees primarily vest ratably over five years on each anniversary of the date of grant. Options granted to non-employee directors vest fully on the first anniversary of the date of grant. Employee grants after December 4, 2019 vest ratably over four years. Vesting of option awards issued is conditional based on continuous service. Options granted after May 8, 2013 have a contractual term of ten years and options granted between January 1, 2006 and May 8, 2013 had contractual terms of seven years. Upon any change in control of the company, 25% of the unvested stock options then outstanding will vest and become exercisable. However, if the acquiring entity does not assume outstanding options, then all options will vest immediately prior to the change in control. We use the Black-Scholes-Merton option-pricing model to determine the fair value of options granted. Option-pricing models require the input of highly subjective assumptions, particularly for the expected stock price volatility and the expected term of options. Changes in the subjective input assumptions can affect the fair value estimate. Our expected stock price volatility assumptions are based on the historical volatility of our stock over periods that are similar to the expected terms of grants and other relevant factors. We derive the expected term based on historical experience and other relevant factors concerning expected employee behavior with regard to option exercise. The risk-free interest rate is based on U.S. Treasury yields for a maturity approximating the expected term calculated at the date of grant. We have never paid any cash dividends on our common stock and we have no intention to pay a dividend at this time; therefore, we assume that no dividends will be paid over the expected terms of option awards. 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 those grant dates. As such, we may use different assumptions for options granted throughout the year. 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 Years Ended December 31, 2021 2020 2019 Share price at grant $ 546.36 $ 291.14 $ 218.66 Share exercise price $ 550.10 $ 291.14 $ 220.88 Expected stock price volatility 30 % 27 % 26 % Expected term, in years 6.2 6.0 6.0 Risk-free interest rate 0.7 % 1.4 % 2.4 % Weighted average fair value of options granted $ 169.15 $ 84.92 $ 65.53 A summary of the status of options granted under our share-based compensation plans at December 31, 2021, and changes during the year then ended, are presented in the table below: Number of Options (000) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding as of December 31, 2020 1,953 $ 149.32 Granted 144 $ 550.10 Exercised (310) $ 102.78 Forfeited (30) $ 261.95 Outstanding as of December 31, 2021 1,757 $ 188.47 5.8 $ 825,745 Fully vested as of December 31, 2021 1,109 $ 127.30 4.8 $ 588,831 Fully vested and expected to vest as of December 31, 2021 1,738 $ 186.72 5.7 $ 819,777 The total fair value of options vested were $17.3 million, $14.6 million, and $12.2 million during the years ended December 31, 2021, 2020, and 2019, respectively . Intrinsic value of stock options exercised represents the amount by which the market price of the common stock exceeded the exercise price, before applicable income taxes. The total intrinsic values of stock options exercised were $147.9 million, $163.0 million, and $83.7 million during the years ended December 31, 2021, 2020, and 2019, respectively. Restricted Stock Units Prior to December 4, 2019, the majority of RSUs, including our PBRSUs, granted to employees vest ratably over five years on each anniversary of the date of grant. Employee grants after December 4, 2019, will vest ratably over 4 years. PBRSUs granted to employees vest based on meeting performance goals set on the day of grant. RSUs granted to non-employee directors vest fully on the first anniversary of the date of grant. Vesting as it relates to RSUs and PBRSUs issued is conditional based on continuous service. Upon any change in control of the company, 25% of the unvested RSUs and PBRSUs then outstanding will vest, provided, however, that if the acquiring entity does not assume the RSUs and PBRSUs, then all such units will vest immediately prior to the change in control. At time of grant, we assume all PBRSUs will meet performance goals to vest. A summary of the status of RSUs and PBRSUs granted under our share-based compensation plans at December 31, 2021, and changes during the period then ended, are presented in the table below: Number of Units (000) Weighted Average Grant-Date Fair Value Nonvested as of December 31, 2020 218 $ 202.47 Granted 44 Vested (85) Forfeited (12) Nonvested as of December 31, 2021 165 $ 306.18 Expected to vest as of December 31, 2021 156 $ 303.00 The total fair values of RSUs and PBRSUs vested were $46.1 million, $27.9 million, and $23.8 million during the years ended December 31, 2021, 2020, and 2019, respectively. The aggregate intrinsic value of nonvested RSUs and PBRSUs as of December 31, 2021, which is equal to the fair value of IDEXX’s common stock as of December 31, 2021, multiplied by the number of nonvested units as of December 31, 2021, was $108.8 million. Deferred Stock Units Under our Director Plan, non-employee directors may defer a portion of their cash fees in the form of vested DSUs. Prior to 2014, certain members of our management could elect to defer a portion of their cash compensation in the form of vested deferred stock units under our Executive Plan. Each DSU represents the right to receive one unissued share of our common stock. These recipients receive a number of DSUs equal to the amount of cash fees or compensation deferred divided by the closing sale price of the common stock on the date of deferral. Also, under the Director Plan, non-employee directors are awarded annual grants of either RSUs or DSUs that vest fully on the first anniversary of the date of grant. Vesting for these annual RSU and DSU grants is conditional based on continuous service. Vested DSUs are distributed as shares of common stock on the distribution date elected by the participant and pursuant to the terms of the Director or Executive Plan, as applicable. There were approximately 90,000 and 87,000 vested DSUs outstanding under our share-based compensation plans as of December 31, 2021 and 2020, respectively. During 2020, approximately 59,000 DSUs were distributed as shares of common stock to our former CEO in accordance with the terms of the Executive Plan and the deferral elections he previously made. Unvested DSUs as of December 31, 2021 and 2020, were not material. Employee Stock Purchase Rights Employee stock purchase rights are issued under the 1997 Employee Stock Purchase Plan, under which we reserved and may issue up to an aggregate of 4.7 million shares of common stock in periodic offerings. Under this plan, stock is sold to employees at a 15% discount off the closing price of the stock on the last day of each quarter. The dollar value of this discount is equal to the fair value of purchase rights recognized as share-based compensation. We issued approximately 29,500, 39,000, and 47,000 shares of common stock in connection with the Employee Stock Purchase Plan during the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021, there were approximately 1.1 million remaining shares available for issuance under the 1997 Employee Stock Purchase Plan. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Credit Losses | CREDIT LOSSESWe are exposed to credit losses primarily through our sales of products and services to our customers. We maintain allowances for credit losses 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. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current economic conditions. Refer to "Note 2. Accounting Policies" for more information on our adoption of ASU 2016-13 on January 1, 2020, using the modified retrospective transition method. Additional allowances may be required if either the financial condition of our customers was 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. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliations, dispute resolution, and payment confirmations. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We may require collateralized asset support or a prepayment to mitigate credit risk. We do not have any off-balance sheet credit exposure related to our customers. Accounts Receivable The allowance for credit losses associated with accounts receivable was $5.7 million and $6.8 million at December 31, 2021, and December 31, 2020, respectively. Accounts receivable reflected on the balance sheet is net of this reserve. Based on an aging analysis, at December 31, 2021, approximately 90% of our accounts receivable had not yet reached the invoice due date and approximately 10% was considered past due, of which approximately 1.8% was greater than 60 days past due. At December 31, 2020, approximately 88% of our accounts receivable had not yet reached the invoice due date and approximately 12% was considered past due, of which approximately 1.5% was greater than 60 days past due. Write-offs and recoveries related to credit losses during the years ended December 31, 2021, 2020, and 2019 were not material. Contract assets and lease receivables The allowance for credit losses associated with the contract assets and lease receivables was $4.4 million and $3.7 million at December 31, 2021 and 2020, respectively. The assets reflected on the balance sheet are net of these reserves. Historically, we have experienced low credit loss rates on our customer commitment programs and lease receivables. 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. Write-offs and recoveries related to credit losses during the years ended December 31, 2021, 2020, and 2019 were not material. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
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 price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We write down the carrying value of inventory for estimated obsolescence by an amount equal to the difference between the cost of inventory and the estimated market value when warranted based on assumptions of future demand, market conditions, remaining shelf life, or product functionality. If actual market conditions or results of estimated functionality are less favorable than those we estimated, additional inventory write-downs may be required, which would have a negative effect on results of operations. Unpaid inventory reflected within accounts payable in our consolidated balance sheets was $64.4 million, $45.6 million, and $39.5 million at December 31, 2021, 2020, and 2019, respectively. Instrument inventory transferred to property and equipment related to rental and operating-type reagent rental programs was $11.6 million, $9.6 million, $14.5 million during the years ended December 31, 2021, 2020, and 2019, respectively. The components of inventories are as follows: (in thousands) December 31, 2021 December 31, 2020 Raw materials $ 60,427 $ 45,986 Work-in-process 26,397 20,374 Finished goods 182,206 143,513 Inventories $ 269,030 $ 209,873 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES The majority of our facilities are occupied under operating lease arrangements with various expiration dates through 2067, some of which include options to extend the life of the lease, and some of which include options to terminate the lease within 1 year. In certain instances, we are responsible for the real estate taxes and operating expenses related to these facilities. Additionally, we enter into operating leases for certain vehicles and office equipment in the normal course of business. We determine the expected term of any executed agreements using the non-cancelable lease term plus any renewal options by which the failure to renew imposes a penalty in such amount that renewal is reasonably assured. The derived expected term is then used in the determination of a financing or operating lease and in the calculation of straight-line rent expense. Rent escalations are considered in the calculation of minimum lease payments in our capital lease tests and in determining straight-line rent expense for operating leases. Minimum lease payments include the fixed lease component of the agreement, as well as fixed rate increases that are initially measured at the lease commencement date. Variable lease payments based on an index and payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. Consideration is allocated to the lease and non-lease components based on the estimated standalone prices. We determine if an arrangement is a lease at its inception. Operating leases are included in operating lease right-of-use assets, accrued liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Our financing leases are not material to the financial statements. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an explicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Rent expense for lease payments is recognized on a straight-line basis over the lease term. The operating lease right-of-use assets also includes any rent prepayments, lease incentives upon receipt, and straight-line rent expense impacts, which represent the differences between our operating lease liabilities and right-of-use assets. Maturities of operating lease liabilities are as follows: (in thousands) December 31, 2021 2022 $ 22,402 2023 21,122 2024 16,523 2025 12,675 2026 10,437 Thereafter 39,047 Total lease payments 122,206 Less imputed interest (14,898) Total lease liability (current and long-term) $ 107,308 Total minimum future lease payments of approximately $1.6 million for leases that have not commenced as of December 31, 2021, are not included in the consolidated financial statements, as we do not yet control the underlying assets. These leases are expected to commence during 2022 through 2024 with lease terms of approximately 3 to 5.25 years. December 31, 2021 December 31, 2020 Weighted average remaining lease term - operating leases 9.4 years 10.3 years Weighted average discount rate - operating leases 2.5 % 2.9 % Expenses incurred related to operating leases, excluding variable and short-term leases, were approximately $23.0 million and $21.7 million during the year ended December 31, 2021 and 2020, respectively. Total expenses incurred related to operating leases, including variable rent and short-term leases, were approximately $25.5 million and $24.5 million for the years ended December 31, 2021 and 2020, respectively. Supplemental cash flow information for leases is as follows: For the Years Ended (in thousands) 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 24,214 $ 19,619 Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations $ 37,572 $ 26,807 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET Property and equipment are stated at cost, net of accumulated depreciation and amortization. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. When an item is sold or retired, the cost and related accumulated depreciation are relieved, and the resulting gain or loss, if any, is recognized in the consolidated statements of income. We evaluate our property and equipment for impairment periodically or as changes in circumstances or the occurrence of events suggest the remaining value is not recoverable from future cash flows. If the carrying value of our property and equipment is impaired, an impairment charge is recorded for the amount by which the carrying value of the property and equipment exceeds its fair value. We provide for depreciation and amortization primarily using the straight-line method by charges to the consolidated statements of income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Land improvements 15 to 20 years Buildings and improvements 10 to 40 years Leasehold improvements Shorter of remaining lease term or useful life of improvements Machinery and equipment 3 to 8 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 7 years We capitalize interest on the acquisition and construction of significant assets that require a substantial period of time to be made ready for use. The capitalized interest is included in the cost of the completed asset and depreciated over the asset’s estimated useful life. The amount of interest capitalized during the years ended December 31, 2021 and 2020, was not material. We capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Qualifying costs incurred during the application development stage, which consist primarily of internal payroll and direct fringe benefits and external direct project costs, including labor and travel, are capitalized and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the preliminary project and post-implementation and operation phases are expensed as incurred. These costs relate primarily to the determination of performance requirements, data conversion, and training. Software developed to deliver hosted services to our customers has been designated as internal use. Property and equipment, net, consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Land and improvements $ 22,642 $ 13,982 Buildings and improvements 329,091 319,384 Leasehold improvements 93,248 82,459 Machinery and equipment 382,753 353,301 Office furniture and equipment 69,090 67,527 Computer hardware and software 276,895 265,664 Construction in progress 62,339 39,764 1,236,058 1,142,081 Less accumulated depreciation and amortization 648,391 586,914 Total property and equipment, net $ 587,667 $ 555,167 Below are the amounts of depreciation and amortization of property and equipment, capitalized computer software for internal use, unpaid property and equipment reflected in accounts payable and accrued expenses, and rental and reagent rental program instruments transferred from inventory to property and equipment: For the Years Ended December 31, (in thousands) 2021 2020 2019 Depreciation and amortization expense $ 92,376 $ 86,095 $ 78,495 Capitalized computer software developed for internal use $ 14,753 $ 18,472 $ 20,130 Unpaid property and equipment, reflected in accounts payable and accrued liabilities $ 19,326 $ 13,343 $ 24,688 Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment (Note 3) $ 11,628 $ 9,645 $ 14,498 We had impairments of $5.1 million for the year ended December 31, 2021, associated with a write-down of rental assets in certain regions. |
Other Current and Long-Term Ass
Other Current and Long-Term Assets | 12 Months Ended |
Dec. 31, 2021 | |
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) December 31, 2021 December 31, 2020 Customer acquisition costs $ 48,942 $ 43,751 Prepaid expenses 41,997 34,556 Contract assets, net (1) 37,772 23,837 Taxes receivable 19,464 19,476 Deferred sales commissions 6,475 5,738 Other 19,173 10,150 Other current assets $ 173,823 $ 137,508 (1) Contract assets, net, are net of allowances for credit loss. Refer to "Note 6. Credit Losses." Other long-term assets consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Contract assets, net (1) $ 122,160 $ 91,681 Customer acquisition costs 109,392 104,369 Deferred income taxes 24,784 31,549 Investment in long-term product supply arrangements 13,348 12,065 Deferred sales commissions 13,019 11,719 Taxes receivable 1,806 6,329 Other 45,891 31,883 Other long-term assets $ 330,400 $ 289,595 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET A significant portion of the purchase price for acquired businesses is generally assigned to intangible assets. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the identical asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to IDEXX. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require significant assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When significant, we utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be separately identified and recognized. Our business combinations regularly include contingent consideration arrangements that require additional consideration to be paid based on the achievement of established objectives, most commonly related to customer retention or revenue growth of the customer base during the post-combination period. We assess contingent consideration to determine if it should be recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved, with changes in fair value recognized in earnings if changes in estimates are made after the measurement period. During the fourth quarter of 2021, we increased the fair value of the contingent payment to ezyVet by $2.0 million. Changes in the fair value of contingent consideration and differences arising upon settlement were not material during the years ended December 31, 2020, and 2019. We assess goodwill for impairment annually, at the reporting unit level, in the fourth quarter and whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50%. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would assess the fair value of all of our reporting units and compare the fair value of the reporting unit to its carrying value to determine if the carrying value exceeds its fair value, and if a goodwill impairment loss should be recognized. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to assessing the fair value of all of our reporting units and compare the fair value of the reporting unit to carrying value to determine if any impairment exists. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. In the fourth quarter of 2021, we elected to bypass the qualitative approach that allows the assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and instead proceeded directly to assessing the fair value of all of our reporting units and comparing the fair values of each reporting unit to the carrying values to determine if any impairment exists. We estimate the fair values of applicable reporting units using an income approach based on discounted forecasted cash flows. We make significant assumptions about the extent and timing of future cash flows, growth rates and discount rates. Model assumptions are based on our projections and best estimates, using appropriate and customary market participant assumptions. In addition, we make certain assumptions in allocating shared assets and liabilities to individual reporting units in determining the carrying value of each reporting unit. Changes in forecasted cash flows or the discount rate would affect the estimated fair values of our reporting units and could result in a goodwill impairment loss in a future period. No goodwill impairments were identified during the years ended December 31, 2021, 2020, or 2019, and no accumulated impairment losses are recorded. We assess the realizability of intangible assets other than goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If an impairment review is triggered, we evaluate the carrying value of intangible assets based on estimated undiscounted future cash flows over the remaining useful life of the primary asset of the asset group and compare that value to the carrying value of the asset group. The asset group is the lowest level for which identifiable cash flows associated with the intangible asset are largely independent. The cash flows that are used contain our best estimates, using appropriate and customary assumptions and projections at the time. If the net carrying value of an intangible asset exceeds the related estimated undiscounted future cash flows, an impairment loss to adjust the intangible asset to its fair value would be reported as a non-cash charge to earnings. If necessary, we would calculate the fair value of an intangible asset using the present value of the estimated future cash flows to be generated by the intangible asset, and applying a risk-adjusted discount rate. We had no impairments of our intangible assets during the years ended December 31, 2021 and 2019. The amount of impairment for the year ended December 31, 2020 was immaterial. The changes in the carrying amount of goodwill for the years ended December 31, 2021, 2020, and 2019, were as follows: (in thousands) CAG Water LPD Other Consolidated Total Balance as of December 31, 2018 $ 182,386 $ 11,221 $ 14,351 $ 6,531 $ 214,489 Business combinations 24,826 — — — 24,826 Impact of changes in foreign currency exchange rates 138 390 (119) — 409 Balance as of December 31, 2019 $ 207,350 $ 11,611 $ 14,232 $ 6,531 $ 239,724 Business combinations 220 — — — 220 Acquisition adjustment (1,900) — — — (1,900) Impact of changes in foreign currency exchange rates 4,724 412 167 — 5,303 Balance as of December 31, 2020 $ 210,394 $ 12,023 $ 14,399 $ 6,531 $ 243,347 Business combinations 120,346 — — — 120,346 Impact of changes in foreign currency exchange rates (3,569) (84) (695) — (4,348) Balance as of December 31, 2021 $ 327,171 $ 11,939 $ 13,704 $ 6,531 $ 359,345 Refer to "Note 4. Acquisitions and Investments" for information regarding goodwill and other intangible assets recognized in connection with the acquisition of businesses and other assets during the years ended December 31, 2021, 2020, and 2019. We provide for amortization primarily using the straight-line method by charges to income in amounts that allocate the intangible assets over their estimated useful lives as follows: Asset Classification Estimated Useful Life Customer-related intangible assets (1) 3 to 17 years Product rights (2) 5 to 15 years Noncompete agreements 3 to 5 years Intangible assets other than goodwill consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Customer-related intangible assets (1) $ 121,936 $ 38,349 $ 83,587 $ 80,810 $ 32,838 $ 47,972 Product rights (2) 17,350 5,332 12,018 15,150 11,609 3,541 Noncompete agreements 4,257 827 3,430 1,250 220 1,030 $ 143,543 $ 44,508 $ 99,035 $ 97,210 $ 44,667 $ 52,543 The above table excludes fully amortized intangible assets for the periods presented. (1) Customer-related intangible assets are comprised of customer lists and customer relationships acquired from third parties. (2) Product rights comprise certain technologies, intellectual property, licenses, and trade names acquired from third parties. Amortization expense of intangible assets other than goodwill was $12.1 million, $9.8 million, and $9.4 million for the years ended December 31, 2021, 2020, and 2019, respectively. At December 31, 2021, the aggregate amortization expense associated with intangible assets is estimated to be as follows for each of the next five years and thereafter: (in thousands) Amortization Expense 2022 $ 14,188 2023 12,430 2024 11,381 2025 10,633 2026 10,370 Thereafter 40,033 $ 99,035 |
Accrued Liabilities and Other L
Accrued Liabilities and Other Long Term Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities and Other Long Term Liabilities | ACCRUED LIABILITIES AND OTHER LONG-TERM LIABILITIES Accrued liabilities consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Accrued employee compensation and related expenses $ 182,926 $ 167,649 Accrued expenses 133,978 112,526 Accrued customer incentives and refund obligations 79,469 75,064 Accrued taxes 42,605 42,676 Current lease liabilities 19,931 17,733 Accrued liabilities $ 458,909 $ 415,648 Other long-term liabilities consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Accrued taxes $ 56,466 $ 60,313 Other accrued long-term expenses 14,475 25,291 Other long-term liabilities $ 70,941 $ 85,604 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instruments [Abstract] | |
Debt | DEBT Credit Facility On December 9, 2021, we, along with IDEXX Distribution, Inc., IDEXX Operations, Inc., OPTI Medical Systems, Inc., IDEXX Laboratories Canada Corporation, IDEXX B.V., IDEXX Laboratories B.V., and IDEXX Laboratories GmbH, our wholly-owned subsidiaries (whether directly or indirectly held) (collectively, the “Borrowers”), entered into a fourth amended and restated credit agreement (the “Credit Agreement”) relating to a five year unsecured revolving credit facility in the principal amount of $1 billion, among the Borrowers, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Toronto agent, and the other parties thereto. The Credit Agreement amends and restates that certain third amended and restated credit agreement, dated as of April 14, 2020, (which provided for a $1 billion three-year unsecured revolving credit facility) to extend the maturity to December 9, 2026 with aggregate commitments available for borrowing by the Borrowers of $1 billion with the option to increase the aggregate commitments by $250 million, for an aggregate maximum of up to $1.25 billion, subject to the Borrowers obtaining commitments from existing or new lenders and satisfying other conditions specified in the Credit Agreement. Under our Credit Facility prior to the December 9, 2021 amendment, the applicable interest rates on borrowings are based on the prevailing LIBOR, Canadian Dollar Rate, or EURIBOR, but not less than 1.0%, plus a credit spread ranging from 1.375% to 2.00%, based on our gross leverage ratio. The Credit Facility also allowed for borrowings based on the prevailing Prime rate, but not less than 2.00%, plus a credit spread from 0.375% to 1.00%. Under the Credit Facility, we also pay quarterly commitment fees ranging from 0.2% to 0.375%, based on our leverage ratio, on any unused commitment. Under our current amended Credit Facility, the applicable interest rates on borrowings are based on the prevailing LIBOR, Canadian Dollar Rate, or EURIBOR, but not less than 0.0%, plus a credit spread ranging from 0.875% to 1.375%, depending on our gross leverage ratio. The Credit Facility also allowed for borrowings based on the prevailing Prime rate, but not less than 1.00%, plus a credit spread from 0.0% to 0.375%. Under the current Credit Facility, we also pay quarterly commitment fees ranging from 0.075% to 0.25%, based on our leverage ratio, on any unused commitment. Our Credit Facility includes a provision for the determination of one or more benchmark replacement rates (including SOFR) as a successor to the LIBOR rate. At December 31, 2021, we had $73.5 million outstanding borrowings under our Credit Facility with a weighted average effective interest rate of 1.1%. Our weighted average borrowing rate for the year ended December 31, 2021, was 2.7%, which reflected borrowings under our prior Credit Facility. At December 31, 2020, we had no outstanding borrowings under our Credit Facility. The funds available under the Credit Facility reflect a further reduction due to the issuance of letters of credit, which were issued in connection with our workers’ compensation policy, for $1.4 million in the year ended December 31, 2021 and 2020. Although the Credit Facility does not mature until December 9, 2026, all individual borrowings under the terms of the Credit Facility with an interest rate based on the prevailing LIBOR, Canadian Dollar Rate, or EURIBOR (as selected by the Borrower) have a stated term between 1 and 180 days. At the end of each term, the obligation is either repaid or rolled over into a new borrowing, or replaced by a borrowing based on a specific benchmark rate (where interest is then paid monthly). The Credit Facility contains a subjective material adverse event notification clause, which allows the debt holders to call the loans under the Credit Facility if we fail to provide prompt written notice to the syndicate of such an event. Based on the stated term and the existence of the subjective material adverse event clause, this Credit Facility is reflected in the current liabilities section of our consolidated balance sheets. The obligations under the Credit Facility may be accelerated upon the occurrence of an event of default under the Credit Facility, which includes customary events of default including payment defaults, defaults in the performance of the affirmative, negative and financial covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, defaults relating to judgments, certain events related to employee pension benefit plans under the Employee Retirement Income Security Act of 1974, the failure to pay specified indebtedness, cross-acceleration to specified indebtedness, and a change of control default. The Credit Facility contains affirmative, negative, and financial covenants customary for financings of this type. The negative covenants include restrictions on liens, indebtedness of subsidiaries of the Company, fundamental changes, investments, transactions with affiliates, and certain restrictive agreements. The sole financial covenant is a consolidated leverage ratio test that requires our ratio of debt to earnings before interest, taxes, depreciation, amortization, and share-based compensation defined as the consolidated leverage ratio under the terms of the Credit Facility, not to exceed 3.5-to-1. At December 31, 2021, we were in compliance with the covenants of the Credit Facility. Senior Notes The following describes all of our currently outstanding unsecured senior notes issued and sold in private placements (collectively, the "Senior Notes") as of December 31, 2021: (Principal Amount in thousands) Issue Date Due Date Series Principal Amount Coupon Rate Senior Note Agreement 12/11/2013 12/11/2023 2023 Series A Notes $ 75,000 3.94 % NY Life 2013 Note Agreement 12/11/2013 12/11/2025 2025 Series B Notes $ 75,000 4.04 % NY Life 2013 Note Agreement 9/4/2014 9/4/2026 2026 Senior Notes $ 75,000 3.72 % NY Life 2014 Note Agreement 7/21/2014 7/21/2024 2024 Series B Notes $ 75,000 3.76 % Prudential 2015 Amended Agreement 6/18/2015 6/18/2025 2025 Series C Notes € 88,857 1.785 % Prudential 2015 Amended Agreement 2/12/2015 2/12/2022 2022 Series A Notes $ 75,000 3.25 % MetLife 2014 Note Agreement 2/12/2015 2/12/2027 2027 Series B Notes $ 75,000 3.72 % MetLife 2014 Note Agreement 3/14/2019 3/14/2029 2029 Series C Notes $ 100,000 4.19 % MetLife 2014 Note Agreement 4/2/2020 4/2/2030 MetLife 2030 Series D Notes $ 125,000 2.50 % MetLife 2014 Note Agreement 4/14/2020 4/14/2030 Prudential 2030 Series D Notes $ 75,000 2.50 % Prudential 2015 Amended Agreement The following narrative represents our Senior Note activity: NY Life 2013 and 2014 Note Agreements, Including Amendments In December 2013, we issued and sold through a private placement an aggregate principal amount of $150 million of unsecured senior notes consisting of $75 million of 3.94% Series A Senior Notes due December 11, 2023 (the “2023 Series A Notes”) and $75 million of 4.04% Series B Senior Notes due December 11, 2025 (the “2025 Series B Notes”) under a Note Purchase Agreement among the Company, New York Life Insurance Company and the accredited institutional purchasers named therein (as amended on April 10, 2020, the “NY Life 2013 Note Agreement”). In September 2014, we issued and sold through a private placement an aggregate principal amount of $75 million of unsecured 3.72% senior notes due September 4, 2026 (the “2026 Senior Notes”) under a Note Purchase Agreement dated as of July 22, 2014, among the Company, New York Life Insurance Company and the accredited institutional purchasers named therein (as amended April 10, 2020, the “NY Life 2014 Note Agreement”). On April 10, 2020, we amended the NY Life 2013 Note Agreement and the NY Life 2014 Note Agreement by entering into two Amendments to Note Purchase Agreement with New York Life Insurance Company and the other parties thereto, which modified several defined terms, schedules and covenant baskets in the NY Life 2013 Agreement and the NY Life 2014 Note Agreement to create additional operating flexibility, and in particular to align such provisions with similar modifications we made substantially concurrently in our other debt facilities. Prudential 2015 Amended Agreement, Including Amendments In July 2014, we issued and sold through a private placement an aggregate principal amount of $125 million of unsecured senior notes consisting of $50 million of 3.32% Series A Senior Notes due July 21, 2021 (the “2021 Series A Notes”) and $75 million of 3.76% Series B Senior Notes due July 21, 2024 (the “2024 Series B Notes”) under a Note Purchase and Private Shelf Agreement among the Company, Prudential Investment Management, Inc. (“Prudential”) and the accredited institutional purchasers named therein (the “Prudential 2014 Note Agreement”). The $50 million 3.32% Series A Senior Note was repaid in full on the July 21, 2021 due date. In June 2015, we entered into an Amended and Restated Multi-Currency Note Purchase and Private Shelf Agreement (the “Original Prudential 2015 Amended Agreement"), among the Company, Prudential, and the accredited institutional purchasers named therein, which amends and restates the Prudential 2014 Note Agreement. Pursuant to the Original Prudential 2015 Amended Agreement, we issued and sold through an aggregated private placement an aggregate principal amount of €88.9 million of unsecured 1.785% Series C Senior Notes due June 18, 2025 (the “2025 Series C Notes”). On May 9, 2019, we entered into the Amendment to Note Purchase and Private Shelf Agreement (the "Prudential First Amendment") with Prudential and the other parties thereto, which amended certain reporting provisions in the Original Prudential 2015 Amended Agreement. On April 10, 2020, we entered into the Second Amendment to the Prudential 2015 Amended Agreement (the “Prudential Second Amendment”), in order to (i) increase the facility size to $425 million, (ii) extend the facility issuance period to April 10, 2023, (iii) make various implementing and administrative changes in order to facilitate a $75 million notes issuance on April 14, 2020, (iv) allow the amount available to be issued under the facility to equal $425 million less the amount of notes outstanding from time to time during the issuance period and (v) modify several defined terms, schedules and covenant baskets in the Original Prudential 2015 Amended Agreement, as amended by the Prudential First Amendment, to create additional operating flexibility, and in particular to align such provisions with similar modifications we made substantially concurrently in our other debt facilities. We refer to the Original Prudential 2015 Agreement, as amended by the Prudential First Amendment and the Prudential Second Amendment, as the "Prudential 2015 Amended Agreement." On April 14, 2020, we issued and sold to Prudential and other purchasers $75 million of our unsecured senior notes (the “Prudential 2030 Series D Notes”) pursuant to the Prudential Second Amendment. The entire outstanding balance of the Prudential 2030 Series D Notes is due and payable on April 14, 2030, and the Prudential 2030 Series D Notes bear interest at the rate of 2.50% per annum. We used the proceeds received from the Prudential 2030 Series D Notes for general corporate purposes. MetLife 2014 Note Agreement, Including Amendments We entered into a Multicurrency Note Purchase and Private Shelf Agreement, dated as of December 19, 2014 (the "Original MetLife 2014 Note Agreement"), among the Company, Metropolitan Life Insurance Company (“MetLife”) and the accredited institutional purchasers named therein pursuant to which we agreed to issue and sell an aggregate principal amount of $150 million of unsecured senior notes consisting of $75 million of our 3.25% Series A Senior Notes having a seven-year term (the "2022 Series A Notes"), and $75 million of our 3.72% Series B Senior Notes having a twelve-year term ("2027 Series B Notes"). The issuance, sale and purchase of these notes occurred in February 2015. The aggregate principal amount of our 2022 Series A Notes for $75.0 million will become due and payable on February 12, 2022. On March 14, 2019, we amended the Original MetLife 2014 Note Agreement. Pursuant to the Original MetLife 2014 Note Agreement, as so amended, we issued and sold through a private placement an aggregate principal amount of $100 million of unsecured senior notes at a 4.19% per annum rate, due March 14, 2029 (the "2029 Series C Notes"). On March 23, 2020, we entered into the Second Amendment to the Original MetLife 2014 Note Agreement (the “MetLife Second Amendment”), in order to (i) increase the facility size from $150 million to $300 million, (ii) extend the facility issuance period to December 20, 2022, (iii) make various implementing and administrative changes in order to facilitate a $125 million notes issuance on April 2, 2020 and (iv) allow the amount available to be issued under the facility to equal $300 million, less the amounts outstanding on 2029 Series C Notes and MetLife 2030 Series D Notes. On April 2, 2020, we issued and sold to MetLife and other purchasers $125 million of our unsecured senior notes (the “MetLife 2030 Series D Notes”) pursuant to the MetLife Second Amendment. The entire outstanding principal balance of the MetLife 2030 Series D Notes is due and payable on April 2, 2030, and the MetLife 2030 Series D Notes bear interest at the rate of 2.50% per annum. We used the proceeds received from the MetLife 2030 Series D Notes for general corporate purposes. We refer to the Original MetLife 2014 Agreement, as so amended, as the "MetLife 2014 Agreement," and together with the NY Life 2013 Note Agreement, NY Life 2014 Note Agreement, and Prudential 2015 Amended Note Agreement, collectively, as the "Senior Note Agreements." Senior Note Agreements The Senior Note Agreements contain affirmative, negative, and financial covenants customary for agreements of this type. The negative covenants include restrictions on liens, indebtedness of our subsidiaries, priority indebtedness, fundamental changes, investments, transactions with affiliates, certain restrictive agreements, and violations of laws and regulations. The sole financial covenant is a consolidated leverage ratio test that requires our ratio of debt to earnings before interest, taxes, depreciation, amortization, and share-based compensation, as defined in the Senior Note Agreements, not to exceed 3.5-to-1. At December 31, 2021, we were in compliance with the covenants of the Senior Note Agreements. Should we elect to prepay the Senior Notes, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Senior Note Agreements. Additionally, in the event of a change in control of the Company or upon the disposition of certain assets of the Company the proceeds of which are not reinvested (as defined in the Senior Note Agreements), we may be required to prepay all or a portion of the Senior Notes. The obligations under the Senior Notes may be accelerated upon the occurrence of an event of default under the applicable Senior Note Agreement, each of which includes customary events of default including payment defaults, defaults in the performance of the affirmative, negative and financial covenants, the inaccuracy of representations or warranties, bankruptcy and insolvency related defaults, defaults relating to judgments, certain events related to employee pension benefit plans under the Employee Retirement Income Security Act of 1974, the failure to pay specified indebtedness and cross-acceleration to specified indebtedness. We used the net proceeds from the issuances and sale of the Senior Notes for general corporate purposes. Annual principal payments on long-term debt at December 31, 2021, are as follows: (in thousands) Years Ending December 31, Amount 2022 $ 75,000 2023 75,000 2024 75,000 2025 175,711 2026 75,000 Thereafter 375,000 $ 850,711 Total interest paid on all debt (including our Credit Facility) for the years ended December 31, 2021, 2020, and 2019, was $30.5 million, $32.4 million, and $29.7 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. In assessing the need for a valuation allowance, we consider future taxable income and ongoing prudent and feasible tax planning strategies. In the event that we determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, a reduction to the deferred tax asset would be charged to income in the period such determination was made. We record a liability for uncertain tax positions that do not meet the more likely than not standard as prescribed by the authoritative guidance for income tax accounting. We record tax benefits for only those positions that we believe will more likely than not be sustained. Unrecognized tax benefits are the differences between tax positions taken, or expected to be taken, in tax returns, and the benefits recognized for accounting purposes. We classify uncertain tax positions as long-term liabilities. Significant judgment is required in determining our worldwide provision for income taxes and our income tax filings are regularly under audit by tax authorities. Any audit result differing from amounts recorded would increase or decrease income in the period that we determine such adjustment is likely. Interest expense and penalties associated with the underpayment of income taxes are included in income tax expense. Earnings before income taxes were as follows: (in thousands) For the Years Ended December 31, 2021 2020 2019 Domestic $ 689,994 $ 483,694 $ 377,964 International 212,660 178,291 144,254 $ 902,654 $ 661,985 $ 522,218 The provision (benefit) for income taxes comprised the following: (in thousands) For the Years Ended December 31, 2021 2020 2019 Current Federal $ 112,811 $ 72,921 $ 52,194 State 19,147 17,346 11,967 International 29,288 26,301 24,239 161,246 116,568 88,400 Deferred Federal (7,019) (14,126) 4,826 State (503) (2,863) 269 International 4,086 (19,725) 931 (3,436) (36,714) 6,026 $ 157,810 $ 79,854 $ 94,426 The provision for income taxes differs from the amounts computed by applying the statutory federal income tax rate as follows: For the Years Ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 2.1 2.4 2.3 Taxation on international earnings (0.8) (1.0) (1.1) Foreign derived intangible income (1.2) (1.1) (1.1) Share-based compensation from settlements (3.6) (5.9) (3.6) Research and development credit (0.7) (0.8) (0.8) Impact of Switzerland tax reform — (3.3) — Other, net 0.7 0.8 1.4 Effective tax rate 17.5 % 12.1 % 18.1 % Our effective income tax rate was 17.5% for the year ended December 31, 2021, and 12.1% for the year ended December 31, 2020. Our effective income tax rate for the year ended December 31, 2021, was higher primarily due to the prior year one-time positive impact related to the enactment of tax reform in Switzerland due to recording a deferred tax asset related to the transitional benefits, as well as higher tax benefits in the prior year related to share-based compensation. Our effective income tax rate was 12.1% for the year ended December 31, 2020, and 18.1% for the year ended December 31, 2019. Our effective income tax rate for the year ended December 31, 2020, was lower primarily due to the one-time positive impact related to the enactment of tax reform in Switzerland due to recording a deferred tax asset related to the transitional benefits, as well as higher tax benefits related to share-based compensation. Income taxes paid, net of refunds received, for the periods ended December 31, 2021, 2020, and 2019, were $161.7 million, $110.7 million, and $88.0 million, respectively. We have received a tax ruling from the Netherlands that documents our mutual understanding of how existing tax laws apply to our circumstances. Primarily as a result of this tax ruling, our net income was higher by $21.4 million, $14.2 million, and $13.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. The benefits from our tax rulings are reflected within the overall benefits received from taxation on international earnings in the table above. On December 21, 2021, the Netherlands adopted legislation eliminating the tax benefits related to this tax ruling for tax years beginning after December 31, 2021. The components of the net deferred tax assets (liabilities) included in the accompanying consolidated balance sheets are as follows: (in thousands) December 31, 2021 December 31, 2020 Assets Accrued expenses $ 48,433 $ 46,830 Accounts receivable reserves 2,131 2,505 Deferred revenue 6,269 7,629 Inventory basis differences 6,553 4,272 Property-based differences 16,132 14,865 Intangible asset basis differences 46,606 51,319 Share-based compensation 10,740 10,011 Other 1,163 1,484 Net operating loss carryforwards 8,570 5,427 Tax credit carryforwards 13,483 13,385 Unrealized losses on foreign currency exchange contracts and investments 1,755 5,060 Total assets 161,835 162,787 Valuation allowance (39,280) (40,262) Total assets, net of valuation allowance 122,555 122,525 Liabilities Customer acquisition costs (37,265) (34,449) Property-based differences (42,363) (49,547) Intangible asset basis differences (17,345) (16,134) Other (5,662) (2,241) Unrealized gains on foreign currency exchange contracts and investments (4,071) (312) Total liabilities (106,706) (102,683) Net deferred tax assets $ 15,849 $ 19,842 As of December 31, 2021, we record valuation allowances against certain deferred tax assets related to temporary differences, including intangible asset basis differences and net operating loss (“NOL”) and tax credit carryforwards, as it is more likely than not that they will not be realized or utilized within the carryforward period. The following table summarizes the changes in valuation allowance for deferred tax assets: (in thousands) For the Years Ended December 31, 2021 2020 2019 Balance at beginning of year $ 40,262 $ 9,454 $ 6,212 Charges to costs and expense 1,464 31,076 3,489 Write-off/cash payments (1,182) (34) (226) Foreign currency translation (1,264) (234) (21) Balance at the end of the year $ 39,280 $ 40,262 $ 9,454 As of December 31, 2021, we have NOLs in certain state and international jurisdictions of approximately $32.9 million available to offset future taxable income. Most of these NOLs will expire at various dates between 2022 and 2028 and the remainder have indefinite lives. The following table summarizes the changes in unrecognized tax positions: (in thousands) For the Years Ended December 31, 2021 2020 2019 Total amounts of unrecognized tax benefits, beginning of period $ 22,484 $ 26,841 $ 24,247 Gross increases (decreases) in unrecognized tax positions as a result of tax positions taken during a prior period 443 (1,755) (276) Gross increases in unrecognized tax positions as a result of tax positions taken in the current period 2,414 4,199 4,083 Decreases in unrecognized tax positions related to settlements with taxing authorities (537) (6,446) — Decreases in unrecognized tax positions as a result of a lapse of the applicable statutes of limitations (3,015) (355) (1,213) Total amounts of unrecognized tax benefits, end of period $ 21,789 $ 22,484 $ 26,841 Of the total unrecognized tax benefits at December 31, 2021 and 2020, $22.2 million and $21.8 million, respectively, comprise unrecognized tax positions that would, if recognized, affect our effective tax rate. During the years ended December 31, 2021, 2020, and 2019, we recorded interest expense and penalties of $1.1 million, $1.3 million, and $1.8 million, respectively, as income tax expense in our consolidated statement of income. At December 31, 2021, 2020, and 2019, we had $3.8 million, $3.6 million, and $3.6 million, respectively, of estimated interest expense and penalties accrued in our consolidated balance sheets. In the ordinary course of our business, our income tax filings are regularly under audit by tax authorities. While we believe we have appropriately provided for all uncertain tax positions, amounts asserted by taxing authorities could be greater or less than our accrued position. Accordingly, additional provisions on income tax matters, or reductions of previously accrued provisions, could be recorded in the future as we revise our estimates due to changing facts and circumstances or the underlying matters are settled or otherwise resolved. We are currently under tax examinations in various jurisdictions. We anticipate that these examinations will be concluded within the next two years. With few exceptions, we are no longer subject to income tax examinations in any jurisdiction in which we conduct significant taxable activities for years before 2016. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
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. Refer to "Note 5. Share-Based Compensation" for additional information regarding deferred stock units. The following is a reconciliation of weighted average shares outstanding for basic and diluted earnings per share: (in thousands) For the Years Ended December 31, 2021 2020 2019 Shares outstanding for basic earnings per share: 85,200 85,342 86,115 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 85,200 85,342 86,115 Dilutive effect of share-based payment awards 1,372 1,380 1,427 86,572 86,722 87,542 Certain options to acquire shares have been excluded from the calculation of shares outstanding for diluted earnings per share because they were anti-dilutive. The following table presents information concerning those anti-dilutive options: (in thousands) For the Years Ended December 31, 2021 2020 2019 Weighted average number of shares underlying anti-dilutive options 121 206 200 |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments Refer to "Note 8. Leases" for more information regarding our lease commitments. We are required to annually purchase a minimum amount of inventory from certain suppliers. Through 2026, we have a total of $2.9 million in minimum purchase commitments under these arrangements. Contingencies 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, the results of legal actions cannot be predicted with certainty, and therefore our actual losses with respect to these contingencies could exceed our accruals. Except for the litigation matter described below, at December 31, 2021, our accruals with respect to actual and threatened litigation were not material. We are a defendant in an ongoing litigation matter involving an alleged breach of contract for underpayment of royalty payments made from 2004 through 2017 under an expired patent license agreement. The plaintiff has asserted a claim of approximately $50 million, inclusive of interest through June 30, 2020, alleging that the incorrect royalty provision was applied to certain licensed products and services throughout the agreement term and that royalties were also due on non-licensed diagnostic services that were provided concurrently with licensed services. The trial court previously ruled in favor of the plaintiff in this matter and we are appealing the judgment and continue to vigorously defend ourselves against the plaintiff’s allegations. While we believe the claim is without merit, litigation is inherently unpredictable and there can be no assurance that we will prevail in this matter. During the third quarter of 2020, we established an accrual of $27.5 million related to this ongoing matter, which represents the amount of a contingent loss that we have determined to be probable and estimable. We have not made any adjustments to this accrual since it was established. The actual cost of resolving this matter may be higher or lower than the amount we have accrued. We self-insure costs associated with health, workers’ compensation, auto, and general welfare claims incurred by our U.S. and Canadian employees up to certain limits. Insurance companies provide insurance for claims above these limits. Claim liabilities are recorded for estimates of the loss that we will ultimately incur on reported claims, as well as estimates of claims that have been incurred but not yet reported. Such liabilities are based on individual coverage, the average time from when a claim is incurred to the time it is paid and judgments about the present, and expected levels of claim frequency and severity. Estimated claim liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. Estimated claim liabilities are included in accrued liabilities in the accompanying consolidated balance sheets. Under our current employee healthcare insurance policy for U.S. employees, we retain claims liability risk per incident up to $1 million per year in 2021, 2020, and 2019. We recognized U.S. employee healthcare claim expense of $78.5 million, $59.5 million, and $59.3 million for the years ended December 31, 2021, 2020, and 2019, respectively, which represents actual claims paid and an estimate of our liability for the uninsured portion of employee healthcare obligations that have been incurred but not paid. Should employee health insurance claims exceed our estimated liability, we would have further obligations. Our estimated liability for healthcare claims that have been incurred but not paid as of December 31, 2021 and 2020, was approximately $7.8 million and $5.5 million, respectively. Workers’ compensation and automobile claim expenses recognized during the years ended December 31, 2021, 2020, and 2019 and our respective liability for such claims as of December 31, 2021, 2020, and 2019 were not material. For the years ended on or prior to December 31, 2018, based on our retained claim liability per incident and our aggregate claim liability per year, our maximum liability in excess of the amounts deemed probable and previously recognized is not material as of December 31, 2021. As of December 31, 2021, we had outstanding letters of credit totaling $1.4 million to the insurance companies as security for the claims in connection with these policies. We have entered into an employment agreement with our chief executive officer whereby payment may be required if we terminate his employment without cause other than following a change in control. The amount payable is based upon the executive’s salary at the time of termination and the cost to us of continuing to provide certain benefits. Had this officer been terminated without cause at December 31, 2021, other than following a change in control, we would have had an obligation for salaries and benefits of approximately $2.0 million under such agreement. In addition, the agreement provides for continued vesting of his outstanding equity awards for a period of two years, which would accelerate approximately $8.0 million of share-based compensation expense as of December 31, 2021. We have entered into employment agreements with each of our officers that require us to make certain payments in the event the officer’s employment is terminated under certain circumstances within a certain period following a change in control. The amount payable by us under each of these agreements is based on the officer’s salary and bonus history at the time of termination and the cost to us of continuing to provide certain benefits. Had all of our officers been terminated in qualifying terminations following a change in control at December 31, 2021, we would have had aggregate obligations of approximately $42.2 million under these agreements. These agreements also provide for the acceleration of the vesting of all stock options and restricted stock units upon any qualifying termination following a change in control. At this time, we believe the likelihood of terminations as a result of the scenarios described is remote, and therefore, we have not accrued for such loss contingencies. 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. Guarantees We enter into agreements with third parties in the ordinary course of business under which we are obligated to indemnify such third parties for and against various risks and losses. The precise terms of such indemnities vary with the nature of the agreement. In many cases, we limit the maximum amount of our indemnification obligations, but in some cases, those obligations may be theoretically unlimited. We have not incurred material expenses in discharging any of these indemnification obligations and, based on our analysis of the nature of the risks involved, we believe that the fair value of potential indemnification under these agreements is minimal. Accordingly, we have recorded no liabilities for these obligations at December 31, 2021 and 2020. When acquiring a business, we sometimes assume liability for certain events or occurrences that took place prior to the date of acquisition. As of December 31, 2021 and 2020, we do not have any material pre-acquisition liabilities recorded. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We operate primarily through three business segments: diagnostic and information management-based products and services for the companion animal veterinary industry, which we refer to as CAG; water quality products (“Water”); and diagnostic products and services for livestock and poultry health, improve producer efficiency, and to ensure the quality and safety of milk, which we refer to as LPD. Our Other operating segment combines and presents our human medical diagnostic products and services business with our out-licensing arrangements because they do not meet the quantitative or qualitative thresholds for reportable segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker (the "CODM"), or decision-making group, in deciding how to allocate resources and in assessing performance. Our CODM is our Chief Executive Officer. Our reportable segments include: CAG, Water, LPD, and Other. Assets are not allocated to segments for internal reporting purposes. CAG provides products and provide services for veterinarians and the biomedical research community, primarily related to diagnostics and information management. Water provides a range of innovative products used in the detection and quantification of various microbiological parameters in water. LPD provides diagnostic tests and related instrumentation and provides services that are used to manage the health status of livestock and poultry, to improve producer efficiency, and to ensure the quality and safety of milk. OPTI Medical develops, manufactures, and distributes human medical diagnostic products and provides human medical diagnostic services. Intersegment revenues, which are not included in the table below, were not material for the years ended December 31, 2021, 2020, and 2019. The following is a summary of segment performance: (in thousands) For the Years Ended December 31, CAG Water LPD Other Consolidated Total 2021 Revenue $ 2,889,960 $ 146,505 $ 135,887 $ 43,008 $ 3,215,360 Income from operations $ 824,022 $ 65,444 $ 28,636 $ 13,926 $ 932,028 Interest expense, net (29,374) Income before provision for income taxes 902,654 Provision for income taxes 157,810 Net income 744,844 Less: Net income attributable to noncontrolling interest (1) Net income attributable to IDEXX Laboratories, Inc. stockholders $ 744,845 Depreciation and amortization $ 94,202 $ 2,709 $ 3,908 $ 3,777 $ 104,596 2020 Revenue $ 2,385,765 $ 128,625 $ 145,845 $ 46,420 $ 2,706,655 Income from operations $ 574,887 $ 58,867 $ 40,008 $ 20,762 $ 694,524 Interest expense, net (32,539) Income before provision for income taxes 661,985 Provision for income taxes 79,854 Net income 582,131 Less: Net income attributable to noncontrolling interest 355 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 581,776 Depreciation and amortization $ 84,697 $ 2,630 $ 4,070 $ 4,601 $ 95,998 2019 Revenue $ 2,119,183 $ 132,850 $ 132,635 $ 22,240 $ 2,406,908 Income from operations $ 462,605 $ 61,923 $ 24,735 $ 3,583 $ 552,846 Interest expense, net (30,628) Income before provision for income taxes 522,218 Provision for income taxes 94,426 Net income 427,792 Less: Net income attributable to noncontrolling interest 72 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 427,720 Depreciation and amortization $ 77,620 $ 2,794 $ 4,007 $ 3,590 $ 88,011 Refer to "Note 3. Revenue Recognition" for a summary of disaggregated revenue by reportable segment and by major product and service category for the years ended December 31, 2021, 2020, and 2019. Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net long-lived assets by principal geographic areas were as follows: (in thousands) December 31, 2021 December 31, 2020 Americas United States $ 436,003 $ 412,700 Brazil 17,043 20,797 Canada 7,003 4,993 460,049 438,490 Europe, the Middle East and Africa Germany 60,451 67,354 United Kingdom 9,828 10,191 Netherlands 19,405 15,267 France 1,884 2,062 Switzerland 3,545 3,743 Other 3,821 3,668 98,934 102,285 Asia Pacific Region Japan 5,845 4,503 Australia 14,584 3,304 Other 8,255 6,585 28,684 14,392 Total $ 587,667 $ 555,167 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
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 non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our 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 years ended December 31, 2021 and 2020. Our cross currency swap contracts are measured at fair value on a recurring basis in our accompanying 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 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 accompanying 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. At December 31, 2021, the estimated fair value and carrying value of our long-term debt were $916.3 million and $850.7 million, respectively. At December 31, 2020, the estimated fair value and carrying value of our long-term debt were $1.0 billion and $909.1 million, respectively. The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy: (in thousands) As of December 31, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at December 31, 2021 Assets Money market funds (1) $ 76 $ — $ — $ 76 Equity mutual funds (2) $ 826 $ — $ — $ 826 Cross currency swaps (3) $ — $ 4,256 $ — $ 4,256 Foreign currency exchange contracts (3) $ — $ 6,512 $ — $ 6,512 Liabilities Foreign currency exchange contracts (3) $ — $ 601 $ — $ 601 Deferred compensation (4) $ 826 $ — $ — $ 826 Contingent payments - acquisitions $ — $ — $ 7,230 $ 7,230 (in thousands) As of December 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at December 31, 2020 Assets Money market funds (1) $ 76 $ — $ — $ 76 Equity mutual funds (2) $ 1,145 $ — $ — $ 1,145 Foreign currency exchange contracts (3) $ — $ 125 $ — $ 125 Liabilities Cross currency swaps (3) $ — $ 2,841 $ — $ 2,841 Foreign currency exchange contracts (3) $ — $ 12,373 $ — $ 12,373 Deferred compensation (4) $ 1,145 $ — $ — $ 1,145 (1) Money market funds 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 December 31, 2021, and December 31, 2020, consisted of demand deposits. (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. Refer to 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 values of certain financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate carrying value due to their short maturity. Contingent Consideration We have classified our liabilities for contingent consideration related to acquisitions within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which includes the achievements of future revenues. The contingent consideration is included within other short-term liabilities. We record changes in the estimated fair value of contingent consideration in the consolidated statements of income. Changes in contingent consideration liabilities are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during the year ended December 31, 2021, are as follows: (in thousands) Fair Value Contingent consideration as of December 31, 2020 $ — Contingent consideration recorded from acquisitions (Note 4) 5,230 Change in estimated fair value 2,000 Contingent consideration as of December 31, 2021 $ 7,230 We originally recorded a $5.0 million contingent consideration associated with our acquisition of ezyVet during the second quarter of 2021. During the fourth quarter of 2021, we increased the contingent consideration by $2.0 million to reflect the most recent estimate associated with achievements of future revenue. |
Hedging Instruments
Hedging Instruments | 12 Months Ended |
Dec. 31, 2021 | |
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 risk that we currently manage by using hedging instruments is foreign currency exchange risk. 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. 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. The primary purpose of our foreign currency hedging activities is to protect against the volatility associated with foreign currency transactions, including transactions denominated in euro, British pound, Japanese yen, Canadian dollar, and Australian dollar. 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 hedging instruments for purposes other than risk management. Our accounting policies for these contracts are based on our 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. Refer to “Note 21. Accumulated Other Comprehensive Income” for further information regarding the effect of hedging instruments on the consolidated statements of income for the years ended December 31, 2021, 2020, and 2019. 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 accompanying 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. Refer to "Note 18. Fair Value Measurements" for additional information regarding the fair value of our derivative instruments and "Note 21. Accumulated Other Comprehensive Income" for additional information regarding the effect of derivative instruments designated as cash flow hedges on the consolidated statements of income. Cash Flow Hedges We have designated our foreign currency exchange contracts as cash flow hedges as these derivative instruments mitigate the exposure to variability in the cash flows of forecasted transactions attributable to foreign currency exchange. Unless noted otherwise, we have also designated our derivative instruments as qualifying for hedge accounting treatment. We did not de-designate any instruments from hedge accounting treatment during the years ended December 31, 2021, 2020, and 2019. Gains and losses related to hedge ineffectiveness recognized in earnings during the years ended December 31, 2021, 2020, and 2019 were not material. At December 31, 2021, the estimated amount of net gains, net of tax, which are expected to be reclassified out of AOCI and into earnings within the next twelve months is $5.0 million if exchange rates do not fluctuate from the levels at December 31, 2021. We target to hedge approximately 75% to 85% of the estimated exposure from intercompany product purchases and sales denominated in the euro, British pound, Canadian dollar, Japanese yen, and Australian dollar. 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 $286.7 million, and $202.7 million at December 31, 2021 and 2020, respectively. The following table presents the effect of cash flow hedge accounting on our consolidated statements of income and comprehensive income, and provides information regarding the location and amounts of pretax gains or losses of derivatives: (in thousands) Years Ended December 31, 2021 2020 2019 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 1,325,928 $ 1,135,615 $ 1,041,359 Foreign exchange contracts Amount of (loss) gain reclassified from accumulated other comprehensive income into income $ (7,121) $ 829 $ 10,628 Net Investment Hedges, Euro-Denominated Notes 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 a gain of $6.4 million, a loss of $7.4 million, and a gain of $1.8 million, net of tax, within AOCI as a result of this net investment hedge for the years ended December 31, 2021, 2020, and 2019, respectively. The related cumulative unrealized gain recorded at December 31, 2021, will not be reclassified in earnings until the complete or substantially complete liquidation of the net investment in the hedged foreign operations or all or a portion of the hedge no longer qualifies for hedge accounting treatment. Refer to "Note 13. Debt" to the consolidated financial statements included in this Annual Report on Form 10-K for further information regarding the issuance of these euro-denominated notes. Net Investment Hedges, Cross Currency Swaps We have entered into several 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. These cross currency swaps have maturity dates beginning on June 30, 2023, through June 18, 2025. At maturity of the cross currency swap contracts, we will deliver the notional amounts of €90.0 million and will receive approximately $104.5 million from the counterparties on June 30, 2023, and we will deliver the notional amount of €15.0 million and will receive approximately $17.5 million from the counterparties on June 18, 2025. 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. We recorded a gain of $5.4 million, a loss of $5.6 million, and a gain of $2.1 million, net of tax, within AOCI as a result of these net investment hedges, during the years ended December 31, 2021, 2020, and 2019, respectively. We will receive quarterly interest payments from the counterparties based on a fixed interest rate until maturity of the cross currency swaps. This interest rate component is excluded from the assessment of hedge effectiveness and, thus, is recognized as a reduction to interest expense over the life of the hedge instrument. We recognized approximately $2.8 million and $2.7 million related to the excluded component as a reduction of interest expense for the years ended December 31, 2021 and 2020, respectively. Fair Values of Hedging Instruments Designated as Hedges in Consolidated Balance Sheets The fair values of hedging instruments, their respective classification on the 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 December 31, 2021 December 31, 2020 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 6,512 $ 125 Cross currency swaps Other long-term assets 4,256 — Total derivative instruments presented as hedge instruments on the balance sheet 10,768 125 Gross amounts subject to master netting arrangements not offset on the balance sheet (601) (125) Net amount $ 10,167 $ — (in thousands) Hedging Liabilities December 31, 2021 December 31, 2020 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 601 $ 12,373 Cross currency swaps Other long-term liabilities — 2,841 Total derivative instruments presented as cash flow hedges on the balance sheet 601 15,214 Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) Long-term debt 100,711 109,125 Total hedging instruments presented on the balance sheet 101,312 124,339 Gross amounts subject to master netting arrangements not offset on the balance sheet (601) (125) Net amount $ 100,711 $ 124,214 (1) Amounts represent reported carrying amounts of our foreign currency denominated debt. Refer to "Note 18. Fair Value Measurements" for information regarding the fair value of our long-term debt. |
Repurchases of Common Stock
Repurchases of Common Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Repurchases of Common Stock | REPURCHASES OF COMMON STOCK As of December 31, 2021, our Board of Directors has authorized the repurchase of u p to 73.0 million sh ares of our common stock in the open market or in negotiated transactions pursuant to the Company’s share repurchase program. We believe that the repurchase of our common stock is a favorable means of returning value to our stockholders, and we also repurchase to offset the dilutive effect of our share-based compensation programs. Repurchases of our common stock may vary depending upon the level of other investing activities and the share price. As of December 31, 2021, there are approximate ly 5.0 million rem aining shares available for repurchase under this authorization. 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 years ended December 31, 2021, 2020, and 2019, 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 surrenders: (in thousands, except per share amounts) For the Years Ended December 31, 2021 2020 2019 Shares repurchased in the open market 1,283 721 1,215 Shares acquired through employee surrenders for statutory tax withholding 29 58 39 Total shares repurchased 1,312 779 1,254 Cost of shares repurchased in the open market $ 755,545 $ 179,623 $ 303,838 Cost of shares for employee surrenders 15,562 20,603 8,054 Total cost of shares $ 771,107 $ 200,226 $ 311,892 Average cost per share - open market repurchases $ 588.58 $ 249.20 $ 249.84 Average cost per share - employee surrenders $ 548.08 $ 354.98 $ 210.10 Average cost per share - total $ 587.70 $ 257.08 $ 248.62 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in AOCI, net of tax, consisted of the following: For the Years Ended December 31, 2021 and 2020 Unrealized (Loss) Gain on Cash Flow Hedges, Net of Tax Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax (in thousands) Unrealized (Loss) Gain on Investments, Net of Tax Foreign Currency Exchange Contracts Euro-Denominated Notes Cross Currency Swaps Cumulative Translation Adjustment Total Balance as of December 31, 2019 $ 110 $ (736) $ 1,396 $ 3,467 $ (50,419) $ (46,182) Other comprehensive (loss) income before reclassifications (382) (8,527) (7,378) (5,626) 15,151 (6,762) Amounts reclassified from accumulated other comprehensive income — (671) — — — (671) Balance as of December 31, 2020 (272) (9,934) (5,982) (2,159) (35,268) (53,615) Other comprehensive income (loss) before reclassifications 146 9,139 6,404 5,399 (26,731) (5,643) Amounts reclassified from accumulated other comprehensive income — 5,774 — — — 5,774 Balance as of December 31, 2021 $ (126) $ 4,979 $ 422 $ 3,240 $ (61,999) $ (53,484) The following table presents components and amounts reclassified out of AOCI to net income: (in thousands) Affected Line Item in the Statements of Income Amounts Reclassified from AOCI for the Years Ended December 31, 2021 2020 2019 Gains (losses) on derivative instruments included in net income: Foreign currency exchange contracts Cost of revenue $ (7,121) $ 829 $ 10,628 Tax (benefit) expense (1,347) 158 2,467 (Losses) gains, net of tax $ (5,774) $ 671 $ 8,161 |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2021 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock | PREFERRED STOCK |
IDEXX Retirement and Incentive
IDEXX Retirement and Incentive Savings Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
IDEXX Retirement and Incentive Savings Plan | IDEXX RETIREMENT AND INCENTIVE SAVINGS PLAN We have established the IDEXX Retirement and Incentive Savings Plan (the “401(k) Plan”). U.S. employees eligible to participate in the 401(k) Plan may contribute specified percentages of their salaries. We match a portion of these contributions, not to exceed 5% of participants’ eligible compensation. We matched $25.8 million, $23.4 million, and $21.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. In addition, we may make contributions to the 401(k) Plan at the discretion of the Board of Directors. There were no discretionary contributions in 2021, 2020 or 2019. We also have established defined contribution plans for regional employees in Europe and in Canada. With respect to these plans, our contributions over the past three years have not been material. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Estimates | EstimatesThe preparation of these consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate these estimates, including those related to reserves for accounts receivable; goodwill and other intangible assets; income taxes; inventory valuation; revenue recognition, product returns, customer programs, and multiple element arrangements; share-based compensation; warranty reserves; self-insurance reserves; fair value measurements and loss contingencies. We accrue contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from these estimates. |
Cash And Cash Equivalents | Cash and Cash EquivalentsWe consider all highly liquid investments with original maturities of ninety days or less to be cash equivalents. Cash and cash equivalents consist primarily of demand deposits, money market funds, and short-duration agency bonds and commercial paper as described above. |
Warranty Reserves | Warranty ReservesWe provide a standard twelve-month warranty on all instruments sold. We recognize the cost of instrument warranties in cost of product revenue at the time revenue is recognized based on the estimated cost to repair the instrument over its warranty period. Cost of product revenue reflects not only estimated warranty expense for instruments sold in the current period, but also any changes in estimated warranty expense for the portion of the aggregate installed base that is under warranty. Estimated warranty expense is based on a variety of inputs, including historical instrument performance in the customers’ environments, historical and estimated costs incurred in servicing instruments and projected instrument reliability. Should actual service rates or costs differ from our estimates, revisions to the estimated warranty liability would be required. The liability for warranties is included in accrued liabilities in the accompanying consolidated balance sheets. |
Taxes Remitted To Governmental Authorities By IDEXX On Behalf Of Customer | Taxes Remitted to Governmental Authorities by IDEXX on Behalf of CustomerWe calculate, collect from our customers, and remit to governmental authorities, sales, value-added, and excise taxes assessed by governmental authorities in connection with revenue-producing transactions with our customers. We report these taxes on a net basis and do not include these tax amounts in revenue or cost of product or service revenue. |
Research And Development Costs | Research and Development CostsResearch and development costs, which consist of employee compensation and benefits, materials and external consulting, and product development costs, are expensed as incurred. We evaluate our research and development costs for capitalization after the technological feasibility has been established for software and products containing software to be sold; however, no costs were capitalized during the years ended December 31, 2021, 2020, and 2019. Software developed to deliver hosted services to our customers has been designated as internal use, and we capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Refer to "Note 9. Property and Equipment, Net" for further information on internal use software. |
Advertising Costs | Advertising CostsAdvertising costs, which are recognized as sales and marketing expense in the period in which they are incurred, were $3.3 million, $1.4 million, and $1.5 million for the years ended December 31, 2021, 2020, and 2019, respectively. |
Legal Costs | Legal CostsLegal costs are considered period costs and, accordingly, are expensed in the year services are provided. |
Foreign Currency | Foreign CurrencyThe functional currency of all except eight of our subsidiaries is their local currency, however, the assets and liabilities of the majority of our foreign subsidiaries are translated to the U.S. dollar using the exchange rate in effect at the balance sheet date. Revenue and expense accounts are translated to the U.S. dollar using the exchange rate at the date which those elements are recognized, and where it is impractical to do so, an average exchange rate in effect during the period is used to translate those elements. Cumulative translation gains and losses are shown in the accompanying consolidated balance sheets as a separate component of accumulated other comprehensive income (“AOCI”). Revenues and expenses denominated in a currency other than the respective subsidiary’s functional currency are recorded at the current exchange rate when the transaction is recognized. Monetary assets and liabilities denominated in a currency other than the respective subsidiary’s functional currency are remeasured at each balance sheet date using the exchange rate in effect at each balance sheet date. These foreign currency gains and losses are included in general and administrative expenses within our Other segment. |
Comprehensive Income | Comprehensive Income We report all changes in equity, including net income and transactions or other events and circumstances from non-owner sources during the period in which they are recognized. We have chosen to present comprehensive income, which encompasses net income, foreign currency translation adjustments, gains and losses on our net investment hedges and the difference between the cost and the fair market value of investments in debt and equity securities, and forward currency exchange contracts, in the consolidated statements of comprehensive income. Refer to |
Concentrations of Risk | Concentrations of Risk Financial Instruments . Financial instruments that potentially subject us to concentrations of credit risk are principally cash, cash equivalents, accounts receivable, and derivatives. To mitigate such risk with respect to cash and cash equivalents, we place our cash with highly-rated financial institutions, in non-interest bearing accounts that are insured by the U.S. government and money market funds invested in government securities. Concentration of credit risk with respect to accounts receivable is limited to certain customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our most significant customers and monitor the amounts owed to us, taking appropriate action when necessary. As a result, we believe that accounts receivable credit risk exposure is limited. We maintain an allowance for doubtful accounts, but historically have not experienced any material losses related to an individual customer or group of customers in any particular industry or geographic area. To mitigate concentration of credit risk with respect to derivatives we enter into transactions with highly-rated financial institutions, enter into master netting arrangements with counterparties to our derivative transactions and frequently monitor the creditworthiness of our counterparties. Our master netting arrangements reduce our exposure in that they permit outstanding receivables and payables with the counterparties to our derivative transactions to be offset in the event of default. We have not incurred such losses and consider the risk of counterparty default to be minimal. Inventory . If we are unable to obtain adequate quantities of the inventory we need to sell our products, we could face cost increases or delays or discontinuations in product shipments, which could have a material adverse effect on our results of operations. Many of the third parties that provide us with the instruments we sell, as well as certain components, raw materials and consumables used in or with our products, are sole or single-source suppliers. Some of the products that we purchase from these sources are proprietary or complex in nature, and, therefore, cannot be readily or easily replaced by alternative sources. |
New Accounting Pronouncements Adopted and New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Adopted We adopted ASU 2016-02, "Leases (Topic 842)," as of January 1, 2019, using the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. We adopted ASU 2018-13, "Fair Value Measurement (Topic 820)," as of January 1, 2020, which modifies the disclosure requirements on fair value measurements under ASC Topic No. 820, Fair Value Measurement, as amended (“ASC 820”). ASU 2018-13 removes (a) the prior requirement to disclose the amount and reason for transfers between Level 1 and Level 2 of the fair value hierarchy contained in ASC 820, (b) the policy for timing of transfers between levels, and (c) the valuation processes used for Level 3 fair value measurements. ASU 2018-13 also adds, among other things, a requirement to disclose the range and weighted average of significant unobservable inputs used in Level 3 fair value measurements. The adoption did not have a material impact on our consolidated financial statements. We adopted ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” effective January 1, 2020, using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables and leased equipment. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. We recorded a non-cash cumulative effect adjustment to retained earnings of $1.8 million, net of $0.6 million of income taxes, on our opening consolidated balance sheet as of January 1, 2020. This adjustment, before the impact of income taxes, was comprised of $2.3 million related to our contract assets and sales-type leases, and $0.2 million related to accounts receivable. Refer to "Note 6. Credit Losses" for more information on our presentation of credit losses. Effective January 1, 2021, we adopted ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The new guidance is intended to simplify the accounting for income taxes by removing certain exceptions and by updating accounting requirements around goodwill recognized for tax purposes and the allocation of current and deferred tax expense among legal entities, among other minor changes. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. In July 2021, the FASB issued ASU 2021-05, “Leases (Topic 842); Lessors - Certain Leases with Variable Lease Payments.” ASU 2021-05 requires a lessor to classify a lease with variable payments that do not depend on an index or rate as an operating lease if another lease classification (i.e., sales-type or direct financing) would result in recognition of a day-one loss. We have elected to adopt this standard as of the third quarter of 2021, on a prospective basis. The adoption of ASU 2021-05 did not have a material impact on our consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities.” ASU 2021-08 is intended to improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination by providing consistent recognition guidance. This standard is effective for fiscal years beginning after December 15, 2022. Adoption of the ASU 2021-08 should be applied prospectively. Early adoption is permitted, including in an interim period, for any period for which financial statements have not yet been issued. We are currently evaluating the impact, if any, of ASU 2021-08 on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 is intended to provide optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The FASB also issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope," in January 2021. It clarifies that certain optional expedients and exceptions apply to derivatives that are affected by the discounting transition. The amendments in this ASU affect the guidance in ASU No. 2020-04 and are effective in the same timeframe as ASU 2020-04. The relief offered by this guidance, if adopted, is available to companies for the period March 12, 2020 through December 31, 2022. Our Credit Facility includes a provision for the determination of a benchmark replacement rate as a successor to the LIBOR rate, therefore; we do not expect the discontinuation of LIBOR to have an impact on our consolidated financial statements. |
Revenue Recognition | Our 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 accurately present the consideration received in exchange for promised products or services, we apply the 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 |
Share-Based Compensation | We provide for various forms of share-based compensation awards to our employees and non-employee directors. Our share-based compensation plans allow for the issuance of a mix of stock options, restricted stock, stock appreciation rights, employee stock purchase rights, and other stock unit awards. With the exception of stock options, the fair value of our awards is equal to the closing stock price of IDEXX common stock on the date of grant. We calculate the fair value of our stock option awards using the Black-Scholes-Merton option-pricing model. For stock options, restricted stock units (“RSUs”), and deferred stock units (“DSUs”), share-based compensation expense is recognized net of estimated forfeitures, on a straight-line basis over the requisite service period of the award for stock options. For performance-based restricted stock units (“PBRSUs”), share-based compensation expense is recognized net of estimated forfeitures, on a grade-vesting methodology over the requisite service period. |
Credit Losses | We are exposed to credit losses primarily through our sales of products and services to our customers. We maintain allowances for credit losses 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. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current economic conditions. Refer to "Note 2. Accounting Policies" for more information on our adoption of ASU 2016-13 on January 1, 2020, using the modified retrospective transition method. Additional allowances may be required if either the financial condition of our customers was 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. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. Our activities include timely account reconciliations, dispute resolution, and payment confirmations. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Account balances are charged off against the allowance when we believe it is probable the receivable will not be recovered. We may require collateralized asset support or a prepayment to mitigate credit risk. We do not have any off-balance sheet credit exposure related to our customers. |
Inventories | Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We write down the carrying value of inventory for estimated obsolescence by an amount equal to the difference between the cost of inventory and the estimated market value when warranted based on assumptions of future demand, market conditions, remaining shelf life, or product functionality. If actual market conditions or results of estimated functionality are less favorable than those we estimated, additional inventory write-downs may be required, which would have a negative effect on results of operations. |
Leases | The majority of our facilities are occupied under operating lease arrangements with various expiration dates through 2067, some of which include options to extend the life of the lease, and some of which include options to terminate the lease within 1 year. In certain instances, we are responsible for the real estate taxes and operating expenses related to these facilities. Additionally, we enter into operating leases for certain vehicles and office equipment in the normal course of business. We determine the expected term of any executed agreements using the non-cancelable lease term plus any renewal options by which the failure to renew imposes a penalty in such amount that renewal is reasonably assured. The derived expected term is then used in the determination of a financing or operating lease and in the calculation of straight-line rent expense. Rent escalations are considered in the calculation of minimum lease payments in our capital lease tests and in determining straight-line rent expense for operating leases. Minimum lease payments include the fixed lease component of the agreement, as well as fixed rate increases that are initially measured at the lease commencement date. Variable lease payments based on an index and payments associated with non-lease components and short-term rentals (leases with terms less than 12 months) are expensed as incurred. Consideration is allocated to the lease and non-lease components based on the estimated standalone prices. We determine if an arrangement is a lease at its inception. Operating leases are included in operating lease right-of-use assets, accrued liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Our financing leases are not material to the financial statements. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an explicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Rent expense for lease payments is recognized on a straight-line basis over the lease term. The operating lease right-of-use assets also includes any rent prepayments, lease incentives upon receipt, and straight-line rent expense impacts, which represent the differences between our operating lease liabilities and right-of-use assets. |
Property and Equipment | Property and equipment are stated at cost, net of accumulated depreciation and amortization. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. When an item is sold or retired, the cost and related accumulated depreciation are relieved, and the resulting gain or loss, if any, is recognized in the consolidated statements of income. We evaluate our property and equipment for impairment periodically or as changes in circumstances or the occurrence of events suggest the remaining value is not recoverable from future cash flows. If the carrying value of our property and equipment is impaired, an impairment charge is recorded for the amount by which the carrying value of the property and equipment exceeds its fair value. We provide for depreciation and amortization primarily using the straight-line method by charges to the consolidated statements of income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Land improvements 15 to 20 years Buildings and improvements 10 to 40 years Leasehold improvements Shorter of remaining lease term or useful life of improvements Machinery and equipment 3 to 8 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 7 years We capitalize interest on the acquisition and construction of significant assets that require a substantial period of time to be made ready for use. The capitalized interest is included in the cost of the completed asset and depreciated over the asset’s estimated useful life. The amount of interest capitalized during the years ended December 31, 2021 and 2020, was not material. We capitalize certain costs incurred in connection with developing or obtaining software designated for internal use based on three distinct stages of development. Qualifying costs incurred during the application development stage, which consist primarily of internal payroll and direct fringe benefits and external direct project costs, including labor and travel, are capitalized and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the preliminary project and post-implementation and operation phases are expensed as incurred. These costs relate primarily to the determination of performance requirements, data conversion, and training. Software developed to deliver hosted services to our customers has been designated as internal use. |
Goodwill and Other Intangible Assets | A significant portion of the purchase price for acquired businesses is generally assigned to intangible assets. Intangible assets other than goodwill are initially valued at fair value. If a quoted price in an active market for the identical asset is not readily available at the measurement date, the fair value of the intangible asset is estimated based on discounted cash flows using market participant assumptions, which are assumptions that are not specific to IDEXX. The selection of appropriate valuation methodologies and the estimation of discounted cash flows require significant assumptions about the timing and amounts of future cash flows, risks, appropriate discount rates, and the useful lives of intangible assets. When significant, we utilize independent valuation experts to advise and assist us in determining the fair values of the identified intangible assets acquired in connection with a business acquisition and in determining appropriate amortization methods and periods for those intangible assets. Goodwill is initially valued based on the excess of the purchase price of a business combination over the fair value of acquired net assets recognized and represents the future economic benefits arising from other assets acquired that could not be separately identified and recognized. Our business combinations regularly include contingent consideration arrangements that require additional consideration to be paid based on the achievement of established objectives, most commonly related to customer retention or revenue growth of the customer base during the post-combination period. We assess contingent consideration to determine if it should be recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved, with changes in fair value recognized in earnings if changes in estimates are made after the measurement period. During the fourth quarter of 2021, we increased the fair value of the contingent payment to ezyVet by $2.0 million. Changes in the fair value of contingent consideration and differences arising upon settlement were not material during the years ended December 31, 2020, and 2019. We assess goodwill for impairment annually, at the reporting unit level, in the fourth quarter and whenever events or circumstances indicate impairment may exist. In evaluating goodwill for impairment, we have the option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. The more likely than not threshold is defined as having a likelihood of more than 50%. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would assess the fair value of all of our reporting units and compare the fair value of the reporting unit to its carrying value to determine if the carrying value exceeds its fair value, and if a goodwill impairment loss should be recognized. In contrast, we can opt to bypass the qualitative assessment for any reporting unit in any period and proceed directly to assessing the fair value of all of our reporting units and compare the fair value of the reporting unit to carrying value to determine if any impairment exists. Doing so does not preclude us from performing the qualitative assessment in any subsequent period. In the fourth quarter of 2021, we elected to bypass the qualitative approach that allows the assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and instead proceeded directly to assessing the fair value of all of our reporting units and comparing the fair values of each reporting unit to the carrying values to determine if any impairment exists. We estimate the fair values of applicable reporting units using an income approach based on discounted forecasted cash flows. We make significant assumptions about the extent and timing of future cash flows, growth rates and discount rates. Model assumptions are based on our projections and best estimates, using appropriate and customary market participant assumptions. In addition, we make certain assumptions in allocating shared assets and liabilities to individual reporting units in determining the carrying value of each reporting unit. Changes in forecasted cash flows or the discount rate would affect the estimated fair values of our reporting units and could result in a goodwill impairment loss in a future period. No goodwill impairments were identified during the years ended December 31, 2021, 2020, or 2019, and no accumulated impairment losses are recorded. We assess the realizability of intangible assets other than goodwill whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If an impairment review is triggered, we evaluate the carrying value of intangible assets based on estimated undiscounted future cash flows over the remaining useful life of the primary asset of the asset group and compare that value to the carrying value of the asset group. The asset group is the lowest level for which identifiable cash flows associated with the intangible asset are largely independent. The cash flows that are used contain our best estimates, using appropriate and customary assumptions and projections at the time. If the net carrying value of an intangible asset exceeds the related estimated undiscounted future cash flows, an impairment loss to adjust the intangible asset to its fair value would be reported as a non-cash charge to earnings. If necessary, we would calculate the fair value of an intangible asset using the present value of the estimated future cash flows to be generated by the intangible asset, and applying a risk-adjusted discount rate. We had no impairments of our intangible assets during the years ended December 31, 2021 and 2019. The amount of impairment for the year ended December 31, 2020 was immaterial. We provide for amortization primarily using the straight-line method by charges to income in amounts that allocate the intangible assets over their estimated useful lives as follows: Asset Classification Estimated Useful Life Customer-related intangible assets (1) 3 to 17 years Product rights (2) 5 to 15 years Noncompete agreements 3 to 5 years |
Income Taxes | The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. In assessing the need for a valuation allowance, we consider future taxable income and ongoing prudent and feasible tax planning strategies. In the event that we determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, a reduction to the deferred tax asset would be charged to income in the period such determination was made. We record a liability for uncertain tax positions that do not meet the more likely than not standard as prescribed by the authoritative guidance for income tax accounting. We record tax benefits for only those positions that we believe will more likely than not be sustained. Unrecognized tax benefits are the differences between tax positions taken, or expected to be taken, in tax returns, and the benefits recognized for accounting purposes. We classify uncertain tax positions as long-term liabilities. Significant judgment is required in determining our worldwide provision for income taxes and our income tax filings are regularly under audit by tax authorities. Any audit result differing from amounts recorded would increase or decrease income in the period that we determine such adjustment is likely. Interest expense and penalties associated with the underpayment of income taxes are included in income tax expense. |
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. Refer to "Note 5. Share-Based Compensation" for additional information regarding deferred stock units. |
Self-Insurance Accruals | 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, the results of legal actions cannot be predicted with certainty, and therefore our actual losses with respect to these contingencies could exceed our accruals. |
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 non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our 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 years ended December 31, 2021 and 2020. Our cross currency swap contracts are measured at fair value on a recurring basis in our accompanying 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 consolidated balance sheets. We measure the fair value of our foreign currency exchange contracts classified as derivative |
Hedging Instruments | 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. Refer to “Note 21. Accumulated Other Comprehensive Income” for further information regarding the effect of hedging instruments on the consolidated statements of income for the years ended December 31, 2021, 2020, and 2019.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 accompanying 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenues | The following table presents disaggregated revenue by major product and service categories: (in thousands) For the Years Ended December 31, 2021 2020 2019 CAG segment revenue: CAG Diagnostics recurring revenue: $ 2,534,562 $ 2,113,839 $ 1,828,329 IDEXX VetLab consumables 1,006,781 824,376 693,360 Rapid assay products 296,852 253,018 232,149 Reference laboratory diagnostic and consulting services 1,123,656 946,268 822,497 CAG Diagnostics services and accessories 107,273 90,177 80,323 CAG Diagnostics capital - instruments 149,140 108,950 132,685 Veterinary software, services and diagnostic imaging systems 206,258 162,976 158,169 CAG segment revenue 2,889,960 2,385,765 2,119,183 Water segment revenue 146,505 128,625 132,850 LPD segment revenue 135,887 145,845 132,635 Other segment revenue 43,008 46,420 22,240 Total revenue $ 3,215,360 $ 2,706,655 $ 2,406,908 Revenue by principal geographic area, based on customers’ domiciles, was as follows: (in thousands) For the Years Ended December 31, 2021 2020 2019 Americas United States $ 1,995,683 $ 1,691,224 $ 1,495,516 Canada 139,727 107,398 99,550 Latin America & Caribbean 66,623 51,863 56,515 2,202,033 1,850,485 1,651,581 Europe, the Middle East and Africa Germany 146,762 119,353 104,081 United Kingdom 114,955 90,156 90,969 France 90,836 74,814 64,767 Italy 52,062 42,817 39,725 Spain 48,169 39,265 36,439 Switzerland 31,984 24,850 20,855 Netherlands 29,656 23,461 19,397 Other 167,525 148,049 122,206 681,949 562,765 498,439 Asia Pacific Region Australia 94,414 79,629 71,069 Japan 84,275 74,725 67,246 China 63,166 70,845 57,518 Other 89,523 68,206 61,055 331,378 293,405 256,888 Total $ 3,215,360 $ 2,706,655 $ 2,406,908 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of selected financial impact of share-based compensation | The following is a summary of share-based compensation costs and related tax benefits recorded in our consolidated statements of income: (in thousands) For the Years Ended December 31, 2021 2020 2019 Share-based compensation expense included in cost of revenue $ 4,044 $ 3,415 $ 2,681 Share-based compensation expense included in operating expenses 33,711 27,536 36,597 Total share-based compensation expense included in consolidated statements of income 37,755 30,951 39,278 Income tax benefit resulting from share-based compensation expense (4,734) (3,965) (4,861) Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards 33,021 26,986 34,417 Income tax benefit resulting from settlement of share-based awards (32,474) (38,981) (19,140) Net expense (benefit) related to share-based compensation arrangements included in consolidated statements of income $ 547 $ (11,995) $ 15,277 |
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 Years Ended December 31, 2021 2020 2019 Share price at grant $ 546.36 $ 291.14 $ 218.66 Share exercise price $ 550.10 $ 291.14 $ 220.88 Expected stock price volatility 30 % 27 % 26 % Expected term, in years 6.2 6.0 6.0 Risk-free interest rate 0.7 % 1.4 % 2.4 % Weighted average fair value of options granted $ 169.15 $ 84.92 $ 65.53 |
Schedule of stock option activity | A summary of the status of options granted under our share-based compensation plans at December 31, 2021, and changes during the year then ended, are presented in the table below: Number of Options (000) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding as of December 31, 2020 1,953 $ 149.32 Granted 144 $ 550.10 Exercised (310) $ 102.78 Forfeited (30) $ 261.95 Outstanding as of December 31, 2021 1,757 $ 188.47 5.8 $ 825,745 Fully vested as of December 31, 2021 1,109 $ 127.30 4.8 $ 588,831 Fully vested and expected to vest as of December 31, 2021 1,738 $ 186.72 5.7 $ 819,777 |
Schedule of restricted stock unit activity | A summary of the status of RSUs and PBRSUs granted under our share-based compensation plans at December 31, 2021, and changes during the period then ended, are presented in the table below: Number of Units (000) Weighted Average Grant-Date Fair Value Nonvested as of December 31, 2020 218 $ 202.47 Granted 44 Vested (85) Forfeited (12) Nonvested as of December 31, 2021 165 $ 306.18 Expected to vest as of December 31, 2021 156 $ 303.00 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory, Net [Abstract] | |
Schedule of components of inventories | The components of inventories are as follows: (in thousands) December 31, 2021 December 31, 2020 Raw materials $ 60,427 $ 45,986 Work-in-process 26,397 20,374 Finished goods 182,206 143,513 Inventories $ 269,030 $ 209,873 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Maturities of operating lease liabilities | Maturities of operating lease liabilities are as follows: (in thousands) December 31, 2021 2022 $ 22,402 2023 21,122 2024 16,523 2025 12,675 2026 10,437 Thereafter 39,047 Total lease payments 122,206 Less imputed interest (14,898) Total lease liability (current and long-term) $ 107,308 |
Supplemental cash flow information | December 31, 2021 December 31, 2020 Weighted average remaining lease term - operating leases 9.4 years 10.3 years Weighted average discount rate - operating leases 2.5 % 2.9 % Supplemental cash flow information for leases is as follows: For the Years Ended (in thousands) 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 24,214 $ 19,619 Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations $ 37,572 $ 26,807 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of estimated useful lives for property and equipment | We provide for depreciation and amortization primarily using the straight-line method by charges to the consolidated statements of income in amounts that allocate the cost of property and equipment over their estimated useful lives as follows: Asset Classification Estimated Useful Life Land improvements 15 to 20 years Buildings and improvements 10 to 40 years Leasehold improvements Shorter of remaining lease term or useful life of improvements Machinery and equipment 3 to 8 years Office furniture and equipment 3 to 7 years Computer hardware and software 3 to 7 years |
Schedule of property and equipment | Property and equipment, net, consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Land and improvements $ 22,642 $ 13,982 Buildings and improvements 329,091 319,384 Leasehold improvements 93,248 82,459 Machinery and equipment 382,753 353,301 Office furniture and equipment 69,090 67,527 Computer hardware and software 276,895 265,664 Construction in progress 62,339 39,764 1,236,058 1,142,081 Less accumulated depreciation and amortization 648,391 586,914 Total property and equipment, net $ 587,667 $ 555,167 |
Summary of depreciation and amortization, capitalized computer software for internal use and unpaid property equipment reflected in accounts payable and accrued expenses | Below are the amounts of depreciation and amortization of property and equipment, capitalized computer software for internal use, unpaid property and equipment reflected in accounts payable and accrued expenses, and rental and reagent rental program instruments transferred from inventory to property and equipment: For the Years Ended December 31, (in thousands) 2021 2020 2019 Depreciation and amortization expense $ 92,376 $ 86,095 $ 78,495 Capitalized computer software developed for internal use $ 14,753 $ 18,472 $ 20,130 Unpaid property and equipment, reflected in accounts payable and accrued liabilities $ 19,326 $ 13,343 $ 24,688 Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment (Note 3) $ 11,628 $ 9,645 $ 14,498 |
Other Current and Long-Term A_2
Other Current and Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other current assets | Other current assets consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Customer acquisition costs $ 48,942 $ 43,751 Prepaid expenses 41,997 34,556 Contract assets, net (1) 37,772 23,837 Taxes receivable 19,464 19,476 Deferred sales commissions 6,475 5,738 Other 19,173 10,150 Other current assets $ 173,823 $ 137,508 |
Schedule of other noncurrent assets | Other long-term assets consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Contract assets, net (1) $ 122,160 $ 91,681 Customer acquisition costs 109,392 104,369 Deferred income taxes 24,784 31,549 Investment in long-term product supply arrangements 13,348 12,065 Deferred sales commissions 13,019 11,719 Taxes receivable 1,806 6,329 Other 45,891 31,883 Other long-term assets $ 330,400 $ 289,595 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2021, 2020, and 2019, were as follows: (in thousands) CAG Water LPD Other Consolidated Total Balance as of December 31, 2018 $ 182,386 $ 11,221 $ 14,351 $ 6,531 $ 214,489 Business combinations 24,826 — — — 24,826 Impact of changes in foreign currency exchange rates 138 390 (119) — 409 Balance as of December 31, 2019 $ 207,350 $ 11,611 $ 14,232 $ 6,531 $ 239,724 Business combinations 220 — — — 220 Acquisition adjustment (1,900) — — — (1,900) Impact of changes in foreign currency exchange rates 4,724 412 167 — 5,303 Balance as of December 31, 2020 $ 210,394 $ 12,023 $ 14,399 $ 6,531 $ 243,347 Business combinations 120,346 — — — 120,346 Impact of changes in foreign currency exchange rates (3,569) (84) (695) — (4,348) Balance as of December 31, 2021 $ 327,171 $ 11,939 $ 13,704 $ 6,531 $ 359,345 |
Schedule of estimated useful lives for intangible assets | We provide for amortization primarily using the straight-line method by charges to income in amounts that allocate the intangible assets over their estimated useful lives as follows: Asset Classification Estimated Useful Life Customer-related intangible assets (1) 3 to 17 years Product rights (2) 5 to 15 years Noncompete agreements 3 to 5 years |
Schedule of intangible assets other than goodwill | Intangible assets other than goodwill consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Customer-related intangible assets (1) $ 121,936 $ 38,349 $ 83,587 $ 80,810 $ 32,838 $ 47,972 Product rights (2) 17,350 5,332 12,018 15,150 11,609 3,541 Noncompete agreements 4,257 827 3,430 1,250 220 1,030 $ 143,543 $ 44,508 $ 99,035 $ 97,210 $ 44,667 $ 52,543 The above table excludes fully amortized intangible assets for the periods presented. (1) Customer-related intangible assets are comprised of customer lists and customer relationships acquired from third parties. (2) Product rights comprise certain technologies, intellectual property, licenses, and trade names acquired from third parties. |
Schedule of expected amortization expense | At December 31, 2021, the aggregate amortization expense associated with intangible assets is estimated to be as follows for each of the next five years and thereafter: (in thousands) Amortization Expense 2022 $ 14,188 2023 12,430 2024 11,381 2025 10,633 2026 10,370 Thereafter 40,033 $ 99,035 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Long Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Accrued employee compensation and related expenses $ 182,926 $ 167,649 Accrued expenses 133,978 112,526 Accrued customer incentives and refund obligations 79,469 75,064 Accrued taxes 42,605 42,676 Current lease liabilities 19,931 17,733 Accrued liabilities $ 458,909 $ 415,648 |
Schedule of other long-term liabilities | Other long-term liabilities consisted of the following: (in thousands) December 31, 2021 December 31, 2020 Accrued taxes $ 56,466 $ 60,313 Other accrued long-term expenses 14,475 25,291 Other long-term liabilities $ 70,941 $ 85,604 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instruments [Abstract] | |
Schedule of long-term debt instruments | The following describes all of our currently outstanding unsecured senior notes issued and sold in private placements (collectively, the "Senior Notes") as of December 31, 2021: (Principal Amount in thousands) Issue Date Due Date Series Principal Amount Coupon Rate Senior Note Agreement 12/11/2013 12/11/2023 2023 Series A Notes $ 75,000 3.94 % NY Life 2013 Note Agreement 12/11/2013 12/11/2025 2025 Series B Notes $ 75,000 4.04 % NY Life 2013 Note Agreement 9/4/2014 9/4/2026 2026 Senior Notes $ 75,000 3.72 % NY Life 2014 Note Agreement 7/21/2014 7/21/2024 2024 Series B Notes $ 75,000 3.76 % Prudential 2015 Amended Agreement 6/18/2015 6/18/2025 2025 Series C Notes € 88,857 1.785 % Prudential 2015 Amended Agreement 2/12/2015 2/12/2022 2022 Series A Notes $ 75,000 3.25 % MetLife 2014 Note Agreement 2/12/2015 2/12/2027 2027 Series B Notes $ 75,000 3.72 % MetLife 2014 Note Agreement 3/14/2019 3/14/2029 2029 Series C Notes $ 100,000 4.19 % MetLife 2014 Note Agreement 4/2/2020 4/2/2030 MetLife 2030 Series D Notes $ 125,000 2.50 % MetLife 2014 Note Agreement 4/14/2020 4/14/2030 Prudential 2030 Series D Notes $ 75,000 2.50 % Prudential 2015 Amended Agreement |
Schedule of annual principal payments on long-term debt | Annual principal payments on long-term debt at December 31, 2021, are as follows: (in thousands) Years Ending December 31, Amount 2022 $ 75,000 2023 75,000 2024 75,000 2025 175,711 2026 75,000 Thereafter 375,000 $ 850,711 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of earnings before income taxes | Earnings before income taxes were as follows: (in thousands) For the Years Ended December 31, 2021 2020 2019 Domestic $ 689,994 $ 483,694 $ 377,964 International 212,660 178,291 144,254 $ 902,654 $ 661,985 $ 522,218 |
Schedule of components of provision (benefit) for income taxes | The provision (benefit) for income taxes comprised the following: (in thousands) For the Years Ended December 31, 2021 2020 2019 Current Federal $ 112,811 $ 72,921 $ 52,194 State 19,147 17,346 11,967 International 29,288 26,301 24,239 161,246 116,568 88,400 Deferred Federal (7,019) (14,126) 4,826 State (503) (2,863) 269 International 4,086 (19,725) 931 (3,436) (36,714) 6,026 $ 157,810 $ 79,854 $ 94,426 |
Schedule of effective income tax rate reconciliation | The provision for income taxes differs from the amounts computed by applying the statutory federal income tax rate as follows: For the Years Ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 2.1 2.4 2.3 Taxation on international earnings (0.8) (1.0) (1.1) Foreign derived intangible income (1.2) (1.1) (1.1) Share-based compensation from settlements (3.6) (5.9) (3.6) Research and development credit (0.7) (0.8) (0.8) Impact of Switzerland tax reform — (3.3) — Other, net 0.7 0.8 1.4 Effective tax rate 17.5 % 12.1 % 18.1 % |
Schedule of components of net deferred tax assets and liabilities | The components of the net deferred tax assets (liabilities) included in the accompanying consolidated balance sheets are as follows: (in thousands) December 31, 2021 December 31, 2020 Assets Accrued expenses $ 48,433 $ 46,830 Accounts receivable reserves 2,131 2,505 Deferred revenue 6,269 7,629 Inventory basis differences 6,553 4,272 Property-based differences 16,132 14,865 Intangible asset basis differences 46,606 51,319 Share-based compensation 10,740 10,011 Other 1,163 1,484 Net operating loss carryforwards 8,570 5,427 Tax credit carryforwards 13,483 13,385 Unrealized losses on foreign currency exchange contracts and investments 1,755 5,060 Total assets 161,835 162,787 Valuation allowance (39,280) (40,262) Total assets, net of valuation allowance 122,555 122,525 Liabilities Customer acquisition costs (37,265) (34,449) Property-based differences (42,363) (49,547) Intangible asset basis differences (17,345) (16,134) Other (5,662) (2,241) Unrealized gains on foreign currency exchange contracts and investments (4,071) (312) Total liabilities (106,706) (102,683) Net deferred tax assets $ 15,849 $ 19,842 |
Summary of valuation allowance | The following table summarizes the changes in valuation allowance for deferred tax assets: (in thousands) For the Years Ended December 31, 2021 2020 2019 Balance at beginning of year $ 40,262 $ 9,454 $ 6,212 Charges to costs and expense 1,464 31,076 3,489 Write-off/cash payments (1,182) (34) (226) Foreign currency translation (1,264) (234) (21) Balance at the end of the year $ 39,280 $ 40,262 $ 9,454 |
Schedule of changes in unrecognized tax benefits | The following table summarizes the changes in unrecognized tax positions: (in thousands) For the Years Ended December 31, 2021 2020 2019 Total amounts of unrecognized tax benefits, beginning of period $ 22,484 $ 26,841 $ 24,247 Gross increases (decreases) in unrecognized tax positions as a result of tax positions taken during a prior period 443 (1,755) (276) Gross increases in unrecognized tax positions as a result of tax positions taken in the current period 2,414 4,199 4,083 Decreases in unrecognized tax positions related to settlements with taxing authorities (537) (6,446) — Decreases in unrecognized tax positions as a result of a lapse of the applicable statutes of limitations (3,015) (355) (1,213) Total amounts of unrecognized tax benefits, end of period $ 21,789 $ 22,484 $ 26,841 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: (in thousands) For the Years Ended December 31, 2021 2020 2019 Shares outstanding for basic earnings per share: 85,200 85,342 86,115 Shares outstanding for diluted earnings per share: Shares outstanding for basic earnings per share 85,200 85,342 86,115 Dilutive effect of share-based payment awards 1,372 1,380 1,427 86,572 86,722 87,542 |
Schedule of number of anti-dilutive stock options | The following table presents information concerning those anti-dilutive options: (in thousands) For the Years Ended December 31, 2021 2020 2019 Weighted average number of shares underlying anti-dilutive options 121 206 200 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of segment performance | The following is a summary of segment performance: (in thousands) For the Years Ended December 31, CAG Water LPD Other Consolidated Total 2021 Revenue $ 2,889,960 $ 146,505 $ 135,887 $ 43,008 $ 3,215,360 Income from operations $ 824,022 $ 65,444 $ 28,636 $ 13,926 $ 932,028 Interest expense, net (29,374) Income before provision for income taxes 902,654 Provision for income taxes 157,810 Net income 744,844 Less: Net income attributable to noncontrolling interest (1) Net income attributable to IDEXX Laboratories, Inc. stockholders $ 744,845 Depreciation and amortization $ 94,202 $ 2,709 $ 3,908 $ 3,777 $ 104,596 2020 Revenue $ 2,385,765 $ 128,625 $ 145,845 $ 46,420 $ 2,706,655 Income from operations $ 574,887 $ 58,867 $ 40,008 $ 20,762 $ 694,524 Interest expense, net (32,539) Income before provision for income taxes 661,985 Provision for income taxes 79,854 Net income 582,131 Less: Net income attributable to noncontrolling interest 355 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 581,776 Depreciation and amortization $ 84,697 $ 2,630 $ 4,070 $ 4,601 $ 95,998 2019 Revenue $ 2,119,183 $ 132,850 $ 132,635 $ 22,240 $ 2,406,908 Income from operations $ 462,605 $ 61,923 $ 24,735 $ 3,583 $ 552,846 Interest expense, net (30,628) Income before provision for income taxes 522,218 Provision for income taxes 94,426 Net income 427,792 Less: Net income attributable to noncontrolling interest 72 Net income attributable to IDEXX Laboratories, Inc. stockholders $ 427,720 Depreciation and amortization $ 77,620 $ 2,794 $ 4,007 $ 3,590 $ 88,011 |
Schedule of net long-lived assets by principal geographic areas | Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net long-lived assets by principal geographic areas were as follows: (in thousands) December 31, 2021 December 31, 2020 Americas United States $ 436,003 $ 412,700 Brazil 17,043 20,797 Canada 7,003 4,993 460,049 438,490 Europe, the Middle East and Africa Germany 60,451 67,354 United Kingdom 9,828 10,191 Netherlands 19,405 15,267 France 1,884 2,062 Switzerland 3,545 3,743 Other 3,821 3,668 98,934 102,285 Asia Pacific Region Japan 5,845 4,503 Australia 14,584 3,304 Other 8,255 6,585 28,684 14,392 Total $ 587,667 $ 555,167 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 by level within the fair value hierarchy: (in thousands) As of December 31, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at December 31, 2021 Assets Money market funds (1) $ 76 $ — $ — $ 76 Equity mutual funds (2) $ 826 $ — $ — $ 826 Cross currency swaps (3) $ — $ 4,256 $ — $ 4,256 Foreign currency exchange contracts (3) $ — $ 6,512 $ — $ 6,512 Liabilities Foreign currency exchange contracts (3) $ — $ 601 $ — $ 601 Deferred compensation (4) $ 826 $ — $ — $ 826 Contingent payments - acquisitions $ — $ — $ 7,230 $ 7,230 (in thousands) As of December 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance at December 31, 2020 Assets Money market funds (1) $ 76 $ — $ — $ 76 Equity mutual funds (2) $ 1,145 $ — $ — $ 1,145 Foreign currency exchange contracts (3) $ — $ 125 $ — $ 125 Liabilities Cross currency swaps (3) $ — $ 2,841 $ — $ 2,841 Foreign currency exchange contracts (3) $ — $ 12,373 $ — $ 12,373 Deferred compensation (4) $ 1,145 $ — $ — $ 1,145 (1) Money market funds 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 December 31, 2021, and December 31, 2020, consisted of demand deposits. (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. Refer to 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. |
Schedule of contingent consideration liability | We record changes in the estimated fair value of contingent consideration in the consolidated statements of income. Changes in contingent consideration liabilities are measured at fair value on a recurring basis using unobservable inputs (Level 3) and during the year ended December 31, 2021, are as follows: (in thousands) Fair Value Contingent consideration as of December 31, 2020 $ — Contingent consideration recorded from acquisitions (Note 4) 5,230 Change in estimated fair value 2,000 Contingent consideration as of December 31, 2021 $ 7,230 |
Hedging Instruments (Tables)
Hedging Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Details of net investment hedges and Income Statement impact of hedging instruments | The following table presents the effect of cash flow hedge accounting on our consolidated statements of income and comprehensive income, and provides information regarding the location and amounts of pretax gains or losses of derivatives: (in thousands) Years Ended December 31, 2021 2020 2019 Financial statement line items in which effects of cash flow hedges are recorded Cost of revenue $ 1,325,928 $ 1,135,615 $ 1,041,359 Foreign exchange contracts Amount of (loss) gain reclassified from accumulated other comprehensive income into income $ (7,121) $ 829 $ 10,628 |
Schedule of hedging instruments | The fair values of hedging instruments, their respective classification on the 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 December 31, 2021 December 31, 2020 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Other current assets $ 6,512 $ 125 Cross currency swaps Other long-term assets 4,256 — Total derivative instruments presented as hedge instruments on the balance sheet 10,768 125 Gross amounts subject to master netting arrangements not offset on the balance sheet (601) (125) Net amount $ 10,167 $ — (in thousands) Hedging Liabilities December 31, 2021 December 31, 2020 Derivatives and non-derivatives designated as hedging instruments Balance Sheet Classification Foreign currency exchange contracts Accrued liabilities $ 601 $ 12,373 Cross currency swaps Other long-term liabilities — 2,841 Total derivative instruments presented as cash flow hedges on the balance sheet 601 15,214 Non-derivative foreign currency denominated debt designated as net investment hedge on the balance sheet (1) Long-term debt 100,711 109,125 Total hedging instruments presented on the balance sheet 101,312 124,339 Gross amounts subject to master netting arrangements not offset on the balance sheet (601) (125) Net amount $ 100,711 $ 124,214 (1) Amounts represent reported carrying amounts of our foreign currency denominated debt. Refer to "Note 18. Fair Value Measurements" for information regarding the fair value of our long-term debt. |
Repurchases of Common Stock (Ta
Repurchases of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 surrenders: (in thousands, except per share amounts) For the Years Ended December 31, 2021 2020 2019 Shares repurchased in the open market 1,283 721 1,215 Shares acquired through employee surrenders for statutory tax withholding 29 58 39 Total shares repurchased 1,312 779 1,254 Cost of shares repurchased in the open market $ 755,545 $ 179,623 $ 303,838 Cost of shares for employee surrenders 15,562 20,603 8,054 Total cost of shares $ 771,107 $ 200,226 $ 311,892 Average cost per share - open market repurchases $ 588.58 $ 249.20 $ 249.84 Average cost per share - employee surrenders $ 548.08 $ 354.98 $ 210.10 Average cost per share - total $ 587.70 $ 257.08 $ 248.62 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income | The changes in AOCI, net of tax, consisted of the following: For the Years Ended December 31, 2021 and 2020 Unrealized (Loss) Gain on Cash Flow Hedges, Net of Tax Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax (in thousands) Unrealized (Loss) Gain on Investments, Net of Tax Foreign Currency Exchange Contracts Euro-Denominated Notes Cross Currency Swaps Cumulative Translation Adjustment Total Balance as of December 31, 2019 $ 110 $ (736) $ 1,396 $ 3,467 $ (50,419) $ (46,182) Other comprehensive (loss) income before reclassifications (382) (8,527) (7,378) (5,626) 15,151 (6,762) Amounts reclassified from accumulated other comprehensive income — (671) — — — (671) Balance as of December 31, 2020 (272) (9,934) (5,982) (2,159) (35,268) (53,615) Other comprehensive income (loss) before reclassifications 146 9,139 6,404 5,399 (26,731) (5,643) Amounts reclassified from accumulated other comprehensive income — 5,774 — — — 5,774 Balance as of December 31, 2021 $ (126) $ 4,979 $ 422 $ 3,240 $ (61,999) $ (53,484) |
Summary of reclassifications out of accumulated other comprehensive income | The following table presents components and amounts reclassified out of AOCI to net income: (in thousands) Affected Line Item in the Statements of Income Amounts Reclassified from AOCI for the Years Ended December 31, 2021 2020 2019 Gains (losses) on derivative instruments included in net income: Foreign currency exchange contracts Cost of revenue $ (7,121) $ 829 $ 10,628 Tax (benefit) expense (1,347) 158 2,467 (Losses) gains, net of tax $ (5,774) $ 671 $ 8,161 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 0 | $ 0 | |||
Capitalized costs | 0 | 0 | $ 0 | ||
Advertising costs | 3,300,000 | 1,400,000 | 1,500,000 | ||
Foreign currency gains (losses) | (2,100,000) | 600,000 | (1,100,000) | ||
Non-cash cumulative effect adjustment to retained earnings, net of tax | 689,992,000 | 632,795,000 | 177,825,000 | $ (9,233,000) | |
Reserve for contract assets and sales-type leases | 4,400,000 | 3,700,000 | |||
Accounts receivable allowance for credit losses | 5,700,000 | 6,800,000 | |||
Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, net of tax | $ 2,920,440,000 | $ 2,175,595,000 | 1,595,648,000 | $ 1,167,928,000 | |
Accounting Standards Update 2016-13 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Reserve for contract assets and sales-type leases | $ 2,300,000 | ||||
Accounts receivable allowance for credit losses | 200,000 | ||||
Accounting Standards Update 2016-13 | Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, tax | $ 600,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, net of tax | (1,829,000) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, net of tax | (1,829,000) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Non-cash cumulative effect adjustment to retained earnings, net of tax | $ 1,800,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
General payment terms | 30 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
General payment terms | 60 days |
Revenue Recognition (Lease Reve
Revenue Recognition (Lease Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Lease revenue | $ 20.8 | $ 17.5 |
Revenue Recognition (Extended W
Revenue Recognition (Extended Warranties and Post-Contract Support) (Details) - Extended warranties and post contract support - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Post-contract support contract, term | 12 months | |
Deferred revenue | $ 30 | $ 35.1 |
Deferred revenue recognized | 23.1 | |
Estimation of future revenues | $ 16 | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Extended product warranty, term | 1 year | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Extended product warranty, term | 5 years |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligation) (Details) | Dec. 31, 2021 |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 49.00% |
Revenue recognition period (in years) | 1 year |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 29.00% |
Revenue recognition period (in years) | 1 year |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 14.00% |
Revenue recognition period (in years) | 1 year |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 5.00% |
Revenue recognition period (in years) | 1 year |
Extended warranties and post contract support | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 3.00% |
Revenue recognition period (in years) | |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 25.00% |
Revenue recognition period (in years) | 1 year |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 24.00% |
Revenue recognition period (in years) | 1 year |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 20.00% |
Revenue recognition period (in years) | 1 year |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 15.00% |
Revenue recognition period (in years) | 1 year |
Up front customer loyalty programs and volume commitment programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 16.00% |
Revenue recognition period (in years) | |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 36.00% |
Revenue recognition period (in years) | 1 year |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 26.00% |
Revenue recognition period (in years) | 1 year |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 17.00% |
Revenue recognition period (in years) | 1 year |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 11.00% |
Revenue recognition period (in years) | 1 year |
Instrument rebate programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 10.00% |
Revenue recognition period (in years) | |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 32.00% |
Revenue recognition period (in years) | 1 year |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 26.00% |
Revenue recognition period (in years) | 1 year |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 20.00% |
Revenue recognition period (in years) | 1 year |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 14.00% |
Revenue recognition period (in years) | 1 year |
Reagent rental programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue percentage expected to be recognized | 8.00% |
Revenue recognition period (in years) |
Revenue Recognition (SaaS Subsc
Revenue Recognition (SaaS Subscriptions) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
SaaS subscription, term | 2 years |
Revenue Recognition (Up-Front C
Revenue Recognition (Up-Front Customer Loyalty Programs) (Details) - Up front customer loyalty programs - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized customer acquisition costs | $ 158.3 | $ 148.1 |
Capitalized customer acquisition costs recognized as a reduction of revenue | $ 43.6 |
Revenue Recognition (Volume Com
Revenue Recognition (Volume Commitment Programs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Volume commitment programs | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Volume commitment contract assets | $ 159.9 | $ 115.5 |
Volume commitment contract assets reclassified to accounts receivable | 26.3 | |
Up front customer loyalty programs and volume commitment programs | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Estimation of future revenues | $ 2,900 |
Revenue Recognition (Instrument
Revenue Recognition (Instrument Rebate Programs) (Details) - Instrument rebate programs - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 33 | $ 39.3 |
Deferred revenue recognized | $ 14.3 |
Revenue Recognition (Reagent Re
Revenue Recognition (Reagent Rental Programs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Lease receivable asset | $ 15.3 | $ 11.1 |
Lease receivable, reclassified to receivable | 2.2 | |
Reagent rental programs | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Estimation of future revenues | $ 38.3 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Major Product and Service Categories) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 3,215,360 | $ 2,706,655 | $ 2,406,908 |
CAG segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,889,960 | 2,385,765 | 2,119,183 |
CAG segment revenue | CAG Diagnostics recurring revenue: | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,534,562 | 2,113,839 | 1,828,329 |
CAG segment revenue | IDEXX VetLab consumables | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,006,781 | 824,376 | 693,360 |
CAG segment revenue | Rapid assay products | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 296,852 | 253,018 | 232,149 |
CAG segment revenue | Reference laboratory diagnostic and consulting services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,123,656 | 946,268 | 822,497 |
CAG segment revenue | CAG Diagnostics services and accessories | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 107,273 | 90,177 | 80,323 |
CAG segment revenue | CAG Diagnostics capital - instruments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 149,140 | 108,950 | 132,685 |
CAG segment revenue | Veterinary software, services and diagnostic imaging systems | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 206,258 | 162,976 | 158,169 |
Water segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 146,505 | 128,625 | 132,850 |
LPD segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 135,887 | 145,845 | 132,635 |
Other segment revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 43,008 | $ 46,420 | $ 22,240 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation of Revenue by Principal Geographic Area, Based on Customers' Domiciles) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 3,215,360 | $ 2,706,655 | $ 2,406,908 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,202,033 | 1,850,485 | 1,651,581 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,995,683 | 1,691,224 | 1,495,516 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 139,727 | 107,398 | 99,550 |
Latin America & Caribbean | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 66,623 | 51,863 | 56,515 |
Europe, the Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 681,949 | 562,765 | 498,439 |
Germany | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 146,762 | 119,353 | 104,081 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 114,955 | 90,156 | 90,969 |
France | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 90,836 | 74,814 | 64,767 |
Italy | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 52,062 | 42,817 | 39,725 |
Spain | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 48,169 | 39,265 | 36,439 |
Switzerland | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 31,984 | 24,850 | 20,855 |
Netherlands | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 29,656 | 23,461 | 19,397 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 167,525 | 148,049 | 122,206 |
Asia Pacific Region | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 331,378 | 293,405 | 256,888 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 94,414 | 79,629 | 71,069 |
Japan | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 84,275 | 74,725 | 67,246 |
China | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 63,166 | 70,845 | 57,518 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 89,523 | $ 68,206 | $ 61,055 |
Revenue Recognition (Costs to O
Revenue Recognition (Costs to Obtain a Contract) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred commission costs | $ 19.5 | $ 17.5 |
Commissions expense recognized | $ 5.7 | |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized contract, amortization period | 3 years | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized contract, amortization period | 7 years |
Acquisitions and Investments (D
Acquisitions and Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 359,345 | $ 239,724 | $ 359,345 | $ 243,347 | $ 214,489 | ||||
Noncontrolling interest, remaining percentage purchased from noncontrolling owners | 5.00% | ||||||||
Noncontrolling interest, purchase of Interests | $ 1,000 | 990 | |||||||
Reference Laboratory | Finland | |||||||||
Business Acquisition [Line Items] | |||||||||
Payments to acquire business | 13,400 | ||||||||
Holdback | 1,400 | 1,400 | |||||||
Goodwill | 5,300 | 5,300 | |||||||
Net tangible liabilities | 100 | 100 | |||||||
Reference Laboratory | Finland | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 7,400 | 7,400 | |||||||
Intangible assets useful life | 10 years | ||||||||
Reference Laboratory | Finland | Noncompete agreements | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 800 | 800 | |||||||
Intangible assets useful life | 3 years | ||||||||
Reference Laboratory | Switzerland | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 1,800 | ||||||||
Purchase price of acquired assets | 5,500 | ||||||||
Contingent payment and holdback | 1,100 | ||||||||
Liabilities | 600 | ||||||||
Reference Laboratory | Switzerland | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 4,300 | ||||||||
Intangible assets useful life | 9 years | ||||||||
Teleradiology Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 3,700 | ||||||||
Purchase price of acquired assets | 5,400 | ||||||||
Contingent payment | 300 | ||||||||
Teleradiology Business | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 1,700 | ||||||||
Intangible assets useful life | 10 years | ||||||||
ezyVet | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 3,200 | ||||||||
Goodwill | 109,400 | ||||||||
Purchase price of acquired assets | 157,200 | ||||||||
Contingent payment | $ 7,000 | 5,000 | $ 7,000 | ||||||
Change in amount of contingent payable | 2,000 | ||||||||
Acquisition expenses | $ 2,200 | ||||||||
ezyVet | IDEXX VetLab consumables | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 23,400 | ||||||||
ezyVet | Reference laboratory diagnostic and consulting services | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 27,000 | ||||||||
ezyVet | Rapid assay products | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 11,100 | ||||||||
ezyVet | Veterinary software, services and diagnostic imaging systems | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 47,900 | ||||||||
ezyVet | Noncompete agreements | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 1,800 | ||||||||
Intangible assets useful life | 5 years | ||||||||
ezyVet | Customer-related intangible assets | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 32,000 | ||||||||
Intangible assets useful life | 10 years | ||||||||
ezyVet | Technology-based intangible assets | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 8,400 | ||||||||
Intangible assets useful life | 6 years | ||||||||
ezyVet | Trademarks | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 2,400 | ||||||||
Intangible assets useful life | 14 years | ||||||||
Reference laboratory in Mid-West, U.S. | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 200 | ||||||||
Goodwill | 22,900 | ||||||||
Purchase price of acquired assets | $ 50,000 | ||||||||
Reference laboratory in Mid-West, U.S. | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 26,900 | ||||||||
Intangible assets useful life | 13 years 9 months 18 days |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ 37,755 | $ 30,951 | $ 39,278 | ||
Income tax benefit resulting from share-based compensation expense | $ | 4,734 | 3,965 | 4,861 | ||
Unrecognized compensation expense, net of estimated forfeitures, for unvested share-based compensation awards outstanding | $ | $ 64,100 | ||||
Weighted average recognition period for unrecognized compensation expense, in years | 1 year 3 months 18 days | ||||
Intrinsic value of stock options exercised | $ | $ 147,900 | $ 163,000 | $ 83,700 | ||
Nonvested, intrinsic value | $ | $ 108,800 | ||||
Number of unissued shares of common stock each DSU represents right to receive (in shares) | 1 | ||||
Deferred stock units, outstanding (in shares) | shares | 90,000 | 87,000 | |||
2018 Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for grant under share-based incentive plans (in shares) | shares | 7,500,000 | ||||
Shares available for grant under share-based incentive plans (in shares) | shares | 6,500,000 | ||||
Stock options and stock appreciation rights | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ratio of shares issued under share-based awards to shares authorized under stock plans | 1 | ||||
Awards other than stock options and stock appreciation rights | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ratio of shares issued under share-based awards to shares authorized under stock plans | 2.4 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ 10,900 | ||||
Income tax benefit resulting from share-based compensation expense | $ | $ (800) | ||||
Award vesting rights, percentage | 25.00% | ||||
Fair value of options vested during period | $ | $ 17,300 | $ 14,600 | $ 12,200 | ||
Restricted stock units (RSU's) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 25.00% | ||||
Fair value of awards vested during period | $ | $ 46,100 | $ 27,900 | $ 23,800 | ||
Vested (in shares) | shares | 85,000 | ||||
Deferred Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred stock units, outstanding (in shares) | shares | 90,000 | 87,000 | |||
Vested (in shares) | shares | 59,000 | ||||
1997 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for grant under share-based incentive plans (in shares) | shares | 4,700,000 | ||||
Shares available for grant under share-based incentive plans (in shares) | shares | 1,100,000 | ||||
Discount from market value for employee stock purchase rights | 15.00% | ||||
Common stock issued in connection with the Employee Stock Purchase Plan (in shares) | shares | 29,500 | 39,000 | 47,000 | ||
Share-based Compensation Award, Tranche One | Stock options granted to employees with ratable vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Share-based Compensation Award, Tranche One | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Contractual term | 7 years | ||||
Share-based Compensation Award, Tranche One | Restricted stock units granted to employees with ratable vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Share-based Compensation Award, Tranche Two | Stock options granted to employees with ratable vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Share-based Compensation Award, Tranche Two | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Contractual term | 10 years | ||||
Share-based Compensation Award, Tranche Two | Restricted stock units granted to employees with ratable vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Selected Financial Impact of Share-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 37,755 | $ 30,951 | $ 39,278 |
Income tax benefit resulting from share-based compensation expense | (4,734) | (3,965) | (4,861) |
Net share-based compensation expense included in consolidated statements of income, excluding tax benefit from settlement of share-based awards | 33,021 | 26,986 | 34,417 |
Income tax benefit resulting from settlement of share-based awards | (32,474) | (38,981) | (19,140) |
Net expense (benefit) related to share-based compensation arrangements included in consolidated statements of income | 547 | (11,995) | 15,277 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4,044 | 3,415 | 2,681 |
Operating expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 33,711 | $ 27,536 | $ 36,597 |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of Weighted Averages of the Assumptions Used In Estimating the Fair Value of Stock Option Awards) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Share price at grant (in USD per share) | $ 546.36 | $ 291.14 | $ 218.66 |
Share exercise price (in USD per share) | $ 550.10 | $ 291.14 | $ 220.88 |
Expected stock price volatility | 30.00% | 27.00% | 26.00% |
Expected term, in years | 6 years 2 months 12 days | 6 years | 6 years |
Risk-free interest rate | 0.70% | 1.40% | 2.40% |
Weighted average fair value of options granted (in USD per shares) | $ 169.15 | $ 84.92 | $ 65.53 |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Number of Options | |
Outstanding, at beginning of year (in shares) | shares | 1,953 |
Granted (in shares) | shares | 144 |
Exercised (in shares) | shares | (310) |
Forfeited (in shares) | shares | (30) |
Outstanding, at end of year (in shares) | shares | 1,757 |
Fully vested, at end of year (in shares) | shares | 1,109 |
Fully vested and expected to vest, at end of year (in shares) | shares | 1,738 |
Weighted Average Exercise Price | |
Weighted average exercise price of beginning balance of options outstanding (in USD per share) | $ / shares | $ 149.32 |
Weighted average exercise price of options granted (in USD per share) | $ / shares | 550.10 |
Weighted average exercise price of options exercised (in USD per share) | $ / shares | 102.78 |
Weighted average exercise price of options forfeited (in USD per share) | $ / shares | 261.95 |
Weighted average exercise price of ending balance of options outstanding (in USD per share) | $ / shares | 188.47 |
Weighted average exercise price of options fully vested (in USD per share) | $ / shares | 127.30 |
Weighted average exercise price of options fully vested and expected to vest (in USD per share) | $ / shares | $ 186.72 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted average remaining contractual term of ending balance of options outstanding | 5 years 9 months 18 days |
Weighted average remaining contractual term of options fully vested | 4 years 9 months 18 days |
Weighted average remaining contractual term of options fully vested and expected to vest | 5 years 8 months 12 days |
Aggregate intrinsic value | $ | $ 825,745 |
Aggregate intrinsic value of options fully vested | $ | 588,831 |
Aggregate intrinsic value of options expected to vest | $ | $ 819,777 |
Share-Based Compensation (Sch_4
Share-Based Compensation (Schedule Of Restricted Stock Unit Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted stock units (RSU's) | |
Number of Units | |
Nonvested, at beginning of year (in shares) | shares | 218 |
Granted (in shares) | shares | 44 |
Vested (in shares) | shares | (85) |
Forfeited (in shares) | shares | (12) |
Nonvested, at end of year (in shares) | shares | 165 |
Weighted Average Grant-Date Fair Value | |
Weighted average grant date fair value, beginning of year (in USD per share) | $ / shares | $ 202.47 |
Weighted average grant date fair value, granted (in USD per share) | $ / shares | |
Weighted average grant date fair value, vested (in USD per share) | $ / shares | |
Weighted average grant date fair value, forfeited (in USD per share) | $ / shares | |
Weighted average grant date fair value, end of year (in USD per share) | $ / shares | $ 306.18 |
Restricted stock units expected to vest reduced for estimated forfeitures | |
Number of Units | |
Nonvested, at end of year (in shares) | shares | 156 |
Weighted Average Grant-Date Fair Value | |
Weighted average grant date fair value, end of year (in USD per share) | $ / shares | $ 303 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accounts receivable allowance for credit losses | $ 5.7 | $ 6.8 |
Percent of accounts receivable not past due | 90.00% | 88.00% |
Percent of accounts receivable past due | 10.00% | 12.00% |
Accounts receivable, noncurrent, threshold period past due | 60 days | 60 days |
Reserve for contract assets and sales-type leases | $ 4.4 | $ 3.7 |
Greater than 60 Days Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percent of accounts receivable past due | 1.80% | 1.50% |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory, Net [Abstract] | |||
Unpaid inventory | $ 64,400 | $ 45,600 | $ 39,500 |
Reagent rental programs | |||
Inventory [Line Items] | |||
Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment | $ 11,628 | $ 9,645 | $ 14,498 |
Inventories (Schedule of Compon
Inventories (Schedule of Components of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Raw materials | $ 60,427 | $ 45,986 |
Work-in-process | 26,397 | 20,374 |
Finished goods | 182,206 | 143,513 |
Inventories | $ 269,030 | $ 209,873 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Total minimum future lease payments, leases not yet commenced | $ 1.6 | |
Rent expense, excluding variable and short-term expenses | 23 | $ 21.7 |
Total rent expense including variable rent and short-term expenses | $ 25.5 | $ 24.5 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, not yet commenced, lease term | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, termination period | 1 year | |
Operating leases, not yet commenced, lease term | 5 years 3 months |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 22,402 | |
2023 | 21,122 | |
2024 | 16,523 | |
2025 | 12,675 | |
2026 | 10,437 | |
Thereafter | 39,047 | |
Total lease payments | 122,206 | |
Less imputed interest | (14,898) | |
Total lease liability (current and long-term) | $ 107,308 | |
Weighted average remaining lease term - operating leases | 9 years 4 months 24 days | 10 years 3 months 18 days |
Weighted average discount rate - operating leases | 2.50% | 2.90% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 24,214 | $ 19,619 |
Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations | $ 37,572 | $ 26,807 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Property and Equipment, Net (_2
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Gross amount | $ 1,236,058 | $ 1,142,081 |
Less accumulated depreciation and amortization | 648,391 | 586,914 |
Total property and equipment, net | 587,667 | 555,167 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 22,642 | 13,982 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 329,091 | 319,384 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 93,248 | 82,459 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 382,753 | 353,301 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 69,090 | 67,527 |
Computer hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | 276,895 | 265,664 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross amount | $ 62,339 | $ 39,764 |
Property and Equipment, Net (Su
Property and Equipment, Net (Summary Of Depreciation And Amortization, Capitalized Computer Software For Internal Use And Unpaid Property Equipment Reflected In Account Payable And Accrued Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 92,376 | $ 86,095 | $ 78,495 |
Unpaid property and equipment, reflected in accounts payable and accrued liabilities | 19,326 | 13,343 | 24,688 |
Reagent rental programs | |||
Property, Plant and Equipment [Line Items] | |||
Rental and operating-type reagent rental program instruments transferred from inventory to property and equipment | 11,628 | 9,645 | 14,498 |
Capitalized computer software developed for internal use | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized computer software developed for internal use | $ 14,753 | $ 18,472 | $ 20,130 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Property, Plant and Equipment [Abstract] | |
Write-down of rental assets | $ 5.1 |
Other Current and Long-Term A_3
Other Current and Long-Term Assets (Schedule of Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Assets, Noncurrent [Abstract] | ||
Customer acquisition costs | $ 48,942 | $ 43,751 |
Prepaid expenses | 41,997 | 34,556 |
Contract assets, net | 37,772 | 23,837 |
Taxes receivable | 19,464 | 19,476 |
Deferred sales commissions | 6,475 | 5,738 |
Other | 19,173 | 10,150 |
Other current assets | $ 173,823 | $ 137,508 |
Other Current and Long-Term A_4
Other Current and Long-Term Assets (Schedule of Other Noncurrent Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Assets, Noncurrent [Abstract] | ||
Contract assets, net | $ 122,160 | $ 104,369 |
Customer acquisition costs | 109,392 | 91,681 |
Deferred income taxes | 24,784 | 31,549 |
Investment in long-term product supply arrangements | 13,348 | 12,065 |
Deferred sales commissions | 13,019 | 11,719 |
Taxes receivable | 1,806 | 6,329 |
Other | 45,891 | 31,883 |
Other long-term assets | $ 330,400 | $ 289,595 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||
Goodwill impairments | $ 0 | $ 0 | $ 0 | |
Intangible assets impairments | 0 | 0 | ||
Aggregate amortization expense | $ 12,100,000 | $ 9,800,000 | $ 9,400,000 | |
ezyVet | ||||
Business Acquisition [Line Items] | ||||
Change in amount of contingent payable | $ 2,000,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 243,347 | $ 239,724 | $ 214,489 |
Business combinations | 120,346 | 220 | 24,826 |
Acquisition adjustment | (1,900) | ||
Impact of changes in foreign currency exchange rates | (4,348) | 5,303 | 409 |
Ending balance | 359,345 | 243,347 | 239,724 |
CAG | |||
Goodwill [Roll Forward] | |||
Beginning balance | 210,394 | 207,350 | 182,386 |
Business combinations | 120,346 | 220 | 24,826 |
Acquisition adjustment | (1,900) | ||
Impact of changes in foreign currency exchange rates | (3,569) | 4,724 | 138 |
Ending balance | 327,171 | 210,394 | 207,350 |
Water | |||
Goodwill [Roll Forward] | |||
Beginning balance | 12,023 | 11,611 | 11,221 |
Business combinations | 0 | 0 | 0 |
Acquisition adjustment | 0 | ||
Impact of changes in foreign currency exchange rates | (84) | 412 | 390 |
Ending balance | 11,939 | 12,023 | 11,611 |
LPD | |||
Goodwill [Roll Forward] | |||
Beginning balance | 14,399 | 14,232 | 14,351 |
Business combinations | 0 | 0 | 0 |
Acquisition adjustment | 0 | ||
Impact of changes in foreign currency exchange rates | (695) | 167 | (119) |
Ending balance | 13,704 | 14,399 | 14,232 |
Other | |||
Goodwill [Roll Forward] | |||
Beginning balance | 6,531 | 6,531 | 6,531 |
Business combinations | 0 | 0 | 0 |
Acquisition adjustment | 0 | ||
Impact of changes in foreign currency exchange rates | 0 | 0 | 0 |
Ending balance | $ 6,531 | $ 6,531 | $ 6,531 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Schedule of Estimated Useful Lives For Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Customer-related intangible assets | Minimum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 3 years |
Customer-related intangible assets | Maximum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 17 years |
Product rights | Minimum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 5 years |
Product rights | Maximum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 15 years |
Noncompete agreements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 3 years |
Noncompete agreements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, estimated useful life | 5 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net (Schedule of Intangible Assets Other Than Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 143,543 | $ 97,210 |
Accumulated Amortization | 44,508 | 44,667 |
Net | 99,035 | 52,543 |
Customer-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 121,936 | 80,810 |
Accumulated Amortization | 38,349 | 32,838 |
Net | 83,587 | 47,972 |
Product rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 17,350 | 15,150 |
Accumulated Amortization | 5,332 | 11,609 |
Net | 12,018 | 3,541 |
Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,257 | 1,250 |
Accumulated Amortization | 827 | 220 |
Net | $ 3,430 | $ 1,030 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net (Schedule of Expected Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 14,188 | |
2023 | 12,430 | |
2024 | 11,381 | |
2025 | 10,633 | |
2026 | 10,370 | |
Thereafter | 40,033 | |
Net | $ 99,035 | $ 52,543 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Long Term Liabilities (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Accrued employee compensation and related expenses | $ 182,926 | $ 167,649 |
Accrued expenses | 133,978 | 112,526 |
Accrued customer incentives and refund obligations | 79,469 | 75,064 |
Accrued taxes | 42,605 | 42,676 |
Current lease liabilities | $ 19,931 | $ 17,733 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Accrued liabilities | $ 458,909 | $ 415,648 |
Accrued Liabilities and Other_4
Accrued Liabilities and Other Long Term Liabilities (Schedule of Long Term Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Accrued taxes | $ 56,466 | $ 60,313 |
Other accrued long-term expenses | 14,475 | 25,291 |
Other long-term liabilities | $ 70,941 | $ 85,604 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Dec. 09, 2021USD ($) | Jul. 21, 2021USD ($) | Apr. 14, 2020USD ($) | Dec. 19, 2014USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021EUR (€) | Apr. 10, 2020USD ($) | Apr. 02, 2020USD ($) | Mar. 23, 2020USD ($) | Mar. 22, 2020USD ($) | Mar. 14, 2019USD ($) | Jun. 30, 2015EUR (€) | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Line of Credit Facility [Line Items] | |||||||||||||||||
Outstanding credit facility balance | $ 73,500,000 | $ 0 | |||||||||||||||
Repayments of senior debt | 50,000,000 | 0 | $ 0 | ||||||||||||||
Interest paid | $ 30,500,000 | 32,400,000 | $ 29,700,000 | ||||||||||||||
Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Consolidated leverage ratio under credit facility & note payable, maximum | 3.50% | ||||||||||||||||
2023 Series A Notes and 2025 Series B Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Principal Amount | $ 150,000,000 | ||||||||||||||||
2023 Series A Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 3.94% | 3.94% | 3.94% | ||||||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||||||||
2025 Series B Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 4.04% | 4.04% | 4.04% | ||||||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||||||||
2026 Senior Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 3.72% | 3.72% | 3.72% | ||||||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||||||||
2021 Series A Notes and 2024 Series B Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Principal Amount | $ 125,000,000 | ||||||||||||||||
2021 Series A Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 3.32% | ||||||||||||||||
Principal Amount | $ 50,000,000 | ||||||||||||||||
Repayments of senior debt | $ 50,000,000 | ||||||||||||||||
2024 Series B Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 3.76% | 3.76% | 3.76% | ||||||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||||||||
2025 Series C Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 1.785% | 1.785% | 1.785% | ||||||||||||||
Principal Amount | € | € 88,857,000 | € 88,900,000 | |||||||||||||||
Prudential 2030 Series D Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Borrowing capacity | $ 425,000,000 | ||||||||||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | ||||||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||||||||
2022 Series A Notes and 2027 Series B Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Principal Amount | $ 150,000,000 | ||||||||||||||||
2022 Series A Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Debt instrument, term | 7 years | ||||||||||||||||
Stated interest rate | 3.25% | 3.25% | 3.25% | ||||||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | ||||||||||||||
2027 Series B Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Debt instrument, term | 12 years | ||||||||||||||||
Stated interest rate | 3.72% | 3.72% | 3.72% | ||||||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||||||||
2029 Series C Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 4.19% | 4.19% | 4.19% | ||||||||||||||
Principal Amount | $ 100,000,000 | $ 100,000,000 | |||||||||||||||
MetLife 2030 Series D Notes | Senior Notes | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Borrowing capacity | $ 300,000,000 | $ 150,000,000 | |||||||||||||||
Stated interest rate | 2.50% | 2.50% | 2.50% | ||||||||||||||
Principal Amount | $ 125,000,000 | $ 125,000,000 | |||||||||||||||
Prime Rate | Minimum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Credit spread during period | 0.00% | 0.375% | |||||||||||||||
Revolving Credit Facility | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Debt instrument, term | 5 years | 3 years | |||||||||||||||
Borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||||||
Accordion feature, increase limit | 250,000,000 | ||||||||||||||||
Accordion feature, higher borrowing capacity option | $ 1,250,000,000 | ||||||||||||||||
Stated interest rate | 1.10% | 1.10% | |||||||||||||||
Outstanding credit facility balance | $ 73,500,000 | 0 | |||||||||||||||
Credit facility weighted average interest rates on outstanding balance | 2.70% | 2.70% | |||||||||||||||
Reduction of credit facility availability | $ 1,400,000 | $ 1,400,000 | |||||||||||||||
Consolidated leverage ratio under credit facility & note payable, maximum | 3.50% | ||||||||||||||||
Revolving Credit Facility | Minimum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Commitment fees | 0.075% | 0.20% | |||||||||||||||
Revolving Credit Facility | Maximum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Commitment fees | 0.25% | 0.375% | |||||||||||||||
Revolving Credit Facility | LIBOR | Minimum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 0.00% | 1.00% | |||||||||||||||
Credit spread during period | 0.875% | 1.375% | |||||||||||||||
Revolving Credit Facility | LIBOR | Maximum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Credit spread during period | 1.375% | 2.00% | |||||||||||||||
Revolving Credit Facility | Prime Rate | Minimum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Stated interest rate | 1.00% | 2.00% | |||||||||||||||
Revolving Credit Facility | Prime Rate | Maximum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Credit spread during period | 0.375% | 1.00% | |||||||||||||||
Revolving Credit Facility, Individual Borrowings | Minimum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Debt instrument, term | 1 day | ||||||||||||||||
Revolving Credit Facility, Individual Borrowings | Maximum | |||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||
Debt instrument, term | 180 days |
Debt (Schedule of Senior Note B
Debt (Schedule of Senior Note Borrowings) (Details) - Senior Notes | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 09, 2021USD ($) | Apr. 14, 2020USD ($) | Apr. 02, 2020USD ($) | Mar. 14, 2019USD ($) | Jun. 30, 2015EUR (€) | Dec. 19, 2014USD ($) | Sep. 30, 2014USD ($) | Jul. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
2023 Series A Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||
Coupon Rate | 3.94% | 3.94% | 3.94% | ||||||||
2025 Series B Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||
Coupon Rate | 4.04% | 4.04% | 4.04% | ||||||||
2026 Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||
Coupon Rate | 3.72% | 3.72% | 3.72% | ||||||||
2024 Series B Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||
Coupon Rate | 3.76% | 3.76% | 3.76% | ||||||||
2025 Series C Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | € | € 88,857,000 | € 88,900,000 | |||||||||
Coupon Rate | 1.785% | 1.785% | 1.785% | ||||||||
2022 Series A Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | ||||||||
Coupon Rate | 3.25% | 3.25% | 3.25% | ||||||||
2027 Series B Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||
Coupon Rate | 3.72% | 3.72% | 3.72% | ||||||||
2029 Series C Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 100,000,000 | $ 100,000,000 | |||||||||
Coupon Rate | 4.19% | 4.19% | 4.19% | ||||||||
MetLife 2030 Series D Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 125,000,000 | $ 125,000,000 | |||||||||
Coupon Rate | 2.50% | 2.50% | 2.50% | ||||||||
Prudential 2030 Series D Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal Amount | $ 75,000,000 | $ 75,000,000 | |||||||||
Coupon Rate | 2.50% | 2.50% | 2.50% |
Debt (Schedule of Annual Princi
Debt (Schedule of Annual Principal Payments on Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instruments [Abstract] | ||
2022 | $ 75,000 | |
2023 | 75,000 | |
2024 | 75,000 | |
2025 | 175,711 | |
2026 | 75,000 | |
Thereafter | 375,000 | |
Total | $ 850,711 | $ 909,100 |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 689,994 | $ 483,694 | $ 377,964 |
International | 212,660 | 178,291 | 144,254 |
Income before provision for income taxes | $ 902,654 | $ 661,985 | $ 522,218 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Federal | $ 112,811 | $ 72,921 | $ 52,194 |
State | 19,147 | 17,346 | 11,967 |
International | 29,288 | 26,301 | 24,239 |
Provision for current income taxes | 161,246 | 116,568 | 88,400 |
Deferred | |||
Federal | (7,019) | (14,126) | 4,826 |
State | (503) | (2,863) | 269 |
International | 4,086 | (19,725) | 931 |
Provision (benefit) for deferred income taxes | (3,436) | (36,714) | 6,026 |
Provision for income taxes | $ 157,810 | $ 79,854 | $ 94,426 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
State income tax, net of federal tax benefit | 2.10% | 2.40% | 2.30% |
Taxation on international earnings | (0.80%) | (1.00%) | (1.10%) |
Foreign derived intangible income | (1.20%) | (1.10%) | (1.10%) |
Share-based compensation from settlements | (3.60%) | (5.90%) | (3.60%) |
Research and development credit | (0.70%) | (0.80%) | (0.80%) |
Impact of Switzerland tax reform | 0.00% | (3.30%) | 0.00% |
Other, net | 0.70% | 0.80% | 1.40% |
Effective tax rate | 17.50% | 12.10% | 18.10% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 17.50% | 12.10% | 18.10% |
Income taxes paid | $ 161.7 | $ 110.7 | $ 88 |
Income tax ruling exemption | 21.4 | 14.2 | 13.7 |
Net operating loss carryforwards in certain state and international jurisdictions | 32.9 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | 22.2 | 21.8 | |
Interest expense and penalties related to unrecognized tax benefits | 1.1 | 1.3 | 1.8 |
Interest expense and penalties accrued | $ 3.8 | $ 3.6 | $ 3.6 |
Income Taxes (Schedule of Com_2
Income Taxes (Schedule of Components of Net Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Accrued expenses | $ 48,433 | $ 46,830 | ||
Accounts receivable reserves | 2,131 | 2,505 | ||
Deferred revenue | 6,269 | 7,629 | ||
Inventory basis differences | 6,553 | 4,272 | ||
Property-based differences | 16,132 | 14,865 | ||
Intangible asset basis differences | 46,606 | 51,319 | ||
Share-based compensation | 10,740 | 10,011 | ||
Other | 1,163 | 1,484 | ||
Net operating loss carryforwards | 8,570 | 5,427 | ||
Tax credit carryforwards | 13,483 | 13,385 | ||
Unrealized losses on foreign currency exchange contracts and investments | 1,755 | 5,060 | ||
Total assets | 161,835 | 162,787 | ||
Valuation allowance | (39,280) | (40,262) | $ (9,454) | $ (6,212) |
Total assets, net of valuation allowance | 122,555 | 122,525 | ||
Liabilities | ||||
Customer acquisition costs | (37,265) | (34,449) | ||
Property-based differences | (42,363) | (49,547) | ||
Intangible asset basis differences | (17,345) | (16,134) | ||
Other | (5,662) | (2,241) | ||
Unrealized gains on foreign currency exchange contracts and investments | (4,071) | (312) | ||
Total liabilities | (106,706) | (102,683) | ||
Net deferred tax assets | $ 15,849 | $ 19,842 |
Income Taxes (Schedule of Valua
Income Taxes (Schedule of Valuation Allowance For Deferred Tax Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | $ 40,262 | $ 9,454 | $ 6,212 |
Charges to costs and expense | 1,464 | 31,076 | 3,489 |
Write-off/cash payments | (1,182) | (34) | (226) |
Foreign currency translation | (1,264) | (234) | (21) |
Balance at the end of the year | $ 39,280 | $ 40,262 | $ 9,454 |
Income Taxes (Schedule of Chang
Income Taxes (Schedule of Changes in Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total amounts of unrecognized tax benefits, beginning of period | $ 22,484 | $ 26,841 | $ 24,247 |
Gross increases (decreases) in unrecognized tax positions as a result of tax positions taken during a prior period | 443 | ||
Gross increases (decreases) in unrecognized tax positions as a result of tax positions taken during a prior period | (1,755) | (276) | |
Gross increases in unrecognized tax positions as a result of tax positions taken in the current period | 2,414 | 4,199 | 4,083 |
Decreases in unrecognized tax positions related to settlements with taxing authorities | (537) | (6,446) | 0 |
Decreases in unrecognized tax positions as a result of a lapse of the applicable statutes of limitations | (3,015) | (355) | (1,213) |
Total amounts of unrecognized tax benefits, end of period | $ 21,789 | $ 22,484 | $ 26,841 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of Shares Outstanding) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Shares outstanding for basic earnings per share (in shares) | 85,200 | 85,342 | 86,115 |
Dilutive effect of share-based payment awards (in shares) | 1,372 | 1,380 | 1,427 |
Shares outstanding for diluted earnings per share (in shares) | 86,572 | 86,722 | 87,542 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Number of Anti-Dilutive Stock Options) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Weighted average number of shares underlying anti-dilutive options (in shares) | 121 | 206 | 200 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Payment Required Upon Termination Of Employment [Line Items] | ||||
Minimum purchase commitments | $ 2,900,000 | |||
Damages sought | 50,000,000 | |||
Loss contingency accrual | $ 27,500,000 | |||
Outstanding letters of credit to insurance company as security for workers' compensation claims | $ 1,400,000 | |||
Period for continued vesting of outstanding equity awards upon termination of CEO without cause other than following a change in control, years | two years | |||
Share-based compensation accelerated expense | $ 8,000,000 | |||
Liabilities for indemnification obligations | 0 | $ 0 | ||
Payment required to CEO upon termination of employment without cause other than following change in control | ||||
Payment Required Upon Termination Of Employment [Line Items] | ||||
Employee agreement contingencies | 2,000,000 | |||
Payment required to officers upon termination of employment following change of control | ||||
Payment Required Upon Termination Of Employment [Line Items] | ||||
Employee agreement contingencies | 42,200,000 | |||
Employee healthcare insurance policy | ||||
Payment Required Upon Termination Of Employment [Line Items] | ||||
General insurance expense | 78,500,000 | 59,500,000 | $ 59,300,000 | |
Estimated liability for healthcare claims | 7,800,000 | 5,500,000 | ||
Maximum | Employee healthcare insurance policy | ||||
Payment Required Upon Termination Of Employment [Line Items] | ||||
Retained claim liability per incident | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of business segments | 3 |
Segment Reporting (Summary of S
Segment Reporting (Summary of Segment Performance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 3,215,360 | $ 2,706,655 | $ 2,406,908 |
Income from operations | 932,028 | 694,524 | 552,846 |
Interest expense, net | (29,374) | (32,539) | (30,628) |
Income before provision for income taxes | 902,654 | 661,985 | 522,218 |
Provision for income taxes | 157,810 | 79,854 | 94,426 |
Net income | 744,844 | 582,131 | 427,792 |
Less: Net (loss) income attributable to noncontrolling interest | (1) | 355 | 72 |
Net income attributable to IDEXX Laboratories, Inc. stockholders | 744,845 | 581,776 | 427,720 |
Depreciation and amortization | 104,596 | 95,998 | 88,011 |
CAG | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,889,960 | 2,385,765 | 2,119,183 |
Income from operations | 824,022 | 574,887 | 462,605 |
Depreciation and amortization | 94,202 | 84,697 | 77,620 |
Water | |||
Segment Reporting Information [Line Items] | |||
Revenue | 146,505 | 128,625 | 132,850 |
Income from operations | 65,444 | 58,867 | 61,923 |
Depreciation and amortization | 2,709 | 2,630 | 2,794 |
LPD | |||
Segment Reporting Information [Line Items] | |||
Revenue | 135,887 | 145,845 | 132,635 |
Income from operations | 28,636 | 40,008 | 24,735 |
Depreciation and amortization | 3,908 | 4,070 | 4,007 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 43,008 | 46,420 | 22,240 |
Income from operations | 13,926 | 20,762 | 3,583 |
Depreciation and amortization | $ 3,777 | $ 4,601 | $ 3,590 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Net Long-Lived Assets by Principal Geographic Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 587,667 | $ 555,167 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 460,049 | 438,490 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 436,003 | 412,700 |
Brazil | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 17,043 | 20,797 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 7,003 | 4,993 |
Europe, the Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 98,934 | 102,285 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 60,451 | 67,354 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 9,828 | 10,191 |
Netherlands | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 19,405 | 15,267 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 1,884 | 2,062 |
Switzerland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 3,545 | 3,743 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 3,821 | 3,668 |
Asia Pacific Region | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 28,684 | 14,392 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 5,845 | 4,503 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 14,584 | 3,304 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 8,255 | $ 6,585 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||||
Estimated fair value of long-term debt | $ 916,300 | $ 916,300 | $ 1,000,000 | |
Estimated carrying value of long-term debt | 850,711 | 850,711 | $ 909,100 | |
Contingent consideration recorded from acquisitions | $ 5,000 | 5,230 | ||
Change in estimated fair value | $ 2,000 | $ 2,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 76 | $ 76 |
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 | 76 | 76 |
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 |
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 |
Equity mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | 826 | 1,145 |
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 | 826 | 1,145 |
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 |
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 |
Cross currency swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | 4,256 | |
Derivative liabilities | 2,841 | |
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] | ||
Other long-term assets | 0 | |
Derivative liabilities | 0 | |
Cross currency swaps | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | 4,256 | |
Derivative liabilities | 2,841 | |
Cross currency swaps | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long-term assets | 0 | |
Derivative liabilities | 0 | |
Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 6,512 | 125 |
Derivative liabilities | 601 | 12,373 |
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 asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign currency exchange contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 6,512 | 125 |
Derivative liabilities | 601 | 12,373 |
Foreign currency exchange contracts | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Deferred compensation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other liabilities | 826 | 1,145 |
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 | 826 | 1,145 |
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 |
Deferred compensation | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other liabilities | 0 | $ 0 |
Contingent payment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 7,230 | |
Contingent payment | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 0 | |
Contingent payment | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | 0 | |
Contingent payment | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments - acquisitions | $ 7,230 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Contingent Consideration Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 0 | ||
Contingent consideration recorded from acquisitions | $ 5,000 | 5,230 | |
Change in estimated fair value | $ 2,000 | 2,000 | |
Ending balance | $ 7,230 | $ 7,230 |
Hedging Instruments (Narrative)
Hedging Instruments (Narrative) (Details) $ in Thousands | Jun. 18, 2025USD ($) | Jun. 30, 2023USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021EUR (€) | Jun. 30, 2015EUR (€) |
Derivative [Line Items] | |||||||
Estimated net amount of gains expected to be reclassified out of accumulated other comprehensive income and into earnings within next 12 months | $ 5,000 | ||||||
General duration of foreign currency exchange contracts | 24 months | ||||||
Notional amount | $ 286,700 | $ 202,700 | |||||
Unrealized gain (loss) on Euro-denominated notes, net of tax | 6,404 | (7,378) | $ 1,790 | ||||
Unrealized gain (loss) on cross currency swaps, net of tax | $ 5,399 | (5,626) | 2,107 | ||||
Minimum | |||||||
Derivative [Line Items] | |||||||
Cash flow hedge, hedge percentage of estimated exposure from intercompany products purchases and sales | 75.00% | ||||||
Maximum | |||||||
Derivative [Line Items] | |||||||
Cash flow hedge, hedge percentage of estimated exposure from intercompany products purchases and sales | 85.00% | ||||||
Series C Senior Note | |||||||
Derivative [Line Items] | |||||||
Aggregate principal amount of net investment hedge | € | € 88,900,000 | ||||||
Stated interest rate | 1.785% | ||||||
Cross currency swaps | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Notional amount | € | € 90,000,000 | ||||||
Unrealized gain (loss) on cross currency swaps, net of tax | $ 5,400 | (5,600) | $ 2,100 | ||||
Gain (loss) on excluded component as a reduction of interest expense | $ 2,800 | $ 2,700 | |||||
Cross currency swaps | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Notional amount | € | € 15,000,000 | ||||||
Forecast | Cross currency swaps | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Proceeds from net investment hedge | $ 104,500 | ||||||
Forecast | Cross currency swaps | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Proceeds from net investment hedge | $ 17,500 |
Hedging Instruments (Derivative
Hedging Instruments (Derivatives Designated in Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Total cost of revenue | $ 1,325,928 | $ 1,135,615 | $ 1,041,359 |
Foreign currency exchange contracts | Cost of revenue | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | $ (7,121) | $ 829 | $ 10,628 |
Hedging Instruments (Schedule o
Hedging Instruments (Schedule of Fair Values and Balance Sheet Classifications of Derivatives and Non-derivatives Designated as Hedging Instruments) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Hedging assets, total derivative instruments presented as cash flow hedges on the balance sheet | $ 10,768 | $ 125 |
Hedging assets, gross amounts subject to master netting arrangements not offset on the balance sheet | (601) | (125) |
Hedging assets, net amount | 10,167 | 0 |
Hedging liabilities, total hedging instruments presented on the balance sheet | 101,312 | 124,339 |
Hedging liabilities, gross amounts subject to master netting arrangements not offset on the balance sheet | (601) | (125) |
Hedging liabilities, net amount | 100,711 | 124,214 |
Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Hedging liabilities, total hedging instruments presented on the balance sheet | 601 | 15,214 |
Foreign currency exchange contracts | Other current assets | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Hedging assets, total derivative instruments presented as cash flow hedges on the balance sheet | 6,512 | 125 |
Foreign currency exchange contracts | Accrued liabilities | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Hedging liabilities, total hedging instruments presented on the balance sheet | 601 | 12,373 |
Cross currency swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Hedging assets, total derivative instruments presented as cash flow hedges on the balance sheet | 4,256 | 0 |
Cross currency swaps | Other long-term liabilities | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Hedging liabilities, total hedging instruments presented on the balance sheet | 0 | 2,841 |
Foreign currency denominated debt | Long-term debt | ||
Derivatives, Fair Value [Line Items] | ||
Hedging liabilities, total hedging instruments presented on the balance sheet | $ 100,711 | $ 109,125 |
Repurchases of Common Stock (De
Repurchases of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Shares of common stock repurchases authorized (in shares) | 73,000,000 | ||
Remaining shares available for repurchase under authorization (in shares) | 5,000,000 | ||
Share repurchased during the period (in shares) | 1,283,000 | 721,000 | 1,215,000 |
Shares acquired through employee surrender for statutory tax withholding (in shares) | 29,000 | 58,000 | 39,000 |
Total shares repurchased (in shares) | 1,312,000 | 779,000 | 1,254,000 |
Cost of shares repurchased in the open market | $ 755,545 | $ 179,623 | $ 303,838 |
Cost of shares for employee surrenders | 15,562 | 20,603 | 8,054 |
Total cost of shares | $ 771,107 | $ 200,226 | $ 311,892 |
Average cost per share - open market repurchases (in USD per share) | $ 588.58 | $ 249.20 | $ 249.84 |
Average cost per share - employee surrenders (in USD per share) | 548.08 | 354.98 | 210.10 |
Average cost per share - total (in USD per share) | $ 587.70 | $ 257.08 | $ 248.62 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | $ 632,795 | $ 177,825 |
Other comprehensive income (loss) before reclassifications | (5,643) | (6,762) |
Amounts reclassified from accumulated other comprehensive income | 5,774 | (671) |
Balance end of period | 689,992 | 632,795 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (53,615) | (46,182) |
Balance end of period | (53,484) | (53,615) |
Unrealized (Loss) Gain on Investments, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (272) | 110 |
Other comprehensive income (loss) before reclassifications | 146 | (382) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | (126) | (272) |
Unrealized (Loss) Gain on Cash Flow Hedges, Net of Tax, Foreign Currency Exchange Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (9,934) | (736) |
Other comprehensive income (loss) before reclassifications | 9,139 | (8,527) |
Amounts reclassified from accumulated other comprehensive income | 5,774 | (671) |
Balance end of period | 4,979 | (9,934) |
Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax, Euro-Denominated Notes | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (5,982) | 1,396 |
Other comprehensive income (loss) before reclassifications | 6,404 | (7,378) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | 422 | (5,982) |
Unrealized (Loss) Gain on Net Investment Hedges, Net of Tax, Cross Currency Swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (2,159) | 3,467 |
Other comprehensive income (loss) before reclassifications | 5,399 | (5,626) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | 3,240 | (2,159) |
Cumulative Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning of period | (35,268) | (50,419) |
Other comprehensive income (loss) before reclassifications | (26,731) | 15,151 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Balance end of period | $ (61,999) | $ (35,268) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Schedule of Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of revenue | $ 1,325,928 | $ 1,135,615 | $ 1,041,359 |
Tax (benefit) expense | 157,810 | 79,854 | 94,426 |
(Losses) gains, net of tax | 744,844 | 582,131 | 427,792 |
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Exchange Contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of revenue | (7,121) | 829 | 10,628 |
Tax (benefit) expense | (1,347) | 158 | 2,467 |
(Losses) gains, net of tax | $ (5,774) | $ 671 | $ 8,161 |
Preferred Stock (Details)
Preferred Stock (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Shares of preferred stock authorized (in shares) | 500,000 | |
Par value per share (in USD per share) | $ 1 | |
Preferred Stock outstanding (in shares) | 0 | 0 |
IDEXX Retirement and Incentiv_2
IDEXX Retirement and Incentive Savings Plan (Details) - 401(k) Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement And Incentive Savings Plan [Line Items] | |||
Contribution match, maximum percent of participants' eligible compensation | 5.00% | 5.00% | 5.00% |
Employer contributions | $ 25,800,000 | $ 23,400,000 | $ 21,100,000 |
Discretionary contributions | $ 0 | $ 0 | $ 0 |